RANCHO DOMINGUEZ, Calif., March 29, 2007 (PRIME NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for the three months and full year ended January 31, 2007.
For the fourth quarter of fiscal 2007, gross revenues increased 31 percent to $951.3 million from $728.2 million in the prior-year fourth quarter. Net revenues also increased 31 percent to $331.2 million for the fourth quarter of fiscal 2007 from $253.7 million in the prior-year fourth quarter. Continued organic growth across all geographic regions, as well as contributions from the company's March 2006 acquisition of Market Industries, Ltd., contributed to the fiscal 2007 fourth quarter revenue growth. After adjusting for the impact of acquisitions made by the company since November 1, 2005, as well as currency fluctuations on the comparison of UTi's results, gross and net revenues each grew organically by 14 percent in the fiscal 2007 fourth quarter, when compared with the corresponding period a year ago.
"We ended the year on a strong note in our fourth quarter with a record level of net revenues," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "Through a combination of organic growth and strategic acquisitions as part of our recently completed NextLeap journey, UTi has significantly strengthened its capabilities, allowing us to deliver increasing value for our clients' global integrated logistics requirements and for our shareholders.
"As part of our NextLeap journey, we began certain initiatives designed to enhance the long-term sustainability of our next phase of growth. While these investments have restrained our short-term earnings growth relative to the growth in revenues, we firmly believe these initiatives are essential to further fortify our infrastructure to become a leading provider of supply chain services and solutions in the years ahead."
Operating income in the fourth quarter of fiscal 2007 rose to $32.8 million versus $17.5 million in the fiscal 2006 fourth quarter. Net income for the fiscal 2007 fourth quarter was $23.6 million, or $0.24 per diluted share, compared with $9.7 million, or $0.10 per diluted share, in the fiscal 2006 fourth quarter.
Fiscal 2007 Year-End Results
For the fiscal year ended January 31, 2007, gross revenues grew 28 percent to $3.6 billion from $2.8 billion in fiscal 2006. Net revenues for fiscal 2007 totaled $1.2 billion, up 27 percent from $966.4 million in the prior fiscal year. After adjusting for the impact of acquisitions made by the company since February 1, 2005, as well as currency fluctuations on the comparison of UTi's results, gross and net revenues grew organically by 13 percent and 15 percent, respectively, in fiscal 2007, when compared with fiscal 2006.
Fiscal 2007 operating income rose 61 percent to $158.6 million, from $98.8 million in fiscal 2006, and operating income as a percentage of net revenues increased to 13.0 percent for the year ended January 31, 2007, from 10.2 percent in the prior fiscal year.
Net income for fiscal 2007 totaled $107.9 million, or $1.08 per diluted share, compared with the prior year's net income of $55.2 million, or $0.56 per diluted share.
Fiscal 2007 operating cash flow was $128.2 million, compared with $117.7 million in fiscal 2006.
Subsequent to the end of the fiscal 2007 fourth quarter, UTi announced its new, five-year strategic plan called CLIENTasONE. This client-centric initiative builds on the company's recently completed NextLeap journey by creating and executing a long-term plan to enhance UTi's market leadership in supply chain services and solutions while delivering solid financial performance. In conjunction with the launch of CLIENTasONE, UTi also recently announced several organizational updates, changes and new management appointments.
"We are very excited to embark on the next phase of UTi's evolution and growth as a leading provider of supply chain services and solutions for our clients," MacFarlane said. "The entire UTi team successfully rose to the challenges of our five-year NextLeap journey, and we strongly believe in the team's ability to lead and deliver the value for our clients that will make our CLIENTasONE voyage a resounding success."
Earnings Per Share Guidance
During the investor conference call detailed below, the company intends to provide earnings per share guidance.
Investor Conference Call
UTi management will host an investor conference call today, March 29, 2007, at 7:00 a.m. PDT (10:00 a.m. EDT) to review the company's financials and operations for the fiscal 2007 fourth quarter and full year. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and www.earnings.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 April 5, 2007 by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using replay passcode 91731515.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, 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 clients' supply chains.
Use of Non-GAAP Financial Information
This press release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. We believe that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Short-term patterns and long-term trends may be obscured by the impact of certain items. For this reason, we have referred to gross and net revenue growth adjusted to exclude the impact of acquisitions made since the beginning of the comparative period, and the impact of changes in the translation of foreign currencies into U.S. dollars. This information is among the information the company uses as a basis for evaluating company performance on a comparable basis over time, allocating resources and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for gross and net revenue growth calculated in accordance with GAAP.
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 NextLeap goals and journey and the company's discussion of CLIENTasONE, the company's next long-term strategy. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including integration risks associated with acquisitions, the ability to retain customers and management of acquisition targets; a challenging operating environment; increased competition; the impact of higher fuel costs; 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; work stoppages or slowdowns or other material interruptions in transportation services; 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, we cannot assure you that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. 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. Accordingly, investors are cautioned not to place undue reliance on our forward-looking statements. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
UTi Worldwide Inc.
Condensed Consolidated Income Statement
(in thousands, except share and per share amounts)
Three months ended Twelve months ended
January 31, January 31,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Gross revenues:
Airfreight
forwarding $ 357,741 $ 312,187 $1,381,249 $1,213,987
Ocean freight
forwarding 252,766 217,020 937,559 826,079
Customs brokerage 22,438 19,770 86,409 80,960
Contract logistics 144,420 118,449 519,155 443,738
Distribution and
other 173,906 60,778 636,993 220,811
---------- ---------- ---------- ----------
Total gross
revenues $ 951,271 $ 728,204 $3,561,365 $2,785,575
========== ========== ========== ==========
Net revenues:
Airfreight
forwarding $ 86,163 $ 74,009 $ 329,582 $ 290,993
Ocean freight
forwarding 38,946 32,406 146,571 118,346
Customs brokerage 21,831 19,338 84,135 78,503
Contract logistics 121,264 98,055 438,954 370,714
Distribution and
other 62,987 29,906 225,218 107,848
---------- ---------- ---------- ----------
Total net
revenues 331,191 253,714 1,224,460 966,404
Staff costs 181,858 151,537 642,962 547,233
Depreciation and
amortization 9,862 5,755 33,422 23,052
Amortization of
intangible assets 1,913 1,720 8,005 5,082
Other operating
expenses 104,774 77,161 381,476 292,269
---------- ---------- ---------- ----------
Operating income 32,784 17,541 158,595 98,768
Interest expense,
net (4,560) (871) (15,155) (3,869)
Gains/(losses) on
foreign exchange 227 (87) 435 (303)
---------- ---------- ---------- ----------
Pretax income 28,451 16,583 143,875 94,596
Provision for
income taxes 4,256 5,909 32,105 35,185
---------- ---------- ---------- ----------
Income before
minority
interests 24,195 10,674 111,770 59,411
Minority interests (572) (935) (3,831) (4,213)
---------- ---------- ---------- ----------
Net income (1) $ 23,623 $ 9,739 $ 107,939 $ 55,198
========== ========== ========== ==========
Basic earnings per
share $ 0.24 $ 0.10 $ 1.11 $ 0.59
Diluted earnings
per share $ 0.24 $ 0.10 $ 1.08 $ 0.56
Number of
weighted-average
shares outstanding
used for per share
calculations:
Basic shares 98,367,907 94,924,571 97,431,383 94,146,993
Diluted shares 100,243,809 98,662,721 99,561,963 98,042,114
(1) In connection with our recent restatement, net income was
impacted by the following non-cash items:
a. for the three months ended January 31, 2006, net income was
reduced by $12,518;
b. for the twelve months ended January 31, 2007, net income was
increased by $12,440;
c. for the twelve months ended January 31, 2006, net income was
reduced by $33,226.
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
January 31,
-------------------------
2007 2006
---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 278,408 $ 246,510
Trade receivables, net 662,804 497,990
Deferred income tax assets 10,889 8,517
Other current assets 57,563 39,172
---------- ----------
Total current assets 1,009,664 792,189
Property, plant and equipment, net 127,990 79,342
Goodwill and other intangible assets, net 490,884 333,569
Investments 3,096 1,050
Deferred income tax assets 12,725 3,704
Other non-current assets 15,511 11,684
---------- ----------
Total assets $1,659,870 $1,221,538
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 79,057 $ 95,177
Short-term borrowings 2,808 4,441
Current portion of capital lease
obligations 13,550 6,189
Trade payables and other accrued
liabilities 603,575 519,011
Income taxes payable 15,333 23,498
Deferred income tax liabilities 3,954 1,694
---------- ----------
Total current liabilities 718,277 650,010
Long-term borrowings 211,458 13,775
Capital lease obligations 24,099 16,068
Deferred income tax liabilities 30,291 11,181
Retirement fund obligations 7,549 5,124
Other long-term liabilities 12,078 8,977
Minority interests 18,844 19,204
Commitments and contingencies
Shareholders' equity:
Common stock 419,111 359,835
Retained earnings 266,136 163,993
Accumulated other comprehensive loss (47,973) (26,629)
---------- ----------
Total shareholders' equity 637,274 497,199
---------- ----------
Total liabilities and shareholders'
equity $1,659,870 $1,221,538
========== ==========
UTi Worldwide Inc.
Consolidated Statements of Cash Flows
(in thousands)
Twelve months ended
January 31,
-----------------------
2007 2006
-------- --------
(Unaudited)
OPERATING ACTIVITIES:
Net income $107,939 $ 55,198
Adjustments to reconcile net income to
net cash used in operating activities:
Share-based compensation costs (2,280) 37,643
Depreciation and amortization 33,422 23,052
Amortization of intangible assets 8,005 5,082
Deferred income taxes (5,077) (2,831)
Tax benefit relating to exercise of
stock options 1,811 2,984
Excess tax benefits from share-based
compensation (1,503) --
Gain on disposal of property, plant
and equipment (1,154) (1,046)
Other 4,102 4,210
Changes in operating assets and
liabilities:
Increase in trade receivables (96,862) (59,385)
(Increase)/decrease in other
current assets (9,600) 5,267
Increase in trade payables 68,125 37,658
Increase in other current
liabilities 21,271 9,827
-------- --------
Net cash provided by operating
activities 128,199 117,659
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment (27,185) (17,802)
Proceeds from disposal of property,
plant and equipment 5,856 3,117
Decrease/(increase) in other
non-current assets 871 (2,230)
Acquisitions and contingent earn-out
payments (231,077) (39,837)
Other (2,112) 118
-------- --------
Net cash used in investing
activities (253,647) (56,634)
FINANCING ACTIVITIES:
(Decrease)/increase in bank lines of
credit (20,195) 2,837
(Decrease)/increase in short-term
borrowings (1,896) 663
Increase in long-term borrowings 132 13,814
Repayment of long-term borrowings (2,208) (5,626)
Net proceeds from issuance of senior
notes 198,045 --
Repayments of capital lease obligations (10,577) (5,713)
Decrease in minority interests (808) (773)
Net proceeds from issuance of ordinary
shares 12,191 10,766
Excess tax benefits from share-based
compensation 1,503 --
Dividends paid (5,775) (4,672)
-------- --------
Net cash provided by financing
activities 170,412 11,296
Effect of foreign exchange rate changes (13,066) (3,943)
-------- --------
Net increase in cash and cash
equivalents 31,898 68,378
Cash and cash equivalents at beginning
of period 246,510 178,132
-------- --------
Cash and cash equivalents at end of
period $278,408 $246,510
======== ========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended January 31, 2007
---------------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- ------- --------
Gross
revenue $228,688 $315,758 $252,115 $154,710 $ -- $951,271
======== ======== ======== ======== ======= ========
Net revenue $ 75,026 $144,741 $ 40,332 $ 71,092 $ -- $331,191
Staff costs 42,465 84,436 19,108 31,548 4,301 181,858
Depreciation
and
amortization 1,811 4,858 1,046 1,550 597 9,862
Amortization
of
intangible
assets -- 1,643 113 157 -- 1,913
Other
operating
expenses 19,949 42,933 10,665 27,533 3,694 104,774
-------- -------- -------- -------- ------- --------
Operating
income/
(loss) $ 10,801 $ 10,871 $ 9,400 $ 10,304 $(8,592) 32,784
======== ======== ======== ======== =======
Interest
expense, net (4,560)
Gains on
foreign
exchange 227
--------
Pretax
income 28,451
Provision
for income
taxes 4,256
--------
Income
before
minority
interests $ 24,195
========
Three months ended January 31, 2006
---------------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- ------- --------
Gross
revenue $181,020 $183,539 $224,876 $138,769 $ -- $728,204
======== ======== ======== ======== ======= ========
Net revenue $ 55,854 $101,319 $ 35,895 $ 60,646 $ -- $253,714
Staff costs 41,757 63,058 15,529 28,057 3,136 151,537
Depreciation
and
amortization 1,468 1,376 848 1,590 473 5,755
Amortization
of
intangible
assets -- 1,428 114 178 -- 1,720
Other
operating
expenses 14,731 29,205 8,552 19,653 5,020 77,161
-------- -------- -------- -------- ------- --------
Operating
income/
(loss) $ (2,102) $ 6,252 $ 10,852 $ 11,168 $(8,629) 17,541
======== ======== ======== ======== =======
Interest
expense, net (871)
Losses on
foreign
exchange (87)
--------
Pretax
income 16,583
Provision
for income
taxes 5,909
--------
Income
before
minority
interests $ 10,674
========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Twelve months ended January 31, 2007
------------------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- ------- --------
Gross
revenue $850,132 $1,177,325 $951,389 $582,519 $ -- $3,561,365
======== ========== ======== ======== ======== ==========
Net
revenue $259,737 $ 531,218 $158,727 $274,778 $ -- $1,224,460
Staff
costs 133,481 308,100 66,140 120,809 14,432 642,962
Deprec-
iation
and
amort-
ization 6,455 13,016 3,727 8,084 2,140 33,422
Amortiz-
ation of
intang-
ible
assets -- 6,899 453 653 -- 8,005
Other
operat-
ing
expenses 71,233 155,860 39,317 100,897 14,169 381,476
-------- -------- -------- -------- ------- --------
Operat-
ing
income/
(loss)$ 48,568 $ 47,343 $ 49,090 $ 44,335 $(30,741) 158,595
======== ========== ======== ======== ========
Interest
expense,
net (15,155)
Gains on
foreign
exchange 435
----------
Pretax
income 143,875
Provision
for income
taxes 32,105
----------
Income
before
minority
interests $ 111,770
==========
Twelve months ended January 31, 2006
---------------------------------------------------------
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- ------- --------
Gross
revenue $693,661 $698,222 $854,717 $538,975 $ -- $2,785,575
======== ======== ======== ======== ======= ==========
Net revenue $209,165 $373,859 $136,358 $247,022 $ -- $966,404
Staff costs 144,874 224,879 57,610 108,313 11,557 547,233
Depreciation
and
amortization 5,718 4,912 3,162 7,466 1,794 23,052
Amortization
of
intangible
assets -- 4,071 306 705 -- 5,082
Other
operating
expenses 55,425 107,305 32,601 85,386 11,552 292,269
-------- -------- -------- -------- ------- --------
Operating
income/
(loss) $ 3,148 $ 32,692 $ 42,679 $ 45,152 $(24,903) 98,768
======== ======== ======== ======== ========
Interest
expense, net (3,869)
Losses on
foreign
exchange (303)
--------
Pretax
income 94,596
Provision
for income
taxes 35,185
--------
Income
before
minority
interests $ 59,411
========
UTi Worldwide Inc.
Supplemental Financial Information
(in thousands)
Three months ended Twelve months ended
January 31, January 31,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
(Unaudited)
FORWARDING, CUSTOMS
BROKERAGE & OTHER:
Gross revenue $ 678,995 $ 578,537 $2,546,747 $2,226,803
========== ========== ========== ==========
Net revenue $ 162,240 $ 133,377 $ 603,934 $ 518,938
Staff costs 87,257 77,388 309,245 287,716
Depreciation and
amortization 3,203 3,229 13,619 13,014
Other operating
expenses 44,239 32,729 159,229 133,969
---------- ---------- ---------- ----------
Operating income $ 27,541 $ 20,031 $ 121,841 $ 84,239
========== ========== ========== ==========
CONTRACT LOGISTICS,
DISTRIBUTION & OTHER:
Gross revenue $ 272,276 $ 149,667 $1,014,618 $ 558,772
========== ========== ========== ==========
Net revenue $ 168,951 $ 120,337 $ 620,526 $ 447,466
Staff costs 90,300 71,013 319,285 247,960
Depreciation and
amortization 6,062 2,053 17,663 8,244
Amortization of
intangible assets 1,913 1,720 8,005 5,082
Other operating
expenses 56,841 39,412 208,078 146,748
---------- ---------- ---------- ----------
Operating income $ 13,835 $ 6,139 $ 67,495 $ 39,432
========== ========== ========== ==========
UTi Worldwide Inc.
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth in our
gross and net revenues over the corresponding prior-year period.
Organic
growth
-------
GROSS REVENUES:
Three months ended January 31, 2007 (as
reported) $951,271
Less: Acquisitions impact (2) (107,175)
Add: Currency impact (3) (16,998)
--------
Three months ended January 31, 2007 (as
adjusted) $827,098
========
Three months ended January 31, 2006 $728,204 14%
======== =======
NET REVENUES:
Three months ended January 31, 2007 (as
reported) $331,191
Less: Acquisitions impact (4) (36,138)
Add: Currency impact (3) (5,972)
--------
Three months ended January 31, 2007 (as
adjusted) $289,081
========
Three months ended January 31, 2006 $253,714 14%
======== =======
(2) Represents gross revenues attributable to acquisitions that were
completed on or after November 1, 2005.
(3) Represents the fluctuations in foreign currency exchange rates
when balances are translated into U.S. dollars.
(4) Represents net revenues attributable to acquisitions that were
completed on or after November 1, 2005.
UTi Worldwide Inc.
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth in our
gross and net revenues over the corresponding prior-year period.
Organic
growth
-------
GROSS REVENUES:
Twelve months ended January 31, 2007 (as
reported) $3,561,365
Less: Acquisitions impact (5) (407,893)
Add: Currency impact (6) 5,650
----------
Twelve months ended January 31, 2007 (as
adjusted) $3,159,122
==========
Twelve months ended January 31, 2006 $2,785,575 13%
========== =======
NET REVENUES:
Twelve months ended January 31, 2007 (as
reported) $1,224,460
Less: Acquisitions impact (7) (119,526)
Add: Currency impact (6) 7,702
----------
Twelve months ended January 31, 2007 (as
adjusted) $1,112,636
==========
Twelve months ended January 31, 2006 $ 966,404 15%
========== =======
(5) Represents gross revenues attributable to acquisitions that were
completed on or after February 1, 2005.
(6) Represents the fluctuations in foreign currency exchange rates
when balances are translated into U.S. dollars.
(7) Represents net revenues attributable to acquisitions that were
completed on or after February 1, 2005.