Expeditors International of Washington (EXPD) 8-K Results of Operations and Financial Condition

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	Geoffrey Buscher
	President and Chief Executive Officer	Senior Vice President and Chief Financial Officer	Director - Investor Relations
	(206) 674-3433	(206) 674-3412	(206) 892-4510

FOR IMMEDIATE RELEASE

EXPEDITORS REPORTS SECOND QUARTER 2019 EPS OF $0.88

SEATTLE, WASHINGTON - August 6, 2019, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced second quarter 2019 financial results including the following highlights compared to the same quarter of 2018:

• Diluted Net Earnings Attributable to Shareholders per share (EPS¹) increased 11% to $0.88

• Net Earnings Attributable to Shareholders increased 9% to $153 million

• Operating Income increased 5% to $192 million

• Revenues increased 4% to $2 billion

• Net Revenues² increased 3% to $662 million

• Airfreight tonnage volume decreased 5% and ocean container volume increased 2%

“During the quarter and throughout the first half of the year, we have shown our ability to manage uncertainty and deliver profitable growth,” said Jeffrey S. Musser, President and Chief Executive Officer. “While our air freight business was challenged as a result of a slowdown in export volumes out of North Asia and the United States, we continued to enhance our efforts on growing these two important markets as a focus of our key strategic initiatives. Additionally, the current climate of geopolitical volatility has created uncertainty, but our organization continues to show that the strength of our global presence and customer focus has never been more important in our relentless drive to grow while maintaining our profitability.

“In addition, we continued to grow our customs brokerage and import services, Transcon, and warehouse and distribution services by winning business with new customers as well as from existing accounts. For a second consecutive quarter, we increased the volume of ocean freight containers that we handled and boosted net revenue per container. Except for comparatively soft demand in certain air markets, this was a strong quarter and our people performed at their highest level.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We grew net revenues ahead of overhead expenses, even as we continue to make important investments in people and systems, such as our integrated order management, quoting, booking, visibility, security, reporting and analytics platform. While we boosted operating efficiency (operating income as a percentage of net revenue) compared to the first quarter, it remained below our target 30%, due again to lower air freight net revenues. Our effective tax rate declined from 25.8% in the second quarter of 2018 to 23.6% in 2019, largely due to the benefit from Foreign-derived intangible income deductions and a state tax refund."

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 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 2019 Earnings Release, August 6, 2019

Financial Highlights for the three and six months ended June 30, 2019 and 2018 (Unaudited)

(in 000's of US dollars except per share data)

	Three months ended June 30,					Six months ended June 30,
	2019		2018		% Change	2019		2018		% Change
Revenues	$	2,035,579	$	1,957,559	4%	$	4,055,630	$	3,811,821	6%
Net revenues1	$	661,695	$	642,546	3%	$	1,315,809	$	1,278,384	3%
Operating income	$	192,201	$	183,584	5%	$	379,802	$	376,402	1%
Net earnings attributable to shareholders	$	153,149	$	140,605	9%	$	292,848	$	276,297	6%
Diluted earnings attributable to    shareholders per share	$	0.88	$	0.79	11%	$	1.67	$	1.54	8%
Basic earnings attributable to shareholders    per share	$	0.90	$	0.80	13%	$	1.71	$	1.58	8%
Diluted weighted average shares    outstanding		174,466		178,603			174,953		179,120
Basic weighted average shares outstanding		171,003		174,754			171,425		175,324

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.

The three and six months ended June 30, 2019 include the effect of changing our presentation of certain import services from a net to a gross basis and our revised presentation of destination services, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change net revenues.

During the three and six months ended June 30, 2019, we repurchased 2.6 million and 3.2 million shares of common stock at an average price of $73.03 and $73.47 per share, respectively. During the three and six months 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.

	Employee Full-time Equivalents June 30, 2019
	2019		2018
North America		6,893		6,414
Europe		3,439		3,205
North Asia		2,532		2,616
South Asia		1,661		1,604
Middle East, Africa and India		1,550		1,466
Latin America		873		801
Information Systems		922		892
Corporate		379		351
Total		18,249		17,349

	Second quarter year-over-year percentage increase (decrease) in:
	Airfreight kilos	Ocean freight FEU
2019
April	(4)%		5	%
May	(2)%		—	%
June	(7)%		—	%
Quarter	(5)%		2	%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 9, 2019 will be considered in management's 8-K “Responses to Selected Questions.”

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 our ability to extract value from investment in key systems; the impact of the 2017 Tax Act and related interpretations on our effective tax rate; 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, 2019			December 31, 2018
Assets:
Current Assets:
Cash and cash equivalents	$	1,082,650		$	923,735
Accounts receivable, less allowance for doubtful accounts of    $13,391 at June 30, 2019 and $15,345 at December 31, 2018		1,382,070			1,581,530
Deferred contract costs		143,651			159,510
Other		103,089			70,041
Total current assets		2,711,460			2,734,816
Property and equipment, less accumulated depreciation and    amortization of $465,983 at June 30, 2019 and $446,977 at    December 31, 2018		499,233			504,105
Operating lease right-of-use assets		377,423			—
Goodwill		7,927			7,927
Deferred federal and state income taxes, net		33,617			40,465
Other assets, net		17,330			27,246
Total assets	$	3,646,990		$	3,314,559
Liabilities:
Current Liabilities:
Accounts payable	$	811,144		$	902,259
Accrued expenses, primarily salaries and related costs		217,463			215,813
Contract liabilities		169,055			190,343
Current portion of operating lease liabilities		61,267			—
Federal, state and foreign income taxes		19,891			18,424
Total current liabilities		1,278,820			1,326,839
Noncurrent portion of operating lease liabilities		315,776			—
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued		—			—
Common stock, par value $0.01 per share. Issued and    outstanding: 170,040 shares at June 30, 2019 and 171,582    shares at December 31, 2018		1,701			1,716
Additional paid-in capital		12,433			1,896
Retained earnings		2,140,935			2,088,707
Accumulated other comprehensive loss		(104,096	)		(105,481	)
Total shareholders’ equity		2,050,973			1,986,838
Noncontrolling interest		1,421			882
Total equity		2,052,394			1,987,720
Total liabilities and equity	$	3,646,990		$	3,314,559

06-August-2019 Expeditors International of Washington, Inc. Page 3 of 7

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Revenues:
Airfreight services	$	741,577	$	801,761	$	1,456,478	$	1,532,988
Ocean freight and ocean services		543,809		530,008		1,112,450		1,050,891
Customs brokerage and other services		750,193		625,790		1,486,702		1,227,942
Total revenues		2,035,579		1,957,559		4,055,630		3,811,821
Operating Expenses:
Airfreight services		542,639		593,325		1,051,849		1,106,829
Ocean freight and ocean services		390,299		385,156		810,630		764,574
Customs brokerage and other services		440,946		336,532		877,342		662,034
Salaries and related		356,351		350,948		713,261		690,843
Rent and occupancy		40,897		38,071		82,420		74,984
Depreciation and amortization		12,677		13,576		26,070		27,498
Selling and promotion		11,643		10,788		22,719		21,753
Other		47,926		45,579		91,537		86,904
Total operating expenses		1,843,378		1,773,975		3,675,828		3,435,419
Operating income		192,201		183,584		379,802		376,402
Other Income (Expense):
Interest income		6,516		5,153		12,622		9,467
Other, net		2,262		1,167		3,927		1,791
Other income (expense), net		8,778		6,320		16,549		11,258
Earnings before income taxes		200,979		189,904		396,351		387,660
Income tax expense		47,449		48,958		102,710		110,514
Net earnings		153,530		140,946		293,641		277,146
Less net earnings attributable to the noncontrolling    interest		381		341		793		849
Net earnings attributable to shareholders	$	153,149	$	140,605	$	292,848	$	276,297
Diluted earnings attributable to shareholders per share	$	0.88	$	0.79	$	1.67	$	1.54
Basic earnings attributable to shareholders per share	$	0.90	$	0.80	$	1.71	$	1.58
Weighted average diluted shares outstanding		174,466		178,603		174,953		179,120
Weighted average basic shares outstanding		171,003		174,754		171,425		175,324

06-August-2019 Expeditors International of Washington, Inc. Page 4 of 7

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Operating Activities:
Net earnings	$	153,530		$	140,946		$	293,641		$	277,146
Adjustments to reconcile net earnings to net cash from    operating activities:
Provisions for losses (recoveries) on accounts receivable		1,584			528			(304	)		263
Deferred income tax expense		3,697			3,235			5,805			6,088
Stock compensation expense		23,824			18,002			37,206			29,269
Depreciation and amortization		12,677			13,576			26,070			27,498
Other, net		(29	)		56			160			104
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(28,187	)		(46,876	)		202,290			53,771
Increase (decrease) in accounts payable and accrued    expenses		39,900			58,075			(82,383	)		12,231
(Increase) decrease in deferred contract costs		(13,010	)		(20,019	)		18,249			(16,612	)
Increase (decrease) in contract liabilities		13,003			20,294			(23,722	)		12,893
(Decrease) increase in income taxes payable, net		(49,606	)		(38,059	)		(32,613	)		(18,550	)
(Decrease) increase in other, net		(1,676	)		(1,202	)		791			(68	)
Net cash from operating activities		155,707			148,556			445,190			384,033
Investing Activities:
Purchase of property and equipment		(12,987	)		(12,113	)		(22,422	)		(25,909	)
Other, net		1,038			(1,564	)		1,293			(1,995	)
Net cash from investing activities		(11,949	)		(13,677	)		(21,129	)		(27,904	)
Financing Activities:
Proceeds from issuance of common stock		32,287			95,363			59,477			121,760
Repurchases of common stock		(190,589	)		(235,572	)		(234,923	)		(407,932	)
Dividends Paid		(85,184	)		(79,180	)		(85,184	)		(79,180	)
Payments for taxes related to net share settlement of equity    awards		(6,674	)		(3,215	)		(6,674	)		(3,215	)
Net cash from financing activities		(250,160	)		(222,604	)		(267,304	)		(368,567	)
Effect of exchange rate changes on cash and cash equivalents		(377	)		(24,322	)		2,158			(17,807	)
Change in cash and cash equivalents		(106,779	)		(112,047	)		158,915			(30,245	)
Cash and cash equivalents at beginning of period		1,189,429			1,132,901			923,735			1,051,099
Cash and cash equivalents at end of period	$	1,082,650		$	1,020,854		$	1,082,650		$	1,020,854
Taxes Paid:
Income taxes	$	97,715		$	85,612		$	134,968		$	124,131

06-August-2019 Expeditors International of Washington, Inc. Page 5 of 7

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
For the three months ended June 30, 2019:
Revenues2	$	681,076		85,537		38,757		621,951		181,380		319,331		108,311		(764	)		2,035,579
Net revenues1	$	294,983		35,201		16,714		134,397		48,893		98,655		33,222		(370	)		661,695
Operating income	$	87,923		8,858		2,346		64,453		15,513		9,315		3,799		(6	)		192,201
Identifiable assets at period end	$	1,819,718		176,151		73,197		580,311		193,771		581,518		229,692		(7,368	)		3,646,990
Capital expenditures	$	8,985		768		145		300		428		1,914		447		—			12,987
Depreciation and amortization	$	7,687		459		380		1,384		496		1,775		496		—			12,677
Equity	$	1,303,381		83,417		31,014		282,192		107,229		168,570		109,790		(33,199	)		2,052,394
For the three months ended June 30, 2018:
Revenues2	$	598,076		84,244		42,618		680,227		179,528		330,775		114,005		(71,914	)		1,957,559
Net revenues1	$	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 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	$	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

	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the six months ended June 30, 2019:
Revenues2	$	1,340,859		176,947		72,936		1,254,804		358,559		632,021		220,986		(1,482	)		4,055,630
Net revenues1	$	587,412		70,370		31,777		268,604		96,262		195,450		66,394		(460	)		1,315,809
Operating income	$	161,936		19,818		4,982		130,233		31,420		23,267		8,160		(14	)		379,802
Identifiable assets at period end	$	1,819,718		176,151		73,197		580,311		193,771		581,518		229,692		(7,368	)		3,646,990
Capital expenditures	$	15,900		996		238		644		604		2,896		1,144		—			22,422
Depreciation and amortization	$	15,909		926		812		2,791		1,032		3,606		994		—			26,070
Equity	$	1,303,381		83,417		31,014		282,192		107,229		168,570		109,790		(33,199	)		2,052,394
For the six months ended June 30, 2018:
Revenues2	$	1,161,826		164,331		78,727		1,316,816		354,678		650,755		224,542		(139,854	)		3,811,821
Net revenues1	$	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

¹Net revenues are a non-GAAP measure calculated as revenues less directly related operating expenses attributable to the Company's principal services. The Company's management believes that net revenues are a better measure than total revenues when evaluating the Company's operating segment performance since total revenues earned as a freight consolidator include the carriers' charges for carrying the shipment, whereas revenues earned in other capacities include primarily the commissions and fees earned by the Company. Net revenue is one of the Company's primary operational and financial measures and demonstrates the Company's ability to concentrate and leverage purchasing power through effective consolidation of shipments from customers utilizing a variety of transportation carriers and optimal routings.

06-August-2019 Expeditors International of Washington, Inc. Page 6 of 7

²In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. Prior year segment revenues have not been revised. The change in presentation had no impact on consolidated or segment net revenues or operating income. The impact on reported segment revenues and expenses was immaterial.

The following table presents the calculation of net revenues:

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Revenues	$	2,035,579	$	1,957,559	$	4,055,630	$	3,811,821
Expenses:
Airfreight services		542,639		593,325		1,051,849		1,106,829
Ocean freight and ocean services		390,299		385,156		810,630		764,574
Customs brokerage and other services		440,946		336,532		877,342		662,034
Net revenues	$	661,695	$	642,546	$	1,315,809	$	1,278,384

06-August-2019 Expeditors International of Washington, Inc. Page 7 of 7