RANCHO DOMINGUEZ, Calif., Dec. 4, 2001 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for the three- and nine-month periods ended October 31, 2001, using accounting principles generally accepted in the U.S. (U.S. GAAP).
Reflecting the continuing impact of the global economic downturn, net revenues for the 2002 fiscal third quarter were $79.6 million, compared with $82.8 million a year ago. Gross revenues totaled $235.6 million versus $240.8 million in the corresponding quarter last year. Additionally, foreign exchange rates negatively impacted revenues for the current quarter versus the comparable period in the prior year. On a constant currency basis using exchange rates in effect for the fiscal 2001 third quarter, net revenues would have been $86.0 million, reflecting a growth rate of 4 percent over the year-ago period, and gross revenues would have advanced 3 percent to $248.2 million.
Net income rose to $5.9 million for the 2002 fiscal third quarter from $4.8 million reported in the same quarter a year ago. Diluted earnings per share for the current third quarter was $0.23, based on 25.3 million shares outstanding, versus $0.24 a year earlier, based on 19.7 million shares outstanding. The current quarter earnings per share reflects the significant increase in the number of shares outstanding related to the U.S. initial public offering, which became effective in November 2000. The prior year third quarter net income includes a non-recurring non-cash charge of $2.3 million for a final distribution from a stock award compensation plan, representing $0.12 per diluted share.
"The events of September 11 exacerbated an already challenging business environment," said Roger I. MacFarlane, UTi Worldwide's chief executive officer. "We are particularly proud of our employees who met this challenge head-on and created solutions on behalf of our clients, exemplifying our continued focus on customer service. In some cases, for example, we transported goods by chartering flights and in others, by shipping freight originally designated as airfreight via ocean, while preserving maximum yields under the circumstances.
"We are also pleased with how we continued to manage costs during the quarter which showed only a mild seasonal pick-up in net revenues from the 2002 second fiscal quarter. Compared with the immediately preceding quarter, operating expenses were down, resulting in an improved operating profit margin, excluding amortization of goodwill, of 130 basis points to 13.8 percent from 12.5 percent," said MacFarlane.
"We are further encouraged with the strong growth experienced in the Asia-Pacific lanes during the quarter compared with the same period a year ago, even with the Continental acquisition included in two months of the baseline. Moreover, October results fared better than expected, in part, because we did not actually experience the squeeze on yields as we had originally anticipated."
Net revenues for the first nine months of fiscal 2002 increased 4 percent to $232.8 million from $223.9 million reported for the same period a year ago. Gross revenues totaled $670.0 million, a 4 percent improvement from $642.8 million last year.
Net income for the fiscal 2002 nine-month period advanced 29 percent to $15.4 million from $11.9 million in the year-earlier period, which included the $2.3 million stock compensation charge. Diluted earnings per share for the first nine months of fiscal 2002 was $0.60, compared with $0.61, for the corresponding fiscal 2001 period, again reflecting the significant increase in the number of shares outstanding as a result of the U.S. initial public offering in November 2000.
"Even though the third quarter ended on an encouraging note, we continue to be cautious about the future, given reduced airfreight capacity and its potential impact on yields. We are diligently pursuing additional business with new and existing customers and closely managing expenses for the fourth quarter, which includes the month of January, historically our slowest month," MacFarlane said.
As of October 31, 2001, UTi Worldwide reported total cash and cash equivalents, net of bank lines of credit and short-term bank borrowings, of $65 million. Through the first nine months of fiscal 2002, the company generated $23 million in free cash flow, primarily by managing collections on receivables and controlling capital expenditures. "Our ability to generate free cash flow, particularly in difficult market conditions, underscores UTi's commitment to sound financial discipline," added MacFarlane.
About UTi Worldwide
UTi Worldwide Inc. is a global, non-asset based supply chain management business providing supply chain logistics services and planning and optimization solutions. The company's services include freight forwarding, customs brokerage and warehousing services such as the coordination of shipping and the storage of raw materials, supplies, components and finished goods. Through its supply chain planning and optimization services, the company assists clients in designing and implementing systems that improve the predictability and visibility and reduce the overall cost of their supply chains. The company has a global and diverse business customer base ranging from large multinational enterprises to smaller local businesses. For more information about the company visit its Web site at www.go2uti.com.
Investor Conference Call
UTi management will host an investor conference call on Tuesday, December 4, 2001, at 6:00 a.m. PST (9:00 a.m. EST) to review the company's financials and operations for the third quarter 2002. The call will be open to all interested investors through a live, listen-only audio broadcast available over the Internet at www.go2uti.com and www.companyboardroom.com. For those who are not able to listen to the live broadcast, the call will be archived for two weeks through 6:00 p.m. PST, Tuesday, December 18, 2001 at both Web sites. A telephonic playback of the conference call also will be available from approximately 8:00 a.m. PST, Tuesday, December 4, through 6:00 p.m. PST, Tuesday, December 11, by calling 800-633-8284 (domestic) or 858-812-6440 (international) and using reservation number 19914903.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its strategies to realize operating margin gains, the company's ability to benefit from on-going cost control efforts, the company's focus on gaining market share, and any other statements, which are not historical facts. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including general economic, political and market conditions, increased competition, integration risks associated with acquisitions, the effects of changes in foreign exchange rates, increases in the company's effective tax rates, industry consolidation making it more difficult to compete against larger companies, risks of international operations, the success and effects of new strategies, disruptions caused by conflicts, wars and terrorism, shortages in available cargo and container space and capacity constraints and changes by carriers in scheduling, frequency of services, cost increases and other factors not in the company's control, and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, actual results may vary materially from those indicated. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
UTi Worldwide Inc.
Condensed Consolidated Income Statements
(Prepared in Accordance with U.S.
Generally Accepted Accounting Principles)
(US$000s, except share and per share amounts)
Three Months Ended Nine Months Ended
October 31, October 31,
2001 2000 2001 2000
------------ ----------- ----------- -----------
(Unaudited)
Gross revenue:
Airfreight
forwarding $ 129,941 $ 135,465 $ 368,394 $ 354,279
Ocean freight
forwarding 66,578 67,730 192,718 186,235
Customs brokerage 14,395 16,670 42,894 46,193
Other 24,691 20,901 65,988 56,044
----------- ----------- ----------- -----------
Total gross
revenue 235,605 240,766 669,994 642,751
=========== =========== =========== ===========
Net revenue:
Airfreight
forwarding 36,955 39,415 110,404 106,747
Ocean freight
forwarding 15,415 14,908 43,386 38,991
Customs brokerage 14,015 15,698 41,562 43,516
Other 13,252 12,764 37,434 34,664
----------- ----------- ----------- -----------
Total net revenue 79,637 82,785 232,786 223,918
----------- ----------- ----------- -----------
Staff costs 39,571 42,320 118,864 115,404
Depreciation 2,338 2,461 6,993 6,716
Amortization
of goodwill 1,507 1,323 4,165 3,200
Other operating
expenses 26,745 28,682 79,499 79,473
----------- ----------- ----------- -----------
Operating income 9,476 7,999 23,265 19,125
Interest expense,
net (297) (856) (949) (2,516)
(Losses)/gains on
foreign exchange (369) 237 (460) 870
----------- ----------- ----------- -----------
Pretax income 8,810 7,380 21,856 17,479
Income tax expense (2,524) (2,252) (5,676) (4,831)
----------- ----------- ----------- -----------
Income before
minority interests 6,286 5,128 16,180 12,648
Minority interests (355) (305) (820) (705)
----------- ----------- ----------- -----------
Net income $ 5,931 $ 4,823 $ 15,360 $ 11,943
=========== =========== =========== ===========
Basic earnings per
ordinary share $ 0.24 $ 0.25 $ 0.62 $ 0.68
Diluted earnings
per ordinary share $ 0.23 $ 0.24 $ 0.60 $ 0.61
Number of
weighted-average
diluted shares
outstanding used
for per share
calculations:
Basic shares 24,962,176 19,188,004 24,951,762 17,561,163
Diluted shares 25,292,731 19,693,224 25,442,559 19,615,792
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(Prepared in Accordance with U. S.
Generally Accepted Accounting Principles)
(US$000s)
October 31, January 31,
2001 2001
--------- ---------
(Unaudited)
ASSETS
Cash and cash equivalents $ 83,397 $ 98,372
Trade receivables, net 192,198 212,860
Other current assets 20,627 23,551
--------- ---------
Total current assets 296,222 334,783
Property, plant and equipment, net 30,177 34,952
Goodwill, net 70,161 68,043
Investments 181 209
Deferred income tax assets 1,671 1,469
Other non-current assets 3,995 4,297
--------- ---------
Total assets $ 402,407 $ 443,753
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 8,618 $ 32,609
Current portion of capital
lease obligations 1,961 2,307
Short-term borrowings 10,160 11,570
Trade payables and other
accrued liabilities 169,712 188,902
Income taxes payable 4,307 3,747
Deferred income tax liabilities 453 213
--------- ---------
Total current liabilities 195,211 239,348
Long-term bank borrowings 2,866 3,159
Capital lease obligations 6,916 8,672
Deferred income tax liabilities 2,141 2,377
Pension obligations 672 682
--------- ---------
Total long-term liabilities 12,595 14,890
Minority interests 2,486 2,027
Commitments and contingencies
Shareholders' equity:
Common stock 206,974 206,626
Retained earnings 32,812 19,376
Accumulated other
comprehensive loss (47,671) (38,514)
--------- ---------
Total shareholders' equity 192,115 187,488
--------- ---------
Total liabilities and
shareholders' equity $ 402,407 $ 443,753
========= =========
UTi Worldwide Inc.
Consolidated Statements of Cash Flows
(Prepared in Accordance with U.S.
Generally Accepted Accounting Principles)
(US$000s)
Nine Months Ended
October 31,
2001 2000
--------- ---------
(Unaudited)
OPERATING ACTIVITIES:
Net income $ 15,360 $ 11,943
Adjustments to reconcile net
income to net cash
provided by operating activities:
Stock compensation costs 143 3,731
Depreciation 6,993 6,716
Amortization of goodwill 4,165 3,200
Deferred income taxes 280 449
Gain on disposal of property,
plant and equipment (195) (166)
Gain on disposal of
other investments -- (312)
Other 765 510
Changes in operating assets
and liabilities:
Decrease/(increase) in trade
receivables and other
current assets 11,347 (68,361)
(Decrease)/increase in
trade payables and other
accrued liabilities (9,234) 61,697
--------- ---------
Net cash provided by
operating activities 29,624 19,407
--------- ---------
INVESTING ACTIVITIES:
Purchases of property, plant
and equipment (5,335) (10,358)
Proceeds from disposal of
property, plant and equipment 726 486
Acquisition of subsidiaries (7,067) (23,016)
Other 63 638
--------- ---------
Net cash used in investing
activities (11,613) (32,250)
--------- ---------
FINANCING ACTIVITIES:
(Decrease)/increase in bank
lines of credit (23,991) 25,825
(Decrease)/increase in
short-term borrowings (1,055) 3,246
Long-term borrowings - advanced 135 358
Long-term borrowings - repaid (225) (183)
Capital lease obligations - repaid (856) (1,558)
Decrease in minority interests (472) (206)
Dividends paid (1,924) (3,118)
Proceeds from issuance of
ordinary shares 203 --
--------- ---------
Net cash (used in)/provided
by financing activities (28,185) 24,364
--------- ---------
Net (decrease)/increase in cash
and cash equivalents (10,174) 11,521
Cash and cash equivalents at
beginning of period 98,372 20,760
Effect of foreign exchange
rate changes (4,801) (2,951)
--------- ---------
Cash and cash equivalents at
end of period $ 83,397 $ 29,330
========= =========
UTi Worldwide Inc.
Segment Reporting
(Prepared in Accordance with U.S.
Generally Accepted Accounting Principles)
(US$000s)
Three Months Ended October 31, 2001
-----------------------------------
(Unaudited)
Europe Americas AsiaPacific
------ -------- -----------
Gross revenue from
external customers $ 68,743 $ 65,066 $ 67,451
=========== =========== ===========
Net revenue $ 15,995 $ 24,629 $ 16,339
Staff costs 8,832 14,820 6,649
Depreciation 641 644 428
Amortization of
goodwill 148 924 364
Other operating
expenses 4,572 8,043 4,697
----------- ----------- -----------
Operating income $ 1,802 $ 198 $ 4,201
=========== =========== ===========
Africa Corporate Total
------ --------- -----
Gross revenue from
external customers $ 34,345 $ -- $ 235,605
=========== =========== ===========
Net revenue $ 22,674 $ -- $ 79,637
Staff costs 8,241 1,029 39,571
Depreciation 552 73 2,338
Amortization of
goodwill 71 -- 1,507
Other operating
expenses 9,480 (47) 26,745
----------- ----------- -----------
Operating income $ 4,330 $ (1,055) 9,476
=========== ===========
Interest expense, net (297)
Losses on foreign
exchange (369)
-----------
Pretax income 8,810
Income tax expense (2,524)
-----------
Income before minority
interests $ 6,286
===========
Three Months Ended October 31, 2000
-----------------------------------
(Unaudited)
Europe Americas AsiaPacific
------ -------- -----------
Gross revenue from
external customers $ 71,496 $ 81,587 $ 52,828
=========== =========== ===========
Net revenue $ 16,126 $ 28,082 $ 13,142
Staff costs 8,060 16,281 5,278
Depreciation 720 609 323
Amortization of
goodwill 162 872 202
Other operating
expenses 5,151 9,448 3,609
----------- ----------- -----------
Operating income $ 2,033 $ 872 $ 3,730
=========== =========== ===========
Africa Corporate Total
------ --------- -----
Gross revenue from
external customers $ 34,855 $ -- $ 240,766
=========== =========== ===========
Net revenue $ 25,435 $ -- $ 82,785
Staff costs 12,352 349 42,320
Depreciation 792 17 2,461
Amortization of
goodwill 87 -- 1,323
Other operating
expenses 10,983 (509) 28,682
----------- ------------ -----------
Operating income $ 1,221 $ 143 7,999
=========== ===========
Interest expense, net (856)
Gains on foreign
exchange 237
-----------
Pretax income 7,380
Income tax expense (2,252)
-----------
Income before
minority interests $ 5,128
===========
UTi Worldwide Inc.
Segment Reporting
(Prepared in Accordance with U.S.
Generally Accepted Accounting Principles)
(US$000s)
Nine Months Ended October 31, 2001
----------------------------------
(Unaudited)
Europe Americas AsiaPacific
------ -------- -----------
Gross revenue from
external customers $ 195,338 $ 199,807 $ 178,026
=========== =========== ===========
Net revenue $ 46,188 $ 72,607 $ 45,149
Staff costs 25,995 43,912 19,520
Depreciation 1,795 1,902 1,213
Amortization of
goodwill 482 2,485 971
Other operating
expenses 12,449 22,589 13,607
----------- ----------- -----------
Operating income $ 5,467 $ 1,719 $ 9,838
=========== =========== ===========
Africa Corporate Total
------ --------- -----
Gross revenue from
external customers $ 96,823 $ -- $ 669,994
=========== =========== ===========
Net revenue $ 68,842 $ -- $ 232,786
Staff costs 26,276 3,161 118,864
Depreciation 1,835 248 6,993
Amortization of
goodwill 227 -- 4,165
Other operating
expenses 30,873 (19) 79,499
----------- ----------- -----------
Operating income $ 9,631 $ (3,390) 23,265
=========== ===========
Interest expense, net (949)
Losses on foreign
exchange (460)
-----------
Pretax income 21,856
Income tax expense (5,676)
-----------
Income before
minority interests $ 16,180
===========
Nine Months Ended October 31, 2000
----------------------------------
(Unaudited)
Europe Americas AsiaPacific
------ -------- -----------
Gross revenue from
external customers $ 209,156 $ 213,724 $ 121,986
=========== =========== ===========
Net revenue $ 46,357 $ 73,751 $ 30,500
Staff costs 24,315 44,037 13,359
Depreciation 1,805 1,603 734
Amortization of
goodwill 462 2,065 424
Other operating
expenses 14,566 23,450 9,136
----------- ----------- -----------
Operating income $ 5,209 $ 2,596 $ 6,847
=========== =========== ===========
Africa Corporate Total
------ --------- -----
Gross revenue from
external customers $ 97,885 $ -- $ 642,751
=========== =========== ===========
Net revenue $ 73,310 $ -- $ 223,918
Staff costs 32,760 933 115,404
Depreciation 2,382 192 6,716
Amortization of
goodwill 249 -- 3,200
Other operating
expenses 32,298 23 79,473
----------- ----------- -----------
Operating income $ 5,621 $ (1,148) 19,125
=========== ============
Interest expense, net (2,516)
Gains on foreign
exchange 870
-----------
Pretax income 17,479
Income tax expense (4,831)
-----------
Income before
minority interests $ 12,648
===========