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EXHIBIT 99
AT THE COMPANY [Eagle USA Airfreight, Inc. Letterhead]
Douglas A. Seckel Michael D. Slaughter
Chief Financial Officer Director SEC Reporting/
Investor Relations
(281) 442-1188 (281) 442-1188
JANUARY 22, 1998
EAGLE USA AIRFREIGHT, INC. REPORTS
RECORD FIRST QUARTER REVENUES AND EARNINGS
HOUSTON, TEXAS, JANUARY 22, 1998 - EAGLE USA AIRFREIGHT, INC. (EUSA) today
announced record revenues and earnings for the first quarter ended December 31,
1997, primarily driven by the expansion of its core freight forwarding business
and increases in the number of shipments and the total weight of cargo shipped.
Revenues for the first quarter increased 44 percent to $97.6 million from $67.6
million in the same period of fiscal 1997. Net income for the quarter totaled
$5.9 million, a 30 percent increase over $4.5 million in the first quarter of
fiscal 1997. Diluted earnings per share of $0.31 for the first quarter of
fiscal 1998 increased 29 percent from $0.24 in the same period of fiscal 1997.
During the first quarter of fiscal 1998 the Company implemented FAS 128
"Earnings Per Share" and has, accordingly, restated fiscal 1997 EPS amounts.
First quarter fiscal 1998 gross profit margin was 45.1 percent of revenues
versus 43.7 percent in the first quarter of fiscal 1997. The primary reasons
for the margin improvement were increased airfreight shipping volumes, as the
number of shipments increased 28 percent over the first quarter of fiscal 1997
and the total weight of cargo shipped increased 41 percent over first quarter
of fiscal 1997, and the continued expansion of the Company's local pick-up and
delivery operations, which enabled the Company to capture margins previously
paid to third parties.
During the first quarter of fiscal 1998, operating income margin was 9.6
percent of revenues, as the Company continued to make investments in personnel
to deepen the staff of its domestic, international, and local delivery
operating units. Operating income margin for the first quarter of fiscal 1997
was 10.7 percent of revenues.
"We recognized excellent results for the first quarter of fiscal 1998,
especially in light of very challenging comparisons to fiscal 1997 first
quarter results, in which we recorded a 66 percent increase in revenues over
the fiscal 1996 first quarter" said James R. Crane, Chairman and Chief
Executive Officer.
Eagle USA Airfreight's dedication to providing superior flexibility and fewer
shipping restrictions on a price competitive basis has made it a leading
provider of airfreight forwarding and other transportation and logistics
services. Its network of 60 terminals features state-of-the-art information
systems to maximize cargo management efficiency and customer satisfaction. The
Company's shares are traded on the Nasdaq National Market under the symbol
"EUSA."
For more information about EUSA:
Via fax dial 1-800-PRO-INFO and enter the ticker symbol - EUSA.
Visit EUSA on the Internet at http://www.eagleusa.com
Contact EUSA Investor Relations via the Internet at mslaught@eagleusa.com
Or by telephone at 281/442-1188, Michael Slaughter, Director of Investor
Relations.
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EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
Three Months
Ended December 31,
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1997 1996
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Revenues $ 97,645 $ 67,586
Cost of transportation 53,607 38,071
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44,038 29,515
Personnel costs 23,255 14,288
Other selling, general and admin. costs 11,434 8,029
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Operating income 9,349 7,198
Interest income 305 273
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Income before provision for income taxes 9,654 7,471
Provision for income taxes 3,764 2,957
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Net income $ 5,890 $ 4,514
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Basic earnings per share $ 0.32 $ 0.26
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Diluted earnings per share $ 0.31 $ 0.24
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Basic weighted average common shares outstanding 18,259 17,527
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Diluted weighted average common and
common equivalent shares outstanding 19,049 18,468
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EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
December 31, September 30,
1997 1997
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ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 28,853 $ 27,786
Accounts receivable, net 51,598 54,662
Prepaid expenses and other 3,320 4,557
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Total current assets 83,771 87,005
Property and equipment, net 14,628 14,090
Other assets 5,527 5,776
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Total assets $ 103,926 $ 106,871
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LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued transportation $ 6,057 $ 13,819
Other current liabilities 10,570 12,548
Total current liabilities 16,627 26,367
Long term indebtedness -- --
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Shareholders' equity 87,299 80,504
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 103,926 $ 106,871
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