Delaware (State or other jurisdiction of incorporation) |
62-1721435 (IRS Employer Identification No.) |
|
942 South Shady Grove Road, Memphis, Tennessee (Address of principal executive offices) |
38120 (ZIP Code) |
Delaware (State or other jurisdiction of incorporation) |
71-0427007 (IRS Employer Identification No.) |
|
3610 Hacks Cross Road, Memphis, Tennessee (Address of principal executive offices) |
38125 (ZIP Code) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. The following exhibit is being furnished as part of this Report. |
Exhibit | ||||
Number | Description | |||
99.1 | Press Release of FedEx Corporation dated September 22, 2011. |
2
FedEx Corporation |
||||
Date: September 22, 2011 | By: | /s/ HERBERT C. NAPPIER | ||
Herbert C. Nappier | ||||
Staff Vice President and Corporate Controller |
||||
Federal Express Corporation |
||||
Date: September 22, 2011 | By: | /s/ J. RICK BATEMAN | ||
J. Rick Bateman | ||||
Vice President and Worldwide Controller |
3
Exhibit | ||||
Number | Description | |||
99.1 | Press Release of FedEx Corporation dated September 22, 2011. |
E-1
| Revenue of $10.52 billion, up 11% from $9.46 billion the previous year | ||
| Operating income of $737 million, up 17% from $628 million last year | ||
| Operating margin of 7.0%, up from 6.6% the previous year | ||
| Net income of $464 million, up 22% from last years $380 million |
2
| Revenue of $6.59 billion, up 12% from last years $5.91 billion | ||
| Operating income of $288 million, down 19% from $357 million a year ago | ||
| Operating margin of 4.4%, down from 6.0% the previous year |
| Revenue of $2.28 billion, up 16% from last years $1.96 billion | ||
| Operating income of $407 million, up 42% from $287 million a year ago | ||
| Operating margin of 17.9%, up from 14.6% the previous year |
3
| Revenue of $1.33 billion, up 6% from last years $1.26 billion | ||
| Operating income of $42 million, compared with an operating loss of $16 million a year ago | ||
| Operating margin of 3.2%, up from (1.3%) the previous year |
4
5
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2011 | 2010 | % | ||||||||||
Revenue: |
||||||||||||
FedEx Express segment |
$ | 6,592 | $ | 5,912 | 12 | % | ||||||
FedEx Ground segment |
2,278 | 1,961 | 16 | % | ||||||||
FedEx Freight segment |
1,328 | 1,258 | 6 | % | ||||||||
FedEx Services segment |
411 | 415 | (1 | %) | ||||||||
Other & eliminations |
(88 | ) | (89 | ) | (1 | %) | ||||||
Total Revenue |
10,521 | 9,457 | 11 | % | ||||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
4,004 | 3,803 | 5 | % | ||||||||
Purchased transportation |
1,518 | 1,327 | 14 | % | ||||||||
Rentals and landing fees |
620 | 601 | 3 | % | ||||||||
Depreciation and amortization |
509 | 479 | 6 | % | ||||||||
Fuel |
1,244 | 887 | 40 | % | ||||||||
Maintenance and repairs |
551 | 517 | 7 | % | ||||||||
Other |
1,338 | 1,215 | 10 | % | ||||||||
Total Operating Expenses |
9,784 | 8,829 | 11 | % | ||||||||
Operating Income (Loss): |
||||||||||||
FedEx Express segment |
288 | 357 | (19 | %) | ||||||||
FedEx Ground segment |
407 | 287 | 42 | % | ||||||||
FedEx Freight segment |
42 | (16 | ) | NM | ||||||||
Total Operating Income |
737 | 628 | 17 | % | ||||||||
Other Income (Expense): |
||||||||||||
Interest, net |
(11 | ) | (18 | ) | (39 | %) | ||||||
Other, net |
(2 | ) | (7 | ) | (71 | %) | ||||||
Total Other Income (Expense) |
(13 | ) | (25 | ) | (48 | %) | ||||||
Income Before Income Taxes |
724 | 603 | 20 | % | ||||||||
Provision for Income Taxes |
260 | 223 | 17 | % | ||||||||
Net Income |
$ | 464 | $ | 380 | 22 | % | ||||||
Diluted Earnings Per Share |
$ | 1.46 | $ | 1.20 | 22 | % | ||||||
Weighted Average Common and
Common Equivalent Shares |
318 | 315 | 1 | % | ||||||||
Capital Expenditures |
$ | 1,110 | $ | 1,012 | 10 | % | ||||||
Average Full-Time Equivalents (in thousands) |
259 | 252 | 3 | % |
6
August 31, 2011 | ||||||||
(Unaudited) | May 31, 2011 | |||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 1,959 | $ | 2,328 | ||||
Receivables, less allowances |
4,624 | 4,581 | ||||||
Spare parts, supplies and fuel, less allowances |
418 | 437 | ||||||
Deferred income taxes |
610 | 610 | ||||||
Prepaid expenses and other |
352 | 329 | ||||||
Total current assets |
7,963 | 8,285 | ||||||
Property and Equipment, at Cost |
34,224 | 33,686 | ||||||
Less accumulated depreciation and amortization |
18,404 | 18,143 | ||||||
Net property and equipment |
15,820 | 15,543 | ||||||
Other Long-Term Assets |
||||||||
Goodwill |
2,435 | 2,326 | ||||||
Other assets |
1,620 | 1,231 | ||||||
Total other long-term assets |
4,055 | 3,557 | ||||||
$ | 27,838 | $ | 27,385 | |||||
LIABILITIES AND STOCKHOLDERS INVESTMENT |
||||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
$ | 301 | $ | 18 | ||||
Accrued salaries and employee benefits |
1,245 | 1,268 | ||||||
Accounts payable |
1,563 | 1,702 | ||||||
Accrued expenses |
1,872 | 1,894 | ||||||
Total current liabilities |
4,981 | 4,882 | ||||||
Long-Term Debt, Less Current Portion |
1,367 | 1,667 | ||||||
Other Long-Term Liabilities |
||||||||
Deferred income taxes |
1,441 | 1,336 | ||||||
Pension, postretirement healthcare and other benefit obligations |
2,123 | 2,124 | ||||||
Self-insurance accruals |
964 | 977 | ||||||
Deferred lease obligations |
824 | 779 | ||||||
Deferred gains, principally related to aircraft transactions |
240 | 246 | ||||||
Other liabilities |
184 | 154 | ||||||
Total other long-term liabilities |
5,776 | 5,616 | ||||||
Commitments and Contingencies |
||||||||
Common Stockholders Investment |
||||||||
Common stock, $0.10 par value, 800 million shares authorized |
32 | 32 | ||||||
Additional paid-in capital |
2,547 | 2,484 | ||||||
Retained earnings |
15,648 | 15,266 | ||||||
Accumulated other comprehensive loss |
(2,501 | ) | (2,550 | ) | ||||
Treasury stock, at cost |
(12 | ) | (12 | ) | ||||
Total common stockholders investment |
15,714 | 15,220 | ||||||
$ | 27,838 | $ | 27,385 | |||||
7
Three Months Ended | ||||||||
August 31 | ||||||||
2011 | 2010 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 464 | $ | 380 | ||||
Noncash charges: |
||||||||
Depreciation and amortization |
509 | 479 | ||||||
Other, net |
211 | 98 | ||||||
Changes in operating assets and liabilities, net |
(324 | ) | (161 | ) | ||||
Net cash provided by operating activities |
860 | 796 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(1,110 | ) | (1,012 | ) | ||||
Business acquisitions, net of cash acquired |
(111 | ) | | |||||
Proceeds from asset dispositions and other |
5 | 3 | ||||||
Net cash used in investing activities |
(1,216 | ) | (1,009 | ) | ||||
Financing Activities: |
||||||||
Principal payments on debt |
(17 | ) | (12 | ) | ||||
Dividends paid |
(41 | ) | (38 | ) | ||||
Other, net |
32 | 9 | ||||||
Net cash used in financing activities |
(26 | ) | (41 | ) | ||||
Effect of exchange rate changes on cash |
13 | 11 | ||||||
Net decrease in cash and cash equivalents |
(369 | ) | (243 | ) | ||||
Cash and cash equivalents at beginning of period |
2,328 | 1,952 | ||||||
Cash and cash equivalents at end of period |
$ | 1,959 | $ | 1,709 | ||||
8
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2011 | 2010 | % | ||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||
Revenue |
$ | 6,592 | $ | 5,912 | 12 | % | ||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
2,413 | 2,258 | 7 | % | ||||||||
Purchased transportation |
449 | 369 | 22 | % | ||||||||
Rentals and landing fees |
423 | 403 | 5 | % | ||||||||
Depreciation and amortization |
282 | 255 | 11 | % | ||||||||
Fuel |
1,077 | 754 | 43 | % | ||||||||
Maintenance and repairs |
380 | 352 | 8 | % | ||||||||
Intercompany charges |
548 | 513 | 7 | % | ||||||||
Other |
732 | 651 | 12 | % | ||||||||
Total Operating Expenses |
6,304 | 5,555 | 13 | % | ||||||||
Operating Income |
$ | 288 | $ | 357 | (19 | %) | ||||||
Operating Margin |
4.4 | % | 6.0 | % | (1.6 | pts) | ||||||
OPERATING STATISTICS |
||||||||||||
Operating Weekdays |
65 | 65 | | |||||||||
AVG DAILY VOLUME / POUNDS |
||||||||||||
Average Daily Package Volume (000s): |
||||||||||||
U.S. Overnight Box |
1,134 | 1,168 | (3 | %) | ||||||||
U.S. Overnight Envelope |
596 | 624 | (4 | %) | ||||||||
U.S. Deferred |
829 | 846 | (2 | %) | ||||||||
Total U.S. Domestic Package |
2,559 | 2,638 | (3 | %) | ||||||||
International Priority |
543 | 566 | (4 | %) | ||||||||
International Domestic1 |
445 | 323 | 38 | % | ||||||||
Total Average Daily Packages |
3,547 | 3,527 | 1 | % | ||||||||
Average Daily Freight Pounds (000s): |
||||||||||||
U.S. |
6,969 | 6,908 | 1 | % | ||||||||
International Priority |
3,132 | 3,027 | 3 | % | ||||||||
International Airfreight |
1,165 | 1,240 | (6 | %) | ||||||||
Total Avg Daily Freight Pounds |
11,266 | 11,175 | 1 | % | ||||||||
YIELD |
||||||||||||
Revenue Per Package: |
||||||||||||
U.S. Overnight Box |
$ | 22.24 | $ | 19.65 | 13 | % | ||||||
U.S. Overnight Envelope |
11.64 | 10.64 | 9 | % | ||||||||
U.S. Deferred |
13.57 | 12.01 | 13 | % | ||||||||
Total U.S. Domestic Package |
16.97 | 15.07 | 13 | % | ||||||||
International Priority |
62.30 | 53.70 | 16 | % | ||||||||
International Domestic1 |
7.16 | 7.04 | 2 | % | ||||||||
Composite Package Yield |
$ | 22.67 | $ | 20.52 | 10 | % | ||||||
Revenue Per Freight Pound: |
||||||||||||
U.S. |
$ | 1.31 | $ | 1.16 | 13 | % | ||||||
International Priority |
2.21 | 2.06 | 7 | % | ||||||||
International Airfreight |
1.02 | 0.87 | 17 | % | ||||||||
Composite Freight Yield |
$ | 1.53 | $ | 1.38 | 11 | % | ||||||
Average Full-Time Equivalents (000s) |
136 | 132 | 3 | % |
1 | International Domestic includes the operations of a February 2011 business acquisition in India and a July 2011 business acquisition in Mexico. |
9
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2011 | 2010 | % | ||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||
Revenues: |
||||||||||||
FedEx Ground |
$ | 2,116 | $ | 1,839 | 15 | % | ||||||
FedEx SmartPost |
162 | 122 | 33 | % | ||||||||
Total Revenues |
2,278 | 1,961 | 16 | % | ||||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
351 | 307 | 14 | % | ||||||||
Purchased transportation |
886 | 782 | 13 | % | ||||||||
Rentals |
66 | 62 | 6 | % | ||||||||
Depreciation and amortization |
93 | 82 | 13 | % | ||||||||
Fuel |
2 | 1 | NM | |||||||||
Maintenance and repairs |
44 | 44 | | |||||||||
Intercompany charges |
241 | 221 | 9 | % | ||||||||
Other |
188 | 175 | 7 | % | ||||||||
Total Operating Expenses |
1,871 | 1,674 | 12 | % | ||||||||
Operating Income |
$ | 407 | $ | 287 | 42 | % | ||||||
Operating Margin |
17.9 | % | 14.6 | % | 3.3 | pts | ||||||
OPERATING STATISTICS |
||||||||||||
Operating Weekdays |
65 | 65 | | |||||||||
Average Daily Package Volume (000s) |
||||||||||||
FedEx Ground |
3,722 | 3,534 | 5 | % | ||||||||
FedEx SmartPost |
1,415 | 1,100 | 29 | % | ||||||||
Yield (Revenue Per Package) |
||||||||||||
FedEx Ground |
$ | 8.73 | $ | 7.99 | 9 | % | ||||||
FedEx SmartPost |
$ | 1.76 | $ | 1.68 | 5 | % |
10
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2011 | 2010 | % | ||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||
Revenue |
$ | 1,328 | $ | 1,258 | 6 | % | ||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
578 | 600 | (4 | %) | ||||||||
Purchased transportation |
207 | 204 | 1 | % | ||||||||
Rentals |
28 | 34 | (18 | %) | ||||||||
Depreciation and amortization |
44 | 48 | (8 | %) | ||||||||
Fuel |
165 | 131 | 26 | % | ||||||||
Maintenance and repairs |
50 | 46 | 9 | % | ||||||||
Intercompany charges |
109 | 109 | | |||||||||
Other |
105 | 102 | 3 | % | ||||||||
Total Operating Expenses |
1,286 | 1,274 | 1 | % | ||||||||
Operating Income (Loss) |
$ | 42 | $ | (16 | ) | NM | ||||||
Operating Margin |
3.2 | % | (1.3 | %) | 4.5 | pts | ||||||
OPERATING STATISTICS |
||||||||||||
LTL Operating Weekdays |
65 | 65 | | |||||||||
LTL Shipments Per Day (000s) |
85.0 | 91.8 | (7 | %) | ||||||||
Weight Per LTL Shipment (lbs) |
1,157 | 1,134 | 2 | % | ||||||||
LTL Revenue/CWT |
$ | 19.29 | $ | 17.32 | 11 | % |
11