UTi Worldwide Reports Fiscal 2008 First Quarter Results

Adopts Five-Year Strategic Plan Called CLIENTasONE


LONG BEACH, Calif., June 7, 2007 (PRIME NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported increases in gross and net revenues of 22 percent and 24 percent, respectively, for its first quarter ended April 30, 2007.

For the first quarter of fiscal 2008, gross revenues totaled $944.7 million, compared with $773.7 million in the prior-year first quarter. Net revenues rose to $336.0 million for the first quarter of fiscal 2008 from $271.6 million in the first quarter a year ago. Organic growth across all geographic regions, as well as contributions from the company's acquisitions made since February 1, 2006, contributed to the first quarter revenue gains. After adjusting for the impact of these acquisitions, as well as the impact of currency fluctuations on UTi's results, gross and net revenues grew organically by 13 percent and 15 percent, respectively, in the fiscal 2008 first quarter, when compared with the corresponding period a year ago.

"Our first quarter financial results were right on plan and we remain pleased with the consistent levels of organic revenue growth being delivered by UTi's team worldwide," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "During the quarter we made important progress on all areas of focus. We remain committed to driving both improved cost management and organic revenue growth. We have reduced the number of initiatives in the company while maintaining our efforts to enhance on the value of our global supply chain services and solutions."

Operating income in the first quarter of fiscal 2008 was $31.4 million, versus $30.0 million in the fiscal 2007 first quarter. The company posted net income of $18.1 million, or $0.18 per diluted share, for the fiscal 2008 first quarter. This compares with $19.3 million, or $0.20 per diluted share, in the fiscal 2007 first quarter.

"We are excited to embark on our new five year strategic plan, CLIENTasONE, which builds on the success of NextLeap. We are confident that this next phase of our long-term strategy will continue to provide enhanced value to our clients and shareholders over the next five years and beyond," MacFarlane said.

Guidance

The company confirmed its previously stated fiscal 2008 full-year earnings per share guidance in the range of $1.14 to $1.22 cents per diluted share. The company also reiterated its position that the giving of guidance for fiscal 2008 is not an indication of a change in practice in regards to providing guidance in future years.

Investor Conference Call

UTi management will host an investor conference call today, June 7, 2007, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fiscal 2008 first quarter. 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 11:00 a.m. PDT, today, through June 14, 2007 by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using replay passcode 29358239.

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, the company's discussion of CLIENTasONE, the company's long-term strategy, and the company's discussion of its financial goals, including but not limited to margin improvement. 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
                                                   April 30,
                                         -----------------------------
                                             2007             2006
                                         ------------     ------------
                                                  (Unaudited)

 Gross revenues:
   Airfreight forwarding                 $    344,146     $    307,570
   Ocean freight forwarding                   232,290          206,533
   Customs brokerage                           21,883           19,805
   Contract logistics                         141,515          109,161
   Distribution                               118,849           77,796
   Other                                       86,055           52,835
                                         ------------     ------------
     Total gross revenues                $    944,738     $    773,700
                                         ============     ============

 Net revenues:
   Airfreight forwarding                 $     85,246     $     74,889
   Ocean freight forwarding                    36,975           31,529
   Customs brokerage                           21,158           19,159
   Contract logistics                         121,742           93,093
   Distribution                                35,513           29,018
   Other                                       35,407           23,940
                                         ------------     ------------
     Total net revenues                       336,041          271,628

 Staff costs                                  184,717          147,883
 Depreciation and amortization                  9,387            7,436
 Amortization of intangible assets              1,985            1,851
 Other operating expenses                     108,534           84,476
                                         ------------     ------------

   Operating income                            31,418           29,982
 Interest expense, net                         (4,091)          (2,867)
 (Losses)/gains on foreign exchange              (368)             185
                                         ------------     ------------

   Pretax income                               26,959           27,300
 Provision for income taxes                     7,967            7,094
                                         ------------     ------------

   Income before minority interests            18,992           20,206
 Minority interests                              (872)            (882)
                                         ------------     ------------

   Net income (1)                        $     18,120     $     19,324
                                         ============     ============

 Basic earnings per share                $       0.18     $       0.20
 Diluted earnings per share              $       0.18     $       0.20

 Number of weighted-average shares
  outstanding used for per share
  calculations:
     Basic shares                          98,695,869      95,481,624
     Diluted shares                       100,209,000      99,027,366


 (1) In connection with our December 2006 restatement, net income for
     the three months ended April 30, 2006 was increased by $2,732 of
     non-cash items.


 UTi Worldwide Inc.
 Condensed Consolidated Balance Sheets
 (in thousands)

                                           April 30,       January 31,
                                             2007             2007
                                         ------------     ------------
                                         (Unaudited)
 ASSETS

 Cash and cash equivalents               $    224,648     $    278,408
 Trade receivables, net                       721,484          662,804
 Deferred income tax assets                    12,735           10,889
 Other current assets                          62,499           57,563
                                         ------------     ------------
     Total current assets                   1,021,366        1,009,664

 Property, plant and equipment, net           130,782          127,990
 Goodwill and other intangible
  assets, net                                 501,490          490,884
 Investments                                    3,933            3,096
 Deferred income tax assets                    11,674           12,725
 Other non-current assets                      17,196           15,511
                                         ------------     ------------

     Total assets                        $  1,686,441     $  1,659,870
                                         ============     ============

 LIABILITIES & SHAREHOLDERS' EQUITY

 Bank lines of credit                    $     68,244     $     79,057
 Short-term borrowings                          1,345            2,808
 Current portion of capital lease
  obligations                                  15,164           13,550
 Trade payables and other accrued
  liabilities                                 606,762          603,575
 Income taxes payable                          20,247           15,333
 Deferred income tax liabilities                3,304            3,954
                                         ------------     ------------
     Total current liabilities                715,066          718,277

 Long-term borrowings                         211,308          211,458
 Capital lease obligations                     21,825           24,099
 Deferred income tax liabilities               31,485           30,291
 Retirement fund obligations                    7,633            7,549
 Other long-term liabilities                   14,005           12,078

 Minority interests                            18,537           18,844

 Commitments and contingencies

 Shareholders' equity:
   Common stock                               422,183          419,111
   Retained earnings                          276,119          266,136
   Accumulated other comprehensive
    loss                                      (31,720)         (47,973)
                                         ------------     ------------
     Total shareholders' equity               666,582          637,274
                                         ------------     ------------

     Total liabilities and
      shareholders' equity               $  1,686,441     $  1,659,870
                                         ============     ============


 UTi Worldwide Inc.
 Consolidated Statements of Cash Flows
 (in thousands)

                                              Three months ended
                                                   April 30,
                                         -----------------------------
                                             2007             2006
                                         ------------     ------------
                                                  (Unaudited)

 OPERATING ACTIVITIES:
 Net income                              $     18,120     $     19,324
 Adjustments to reconcile net income
  to net cash used in operating
  activities:
   Share-based compensation costs/
    (benefits), net                               365             (138)
   Depreciation and amortization                9,387            7,436
   Amortization of intangible assets            1,985            1,851
   Deferred income taxes                         (363)            (928)
   Tax (loss)/benefit relating to
    exercise of stock options                    (667)             386
   Excess tax benefits from
    share-based compensation                      (24)            (329)
   (Loss)/gain on disposal of
    property, plant and equipment                  29              (76)
   Minority interest and other                   (858)           1,003
   Changes in operating assets and
    liabilities:
       Increase in trade receivables          (44,287)         (92,240)
       Increase in other current
        assets                                 (3,689)          (4,870)
       Decrease in trade payables             (24,096)         (26,291)
       Increase in accrued
        liabilities and other
        current liabilities                     7,696           35,634
                                         ------------     ------------
     Net cash used in operating
      activities                              (36,402)         (59,238)

 INVESTING ACTIVITIES:
 Purchases of property, plant and
  equipment                                    (6,143)          (4,543)
 Proceeds from disposal of property,
  plant and equipment                             425              399
 Increase in other non-current assets            (209)          (5,325)
 Acquisitions and contingent
  earn-out payments                            (3,666)        (197,238)
 Other                                           (818)            (860)
                                         ------------     ------------
     Net cash used in investing
      activities                              (10,411)        (207,567)

 FINANCING ACTIVITIES:
 (Decrease)/increase in borrowings
  under bank lines of credit                   (8,615)         158,998
 Decrease in short-term borrowings             (1,570)          (1,873)
 Proceeds from issuing of long-term
  borrowings                                       --              211
 Repayment of long-term borrowings                (26)            (747)
 Repayments of capital lease
  obligations                                  (5,487)          (2,155)
 Net proceeds from issuance of
  ordinary shares                               3,378            5,652
 Excess tax benefits from
  share-based compensation                         24              329
                                         ------------     ------------
     Net cash (used in)/provided by
      financing activities                    (12,296)         160,415

 Effect of foreign exchange rate
  changes on cash and cash
  equivalents                                   5,349            1,949
                                         ------------     ------------
 Net decrease in cash and cash
  equivalents                                 (53,760)        (104,441)
 Cash and cash equivalents at
  beginning of period                         278,408          246,510
                                         ------------     ------------
 Cash and cash equivalents at end of
  period                                 $    224,648     $    142,069
                                         ============     ============


 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)

                           Three months ended April 30, 2007
                   ------------------------------------------------
                                             Americas
                                             Contract
                                Americas     Logistics
                                 Freight        and         Asia
                     EMENA     Forwarding   Distribution   Pacific
                   ---------   ----------   ------------  ---------

 Gross revenue     $ 239,506    $ 134,610    $ 195,930    $ 107,058
                   =========    =========    =========    =========

 Net revenue       $  75,852    $  39,526    $ 112,804    $  22,012
 Staff costs          43,425       23,061       62,361       10,868
 Depreciation and
  amortization         1,917          600        3,195          514
 Amortization of
  intangible assets       --           --        1,719           --
 Other operating
  expenses            21,994       11,098       35,631        5,232
                   ---------    ---------    ---------    ---------
   Operating
    income/(loss)  $   8,516    $   4,767    $   9,898    $   5,398
                   =========    =========    =========    =========
 Interest expense,
  net
 Losses on foreign
  exchange

   Pretax income

 Provision for
  income taxes

   Income before
    minority
    interests

                   ---------------------------------------------------
                                         Global
                    Greater            Specialized
                     China    Africa    Solutions  Corporate   Total
                   --------- ---------- ---------  --------- ---------

 Gross revenue     $ 118,249  $ 132,458  $ 16,927  $     --  $ 944,738
                   =========  =========  ========  ========  =========

 Net revenue       $  18,257  $  52,676  $ 14,914  $     --  $ 336,041
 Staff costs           7,360     25,013     6,968     5,661    184,717
 Depreciation and
  amortization           605      1,749       387       420      9,387
 Amortization of
  intangible assets      111         --       155        --      1,985
 Other operating
  expenses             5,836     19,159     5,156     4,428    108,534
                   ---------  ---------  --------  --------  ---------
   Operating
    income/(loss)  $   4,345  $   6,755  $  2,248  $(10,509)    31,418
                   =========  =========  ========  ========
 Interest expense,
  net                                                           (4,091)
 Losses on foreign
  exchange                                                        (368)
                                                             ---------
   Pretax income                                                26,959
 Provision for
  income taxes                                                   7,967
                                                             ---------
   Income before
    minority
    interests                                                $  18,992
                                                             =========


 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)

                           Three months ended April 30, 2006
                   ------------------------------------------------
                                             Americas
                                             Contract
                                Americas     Logistics
                                 Freight        and         Asia
                     EMENA     Forwarding   Distribution   Pacific
                   ---------   ----------   ------------  ---------

 Gross revenue     $ 184,093    $ 113,755    $ 127,060    $ 101,749
                   =========    =========    =========    =========

 Net revenue       $  54,329    $  34,682    $  80,814    $  18,880
 Staff costs          28,863       21,776       48,670        8,736
 Depreciation and
  amortization         1,408          538        2,067          417
 Amortization of
  intangible assets       --           --        1,553           --
 Other operating
  expenses            16,107        9,783       22,172        4,377
                   ---------    ---------    ---------    ---------
   Operating
    income/(loss)  $   7,951    $   2,585    $   6,352    $   5,350
                   =========    =========    =========    =========
 Interest expense,
  net
 Gains on foreign
  exchange

   Pretax income

 Provision for
  income taxes

   Income before
    minority
    interests

                   ---------------------------------------------------
                                         Global
                    Greater            Specialized
                     China    Africa    Solutions  Corporate   Total
                   --------- ---------- ---------  --------- ---------

 Gross revenue     $ 105,931  $ 121,837  $ 19,275  $     --  $ 773,700
                   =========  =========  ========  ========  =========

 Net revenue       $  16,757  $  51,782  $ 14,384  $     --  $ 271,628
 Staff costs           6,196     24,218     5,900     3,524    147,883
 Depreciation and
  amortization           418      1,738       346       504      7,436
 Amortization of
  intangible assets      115         --       183        --      1,851
 Other operating
  expenses             4,654     19,738     4,648     2,997     84,476
                   ---------  ---------  --------  --------  ---------
   Operating
    income/(loss)  $   5,374  $   6,088  $  3,307  $ (7,025)    29,982
                   =========  =========  ========  ========
 Interest expense,
  net                                                           (2,867)
 Gains on foreign
  exchange                                                         185
                                                             ---------
   Pretax income                                                27,300
 Provision for
  income taxes                                                   7,094
                                                             ---------
   Income before
    minority
    interests                                                $  20,206
                                                             =========


 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 April 30, 2007 (as reported)   $944,738
   Less: Acquisitions impact (1)                      (69,905)
   Add:  Currency impact (2)                           (1,161)
                                                     --------
   Three months ended April 30, 2007 (as adjusted)   $873,672
                                                     ========

   Three months ended April 30, 2006                 $773,700      13%
                                                     ========  =======


 NET REVENUES:
   Three months ended April 30, 2007 (as reported)   $336,041
   Less: Acquisitions impact (3)                      (26,883)
   Add:  Currency impact (2)                            4,048
                                                     --------
   Three months ended April 30, 2007 (as adjusted)   $313,206
                                                     ========

   Three months ended April 30, 2006                 $271,628      15%
                                                     ========  =======


 (1) Represents gross revenues attributable to acquisitions that were
     completed on or after February 1, 2006.

 (2) Represents the fluctuations in foreign currency exchange rates
     when balances are translated into U.S. dollars.

 (3) Represents net revenues attributable to acquisitions that were
     completed on or after February 1, 2006.


            

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