Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced second quarter 2018 financial results including the
following highlights compared to the same quarter of 2017:
- Diluted Net Earnings Attributable to Shareholders per share
(EPS1) increased 32% to $0.79
- Net Earnings Attributable to Shareholders increased 29% to $141
million
- Operating Income increased 9% to $184 million
- Revenues increased 17% to $2.0 billion
- Net Revenues2 increased 14% to $643 million
- Airfreight tonnage volume increased 4% and ocean container
volume increased 1%
“We continued to add profitable growth from new and existing
customers during the quarter, particularly in air and some of our
differentiated, best-in-class services, such as brokerage,
Transcon, and order management,” said Jeffrey S. Musser, President
and Chief Executive Officer. “Similar to the first quarter of this
year, we remained disciplined on pricing in this strong economy. We
experienced strong performance in our ocean forwarding and order
management businesses, but ocean freight net revenues were down 5%
on a 1% increase in volumes, as carriers took steps to mitigate the
impact of volatile pricing, excess capacity, and higher fuel
costs.
“We are continuing to invest in people and assets in the
development and support of profitable revenue growth, most notably
during Q2 in Europe and North America. While we have yet to see
changes to supply chains as a result of possible trade wars, we are
confident in the capabilities of our people throughout our global
network to help our customers navigate the potential impact of new
tariffs.”
Bradley S. Powell, Senior Vice President and Chief Financial
Officer, added that the Company’s effective tax rate for the
quarter was 25.8%, compared to 37.4% a year ago. The lower
effective tax rate in the most recent quarter was principally due
to the lower U.S. federal tax rate that resulted from the 2017 Tax
Act, coupled with significant share-based compensation deductions
from stock option exercises during the quarter. Mr. Powell
emphasized that the Company’s effective tax rate in future periods
will largely depend on the mix of pretax earnings that are
generated in its U.S. versus foreign operations, as well as further
interpretation of, and guidance to be issued on, the new tax
law.
Expeditors is a global logistics company headquartered in
Seattle, Washington. The Company employs trained professionals in
177 district offices and numerous branch locations located on six
continents linked into a seamless worldwide network through an
integrated information management system. Services include the
consolidation or forwarding of air and ocean freight, customs
brokerage, vendor consolidation, cargo insurance, time-definite
transportation, order management, warehousing and distribution and
customized logistics solutions.
_______________________1Diluted earnings attributable to
shareholders per share.2Non-GAAP measure calculated as revenues
less directly related operating expenses attributable to the
Company's principal services. See reconciliation on the last page
of this release.NOTE: See Disclaimer on Forward-Looking
Statements on the following page of this release.
Expeditors International of Washington,
Inc.Second Quarter 2018 Earnings Release,
August 7, 2018Financial Highlights for the
Six months ended June 30, 2018 and 2017
(Unaudited)(in 000's of US dollars except per share
data)
|
Three months ended June
30, |
|
Six months ended June
30, |
|
2018 |
|
2017 |
|
% Change |
|
2018 |
|
2017 |
|
% Change |
Revenues1 |
$ |
1,957,559 |
|
|
$ |
1,672,279 |
|
|
17 |
% |
|
$ |
3,811,821 |
|
|
$ |
3,217,411 |
|
|
18 |
% |
Net
revenues2 |
$ |
642,546 |
|
|
$ |
563,633 |
|
|
14 |
% |
|
$ |
1,278,384 |
|
|
$ |
1,091,238 |
|
|
17 |
% |
Operating
income3 |
$ |
183,584 |
|
|
$ |
168,240 |
|
|
9 |
% |
|
$ |
376,402 |
|
|
$ |
314,354 |
|
|
20 |
% |
Net earnings
attributable to shareholders |
$ |
140,605 |
|
|
$ |
108,851 |
|
|
29 |
% |
|
$ |
276,297 |
|
|
$ |
202,115 |
|
|
37 |
% |
Diluted
earnings attributable to shareholders per share |
$ |
0.79 |
|
|
$ |
0.60 |
|
|
32 |
% |
|
$ |
1.54 |
|
|
$ |
1.11 |
|
|
39 |
% |
Basic earnings
attributable to shareholders per share |
$ |
0.80 |
|
|
$ |
0.60 |
|
|
33 |
% |
|
$ |
1.58 |
|
|
$ |
1.12 |
|
|
41 |
% |
Diluted
weighted average shares outstanding |
178,603 |
|
|
182,033 |
|
|
|
|
179,120 |
|
|
182,091 |
|
|
|
Basic weighted
average shares outstanding |
174,754 |
|
|
180,012 |
|
|
|
|
175,324 |
|
|
180,037 |
|
|
|
_______________________1Effective January 1, 2018, the Company
adopted required new revenue recognition guidance, resulting in a
$22 million net reduction to the opening balance of retained
earnings. In addition, in conjunction with the adoption of new
revenue recognition guidance, the Company also changed the
presentation of certain warehouse and distribution revenues from a
net to a gross basis, which increased both revenues and operating
expenses in customs brokerage and other services by
approximately $50 million in both the first and second quarters of
2018. Comparative prior year revenues (and the related volume
information in the table below) has not been adjusted and continue
to be reported under the Company's historical policies. 2018
reported revenues (and the related volume information) are reported
under the Company's new revenue recognition accounting
policies.
2Non-GAAP measure calculated as revenues less directly related
operating expenses attributable to the Company's principal
services. See reconciliation on the last page of this release.
3The quarter and year-to-date periods ended June 30, 2017
include the recovery of certain legal and related fees totaling $8
million and the favorable resolution of an indirect tax contingency
of $6 million.
During the three and six-month periods ended June 30, 2018,
we repurchased 3.1 million and 5.8 million shares of common stock
at an average price of $76.22 and $70.92 per share, respectively.
During the three and six-month periods ended June 30, 2017, we
repurchased 1.5 million and 2.5 million shares of common stock at
an average price of $55.02 and $55.58 per share, respectively.
|
Employee Full-time Equivalents as of June
30, |
|
2018 |
|
2017 |
North
America |
6,414 |
|
|
6,009 |
|
Europe |
3,205 |
|
|
2,847 |
|
North
Asia |
2,616 |
|
|
2,698 |
|
South
Asia |
1,604 |
|
|
1,602 |
|
Middle East,
Africa and India |
1,466 |
|
|
1,531 |
|
Latin
America |
801 |
|
|
791 |
|
Information
Systems |
892 |
|
|
881 |
|
Corporate |
351 |
|
|
390 |
|
Total |
17,349 |
|
|
16,749 |
|
|
|
Second quarter year-over-year percentage
increase (decrease) in: |
|
|
Airfreight kilos |
|
Ocean freight FEU |
2018 |
|
|
|
|
April |
|
1% |
|
(2)% |
May |
|
6% |
|
5% |
June |
|
6% |
|
—% |
Quarter |
|
4% |
|
1% |
_______________________Investors may submit written questions
via e-mail to: investor@expeditors.com. Questions received by the
end of business on August 10, 2018 will be considered in
management's 8-K “Responses to Selected Questions” expected to be
filed on or about August 24, 2018.
Disclaimer on Forward-Looking
Statements:Certain portions of this release
contain forward-looking statements, which are based on certain
assumptions and expectations of future events that are subject to
risks and uncertainties, including comments on our ability to
generate profitable market growth; our ability to help our
customers navigate the potential impact of new tariffs; the impact
of the 2017 Tax Act on our effective tax rate; energy and fuel
prices; political changes; changes and uncertainties in
governmental policies and inter-governmental disputes; foreign
exchange rates; regulatory actions or changes; and risk factors and
uncertainties detailed in our Annual Report as updated by our
reports on Form 10-Q, filed with the Securities and Exchange
Commission.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets(In
thousands, except per share data)(Unaudited)
|
June 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
Current
Assets: |
|
|
|
Cash and
cash equivalents |
$ |
1,020,854 |
|
|
$ |
1,051,099 |
|
Accounts
receivable, net |
1,337,716 |
|
|
1,414,741 |
|
Deferred
contract costs |
136,133 |
|
|
— |
|
Other
current assets |
69,438 |
|
|
75,612 |
|
Total
current assets |
2,564,141 |
|
|
2,541,452 |
|
Property and equipment,
net |
515,547 |
|
|
525,203 |
|
Goodwill |
7,927 |
|
|
7,927 |
|
Deferred Federal and
state income taxes, net |
16,779 |
|
|
13,207 |
|
Other assets, net |
28,438 |
|
|
29,219 |
|
|
$ |
3,132,832 |
|
|
$ |
3,117,008 |
|
Liabilities and Equity |
|
|
|
Current
Liabilities: |
|
|
|
Accounts
payable |
$ |
832,011 |
|
|
$ |
866,305 |
|
Accrued
expenses, primarily salaries and related costs |
227,148 |
|
|
206,320 |
|
Contract
liabilities |
161,870 |
|
|
— |
|
Federal,
state and foreign income taxes |
19,244 |
|
|
20,494 |
|
Total
current liabilities |
1,240,273 |
|
|
1,093,119 |
|
Noncurrent Federal
income taxes payable |
— |
|
|
29,516 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders’
Equity: |
|
|
|
Preferred
stock; none issued |
— |
|
|
— |
|
Common
stock, par value $0.01 per share. Issued and outstanding 173,577
shares at June 30, 2018 and 176,374 shares at December 31,
2017 |
1,736 |
|
|
1,764 |
|
Additional paid-in capital |
1,607 |
|
|
546 |
|
Retained
earnings |
1,977,121 |
|
|
2,063,512 |
|
Accumulated other comprehensive loss |
(90,712 |
) |
|
(73,964 |
) |
Total
shareholders’ equity |
1,889,752 |
|
|
1,991,858 |
|
Noncontrolling interest |
2,807 |
|
|
2,515 |
|
Total
equity |
1,892,559 |
|
|
1,994,373 |
|
|
$ |
3,132,832 |
|
|
$ |
3,117,008 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIES
Condensed Consolidated Statements of Earnings(In
thousands, except per share data)(Unaudited)
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues: |
|
|
|
|
|
|
|
Airfreight
services |
$ |
801,761 |
|
|
$ |
671,868 |
|
|
$ |
1,532,988 |
|
|
$ |
1,287,413 |
|
Ocean freight and ocean
services |
530,008 |
|
|
528,585 |
|
|
1,050,891 |
|
|
1,022,344 |
|
Customs brokerage and
other services |
625,790 |
|
|
471,826 |
|
|
1,227,942 |
|
|
907,654 |
|
Total
revenues |
1,957,559 |
|
|
1,672,279 |
|
|
3,811,821 |
|
|
3,217,411 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
593,325 |
|
|
499,418 |
|
|
1,106,829 |
|
|
942,822 |
|
Ocean freight and ocean
services |
385,156 |
|
|
385,927 |
|
|
764,574 |
|
|
751,990 |
|
Customs brokerage and
other services |
336,532 |
|
|
223,301 |
|
|
662,034 |
|
|
431,361 |
|
Salaries and related
costs |
350,948 |
|
|
318,529 |
|
|
690,843 |
|
|
611,109 |
|
Rent and occupancy
costs |
38,071 |
|
|
29,163 |
|
|
74,984 |
|
|
57,293 |
|
Depreciation and
amortization |
13,576 |
|
|
12,042 |
|
|
27,498 |
|
|
23,969 |
|
Selling and
promotion |
10,788 |
|
|
10,953 |
|
|
21,753 |
|
|
21,868 |
|
Other |
45,579 |
|
|
24,706 |
|
|
86,904 |
|
|
62,645 |
|
Total
operating expenses |
1,773,975 |
|
|
1,504,039 |
|
|
3,435,419 |
|
|
2,903,057 |
|
Operating
income |
183,584 |
|
|
168,240 |
|
|
376,402 |
|
|
314,354 |
|
Other Income
(Expense): |
|
|
|
|
|
|
|
Interest income |
5,153 |
|
|
3,380 |
|
|
9,467 |
|
|
6,121 |
|
Other, net |
1,167 |
|
|
2,190 |
|
|
1,791 |
|
|
2,488 |
|
Other
income (expense), net |
6,320 |
|
|
5,570 |
|
|
11,258 |
|
|
8,609 |
|
Earnings before income
taxes |
189,904 |
|
|
173,810 |
|
|
387,660 |
|
|
322,963 |
|
Income tax expense |
48,958 |
|
|
65,055 |
|
|
110,514 |
|
|
120,641 |
|
Net
earnings |
140,946 |
|
|
108,755 |
|
|
277,146 |
|
|
202,322 |
|
Less net earnings
(loss) attributable to the noncontrolling interest |
341 |
|
|
(96 |
) |
|
849 |
|
|
207 |
|
Net
earnings attributable to shareholders |
$ |
140,605 |
|
|
$ |
108,851 |
|
|
$ |
276,297 |
|
|
$ |
202,115 |
|
Diluted earnings
attributable to shareholders per share |
$ |
0.79 |
|
|
$ |
0.60 |
|
|
$ |
1.54 |
|
|
$ |
1.11 |
|
Basic earnings
attributable to shareholders per share |
$ |
0.80 |
|
|
$ |
0.60 |
|
|
$ |
1.58 |
|
|
$ |
1.12 |
|
Dividends declared and
paid per common share |
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
0.45 |
|
|
$ |
0.42 |
|
Weighted average
diluted shares outstanding |
178,603 |
|
|
182,033 |
|
|
179,120 |
|
|
182,091 |
|
Weighted average basic
shares outstanding |
174,754 |
|
|
180,012 |
|
|
175,324 |
|
|
180,037 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash
Flows(In thousands)(Unaudited)
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Operating
Activities: |
|
|
|
|
|
|
|
Net earnings |
$ |
140,946 |
|
|
$ |
108,755 |
|
|
$ |
277,146 |
|
|
$ |
202,322 |
|
Adjustments to
reconcile net earnings to net cash from operating activities: |
|
|
|
|
|
|
|
Provision
for losses on accounts receivable |
528 |
|
|
515 |
|
|
263 |
|
|
1,446 |
|
Deferred
income tax expense |
3,235 |
|
|
7,261 |
|
|
6,088 |
|
|
12,854 |
|
Stock
compensation expense |
18,002 |
|
|
17,203 |
|
|
29,269 |
|
|
27,826 |
|
Depreciation and amortization |
13,576 |
|
|
12,042 |
|
|
27,498 |
|
|
23,969 |
|
Other,
net |
56 |
|
|
(174 |
) |
|
104 |
|
|
(525 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
(46,876 |
) |
|
(73,142 |
) |
|
53,771 |
|
|
2,312 |
|
Decrease
in accounts payable and accrued expenses |
58,075 |
|
|
52,623 |
|
|
12,231 |
|
|
34,299 |
|
Increase
in deferred contract costs |
(20,019 |
) |
|
— |
|
|
(16,612 |
) |
|
— |
|
Decrease
in contract liabilities |
20,294 |
|
|
— |
|
|
12,893 |
|
|
— |
|
Decrease
in income taxes payable, net |
(38,059 |
) |
|
(47,159 |
) |
|
(18,550 |
) |
|
(27,335 |
) |
(Increase) decrease in other current assets |
(1,202 |
) |
|
3,290 |
|
|
(68 |
) |
|
(275 |
) |
Net cash from operating
activities |
148,556 |
|
|
81,214 |
|
|
384,033 |
|
|
276,893 |
|
Investing
Activities: |
|
|
|
|
|
|
|
Purchase of property
and equipment |
(12,113 |
) |
|
(20,380 |
) |
|
(25,909 |
) |
|
(33,141 |
) |
Other, net |
(1,564 |
) |
|
40 |
|
|
(1,995 |
) |
|
(631 |
) |
Net cash from investing
activities |
(13,677 |
) |
|
(20,340 |
) |
|
(27,904 |
) |
|
(33,772 |
) |
Financing
Activities: |
|
|
|
|
|
|
|
Proceeds from issuance
of common stock |
95,363 |
|
|
51,501 |
|
|
121,760 |
|
|
96,866 |
|
Repurchases of common
stock |
(235,572 |
) |
|
(84,052 |
) |
|
(407,932 |
) |
|
(137,960 |
) |
Dividends paid |
(79,180 |
) |
|
(75,726 |
) |
|
(79,180 |
) |
|
(75,726 |
) |
Payments for taxes
related to net share settlements |
(3,215 |
) |
|
— |
|
|
(3,215 |
) |
|
— |
|
Net cash from financing
activities |
(222,604 |
) |
|
(108,277 |
) |
|
(368,567 |
) |
|
(116,820 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
(24,322 |
) |
|
6,270 |
|
|
(17,807 |
) |
|
14,174 |
|
(Decrease) increase in
cash and cash equivalents |
(112,047 |
) |
|
(41,133 |
) |
|
(30,245 |
) |
|
140,475 |
|
Cash and cash
equivalents at beginning of period |
1,132,901 |
|
|
1,156,043 |
|
|
1,051,099 |
|
|
974,435 |
|
Cash and cash
equivalents at end of period |
$ |
1,020,854 |
|
|
$ |
1,114,910 |
|
|
$ |
1,020,854 |
|
|
$ |
1,114,910 |
|
Taxes
paid: |
|
|
|
|
|
|
|
Income taxes |
$ |
85,612 |
|
|
$ |
103,508 |
|
|
$ |
124,131 |
|
|
$ |
132,654 |
|
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.AND
SUBSIDIARIESBusiness Segment Information(In
thousands)(Unaudited)
|
UNITEDSTATES |
|
OTHERNORTHAMERICA |
|
LATINAMERICA |
|
NORTH ASIA |
|
SOUTH ASIA |
|
EUROPE |
|
MIDDLEEAST,AFRICAAND
INDIA |
|
ELIMI-NATIONS |
|
CONSOLI-DATED |
Three months
ended June 30, 2018: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
567,271 |
|
|
80,268 |
|
|
38,697 |
|
|
674,101 |
|
|
172,696 |
|
|
315,950 |
|
|
108,576 |
|
|
— |
|
|
1,957,559 |
|
Transfers between
geographic areas |
30,805 |
|
|
3,976 |
|
|
3,921 |
|
|
6,126 |
|
|
6,832 |
|
|
14,825 |
|
|
5,429 |
|
|
(71,914 |
) |
|
— |
|
Total revenues |
$ |
598,076 |
|
|
84,244 |
|
|
42,618 |
|
|
680,227 |
|
|
179,528 |
|
|
330,775 |
|
|
114,005 |
|
|
(71,914 |
) |
|
1,957,559 |
|
Net revenues |
$ |
271,880 |
|
|
34,749 |
|
|
15,923 |
|
|
140,583 |
|
|
44,886 |
|
|
102,371 |
|
|
33,125 |
|
|
(971 |
) |
|
642,546 |
|
Operating income |
$ |
63,628 |
|
|
10,077 |
|
|
2,701 |
|
|
70,359 |
|
|
13,374 |
|
|
16,958 |
|
|
6,490 |
|
|
(3 |
) |
|
183,584 |
|
Identifiable
assets |
$ |
1,488,060 |
|
|
153,827 |
|
|
54,186 |
|
|
540,954 |
|
|
157,479 |
|
|
526,607 |
|
|
217,716 |
|
|
(5,997 |
) |
|
3,132,832 |
|
Capital
expenditures |
$ |
6,032 |
|
|
2,191 |
|
|
167 |
|
|
559 |
|
|
695 |
|
|
1,225 |
|
|
1,244 |
|
|
— |
|
|
12,113 |
|
Depreciation and
amortization |
$ |
8,447 |
|
|
473 |
|
|
395 |
|
|
1,303 |
|
|
542 |
|
|
1,955 |
|
|
461 |
|
|
— |
|
|
13,576 |
|
Equity |
$ |
1,196,226 |
|
|
56,702 |
|
|
26,625 |
|
|
250,513 |
|
|
112,259 |
|
|
157,493 |
|
|
127,032 |
|
|
(34,291 |
) |
|
1,892,559 |
|
Three months
ended June 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
452,217 |
|
|
62,554 |
|
|
23,463 |
|
|
620,050 |
|
|
157,698 |
|
|
259,533 |
|
|
96,764 |
|
|
— |
|
|
1,672,279 |
|
Transfers between
geographic areas |
28,155 |
|
|
2,825 |
|
|
3,759 |
|
|
4,835 |
|
|
5,408 |
|
|
9,664 |
|
|
5,034 |
|
|
(59,680 |
) |
|
— |
|
Total revenues |
$ |
480,372 |
|
|
65,379 |
|
|
27,222 |
|
|
624,885 |
|
|
163,106 |
|
|
269,197 |
|
|
101,798 |
|
|
(59,680 |
) |
|
1,672,279 |
|
Net revenues |
$ |
250,027 |
|
|
28,173 |
|
|
14,008 |
|
|
120,959 |
|
|
38,228 |
|
|
80,896 |
|
|
30,286 |
|
|
1,056 |
|
|
563,633 |
|
Operating income |
$ |
64,265 |
|
|
12,317 |
|
|
2,246 |
|
|
58,093 |
|
|
12,513 |
|
|
13,419 |
|
|
5,390 |
|
|
(3 |
) |
|
168,240 |
|
Identifiable
assets |
$ |
1,487,582 |
|
|
129,830 |
|
|
48,064 |
|
|
576,655 |
|
|
129,002 |
|
|
437,628 |
|
|
207,191 |
|
|
6,804 |
|
|
3,022,756 |
|
Capital
expenditures |
$ |
6,852 |
|
|
569 |
|
|
957 |
|
|
663 |
|
|
409 |
|
|
10,501 |
|
|
429 |
|
|
— |
|
|
20,380 |
|
Depreciation and
amortization |
$ |
7,731 |
|
|
386 |
|
|
300 |
|
|
1,362 |
|
|
556 |
|
|
1,227 |
|
|
480 |
|
|
— |
|
|
12,042 |
|
Equity |
$ |
1,147,962 |
|
|
61,957 |
|
|
24,320 |
|
|
402,211 |
|
|
117,077 |
|
|
135,726 |
|
|
124,628 |
|
|
(35,244 |
) |
|
1,978,637 |
|
|
UNITED STATES |
|
OTHER NORTH AMERICA |
|
LATIN AMERICA |
|
NORTH ASIA |
|
SOUTH ASIA |
|
EUROPE |
|
MIDDLE EAST, AFRICA AND INDIA |
|
ELIMI- NATIONS |
|
CONSOLI- DATED |
Six months
ended June 30, 2018: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
1,102,140 |
|
|
156,793 |
|
|
71,419 |
|
|
1,304,673 |
|
|
341,296 |
|
|
621,742 |
|
|
213,758 |
|
|
— |
|
|
3,811,821 |
|
Transfers between
geographic areas |
59,686 |
|
|
7,538 |
|
|
7,308 |
|
|
12,143 |
|
|
13,382 |
|
|
29,013 |
|
|
10,784 |
|
|
(139,854 |
) |
|
— |
|
Total revenues |
$ |
1,161,826 |
|
|
164,331 |
|
|
78,727 |
|
|
1,316,816 |
|
|
354,678 |
|
|
650,755 |
|
|
224,542 |
|
|
(139,854 |
) |
|
3,811,821 |
|
Net revenues |
$ |
549,065 |
|
|
65,196 |
|
|
30,668 |
|
|
277,791 |
|
|
89,292 |
|
|
201,006 |
|
|
66,326 |
|
|
(960 |
) |
|
1,278,384 |
|
Operating income |
$ |
133,276 |
|
|
19,095 |
|
|
5,071 |
|
|
140,282 |
|
|
28,506 |
|
|
36,236 |
|
|
13,928 |
|
|
8 |
|
|
376,402 |
|
Identifiable assets at
period end |
$ |
1,488,060 |
|
|
153,827 |
|
|
54,186 |
|
|
540,954 |
|
|
157,479 |
|
|
526,607 |
|
|
217,716 |
|
|
(5,997 |
) |
|
3,132,832 |
|
Capital
expenditures |
$ |
9,203 |
|
|
3,719 |
|
|
672 |
|
|
1,343 |
|
|
1,024 |
|
|
8,416 |
|
|
1,532 |
|
|
— |
|
|
25,909 |
|
Depreciation and
amortization |
$ |
17,212 |
|
|
871 |
|
|
763 |
|
|
2,679 |
|
|
1,125 |
|
|
3,931 |
|
|
917 |
|
|
— |
|
|
27,498 |
|
Equity |
$ |
1,196,226 |
|
|
56,702 |
|
|
26,625 |
|
|
250,513 |
|
|
112,259 |
|
|
157,493 |
|
|
127,032 |
|
|
(34,291 |
) |
|
1,892,559 |
|
Six months
ended June 30, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
$ |
878,236 |
|
|
122,453 |
|
|
45,566 |
|
|
1,186,478 |
|
|
304,938 |
|
|
490,990 |
|
|
188,750 |
|
|
— |
|
|
3,217,411 |
|
Transfers between
geographic areas |
52,468 |
|
|
5,464 |
|
|
7,394 |
|
|
9,886 |
|
|
10,839 |
|
|
18,986 |
|
|
9,998 |
|
|
(115,035 |
) |
|
— |
|
Total revenues |
$ |
930,704 |
|
|
127,917 |
|
|
52,960 |
|
|
1,196,364 |
|
|
315,777 |
|
|
509,976 |
|
|
198,748 |
|
|
(115,035 |
) |
|
3,217,411 |
|
Net revenues |
$ |
480,812 |
|
|
53,966 |
|
|
28,924 |
|
|
232,792 |
|
|
76,223 |
|
|
156,854 |
|
|
60,017 |
|
|
1,650 |
|
|
1,091,238 |
|
Operating income |
$ |
116,611 |
|
|
17,368 |
|
|
5,697 |
|
|
111,445 |
|
|
25,737 |
|
|
25,065 |
|
|
12,433 |
|
|
(2 |
) |
|
314,354 |
|
Identifiable assets at
period end |
$ |
1,487,582 |
|
|
129,830 |
|
|
48,064 |
|
|
576,655 |
|
|
129,002 |
|
|
437,628 |
|
|
207,191 |
|
|
6,804 |
|
|
3,022,756 |
|
Capital
expenditures |
$ |
12,094 |
|
|
803 |
|
|
1,212 |
|
|
1,903 |
|
|
782 |
|
|
15,579 |
|
|
768 |
|
|
— |
|
|
33,141 |
|
Depreciation and
amortization |
$ |
15,484 |
|
|
758 |
|
|
620 |
|
|
2,682 |
|
|
1,087 |
|
|
2,398 |
|
|
940 |
|
|
— |
|
|
23,969 |
|
Equity |
$ |
1,147,962 |
|
|
61,957 |
|
|
24,320 |
|
|
402,211 |
|
|
117,077 |
|
|
135,726 |
|
|
124,628 |
|
|
(35,244 |
) |
|
1,978,637 |
|
Net Revenues (Non-GAAP measure)
We commonly refer to the term “net revenues” when commenting
about our Company and the results of its operations. Net revenues
are a Non-GAAP measure calculated as revenues less directly related
operations expenses attributable to the Company's principal
services. We believe that net revenues are a better measure than
are total revenues when analyzing and discussing our effectiveness
in managing our principal services since total revenues earned as a
freight consolidator must consider the carriers' charges to us for
carrying the shipment, whereas revenues earned in other capacities
include primarily the commissions and fees earned by us. Net
revenues are one of our primary operational and financial measures
and demonstrates our ability to concentrate and leverage purchasing
power through effective consolidation of shipments from customers
utilizing a variety of transportation carriers and optimal
routings. Using net revenues also provides a commonality for
comparison among various services. The following table presents the
calculation of net revenues.
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
(in thousands) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Total revenues |
$ |
1,957,559 |
|
|
$ |
1,672,279 |
|
|
$ |
3,811,821 |
|
|
$ |
3,217,411 |
|
Expenses: |
|
|
|
|
|
|
|
Airfreight
services |
593,325 |
|
|
499,418 |
|
|
1,106,829 |
|
|
942,822 |
|
Ocean freight and ocean
services |
385,156 |
|
|
385,927 |
|
|
764,574 |
|
|
751,990 |
|
Customs brokerage and
other services |
336,532 |
|
|
223,301 |
|
|
662,034 |
|
|
431,361 |
|
Net
revenues |
$ |
642,546 |
|
|
$ |
563,633 |
|
|
$ |
1,278,384 |
|
|
$ |
1,091,238 |
|
CONTACTS:
Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433
Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412
Geoffrey Buscher
Director - Investor Relations
(206) 892-4510
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