RANCHO DOMINGUEZ, Calif., April 7, 2005 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported its twelfth consecutive quarter of year over year gains in gross and net revenues, operating income, net income and earnings per share for the fourth quarter ended January 31, 2005, compared with year-earlier results.
In addition to the company's organic growth in gross and net revenues, the company's results for the fiscal 2005 fourth quarter were enhanced by its acquisitions of International Healthcare Distributors (Pty) Ltd. (IHD) in South Africa and Unigistix Inc. (Unigistix) in Canada earlier in the year. Gross revenues for the fiscal 2005 fourth quarter increased 51 percent to $627.3 million from $415.3 million in the corresponding prior-year period, primarily reflecting strong increases in air and ocean freight volumes derived from new and existing customers. Net revenues for the fiscal 2005 fourth quarter grew 32 percent to $215.3 million from $163.3 million for the comparable period a year earlier.
"We are pleased with the strength in our gross and net revenue gains across all service categories this quarter," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "An improvement of 28 percent in airfreight forwarding net revenues for our fiscal 2005 fourth quarter is particularly impressive compared with our strong performance during the same period a year ago. Despite the continuing squeeze in capacity, we posted a 30 percent increase in ocean freight forwarding net revenues for our fiscal 2005 fourth quarter when compared to the same period in fiscal 2004. Contract logistics, which is now our largest service category on a net revenue basis, grew 41 percent in net revenues during the fiscal 2005 fourth quarter, compared with the prior-year fourth quarter."
The growing scale of UTi's global network is underscored by the increases in net revenues and operating income delivered by each of the company's geographic regions during the period. For the 2005 fiscal fourth quarter, Europe's net revenues rose 25 percent through productivity gains and contributed to an increase of 148 percent in operating income over the fiscal 2004 fourth quarter. The Americas posted strong organic growth in freight forwarding, and the company's contract logistics operations were enhanced by the Unigistix acquisition, resulting in net revenues and operating income for the region growing in the fiscal 2005 fourth quarter by 22 percent and 50 percent, respectively, over the year-ago fourth quarter. Asia Pacific's results reflected the success of our efforts to expand our business in this region with net revenues growing 31 percent and operating income rising 49 percent in the fiscal 2005 fourth quarter, compared with the fiscal 2004 fourth quarter. Africa reported an exceptional quarter, with net revenues up 56 percent and operating income more than doubling during the fiscal 2005 fourth quarter over the prior-year fourth quarter, which includes the contribution from IHD.
Overall, operating income rose 77 percent to $26.5 million in the fiscal 2005 fourth quarter from $15.0 million compared with the corresponding year-earlier period. Operating income as a percentage of net revenues increased to 12.3 percent in the fiscal 2005 fourth quarter, compared with 9.2 percent in the prior-year comparable period.
Net income for the fiscal 2005 fourth quarter rose 53 percent to $18.6 million, or $0.58 per diluted share, based on 32.2 million weighted average diluted shares outstanding, despite an increase in the company's effective income tax rate compared to the prior-year comparable period. Whilst the company incurred higher net interest expense, mainly as a result of its Unigistix acquisition, UTi benefited by greater-than-usual currency exchange gains. For the fourth quarter a year ago, the company reported net income of $12.2 million, or $0.38 per diluted share, based on 31.7 million weighted average diluted shares outstanding.
"We are extremely proud of our team's solid execution during our twelfth quarter since beginning UTi's five-year strategic NextLeap journey," said MacFarlane. "Our NextLeap strategy continues to guide the path for all our initiatives and, quarter by quarter, the UTi team has delivered greater value to new and existing customers, along with driving increases in revenues, operating income and net income when compared with year-earlier results."
Full Year Review
For the fiscal year ended January 31, 2005, gross revenues topped the $2 billion milestone and advanced 50 percent to $2.3 billion from $1.5 billion a year ago. Net revenues for fiscal 2005 totaled $773.8 million, a 30 percent increase over net revenues of $596.1 million last year.
Operating income for the 2005 fiscal year totaled $95.5 million, a 62 percent increase over $59.1 million in fiscal 2004. Operating income expressed as a percentage of net revenues equaled 12.3 percent for fiscal 2005, compared with 9.9 percent a year ago.
Net income for fiscal 2005 rose 51 percent to $67.5 million, compared with $44.8 million a year earlier. On a per share basis, net income climbed to $2.12 per diluted share, based on 31.9 million weighted average diluted shares outstanding, from $1.42 per diluted share, based on 31.5 million weighted average diluted shares outstanding, in fiscal 2004.
MacFarlane added: "Our performance in fiscal 2005 is a testament to the soundness of UTi's vision of global integrated logistics. As we look back on the first three years of our NextLeap journey, we are proud of the achievements made by the UTi team in building a strong platform designed to support growth on many levels for years to come. We believe the company is well positioned to continue making progress as we focus on specialized industry solutions and becoming the primary logistics partner with more of our strategic customers."
At January 31, 2005, the company's total cash and cash equivalents, net of outstanding bank lines of credit and short-term bank borrowings, were $82.6 million, reflecting both the generation of cash from operations and the impact of the acquisitions of IHD and Unigistix. This compares with cash and cash equivalents, net of outstanding bank lines of credit and short-term bank borrowings, of $137.2 million at January 31, 2004.
Investor Conference Call
UTi management will host an investor conference call today, April 7, 2005, 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, 2005. 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 approximately 10:00 a.m. PDT, today, through 5:00 p.m. PDT, Friday, April 8, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using Reservation No. 98970770.
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.
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 ability to meet customers' needs; its role as a primary logistics partner and outsourced solution for global integrated logistics; its NextLeap strategic operating plan, expectations about its global network, operating performance and delivery of value to customers; the company's focus on specialized industry solutions, its growth strategy and the contributions 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,
------------------------ ------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Gross revenues:
Airfreight
forwarding $ 274,681 $ 198,488 $ 1,017,560 $ 720,689
Ocean freight
forwarding 192,365 104,023 672,641 360,253
Customs
brokerage 20,235 18,429 77,568 67,859
Contract
logistics 82,697 60,354 312,289 229,709
Other 57,325 34,042 179,735 124,365
----------- ----------- ----------- -----------
Total gross
revenues $ 627,303 $ 415,336 $ 2,259,793 $ 1,502,875
=========== =========== =========== ===========
Net revenues:
Airfreight
forwarding $ 68,343 $ 53,446 $ 253,289 $ 198,822
Ocean freight
forwarding 27,352 21,028 98,877 75,131
Customs
brokerage 19,794 17,714 75,352 65,532
Contract
logistics 73,054 51,784 257,141 192,969
Other 26,727 19,346 89,122 63,687
----------- ----------- ----------- -----------
Total net
revenues 215,270 163,318 773,781 596,141
Staff costs 108,265 86,967 397,765 318,727
Depreciation and
amortization 5,978 4,056 19,453 14,806
Amortization of
intangible
assets 1,115 179 1,980 663
Other operating
expenses 73,419 57,149 259,132 202,874
----------- ----------- ----------- -----------
Operating income 26,493 14,967 95,451 59,071
Interest
(expense)/
income, net (1,101) 74 (474) 1,041
Gains/(losses) on
foreign exchange 999 (329) 973 (341)
----------- ----------- ----------- -----------
Pretax income 26,391 14,712 95,950 59,771
Provision for
income taxes 6,728 2,230 25,698 13,403
----------- ----------- ----------- -----------
Income before
minority
interests 19,663 12,482 70,252 46,368
Minority
interests (1,051) (279) (2,723) (1,597)
----------- ----------- ----------- -----------
Net income $ 18,612 $ 12,203 $ 67,529 $ 44,771
=========== =========== =========== ===========
Basic earnings
per share $ 0.60 $ 0.40 $ 2.20 $ 1.48
Diluted earnings
per share $ 0.58 $ 0.38 $ 2.12 $ 1.42
Number of
weighted-average
shares
outstanding used
for per share
calculations:
Basic shares 30,872,891 30,454,062 30,734,360 30,291,543
Diluted shares 32,194,944 31,745,844 31,901,776 31,479,887
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2005 2004
----------- -----------
(Unaudited)
ASSETS
Cash and cash
equivalents $ 178,132 $ 156,687
Trade receivables,
net 435,223 280,044
Deferred income tax
assets 10,027 6,534
Other current assets 44,509 33,420
----------- -----------
Total current
assets 667,891 476,685
Property, plant and
equipment, net 71,190 54,421
Goodwill and other
intangible assets,
net 293,775 158,567
Investments 587 1,117
Deferred income tax
assets 1,104 2,384
Other non-current
assets 10,120 10,167
----------- -----------
Total assets $ 1,044,667 $ 703,341
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 92,340 $ 18,180
Short-term borrowings 3,165 1,312
Current portion of
capital lease
obligations 3,465 2,408
Trade payables and
other accrued
liabilities 413,003 269,072
Income taxes payable 18,533 10,864
Deferred income tax
liabilities 678 256
----------- -----------
Total current
liabilities 531,184 302,092
Long-term borrowings 5,105 93
Capital lease
obligations 9,820 7,326
Deferred income tax
liabilities 19,607 3,860
Retirement fund
obligations 1,332 1,251
Other 136 --
Minority interests 3,293 2,873
Commitments and
contingencies -- --
Shareholders' equity:
Common stock 325,905 318,409
Retained earnings 169,821 105,855
Accumulated other
comprehensive loss (21,536) (38,418)
----------- -----------
Total shareholders'
equity 474,190 385,846
----------- -----------
Total liabilities
and shareholders'
equity $ 1,044,667 $ 703,341
=========== ===========
UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Twelve months ended
------------------------
January 31,
------------------------
2005 2004
--------- ---------
(Unaudited)
OPERATING ACTIVITIES:
Net income $ 67,529 $ 44,771
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Stock compensation
costs 576 798
Depreciation and
amortization 19,453 14,806
Amortization of
intangible assets 1,980 663
Deferred income taxes 1,440 847
Tax benefit relating
to exercise of stock
options 1,586 836
(Gain)/loss on disposal
of property, plant and
equipment (177) 171
Other 2,481 1,395
Changes in operating
assets and
liabilities:
Increase in trade
receivables and other
current assets (127,116) (10,172)
Increase in trade
payables and other
current liabilities 103,647 11,743
--------- ---------
Net cash provided by
operating activities 71,399 65,858
INVESTING ACTIVITIES:
Purchases of property,
plant and equipment (20,870) (18,720)
Proceeds from disposal
of property, plant and
equipment 2,698 889
Increase in other
non-current assets (888) (1,674)
Acquisitions of
subsidiaries and
contingent earn-out
payments (118,179) (30,288)
Other 773 (587)
--------- ---------
Net cash used in
investing activities (136,466) (50,380)
FINANCING ACTIVITIES:
Increase/(decrease) in
bank lines of credit 74,160 (15,278)
Increase/(decrease) in
short-term borrowings 4,063 (7,421)
Long-term borrowings --
advanced 1,946 --
Long-term borrowings --
repaid (316) (146)
Repayments of capital
lease obligations (4,612) (3,444)
Decrease in minority
interests (713) (1,296)
Net proceeds from
issuance of ordinary
shares 5,334 5,614
Dividends paid (3,563) (2,889)
--------- ---------
Net cash provided by/
(used in) financing
activities 76,299 (24,860)
Net increase/(decrease)
in cash and cash
equivalents 11,232 (9,382)
Cash and cash
equivalents at
beginning of period 156,687 168,125
Effect of foreign
exchange rate changes 10,213 (2,056)
--------- ---------
Cash and cash
equivalents at end of
period $ 178,132 $ 156,687
========= =========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended January 31, 2005
------------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- --------
Gross revenue
from external
customers $153,209 $151,120 $190,818 $132,156 $ -- $627,303
======== ======== ======== ======== ======== ========
Net revenue $ 48,312 $ 77,454 $ 29,615 $ 59,889 $ -- $215,270
Staff costs 25,833 43,449 12,420 24,956 1,607 108,265
Depreciation
and
amortization 1,696 1,108 669 1,971 534 5,978
Amortization
of
intangible
assets -- 931 -- 184 -- 1,115
Other
operating
expenses 12,953 26,747 7,245 22,627 3,847 73,419
-------- -------- -------- -------- -------- --------
Operating
income/(loss) $ 7,830 $ 5,219 $ 9,281 $ 10,151 $ (5,988) 26,493
======== ======== ======== ======== ========
Interest
expense, net (1,101)
Gains on
foreign
exchange 999
--------
Pretax income 26,391
Provision for
income taxes 6,728
--------
Income before
minority
interests $ 19,663
========
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
========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Twelve months ended January 31, 2005
------------------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
--------- --------- --------- --------- --------- ----------
Gross
revenue
from
external
Cust-
omers $ 582,428 $ 562,853 $ 681,532 $ 432,980 $ -- $2,259,793
========= ========= ========= ========= ========= ==========
Net
revenue $ 176,425 $ 286,760 $ 109,159 $ 201,437 $ -- $ 773,781
Staff
costs 94,202 164,615 44,587 87,110 7,251 397,765
Depreciation
and
amortiz-
ation 5,413 3,674 2,476 6,069 1,821 19,453
Amortization
of
intangible
assets -- 1,477 -- 503 -- 1,980
Other
operating
expenses 49,487 94,580 27,105 77,735 10,225 259,132
--------- --------- --------- --------- --------- ----------
Operating
income/
(loss) $ 27,323 $ 22,414 $ 34,991 $ 30,020 $ (19,297) 95,451
========= ========= ========= ========= =========
Interest
expense,
net (474)
Gains on
foreign
exchange 973
----------
Pretax
income 95,950
Provision
for
income
taxes 25,698
----------
Income
before
minority
interests $ 70,252
==========
Twelve months ended January 31, 2004
------------------------------------------------------------
Asia
Europe Americas Pacific Africa Corporate Total
--------- --------- --------- --------- --------- ----------
Gross
revenue
from
external
cust-
omers $ 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
amortiz-
ation 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
==========
UTi Worldwide Inc.
Supplemental Financial Information
(in thousands)
Three months ended Twelve months ended
January 31, January 31,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
(Unaudited)
Forwarding, Customs Brokerage & Other:
Gross revenue from
external customers $ 518,273 $ 335,875 $1,854,162 $1,202,131
========== ========== ========== ==========
Net revenue $ 125,944 $ 99,222 $ 454,885 $ 357,987
Staff costs 63,455 51,165 229,493 187,753
Depreciation and
amortization 3,396 2,607 11,348 9,713
Other operating
expenses 36,191 31,391 131,476 104,747
---------- ---------- ---------- ----------
Operating income $ 22,902 $ 14,059 $ 82,568 $ 55,774
========== ========== ========== ==========
Contract Logistics, Distribution & Other:
Gross revenue from
external customers $ 109,030 $ 79,461 $ 405,631 $ 300,744
========== ========== ========== ==========
Net revenue $ 89,326 $ 64,096 $ 318,896 $ 238,154
Staff costs 43,203 34,178 161,021 125,637
Depreciation and
amortization 2,048 1,091 6,284 3,906
Amortization of
intangible assets 1,115 179 1,980 663
Other operating
expenses 33,381 24,810 117,431 93,157
---------- ---------- ---------- ----------
Operating income $ 9,579 $ 3,838 $ 32,180 $ 14,791
========== ========== ========== ==========