-----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, UFbdwz9V4xdgDCg46i5HeAELhjBoSKJrQ3tDrMPCv7nPdF+cV7SB25zAz9k8sH/C DlAUz21gHtxMxv/DdTPr9Q== 0001193125-09-163972.txt : 20090805 0001193125-09-163972.hdr.sgml : 20090805 20090804182717 ACCESSION NUMBER: 0001193125-09-163972 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090804 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090805 DATE AS OF CHANGE: 20090804 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13468 FILM NUMBER: 09985031 BUSINESS ADDRESS: STREET 1: 1015 THIRD AVENUE 12TH FLOOR CITY: SEATTLE STATE: WA ZIP: 98104 BUSINESS PHONE: 2066743400 MAIL ADDRESS: STREET 1: 1015 THIRD AVENUE 12TH FLOOR CITY: SEATTLE STATE: WA ZIP: 98104 8-K 1 d8k.htm FORM 8-K Form 8-K

 

 

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: August 4, 2009

(Date of earliest event reported)

 

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Washington   000-13468   91-1069248

(State or other jurisdiction of

incorporation or organization)

   (Commission File No.)  

(IRS Employer

Identification Number)

 

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)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02 Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”

On August 4, 2009, Expeditors International of Washington, Inc., a Washington corporation, issued a press release announcing second quarter 2009 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.

 

(d)    The following items are filed as exhibits to this report:
99.1    Press release, dated August 4, 2009 issued by Expeditors International of Washington, Inc.

 

2

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.
August 4, 2009      

/s/    PETER J. ROSE

        Peter J. Rose, Chairman and Chief Executive Officer
August 4, 2009      

/s/    R. JORDAN GATES

        R. Jordan Gates, President and Chief Operating Officer
August 4, 2009      

/s/    BRADLEY S. POWELL

        Bradley S. Powell, Chief Financial Officer

 

3

INDEX TO EXHIBITS

 

Exhibit No.

   

Description

99.1    Press Release of Expeditors International of Washington, Inc., dated August 4, 2009, reporting second quarter 2009 financial results.

 

4

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

  EARNINGS RELEASE    LOGO

 

By: Expeditors International of Washington, Inc.
   1015 Third Avenue, Suite 1200
   Seattle, Washington 98104

 

CONTACTS:    R. Jordan Gates    Bradley S. Powell
   President and Chief Operating Officer    Chief Financial Officer
   (206) 674-3427    (206) 674-3412

FOR IMMEDIATE RELEASE

 

EXPEDITORS REPORTS SECOND QUARTER 2009 EPS of $.25 PER SHARE 1

SEATTLE, WASHINGTON – August 4, 2009, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced net earnings attributable to shareholders of $54,070,000 for the second quarter of 2009, as compared with $71,249,000 for the same quarter of 2008, a decrease of 24%. Net revenues for the second quarter of 2009 decreased 17% to $330,047,000 as compared with $397,325,000 reported for the second quarter of 2008. Total revenues and operating income were $895,360,000 and $86,927,000 in 2009, as compared with $1,454,255,000 and $112,971,000 for the same quarter of 2008, decreases of 38% and 23%, respectively. Diluted net earnings attributable to shareholders per share for the second quarter were $.25, as compared with $.32 for the same quarter in 2008, a decrease of 22%. The Company also reported that same store net revenues and operating income decreased 17% and 23%, respectively, for the second quarter of 2009 when compared with 2008.

For the six months ended June 30, 2009, net earnings attributable to shareholders was $113,330,000, as compared with $137,721,000 in 2008, a decrease of 18%. Net revenues for the six months decreased to $666,562,000 from $771,653,000 for 2008, down 14%. Total revenues and operating income for the six months were $1,808,045,000 and $178,401,000 in 2009, as compared with $2,761,576,000 and $218,535,000 for the same period in 2008, decreases of 35% and 18%, respectively. Diluted net earnings attributable to shareholders per share for the first two quarters of 2009 were $.52, as compared with $.62 for the same period of 2008, a decrease of 16%. Same store net revenues and operating income decreased 14% and 18%, respectively, for the six months ended June 30, 2009 when compared with same period of 2008.

“While our pre-announcement took away the apprehension traditionally associated with a quarterly earnings release, once the final numbers were in, we still have a pretty good story to tell,” said Peter J. Rose, Chairman and Chief Executive Officer. “There aren’t many companies in today’s environment that can say they have record cash balances ($916 million), have recorded a 136% increase in cash flow provided by operations (compared with the second quarter of 2008), have had no layoffs and remain debt-free. We continue to be well positioned to maintain the value of our people, our culture and our customer relationships. These assets are critical differentiators for us,” Rose continued.

“We are aware of Wall Street’s expectations for the remainder of 2009. We would reiterate that Expeditors’ strategy has never been driven by Wall Street’s expectations. We will continue to invest in our people, in our systems and in our customer service capabilities. Continued focus on these factors is what grows market share and allows us to maintain our long-term positioning in today’s environment.” Rose went on to say. “You can’t go around some challenges; you just have to go through them, and we’re doing that. Expeditors didn’t progress from having 20 employees in 1981 to become a Fortune 500 company in 2007 through the efforts of employees living in constant fear of being laid off. It is our people who are responsible for those accomplishments. We need them all, and the leadership culture that permeates this company, at all levels, now more than ever. Despite published statistics showing record declines in year over year shipping volumes, we continue to attract new customers. As the economy improves, and we believe it will, shippers will ship more. When they do, we expect to reap the benefits of these new relationships,” Rose concluded.

Expeditors is a global logistics company headquartered in Seattle, Washington. The company employs trained professionals in 183 full-service offices, 66 satellite locations and 4 international service centers located on six continents linked into a seamless worldwide network through an integrated information management system. Services include air and ocean freight forwarding, vendor consolidation, customs clearance, marine insurance, distribution and other value added international logistics services.

 

 

1

Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

2nd Quarter 2009 Earnings Release

August 4, 2009

Expeditors International of Washington, Inc.

Financial Highlights

Three months and Six months ended

June 30, 2009 and 2008

Unaudited

(in 000’s except share data)

 

     Three Months Ended June 30,    %
Decrease		     Six Months Ended June 30,    %
Decrease		  
     2009    2008      2009    2008   

Revenues

    $ 895,360    $ 1,454,255    (38 )%    $ 1,808,045    $ 2,761,576    (35 )% 

Net revenues

    $ 330,047    $ 397,325    (17 )%    $ 666,562    $ 771,653    (14 )% 

Operating income

    $ 86,927    $ 112,971    (23 )%    $ 178,401    $ 218,535    (18 )% 

Net earnings attributable to shareholders

    $ 54,070    $ 71,249    (24 )%    $ 113,330    $ 137,721    (18 )% 

Diluted earnings attributable to shareholders

    $ .25    $ .32    (22 )%    $ .52    $ .62    (16 )% 

Basic earnings attributable to shareholders

    $ .25    $ .33    (24 )%    $ .53    $ .65    (18 )% 

Diluted weighted average shares outstanding

      216,653,968      220,515,987        216,519,551      220,490,452   

Basic weighted average shares outstanding

      212,116,679      213,275,229        212,108,636      213,168,730   

During the second quarter of 2009, the Company opened two full-service offices: 1) in Muscat, Sultanate of Oman (formerly an agent location); and 2) Wuhan, People’s Republic of China (formerly a satellite of Chongqing, People’s Republic of China). The Company closed one satellite office in Graz, Austria.

Investors may submit written questions via e-mail to: investor@expeditors.com

Or by fax to: (206) 674-3459

Questions received by the end of business on August 7, 2009 will be considered in management’s 8-K

“Responses to Selected Questions” expected to be filed on or about August 14, 2009.

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements which are based on certain assumptions and expectations of future events that are subject to risks and uncertainties, including comments on future economic trends. Actual future results and trends may differ materially from historical results or those projected in any forward-looking statements depending on a variety of factors including, but not limited to, our ability to maintain consistent and stable operating results, future success of our business model, ability to perpetuate profits, changes in customer demand for Expeditors’ services caused by a general economic slow-down, inventory build-up, decreased consumer confidence, volatility in equity markets, energy prices, political changes, or the unpredictable acts of competitors and other risks, risk factors and uncertainties detailed in our Annual and Quarterly Reports filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

 

      June 30,
2009		     December 31,
2008		  
Assets     

Current assets:

     

Cash and cash equivalents

    $ 915,982      $ 741,028   

Short-term investments

      636        658   

Accounts receivable, net

      577,302        788,176   

Deferred Federal and state income taxes

      8,506        7,986   

Other current assets

      32,482        35,511   
                

Total current assets

      1,534,908        1,573,359   
                

Property and equipment, net

      496,362        493,129   

Goodwill, net

      7,927        7,927   

Other intangibles, net

      5,607        6,503   

Other assets

      29,140        19,921   
                
   $ 2,073,944      $ 2,100,839   
                
Liabilities and Shareholders’ Equity     

Current liabilities:

     

Accounts payable

      397,735        491,823   

Accrued expenses, primarily salaries and related costs

      156,757        150,487   

Federal, state and foreign income taxes

      19,236        28,039   
                

Total current liabilities

      573,728        670,349   
                

Deferred Federal and state income taxes

      45,533        46,574   

Shareholders’ equity:

     

Preferred stock; none issued

      —          —     

Common stock, par value $.01 per share; issued and outstanding 212,061,173 shares at June 30, 2009 and 211,973,377 shares at December 31, 2008

      2,121        2,120   

Additional paid-in capital

      4,706        7,150   

Retained earnings

      1,445,409        1,372,356   

Accumulated other comprehensive loss

      (6,668 )      (15,208 ) 
                

Total shareholders’ equity

      1,445,568        1,366,418   
                

Noncontrolling interest

      9,115        17,498   
                

Total equity

      1,454,683        1,383,916   
                
   $ 2,073,944      $ 2,100,839   
                

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except share data)

(Unaudited)

 

     Three months ended
June 30,		     Six months ended
June 30,		  
     2009     2008     2009     2008  

Revenues:

         

Airfreight services

    $ 371,359      $ 658,882      $ 745,815      $ 1,258,645   

Ocean freight and ocean services

      299,292        516,473        617,926        963,265   

Customs brokerage and other services

      224,709        278,900        444,304        539,666   
                                

Total revenues

      895,360        1,454,255        1,808,045        2,761,576   
                                

Operating expenses:

         

Airfreight consolidation

      257,016        517,683        507,385        978,782   

Ocean freight consolidation

      218,891        419,767        457,117        780,207   

Customs brokerage and other services

      89,406        119,480        176,981        230,934   

Salaries and related costs

      189,565        215,535        376,774        421,350   

Rent and occupancy costs

      17,954        19,374        36,678        38,809   

Depreciation and amortization

      10,244        10,056        20,202        19,828   

Selling and promotion

      5,547        9,744        11,769        19,248   

Other

      19,810        29,645        42,738        53,883   
                                

Total operating expenses

      808,433        1,341,284        1,629,644        2,543,041   
                                

Operating income

      86,927        112,971        178,401        218,535   
                                

Interest income

      2,433        4,915        6,039        9,879   

Interest expense

      (64 )      (75 )      (79 )      (146 ) 

Other, net

      2,081        (162 )      6,634        1,112   
                                

Other income, net

      4,450        4,678        12,594        10,845   
                                

Earnings before income taxes

      91,377        117,649        190,995        229,380   

Income tax expense

      37,563        46,043        77,812        91,253   
                                

Net earnings

      53,814        71,606        113,183        138,127   
                                

Net earnings attributable to noncontrolling interest

      256        (357 )      147        (406 ) 
                                

Net earnings attributable to shareholders

    $ 54,070      $ 71,249      $ 113,330      $ 137,721   
                                

Diluted earnings attributable to shareholders per share

    $ 0.25      $ 0.32      $ 0.52      $ 0.62   
                                

Basic earnings attributable to shareholders per share

    $ 0.25      $ 0.33      $ 0.53      $ 0.65   
                                

Dividends declared and paid per common share

    $ 0.19      $ 0.16      $ 0.19      $ 0.16   
                                

Weighted average diluted shares outstanding

      216,653,968        220,515,987        216,519,551        220,490,452   
                                

Weighted average basic shares outstanding

      212,116,679        213,275,229        212,108,636        213,168,730   
                                

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

     Three months ended
June 30,		     Six months ended
June 30,		  
     2009     2008     2009     2008  

Operating Activities:

         

Net earnings

    $ 53,814      $ 71,606      $ 113,183      $ 138,127   

Adjustments to reconcile net earnings to net cash provided by operating activities:

         

Provision for losses on accounts receivable

      (1,075 )      (396 )      1,569        (573 ) 

Deferred income tax (benefit) expense

      (12,695 )      7,647        (6,244 )      16,473   

Excess tax benefits from stock plans

      (2,073 )      (7,889 )      (5,135 )      (9,395 ) 

Stock compensation expense

      11,371        11,323        18,271        22,603   

Depreciation and amortization

      10,244        10,056        20,202        19,828   

Gain on sale of assets

      (6 )      (30 )      (10 )      (605 ) 

Other

      365        515        727        932   

Changes in operating assets and liabilities:

         

Decrease (increase) in accounts receivable

      60,379        (91,778 )      214,343        (32,024 ) 

(Increase) decrease in other current assets

      (1,308 )      622        (1,323 )      677   

(Decrease) increase in accounts payable and accrued expenses

      (20,329 )      67,024        (100,499 )      82,102   

(Decrease) increase in income taxes payable, net

      (13,601 )      (32,697 )      2,284        (23,437 ) 
                                

Net cash provided by operating activities

      85,086        36,003        257,368        214,708   
                                

Investing Activities:

         

(Increase) decrease in short-term investments

      (13 )      169        31        216   

Purchase of property and equipment

      (7,166 )      (14,316 )      (15,822 )      (24,526 ) 

Proceeds from sale of property and equipment

      33        139        77        181   

Prepayment on long-term land lease

      (7,344 )      —          (7,344 )      —     

Other

      (109 )      (308 )      (1,591 )      55   
                                

Net cash used in investing activities

      (14,599 )      (14,316 )      (24,649 )      (24,074 ) 
                                

Financing Activities:

         

Repayments of short-term debt, net

      —          (810 )      —          —     

Proceeds from issuance of common stock

      8,868        15,537        17,404        20,151   

Repurchases of common stock

      (23,760 )      (50,970 )      (42,972 )      (69,588 ) 

Excess tax benefits from stock plans

      2,073        7,889        5,135        9,395   

Dividends paid

      (40,276 )      (34,163 )      (40,276 )      (34,163 ) 

Distributions to noncontrolling interests

      —          —          —          (107 ) 

Purchases of noncontrolling interest

      —          —          (2,122 )      —     
                                

Net cash used in financing activities

      (53,095 )      (62,517 )      (62,831 )      (74,312 ) 
                                

Effect of exchange rate changes on cash

      14,911        3,352        5,066        12,567   
                                

Increase (decrease) in cash and cash equivalents

      32,303        (37,478 )      174,954        128,889   

Cash and cash equivalents at beginning of period

      883,679        740,966        741,028        574,599   
                                

Cash and cash equivalents at end of period

    $ 915,982      $ 703,488      $ 915,982      $ 703,488   
                                

Interest and taxes paid:

         

Interest

    $ 65        75      $ 80        146   

Income taxes

      59,746        67,613        75,110        91,885   

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

 

      United
States		    Other
North
America		    Latin
America		    Asia    Europe
and
Africa		    Middle
East and
India		    Australasia    Eliminations     Consolidated

Three months ended June 30, 2009

        

Revenues from unaffiliated customers

    $ 222,569    29,500    14,804    427,914    135,259    50,466    14,848      895,360

Transfers between geographic areas

      18,046    1,742    3,069    3,903    5,826    3,700    2,552    (38,838 )    —  
                                               

Total revenues

    $ 240,615    31,242    17,873    431,817    141,085    54,166    17,400    (38,838 )    895,360
                                               

Net revenues

    $ 129,236    14,852    11,173    91,492    53,648    19,382    10,264      330,047

Operating income

    $ 27,345    3,082    3,716    35,894    7,996    5,599    3,295      86,927

Identifiable assets

    $ 1,023,955    62,133    32,222    452,563    360,322    114,673    27,824    252      2,073,944

Capital expenditures

    $ 5,514    142    180    470    256    558    46      7,166

Depreciation and amortization

    $ 5,470    347    246    1,913    1,492    619    157      10,244

Equity

    $ 1,591,475    39,227    12,813    352,426    142,949    69,815    18,034    (772,056 )    1,454,683

Three months ended June 30, 2008

Revenues from unaffiliated customers

    $ 322,644    41,397    22,260    768,086    209,297    67,164    23,407      1,454,255

Transfers between geographic areas

      26,957    2,623    3,534    5,629    11,257    4,539    2,158    (56,697 )    —  
                                               

Total revenues

    $ 349,601    44,020    25,794    773,715    220,554    71,703    25,565    (56,697 )    1,454,255
                                               

Net revenues

    $ 154,697    18,009    13,308    104,688    72,286    21,212    13,125      397,325

Operating income

    $ 31,179    3,670    3,517    48,147    16,568    5,629    4,261      112,971

Identifiable assets

    $ 1,008,102    75,321    57,181    501,484    485,926    111,532    41,521    8,177      2,289,244

Capital expenditures

    $ 7,164    855    500    3,207    1,684    747    159      14,316

Depreciation and amortization

    $ 5,442    328    304    1,499    1,681    555    247      10,056

Equity

    $ 1,472,819    37,579    28,146    407,330    186,359    56,927    27,047    (876,065 )    1,340,142

Six months ended June 30, 2009

Revenues from unaffiliated customers

    $ 458,897    59,268    30,933    856,196    268,125    107,579    27,047      1,808,045

Transfers between geographic areas

      36,554    3,624    6,511    7,636    12,599    7,267    4,853    (79,044 )    —  
                                               

Total revenues

    $ 495,451    62,892    37,444    863,832    280,724    114,846    31,900    (79,044 )    1,808,045
                                               

Net revenues

    $ 260,381    31,052    21,686    186,190    107,765    40,458    19,030      666,562

Operating income

    $ 57,981    7,422    6,080    74,121    16,767    9,938    6,092      178,401

Identifiable assets

    $ 1,023,955    62,133    32,222    452,563    360,322    114,673    27,824    252      2,073,944

Capital expenditures

    $ 11,612    291    411    1,010    1,341    899    258    —        15,822

Depreciation and amortization

    $ 10,780    673    485    3,845    2,897    1,214    308    —        20,202

Equity

    $ 1,591,475    39,227    12,813    352,426    142,949    69,815    18,034    (772,056 )    1,454,683

Six months ended June 30, 2008

Revenues from unaffiliated customers

    $ 622,716    76,466    41,994    1,447,936    394,861    134,357    43,246      2,761,576

Transfers between geographic areas

      51,146    4,696    6,733    10,740    21,759    8,536    4,292    (107,902 )    —  
                                               

Total revenues

    $ 673,862    81,162    48,727    1,458,676    416,620    142,893    47,538    (107,902 )    2,761,576
                                               

Net revenues

    $ 304,528    34,683    25,177    203,429    138,059    40,953    24,824      771,653

Operating income

    $ 61,407    7,193    6,799    94,767    29,796    10,713    7,860      218,535

Identifiable assets

    $ 1,008,102    75,321    57,181    501,484    485,926    111,532    41,521    8,177      2,289,244

Capital expenditures

    $ 10,802    1,191    769    6,510    3,294    1,607    353      24,526

Depreciation and amortization

    $ 10,805    640    602    2,753    3,449    1,083    496      19,828

Equity

    $ 1,472,819    37,579    28,146    407,330    186,359    56,927    27,047    (876,065 )    1,340,142
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