EARNINGS RELEASE
By: | Expeditors International of Washington, Inc. 1015 Third Avenue, Suite 1200 Seattle, Washington 98104 | 
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| CONTACT: | R. Jordan Gates Chief Financial Officer (206) 674-3427 | FOR IMMEDIATE RELEASE |
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EXPEDITORS ANNOUNCES $.50 PER SHARE THIRD QUARTER NET EARNINGS
SEATTLE, WASHINGTON — November 1, 2005, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced record quarterly net earnings of $55,769,000 for the third quarter of 2005, compared with $43,107,000 for the same quarter of 2004, an increase of 29%. Net revenues for the third quarter of 2005 increased 17% to $281,925,000 as compared with $240,358,000 reported for the third quarter of 2004. Total revenues and operating income were $1,046,442,000 and $85,800,000 in 2005 compared with $897,188,000 and $67,420,000 for the same quarter of 2004, an increase of 17% and 27%, respectively. Diluted net earnings per share for the third quarter were $.50 as compared with $.39 for the same quarter in 2004, an increase of 28%. The company also reported that same store net revenues and operating income increased 17% and 27%, respectively for the third quarter of 2005 when compared with 2004.
For the nine months ended September 30, 2005, net earnings rose to $138,157,000 from $112,563,000 in 2004, an increase of 23%. Net revenues for the nine months increased to $763,268,000 from $665,077,000 for 2004, up 15%. Total revenues and operating income for the nine months were $2,799,605,000 and $211,662,000 in 2005 compared with $2,382,704,000 and $174,474,000 for the same period in 2004, increases of 17% and 21%, respectively. Diluted net earnings per share for the first three quarters of 2005 were $1.24 as compared with $1.02 for the same period of 2004, an increase of 22%. Same store net revenues and operating income increased 14% and 21%, respectively, for the nine months ended September 30, 2005, when compared with the same period of 2004.
“Execution and efficiency were the tale of this record quarter,” said Peter J. Rose, Chairman and Chief Executive Officer. “While we continued to experience significant volume increases in air and ocean freight during the third quarter of 2005, our real profitability increases came from our ongoing efforts to increase productivity in the delivery of our services,” Rose continued.
“This has not been a one year story. If you go back to the third quarter of 2001, you would see that Expeditors has basically doubled in size in the last four years. That is a real accomplishment, particularly when you look at the magnitude of the numbers. And, we didn’t really purchase this growth—we did it ourselves, organically. A stable environment fosters consistent, reliable and focused customer service by eliminating the distractions that employees in merged companies feel. As always, we’d like to formally acknowledge the contribution of each employee to these third quarter results. Once again, you really made it happen,” Rose concluded.
Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 164 full-service offices, 54 satellite locations and 7 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.
Expeditors International of Washington, Inc.
Financial Highlights
Three months and Nine months ended
September 30, 2005 and 2004
Unaudited
(in 000’s of US dollars except share data)
| | Three months ended September 30, | | | | Nine months ended September 30, | | | |
| | 2005 | | 2004 | | % Inc. | | 2005 | | 2004 | | % Inc. | |
Revenues | | $ | 1,046,422 | | $ | 897,188 | | 17 | % | $ | 2,799,605 | | $ | 2,382,704 | | 17 | % |
Net revenues | | $ | 281,925 | | $ | 240,358 | | 17 | % | $ | 763,268 | | $ | 665,077 | | 15 | % |
Operating income | | $ | 85,800 | | $ | 67,420 | | 27 | % | $ | 211,662 | | $ | 174,474 | | 21 | % |
Net earnings | | $ | 55,769 | | $ | 43,107 | | 29 | % | $ | 138,157 | | $ | 112,563 | | 23 | % |
Diluted earnings per share | | $ | .50 | | $ | .39 | | 28 | % | $ | 1.24 | | $ | 1.02 | | 22 | % |
Basic earnings per share | | $ | .52 | | $ | .41 | | 27 | % | $ | 1.29 | | $ | 1.07 | | 21 | % |
Diluted weighted average shares outstanding | | 111,390,617 | | 111,206,168 | | | | 111,595,346 | | 110,480,254 | | | |
Basic weighted average shares outstanding | | 106,868,687 | | 106,255,293 | | | | 106,791,564 | | 105,663,441 | | | |
Offices Opened during the 3rd Quarter of 2005
FAR EAST | | EUROPE |
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Laem Chabang, Thailand+ | | Aberdeen, Scotland* |
Ningbo, China* | | |
Surabaya, Indonesia* | | |
Johor Bahru, Malaysia* | | |
Da Nang, Vietnam+ | | |
*Full-service offices. Surabaya and Johor Bahru went from being satellites to full-service offices.
+Satellite offices.
Investors may submit written questions via e-mail to: investor@expeditors.com
Or by fax to: (206) 674-3459
Questions received by the end of business on November 2, 2005 will be considered in management’s 8-K “Responses to Selected Questions” expected to be filed on our about November 14, 2005.
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