-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M0fxFaM/hz79Stp6rybGQZlVelEG8XJ3W1AjB4nijrycc2Ni11jG6+vGMK5CHy7C th1dP8HQDVv8tKe7Pmgn4Q== 0000950144-03-005461.txt : 20030424 0000950144-03-005461.hdr.sgml : 20030424 20030424151411 ACCESSION NUMBER: 0000950144-03-005461 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030422 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED PARCEL SERVICE INC CENTRAL INDEX KEY: 0001090727 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING & COURIER SERVICES (NO AIR) [4210] IRS NUMBER: 582480149 STATE OF INCORPORATION: DE FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15451 FILM NUMBER: 03662220 BUSINESS ADDRESS: STREET 1: 55 GLENLAKE PARKWAY NE CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 4048286000 MAIL ADDRESS: STREET 1: 55 GLENLAKE PARKWAY NE CITY: ATLANTA STATE: GA ZIP: 30328 8-K 1 g82315e8vk.txt UNITED PARCEL SERVICE, INC UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 22, 2003 -------------- United Parcel Service, Inc. --------------------------- (Exact name of registrant as specified in its charter) Delaware 001-15451 58-2480149 - ----------------- ------------ ---------------------- (State or other (Commission (IRS Employer jurisdiction File Number) Identification Number) of incorporation) 55 Glenlake Parkway, N.E. Atlanta, Georgia 30328 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (404) 828-6000 -------------- Not applicable ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. 99.1 Press Release dated April 22, 2003. Item 9. Regulation FD Disclosure. The information contained in this Item 9 is being furnished to the Securities and Exchange Commission pursuant to Item 12 of Form 8-K, "Disclosure of Results of Operations and Financial Condition," as directed in Release No. 34-47583. On April 22, 2003, United Parcel Service, Inc. issued a press release containing information about the Company's results of operations for the quarter ended March 31, 2003. A copy of the press release is attached hereto as Exhibit 99.1. The press release presented non-GAAP financial information that the company believes is useful because it allows investors to perform meaningful comparisons of the company's results for 2002 and 2003. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNITED PARCEL SERVICE, INC. Date: April 24, 2003 By: /s/ D. Scott Davis ------------------------------- Name: D. Scott Davis Title: Senior Vice President, Chief Financial Officer and Treasurer EXHIBIT INDEX 99.1 Press Release dated April 22, 2003. EX-99.1 3 g82315exv99w1.txt PRESS RELEASE DATED APRIL 22, 2003 FOR IMMEDIATE RELEASE Contacts: Norman Black, Public Relations 404-828-7593 Kurt Kuehn, Investor Relations 404-828-6977 INTERNATIONAL, NON-PACKAGE SEGMENTS DRIVE UPS 1ST QUARTER RESULTS ATLANTA, April 22, 2003 - UPS today reported solid first quarter results driven by its international and non-package businesses, with both segments generating strong revenue growth and record-setting profits. The U.S. package segment experienced volume declines during the first two months of the quarter, exacerbated by severe winter weather and a difficult economy. In March, however, and continuing into April, volume trends improved and the company now is experiencing growth in its U.S. package business. For the quarter ended March 31, 2003, revenue totaled $8.02 billion, up 5.8% from the $7.58 billion reported during the prior-year period. Consolidated operating profit fell 0.2% to $945 million. Net income increased 24.4% to $611 million compared to the prior year's $491 million. Excluding a $72 million non-recurring charge in 2002 for the adoption of a new accounting standard, net income rose 8.5%, from $563 million in 2002 to $611 million this year. Earnings per diluted share, adjusted to exclude the non-recurring item, increased 8% to $0.54 versus $0.50 recorded during the prior-year period. Without this adjustment, earnings per share increased 25.6% compared to the $0.43 recorded during the first quarter of 2002. Operating profit for the international package segment more than quadrupled to $134 million, led by a 10.3% increase in export volume and a 23.5% increase in revenue. Operating profit for the non-package segment almost doubled to $107 million on an 11.4% gain in revenue. The U.S. package segment was hurt by a number of adverse items, including a sharp increase in fuel costs; bad weather that cost the company more than $30 million, and increases in pension and healthcare expenses. Nonetheless, revenue per piece showed excellent improvement as the pricing environment remained firm. "We are pleased with the quarter on many fronts," said UPS Chief Financial Officer Scott Davis. "We generated good results despite a very challenging domestic environment and were gratified to see our strategy really taking hold in the international and supply chain segments." - more - 2-2-2 UPS took several steps over the quarter to generate growth opportunities, including the introduction of a new look and branding campaign to demonstrate its expanded global capabilities. The company also launched a program under which most Mail Boxes Etc. centers in the U.S. will re-brand into THE UPS STORE, and continued integration activities within the new UPS Supply Chain Solutions organization. Additional results for each segment include: o In the international segment, revenue increased 23.5% to $1.3 billion compared to the prior year period. Operating profit surged more than 300% to $134 million. Average daily export volume continued to outperform market growth, posting a 10.3% increase overall with a 16% gain in Asia and an 11% hike in Europe. o Within the U.S. domestic segment, revenue totaled $6 billion, up 2% compared to $5.9 billion for the prior year. Operating profit declined 18.3% to $704 million due to a volume decline of 1.2% and adverse costs. Approximately one-half of the volume decline was attributed to the effects of bad weather in February. Next Day Air(R) express volume grew a strong 3.9%, well above market growth, and the quarter ended with positive growth trends. o The non-package segment posted its best quarter ever. Revenue increased 11.4% to $693 million. Operating profit totaled $107 million, up from the $55 million reported the prior year. UPS Supply Chain Solutions benefited substantially from its successful integration and restructuring. The quarter's consolidated results were helped by a $55 million reduction in income taxes, or $0.05 per share, as a number of outstanding tax issues were resolved. Those gains were partially offset by a writedown in UPS's marketable securities, reflecting market conditions. The writedown totaled $58 million pre-tax, or $0.03 per share. As to future guidance, Davis said the company expects second quarter earnings to be in the range of $0.58 to 0.62 per diluted share compared to $0.54 in 2002. He said the company is on track to achieve its stated goal of a 10-to-15% gain in earnings per share for the full year. "We expect domestic package volume to continue the momentum begun in March and April and post between a 1-to-2% increase over last year's second quarter results," Davis said. "All three domestic product lines should show positive growth rates, with Next Day Air remaining the strongest. We have put in place many initiatives that we believe will continue to expand our U.S. package business. - more - 3-3-3 "International growth trends should continue and we expect the synergies being created by the integration of our UPS Supply Chain Solutions organization will continue to pay off," Davis added. "We are encouraged by the way our customers are accepting our strategy of synchronizing global commerce." UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at UPS.com. # # # DETAILED FINANCIAL SCHEDULES ARE AVAILABLE ON THE COMPANY'S WEB SITE. EDITOR'S NOTE: UPS CFO Scott Davis will discuss first quarter results with investors and analysts during a conference call later today at 10:00 a.m. (EDT). That conference call is open to listeners through a live webcast at www.ups.com. To access the call through the Website, click on "UPS Investor Relations" at the bottom right of the U.S. homepage, then click on "Earnings Webcast." Except for historical information contained herein, the statements made in this release constitute 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. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference. UNITED PARCEL SERVICE, INC. SELECTED FINANCIAL DATA - FIRST QUARTER
QUARTER ENDED MARCH 31, CHANGE --------------------------------------------------- 2003 2002 $ % --------- --------- --------- --------- (financial data in millions, except per share amounts) STATEMENT OF INCOME DATA: Revenue: U.S. domestic package $ 6,020 $ 5,903 $ 117 2.0% International package 1,302 1,054 248 23.5% Non-package 693 622 71 11.4% --------- --------- --------- Total revenue 8,015 7,579 436 5.8% Operating expenses: Compensation and benefits 4,708 4,449 259 5.8% Other 2,362 2,183 179 8.2% --------- --------- --------- Total operating expenses 7,070 6,632 438 6.6% Operating profit: U.S. domestic package 704 862 (158) -18.3% International package 134 30 104 346.7% Non-package 107 55 52 94.5% --------- --------- --------- Total operating profit 945 947 (2) -0.2% Other income (expense): Investment income (loss) (38) 12 (50) -416.7% Interest expense (25) (43) 18 -41.9% --------- --------- --------- Total other income (expense) (63) (31) (32) -103.2% --------- --------- --------- Income before income taxes 882 916 (34) -3.7% Income taxes 271 353 (82) -23.2% FAS 142 cumulative adjustment, net -- (72) 72 N/A --------- --------- --------- Net income $ 611 $ 491 $ 120 24.4% ========= ========= ========= Non-recurring items: FAS 142 cumulative adjustment, net -- 72 (72) N/A --------- --------- --------- As adjusted net income exclusive of non-recurring items $ 611 $ 563 $ 48 8.5% ========= ========= ========= As adjusted net income as a percentage of revenue 7.6% 7.4% Per share amounts Basic earnings per share $ 0.54 $ 0.44 Diluted earnings per share $ 0.54 $ 0.43 As adjusted per share amounts Basic earnings per share $ 0.54 $ 0.50 Diluted earnings per share $ 0.54 $ 0.50 Weighted average shares outstanding Basic 1,124 1,119 Diluted 1,136 1,134
Certain prior year amounts have been reclassified to conform to the current year presentation. 1 UNITED PARCEL SERVICE, INC. SELECTED OPERATING DATA - FIRST QUARTER
QUARTER ENDED MARCH 31, CHANGE -------------------------------------------------- 2003 2002 $ % ---------- ---------- ---------- ---------- REVENUE (IN MILLIONS): U.S. domestic package: Next day air $ 1,353 $ 1,313 $ 40 3.0% Deferred 698 700 (2) -0.3% Ground 3,969 3,890 79 2.0% ---------- ---------- ---------- Total U.S. domestic package 6,020 5,903 117 2.0% International package: Domestic 266 222 44 19.8% Export 940 737 203 27.5% Cargo 96 95 1 1.1% ---------- ---------- ---------- Total International package 1,302 1,054 248 23.5% Non-package: UPS Supply Chain Solutions 500 460 40 8.7% Other 193 162 31 19.1% ---------- ---------- ---------- Total Non-package 693 622 71 11.4% ---------- ---------- ---------- Consolidated $ 8,015 $ 7,579 $ 436 5.8% ========== ========== ========== Memo: Gross revenue UPS Supply Chain Solutions $ 912 $ 704 $ 208 29.5% Consolidated volume (in millions) 826 832 (6) -0.8% Operating weekdays 63 63 AVERAGE DAILY PACKAGE VOLUME (IN THOUSANDS): U.S. domestic package: Next day air 1,135 1,092 43 3.9% Deferred 845 880 (35) -4.0% Ground 9,881 10,034 (153) -1.5% ---------- ---------- ---------- Total U.S. domestic package 11,861 12,006 (145) -1.2% International package: Domestic 776 780 (4) -0.5% Export 471 427 44 10.3% ---------- ---------- ---------- Total International package 1,247 1,207 40 3.3% ---------- ---------- ---------- Consolidated 13,108 13,213 (105) -0.8% ========== ========== ========== AVERAGE REVENUE PER PIECE: U.S. domestic package: Next day air $ 18.92 $ 19.09 $ (0.17) -0.9% Deferred 13.11 12.63 0.48 3.8% Ground 6.38 6.15 0.23 3.7% Total U.S. domestic package 8.06 7.80 0.26 3.3% International package: Domestic 5.44 4.52 0.92 20.4% Export 31.68 27.40 4.28 15.6% Total International package 15.35 12.61 2.74 21.7% Consolidated $ 8.75 $ 8.24 $ 0.51 6.2% ========== ========== ==========
Certain prior year amounts have been reclassified to conform to the current year presentation. 2 -----END PRIVACY-ENHANCED MESSAGE-----