Expeditors Reports Third Quarter 2019 EPS of $0.92

SEATTLE--()--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced third quarter 2019 financial results including the following highlights compared to the same quarter of 2018:

  • Diluted Net Earnings Attributable to Shareholders per share (EPS1) remained constant at $0.92
  • Net Earnings Attributable to Shareholders decreased 2% to $160 million
  • Operating Income increased 2% to $207 million
  • Revenues decreased 1% to $2.1 billion
  • Airfreight tonnage volume decreased 7% and ocean container volume decreased 2%

The third quarter presented challenges that were not unexpected in terms of growth in the global economy and ongoing trade disputes that extend well beyond just the United States and China,” said Jeffrey S. Musser, President and Chief Executive Officer. “We saw volumes drop in our air and ocean products but believe this was consistent with the overall market. In addition to volume changes, we also believe the market experienced corresponding changes in buy/sell rates and we were adept at negotiating in the changing pricing environment.

We’ve always believed that a true global network of offices is critical to achieving success in the supply chain, and that played out as expected with outsized growth in regions where business has transitioned. Further, the trade environment has placed an increased need for products such as customs brokerage, and our results show that we continue to execute well in this area. A broad range of solutions, technology and expertise has never been more important to help mitigate the uncertainty and ambiguity of the current marketplace.

Our focus on providing an extremely high level of service, coupled with deep knowledge and expertise, remains a winning strategy. We can’t execute this strategy without our global team and, as always, we are incredibly thankful for their effort and dedication.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We again demonstrated strong performance in our customs brokerage, Transcon, ocean forwarding, and order management businesses during the quarter. In addition, we boosted our operating efficiency by paying close attention to costs across our global network.” Mr. Powell also noted that the Company’s effective tax rate was 24.9% in the quarter, compared to 21.8% in the third quarter of 2018. The three-month period ended 2018 benefited from required discrete adjustments as a result of interpretations issued related to the 2017 Tax Act for foreign tax credits earned as a result of withholding taxes paid on repatriated foreign earnings and a state income tax refund that settled during the quarter in 2018.

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

_______________________

1Diluted 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.

Third Quarter 2019 Earnings Release, November 5, 2019

Financial Highlights for the three and nine months ended September 30, 2019 and 2018 (Unaudited)

(in 000's of US dollars except per share data)

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2019

 

 

2018

 

 

%
Change

 

 

2019

 

 

2018

 

 

%
Change

 

Revenues

 

$

2,074,855

 

 

$

2,090,947

 

 

(1)%

 

 

$

6,130,485

 

 

$

5,902,768

 

 

4%

 

Directly related cost of transportation and

other expenses1

 

$

1,400,499

 

 

$

1,429,633

 

 

(2)%

 

 

$

4,140,320

 

 

$

3,963,070

 

 

4%

 

Salaries and other operating expenses2

 

$

467,806

 

 

$

458,160

 

 

2%

 

 

$

1,403,813

 

 

$

1,360,142

 

 

3%

 

Operating income

 

$

206,550

 

 

$

203,154

 

 

2%

 

 

$

586,352

 

 

$

579,556

 

 

1%

 

Net earnings attributable to shareholders

 

$

160,221

 

 

$

162,692

 

 

(2)%

 

 

$

453,069

 

 

$

438,989

 

 

3%

 

Diluted earnings attributable to

shareholders per share

 

$

0.92

 

 

$

0.92

 

 

—%

 

 

$

2.60

 

 

$

2.46

 

 

6%

 

Basic earnings attributable to shareholders

per share

 

$

0.94

 

 

$

0.94

 

 

—%

 

 

$

2.65

 

 

$

2.51

 

 

6%

 

Diluted weighted average shares

outstanding

 

 

173,483

 

 

 

177,173

 

 

 

 

 

 

 

174,463

 

 

 

178,447

 

 

 

 

 

Basic weighted average shares outstanding

 

 

170,415

 

 

 

173,394

 

 

 

 

 

 

 

171,084

 

 

 

174,675

 

 

 

 

 

_____________________

1Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

2Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.

The three and nine months ended September 30, 2019 include the effect of changing our presentation of certain import services from a net to a gross basis and our revised presentation of destination services, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income.

During the three and nine months ended September 30, 2019, we repurchased 0.9 million and 4.1 million shares of common stock at an average price of $69.51 and $72.60 per share, respectively. During the three and nine months ended September 30, 2018, we repurchased 2.0 million and 7.8 million shares of common stock at an average price of $73.47 and $71.58 per share, respectively.

 

 

Employee Full-time Equivalents
September 30, 2019

 

 

 

2019

 

 

2018

 

North America

 

 

6,861

 

 

 

6,635

 

Europe

 

 

3,427

 

 

 

3,270

 

North Asia

 

 

2,483

 

 

 

2,655

 

South Asia

 

 

1,674

 

 

 

1,640

 

Middle East, Africa and India

 

 

1,565

 

 

 

1,478

 

Latin America

 

 

860

 

 

 

831

 

Information Systems

 

 

939

 

 

 

904

 

Corporate

 

 

383

 

 

 

351

 

Total

 

 

18,192

 

 

 

17,764

 

 

 

Third quarter year-over-year
percentage increase (decrease) in:

 

 

 

Airfreight
kilos

 

 

Ocean freight
FEU

 

2019

 

 

 

 

 

 

 

 

July

 

(5)%

 

 

2%

 

August

 

(9)%

 

 

(1)%

 

September

 

(9)%

 

 

(7)%

 

Quarter

 

(7)%

 

 

(2)%

 

 
___________________

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 8, 2019 will be considered in management's 8-K “Responses to Selected Questions.”

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 our ability to maintain a differentiated, knowledgeable workforce; the impact of the 2017 Tax Act and related interpretations on our effective tax rate; and risk factors and uncertainties detailed in our Annual Report as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

 

September 30,
2019

 

 

December 31,
2018

 

Assets:

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,215,970

 

 

$

923,735

 

Accounts receivable, less allowance for doubtful accounts of $11,853 at September 30, 2019 and $15,345 at December 31, 2018

 

 

1,319,032

 

 

 

1,581,530

 

Deferred contract costs

 

 

130,690

 

 

 

159,510

 

Other

 

 

103,521

 

 

 

70,041

 

Total current assets

 

 

2,769,213

 

 

 

2,734,816

 

Property and equipment, less accumulated depreciation and amortization of $468,059 at September 30, 2019 and $446,977 at

December 31, 2018

 

 

494,153

 

 

 

504,105

 

Operating lease right-of-use assets

 

 

374,231

 

 

 

 

Goodwill

 

 

7,927

 

 

 

7,927

 

Deferred federal and state income taxes, net

 

 

44,351

 

 

 

40,465

 

Other assets, net

 

 

16,578

 

 

 

27,246

 

Total assets

 

$

3,706,453

 

 

$

3,314,559

 

Liabilities:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

744,002

 

 

$

902,259

 

Accrued expenses, primarily salaries and related costs

 

 

207,752

 

 

 

215,813

 

Contract liabilities

 

 

152,717

 

 

 

190,343

 

Current portion of operating lease liabilities

 

 

61,842

 

 

 

 

Federal, state and foreign income taxes

 

 

17,273

 

 

 

18,424

 

Total current liabilities

 

 

1,183,586

 

 

 

1,326,839

 

Noncurrent portion of operating lease liabilities

 

 

313,580

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock, none issued

 

 

 

 

 

 

Common stock, par value $0.01 per share. Issued and outstanding: 170,243 shares at September 30, 2019 and 171,582

shares at December 31, 2018

 

 

1,702

 

 

 

1,716

 

Additional paid-in capital

 

 

23,301

 

 

 

1,896

 

Retained earnings

 

 

2,301,156

 

 

 

2,088,707

 

Accumulated other comprehensive loss

 

 

(118,774

)

 

 

(105,481

)

Total shareholders’ equity

 

 

2,207,385

 

 

 

1,986,838

 

Noncontrolling interest

 

 

1,902

 

 

 

882

 

Total equity

 

 

2,209,287

 

 

 

1,987,720

 

Total liabilities and equity

 

$

3,706,453

 

 

$

3,314,559

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

$

715,450

 

 

$

833,338

 

 

$

2,171,928

 

 

$

2,366,326

 

Ocean freight and ocean services

 

 

585,374

 

 

 

585,810

 

 

 

1,697,824

 

 

 

1,636,701

 

Customs brokerage and other services

 

 

774,031

 

 

 

671,799

 

 

 

2,260,733

 

 

 

1,899,741

 

Total revenues

 

 

2,074,855

 

 

 

2,090,947

 

 

 

6,130,485

 

 

 

5,902,768

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

 

522,868

 

 

 

620,554

 

 

 

1,574,717

 

 

 

1,727,383

 

Ocean freight and ocean services

 

 

424,215

 

 

 

435,313

 

 

 

1,234,845

 

 

 

1,199,887

 

Customs brokerage and other services

 

 

453,416

 

 

 

373,766

 

 

 

1,330,758

 

 

 

1,035,800

 

Salaries and related

 

 

356,331

 

 

 

351,577

 

 

 

1,069,592

 

 

 

1,042,420

 

Rent and occupancy

 

 

41,987

 

 

 

38,202

 

 

 

124,407

 

 

 

113,186

 

Depreciation and amortization

 

 

12,386

 

 

 

13,335

 

 

 

38,456

 

 

 

40,833

 

Selling and promotion

 

 

10,133

 

 

 

10,632

 

 

 

32,852

 

 

 

32,385

 

Other

 

 

46,969

 

 

 

44,414

 

 

 

138,506

 

 

 

131,318

 

Total operating expenses

 

 

1,868,305

 

 

 

1,887,793

 

 

 

5,544,133

 

 

 

5,323,212

 

Operating income

 

 

206,550

 

 

 

203,154

 

 

 

586,352

 

 

 

579,556

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

5,501

 

 

 

4,704

 

 

 

18,123

 

 

 

14,171

 

Other, net

 

 

1,895

 

 

 

566

 

 

 

5,822

 

 

 

2,357

 

Other income (expense), net

 

 

7,396

 

 

 

5,270

 

 

 

23,945

 

 

 

16,528

 

Earnings before income taxes

 

 

213,946

 

 

 

208,424

 

 

 

610,297

 

 

 

596,084

 

Income tax expense

 

 

53,319

 

 

 

45,357

 

 

 

156,029

 

 

 

155,871

 

Net earnings

 

 

160,627

 

 

 

163,067

 

 

 

454,268

 

 

 

440,213

 

Less net earnings attributable to the noncontrolling

interest

 

 

406

 

 

 

375

 

 

 

1,199

 

 

 

1,224

 

Net earnings attributable to shareholders

 

$

160,221

 

 

$

162,692

 

 

$

453,069

 

 

$

438,989

 

Diluted earnings attributable to shareholders per share

 

$

0.92

 

 

$

0.92

 

 

$

2.60

 

 

$

2.46

 

Basic earnings attributable to shareholders per share

 

$

0.94

 

 

$

0.94

 

 

$

2.65

 

 

$

2.51

 

Weighted average diluted shares outstanding

 

 

173,483

 

 

 

177,173

 

 

 

174,463

 

 

 

178,447

 

Weighted average basic shares outstanding

 

 

170,415

 

 

 

173,394

 

 

 

171,084

 

 

 

174,675

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

160,627

 

 

$

163,067

 

 

$

454,268

 

 

$

440,213

 

Adjustments to reconcile net earnings to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions for losses on accounts receivable

 

 

757

 

 

 

1,969

 

 

 

453

 

 

 

2,232

 

Deferred income tax benefit

 

 

(5,822

)

 

 

(23,610

)

 

 

(17

)

 

 

(17,522

)

Stock compensation expense

 

 

12,155

 

 

 

13,902

 

 

 

49,361

 

 

 

43,171

 

Depreciation and amortization

 

 

12,386

 

 

 

13,335

 

 

 

38,456

 

 

 

40,833

 

Other, net

 

 

652

 

 

 

666

 

 

 

812

 

 

 

770

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in accounts receivable

 

 

43,885

 

 

 

(210,092

)

 

 

246,175

 

 

 

(156,321

)

(Decrease) increase in accounts payable and accrued

expenses

 

 

(58,816

)

 

 

115,629

 

 

 

(141,199

)

 

 

127,860

 

Decrease (increase) in deferred contract costs

 

 

10,301

 

 

 

(34,623

)

 

 

28,550

 

 

 

(51,235

)

(Decrease) increase in contract liabilities

 

 

(13,211

)

 

 

36,256

 

 

 

(36,933

)

 

 

49,149

 

(Decrease) increase in income taxes payable, net

 

 

(671

)

 

 

9,292

 

 

 

(33,284

)

 

 

(9,258

)

(Decrease) increase in other, net

 

 

(744

)

 

 

930

 

 

 

47

 

 

 

862

 

Net cash from operating activities

 

 

161,499

 

 

 

86,721

 

 

 

606,689

 

 

 

470,754

 

Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(15,521

)

 

 

(11,733

)

 

 

(37,943

)

 

 

(37,642

)

Other, net

 

 

232

 

 

 

1,109

 

 

 

1,525

 

 

 

(886

)

Net cash from investing activities

 

 

(15,289

)

 

 

(10,624

)

 

 

(36,418

)

 

 

(38,528

)

Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

60,713

 

 

 

47,806

 

 

 

120,190

 

 

 

169,566

 

Repurchases of common stock

 

 

(61,999

)

 

 

(147,828

)

 

 

(296,922

)

 

 

(555,760

)

Dividends Paid

 

 

 

 

 

 

 

 

(85,184

)

 

 

(79,180

)

Payments for taxes related to net share settlement of equity awards

 

 

 

 

 

 

 

 

(6,674

)

 

 

(3,215

)

Distributions to noncontrolling interest

 

 

 

 

 

(633

)

 

 

 

 

 

(633

)

Purchase of noncontrolling interest

 

 

 

 

 

(613

)

 

 

 

 

 

(613

)

Net cash from financing activities

 

 

(1,286

)

 

 

(101,268

)

 

 

(268,590

)

 

 

(469,835

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(11,604

)

 

 

(5,071

)

 

 

(9,446

)

 

 

(22,878

)

Change in cash and cash equivalents

 

 

133,320

 

 

 

(30,242

)

 

 

292,235

 

 

 

(60,487

)

Cash and cash equivalents at beginning of period

 

 

1,082,650

 

 

 

1,020,854

 

 

 

923,735

 

 

 

1,051,099

 

Cash and cash equivalents at end of period

 

$

1,215,970

 

 

$

990,612

 

 

$

1,215,970

 

 

$

990,612

 

Taxes Paid:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

61,201

 

 

$

59,313

 

 

$

196,169

 

 

$

183,444

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

 

 

UNITED

STATES

 

 

OTHER

NORTH

AMERICA

 

 

LATIN

AMERICA

 

 

NORTH

ASIA

 

 

SOUTH

ASIA

 

 

EUROPE

 

 

MIDDLE

EAST,

AFRICA

AND

INDIA

 

 

ELIMI-
NATIONS

 

 

CONSOLI-
DATED

 

For the three months ended September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

692,229

 

 

 

88,088

 

 

 

38,341

 

 

 

624,351

 

 

 

196,569

 

 

 

320,769

 

 

 

115,397

 

 

 

(889

)

 

 

2,074,855

 

Directly related cost of transportation and

other expenses2

 

$

389,254

 

 

 

51,420

 

 

 

22,990

 

 

 

489,195

 

 

 

145,345

 

 

 

221,149

 

 

 

81,592

 

 

 

(446

)

 

 

1,400,499

 

Salaries and other operating expenses3

 

$

210,767

 

 

 

25,731

 

 

 

14,547

 

 

 

70,410

 

 

 

32,482

 

 

 

86,156

 

 

 

28,151

 

 

 

(438

)

 

 

467,806

 

Operating income

 

$

92,208

 

 

 

10,937

 

 

 

804

 

 

 

64,746

 

 

 

18,742

 

 

 

13,464

 

 

 

5,654

 

 

 

(5

)

 

 

206,550

 

Identifiable assets at period end

 

$

2,059,345

 

 

 

128,336

 

 

 

72,029

 

 

 

489,322

 

 

 

164,976

 

 

 

563,289

 

 

 

226,657

 

 

 

2,499

 

 

 

3,706,453

 

Capital expenditures

 

$

7,644

 

 

 

513

 

 

 

833

 

 

 

523

 

 

 

631

 

 

 

5,119

 

 

 

258

 

 

 

 

 

 

15,521

 

Equity

 

$

1,578,682

 

 

 

60,526

 

 

 

27,217

 

 

 

216,061

 

 

 

77,733

 

 

 

169,450

 

 

 

111,355

 

 

 

(31,737

)

 

 

2,209,287

 

For the three months ended September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

629,043

 

 

 

92,875

 

 

 

43,443

 

 

 

748,589

 

 

 

205,392

 

 

 

327,212

 

 

 

118,047

 

 

 

(73,654

)

 

 

2,090,947

 

Directly related cost of transportation and

other expenses2

 

$

345,236

 

 

 

58,464

 

 

 

27,635

 

 

 

601,699

 

 

 

158,226

 

 

 

227,418

 

 

 

83,992

 

 

 

(73,037

)

 

 

1,429,633

 

Salaries and other operating expenses3

 

$

204,240

 

 

 

23,935

 

 

 

13,399

 

 

 

74,067

 

 

 

31,623

 

 

 

84,136

 

 

 

27,384

 

 

 

(624

)

 

 

458,160

 

Operating income

 

$

79,567

 

 

 

10,476

 

 

 

2,409

 

 

 

72,823

 

 

 

15,543

 

 

 

15,658

 

 

 

6,671

 

 

 

7

 

 

 

203,154

 

Identifiable assets at period end

 

$

1,694,556

 

 

 

174,402

 

 

 

53,322

 

 

 

540,465

 

 

 

156,887

 

 

 

508,855

 

 

 

212,817

 

 

 

(6,504

)

 

 

3,334,800

 

Capital expenditures

 

$

6,889

 

 

 

301

 

 

 

227

 

 

 

1,280

 

 

 

910

 

 

 

751

 

 

 

1,375

 

 

 

 

 

 

11,733

 

Equity

 

$

1,334,952

 

 

 

66,399

 

 

 

25,663

 

 

 

197,939

 

 

 

86,048

 

 

 

157,973

 

 

 

119,718

 

 

 

(31,360

)

 

 

1,957,332

 

 

 

UNITED

STATES

 

 

OTHER

NORTH

AMERICA

 

 

LATIN

AMERICA

 

 

NORTH

ASIA

 

 

SOUTH

ASIA

 

 

EUROPE

 

 

MIDDLE

EAST,

AFRICA

AND

INDIA

 

 

ELIMI-
NATIONS

 

 

CONSOLI-
DATED

 

For the nine months ended September 30, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

2,033,088

 

 

 

265,035

 

 

 

111,277

 

 

 

1,879,155

 

 

 

555,128

 

 

 

952,790

 

 

 

336,383

 

 

 

(2,371

)

 

 

6,130,485

 

Directly related cost of transportation and

other expenses2

 

$

1,142,701

 

 

 

157,997

 

 

 

64,149

 

 

 

1,475,395

 

 

 

407,642

 

 

 

657,720

 

 

 

236,184

 

 

 

(1,468

)

 

 

4,140,320

 

Salaries and other operating expenses3

 

$

636,243

 

 

 

76,283

 

 

 

41,342

 

 

 

208,781

 

 

 

97,324

 

 

 

258,339

 

 

 

86,385

 

 

 

(884

)

 

 

1,403,813

 

Operating income

 

$

254,144

 

 

 

30,755

 

 

 

5,786

 

 

 

194,979

 

 

 

50,162

 

 

 

36,731

 

 

 

13,814

 

 

 

(19

)

 

 

586,352

 

Identifiable assets at period end

 

$

2,059,345

 

 

 

128,336

 

 

 

72,029

 

 

 

489,322

 

 

 

164,976

 

 

 

563,289

 

 

 

226,657

 

 

 

2,499

 

 

 

3,706,453

 

Capital expenditures

 

$

23,544

 

 

 

1,509

 

 

 

1,071

 

 

 

1,167

 

 

 

1,235

 

 

 

8,015

 

 

 

1,402

 

 

 

 

 

 

37,943

 

Equity

 

$

1,578,682

 

 

 

60,526

 

 

 

27,217

 

 

 

216,061

 

 

 

77,733

 

 

 

169,450

 

 

 

111,355

 

 

 

(31,737

)

 

 

2,209,287

 

For the nine months ended
September 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

1,790,869

 

 

 

257,206

 

 

 

122,170

 

 

 

2,065,405

 

 

 

560,070

 

 

 

977,967

 

 

 

342,589

 

 

 

(213,508

)

 

 

5,902,768

 

Directly related cost of transportation and

other expenses2

 

$

957,997

 

 

 

157,599

 

 

 

75,694

 

 

 

1,640,724

 

 

 

423,612

 

 

 

677,167

 

 

 

242,208

 

 

 

(211,931

)

 

 

3,963,070

 

Salaries and other operating expenses3

 

$

620,029

 

 

 

70,036

 

 

 

38,996

 

 

 

211,576

 

 

 

92,409

 

 

 

248,906

 

 

 

79,782

 

 

 

(1,592

)

 

 

1,360,142

 

Operating income

 

$

212,843

 

 

 

29,571

 

 

 

7,480

 

 

 

213,105

 

 

 

44,049

 

 

 

51,894

 

 

 

20,599

 

 

 

15

 

 

 

579,556

 

Identifiable assets at period end

 

$

1,694,556

 

 

 

174,402

 

 

 

53,322

 

 

 

540,465

 

 

 

156,887

 

 

 

508,855

 

 

 

212,817

 

 

 

(6,504

)

 

 

3,334,800

 

Capital expenditures

 

$

16,092

 

 

 

4,020

 

 

 

899

 

 

 

2,623

 

 

 

1,934

 

 

 

9,167

 

 

 

2,907

 

 

 

 

 

 

37,642

 

Equity

 

$

1,334,952

 

 

 

66,399

 

 

 

25,663

 

 

 

197,939

 

 

 

86,048

 

 

 

157,973

 

 

 

119,718

 

 

 

(31,360

)

 

 

1,957,332

 

1In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. Prior year segment revenues have not been revised. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.

2Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

3Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.

 

Contacts

Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510

Contacts

Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510