UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2004
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 0-13468
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
(Exact name of registrant as specified in its charter)
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Washington |
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91-1069248 |
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(State or other jurisdiction of |
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(IRS Employer Identification Number) |
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1015 Third Avenue, 12th Floor, Seattle, Washington |
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98104 |
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(Address of principal executive offices) |
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(Zip Code) |
(206) 674-3400
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
At August 3, 2004, the number of shares outstanding of the issuer’s Common Stock was 105,936,841.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
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June 30, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
372,459 |
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$ |
295,832 |
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Short-term investments |
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81 |
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82 |
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Accounts receivable, less allowance for doubtful accounts of $13,092 at June 30, 2004 and $11,978 at December 31, 2003 |
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526,418 |
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452,551 |
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Deferred Federal and state income taxes |
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2,504 |
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2,548 |
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Other current assets |
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26,327 |
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17,941 |
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Total current assets |
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927,789 |
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768,954 |
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Property and equipment, less accumulated depreciation and amortization of $150,252 at June 30, 2004 and $140,066 at December 31, 2003 |
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248,346 |
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241,702 |
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Goodwill, less accumulated amortization of $765 at June 30, 2004 and December 31, 2003 |
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7,774 |
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7,774 |
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Other intangibles, net |
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10,330 |
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11,163 |
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Other assets, net |
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12,343 |
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13,440 |
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$ |
1,206,582 |
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$ |
1,043,033 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Short-term debt |
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— |
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217 |
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Accounts payable |
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370,111 |
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301,122 |
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Accrued expenses, primarily salaries and related costs |
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88,546 |
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74,905 |
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Federal, state and foreign income taxes |
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12,769 |
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10,141 |
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Total current liabilities |
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471,426 |
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386,385 |
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Deferred Federal and state income taxes |
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17,500 |
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7,923 |
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Minority Interest |
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5,009 |
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3,224 |
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Shareholders’ equity: |
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Preferred stock, par value $.01 per share |
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Authorized 2,000,000 shares; none issued |
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— |
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— |
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Common stock, par value $.01 per share |
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Authorized 320,000,000 shares; issued and outstanding 105,896,616 shares at June 30, 2004, and 105,056,454 shares at December 31, 2003 |
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1,059 |
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1,051 |
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Additional paid-in capital |
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35,231 |
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25,491 |
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Retained earnings |
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675,030 |
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617,216 |
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Accumulated other comprehensive income |
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1,327 |
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1,743 |
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Total shareholders’ equity |
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712,647 |
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645,501 |
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Commitments and contingencies |
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$ |
1,206,582 |
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$ |
1,043,033 |
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See accompanying notes to condensed consolidated financial statements.
Certain 2003 amounts have been reclassified to conform to the 2004 presentation.
2
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except share data)
(Unaudited)
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Three months ended |
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Six months ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues: |
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Airfreight |
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$ |
368,618 |
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$ |
287,514 |
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$ |
693,477 |
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$ |
554,328 |
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Ocean freight and ocean services |
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290,109 |
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231,979 |
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523,155 |
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422,324 |
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Customs brokerage and other services |
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139,939 |
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106,220 |
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268,884 |
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205,407 |
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Total revenues |
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798,666 |
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625,713 |
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1,485,516 |
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1,182,059 |
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Operating expenses: |
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Airfreight consolidation |
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281,729 |
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219,738 |
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528,381 |
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421,078 |
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Ocean freight consolidation |
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239,313 |
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186,648 |
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426,132 |
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334,501 |
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Customs brokerage and other services |
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55,401 |
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41,066 |
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106,284 |
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78,193 |
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Salaries and related costs |
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117,931 |
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98,014 |
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228,972 |
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191,554 |
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Rent and occupancy costs |
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