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8-K - FORM 8-K - UTi WORLDWIDE INCc22109e8vk.htm
Exhibit 99.1
(UTI LOGO)
Contact:
Jeff Misakian
Vice President, Investor Relations
(562) 552-9417
jmisakian@go2uti.com
UTi WORLDWIDE REPORTS FISCAL 2012
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 company’s 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.

 

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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 company’s 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 company’s 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.

 

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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 company’s 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 company’s customers; planned or unplanned consequences of the company’s sales initiatives, procurement initiatives and business transformation efforts; the demand for the company’s 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 company’s 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 company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and described in the company’s 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 UTi’s objectives or plans will be achieved. Accordingly, investors are cautioned not to place undue reliance on the company’s 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)

 

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UTi Worldwide Inc.
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  

 

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UTi Worldwide Inc.
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  
 
           

 

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UTi Worldwide Inc.
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  
 
           

 

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UTi Worldwide Inc.
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  
 
                             

 

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UTi Worldwide Inc.
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  
 
                             

 

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UTi Worldwide Inc.
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)
                                 
    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)
                                                 
    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)
                                                 
    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)
                         
    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)
                         
    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)
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)
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)
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)
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