Washington | 000-13468 | 91-1069248 | ||
(State or other jurisdiction of | (Commission File No.) | (IRS Employer Identification Number) | ||
incorporation or organization) | ||||
1015 Third Avenue, 12th Floor, Seattle, Washington | 98104 | |||
(Address of principal executive offices) | (Zip Code) | |||
(206) 674-3400 | ||||
(Registrant's telephone number, including area code) | ||||
N/A | ||||
(Former name or former address, if changed since last report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
CONTACTS: | R. Jordan Gates Bradley S. Powell |
Three months ended March 31, | |||||||||
2012 | 2011 | % Decrease | |||||||
Revenues | $ | 1,411,370 | $ | 1,460,848 | (3)% | ||||
Net revenues | $ | 446,571 | $ | 453,915 | (2)% | ||||
Operating income | $ | 125,271 | $ | 147,230 | (15)% | ||||
Net earnings attributable to shareholders | $ | 76,707 | $ | 91,232 | (16)% | ||||
Diluted earnings attributable to shareholders | $ | .36 | $ | .42 | (14)% | ||||
Basic earnings attributable to shareholders | $ | .36 | $ | .43 | (16)% | ||||
Diluted weighted average shares outstanding | 214,199,510 | 215,863,386 | |||||||
Basic weighted average shares outstanding | 212,097,662 | 212,088,860 |
Employee headcount as of March 31, | |||||
2012 | 2011 | ||||
North America | 4,702 | 4,443 | |||
Asia Pacific | 4,006 | 3,898 | |||
Europe and Africa | 2,292 | 2,142 | |||
Middle East | 1,229 | 1,187 | |||
South America | 644 | 626 | |||
Information Systems | 567 | 551 | |||
Corporate | 234 | 205 | |||
Total | 13,674 | 13,052 |
Year-over-year percentage increase (decrease) in: | ||||||
Airfreight kilos | Ocean freight FEU | |||||
2012 | ||||||
January | (15 | )% | (6 | )% | ||
February | 3 | % | 15 | % | ||
March | (13 | )% | (1 | )% | ||
Quarter | (9 | )% | 1 | % |
March 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,412,915 | $ | 1,294,356 | |||
Short-term investments | 16,277 | 472 | |||||
Accounts receivable, net | 934,866 | 934,752 | |||||
Deferred Federal and state income taxes | 9,754 | 10,415 | |||||
Other current assets | 36,386 | 46,888 | |||||
Total current assets | 2,410,198 | 2,286,883 | |||||
Property and equipment, net | 550,323 | 538,806 | |||||
Goodwill and other intangibles, net | 10,215 | 10,557 | |||||
Other assets, net | 30,487 | 30,581 | |||||
$ | 3,001,223 | $ | 2,866,827 | ||||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | 629,503 | 606,628 | |||||
Accrued expenses, primarily salaries and related costs | 170,535 | 169,445 | |||||
Federal, state and foreign income taxes | 28,219 | 20,072 | |||||
Total current liabilities | 828,257 | 796,145 | |||||
Deferred Federal and state income taxes | 70,932 | 60,613 | |||||
Commitments and contingencies | |||||||
Shareholders’ Equity: | |||||||
Preferred stock; none issued | — | — | |||||
Common stock, par value $.01 per share; issued and outstanding 212,275,083 shares at March 31, 2012 and 212,003,662 shares at December 31, 2011 | 2,123 | 2,120 | |||||
Additional paid-in capital | 18,338 | 13,260 | |||||
Retained earnings | 2,067,929 | 1,991,222 | |||||
Accumulated other comprehensive income (loss) | 7,064 | (2,964 | ) | ||||
Total shareholders’ equity | 2,095,454 | 2,003,638 | |||||
Noncontrolling interest | 6,580 | 6,431 | |||||
Total equity | 2,102,034 | 2,010,069 | |||||
$ | 3,001,223 | $ | 2,866,827 |
Three months ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Revenues: | |||||||
Airfreight services | $ | 638,912 | $ | 700,923 | |||
Ocean freight and ocean services | 434,336 | 440,141 | |||||
Customs brokerage and other services | 338,122 | 319,784 | |||||
Total revenues | 1,411,370 | 1,460,848 | |||||
Operating Expenses: | |||||||
Airfreight consolidation | 481,043 | 524,636 | |||||
Ocean freight consolidation | 331,954 | 339,549 | |||||
Customs brokerage and other services | 151,802 | 142,748 | |||||
Salaries and related costs | 246,132 | 237,815 | |||||
Rent and occupancy costs | 21,176 | 21,381 | |||||
Depreciation and amortization | 9,545 | 9,174 | |||||
Selling and promotion | 8,663 | 9,163 | |||||
Other | 35,784 | 29,152 | |||||
Total operating expenses | 1,286,099 | 1,313,618 | |||||
Operating income | 125,271 | 147,230 | |||||
Interest income | 3,360 | 2,320 | |||||
Interest expense | (620 | ) | (214 | ) | |||
Other, net | 1,097 | 1,117 | |||||
Other income, net | 3,837 | 3,223 | |||||
Earnings before income taxes | 129,108 | 150,453 | |||||
Income tax expense | 52,386 | 59,246 | |||||
Net earnings | 76,722 | 91,207 | |||||
Less net earnings (losses) attributable to the noncontrolling interest | 15 | (25 | ) | ||||
Net earnings attributable to shareholders | $ | 76,707 | $ | 91,232 | |||
Diluted earnings attributable to shareholders per share | $ | .36 | $ | .42 | |||
Basic earnings attributable to shareholders per share | $ | .36 | $ | .43 | |||
Dividends declared and paid per common share | $ | — | $ | — | |||
Weighted average diluted shares outstanding | 214,199,510 | 215,863,386 | |||||
Weighted average basic shares outstanding | 212,097,662 | 212,088,860 |
Three months ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 76,722 | $ | 91,207 | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Provision for losses on accounts receivable | (467 | ) | 1,853 | ||||
Deferred income tax expense (benefit) | 5,481 | (1,936 | ) | ||||
Excess tax benefits from stock plans | (3,426 | ) | (2,246 | ) | |||
Stock compensation expense | 10,600 | 10,472 | |||||
Depreciation and amortization | 9,545 | 9,174 | |||||
Gain on sale of assets | (65 | ) | (30 | ) | |||
Other | 282 | 307 | |||||
Changes in operating assets and liabilities: | |||||||
Decrease in accounts receivable | 12,968 | 6,683 | |||||
Decrease (increase) in other current assets | 1,924 | (1,415 | ) | ||||
Increase in accounts payable and accrued expenses | 13,559 | 30,187 | |||||
Increase in income taxes payable, net | 20,274 | 33,577 | |||||
Net cash provided by operating activities | 147,397 | 177,833 | |||||
Investing Activities: | |||||||
Increase in short-term investments, net | (15,780 | ) | (89 | ) | |||
Purchase of property and equipment | (17,088 | ) | (21,125 | ) | |||
Proceeds from sale of property and equipment | 112 | 43 | |||||
Other | 358 | (1,442 | ) | ||||
Net cash used in investing activities | (32,398 | ) | (22,613 | ) | |||
Financing Activities: | |||||||
Proceeds from issuance of common stock | 12,920 | 7,804 | |||||
Repurchases of common stock | (21,865 | ) | (19,584 | ) | |||
Excess tax benefits from stock plans | 3,426 | 2,246 | |||||
Net cash used in financing activities | (5,519 | ) | (9,534 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 9,079 | 8,320 | |||||
Increase in cash and cash equivalents | 118,559 | 154,006 | |||||
Cash and cash equivalents at beginning of period | 1,294,356 | 1,084,465 | |||||
Cash and cash equivalents at end of period | $ | 1,412,915 | $ | 1,238,471 | |||
Interest and taxes paid: | |||||||
Interest | $ | 187 | $ | 4 | |||
Income taxes | 26,512 | 26,276 |
UNITED STATES | OTHER NORTH AMERICA | LATIN AMERICA | ASIA PACIFIC | EUROPE and AFRICA | MIDDLE EAST and INDIA | ELIMI- NATIONS | CONSOLI- DATED | |||||||||||||||||
Three months ended March 31, 2012: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 377,302 | 49,954 | 19,269 | 688,070 | 206,271 | 70,504 | — | 1,411,370 | |||||||||||||||
Transfers between geographic areas | 22,208 | 2,465 | 5,079 | 10,972 | 9,467 | 4,651 | (54,842 | ) | — | |||||||||||||||
Total revenues | $ | 399,510 | 52,419 | 24,348 | 699,042 | 215,738 | 75,155 | (54,842 | ) | 1,411,370 | ||||||||||||||
Net revenues | $ | 181,475 | 22,242 | 14,835 | 131,814 | 71,533 | 24,672 | — | 446,571 | |||||||||||||||
Operating income | $ | 45,525 | 6,369 | 4,762 | 47,238 | 14,247 | 7,130 | — | 125,271 | |||||||||||||||
Identifiable assets | $ | 1,590,900 | 96,312 | 52,214 | 708,528 | 404,839 | 149,416 | (986 | ) | 3,001,223 | ||||||||||||||
Capital expenditures | $ | 9,759 | 176 | 255 | 5,287 | 942 | 669 | — | 17,088 | |||||||||||||||
Depreciation and amortization | $ | 5,622 | 187 | 217 | 1,624 | 1,404 | 491 | — | 9,545 | |||||||||||||||
Equity | $ | 1,315,321 | 56,341 | 31,060 | 471,498 | 164,165 | 93,282 | (29,633 | ) | 2,102,034 | ||||||||||||||
Three months ended March 31, 2011: | ||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 377,106 | 43,846 | 20,332 | 728,130 | 213,612 | 77,822 | — | 1,460,848 | |||||||||||||||
Transfers between geographic areas | 23,965 | 2,682 | 5,621 | 9,183 | 10,707 | 4,209 | (56,367 | ) | — | |||||||||||||||
Total revenues | $ | 401,071 | 46,528 | 25,953 | 737,313 | 224,319 | 82,031 | (56,367 | ) | 1,460,848 | ||||||||||||||
Net revenues | $ | 177,934 | 20,701 | 15,103 | 141,487 | 73,926 | 24,764 | — | 453,915 | |||||||||||||||
Operating income | $ | 53,734 | 5,789 | 4,763 | 59,438 | 17,707 | 5,799 | — | 147,230 | |||||||||||||||
Identifiable assets | $ | 1,427,414 | 86,371 | 57,960 | 659,352 | 452,675 | 153,236 | (276 | ) | 2,836,732 | ||||||||||||||
Capital expenditures | $ | 4,030 | 160 | 156 | 4,712 | 11,706 | 361 | — | 21,125 | |||||||||||||||
Depreciation and amortization | $ | 4,985 | 303 | 269 | 1,969 | 1,110 | 538 | — | 9,174 | |||||||||||||||
Equity | $ | 1,124,913 | 47,793 | 30,981 | 407,053 | 181,245 | 89,422 | (32,287 | ) | 1,849,120 |
HJJ^J<5 M=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5 M=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5 M=BK\R_S"_P"4^\R_]M6^_P"HE\58_BK]-/R\_P"4`\L_]LJQ_P"H9,59!BKL M5?/_`/SD7_RE&F_\P(_Y//FC[4^L>Y].]A_\6G_7_P!Z'E,<TAU).'":Q#F?YW_'?O>H9LGCW8J[%78J[%78J[%78J M[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J M[%78J[%78J[%78J[%78J[%4F\W>+OE'0I]<\P7B66GP4!=MV=S7C'&@^)W M:FRC]6*O/;'S[^=?FV$7WE#RG8:)HTHY6=]YHGF66=#NK_5;0&2,'M4D'J#3 M%5NH?F1^;_DV/Z[YX\I6FI:'&`;W5_+,\DOU=?VG:UN0)2HW)-0`.IQ5GUAY M[\IZAY0E\WV.H)<^7H;:6\FO(PS<(H$+R\D`YAD"FJ4Y>V*I_BKL58!^?W_D MFO-G_,"W_$EQ5^=6*NQ5]U?\XA?^2;MO^8Z[_P")#%7M6*NQ5V*NQ5V*NQ5V M*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V M*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V*NQ5V M*NQ5V*OS+_,+_E/O,O\`VU;[_J)?%6/XJ_33\O/^4`\L_P#;*L?^H9,59!BK ML5>`?\Y$(S^:M+1`6=K(!5`J23,]`!FC[4^L>Y]-]B"!ILA/\_\`WH9=^4GY M4QZ'#%KFM1!M:E7E;V[C:V5AX?[\(Z_R]/',K1:+@]4OJ^YT?M+[1G4$X<)_ M=#F?YW_'?OYO4 .*IYY3\TZ1YJ\N6'F'1Y&DT[4(_4@9UXN*,5 M967LRNI4^XQ5-L5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5 M=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5=BKL5>&V5B/S-_/;5;G4QZ_E3\NVCM M=.L6KZ4NJO\`%),Z[AC$R,*>R>]5534M=\^-_P`Y!1^1(?-M_;:%=:6VI@16 M^EF:.3DX$:2264G[L
?%AO=+N'6.35HHU@G@+&GJ2)'QB=!^T%52!OOTQ5]?@A@"#
M4'<$=",5>0?F?Y1\U:#YRMOS3\C6AU#488?JOF;04-&U"R6E&CI6LT844`!)
MHM`:<650'E23\C/.?F)/.-IK5U:^;HZQR6]YJ5Q:WUO4GE;^@\JCTU+%>*53
MMBJ(_.'S#^1_UW3=4UFX_2?FW36IH=MH=PYU-I&-4C!M6!52VZ^H:=:;D@JK
M?(WE?SO`_F7\VO-&G"?SQ?V$RZ#Y<4D_5;6%#)#:5H:23.JAJ;CYLPQ5[1BK
ML58!^?W_`))KS9_S`M_Q)<5?G5BKL5?7O_.)GYI^2-/\B2>6-7U6VTK5+6\E
MFC2\E6!)HI@K!HWD*J6#`@K6N*OH+_%GE7_J\V/_`$DP_P#-6*N_Q9Y5_P"K
MS8_]),/_`#5BKO\`%GE7_J\V/_23#_S5BJ&U'S_Y&TVU>ZOO,.G6]NGVI)+J
M$#Y#XJD^PQ5\D_\`.2?_`#D)8^=HH_*WE9W/EV&037M\ZF,W C
M8J[%78J[%78J[%7YD>?)DF\\^8IHS6.34[QT/39KAR,52+%7W;_SB-"\?Y,6
M3MTEO+MT^0EX?K4XJ]GQ5\E_\YQ_\=7RC_Q@O?\`B<.*OE_%7V!_SA#_`,HM
MYE_YCH?^3.*OI3%78J[%78J[%78J[%7A_P":O_.*ODSS UO
M;6SCU,HOUGT/3F)C]6G+@6^+C6E=\5>C_GCY7\NZU^6GF.ZU73K>]NM*TG4+
MK3;B5`TEO,ELSAXG^TGQ1J30[T%<527\B]-?5?\`G'G0].6[GL7N[*YA6]M7
MX3PE[B50\;=F7J,5>0?D'^1WD_\`,?\`+%K[S';_+?E+1I-9\Q7\>GZ=&
MP0S2UF2>!_L2Q,'0]MF4D'%57%78J[%78J[%78J[%78J[%78J[%78J[%78J[%7
M8J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%78J[%6*>?_S.\G>1
M-)EO]>OXXI50M;Z>C*UU.W98HJ\C4[