RANCHO DOMINGUEZ, Calif., April 6, 2004 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported strong financial results for the three- and twelve-month periods ended January 31, 2004, reflecting solid gains in gross and net revenue, operating income and net income, over comparable year-earlier results.
For the fiscal 2004 fourth quarter, gross revenues increased 23 percent to $415.3 million from $338.1 million in the corresponding period last fiscal year. Net revenues for the fiscal 2004 fourth quarter totaled $163.3 million, up 23 percent from $132.8 million in the fourth quarter of fiscal 2003.
"Once again, UTi achieved solid gains in gross and net revenues across all service categories over the prior-year comparable period," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "Our airfreight forwarding operations continued to perform well, posting a 26 percent increase in net revenues from last fiscal year's fourth quarter, which included one month of heightened airfreight volumes related to last year's West Coast port lock-out. We are also pleased that airfreight yields for the fiscal 2004 fourth quarter remained level with the immediately preceding third quarter at 27 percent, as compared with 26 percent in the fiscal 2003 fourth quarter."
In the fiscal 2004 fourth quarter, ocean freight forwarding net revenues advanced 17 percent; customs brokerage net revenues grew 6 percent; and contract logistics net revenues rose 19 percent, when compared with the year-ago fiscal fourth quarter.
"All geographic regions of UTi's global network contributed to gross revenue and net revenue gains in the fourth quarter of fiscal 2004, over the prior-year comparable period," MacFarlane said. "Our Asia Pacific operations posted a 21 percent increase in net revenues. Despite weak economic conditions in Europe, our operations in this region delivered growth of 44 percent in net revenues for the quarter, helped by a decline in the U.S. dollar, compared with last year. Currency exchange rates also boosted Africa's results, which posted a 45 percent increase in net revenues in the fiscal 2004 fourth quarter when compared to the prior year comparable period. The Americas recorded net revenue gains of 5 percent from the year-ago fourth quarter."
Operating income in the fiscal 2004 fourth quarter increased 26 percent to $15.0 million from $11.9 million in the prior-year fourth quarter. Operating margin, which is operating income expressed as a percentage of net revenues, equaled 9.2 percent in the fourth quarter, compared with 9.0 percent in the fiscal 2003 fourth quarter.
Net income for the fiscal 2004 fourth quarter rose 67 percent to $12.2 million, or $0.38 per diluted share, based on 31.7 million weighted average shares outstanding. The fiscal 2004 fourth quarter benefited by a change in the estimated effective tax rate for the fiscal year which resulted in an increase in net income of approximately 3 cents per diluted share. In the prior-year fourth quarter, the company recorded net income of $7.3 million, or $0.26 per diluted share, based on 28.7 million weighted average shares outstanding. UTi's secondary offering of 4.6 million ordinary shares in December 2002 resulted in 11 percent more weighted average shares outstanding for the fiscal 2004 fourth quarter, compared with the corresponding prior-year period.
"We are extremely proud of the solid execution made in our eighth quarter since beginning our five-year strategic NextLeap journey," said MacFarlane. "NextLeap continues to guide the path for all our initiatives at UTi, and quarter by quarter, the global UTi team has delivered greater value to new and existing customers, and increases in revenues, operating income and net income, compared with year-earlier results."
Full Year Review
For the year ended January 31, 2004, gross revenues advanced 28 percent to $1.5 billion from $1.2 billion a year ago. Net revenues for fiscal 2004 totaled $596.1 million, a 47 percent increase over $404.8 million last year. Standard Corporation, which was acquired effective October 2002, contributed to both gross and net revenues for the last quarter of fiscal 2003, compared with its contribution for the full twelve months in fiscal 2004.
Operating income for the year totaled $59.1 million, a 30 percent increase over $45.5 million in fiscal 2003. Operating margin (operating income expressed as a percentage of net revenues) equaled 9.9 percent in the current twelve-month period, compared with 11.2 percent a year ago, reflecting the impact of a full year's contribution from Standard, which traditionally operates at a lower operating margin when compared to other UTi operations.
Net income for fiscal 2004 rose 53 percent to $44.8 million, compared with $29.3 million a year earlier. On a per share basis, net income climbed to $1.42 per diluted share, based on 31.5 million weighted average shares outstanding, from $1.11 per diluted share, based on 26.5 million weighted average shares outstanding, in fiscal 2003.
MacFarlane added: "Fiscal 2004 results underscore the soundness of UTi's vision of global integrated logistics. As we look back on the first two years of our NextLeap journey, we are proud of the accomplishments made by the UTi team in building a strong platform designed to support growth on many levels for years to come. Emblematic of NextLeap's influence on our success is our recent introduction of eMpower5, UTi's proprietary information technology system that provides global visibility across all facets for our customers' supply chains in one application view. We believe we are well positioned to continue making progress as we focus on global integrated logistics solutions and becoming the primary logistics partner with more of our strategic customers."
At January 31, 2004, the company reported total cash and cash equivalents, net of outstanding bank lines of credit and short-term bank borrowings, of $137.2 million, compared with $125.5 million at January 31, 2003.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its customers' global supply chains.
Investor Conference Call
UTi management will host an investor conference call today, Tuesday, April 6, 2004, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fourth quarter and year ended January 31, 2004. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet at www.go2uti.com and www.fulldisclosure.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from 10:00 a.m. PDT, Tuesday, April 6, through 5:00 p.m. PDT, Friday, April 9, by calling 800-633-8284 (domestic) or 402-977-9140 (international) and using Reservation No. 21190318.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its growth strategy and integration of acquisitions. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; risks of international operations; the success and effects of new strategies; disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(Tables Follow) UTi Worldwide Inc. Condensed Consolidated Income Statements (in thousands, except share and per share amounts) Three months ended Twelve months ended January 31, January 31, ------------------------- ------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ (Unaudited) Gross revenues: Airfreight forwarding $ 198,488 $ 164,406 $ 720,689 $ 621,905 Ocean freight forwarding 104,023 74,464 360,253 283,869 Customs brokerage 18,429 17,448 67,859 64,221 Contract logistics 60,354 49,973 229,709 101,294 Other 34,042 31,771 124,365 98,771 ------------ ------------ ------------ ------------ Total gross revenues $ 415,336 $ 338,062 $ 1,502,875 $ 1,170,060 ============ ============ ============ ============ Net revenues: Airfreight forwarding $ 53,446 $ 42,450 $ 198,822 $ 157,493 Ocean freight forwarding 21,028 18,039 75,131 66,554 Customs brokerage 17,714 16,682 65,532 61,105 Contract logistics 51,784 43,367 192,969 79,517 Other 19,346 12,261 63,687 40,121 ------------ ------------ ------------ ------------ Total net revenues 163,318 132,799 596,141 404,790 ------------ ------------ ------------ ------------ Staff costs 86,967 68,927 318,727 204,971 Depreciation and amortization 4,056 3,557 14,806 11,174 Amortization of intangible assets 179 128 663 198 Other operating expenses 57,149 48,278 202,874 142,942 ------------ ------------ ------------ ------------ Operating income 14,967 11,909 59,071 45,505 Interest income/ (expense), net 74 (60) 1,041 (486) Losses on foreign exchange (329) (1,016) (341) (1,725) ------------ ------------ ------------ ------------ Pretax income 14,712 10,833 59,771 43,294 Provision for income taxes (2,230) (3,307) (13,403) (12,492) ------------ ------------ ------------ ------------ Income before minority interests 12,482 7,526 46,368 30,802 Minority interests (279) (198) (1,597) (1,508) ------------ ------------ ------------ ------------ Net income $ 12,203 $ 7,328 $ 44,771 $ 29,294 ============ ============ ============ ============ Basic earnings per ordinary share $ 0.40 $ 0.26 $ 1.48 $ 1.13 Diluted earnings per ordinary share $ 0.38 $ 0.26 $ 1.42 $ 1.11 Number of weighted-average shares outstanding used for per share calculations Basic shares 30,454,062 27,740,029 30,291,543 25,932,164 Diluted shares 31,745,844 28,673,009 31,479,887 26,504,401 UTi Worldwide Inc. Condensed Consolidated Balance Sheets (in thousands) As of January 31, ------------------------ 2004 2003 --------- --------- ASSETS Cash and cash equivalents $ 156,687 $ 168,125 Trade receivables, net 280,044 247,893 Deferred income tax assets 6,534 1,592 Other current assets 33,420 30,492 --------- --------- Total current assets 476,685 448,102 Property, plant and equipment, net 54,421 44,566 Goodwill and other intangible assets, net 158,567 125,641 Investments 1,117 847 Deferred income tax assets 2,384 1,227 Other non-current assets 10,167 6,692 --------- --------- Total assets $ 703,341 $ 627,075 ========= ========= LIABILITIES & SHAREHOLDERS' EQUITY Bank lines of credit $ 18,180 $ 33,458 Short-term borrowings 1,312 9,121 Current portion of capital lease obligations 2,408 2,539 Trade payables and other accrued liabilities 269,072 236,548 Income taxes payable 10,864 8,083 Deferred income tax liabilities 256 489 --------- --------- Total current liabilities 302,092 290,238 Long-term borrowings 93 199 Capital lease obligations 7,326 7,111 Deferred income tax liabilities 3,860 1,643 Retirement fund obligations 1,251 1,016 Minority interests 2,873 2,699 Commitments and contingencies Shareholders' equity: Common stock 318,409 311,161 Retained earnings 105,855 63,973 Accumulated other comprehensive loss (38,418) (50,965) --------- --------- Total shareholders' equity 385,846 324,169 --------- --------- Total liabilities and shareholders' equity $ 703,341 $ 627,075 ========= ========= UTi Worldwide Inc. Consolidated Statements of Cash Flows (in thousands) Twelve months ended January 31, ------------------------- 2004 2003 --------- --------- OPERATING ACTIVITIES: Net income $ 44,771 $ 29,294 Adjustments to reconcile net income to net cash provided by operating activities: Stock compensation costs 798 182 Depreciation and amortization 14,806 11,174 Amortization of intangible assets 663 198 Deferred income taxes 847 423 Tax benefit relating to exercise of stock options 836 -- Gain on disposal of property, plant and equipment 171 110 Other 1,395 1,329 Changes in operating assets and liabilities: Increase in trade receivables and other current assets (10,172) (23,564) Increase in trade payables and other current liabilities 11,743 30,456 --------- --------- Net cash provided by operating activities 65,858 49,602 --------- --------- INVESTING ACTIVITIES: Purchases of property, plant and equipment (18,720) (13,572) Proceeds from disposal of property, plant and equipment 889 430 Increase in other non-current assets (1,674) -- Acquisitions of subsidiaries and contingent earn-out payments (30,288) (62,944) Other (587) (599) --------- --------- Net cash used in investing activities (50,380) (76,685) --------- --------- FINANCING ACTIVITIES: (Decrease)/increase in bank lines of credit (15,278) 12,396 Decrease in short-term borrowings (7,421) (3,727) Long-term borrowings -- repaid (146) (204) Capital lease obligations -- repaid (3,444) (3,068) Decrease in minority interests (1,296) (1,028) Proceeds from issuance of ordinary shares 5,614 100,836 Dividends paid (2,889) (1,929) --------- --------- Net cash (used in)/provided by financing activities (24,860) 103,276 --------- --------- Net (decrease)/increase in cash and cash equivalents (9,382) 76,193 Cash and cash equivalents at beginning of period 168,125 87,594 Effect of foreign exchange rate changes (2,056) 4,338 --------- --------- Cash and cash equivalents at end of period $ 156,687 $ 168,125 ========= ========= UTi Worldwide Inc. Segment Reporting (in thousands) Three months ended January 31, 2004 ----------------------------------------------------- (Unaudited) Asia Europe Americas Pacific Africa Corporate Total -------- -------- -------- -------- -------- -------- Gross revenue from external customers $116,128 $112,357 $132,065 $ 54,786 $ -- $415,336 ======== ======== ======== ======== ======== ======== Net revenue $ 38,525 $ 63,711 $ 22,688 $ 38,394 $ -- $163,318 Staff costs 21,064 38,170 10,101 16,008 1,624 86,967 Depreciation and amortization 1,215 984 602 897 358 4,056 Amortization of intangible assets -- 148 -- 31 -- 179 Other operating expenses 13,088 20,927 5,743 16,443 948 57,149 -------- -------- -------- -------- -------- -------- Operating income/(loss) $ 3,158 $ 3,482 $ 6,242 $ 5,015 $ (2,930) 14,967 ======== ======== ======== ======== ======== Interest income, net 74 Losses on foreign exchange (329) -------- Pretax income 14,712 Provision for income taxes (2,230) -------- Income before minority interests $ 12,482 ======== Three months ended January 31, 2003 ----------------------------------------------------- (Unaudited) Asia Europe Americas Pacific Africa Corporate Total -------- -------- -------- -------- -------- -------- Gross revenue from external customers $100,626 $105,101 $ 90,742 $ 41,593 $ -- $338,062 ======== ======== ======== ======== ======== ======== Net revenue $ 26,829 $ 60,692 $ 18,822 $ 26,456 $ -- $132,799 Staff costs 15,796 34,219 7,607 10,470 835 68,927 Depreciation and amortization 1,034 925 514 645 439 3,557 Amortization of intangible assets -- 128 -- -- -- 128 Other operating expenses 9,690 21,977 5,426 10,510 675 48,278 -------- -------- -------- -------- -------- -------- Operating income/(loss) $ 309 $ 3,443 $ 5,275 $ 4,831 $ (1,949) 11,909 ======== ======== ======== ======== ======== Interest expense, net (60) Losses on foreign exchange (1,016) -------- Pretax income 10,833 Provision for income taxes (3,307) -------- Income before minority interests $ 7,526 ======== UTi Worldwide Inc. Segment Reporting (in thousands) Twelve months ended January 31, 2004 ------------------------------------------------------- Asia Europe Americas Pacific Africa Corporate Total -------- -------- -------- -------- -------- ---------- Gross revenue from external customers $424,457 $449,381 $430,376 $198,661 $ -- $1,502,875 ======== ======== ======== ======== ======== ========== Net revenue $129,404 $252,378 $ 86,489 $127,870 $ -- $ 596,141 Staff costs 73,814 147,201 36,708 55,667 5,337 318,727 Depreciation and amortization 4,415 3,976 2,140 3,088 1,187 14,806 Amortization of intangible assets -- 594 -- 69 -- 663 Other operating expenses 40,125 84,760 21,755 51,264 4,970 202,874 -------- -------- -------- -------- -------- ---------- Operating income/(loss)$ 11,050 $ 15,847 $ 25,886 $ 17,782 $(11,494) 59,071 ======== ======== ======== ======== ======== Interest income, net 1,041 Losses on foreign exchange (341) ---------- Pretax income 59,771 Provision for income taxes (13,403) ---------- Income before minority interests $ 46,368 ========== Twelve months ended January 31, 2003 ------------------------------------------------------- Asia Europe Americas Pacific Africa Corporate Total -------- -------- -------- -------- -------- ---------- Gross revenue from external customers $372,515 $317,314 $337,430 $142,801 $ -- $1,170,060 ======== ======== ======== ======== ======== ========== Net revenue $ 99,571 $143,484 $ 70,626 $ 91,109 $ -- $ 404,790 Staff costs 54,864 81,603 29,237 35,263 4,004 204,971 Depreciation and amortization 3,526 2,848 1,962 1,982 856 11,174 Amortization of intangible assets -- 198 -- -- -- 198 Other operating expenses 30,608 50,382 19,981 37,695 4,276 142,942 -------- -------- -------- -------- -------- --------- Operating income/(loss)$ 10,573 $ 8,453 $ 19,446 $ 16,169 $ (9,136) 45,505 ======== ======== ======== ======== ======== Interest expense, net (486) Losses on foreign exchange (1,725) --------- Pretax income 43,294 Provision for income taxes (12,492) --------- Income before minority interests $ 30,802 ========== UTi Worldwide Inc. Supplemental Financial Information (in thousands) Three months ended Twelve months ended January 31, January 31, ---------------------- ---------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- (Unaudited) FORWARDING, CUSTOMS BROKERAGE & OTHER: Gross revenue from external customers $ 335,875 $ 269,580 $1,202,131 $1,008,874 ========== ========== ========== ========== Net revenue $ 99,222 $ 80,103 $ 357,987 $ 296,266 Staff costs 51,165 39,746 187,753 148,843 Depreciation and amortization 2,607 2,362 9,713 8,280 Other operating expenses 31,391 26,066 104,747 91,657 ---------- ---------- ---------- ---------- Operating income $ 14,059 $ 11,929 $ 55,774 $ 47,486 ========== ========== ========== ========== CONTRACT LOGISTICS, DISTRIBUTION & OTHER: Gross revenue from external customers $ 79,461 $ 68,482 $ 300,744 $ 161,186 ========== ========== ========== ========== Net revenue $ 64,096 $ 52,696 $ 238,154 $ 108,524 Staff costs 34,178 28,346 125,637 52,124 Depreciation and amortization 1,091 756 3,906 2,038 Amortization of intangible assets 179 128 663 198 Other operating expenses 24,810 21,537 93,157 47,009 ---------- ---------- ---------- ---------- Operating income $ 3,838 $ 1,929 $ 14,791 $ 7,155 ========== ========== ========== ==========