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 THIRD QUARTER 2015 EPS OF $0.62 PER SHARE 1
SEATTLE, WASHINGTON - November 3, 2015, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced third quarter 2015 financial results including the following highlights:
| |
| • | Revenues decreased 3% to $1.7 billion |
| |
| • | Airfreight tonnage volume increased 3% and ocean container volume remained flat. |
| |
| • | Net Revenues2 increased 11% to a record $570 million and yields expanded 442 basis points to 34.5% |
| |
| • | Operating Income increased 21% to a record $192 million |
| |
| • | Net Earnings Attributable to Shareholders increased 16% to a record $118 million |
| |
| • | Diluted Net Earnings Attributable to Shareholders per share increased 17% to a record $0.62 |
“In a market where we continue to hear more and more about the overall slowdown in global trade and saw it in our volumes, it is quite pleasing to report another quarter of outstanding financial results and continued achievement of our long-term double-digit growth targets in net revenues, operating income and earnings. We think these results speak clearly to the level of planning that went into the creation of our strategic initiatives and, more importantly, to the level of focus and execution that is taking place in our branches on a day-to-day basis,” said Jeffrey S. Musser, President and Chief Executive Officer. “At a time when it seems that more of our competitors are focused on acquisitions, we remain focused on the organic growth of our people, systems and business. We continue to believe that this model provides the highest long-term value to our employees, customers and shareholders,” Mr. Musser went on to say. “By focusing on organic growth, we can continue to provide superior customer service and reward our highly skilled and motivated employees, for whom we are very grateful, with new opportunities.”
“Our people continued to perform at a high level during the third quarter as demonstrated by expanding yields from improved purchasing in a favorable spot market and strong cost control,” commented Bradley S. Powell, Senior Vice President and Chief Financial Officer. “Air and ocean volume growth slowed and revenues declined 3% year-over-year as both air and ocean overall average sell rates were lower in response to soft market conditions. With these improved margins and continued execution of our strategic initiatives, our primary efficiency measure, operating income as a percentage of net revenue, increased to 33.7%, the highest level in the past five years. We continue to expect pricing volatility going forward as customers and carriers adjust to current market conditions.”
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.
Third Quarter 2015 Earnings Release, November 3, 2015
Financial Highlights for the Three and Nine months ended September 30, 2015 and 2014 (Unaudited)
(in 000's of US dollars except share data)
|
| | | | | | | | | | | | | | | | | | | |
| | Three months ended September 30, | | | | Nine months ended September 30, | | |
| | 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change |
| Revenues | $ | 1,651,332 |
| | $ | 1,705,105 |
| | (3)% | | $ | 5,020,411 |
| | $ | 4,795,891 |
| | 5% |
Net revenues1 | $ | 569,981 |
| | $ | 513,256 |
| | 11% | | $ | 1,651,608 |
| | $ | 1,462,556 |
| | 13% |
| Operating income | $ | 191,893 |
| | $ | 159,131 |
| | 21% | | $ | 543,492 |
| | $ | 436,777 |
| | 24% |
| Net earnings attributable to shareholders | $ | 118,310 |
| | $ | 102,381 |
| | 16% | | $ | 342,774 |
| | $ | 277,507 |
| | 24% |
| Diluted earnings attributable to shareholders per share | $ | 0.62 |
| | $ | 0.53 |
| | 17% | | $ | 1.79 |
| | $ | 1.40 |
| | 28% |
| Basic earnings attributable to shareholders per share | $ | 0.63 |
| | $ | 0.53 |
| | 19% | | $ | 1.80 |
| | $ | 1.41 |
| | 28% |
| Diluted weighted average shares outstanding | 189,641,774 |
| | 195,001,267 |
| | | | 191,447,796 |
| | 197,953,810 |
| | |
| Basic weighted average shares outstanding | 188,424,400 |
| | 194,419,071 |
| | | | 190,231,986 |
| | 197,305,251 |
| | |
_______________________
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 nine-month periods ended September 30, 2015, the Company repurchased 4.3 million and 8.6 million shares of common stock at an average price of $48.58 and $48.10 per share, respectively. During the three and nine-month periods ended September 30, 2014, the Company repurchased 2.8 million and 11.4 million shares of common stock at an average price of $41.46 and $41.60 per share, respectively.
Other, net declined in the three and nine-month periods ended September 30, 2015 when compared with the same periods of 2014 due primarily to foreign exchange losses incurred in the third quarter of 2015.
|
| | | | | |
| | Employee headcount as of September 30, |
| | 2015 | | 2014 |
| North America | 5,573 |
| | 5,152 |
|
| Europe | 2,664 |
| | 2,392 |
|
| North Asia | 2,465 |
| | 2,502 |
|
| Middle East, Africa and India | 1,388 |
| | 1,322 |
|
| South Asia | 1,311 |
| | 1,278 |
|
| Latin America | 797 |
| | 737 |
|
| Information Systems | 722 |
| | 687 |
|
| Corporate | 318 |
| | 302 |
|
| Total | 15,238 |
| | 14,372 |
|
|
| | | | | | |
| | | Year-over-year percentage increase (decrease) in: |
| | | Airfreight kilos | | Ocean freight FEU |
| 2015 | | | | |
| July | | 4 | % | | 1 | % |
| August | | — | % | | — | % |
| September | | 5 | % | | (2 | )% |
| Quarter | | 3 | % | | — | % |
_______________________
Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 6, 2015 will be considered in management's 8-K “Responses to Selected Questions” expected to be filed on or about November 13, 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, ability to maintain current margin levels, condition of the global economy and global trade, ability to achieve sustainable double digit growth, ability to achieve benefits from strategies, initiatives, ability to achieve strategic goals and benefits of organic growth model. 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)
|
| | | | | | | |
| | September 30,
2015 | | December 31, 2014 |
| Assets | | | |
| Current Assets: | | | |
| Cash and cash equivalents | $ | 968,683 |
| | $ | 927,107 |
|
| Short-term investments | 8,260 |
| | 40,336 |
|
| Accounts receivable, net | 1,166,300 |
| | 1,236,042 |
|
| Deferred Federal and state income taxes | 20,862 |
| | 20,279 |
|
| Other current assets | 71,355 |
| | 65,486 |
|
| Total current assets | 2,235,460 |
| | 2,289,250 |
|
| Property and equipment, net | 527,893 |
| | 538,415 |
|
| Goodwill | 7,927 |
| | 7,927 |
|
| Other assets, net | 55,738 |
| | 55,313 |
|
| | $ | 2,827,018 |
| | $ | 2,890,905 |
|
| Liabilities and Equity | | | |
| Current Liabilities: | | | |
| Accounts payable | 718,555 |
| | 770,238 |
|
| Accrued expenses, primarily salaries and related costs | 208,771 |
| | 192,468 |
|
| Federal, state and foreign income taxes | 27,876 |
| | 21,077 |
|
| Total current liabilities | 955,202 |
| | 983,783 |
|
| Deferred Federal and state income taxes | 29,624 |
| | 35,514 |
|
| | | | |
| Commitments and contingencies |
| |
|
| | | | |
| Shareholders’ Equity: | | | |
| Preferred stock; none issued | — |
| | — |
|
| Common stock, par value $0.01 per share. Issued and outstanding 186,183,201 shares at September 30, 2015 and 191,655,690 shares at December 31, 2014 | 1,862 |
| | 1,916 |
|
| Additional paid-in capital | 874 |
| | 1,113 |
|
| Retained earnings | 1,910,388 |
| | 1,903,196 |
|
| Accumulated other comprehensive loss | (74,079 | ) | | (37,817 | ) |
| Total shareholders’ equity | 1,839,045 |
| | 1,868,408 |
|
| Noncontrolling interest | 3,147 |
| | 3,200 |
|
| Total equity | 1,842,192 |
| | 1,871,608 |
|
| | $ | 2,827,018 |
| | $ | 2,890,905 |
|
|
| | |
| 03-November-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 | | Nine months ended |
| | September 30, | | September 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Revenues: | | | | | | | |
| Airfreight services | $ | 659,607 |
| | $ | 686,434 |
| | $ | 2,060,863 |
| | $ | 2,000,829 |
|
| Ocean freight and ocean services | 559,976 |
| | 600,483 |
| | 1,702,465 |
| | 1,606,145 |
|
| Customs brokerage and other services | 431,749 |
| | 418,188 |
| | 1,257,083 |
| | 1,188,917 |
|
| Total revenues | 1,651,332 |
| | 1,705,105 |
| | 5,020,411 |
| | 4,795,891 |
|
| Operating Expenses: | | | | | | | |
| Airfreight services | 464,161 |
| | 516,969 |
| | 1,484,150 |
| | 1,503,064 |
|
| Ocean freight and ocean services | 416,075 |
| | 475,460 |
| | 1,294,887 |
| | 1,266,551 |
|
| Customs brokerage and other services | 201,115 |
| | 199,420 |
| | 589,766 |
| | 563,720 |
|
| Salaries and related costs | 295,566 |
| | 272,548 |
| | 861,509 |
| | 789,257 |
|
| Rent and occupancy costs | 25,747 |
| | 26,396 |
| | 76,106 |
| | 76,959 |
|
| Depreciation and amortization | 11,475 |
| | 12,741 |
| | 34,424 |
| | 37,540 |
|
| Selling and promotion | 10,370 |
| | 9,240 |
| | 30,146 |
| | 26,704 |
|
| Other | 34,930 |
| | 33,200 |
| | 105,931 |
| | 95,319 |
|
| Total operating expenses | 1,459,439 |
| | 1,545,974 |
| | 4,476,919 |
| | 4,359,114 |
|
| Operating income | 191,893 |
| | 159,131 |
| | 543,492 |
| | 436,777 |
|
| Other Income (Expense): | | | | | | | |
| Interest income | 2,666 |
| | 2,793 |
| | 8,034 |
| | 8,254 |
|
| Other, net | (3,085 | ) | | 2,336 |
| | 753 |
| | 5,245 |
|
| Other (expense) income, net | (419 | ) | | 5,129 |
| | 8,787 |
| | 13,499 |
|
| Earnings before income taxes | 191,474 |
| | 164,260 |
| | 552,279 |
| | 450,276 |
|
| Income tax expense | 72,738 |
| | 61,463 |
| | 207,882 |
| | 171,556 |
|
| Net earnings | 118,736 |
| | 102,797 |
| | 344,397 |
| | 278,720 |
|
| Less net earnings attributable to the noncontrolling interest | 426 |
| | 416 |
| | 1,623 |
| | 1,213 |
|
| Net earnings attributable to shareholders | $ | 118,310 |
| | $ | 102,381 |
| | $ | 342,774 |
| | $ | 277,507 |
|
| Diluted earnings attributable to shareholders per share | $ | 0.62 |
| | $ | 0.53 |
| | $ | 1.79 |
| | $ | 1.40 |
|
| Basic earnings attributable to shareholders per share | $ | 0.63 |
| | $ | 0.53 |
| | $ | 1.80 |
| | $ | 1.41 |
|
| Weighted average diluted shares outstanding | 189,641,774 |
| | 195,001,267 |
| | 191,447,796 |
| | 197,953,810 |
|
| Weighted average basic shares outstanding | 188,424,400 |
| | 194,419,071 |
| | 190,231,986 |
| | 197,305,251 |
|
|
| | |
| 03-November-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 | | Nine months ended |
| | September 30, | | September 30, |
| | 2015 | | 2014 | | 2015 | | 2014 |
| Operating Activities: | | | | | | | |
| Net earnings | $ | 118,736 |
| | $ | 102,797 |
| | $ | 344,397 |
| | $ | 278,720 |
|
| Adjustments to reconcile net earnings to net cash from operating activities: | | | | | | | |
| Provision for losses (recoveries) on accounts receivable | 134 |
| | 564 |
| | 995 |
| | (55 | ) |
| Deferred income tax (benefit) expense | (7,611 | ) | | (2,085 | ) | | 13,312 |
| | 8,000 |
|
| Excess tax benefits from stock plans | — |
| | (47 | ) | | (1,846 | ) | | (1,031 | ) |
| Stock compensation expense | 10,919 |
| | 10,049 |
| | 32,489 |
| | 32,220 |
|
| Depreciation and amortization | 11,475 |
| | 12,741 |
| | 34,424 |
| | 37,540 |
|
| Other | 2 |
| | 139 |
| | 115 |
| | 345 |
|
| Changes in operating assets and liabilities: | | | | | | | |
| Decrease (increase) in accounts receivable | 2,466 |
| | (58,984 | ) | | 18,910 |
| | (131,374 | ) |
| (Decrease) increase in accounts payable and accrued expenses | (19,622 | ) | | 23,113 |
| | 3,311 |
| | 114,036 |
|
| Increase (decrease) in income taxes payable, net | 19,978 |
| | 2,050 |
| | 4,110 |
| | (27,115 | ) |
| Increase in other current assets | (3,801 | ) | | (3,646 | ) | | (1,419 | ) | | (5,852 | ) |
| Net cash from operating activities | 132,676 |
| | 86,691 |
| | 448,798 |
| | 305,434 |
|
| Investing Activities: | | | | | | | |
| Decrease (increase) in short-term investments, net | 38,788 |
| | 45,832 |
| | 32,076 |
| | (13,980 | ) |
| Purchase of property and equipment | (9,546 | ) | | (8,255 | ) | | (31,903 | ) | | (26,650 | ) |
| Escrow deposit for land acquisition | — |
| | — |
| | — |
| | (27,101 | ) |
| Other, net | (2,666 | ) | | 370 |
| | (2,482 | ) | | 504 |
|
| Net cash from investing activities | 26,576 |
| | 37,947 |
| | (2,309 | ) | | (67,227 | ) |
| Financing Activities: | | | | | | | |
| Proceeds from issuance of common stock | 54,606 |
| | 28,452 |
| | 114,701 |
| | 58,469 |
|
| Repurchases of common stock | (209,970 | ) | | (117,044 | ) | | (415,475 | ) | | (475,160 | ) |
| Excess tax benefits from stock plans | — |
| | 47 |
| | 1,846 |
| | 1,031 |
|
| Dividends paid | — |
| | — |
| | (68,781 | ) | | (62,807 | ) |
| Distribution to noncontrolling interest | — |
| | — |
| | (857 | ) | | (85 | ) |
| Net cash from financing activities | (155,364 | ) | | (88,545 | ) | | (368,566 | ) | | (478,552 | ) |
| Effect of exchange rate changes on cash and cash equivalents | (20,932 | ) | | (16,174 | ) | | (36,347 | ) | | (16,827 | ) |
| (Decrease) increase in cash and cash equivalents | (17,044 | ) | | 19,919 |
| | 41,576 |
| | (257,172 | ) |
| Cash and cash equivalents at beginning of period | 985,727 |
| | 970,561 |
| | 927,107 |
| | 1,247,652 |
|
| Cash and cash equivalents at end of period | $ | 968,683 |
| | $ | 990,480 |
| | $ | 968,683 |
| | $ | 990,480 |
|
| Taxes paid: | | | | | | | |
| Income taxes | $ | 60,374 |
| | $ | 61,899 |
| | $ | 190,024 |
| | $ | 195,358 |
|
|
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| 03-November-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 September 30, 2015: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 441,097 |
| | 56,818 |
| | 24,681 |
| | 648,096 |
| | 158,011 |
| | 234,334 |
| | 88,295 |
| | — |
| | 1,651,332 |
|
| Transfers between geographic areas | 29,168 |
| | 3,492 |
| | 4,991 |
| | 5,206 |
| | 6,289 |
| | 11,125 |
| | 5,459 |
| | (65,730 | ) | | — |
|
| Total revenues | $ | 470,265 |
| | 60,310 |
| | 29,672 |
| | 653,302 |
| | 164,300 |
| | 245,459 |
| | 93,754 |
| | (65,730 | ) | | 1,651,332 |
|
Net revenues1 | $ | 232,912 |
| | 32,713 |
| | 17,115 |
| | 135,488 |
| | 45,970 |
| | 77,250 |
| | 28,533 |
| | — |
| | 569,981 |
|
| Operating income | $ | 65,389 |
| | 11,905 |
| | 5,007 |
| | 69,690 |
| | 18,574 |
| | 14,188 |
| | 7,140 |
| | — |
| | 191,893 |
|
| Identifiable assets | $ | 1,385,157 |
| | 108,644 |
| | 56,987 |
| | 472,189 |
| | 140,206 |
| | 427,053 |
| | 229,670 |
| | 7,112 |
| | 2,827,018 |
|
| Capital expenditures | $ | 6,196 |
| | 658 |
| | 222 |
| | 711 |
| | 291 |
| | 1,223 |
| | 245 |
| | — |
| | 9,546 |
|
| Depreciation and amortization | $ | 7,439 |
| | 363 |
| | 268 |
| | 1,336 |
| | 531 |
| | 1,120 |
| | 418 |
| | — |
| | 11,475 |
|
| Equity | $ | 1,144,466 |
| | 64,384 |
| | 35,890 |
| | 250,362 |
| | 103,457 |
| | 148,287 |
| | 126,321 |
| | (30,975 | ) | | 1,842,192 |
|
| Three months ended September 30, 2014: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 438,882 |
| | 55,209 |
| | 22,962 |
| | 670,763 |
| | 174,839 |
| | 259,960 |
| | 82,490 |
| | — |
| | 1,705,105 |
|
| Transfers between geographic areas | 24,847 |
| | 2,867 |
| | 5,194 |
| | 6,116 |
| | 6,814 |
| | 9,783 |
| | 5,171 |
| | (60,792 | ) | | — |
|
| Total revenues | $ | 463,729 |
| | 58,076 |
| | 28,156 |
| | 676,879 |
| | 181,653 |
|
| 269,743 |
| | 87,661 |
| | (60,792 | ) | | 1,705,105 |
|
Net revenues1 | $ | 215,320 |
| | 27,323 |
| | 16,792 |
| | 106,225 |
| | 42,023 |
| | 80,024 |
| | 25,549 |
| | — |
| | 513,256 |
|
| Operating income | $ | 68,972 |
| | 7,779 |
| | 4,890 |
| | 45,153 |
| | 12,073 |
| | 14,921 |
| | 5,343 |
| | — |
| | 159,131 |
|
| Identifiable assets | $ | 1,333,124 |
| | 113,621 |
| | 53,939 |
| | 580,260 |
| | 152,236 |
| | 476,799 |
| | 204,378 |
| | 11,696 |
| | 2,926,053 |
|
| Capital expenditures | $ | 3,171 |
| | 361 |
| | 369 |
| | 1,648 |
| | 1,247 |
| | 1,016 |
| | 443 |
| | — |
| | 8,255 |
|
| Depreciation and amortization | $ | 8,369 |
| | 303 |
| | 226 |
| | 1,493 |
| | 523 |
| | 1,391 |
| | 436 |
| | — |
| | 12,741 |
|
| Equity | $ | 1,074,837 |
| | 75,848 |
| | 34,218 |
| | 341,092 |
| | 111,556 |
| | 185,332 |
| | 114,229 |
| | (33,182 | ) | | 1,903,930 |
|
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.
|
| | |
| 03-November-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 |
| Nine months ended September 30, 2015: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 1,334,900 |
| | 170,351 |
| | 73,076 |
| | 1,943,441 |
| | 524,254 |
| | 716,373 |
| | 258,016 |
| | — |
| | 5,020,411 |
|
| Transfers between geographic areas | 89,329 |
| | 9,991 |
| | 15,171 |
| | 16,330 |
| | 18,677 |
| | 31,478 |
| | 15,638 |
| | (196,614 | ) | | — |
|
| Total revenues | $ | 1,424,229 |
| | 180,342 |
| | 88,247 |
| | 1,959,771 |
| | 542,931 |
| | 747,851 |
| | 273,654 |
| | (196,614 | ) | | 5,020,411 |
|
Net revenues1 | $ | 681,868 |
| | 93,967 |
| | 51,159 |
| | 377,384 |
| | 135,114 |
| | 229,745 |
| | 82,371 |
| | — |
| | 1,651,608 |
|
| Operating income | $ | 193,117 |
| | 33,433 |
| | 15,804 |
| | 187,343 |
| | 48,594 |
| | 44,846 |
| | 20,355 |
| | — |
| | 543,492 |
|
| Identifiable assets | $ | 1,385,157 |
| | 108,644 |
| | 56,987 |
| | 472,189 |
| | 140,206 |
| | 427,053 |
| | 229,670 |
| | 7,112 |
| | 2,827,018 |
|
| Capital expenditures | $ | 20,232 |
| | 2,602 |
| | 1,408 |
| | 1,476 |
| | 1,599 |
| | 3,292 |
| | 1,294 |
| | — |
| | 31,903 |
|
| Depreciation and amortization | $ | 22,171 |
| | 965 |
| | 784 |
| | 4,114 |
| | 1,609 |
| | 3,542 |
| | 1,239 |
| | — |
| | 34,424 |
|
| Equity | $ | 1,144,466 |
| | 64,384 |
| | 35,890 |
| | 250,362 |
| | 103,457 |
| | 148,287 |
| | 126,321 |
| | (30,975 | ) | | 1,842,192 |
|
| Nine months ended September 30, 2014: | | | | | | | | | | | | | | | | | |
| Revenues from unaffiliated customers | $ | 1,256,075 |
| | 162,136 |
| | 65,594 |
| | 1,863,077 |
| | 468,152 |
| | 744,466 |
| | 236,391 |
| | — |
| | 4,795,891 |
|
| Transfers between geographic areas | 67,266 |
| | 7,829 |
| | 15,965 |
| | 17,170 |
| | 20,072 |
| | 28,931 |
| | 14,638 |
| | (171,871 | ) | | — |
|
| Total revenues | $ | 1,323,341 |
| | 169,965 |
| | 81,559 |
| | 1,880,247 |
| | 488,224 |
| | 773,397 |
| | 251,029 |
| | (171,871 | ) | | 4,795,891 |
|
Net revenues1 | $ | 607,508 |
| | 79,017 |
| | 48,797 |
| | 297,117 |
| | 121,261 |
| | 234,313 |
| | 74,543 |
| | — |
| | 1,462,556 |
|
| Operating income | $ | 180,650 |
| | 23,155 |
| | 14,425 |
| | 124,528 |
| | 36,371 |
| | 41,515 |
| | 16,133 |
| | — |
| | 436,777 |
|
| Identifiable assets | $ | 1,333,124 |
| | 113,621 |
| | 53,939 |
| | 580,260 |
| | 152,236 |
| | 476,799 |
| | 204,378 |
| | 11,696 |
| | 2,926,053 |
|
| Capital expenditures | $ | 12,646 |
| | 1,047 |
| | 841 |
| | 5,691 |
| | 2,221 |
| | 3,116 |
| | 1,088 |
| | — |
| | 26,650 |
|
| Depreciation and amortization | $ | 24,100 |
| | 879 |
| | 665 |
| | 4,471 |
| | 1,739 |
| | 4,376 |
| | 1,310 |
| | — |
| | 37,540 |
|
| Equity | $ | 1,074,837 |
| | 75,848 |
| | 34,218 |
| | 341,092 |
| | 111,556 |
| | 185,332 |
| | 114,229 |
| | (33,182 | ) | | 1,903,930 |
|
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.
|
| | |
| 03-November-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 | | Nine months ended |
| | September 30, | | September 30, |
| (in thousands) | 2015 | | 2014 | | 2015 | | 2014 |
| Total revenues | $ | 1,651,332 |
| | $ | 1,705,105 |
| | $ | 5,020,411 |
| | $ | 4,795,891 |
|
| Expenses: | | | | | | | |
| Airfreight services | 464,161 |
| | 516,969 |
| | 1,484,150 |
| | 1,503,064 |
|
| Ocean freight and ocean services | 416,075 |
| | 475,460 |
| | 1,294,887 |
| | 1,266,551 |
|
| Customs brokerage and other services | 201,115 |
| | 199,420 |
| | 589,766 |
| | 563,720 |
|
| Net revenues | $ | 569,981 |
| | $ | 513,256 |
| | $ | 1,651,608 |
| | $ | 1,462,556 |
|
|
| | |
| 03-November-2015 | Expeditors International of Washington, Inc. | Page 8 of 8 |
