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)) | |
May 6, 2015 | /S/ Bradley S. Powell | |
Bradley S. Powell, Senior Vice President and Chief Financial Officer | ||
CONTACTS: | R. Jordan Gates Bradley S. Powell |
Three months ended March 31, | |||||||||
2015 | 2014 | % Change | |||||||
Revenues | $ | 1,677,526 | $ | 1,491,645 | 12% | ||||
Net revenues1 | $ | 529,486 | $ | 464,586 | 14% | ||||
Operating income | $ | 168,883 | $ | 135,203 | 25% | ||||
Net earnings attributable to shareholders | $ | 106,704 | $ | 83,824 | 27% | ||||
Diluted earnings attributable to shareholders per share | $ | 0.55 | $ | 0.42 | 31% | ||||
Basic earnings attributable to shareholders per share | $ | 0.56 | $ | 0.42 | 33% | ||||
Diluted weighted average shares outstanding | 192,707,093 | 201,843,858 | |||||||
Basic weighted average shares outstanding | 191,627,750 | 201,118,390 |
Employee headcount as of March 31, | |||||
2015 | 2014 | ||||
North America | 5,399 | 4,926 | |||
Europe | 2,552 | 2,273 | |||
North Asia | 2,476 | 2,540 | |||
Middle East, Africa and India | 1,369 | 1,353 | |||
South Asia | 1,289 | 1,287 | |||
Latin America | 784 | 713 | |||
Information Systems | 705 | 645 | |||
Corporate | 308 | 280 | |||
Total | 14,882 | 14,017 |
Year-over-year percentage increase (decrease) in: | ||||||
Airfreight kilos | Ocean freight FEU | |||||
2015 | ||||||
January | 13 | % | 8 | % | ||
February | 18 | % | 42 | % | ||
March | 9 | % | (6 | )% | ||
Quarter | 13 | % | 12 | % |
March 31, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,033,144 | $ | 927,107 | |||
Short-term investments | 61 | 40,336 | |||||
Accounts receivable, net | 1,253,639 | 1,236,042 | |||||
Deferred Federal and state income taxes | 20,402 | 20,279 | |||||
Other current assets | 44,914 | 65,486 | |||||
Total current assets | 2,352,160 | 2,289,250 | |||||
Property and equipment, net | 528,988 | 538,415 | |||||
Goodwill | 7,927 | 7,927 | |||||
Other assets, net | 54,703 | 55,313 | |||||
$ | 2,943,778 | $ | 2,890,905 | ||||
Liabilities and Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | 749,246 | 770,238 | |||||
Accrued expenses, primarily salaries and related costs | 203,810 | 192,468 | |||||
Federal, state and foreign income taxes | 26,163 | 21,077 | |||||
Total current liabilities | 979,219 | 983,783 | |||||
Deferred Federal and state income taxes | 37,028 | 35,514 | |||||
Commitments and contingencies | |||||||
Shareholders’ Equity: | |||||||
Preferred stock; none issued | — | — | |||||
Common stock, par value $0.01 per share. Issued and outstanding 191,120,214 shares at March 31, 2015 and 191,655,690 shares at December 31, 2014 | 1,911 | 1,916 | |||||
Additional paid-in capital | 5,241 | 1,113 | |||||
Retained earnings | 1,974,830 | 1,903,196 | |||||
Accumulated other comprehensive loss | (57,091 | ) | (37,817 | ) | |||
Total shareholders’ equity | 1,924,891 | 1,868,408 | |||||
Noncontrolling interest | 2,640 | 3,200 | |||||
Total equity | 1,927,531 | 1,871,608 | |||||
$ | 2,943,778 | $ | 2,890,905 |
06-May-2015 | Expeditors International of Washington, Inc. | Page 3 of 7 |
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Revenues: | |||||||
Airfreight services | $ | 707,444 | $ | 647,138 | |||
Ocean freight and ocean services | 565,717 | 469,224 | |||||
Customs brokerage and other services | 404,365 | 375,283 | |||||
Total revenues | 1,677,526 | 1,491,645 | |||||
Operating Expenses: | |||||||
Airfreight services | 513,001 | 482,882 | |||||
Ocean freight and ocean services | 445,456 | 367,375 | |||||
Customs brokerage and other services | 189,583 | 176,802 | |||||
Salaries and related costs | 278,878 | 255,942 | |||||
Rent and occupancy costs | 25,388 | 25,162 | |||||
Depreciation and amortization | 11,529 | 12,382 | |||||
Selling and promotion | 9,247 | 8,173 | |||||
Other | 35,561 | 27,724 | |||||
Total operating expenses | 1,508,643 | 1,356,442 | |||||
Operating income | 168,883 | 135,203 | |||||
Other Income (Expense): | |||||||
Interest income | 2,732 | 2,697 | |||||
Other, net | 34 | (281 | ) | ||||
Other income, net | 2,766 | 2,416 | |||||
Earnings before income taxes | 171,649 | 137,619 | |||||
Income tax expense | 64,317 | 53,424 | |||||
Net earnings | 107,332 | 84,195 | |||||
Less net earnings attributable to the noncontrolling interest | 628 | 371 | |||||
Net earnings attributable to shareholders | $ | 106,704 | $ | 83,824 | |||
Diluted earnings attributable to shareholders per share | $ | 0.55 | $ | 0.42 | |||
Basic earnings attributable to shareholders per share | $ | 0.56 | $ | 0.42 | |||
Weighted average diluted shares outstanding | 192,707,093 | 201,843,858 | |||||
Weighted average basic shares outstanding | 191,627,750 | 201,118,390 |
06-May-2015 | Expeditors International of Washington, Inc. | Page 4 of 7 |
Three months ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 107,332 | $ | 84,195 | |||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Provision for losses (recoveries) on accounts receivable | 277 | (1,115 | ) | ||||
Deferred income tax expense | 11,937 | 7,194 | |||||
Excess tax benefits from stock plans | (1,480 | ) | (489 | ) | |||
Stock compensation expense | 9,907 | 10,294 | |||||
Depreciation and amortization | 11,529 | 12,382 | |||||
Other | 86 | 138 | |||||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in accounts receivable | (46,790 | ) | 12,228 | ||||
Increase in accounts payable and accrued expenses | 14,895 | 29,546 | |||||
Increase in income taxes payable, net | 23,132 | 18,205 | |||||
Decrease in other current assets | 3,569 | 1,279 | |||||
Net cash from operating activities | 134,394 | 173,857 | |||||
Investing Activities: | |||||||
Decrease (increase) in short-term investments, net | 40,274 | (60,154 | ) | ||||
Purchase of property and equipment | (9,445 | ) | (8,760 | ) | |||
Other, net | 198 | 1,670 | |||||
Net cash from investing activities | 31,027 | (67,244 | ) | ||||
Financing Activities: | |||||||
Proceeds from issuance of common stock | 35,048 | 7,892 | |||||
Repurchases of common stock | (77,368 | ) | (226,725 | ) | |||
Excess tax benefits from stock plans | 1,480 | 489 | |||||
Distribution to noncontrolling interest | (857 | ) | (85 | ) | |||
Net cash from financing activities | (41,697 | ) | (218,429 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (17,687 | ) | (4,790 | ) | |||
Increase (decrease) in cash and cash equivalents | 106,037 | (116,606 | ) | ||||
Cash and cash equivalents at beginning of period | 927,107 | 1,247,652 | |||||
Cash and cash equivalents at end of period | $ | 1,033,144 | $ | 1,131,046 | |||
Taxes paid: | |||||||
Income taxes | $ | 28,261 | $ | 27,496 |
06-May-2015 | Expeditors International of Washington, Inc. | Page 5 of 7 |
UNITED STATES | OTHER NORTH AMERICA | LATIN AMERICA | NORTH ASIA | SOUTH ASIA | EUROPE | MIDDLE EAST, AFRICA and INDIA | ELIMI- NATIONS | CONSOLI- DATED | |||||||||||||||||||
Three months ended March 31, 2015: | |||||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 444,181 | 54,794 | 24,081 | 645,444 | 181,381 | 242,086 | 85,559 | — | 1,677,526 | |||||||||||||||||
Transfers between geographic areas | 27,675 | 2,814 | 4,777 | 5,697 | 5,915 | 9,637 | 5,067 | (61,582 | ) | — | |||||||||||||||||
Total revenues | $ | 471,856 | 57,608 | 28,858 | 651,141 | 187,296 | 251,723 | 90,626 | (61,582 | ) | 1,677,526 | ||||||||||||||||
Net revenues | $ | 219,603 | 30,678 | 16,559 | 117,405 | 42,200 | 75,888 | 27,153 | — | 529,486 | |||||||||||||||||
Operating income | $ | 59,181 | 11,091 | 5,356 | 57,056 | 13,880 | 15,071 | 7,248 | — | 168,883 | |||||||||||||||||
Identifiable assets | $ | 1,451,103 | 109,180 | 57,232 | 541,983 | 143,910 | 430,338 | 198,954 | 11,078 | 2,943,778 | |||||||||||||||||
Capital expenditures | $ | 6,325 | 288 | 617 | 290 | 319 | 1,148 | 458 | — | 9,445 | |||||||||||||||||
Depreciation and amortization | $ | 7,393 | 292 | 268 | 1,399 | 530 | 1,246 | 401 | — | 11,529 | |||||||||||||||||
Equity | $ | 1,182,808 | 58,998 | 34,604 | 306,775 | 106,139 | 154,343 | 120,086 | (36,222 | ) | 1,927,531 | ||||||||||||||||
Three months ended March 31, 2014: | |||||||||||||||||||||||||||
Revenues from unaffiliated customers | $ | 400,739 | 51,584 | 20,629 | 568,689 | 140,743 | 233,683 | 75,578 | — | 1,491,645 | |||||||||||||||||
Transfers between geographic areas | 20,011 | 2,375 | 5,204 | 5,417 | 6,550 | 9,319 | 4,542 | (53,418 | ) | — | |||||||||||||||||
Total revenues | $ | 420,750 | 53,959 | 25,833 | 574,106 | 147,293 | 243,002 | 80,120 | (53,418 | ) | 1,491,645 | ||||||||||||||||
Net revenues | $ | 192,082 | 26,161 | 15,357 | 93,394 | 39,093 | 74,331 | 24,168 | — | 464,586 | |||||||||||||||||
Operating income | $ | 51,898 | 8,375 | 4,859 | 40,054 | 12,470 | 11,642 | 5,905 | — | 135,203 | |||||||||||||||||
Identifiable assets | $ | 1,437,768 | 105,070 | 61,503 | 545,148 | 151,184 | 437,857 | 183,288 | 3,686 | 2,925,504 | |||||||||||||||||
Capital expenditures | $ | 3,928 | 264 | 301 | 2,660 | 456 | 866 | 285 | — | 8,760 | |||||||||||||||||
Depreciation and amortization | $ | 7,852 | 280 | 212 | 1,502 | 596 | 1,507 | 433 | — | 12,382 | |||||||||||||||||
Equity | $ | 1,151,455 | 69,702 | 32,017 | 333,871 | 112,090 | 188,354 | 108,009 | (35,484 | ) | 1,960,014 |
06-May-2015 | Expeditors International of Washington, Inc. | Page 6 of 7 |
Three months ended | |||||||
March 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Total revenues | $ | 1,677,526 | $ | 1,491,645 | |||
Expenses: | |||||||
Airfreight services | 513,001 | 482,882 | |||||
Ocean freight and ocean services | 445,456 | 367,375 | |||||
Customs brokerage and other services | 189,583 | 176,802 | |||||
Net revenues | $ | 529,486 | $ | 464,586 |
06-May-2015 | Expeditors International of Washington, Inc. | Page 7 of 7 |
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