-----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, LRJsE/ty49IMGd5rsy6LUPAHJKntbq/KfVSmPSt1WkndeKXorsEp5iG/mp/NmTQb e4i/Ok+c+EEU4GSb7jwmHQ== 0001047469-98-020808.txt : 19980518 0001047469-98-020808.hdr.sgml : 19980518 ACCESSION NUMBER: 0001047469-98-020808 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXPEDITORS INTERNATIONAL OF WASHINGTON INC CENTRAL INDEX KEY: 0000746515 STANDARD INDUSTRIAL CLASSIFICATION: ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731] IRS NUMBER: 911069248 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-13468 FILM NUMBER: 98625841 BUSINESS ADDRESS: STREET 1: 19119 16TH AVE S STREET 2: P.O.BOX 69620 CITY: SEATTLE STATE: WA ZIP: 98188 BUSINESS PHONE: 206-246-3711 MAIL ADDRESS: STREET 1: 19119 16TH AVENUE SOUTH STREET 2: P.O.BOX 69620 CITY: SEATTLE STATE: WA ZIP: 98168-9620 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _______________ Commission File Number: 0-13468 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. (Exact name of registrant as specified in its charter) Washington 91-1069248 (State of other jurisdiction of incorporation or organization) (IRS Employer Identification Number) 999 Third Avenue, Suite 2500, Seattle, Washington 98104 (Address of principal executive offices) (Zip Code) (206) 674-3400 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No At April 30, 1998, the number of shares outstanding of the issuer's Common Stock was 24,583,004. Page 1 of 14 pages. The Exhibit Index appears on page 14. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except share data)
March 31, December 31, ASSETS 1998 1997 --------- ------------ (Unaudited) Current assets: Cash and cash equivalents $ 55,937 $ 42,094 Short-term investments 341 214 Accounts receivable, less allowance for doubtful accounts of $6,787 at March 31, 1998 and $6,449 at December 31, 1997 177,861 206,501 Deferred Federal and state taxes 4,804 4,296 Other current assets 5,553 6,399 --------- ------------ Total current assets 244,496 259,504 Property and equipment, less accumulated depreciation and amortization of $39,615 at March 31, 1998 and $36,475 at December 31, 1997 77,150 66,550 Deferred Federal and state taxes 2,259 1,930 Other assets, net 16,139 16,122 --------- ------------ $ 340,044 $ 344,106 --------- ------------ --------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short term borrowings $ 1,091 $ 2,145 Accounts payable 127,814 143,980 Income taxes 9,280 7,181 Other current liabilities 22,068 18,946 --------- ------------ Total current liabilities 160,253 172,252 Shareholders' equity: Preferred stock, par value $.01 per share. Authorized 2,000,000 shares; none issued -- -- Common stock, par value $.01 per share. Authorized 80,000,000 shares; issued and outstanding 24,575,944 shares at March 31, 1998, and 24,546,380 at December 31, 1997 246 245 Additional paid-in capital 15,973 15,534 Retained earnings 167,259 159,225 Accumulated other comprehensive income (3,687) (3,150) --------- ------------ Total shareholders' equity 179,791 171,854 --------- ------------ $ 340,044 $ 344,106 --------- ------------ --------- ------------
See accompanying notes to consolidated financial statements. 2 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (In thousands, except share data) (Unaudited)
Three months ended March 31, ------------------------ 1998 1997 ---- ---- Revenues: Airfreight $147,147 $134,928 Ocean freight 45,329 39,810 Customs brokerage and import services 30,873 21,231 ---------- ---------- Total revenues 223,349 195,969 ---------- ---------- Operating expenses: Airfreight consolidation 115,642 109,304 Ocean freight consolidation 31,943 28,947 Salaries and related costs 42,456 32,730 Selling and promotion 3,418 2,880 Rent 3,479 2,411 Depreciation and amortization 3,264 2,382 Other 10,448 8,734 ---------- ---------- Total operating expenses 210,650 187,388 ---------- ---------- Operating income 12,699 8,581 Other income, net 325 461 ---------- ---------- Earnings before income taxes 13,024 9,042 Income tax expense 4,990 3,444 ---------- ---------- Net earnings $ 8,034 $ 5,598 ---------- ---------- ---------- ---------- Basic Earnings per share $.33 $.23 ---------- ---------- ---------- ---------- Diluted Earnings per share $.30 $.22 ---------- ---------- ---------- ---------- Weighted average Basic common shares outstanding 24,561,119 24,253,193 ---------- ---------- ---------- ---------- Weighted average Diluted common shares outstanding 26,557,418 25,996,372 ---------- ---------- ---------- ----------
See accompanying notes to consolidated financial statements. 3 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
Three months ended March 31, ------------------------ 1998 1997 ---- ---- Operating Activities: Net earnings $ 8,034 $ 5,598 Adjustments to reconcile net earnings to net cash provided by operating activities: Provision for losses on accounts receivable 515 773 Deferred income tax (benefit) expense (70) 111 Depreciation and amortization 3,264 2,382 Other 210 151 Changes in operating assets and liabilities: Decrease in accounts receivable 27,400 2,665 Decrease (Increase) in other current assets 800 (239) (Decrease) Increase in accounts payable and other current liabilities (10,834) 6,967 ---------- ---------- Net cash provided by operating activities 29,319 18,408 ---------- ---------- Investing Activities: (Increase) Decrease in short-term investments (88) 5 Purchase of property and equipment (14,208) (11,556) Other 192 545 ---------- ---------- Net cash used in investing activities (14,104) (11,006) ---------- ---------- Financing Activities: Short-term borrowings, net (1,005) (549) Proceeds from issuance of common stock 271 507 Repurchases of common stock (271) (6) ---------- ---------- Net cash used in financing activities (1,005) (48) Effect of exchange rate changes on cash (367) (643) ---------- ---------- Increase in cash and cash equivalents 13,843 6,711 Cash and cash equivalents at beginning of period 42,094 36,966 ---------- ---------- Cash and cash equivalents at end of period $ 55,937 $ 43,677 ---------- ---------- ---------- ----------
See accompanying notes to consolidated financial statements. 4 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies The attached condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The Company believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Certain 1997 amounts have been reclassified to conform to the 1998 presentation. These condensed consolidated financial statements should be read in conjunction with the financial statements and related notes included in the Company's 10-K as filed with the Securities and Exchange Commission on or about March 31, 1998. Deferred income taxes of $1,930, related to equity adjustments from foreign currency translation at December 31, 1997, have been reclassified from previously reported amounts. Certain other 1997 amounts have been reclassified to conform with the 1998 presentation. Note 2. Comprehensive Income Effective January 1, 1998, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income", which establishes standards for the reporting of comprehensive income and its components in financial statements. Comprehensive income consists of net income and other gains and losses affecting shareholders' equity that, under generally accepted accounting principles, are excluded from net income. For the Company, these consist of foreign currency translation gains and losses, net of related income tax effects. The components of total comprehensive income for interim periods are presented in the following table:
Three Months Ended March 31, (Dollars in thousands) 1998 1997 ------ ------ Net income $8,034 $5,598 Foreign currency translation adjustments net of tax of $329 and $336 (537) (548) ------ ------ Total comprehensive income $7,497 $5,050 ------ ------ ------ ------
Note 3. Earnings per Share The following table is a reconciliation of the numerators and denominators used in computing earnings per share for the first quarter of 1998 and 1997:
Weighted (Amounts in Thousands, except Net Average Earnings Share and Per Share amounts) Earnings Shares Per Share -------- ---------- --------- 1998 - ---- Basic Earnings per share $8,034 24,561,119 $.33 Effect of dilutive stock options 1,996,299 ---------- Diluted earnings per share $8,034 26,557,418 $.30 -------- ---------- --------- -------- ---------- --------- 1997 - ---- Basic Earnings per share $5,598 24,253,193 $.23 Effect of dilutive stock options 1,473,179 ---------- Diluted earnings per share $5,598 26,557,418 $.22 -------- ---------- --------- -------- ---------- ---------
Note 4. Recent Accounting Pronouncements In March 1998, the American Institute of Certified Public Accountants issued Statement of Position No. 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," (SOP 98-1). The Company will be required to adopt SOP 98-1 effective January 1, 1999. SOP 98-1 provides, among other things, guidance for determining whether computer software is for internal use and when the cost related to such software should be expensed as incurred or capitalized and amortized. Management is currently evaluating the provisions of SOP 98-1 but does not expect that the adoption of this pronouncement will significantly impact the Company's future results of operations. In June 1997, SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information," was issued. SFAS No. 131 establishes standards for the way that public companies report selected information about operating segments in annual financial statements and requires that such companies report selected information about segments in interim reports to shareholders. SFAS No. 131 is effective for financial statements issued for periods beginning after December 15, 1997. This statement is not required to be applied to interim financial statements in the initial year of its application. The Company has not yet determined the effects, if any, that SFAS No. 131 will have on the disclosures in its consolidated financial statements. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS UNDER SECURITIES LITIGATION REFORM ACT OF 1995; CERTAIN CAUTIONARY STATEMENTS Certain portions of this report on Form 10-Q including the section entitled "Currency and Other Risk Factors" and "Liquidity and Capital Resources" contain forward-looking statements which must be considered in connection with the discussion of the important factors that could cause actual results to differ materially from the forward-looking statements. In addition to risk factors identified elsewhere in this report, attention should be given to the factors identified and discussed in the report on Form 10-K filed on or about March 31, 1998. GENERAL Expeditors International of Washington, Inc. is engaged in the business of global logistics management, including international freight forwarding and consolidation, for both air and ocean freight. The Company also acts as a customs broker in all domestic offices, and in many of its overseas offices. The Company also provides additional services for its customers including value added distribution, purchase order management, vendor consolidation and other logistics solutions. The Company offers domestic forwarding services only in conjunction with international shipments. The Company does not compete for overnight courier or small parcel business. The Company does not own or operate aircraft or steamships. International trade is influenced by many factors, including economic and political conditions in the United States and abroad, currency exchange rates, and United States and foreign laws and policies relating to tariffs, trade restrictions, foreign investments and taxation. Periodically, governments consider a variety of changes to current tariffs and trade restrictions. The Company cannot predict which, if any, of these proposals may be adopted, nor can the Company predict the effects adoption of any such proposal will have on the Company's business. Doing business in foreign locations also subjects the Company to a variety of risks and considerations not normally encountered by domestic enterprises. In addition to being affected by governmental policies concerning international trade, the Company's business may also be affected by political developments and changes in government personnel or policies in the nations in which it does business. The Company's ability to provide services to its customers is highly dependant on good working relationships with a variety of entities including airlines, ocean steamship lines, and governmental agencies. The Company considers its current working relationships with these entities to be satisfactory. However, changes in space allotments available from carriers, governmental deregulation efforts, "modernization" of the regulations governing customs brokerage, and/or changes in governmental quota restrictions could affect the Company's business in unpredictable ways. Historically, the Company's operating results have been subject to a seasonal trend when measured on a quarterly basis. The first quarter has traditionally been the weakest and the third quarter has traditionally been the strongest. This pattern is the result of, or is influenced by, numerous factors including climate, national holidays, consumer demand, economic conditions and a myriad of other similar and subtle forces. In addition, this historical quarterly trend has been influenced by the growth and diversification of the Company's international network and service offerings. The Company cannot accurately forecast many of these factors nor can the Company estimate accurately the relative influence of any particular factor and, as a result, there can be no assurance that historical patterns, if any, will continue in future periods. 6 A significant portion of the Company's revenues are derived from customers in industries whose shipping patterns are tied closely to consumer demand, and from customers in industries whose shipping patterns are dependent upon just-in-time production schedules. Therefore, the timing of the Company's revenues are, to a large degree, impacted by factors out of the Company's control, such as a sudden change in consumer demand for retail goods and/or manufacturing production delays. Additionally, many customers ship a significant portion of their goods at or near the end of a quarter, and therefore, the Company may not learn of a shortfall in revenues until late in a quarter. To the extent that a shortfall in revenues or earnings was not expected by securities analysts, any such shortfall from levels predicted by securities analysts could have an immediate and adverse effect on the trading price of the Company's stock. RESULTS OF OPERATIONS The following table shows the consolidated net revenues (revenues less consolidation expenses) attributable to the Company's principal services and the Company's expenses for the three-month periods ended March 31, 1998 and 1997, expressed as percentages of net revenues. With respect to the Company's services other than consolidation, net revenues are identical to revenues. Management believes that net revenues are a better measure than total revenues of the relative importance of the Company's principal services since total revenues earned by the Company as a freight consolidator include the carriers' charges to the Company for carrying the shipment whereas revenues earned by the Company in its other capacities include only the commissions and fees actually earned by the Company. 7 The table and the accompanying discussion and analysis should be read in conjunction with the condensed consolidated financial statements and related notes thereto which appear elsewhere in this Quarterly Report.
Three months ended March 31, 1998 1997 ------------------------------------------------------ Percent Percent of net of net Amount revenues Amount revenues ------- -------- -------- --------- (Amounts in thousands) Net Revenues: Airfreight $31,505 41% $25,624 44% Ocean freight 13,386 18 10,863 19 Customs brokerage and import services 30,873 41 21,231 37 ------- -- -------- -- Net revenues 75,764 100 57,718 100 ------- --- -------- --- Operating expenses: Salaries and related costs 42,456 56 32,330 56 Other 20,609 27 16,807 29 ------- -- -------- -- Total operating expenses 63,065 83 49,137 85 ------- -- -------- -- Operating income 12,699 17 8,581 15 Other income, net 325 0 461 1 ------- -- -------- -- Earnings before income taxes 13,024 17 9,042 16 Income tax expense 4,990 6 3,444 6 ------- -- -------- -- Net earnings $8,034 11% $5,598 10% ------- --- -------- --- ------- --- -------- ---
Airfreight net revenues increased 23% for the three-month period ended March 31, 1998 as compared with the same period for 1997. This increase was primarily due to increased airfreight tonnage handled by the Company's expanding global network. Ocean freight net revenues increased 23% for the three-month period ended March 31, 1998 as compared with the same period for 1997. The Company continued to aggressively market competitive ocean freight rates primarily on freight moving eastbound from the Far East. The ocean forwarding business and ECMS (Expeditors Cargo Management Systems), the Company's ocean freight consolidation management and purchase order tracking service, were instrumental in helping the Company to expand its market share. 8 Customs brokerage and import services increased 45% for the three-month period ended March 31, 1998 as compared with the same period for 1997. This increase is the result of 1) the Company's entry into the truck and rail border brokerage business in the United States, 2) the Company's growing reputation for providing high quality service, 3) consolidation within the customs brokerage market as customers seek out brokers with sophisticated computerized capabilities critical to an overall logistics management program, and 4) the growing importance of distribution services, which is included in this category, as a separate and distinct service. Salaries and related costs increased during the three-month period ended March 31, 1998 compared with the same period in 1997 as a result of 1) the Company's increased hiring of sales, operations, and administrative personnel in existing and new offices to accommodate increases in business activity and 2) increased compensation levels. Salaries and related costs have, however, remained constant as a percentage of net revenue--a measure that management believes is significant in assessing the effectiveness of corporate cost containment objectives. The relatively consistent relationship between salaries and net revenues is the result of a compensation philosophy that has been maintained since the inception of the Company: offer a modest base salary and the opportunity to share in a fixed and determinable percentage of the operating profit of the business unit controlled by each key employee. Using this compensation model, changes in individual compensation will occur in proportion to changes in Company profits. Management believes that the growth in revenues, net revenue and net income for the three-month periods ended March 31, 1998 and 1997 are a direct result of the incentives inherent in the Company's incentive compensation program. Other operating expenses increased for the three-month period ended March 31, 1998 as compared with the same period in 1997 as rent expense, communications expense, quality and training expenses, and other costs expanded to accommodate the Company's growing operations. Other operating expenses as a percentage of net revenues decreased approximately 2% in the three-month period ended March 31, 1998, as compared with the same period in 1997. This decrease is primarily due to economies of scale realized as the Company's semi-variable other operating expenses were spread over increased net revenues. Other income, net, decreased for the three-month period ended March 31, 1998 as compared with the same period in 1997, principally due to lower interest income on a smaller average cash balance during the period. The primary factor which reduced cash available for investment was the Company's real estate commitments. Cash balances increased towards the end of the first Quarter of 1998, after the payment of peak season trade obligations and after the collection of accounts receivable outstanding as of December 31, 1997. The Company pays income taxes in the United States and other jurisdictions. In addition, the Company pays various other taxes, which are typically included in costs of operations. Effective income tax rates during the three-month period ended March 31, 1998 remained virtually constant as compared with the same period in 1997. 9 Currency and Other Risk Factors International air/ocean freight forwarding and customs brokerage are intensively competitive and are expected to remain so for the foreseeable future. There are a large number of entities competing in the international logistics industry, however, the Company's primary competition is confined to a relatively small number of companies within this group. While there is currently a marked trend within the industry toward consolidation into large firms with multinational office and agency networks, regional and local broker/forwarders remain a competitive force. Historically, the primary competitive factors in the international logistics industry have been price and quality of service, including reliability, responsiveness, expertise, convenience, and scope of operations. The Company emphasizes quality service and believes that its prices are competitive with those of others in the industry. Recently customers have exhibited a trend toward the more sophisticated and efficient procedures for the management of the logistics supply chain by embracing strategies such as just-in-time inventory management. Accordingly, sophisticated computerized customer service capabilities and a stable worldwide network have become significant factors in attracting and retaining customers. Developing these systems and a worldwide network has added a considerable indirect cost to the services provided to customers. Smaller and middle-tier competitors, in general, do not have the resources available to develop customized systems and a worldwide network. As a result, there is a significant amount of consolidation currently taking place in the industry. Management expects that this trend toward consolidation will continue for the short to medium-term. The nature of the Company's worldwide operations necessitates the Company dealing with a multitude of currencies other than the U.S. dollar. This results in the Company being exposed to the inherent risks of the international currency markets and governmental interference. Many of the countries where the Company maintains offices and/or agency relationships have strict currency control regulations which influence the Company's ability to hedge foreign currency exposure. The Company tries to compensate for these exposures by accelerating international currency settlements among these offices or agents. Foreign currency gains and losses recognized during the first quarter of 1998 and 1997 were immaterial. The Company has traditionally generated revenues from airfreight, ocean freight and customs brokerage and import services. In light of the customer-driven trend to provide customer rates on a door-to-door basis, management foresees the potential, in the medium to long-term, for fees normally associated with customs house brokerage to be de-emphasized and included as a component of other services offered by the Company. Sources of Growth Acquisitions - Historically, growth through aggressive acquisition has proven to be a challenge for many of the Company's competitors and typically involves the purchase of significant "goodwill", the value of which can be realized in large measure only by retaining the customers and profit margins of the acquired business. As a result, the Company has pursued a strategy emphasizing organic growth supplemented by certain strategic acquisitions, where future economic benefit significantly exceeds the "goodwill" recorded in the transaction. 10 Office Openings - The Company opened one start-up office during the first quarter of 1998. LATIN AMERICA Buenos Aires Internal Growth - Management believes that a comparison of "same store" growth is critical in the evaluation of the quality and extent of the Company's internally generated growth. This "same store" analysis isolates the financial contributions from offices that have been included in the Company's operating results for at least one full year. The table below presents "same store" comparisons for the first quarter of 1998 (which is the measure of any increase from the same quarter of 1997) and for the first quarter of 1997 (which measures growth over 1996).
For the three months ended March 31, 1998 1997 ---- ---- Net revenue 22% 30% Operating income 39% 50%
Liquidity and Capital Resources The Company's principal source of liquidity is cash generated from operations. At March 31, 1998, working capital was $84 million, including cash and short-term investments of $56 million. The Company had no long-term debt at March 31, 1998. While the nature of its business does not require an extensive investment in property and equipment, the Company is actively looking for suitable facilities and/or property to acquire at or near airports in certain cities in North America and overseas. The Company expects to spend approximately $40 million on property and equipment in 1998, which is expected to be financed with cash, short-term floating rate and/or long-term fixed-rate borrowings. The Company maintains foreign and domestic borrowings under unsecured bank lines of credit totaling $31.27 million. At March 31, 1998, the Company was directly liable for $.11 million drawn on these lines of credit and was contingently liable for an additional $17.875 million from standby letters of credit. In addition, the Company maintains a bank facility with its U.K. bank for $8.38 million. Management believes that the Company's current cash position, bank financing arrangements, and operating cash flows will be sufficient to meet its capital and liquidity requirements for the foreseeable future. 11 In some cases, the Company's ability to repatriate funds from foreign operations may be subject to foreign exchange controls. In addition, certain undistributed earnings of the Company's subsidiaries accumulated through December 31, 1992 would, under most circumstances, be subject to some additional United States income tax if distributed to the Company. The Company has not provided for this additional tax because the Company intends to reinvest such earnings to fund the expansion of its foreign activities, or to distribute them in a manner in which no significant additional taxes would be incurred. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The Company is ordinarily involved in claims and lawsuits which arise in the normal course of business, none of which currently, in management's opinion, will have a significant effect on the Company's financial condition. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits required by Item 601 of Regulation S-K. Exhibit Number Description ------- ----------- Exhibit 27.1 Financial Data Schedule, EDGAR filing only. Exhibit 27.2 Financial Data Schedule, EDGAR filing only. Exhibit 27.3 Financial Data Schedule, EDGAR filing only. (b) Reports on Form 8-K No reports on Form 8-K were filed in the quarter ended March 31, 1998. 12 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 thereunto duly authorized. EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. May 14, 1998 /s/ PETER J. ROSE ------------------------------------------------- Peter J. Rose, Chairman and Chief Executive Officer (Principal Executive Officer) May 14, 1998 /s/ R. JORDAN GATES ------------------------------------------------- R. Jordan Gates, Senior Vice President-Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) 13 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Form 10-Q Index and Exhibits March 31, 1998 Exhibit Number Description Page Number - ------- ----------- ----------- 27.1 Financial Data Schedule (Filed Electronically Only). 27.2 Financial Data Schedule Restatement (Filed Electronically Only). 27.3 Financial Data Schedule Restatement (Filed Electronically Only). EX-27.1 2 EXHIBIT 27.1
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT 3-31-98 AND CONSOLIDATED STATEMENT OF INCOME FOR THE 3 MONTHS ENDED 3-31-98 AND THE RELATED NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THAT ARE CONTAINED IN THE COMPANY'S 1998 1ST QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 55,937 341 184,648 6,787 0 244,496 116,765 39,615 337,785 160,253 0 0 0 246 177,286 337,785 0 223,349 0 147,585 63,065 0 0 13,024 4,990 8,034 0 0 0 8,034 $ .33 $ .30
EX-27.2 3 EXHIBIT 27.2
5 1,000 3-MOS 6-MOS 9-MOS YEAR DEC-31-1997 DEC-31-1997 DEC-31-1997 DEC-31-1996 JAN-01-1997 JAN-01-1997 JAN-01-1997 JAN-01-1996 MAR-31-1997 JUN-30-1997 SEP-30-1997 DEC-31-1996 43,677 44,586 47,416 36,966 348 2,437 357 357 171,151 188,897 230,408 173,810 5,438 6,022 6,243 5,047 0 0 0 0 219,839 241,687 286,620 215,443 79,032 90,415 96,173 74,614 29,827 32,905 34,427 28,368 278,572 314,494 363,454 271,986 132,520 161,117 200,227 131,975 0 0 0 0 0 0 0 0 0 0 0 0 243 243 245 242 145,809 153,134 162,982 139,769 278,572 314,494 363,454 271,986 0 0 0 0 195,969 421,544 683,853 730,088 0 0 0 0 138,251 295,657 477,786 527,753 49,137 104,490 165,712 164,910 0 0 0 0 0 0 0 0 9,042 22,426 41,479 39,584 3,444 8,654 15,930 15,321 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,598 13,772 25,549 24,263 .23 .57 1.05 1.00 .22 .53 .97 .95
EX-27.3 4 EXHIBIT 27.3
5 1,000 3-MOS 6-MOS 9-MOS YEAR DEC-31-1996 DEC-31-1996 DEC-31-1996 DEC-31-1995 JAN-01-1996 JAN-01-1996 JAN-01-1996 JAN-01-1995 MAR-31-1996 JUN-30-1996 SEP-30-1996 DEC-31-1995 42,528 35,491 41,427 36,142 197 2,074 471 457 127,894 148,435 165,781 127,600 4,114 4,517 4,363 3,807 0 0 0 0 175,882 192,066 213,707 168,367 50,358 66,060 68,618 49,041 22,472 24,075 26,072 20,799 211,132 244,530 266,913 204,128 89,875 118,654 133,024 86,936 0 0 0 0 0 0 0 0 0 0 0 0 240 242 242 240 121,017 125,634 133,647 116,952 211,132 244,530 266,913 204,128 0 0 0 0 137,670 303,876 508,768 584,691 0 0 0 0 96,938 216,014 364,673 430,618 35,182 73,931 118,082 127,222 0 0 0 0 0 0 0 0 6,153 15,083 27,624 28,399 2,364 5,923 10,784 11,004 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,789 9,160 16,840 17,395 .15 .37 .65 .73 .15 .36 .66 .69
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