Exhibit 99.1
EARNINGS RELEASE
By: Expeditors International of Washington, Inc.
1015 Third Avenue, Suite 1200
Seattle, Washington 98104
| |
CONTACTS: | Jeffrey S. Musser Bradley S. Powell |
President and Chief Executive Officer Senior Vice President and Chief Financial Officer
(206) 674-3433 (206) 674-3412
FOR IMMEDIATE RELEASE
__________________________________________________________________________________________________________________________________________________________________________
EXPEDITORS REPORTS RECORD SECOND QUARTER 2015 EPS OF $0.61 PER SHARE 1
SEATTLE, WASHINGTON - August 4, 2015, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced second quarter 2015 financial results including the following highlights:
| |
| • | Revenues increased 6% to a second quarter record of $1.69 billion |
| |
| • | Airfreight tonnage volume increased 9% and ocean container volume increased 5% |
| |
| • | Net Revenues2 increased 14% to a record $552 million and yields expanded 233 basis points to 32.6% |
| |
| • | Operating Income increased 28% to a record $183 million |
| |
| • | Net Earnings Attributable to Shareholders increased 29% to a record $118 million |
| |
| • | Diluted Net Earnings Attributable to Shareholders per share increased 33% to a record $0.61 |
“We are extremely pleased with our second quarter financial results and believe that these results validate the efforts that our senior team has put in over the last twelve months crafting and creating a strategy that would return our Company to double digit growth. Of course the best planned strategy cannot be effectively executed without a solid team of individuals who perform our daily operations. We remain incredibly thankful for those 15,000 employees,” said Jeffrey S. Musser, President and Chief Executive Officer. “Although still in the early implementation of our strategic initiatives, we are on track with our internal targets. As an example, this quarter represents the fourth consecutive quarter where we have achieved our target of double digit growth in Operating Income and EPS1. We are, however, fully aware of the stiff comparable that exists in the second half of 2015. There is no doubt that global trade has slowed from its peak period but rest assured that we will remain focused on the things we can control such as best in class customer service and efficient execution,” Musser went on to say.
“In addition to our strong growth in air and ocean volumes, the second quarter benefited from favorable spot market buying opportunities. This resulted in a significant expansion of our margins. We expect pricing volatility to continue as customers and carriers adjust to current market conditions,” commented Bradley S. Powell, Senior Vice President and Chief Financial Officer. “We believe the unquantifiable benefit to airfreight volumes attributable to the West Coast labor dispute carried over to the early part of the second quarter as port operations improved. Our people did an exceptional job controlling expenses and cash flow while continuing our investments in customer service and technology,” concluded Powell.
Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 186 full-service offices and numerous satellite 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 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 2015 Earnings Release, August 4, 2015
Financial Highlights for the Three and Six months ended June 30, 2015 and 2014 (Unaudited)
(in 000's of US dollars except share data)
|
| | | | | | | | | | | | | | | | | | | |
| | Three months ended June 30, | | | | Six months ended June 30, | | |
| | 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change |
| Revenues | $ | 1,691,553 |
| | $ | 1,599,141 |
| | 6% | | $ | 3,369,079 |
| | $ | 3,090,786 |
| | 9% |
Net revenues1 | $ | 552,141 |
| | $ | 484,714 |
| | 14% | | $ | 1,081,627 |
| | $ | 949,300 |
| | 14% |
| Operating income | $ | 182,716 |
| | $ | 142,443 |
| | 28% | | $ | 351,599 |
| | $ | 277,646 |
| | 27% |
| Net earnings attributable to shareholders | $ | 117,760 |
| | $ | 91,302 |
| | 29% | | $ | 224,464 |
| | $ | 175,126 |
| | 28% |
| Diluted earnings attributable to shareholders per share | $ | 0.61 |
| | $ | 0.46 |
| | 33% | | $ | 1.17 |
| | $ | 0.88 |
| | 33% |
| Basic earnings attributable to shareholders per share | $ | 0.62 |
| | $ | 0.46 |
| | 35% | | $ | 1.17 |
| | $ | 0.88 |
| | 33% |
| Diluted weighted average shares outstanding | 191,917,973 |
| | 197,126,243 |
| | | | 192,425,521 |
| | 199,482,932 |
| | |
| Basic weighted average shares outstanding | 190,679,008 |
| | 196,451,912 |
| | | | 191,150,758 |
| | 198,772,260 |
| | |
_______________________
1Non-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.
During the three and six-month periods ended June 30, 2015, the Company repurchased 2.7 million and 4.3 million shares of common stock at an average price of $47.46 and $47.61 per share, respectively. During the three and six-month periods ended June 30, 2014, the Company repurchased 2.9 million and 8.6 million shares of common stock at an average price of $45.72 and $41.64 per share, respectively.
|
| | | | | |
| | Employee headcount as of June 30, |
| | 2015 | | 2014 |
| North America | 5,493 |
| | 5,032 |
|
| Europe | 2,609 |
| | 2,290 |
|
| North Asia | 2,425 |
| | 2,502 |
|
| Middle East, Africa and India | 1,387 |
| | 1,327 |
|
| South Asia | 1,312 |
| | 1,262 |
|
| Latin America | 809 |
| | 725 |
|
| Information Systems | 711 |
| | 651 |
|
| Corporate | 313 |
| | 294 |
|
| Total | 15,059 |
| | 14,083 |
|
|
| | | | | | |
| | | Year-over-year percentage increase in: |
| | | Airfreight kilos | | Ocean freight FEU |
| 2015 | | | | |
| April | | 10 | % | | 6 | % |
| May | | 8 | % | | 6 | % |
| June | | 8 | % | | 2 | % |
| Quarter | | 9 | % | | 5 | % |
_______________________
Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 7, 2015 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about August 14, 2015.
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 future pricing volatility and impacts on margins, condition of the global economy, ability to achieve sustainable double digit growth, ability to achieve benefits from new strategies and organization structure and ability to achieve strategic goals. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, customers’ inventory build-up, decreased consumer confidence, volatility in equity markets, energy and fuel prices, political changes, foreign exchange rates, regulatory actions or changes or the unpredictable acts of competitors and other risks, 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 share data)
(Unaudited)
|
| | | | | | | |
| | June 30,
2015 | | December 31, 2014 |
| Assets | | | |
| Current Assets: | | | |
| Cash and cash equivalents | $ | 985,727 |
| | $ | 927,107 |
|
| Short-term investments | 47,047 |
| | 40,336 |
|
| Accounts receivable, net | 1,194,180 |
| | 1,236,042 |
|
| Deferred Federal and state income taxes | 20,930 |
| | 20,279 |
|
| Other current assets | 86,871 |
| | 65,486 |
|
| Total current assets | 2,334,755 |
| | 2,289,250 |
|
| Property and equipment, net | 536,121 |
| | 538,415 |
|
| Goodwill | 7,927 |
| | 7,927 |
|
| Other assets, net | 53,572 |
| | 55,313 |
|
| | $ | 2,932,375 |
| | $ | 2,890,905 |
|
| Liabilities and Equity | | | |
| Current Liabilities: | | | |
| Accounts payable | 738,323 |
| | 770,238 |
|
| Accrued expenses, primarily salaries and related costs | 228,537 |
| | 192,468 |
|
| Federal, state and foreign income taxes | 26,821 |
| | 21,077 |
|
| Total current liabilities | 993,681 |
| | 983,783 |
|
| Deferred Federal and state income taxes | 48,961 |
| | 35,514 |
|
| | | | |
| Commitments and contingencies |
| |
|
| | | | |
| Shareholders’ Equity: | | | |
| Preferred stock; none issued | — |
| | — |
|
| Common stock, par value $0.01 per share. Issued and outstanding 189,117,916 shares at June 30, 2015 and 191,655,690 shares at December 31, 2014 | 1,891 |
| | 1,916 |
|
| Additional paid-in capital | 2,349 |
| | 1,113 |
|
| Retained earnings | 1,935,159 |
| | 1,903,196 |
|
| Accumulated other comprehensive loss | (52,778 | ) | | (37,817 | ) |
| Total shareholders’ equity | 1,886,621 |
| | 1,868,408 |
|
| Noncontrolling interest | 3,112 |
| | 3,200 |
|
| Total equity | 1,889,733 |
| | 1,871,608 |
|
| | $ | 2,932,375 |
| | $ | 2,890,905 |
|
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 3 of 8 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Three months ended | | Six months ended |
| | June 30, | | June 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Revenues: | | | | | | | |
| Airfreight services | $ | 693,812 |
| | $ | 667,257 |
| | $ | 1,401,256 |
| | $ | 1,314,395 |
|
| Ocean freight and ocean services | 576,772 |
| | 536,438 |
| | 1,142,489 |
| | 1,005,662 |
|
| Customs brokerage and other services | 420,969 |
| | 395,446 |
| | 825,334 |
| | 770,729 |
|
| Total revenues | 1,691,553 |
| | 1,599,141 |
| | 3,369,079 |
| | 3,090,786 |
|
| Operating Expenses: | | | | | | | |
| Airfreight services | 506,988 |
| | 503,213 |
| | 1,019,989 |
| | 986,095 |
|
| Ocean freight and ocean services | 433,356 |
| | 423,716 |
| | 878,812 |
| | 791,091 |
|
| Customs brokerage and other services | 199,068 |
| | 187,498 |
| | 388,651 |
| | 364,300 |
|
| Salaries and related costs | 287,065 |
| | 260,767 |
| | 565,943 |
| | 516,709 |
|
| Rent and occupancy costs | 24,971 |
| | 25,401 |
| | 50,359 |
| | 50,563 |
|
| Depreciation and amortization | 11,420 |
| | 12,417 |
| | 22,949 |
| | 24,799 |
|
| Selling and promotion | 10,529 |
| | 9,291 |
| | 19,776 |
| | 17,464 |
|
| Other | 35,440 |
| | 34,395 |
| | 71,001 |
| | 62,119 |
|
| Total operating expenses | 1,508,837 |
| | 1,456,698 |
| | 3,017,480 |
| | 2,813,140 |
|
| Operating income | 182,716 |
| | 142,443 |
| | 351,599 |
| | 277,646 |
|
| Other Income (Expense): | | | | | | | |
| Interest income | 2,636 |
| | 2,764 |
| | 5,368 |
| | 5,461 |
|
| Other, net | 3,804 |
| | 3,190 |
| | 3,838 |
| | 2,909 |
|
| Other income, net | 6,440 |
| | 5,954 |
| | 9,206 |
| | 8,370 |
|
| Earnings before income taxes | 189,156 |
| | 148,397 |
| | 360,805 |
| | 286,016 |
|
| Income tax expense | 70,827 |
| | 56,669 |
| | 135,144 |
| | 110,093 |
|
| Net earnings | 118,329 |
| | 91,728 |
| | 225,661 |
| | 175,923 |
|
| Less net earnings attributable to the noncontrolling interest | 569 |
| | 426 |
| | 1,197 |
| | 797 |
|
| Net earnings attributable to shareholders | $ | 117,760 |
| | $ | 91,302 |
| | $ | 224,464 |
| | $ | 175,126 |
|
| Diluted earnings attributable to shareholders per share | $ | 0.61 |
| | $ | 0.46 |
| | $ | 1.17 |
| | $ | 0.88 |
|
| Basic earnings attributable to shareholders per share | $ | 0.62 |
| | $ | 0.46 |
| | $ | 1.17 |
| | $ | 0.88 |
|
| Weighted average diluted shares outstanding | 191,917,973 |
| | 197,126,243 |
| | 192,425,521 |
| | 199,482,932 |
|
| Weighted average basic shares outstanding | 190,679,008 |
| | 196,451,912 |
| | 191,150,758 |
| | 198,772,260 |
|
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 4 of 8 |
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, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Operating Activities: | | | | | | | |
| Net earnings | $ | 118,329 |
| | $ | 91,728 |
| | $ | 225,661 |
| | $ | 175,923 |
|
| Adjustments to reconcile net earnings to net cash from operating activities: | | | | | | | |
| Provision for losses (recoveries) on accounts receivable | 584 |
| | 496 |
| | 861 |
| | (619 | ) |
| Deferred income tax expense | 8,986 |
| | 2,891 |
| | 20,923 |
| | 10,085 |
|
| Excess tax benefits from stock plans | (366 | ) | | (495 | ) | | (1,846 | ) | | (984 | ) |
| Stock compensation expense | 11,663 |
| | 11,877 |
| | 21,570 |
| | 22,171 |
|
| Depreciation and amortization | 11,420 |
| | 12,417 |
| | 22,949 |
| | 24,799 |
|
| Other | 27 |
| | 68 |
| | 113 |
| | 206 |
|
| Changes in operating assets and liabilities: | | | | | | | |
| Decrease (increase) in accounts receivable | 63,234 |
| | (84,618 | ) | | 16,444 |
| | (72,390 | ) |
| Increase in accounts payable and accrued expenses | 8,038 |
| | 61,377 |
| | 22,933 |
| | 90,923 |
|
| Decrease in income taxes payable, net | (39,000 | ) | | (47,370 | ) | | (15,868 | ) | | (29,165 | ) |
| (Increase) decrease in other current assets | (1,187 | ) | | (3,485 | ) | | 2,382 |
| | (2,206 | ) |
| Net cash from operating activities | 181,728 |
| | 44,886 |
| | 316,122 |
| | 218,743 |
|
| Investing Activities: | | | | | | | |
| (Increase) decrease in short-term investments, net | (46,986 | ) | | 342 |
| | (6,712 | ) | | (59,812 | ) |
| Purchase of property and equipment | (12,912 | ) | | (9,635 | ) | | (22,357 | ) | | (18,395 | ) |
| Escrow deposit for land acquisition | — |
| | (27,101 | ) | | — |
| | (27,101 | ) |
| Other, net | (14 | ) | | (1,536 | ) | | 184 |
| | 134 |
|
| Net cash from investing activities | (59,912 | ) | | (37,930 | ) | | (28,885 | ) | | (105,174 | ) |
| Financing Activities: | | | | | | | |
| Proceeds from issuance of common stock | 25,047 |
| | 22,125 |
| | 60,095 |
| | 30,017 |
|
| Repurchases of common stock | (128,137 | ) | | (131,391 | ) | | (205,505 | ) | | (358,116 | ) |
| Excess tax benefits from stock plans | 366 |
| | 495 |
| | 1,846 |
| | 984 |
|
| Dividends paid | (68,781 | ) | | (62,807 | ) | | (68,781 | ) | | (62,807 | ) |
| Distribution to noncontrolling interest | — |
| | — |
| | (857 | ) | | (85 | ) |
| Net cash from financing activities | (171,505 | ) | | (171,578 | ) | | (213,202 | ) | | (390,007 | ) |
| Effect of exchange rate changes on cash and cash equivalents | 2,272 |
| | 4,137 |
| | (15,415 | ) | | (653 | ) |
| (Decrease) increase in cash and cash equivalents | (47,417 | ) | | (160,485 | ) | | 58,620 |
| | (277,091 | ) |
| Cash and cash equivalents at beginning of period | 1,033,144 |
| | 1,131,046 |
| | 927,107 |
| | 1,247,652 |
|
| Cash and cash equivalents at end of period | $ | 985,727 |
| | $ | 970,561 |
| | $ | 985,727 |
| | $ | 970,561 |
|
| Taxes paid: | | | | | | | |
| Income taxes | $ | 101,389 |
| | $ | 105,963 |
| | $ | 129,650 |
| | $ | 133,459 |
|
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 5 of 8 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | UNITED STATES | | OTHER NORTH AMERICA | | LATIN AMERICA | | NORTH ASIA | | SOUTH ASIA | | EUROPE | | MIDDLE EAST, AFRICA and INDIA | | ELIMI- NATIONS | | CONSOLI- DATED |
| Three months ended June 30, 2015: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 449,622 |
| | 58,739 |
| | 24,314 |
| | 649,901 |
| | 184,862 |
| | 239,953 |
| | 84,162 |
| | — |
| | 1,691,553 |
|
| Transfers between geographic areas | 32,486 |
| | 3,685 |
| | 5,403 |
| | 5,427 |
| | 6,473 |
| | 10,716 |
| | 5,112 |
| | (69,302 | ) | | — |
|
| Total revenues | $ | 482,108 |
| | 62,424 |
| | 29,717 |
| | 655,328 |
| | 191,335 |
| | 250,669 |
| | 89,274 |
| | (69,302 | ) | | 1,691,553 |
|
Net revenues1 | $ | 229,353 |
| | 30,576 |
| | 17,485 |
| | 124,491 |
| | 46,944 |
| | 76,607 |
| | 26,685 |
| | — |
| | 552,141 |
|
| Operating income | $ | 68,547 |
| | 10,437 |
| | 5,441 |
| | 60,597 |
| | 16,140 |
| | 15,587 |
| | 5,967 |
| | — |
| | 182,716 |
|
| Identifiable assets | $ | 1,381,755 |
| | 103,613 |
| | 57,711 |
| | 572,425 |
| | 141,344 |
| | 448,475 |
| | 219,280 |
| | 7,772 |
| | 2,932,375 |
|
| Capital expenditures | $ | 7,711 |
| | 1,656 |
| | 569 |
| | 475 |
| | 989 |
| | 921 |
| | 591 |
| | — |
| | 12,912 |
|
| Depreciation and amortization | $ | 7,339 |
| | 310 |
| | 248 |
| | 1,379 |
| | 548 |
| | 1,176 |
| | 420 |
| | — |
| | 11,420 |
|
| Equity | $ | 1,075,703 |
| | 59,374 |
| | 38,447 |
| | 344,479 |
| | 118,175 |
| | 166,569 |
| | 124,564 |
| | (37,578 | ) | | 1,889,733 |
|
| Three months ended June 30, 2014: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 416,454 |
| | 55,343 |
| | 22,003 |
| | 623,625 |
| | 152,570 |
| | 250,823 |
| | 78,323 |
| | — |
| | 1,599,141 |
|
| Transfers between geographic areas | 22,408 |
| | 2,587 |
| | 5,567 |
| | 5,637 |
| | 6,708 |
| | 9,829 |
| | 4,925 |
| | (57,661 | ) | | — |
|
| Total revenues | $ | 438,862 |
| | 57,930 |
| | 27,570 |
| | 629,262 |
| | 159,278 |
|
| 260,652 |
| | 83,248 |
| | (57,661 | ) | | 1,599,141 |
|
Net revenues1 | $ | 200,106 |
| | 25,533 |
| | 16,648 |
| | 97,498 |
| | 40,145 |
| | 79,958 |
| | 24,826 |
| | — |
| | 484,714 |
|
| Operating income | $ | 59,780 |
| | 7,001 |
| | 4,676 |
| | 39,321 |
| | 11,828 |
| | 14,952 |
| | 4,885 |
| | — |
| | 142,443 |
|
| Identifiable assets | $ | 1,328,312 |
| | 110,498 |
| | 57,588 |
| | 587,891 |
| | 153,660 |
| | 481,190 |
| | 205,023 |
| | 5,778 |
| | 2,929,940 |
|
| Capital expenditures | $ | 5,547 |
| | 422 |
| | 171 |
| | 1,383 |
| | 518 |
| | 1,234 |
| | 360 |
| | — |
| | 9,635 |
|
| Depreciation and amortization | $ | 7,879 |
| | 296 |
| | 227 |
| | 1,476 |
| | 620 |
| | 1,478 |
| | 441 |
| | — |
| | 12,417 |
|
| Equity | $ | 1,044,386 |
| | 72,681 |
| | 35,578 |
| | 356,974 |
| | 122,577 |
| | 189,296 |
| | 112,394 |
| | (36,749 | ) | | 1,897,137 |
|
1Non-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.
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 6 of 8 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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, 2015: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 893,803 |
| | 113,533 |
| | 48,395 |
| | 1,295,345 |
| | 366,243 |
| | 482,039 |
| | 169,721 |
| | — |
| | 3,369,079 |
|
| Transfers between geographic areas | 60,161 |
| | 6,499 |
| | 10,180 |
| | 11,124 |
| | 12,388 |
| | 20,353 |
| | 10,179 |
| | (130,884 | ) | | — |
|
| Total revenues | $ | 953,964 |
| | 120,032 |
| | 58,575 |
| | 1,306,469 |
| | 378,631 |
| | 502,392 |
| | 179,900 |
| | (130,884 | ) | | 3,369,079 |
|
Net revenues1 | $ | 448,956 |
| | 61,254 |
| | 34,044 |
| | 241,896 |
| | 89,144 |
| | 152,495 |
| | 53,838 |
| | — |
| | 1,081,627 |
|
| Operating income | $ | 127,728 |
| | 21,528 |
| | 10,797 |
| | 117,653 |
| | 30,020 |
| | 30,658 |
| | 13,215 |
| | — |
| | 351,599 |
|
| Identifiable assets | $ | 1,381,755 |
| | 103,613 |
| | 57,711 |
| | 572,425 |
| | 141,344 |
| | 448,475 |
| | 219,280 |
| | 7,772 |
| | 2,932,375 |
|
| Capital expenditures | $ | 14,036 |
| | 1,944 |
| | 1,186 |
| | 765 |
| | 1,308 |
| | 2,069 |
| | 1,049 |
| | — |
| | 22,357 |
|
| Depreciation and amortization | $ | 14,732 |
| | 602 |
| | 516 |
| | 2,778 |
| | 1,078 |
| | 2,422 |
| | 821 |
| | — |
| | 22,949 |
|
| Equity | $ | 1,075,703 |
| | 59,374 |
| | 38,447 |
| | 344,479 |
| | 118,175 |
| | 166,569 |
| | 124,564 |
| | (37,578 | ) | | 1,889,733 |
|
| Six months ended June 30, 2014: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 817,193 |
| | 106,927 |
| | 42,632 |
| | 1,192,314 |
| | 293,313 |
| | 484,506 |
| | 153,901 |
| | — |
| | 3,090,786 |
|
| Transfers between geographic areas | 42,419 |
| | 4,962 |
| | 10,771 |
| | 11,054 |
| | 13,258 |
| | 19,148 |
| | 9,467 |
| | (111,079 | ) | | — |
|
| Total revenues | $ | 859,612 |
| | 111,889 |
| | 53,403 |
| | 1,203,368 |
| | 306,571 |
| | 503,654 |
| | 163,368 |
| | (111,079 | ) | | 3,090,786 |
|
Net revenues1 | $ | 392,188 |
| | 51,694 |
| | 32,005 |
| | 190,892 |
| | 79,238 |
| | 154,289 |
| | 48,994 |
| | — |
| | 949,300 |
|
| Operating income | $ | 111,678 |
| | 15,376 |
| | 9,535 |
| | 79,375 |
| | 24,298 |
| | 26,594 |
| | 10,790 |
| | — |
| | 277,646 |
|
| Identifiable assets | $ | 1,328,312 |
| | 110,498 |
| | 57,588 |
| | 587,891 |
| | 153,660 |
| | 481,190 |
| | 205,023 |
| | 5,778 |
| | 2,929,940 |
|
| Capital expenditures | $ | 9,475 |
| | 686 |
| | 472 |
| | 4,043 |
| | 974 |
| | 2,100 |
| | 645 |
| | — |
| | 18,395 |
|
| Depreciation and amortization | $ | 15,731 |
| | 576 |
| | 439 |
| | 2,978 |
| | 1,216 |
| | 2,985 |
| | 874 |
| | — |
| | 24,799 |
|
| Equity | $ | 1,044,386 |
| | 72,681 |
| | 35,578 |
| | 356,974 |
| | 122,577 |
| | 189,296 |
| | 112,394 |
| | (36,749 | ) | | 1,897,137 |
|
1Non-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.
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 7 of 8 |
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 revenue is 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) | 2015 | | 2014 | | 2015 | | 2014 |
| Total revenues | $ | 1,691,553 |
| | $ | 1,599,141 |
| | $ | 3,369,079 |
| | $ | 3,090,786 |
|
| Expenses: | | | | | | | |
| Airfreight services | 506,988 |
| | 503,213 |
| | 1,019,989 |
| | 986,095 |
|
| Ocean freight and ocean services | 433,356 |
| | 423,716 |
| | 878,812 |
| | 791,091 |
|
| Customs brokerage and other services | 199,068 |
| | 187,498 |
| | 388,651 |
| | 364,300 |
|
| Net revenues | $ | 552,141 |
| | $ | 484,714 |
| | $ | 1,081,627 |
| | $ | 949,300 |
|
|
| | |
| 04-August-2015 | Expeditors International of Washington, Inc. | Page 8 of 8 |
