Attached files
file | filename |
---|---|
8-K - FORM 8-K - UTi WORLDWIDE INC | c22109e8vk.htm |
Exhibit 99.1
Contact:
Jeff Misakian
Vice President, Investor Relations
(562) 552-9417
jmisakian@go2uti.com
Jeff Misakian
Vice President, Investor Relations
(562) 552-9417
jmisakian@go2uti.com
UTi WORLDWIDE REPORTS FISCAL 2012
SECOND QUARTER RESULTS
SECOND QUARTER RESULTS
Long Beach, Calif., September 1, 2011 UTi Worldwide Inc. (NASDAQ: UTIW) today reported
financial results for its fiscal 2012 second quarter ended July 31, 2011.
Fiscal Second Quarter 2012 vs. 2011 Results:
| Revenues were $1,297.4 million, an increase of 13 percent from $1,151.1 million. |
| Net revenues (revenues minus purchased transportation costs) were $443.4 million, an
increase of 17 percent from $379.1 million. |
| Net income attributable to UTi Worldwide Inc. was $22.9 million, or $0.22 per diluted
share, in the second quarter of fiscal 2012. |
| Severance costs totaled $3.5 million, or $2.4 million after taxes, in the second quarter
of fiscal 2012. |
| Excluding these costs, adjusted net income attributable to UTi Worldwide Inc. was $25.3
million, or $0.24 per diluted share, compared to $18.9 million, or $0.19 per diluted share. |
Eric W. Kirchner, chief executive officer, said, We are pleased to report solid results for
the second quarter, despite the macroeconomic headwinds and slowing freight environment. Net
revenues in the fiscal 2012 second quarter were higher primarily due to currency effects, greater
net revenue per unit of cargo in freight forwarding and increased activity in contract logistics
and distribution. Ocean freight volumes increased in the second quarter while airfreight volumes
declined when compared to very high levels last year. We were pleased to see continued growth in
many of our contract logistics operations with new business wins in our Africa and Asia Pacific
regions, as well as an improvement in our U.S. distribution business. Operating expenses grew less
than net revenues in the second quarter, and our efforts to control costs have helped productivity.
As a result, our operating income increased over last year. These results reflect the efforts of a
UTi team that has worked tirelessly toward greater efficiency as we continue to develop and execute
supply chain solutions for clients. The strength of any organization
resides principally with its employees, and UTi is certainly no exception. We will continue to
focus on growing the business and improving margins while we transform for the future.
Revenues increased 12.7 percent in the 2012 fiscal second quarter compared to the prior-year
second quarter primarily due to currency effects, increased ocean volumes, higher fuel surcharges,
which the company passes through to clients, and greater contract logistics and distribution
activity. These factors were partially offset by slightly lower volumes in airfreight. Net revenues
increased 17.0 percent in the second quarter due to currency, higher net revenue per unit of cargo
in freight forwarding and the increased contract logistics and distribution activity. Organic net
revenue, which excludes the impact of currency, increased 8.4 percent compared to the second
quarter last year.
Operating expenses less purchased transportation costs were $403.7 million in the second
quarter of fiscal 2012. Excluding severance costs of $3.5 million, adjusted operating expenses less
purchased transportation costs in the fiscal 2012 second quarter were $400.2 million, an increase
of 15.9 percent compared to the same period last year. Currency trends also impacted expenses.
Organic growth in adjusted operating expenses less purchased transportation costs in the fiscal
2012 second quarter was 7.4 percent compared to the same period last year.
The company reported operating income in the fiscal 2012 second quarter of $39.7 million.
Excluding severance costs, adjusted operating income was $43.2 million, which represented 9.7
percent of net revenues. This compares to operating income in the year-ago second quarter of $33.9
million, or 8.9 percent of net revenues. The adjusted operating income and margin increases
primarily reflect the higher net revenue per unit of cargo in freight forwarding and increased
activity in contract logistics compared to the same period last year.
Investor Conference Call:
UTi management will host an investor conference call today, September 1, 2011, at 8:00 a.m.
PDT (11:00 a.m. EDT) to review the companys financial results for the fiscal 2012 second quarter.
Investment professionals are invited to participate in the live call by dialing 877-941-8609
(domestic) or 480-629-9692 (international) using conference ID 4466939. The call will be open to
all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and
www.earnings.com. For those who are not available to listen to the live broadcast, the call will be
archived for one year at both Web sites. A telephonic playback of the conference call also will be
available from approximately 11:00 a.m. PDT, today, through September 4, 2011, by calling
800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4466939.
Page 2 of 19
About UTi Worldwide:
UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions
company providing air and ocean freight forwarding, contract logistics, customs brokerage,
distribution, inbound logistics, truckload brokerage and other supply chain management services.
The company serves a large and diverse base of global and local companies, including clients
operating in industries with unique supply chain requirements such as the pharmaceutical, retail,
apparel, chemical, automotive and technology industries. The company seeks to use its global
network, proprietary information technology systems, relationships with transportation providers,
and expertise in outsourced logistics services to deliver competitive advantage to each of its
clients supply chains.
Use of Non-GAAP Financial Information:
This press release includes non-GAAP financial measures within the meaning of the Securities
and Exchange Commission rules. UTi believes that meaningful analysis of its financial performance
requires an understanding of the factors underlying that performance and the companys judgments
about the likelihood that particular factors will repeat. Short-term patterns and long-term trends
may be obscured by the impact of certain items. For this reason, the company has referred to
operating expenses less purchased transportation costs and adjusted operating expenses less
purchased transportation costs, which are adjusted to exclude
severance and exit costs, and to adjusted net
income and adjusted operating income, which are adjusted to exclude
severance and exit costs. The company
also has referred to organic revenue and net revenue growth, which are adjusted to exclude the
impact of currency fluctuations and, where applicable, acquisitions between comparable periods; and
to organic, adjusted operating expenses less purchased transportation costs, which are adjusted to
exclude severance and exit costs and the impact of currency fluctuations and, where applicable, acquisitions
between comparable periods. This information is among the information the company uses as a basis
for evaluating company performance on a comparable basis over time, allocating resources and
planning and forecasting of future periods. The company has also provided this information because
such adjustments make performance information more comparable to prior disclosures for investors,
and may enhance the ability of investors to analyze the companys performance. This information is
not intended to be considered in isolation or as a substitute for, or superior to, the relevant
measures prepared and presented in accordance with U.S. GAAP. For more information on these
non-GAAP financial measures, please see the tables at the end of this press release.
Page 3 of 19
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 forward-looking statements may include, but are not
limited to, the statements about growing the business, improving margins and transforming
operations, the outlook for
the future and other statements not of an historical nature. Many important factors may cause
the companys actual results to differ materially from those discussed in any such forward-looking
statements, including but not limited to the economic volatility that has materially impacted trade
volumes, transportation capacity, pricing dynamics and overall margins; the financial condition of
many of the companys customers; planned or unplanned consequences of the companys sales
initiatives, procurement initiatives and business transformation efforts; the demand for the
companys services; the impact and related costs associated with reorganization efforts and/or cost
reduction measures undertaken by the company; increased competition; the impact of volatile fuel
costs and changes in foreign exchange rates; changes in the companys effective tax rates; industry
consolidation making it more difficult to compete against larger companies; general economic,
political and market conditions, including those in Africa, Asia and EMENA; work stoppages or
slowdowns or other material interruptions in transportation services; risks of international
operations; risks associated with, and costs and expenses the company will incur as a result of,
the ongoing publicly announced U.S. Department of Justice and other governmental investigations
into the pricing practices of the air cargo transportation industry and other similar or related
investigations and lawsuits; disruptions caused by epidemics, natural disasters, conflicts, wars
and terrorism; and the other risks and uncertainties described in Risk Factors and
Forward-looking Statements in the companys Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q and described in the companys other filings with the Securities and Exchange Commission.
Although UTi believes that the assumptions underlying the forward-looking statements are
reasonable, any of the assumptions could prove inaccurate and, therefore, the company cannot assure
the reader that the results contemplated in forward-looking statements will be realized in the
timeframe anticipated or at all. 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 UTis objectives or plans will be
achieved. Accordingly, investors are cautioned not to place undue reliance on the companys
forward-looking statements. UTi undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise,
except as required by law.
# # #
(Tables Follow)
Page 4 of 19
UTi Worldwide Inc.
Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
Three months ended July 31, | Six months ended July 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues: |
||||||||||||||||
Airfreight forwarding |
$ | 465,672 | $ | 419,439 | $ | 904,701 | $ | 787,131 | ||||||||
Ocean freight forwarding |
320,696 | 304,626 | 602,274 | 576,458 | ||||||||||||
Customs brokerage |
33,082 | 26,611 | 63,335 | 52,046 | ||||||||||||
Contract logistics |
212,845 | 179,299 | 411,824 | 356,309 | ||||||||||||
Distribution |
139,741 | 121,219 | 269,094 | 238,593 | ||||||||||||
Other |
125,322 | 99,896 | 244,835 | 195,709 | ||||||||||||
Total revenues |
1,297,358 | 1,151,090 | 2,496,063 | 2,206,246 | ||||||||||||
Operating expenses: |
||||||||||||||||
Purchased transportation costs: |
||||||||||||||||
Airfreight forwarding |
365,880 | 336,119 | 716,057 | 629,661 | ||||||||||||
Ocean freight forwarding |
266,618 | 257,782 | 500,853 | 484,968 | ||||||||||||
Customs brokerage |
1,206 | 2,248 | 2,760 | 3,818 | ||||||||||||
Contract logistics |
53,055 | 41,563 | 98,208 | 77,286 | ||||||||||||
Distribution |
95,391 | 83,921 | 183,250 | 163,038 | ||||||||||||
Other |
71,812 | 50,387 | 140,962 | 102,657 | ||||||||||||
Staff costs |
243,135 | 204,519 | 476,480 | 411,520 | ||||||||||||
Depreciation |
11,792 | 11,263 | 24,233 | 22,675 | ||||||||||||
Amortization of intangible assets |
4,773 | 3,163 | 8,228 | 6,507 | ||||||||||||
Severance and exit costs |
3,483 | | 8,332 | | ||||||||||||
Other operating expenses |
140,472 | 126,224 | 278,166 | 251,263 | ||||||||||||
Total operating expenses |
1,257,617 | 1,117,189 | 2,437,529 | 2,153,393 | ||||||||||||
Operating income |
39,741 | 33,901 | 58,534 | 52,853 | ||||||||||||
Interest expense, net |
(3,867 | ) | (3,926 | ) | (8,091 | ) | (8,045 | ) | ||||||||
Other income, net |
223 | 171 | 399 | 1,015 | ||||||||||||
Pretax income |
36,097 | 30,146 | 50,842 | 45,823 | ||||||||||||
Provision for income taxes |
11,259 | 9,319 | 15,494 | 14,255 | ||||||||||||
Net income |
24,838 | 20,827 | 35,348 | 31,568 | ||||||||||||
Net income attributable to noncontrolling interests |
1,965 | 1,958 | 3,732 | 2,625 | ||||||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 22,873 | $ | 18,869 | $ | 31,616 | $ | 28,943 | ||||||||
Basic earnings per common share attributable to
UTi Worldwide Inc. common shareholders |
$ | 0.22 | $ | 0.19 | $ | 0.31 | $ | 0.29 | ||||||||
Diluted earnings per common share attributable to
UTi Worldwide Inc. common shareholders |
$ | 0.22 | $ | 0.19 | $ | 0.31 | $ | 0.28 | ||||||||
Number of weighted-average common shares
outstanding used for per share calculations |
||||||||||||||||
Basic shares |
102,660,019 | 100,631,550 | 102,389,521 | 100,360,009 | ||||||||||||
Diluted shares |
103,580,890 | 101,707,067 | 103,462,353 | 101,702,457 |
Page 5 of 19
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Condensed Consolidated Balance Sheets
(in thousands)
July 31, | January 31, | |||||||
2011 | 2011 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 315,778 | $ | 326,795 | ||||
Trade receivables, net |
1,049,586 | 879,842 | ||||||
Deferred income taxes |
16,066 | 20,400 | ||||||
Other current assets |
147,633 | 131,295 | ||||||
Total current assets |
1,529,063 | 1,358,332 | ||||||
Property, plant and equipment, net |
208,944 | 175,700 | ||||||
Goodwill and other intangible assets, net |
546,468 | 515,578 | ||||||
Investments |
1,165 | 1,102 | ||||||
Deferred income taxes |
32,753 | 29,526 | ||||||
Other non-current assets |
40,560 | 32,467 | ||||||
Total assets |
$ | 2,358,953 | $ | 2,112,705 | ||||
Liabilities & Equity |
||||||||
Bank lines of credit |
$ | 103,893 | $ | 170,732 | ||||
Short-term borrowings |
5,298 | 7,238 | ||||||
Current portion of long-term borrowings |
12,142 | 34,232 | ||||||
Current portion of capital lease obligations |
16,647 | 16,232 | ||||||
Trade payables and other accrued liabilities |
928,041 | 822,887 | ||||||
Income taxes payable |
6,902 | 8,521 | ||||||
Deferred income taxes |
3,949 | 3,881 | ||||||
Total current liabilities |
1,076,872 | 1,063,723 | ||||||
Long-term borrowings, excluding current portion |
225,420 | 61,230 | ||||||
Capital lease obligations, excluding current portion |
17,811 | 19,158 | ||||||
Deferred income taxes |
30,259 | 30,487 | ||||||
Other non-current liabilities |
38,327 | 37,943 | ||||||
Commitments and contingencies |
||||||||
UTi Worldwide Inc. shareholders equity: |
||||||||
Common stock |
491,490 | 484,884 | ||||||
Retained earnings |
462,758 | 437,307 | ||||||
Accumulated other comprehensive loss |
(1,490 | ) | (35,116 | ) | ||||
Total UTi Worldwide Inc. shareholders equity |
952,758 | 887,075 | ||||||
Noncontrolling interests |
17,506 | 13,089 | ||||||
Total equity |
970,264 | 900,164 | ||||||
Total liabilities and equity |
$ | 2,358,953 | $ | 2,112,705 | ||||
Page 6 of 19
UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Condensed Consolidated Statements of Cash Flows
(in thousands)
Six months ended | ||||||||
July 31, | ||||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
Operating Activities: |
||||||||
Net income |
$ | 35,348 | $ | 31,568 | ||||
Adjustments to reconcile net income to net cash
used in operating activities: |
||||||||
Share-based compensation costs, net |
7,368 | 4,062 | ||||||
Depreciation |
24,233 | 22,675 | ||||||
Amortization of intangible assets |
8,228 | 6,507 | ||||||
Amortization of debt issuance costs |
1,531 | 1,448 | ||||||
Deferred income taxes |
1,650 | (1,464 | ) | |||||
Uncertain tax positions |
337 | 135 | ||||||
Excess tax benefit from share-based compensation |
(483 | ) | (61 | ) | ||||
Gain on disposal of property, plant and equipment |
(220 | ) | (123 | ) | ||||
Provision for doubtful accounts |
2,736 | 2,451 | ||||||
Other |
1,022 | 290 | ||||||
Net changes in operating assets and liabilities |
(87,748 | ) | (116,017 | ) | ||||
Net cash used in operating activities |
(5,998 | ) | (48,529 | ) | ||||
Investing Activities: |
||||||||
Purchases of property, plant and equipment |
(26,768 | ) | (15,118 | ) | ||||
Proceeds from disposal of property, plant and equipment |
2,685 | 797 | ||||||
Purchases of software and other intangible assets |
(15,085 | ) | (4,600 | ) | ||||
Net increase in other non-current assets |
(4,786 | ) | (2,435 | ) | ||||
Acquisitions and related payments |
| (3,449 | ) | |||||
Other |
(26 | ) | (160 | ) | ||||
Net cash used in investing activities |
(43,980 | ) | (24,965 | ) | ||||
Financing Activities: |
||||||||
Net
(repayments)/borrowings under bank lines of credit |
(72,520 | ) | 163,248 | |||||
Net
(decrease)/increase in short-term borrowings |
(2,333 | ) | 548 | |||||
Proceeds from issuance of long-term borrowings |
150,213 | 79 | ||||||
Repayment of long-term borrowings |
(34,595 | ) | (37,891 | ) | ||||
Debt issuance cost |
(2,153 | ) | | |||||
Repayment of capital lease obligations |
(10,099 | ) | (10,389 | ) | ||||
Contingent consideration paid |
(26 | ) | | |||||
Acquisition of noncontrolling interest |
(1,168 | ) | | |||||
Dividends paid to noncontrolling interests |
(157 | ) | (1,719 | ) | ||||
Ordinary shares settled under share-based compensation plans |
(1,800 | ) | | |||||
Proceeds from issuance of ordinary shares |
1,675 | 3,388 | ||||||
Excess tax benefit from share-based compensation |
483 | 61 | ||||||
Dividends paid |
(6,165 | ) | (6,106 | ) | ||||
Net cash provided by financing activities |
21,355 | 111,219 | ||||||
Effect of foreign exchange rate changes on cash and cash
equivalents |
17,606 | 3,516 | ||||||
Net (decrease)/increase in cash and cash equivalents |
(11,017 | ) | 41,241 | |||||
Cash and cash equivalents at beginning of period |
326,795 | 350,784 | ||||||
Cash and cash equivalents at end of period |
$ | 315,778 | $ | 392,025 | ||||
Page 7 of 19
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Segment Reporting
(in thousands)
(Unaudited)
Three months ended July 31, 2011 | ||||||||||||||||
Contract | ||||||||||||||||
Freight | Logistics and | |||||||||||||||
Forwarding | Distribution | Corporate | Total | |||||||||||||
Revenues |
$ | 901,752 | $ | 395,606 | $ | | $ | 1,297,358 | ||||||||
Purchased transportation costs |
694,662 | 159,300 | | 853,962 | ||||||||||||
Staff costs |
114,600 | 122,237 | 6,298 | 243,135 | ||||||||||||
Depreciation |
4,440 | 6,652 | 700 | 11,792 | ||||||||||||
Amortization of intangible assets |
1,125 | 2,958 | 690 | 4,773 | ||||||||||||
Severance and exit costs |
2,124 | 612 | 747 | 3,483 | ||||||||||||
Other operating expense |
50,986 | 85,066 | 4,420 | 140,472 | ||||||||||||
Total operating expenses |
867,937 | 376,825 | 12,855 | 1,257,617 | ||||||||||||
Operating income/(loss) |
$ | 33,815 | $ | 18,781 | $ | (12,855 | ) | 39,741 | ||||||||
Interest expense, net |
(3,867 | ) | ||||||||||||||
Other income, net |
223 | |||||||||||||||
Pretax income |
36,097 | |||||||||||||||
Provision for income taxes |
11,259 | |||||||||||||||
Net income |
24,838 | |||||||||||||||
Net income attributable to noncontrolling interests |
1,965 | |||||||||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 22,873 | ||||||||||||||
Page 8 of 19
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Segment Reporting
(in thousands)
(Unaudited)
Three months ended July 31, 2010 | ||||||||||||||||
Contract | ||||||||||||||||
Freight | Logistics and | |||||||||||||||
Forwarding | Distribution | Corporate | Total | |||||||||||||
Revenues |
$ | 808,990 | $ | 342,100 | $ | | $ | 1,151,090 | ||||||||
Purchased transportation costs |
635,147 | 136,873 | | 772,020 | ||||||||||||
Staff costs |
94,363 | 104,664 | 5,492 | 204,519 | ||||||||||||
Depreciation |
3,965 | 7,277 | 21 | 11,263 | ||||||||||||
Amortization of intangible assets |
1,000 | 2,163 | | 3,163 | ||||||||||||
Other operating expenses |
46,513 | 74,047 | 5,664 | 126,224 | ||||||||||||
Total operating expenses |
780,988 | 325,024 | 11,177 | 1,117,189 | ||||||||||||
Operating income/(loss) |
$ | 28,002 | $ | 17,076 | $ | (11,177 | ) | 33,901 | ||||||||
Interest expense, net |
(3,926 | ) | ||||||||||||||
Other income, net |
171 | |||||||||||||||
Pretax income |
30,146 | |||||||||||||||
Provision for income taxes |
9,319 | |||||||||||||||
Net income |
20,827 | |||||||||||||||
Net income attributable to noncontrolling interests |
1,958 | |||||||||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 18,869 | ||||||||||||||
Page 9 of 19
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Segment Reporting
(in thousands)
(Unaudited)
Six months ended July 31, 2011 | ||||||||||||||||
Contract | ||||||||||||||||
Freight | Logistics and | |||||||||||||||
Forwarding | Distribution | Corporate | Total | |||||||||||||
Revenues |
$ | 1,731,505 | $ | 764,558 | $ | | $ | 2,496,063 | ||||||||
Purchased transportation costs |
1,339,912 | 302,178 | | 1,642,090 | ||||||||||||
Staff costs |
224,267 | 238,950 | 13,263 | 476,480 | ||||||||||||
Depreciation |
8,828 | 14,046 | 1,359 | 24,233 | ||||||||||||
Amortization of intangible assets |
2,211 | 4,677 | 1,340 | 8,228 | ||||||||||||
Severance and exit costs |
4,097 | 3,488 | 747 | 8,332 | ||||||||||||
Other operating expense |
99,650 | 168,822 | 9,694 | 278,166 | ||||||||||||
Total operating expenses |
1,678,965 | 732,161 | 26,403 | 2,437,529 | ||||||||||||
Operating income/(loss) |
$ | 52,540 | $ | 32,397 | $ | (26,403 | ) | 58,534 | ||||||||
Interest expense, net |
(8,091 | ) | ||||||||||||||
Other income, net |
399 | |||||||||||||||
Pretax income |
50,842 | |||||||||||||||
Provision for income taxes |
15,494 | |||||||||||||||
Net income |
35,348 | |||||||||||||||
Net income attributable to noncontrolling interests |
3,732 | |||||||||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 31,616 | ||||||||||||||
Page 10 of 19
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Segment Reporting
(in thousands)
(Unaudited)
Six months ended July 31, 2010 | ||||||||||||||||
Contract | ||||||||||||||||
Freight | Logistics and | |||||||||||||||
Forwarding | Distribution | Corporate | Total | |||||||||||||
Revenues |
$ | 1,530,764 | $ | 675,482 | $ | | $ | 2,206,246 | ||||||||
Purchased transportation costs |
1,197,482 | 263,946 | | 1,461,428 | ||||||||||||
Staff costs |
188,753 | 211,641 | 11,126 | 411,520 | ||||||||||||
Depreciation |
7,797 | 14,505 | 373 | 22,675 | ||||||||||||
Amortization of intangible assets |
2,030 | 4,477 | | 6,507 | ||||||||||||
Other operating expenses |
92,883 | 147,071 | 11,309 | 251,263 | ||||||||||||
Total operating expenses |
1,488,945 | 641,640 | 22,808 | 2,153,393 | ||||||||||||
Operating income/(loss) |
$ | 41,819 | $ | 33,842 | $ | (22,808 | ) | 52,853 | ||||||||
Interest expense, net |
(8,045 | ) | ||||||||||||||
Other income, net |
1,015 | |||||||||||||||
Pretax income |
45,823 | |||||||||||||||
Provision for income taxes |
14,255 | |||||||||||||||
Net income |
31,568 | |||||||||||||||
Net income attributable to noncontrolling interests |
2,625 | |||||||||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 28,943 | ||||||||||||||
Page 11 of 19
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
Geographic Reporting
(in thousands)
(Unaudited)
Three months ended July 31, 2011 | ||||||||||||||||||||||||
Contract | ||||||||||||||||||||||||
Contract | Logistics | |||||||||||||||||||||||
Logistics | Freight | and | ||||||||||||||||||||||
Freight | and | Forwarding | Distribution | |||||||||||||||||||||
Forwarding | Distribution | Net | Net | Operating | Severance and | |||||||||||||||||||
Revenue | Revenue | Revenue | Revenue | Income/(Loss) | Exit Costs | |||||||||||||||||||
EMENA |
$ | 278,059 | $ | 58,595 | $ | 70,098 | $ | 38,810 | $ | 2,726 | $ | 2,189 | ||||||||||||
Americas |
203,413 | 217,147 | 50,778 | 101,979 | 11,950 | 299 | ||||||||||||||||||
Asia Pacific |
290,524 | 16,544 | 57,517 | 10,062 | 18,900 | 248 | ||||||||||||||||||
Africa |
129,756 | 103,320 | 28,697 | 85,455 | 19,020 | | ||||||||||||||||||
Corporate |
| | | | (12,855 | ) | 747 | |||||||||||||||||
Total |
$ | 901,752 | $ | 395,606 | $ | 207,090 | $ | 236,306 | $ | 39,741 | $ | 3,483 | ||||||||||||
Three months ended July 31, 2010 | ||||||||||||||||||||
Contract | ||||||||||||||||||||
Contract | Logistics | |||||||||||||||||||
Logistics | Freight | and | ||||||||||||||||||
Freight | and | Forwarding | Distribution | |||||||||||||||||
Forwarding | Distribution | Net | Net | Operating | ||||||||||||||||
Revenue | Revenue | Revenue | Revenue | Income/(Loss) | ||||||||||||||||
EMENA |
$ | 229,934 | $ | 62,889 | $ | 58,572 | $ | 35,289 | $ | 2,416 | ||||||||||
Americas |
165,538 | 182,852 | 44,319 | 94,454 | 10,353 | |||||||||||||||
Asia Pacific |
316,969 | 11,132 | 47,868 | 7,308 | 16,236 | |||||||||||||||
Africa |
96,549 | 85,227 | 23,084 | 68,176 | 16,073 | |||||||||||||||
Corporate |
| | | | (11,177 | ) | ||||||||||||||
Total |
$ | 808,990 | $ | 342,100 | $ | 173,843 | $ | 205,227 | $ | 33,901 | ||||||||||
Page 12 of 19
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
Geographic Reporting
(in thousands)
(Unaudited)
Six months ended July 31, 2011 | ||||||||||||||||||||||||
Contract | ||||||||||||||||||||||||
Logistics | ||||||||||||||||||||||||
Contract | Freight | and | ||||||||||||||||||||||
Freight | Logistics and | Forwarding | Distribution | |||||||||||||||||||||
Forwarding | Distribution | Net | Net | Operating | Severance and | |||||||||||||||||||
Revenue | Revenue | Revenue | Revenue | (Loss)/Income | Exit Costs | |||||||||||||||||||
EMENA |
$ | 551,890 | $ | 115,066 | $ | 135,068 | $ | 76,835 | $ | (845 | ) | $ | 5,987 | |||||||||||
Americas |
379,470 | 419,872 | 96,387 | 201,352 | 15,676 | 1,350 | ||||||||||||||||||
Asia Pacific |
548,112 | 29,590 | 105,688 | 18,912 | 32,704 | 248 | ||||||||||||||||||
Africa |
252,033 | 200,030 | 54,450 | 165,281 | 37,402 | | ||||||||||||||||||
Corporate |
| | | | (26,403 | ) | 747 | |||||||||||||||||
Total |
$ | 1,731,505 | $ | 764,558 | $ | 391,593 | $ | 462,380 | $ | 58,534 | $ | 8,332 | ||||||||||||
Six months ended July 31, 2010 | ||||||||||||||||||||
Contract | ||||||||||||||||||||
Contract | Logistics | |||||||||||||||||||
Logistics | Freight | and | ||||||||||||||||||
Freight | and | Forwarding | Distribution | |||||||||||||||||
Forwarding | Distribution | Net | Net | Operating | ||||||||||||||||
Revenue | Revenue | Revenue | Revenue | Income/(Loss) | ||||||||||||||||
EMENA |
$ | 460,328 | $ | 128,083 | $ | 117,385 | $ | 74,938 | $ | 5,203 | ||||||||||
Americas |
315,638 | 356,156 | 85,091 | 184,985 | 15,241 | |||||||||||||||
Asia Pacific |
572,031 | 20,319 | 86,605 | 13,928 | 25,121 | |||||||||||||||
Africa |
182,767 | 170,924 | 44,201 | 137,685 | 30,096 | |||||||||||||||
Corporate |
| | | | (22,808 | ) | ||||||||||||||
Total |
$ | 1,530,764 | $ | 675,482 | $ | 333,282 | $ | 411,536 | $ | 52,853 | ||||||||||
Page 13 of 19
UTi Worldwide Inc.
Supplemental Financial Information Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Supplemental Financial Information Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Three months ended July 31, 2011 | ||||||||||||
Non | ||||||||||||
US GAAP | Adjustment | US GAAP | ||||||||||
Revenue |
$ | 1,297,358 | $ | | $ | 1,297,358 | ||||||
Purchased transportation costs |
853,962 | | 853,962 | |||||||||
Staff costs |
243,135 | | 243,135 | |||||||||
Depreciation and amortization |
11,792 | | 11,792 | |||||||||
Amortization of intangible assets |
4,773 | | 4,773 | |||||||||
Severance and exit costs (1) |
3,483 | (3,483 | ) | | ||||||||
Other operating expenses |
140,472 | | 140,472 | |||||||||
Operating income |
39,741 | 3,483 | 43,224 | |||||||||
Interest expense, net |
(3,867 | ) | | (3,867 | ) | |||||||
Other income, net |
223 | | 223 | |||||||||
Pretax income |
36,097 | 3,483 | 39,580 | |||||||||
Provision for income taxes |
11,259 | 1,086 | 12,345 | |||||||||
Net income |
24,838 | 2,397 | 27,235 | |||||||||
Net income attributable to noncontrolling interests |
1,965 | | 1,965 | |||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 22,873 | $ | 2,397 | $ | 25,270 | ||||||
Basic earnings per share |
$ | 0.22 | $ | 0.25 | ||||||||
Diluted earnings per share |
$ | 0.22 | $ | 0.24 |
(1) | During the three months ended July 31, 2011, the company recorded severance costs
totaling $3,483, which were primarily related to transformation activities. |
Page 14 of 19
UTi Worldwide Inc.
Supplemental Financial Information Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Supplemental Financial Information Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Six months ended July 31, 2011 | ||||||||||||
Non | ||||||||||||
US GAAP | Adjustment | US GAAP | ||||||||||
Revenue |
$ | 2,496,063 | $ | | $ | 2,496,063 | ||||||
Purchased transportation costs |
1,642,090 | | 1,642,090 | |||||||||
Staff costs |
476,480 | | 476,480 | |||||||||
Depreciation and amortization |
24,233 | | 24,233 | |||||||||
Amortization of intangible assets |
8,228 | | 8,228 | |||||||||
Severance and exit costs (2) |
8,332 | (8,332 | ) | | ||||||||
Other operating expenses |
278,166 | | 278,166 | |||||||||
Operating income |
58,534 | 8,332 | 66,866 | |||||||||
Interest expense, net |
(8,091 | ) | | (8,091 | ) | |||||||
Other income, net |
399 | | 399 | |||||||||
Pretax income |
50,842 | 8,332 | 59,174 | |||||||||
Provision for income taxes |
15,494 | 2,539 | 18,033 | |||||||||
Net income |
35,348 | 5,793 | 41,141 | |||||||||
Net income attributable to noncontrolling interests |
3,732 | | 3,732 | |||||||||
Net income attributable to UTi Worldwide Inc. |
$ | 31,616 | $ | 5,793 | $ | 37,409 | ||||||
Basic earnings per share |
$ | 0.31 | $ | 0.37 | ||||||||
Diluted earnings per share |
$ | 0.31 | $ | 0.36 |
(2) | During the six months ended July 31, 2011, the company recorded severance of $6,418
primarily related to transformation activities and facility exit costs of $1,914 associated
with the closure of certain underutilized contract logistics facilities in Europe. |
Page 15 of 19
UTi Worldwide Inc.
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth and growth rates in our revenues and net
revenues over the corresponding prior-year period. Organic growth is a non-GAAP measure that
excludes the impact of foreign currency translation and acquisitions.
Revenues | Net Revenues | |||||||||||||||
Three months ended July 31, 2010 |
$ | 1,151,090 | $ | 379,070 | ||||||||||||
Add: Currency impact (3) |
89,496 | 8 | % | 32,319 | 9 | % | ||||||||||
Organic growth |
56,772 | 5 | % | 32,007 | 8 | % | ||||||||||
Three months ended July 31, 2011 |
$ | 1,297,358 | $ | 443,396 | ||||||||||||
(3) | Represents the fluctuations in foreign currency exchange rates when
balances are translated on constant currency basis into U.S. dollars. The company
makes constant currency computations using actual results computed at the foreign
currency exchange rates for the comparative prior period. |
Page 16 of 19
UTi Worldwide Inc.
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth and growth rates in our revenues and net
revenues over the corresponding prior-year period. Organic growth is a non-GAAP measure that
excludes the impact of foreign currency translation and acquisitions.
Revenues | Net Revenues | |||||||||||||||
Six months ended July 31, 2010 |
$ | 2,206,246 | $ | 744,818 | ||||||||||||
Add: Acquisitions impact (4) |
2,634 | | % | 192 | | % | ||||||||||
Add: Currency impact (5) |
131,916 | 6 | % | 47,932 | 6 | % | ||||||||||
Organic growth |
155,267 | 7 | % | 61,031 | 8 | % | ||||||||||
Six months ended July 31, 2011 |
$ | 2,496,063 | $ | 853,973 | ||||||||||||
(4) | Relates to revenues and net revenues in the current period for businesses
acquired from August 2010. |
|
(5) | Represents the fluctuations in foreign currency exchange rates when
balances are translated on constant currency basis into U.S. dollars. The company
makes constant currency computations using actual results computed at the foreign
currency exchange rates for the comparative prior period. |
Page 17 of 19
UTi Worldwide Inc.
Total Operating Expense Reconciliation
(in thousands)
(Unaudited)
Total Operating Expense Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth and growth rates in our operating
expenses over the corresponding prior-year period. Organic growth is a non-GAAP measure that
excludes the impact of foreign currency translation and acquisitions.
Three months ended | ||||||||||||
July 31, 2011 | July 31, 2010 | |||||||||||
Total operating expenses |
$ | 1,257,617 | $ | 1,117,189 | ||||||||
Less: Purchased transportation costs |
853,962 | 772,020 | ||||||||||
Operating expenses less purchased transportation costs |
$ | 403,655 | 345,169 | |||||||||
Reconciliation to adjusted operating expenses less purchased
transportation costs |
||||||||||||
Add: Currency impact (6) |
29,469 | 9 | % | |||||||||
Add: Organic growth |
29,017 | 8 | % | |||||||||
Operating expense less purchased transportation costs for the
three months ended July 31, 2011 |
403,655 | |||||||||||
Less: Severance and exit costs (7) |
(3,483 | ) | 1 | % | ||||||||
Adjusted operating expenses less purchased transportation costs
for the three months ended July 31, 2011 |
$ | 400,172 | ||||||||||
(6) | Represents the fluctuations in foreign currency exchange rates when
balances are translated on a constant currency basis into U.S. dollars. The company
makes constant currency computations using actual results computed at the foreign
currency exchange rates for the comparative prior period. |
|
(7) | Includes $3,483 in severance costs primarily related to transformation
activities. |
Page 18 of 19
UTi Worldwide Inc.
Total Operating Expense Reconciliation
(in thousands)
(Unaudited)
Total Operating Expense Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth and growth rates in our operating
expenses over the corresponding prior-year period. Organic growth is a non-GAAP measure that
excludes the impact of foreign currency translation and acquisitions.
Six months ended | ||||||||||||
July 31, 2011 | July 31, 2010 | |||||||||||
Total operating expenses |
$ | 2,437,529 | $ | 2,153,393 | ||||||||
Less: Purchased transportation costs |
1,642,090 | 1,461,428 | ||||||||||
Operating expenses less purchased transportation costs |
$ | 795,439 | 691,965 | |||||||||
Reconciliation to adjusted operating expenses less purchased
transportation costs |
||||||||||||
Add: Acquisition impact (8) |
300 | | % | |||||||||
Add: Currency impact (9) |
44,056 | 6 | % | |||||||||
Add: Organic growth |
59,118 | 9 | % | |||||||||
Operating expense less purchased transportation costs for the
six months ended July 31, 2011 |
795,439 | |||||||||||
Less: Severance and exit costs (10) |
(8,332 | ) | 1 | % | ||||||||
Adjusted operating expenses less purchased transportation costs
for the six months ended July 31, 2011 |
$ | 787,107 | ||||||||||
(8) | Relates to operating expenses in the current period for businesses acquired
from August 2010. |
|
(9) | Represents the fluctuations in foreign currency exchange rates when
balances are translated on a constant currency basis into U.S. dollars. The company
makes constant currency computations using actual results computed at the foreign
currency exchange rates for the comparative prior period. |
|
(10) | Includes $6,418 in severance costs primarily related to transformation
activities and $1,914 in severance and other costs associated with the exit of
certain underutilized contract logistics facilities in Europe. |
Page 19 of 19