EXPDTR INT WSHTON : Expeditors Reports Record Second Quarter 2010 EPS of $.42 Per Share 1
08/02/2010 | 09:10am US/Eastern
Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced record net earnings attributable to shareholders of
$90,318,000 for the second quarter of 2010, as compared with $54,070,000
for the same quarter of 2009, an increase of 67%. Net revenues for the
second quarter of 2010 increased 27% to $418,858,000as compared
with $330,047,000 reported for the second quarter of 2009. Total
revenues and operating income were $1,516,770,000 and $138,496,000 in
2010, as compared with $895,360,000 and $86,927,000 for the same quarter
of 2009, increases of 69% and 59%, respectively. Diluted net earnings
attributable to shareholders per share for the second quarter were $.42,
as compared with $.25 for the same quarter in 2009, an increase of 68%.
For the six months ended June 30, 2010, net earnings attributable to
shareholders was $151,565,000, as compared with $113,330,000 in 2009, an
increase of 34%. Net revenues for the six months increased to
$780,681,000 from $666,562,000 for 2009, up 17%. Total revenues and
operating income for the six months were $2,717,879,000 and $239,037,000
in 2010, as compared with $1,808,045,000 and $178,401,000 for the same
period in 2009, increases of 50% and 34%, respectively. Diluted net
earnings attributable to shareholders per share for the first two
quarters of 2010 were $.70, as compared with $.52 for the same period of
2009, an increase of 35%.
?The ultimate testament to the strength of this quarter might be that
when the numbers were finalized, we'd actually managed to surprise
ourselves by a couple of cents,? said Peter J. Rose, Chairman and Chief
Executive Officer. ?Having the opportunity to add value to the
supply-chains of successful companies is what adds value to Expeditors.
We were somewhat awed by the strength that we saw in our customers'
supply chains this quarter and we're obviously very grateful they chose
to work with us. It was impressive that airfreight tonnage and ocean
freight container count this quarter were up 54% and 26%, respectively,
compared with the second quarter of 2009. The fact that this quarter's
net revenue was actually 5% higher than second quarter 2008 levels was
particularly reassuring. While it's much too soon to extrapolate this
quarter's results over the remainder of 2010, we think operating above
second quarter 2008 levels is a positive development,? Rose went on to
?Our philosophy these last several years has been to try to not do
anything stupid. We simply did what we've always done; focusing on
improving customer service; taking market share by adding new customers;
taking care of our people by not doing lay-offs; and making ourselves
more productive through continued process improvement efforts. Boring
consistency is what we do best,? Rose continued. ?Some may point to
?lower yields,' or the $.01 to $.02 per share1 benefit coming
from foreign exchange gains and a somewhat lower tax rate, but those
factors aren't the main thrust of what happened during the second
quarter of 2010. The main story this quarter was the outstanding job,
from both a productivity and customer service perspective, that our
people did navigating the myriad market challenges required to manage
those incredibly large freight volumes our customers entrusted to us.
We're grateful to our employees for their unfailing efforts, and to our
customers for the confidence they've shown by trusting us with their
business,? Rose concluded.
Expeditors is a global logistics company headquartered in Seattle,
Washington. The company employs trained professionals in 183
full-service offices, 65 satellite locations and 2 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.
1 Diluted earnings attributable to shareholders per share.
NOTE: See Disclaimer on Forward-Looking Statements on the following page
of this release.
Expeditors International of Washington, Inc.
Three months and Six months ended
June 30, 2010 and 2009
(in 000's of US dollars except share data)
Three Months Ended June 30,
Six Months Ended June 30,
Net earnings attributable to shareholders
Diluted earnings attributable to shareholders
Basic earnings attributable to shareholders
Diluted weighted average shares outstanding
Basic weighted average shares outstanding
Percentage increases in same store net revenues and operating income
were approximately the same as amounts reported above.
During the second quarter of 2010, the Company opened two full-service
offices: 1) in Oslo, Norway (formerly an agent location); and 2)
Zhongshan, People's Republic of China (formerly a satellite of Shenzhen,
People's Republic of China).
Questions received by the end of business on August 6, 2010 will be
considered in management's 8-K ?Responses to Selected Questions?
expected to be filed on or about August 13, 2010.
Disclaimer on Forward-Looking
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 economic trends, improving business climate, positive trends in
freight volumes, ability to improve productivity and acquire market
share, and changes in foreign exchange rates. 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 prices, political changes, regulatory changes or the
unpredictable acts of competitors and other risks, risk factors and
uncertainties detailed in our Annual and Quarterly Reports filed with
the Securities and Exchange Commission.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
Cash and cash equivalents
Accounts receivable, net
Deferred Federal and state income taxes
Other current assets
Total current assets
Property and equipment, net
Other intangibles, net
Other assets, net
Liabilities and Equity
Accrued expenses, primarily salaries and related costs
Federal, state and foreign income taxes
Total current liabilities
Deferred Federal and state income taxes
Commitments and contingencies
Preferred stock; none issued
Common stock, par value $.01 per share; issued and outstanding
212,018,342 shares at June 30, 2010 and 212,025,494 shares at
December 31, 2009