-- Company Reports Goodwill Impairment and Other Charges --
-- Results Impacted by Adverse Currency Changes and by Rapid Decline
in Freight and Logistics Volumes Late in Fourth Quarter --
-- Latest Cost Reduction Actions to Save $50 Million in Fiscal 2010 --
LONG BEACH, Calif., March 26, 2009 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2009 fourth quarter ended January 31, 2009. The company reported a loss in the 2009 fiscal fourth quarter due to goodwill impairment and other charges. Results in the fiscal 2009 fourth quarter were also adversely impacted by the significant and rapid decline in freight and logistics volumes and by the considerable weakening of most currencies against the U.S. dollar.
Fiscal Fourth Quarter 2009 vs. 2008 Results:
* Revenues decreased 26 percent to $894.1 million from $1,202.2 million. * Net revenues decreased 17 percent to $332.7 million from $400.8 million. * Net loss was $89.8 million, or $0.89 per diluted share, compared to net income of $18.0 million, or $0.18 per diluted share. * Excluding goodwill impairment and other charges, adjusted net income in the 2009 fiscal fourth quarter was $15.3 million, or $0.15 per diluted share; by further excluding the impact from currency changes, adjusted earnings per share was $0.21 per diluted share. * Excluding after-tax restructuring charges of $6.2 million, adjusted net income in last year's fourth quarter was $24.2 million, or $0.24 per diluted share.
A reconciliation of GAAP to non-GAAP results is provided in the supplemental financial information attached to this release.
The company also reported that net cash provided by operating activities was $150.5 million in fiscal 2009 compared to $106.7 million in fiscal 2008. Net cash provided by operating activities in the fiscal 2009 fourth quarter was $77.6 million compared to $69.3 million in the fourth quarter last year.
Eric W. Kirchner, chief executive officer, said, "Our fourth quarter results were clearly impacted by the weakening economic environment and the slowing in global trade, which reduced volumes in forwarding and logistics - particularly in the month of January. Total operating costs (including purchased transportation costs) also decreased significantly in the quarter, demonstrating the flexibility of our business model and the impact of our earlier cost reduction measures. These mitigating factors did not fully offset the decrease in revenues, however, because of the speed of the volume contraction and the significant strengthening of the U.S. dollar against most currencies.
"While our operating expenses are at their lowest level in nearly two years, we have taken further steps since the beginning of the quarter to reduce costs in the current environment, without compromising our focus on providing the highest levels of client service. These actions include a salary freeze and a revision to our incentive structure for fiscal 2010, a reduction in headcount where necessary in accordance with volume declines and a further controlling of discretionary expenses such as travel. These actions are expected to reduce operating costs for fiscal 2010 by approximately $50 million from our fourth-quarter run rate. We continue to focus on our clients, deepening our existing relationships and winning new business, while remaining disciplined on cost control."
The decrease in revenues in the 2009 fiscal fourth quarter was due to the significant decline in forwarding and logistics volumes, as well as the exiting of businesses through the company's earlier cost reduction plan. The net revenue decline was somewhat mitigated by lower purchased transportation costs in the company's forwarding business. Currency fluctuations also had a significant adverse impact on revenues in the fiscal 2009 fourth quarter. On an organic, constant currency basis, net revenue was essentially flat in the 2009 fourth quarter compared to a year ago.
Goodwill impairment and other charges in the fiscal 2009 fourth quarter totaled $124.5 million on a pre-tax basis, $105.1 million after taxes, or $1.04 per diluted share, and included three components. First, the company performed an analysis of the value of its goodwill and other intangible assets as of January 31, 2009 based on the current environment and determined that an impairment of these assets occurred. The company recorded a non-cash charge for this impairment totaling $109.9 million on a pre-tax basis ($94.7 million after taxes, or $0.94 per diluted share). Second, the company recorded pre-tax restructuring costs of $2.9 million ($2.2 million after taxes, or $0.02 per diluted share) primarily related to its previously announced information technology restructuring plan. Third, pre-tax severance and related costs of $11.7 million ($8.2 million after taxes, or $0.08 per diluted share) were also recorded in the quarter. In the 2008 fiscal fourth quarter, the company recorded pre-tax restructuring charges of $8.4 million ($6.2 million after taxes, or $0.06 per diluted share) related to its earlier cost reduction plan. A reconciliation of GAAP to non-GAAP results is provided in the supplemental financial information attached to this release.
Operating expenses in the fourth quarter of fiscal 2009, excluding purchased transportation costs, were $430.5 million. Excluding goodwill impairment and other charges described above, adjusted operating expenses totaled $306.0 million, a decrease of 16 percent compared to adjusted operating expenses in the same period last year. The decrease primarily reflects lower costs associated with the declining volumes, as well as benefits achieved through cost reduction efforts.
The company reported an operating loss in the 2009 fourth quarter of $97.8 million. Excluding goodwill impairment and other charges described above, adjusted operating income in the fiscal 2009 fourth quarter was $26.7 million, which represented 8.0 percent of net revenues. This compares to adjusted operating income in the year-ago fourth quarter of $36.0 million, or 9.0 percent of net revenues.
Investor Conference Call:
UTi management will host an investor conference call today, March 26, 2009, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fiscal 2009 fourth quarter. Investment professionals are invited to participate in the live call by dialing 877-570-6091 (domestic) or 702-696-4824 (international) using conference ID 90233055. 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 April 2, 2009, by calling 800-642-1687 (domestic) or 706-645-9291 (international) and using replay passcode 90233055.
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. UTi believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance and the company's 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, the company has referred to revenue and net revenue growth adjusted to exclude the impact of dispositions and acquisitions made since the beginning of the comparative period and the impact of currency fluctuations between comparable periods, to operating expenses adjusted to exclude purchased transportation costs, and by further excluding goodwill impairment and other charges, including restructuring, severance and other expenses, and to operating income (loss), net income (loss) and diluted earnings (loss) per share adjusted to exclude goodwill impairment and other charges, including restructuring, severance and other expenses. 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. The company has also provided this information because such adjustments make performance information more comparable to prior disclosures for investors, and may enhance the ability of investors to analyze the company's performance. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. 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 financial goals, including the expected reduction of operating expenses by $50 million in fiscal 2010, and the outlook for the future. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including but not limited to the global economic slowdown that is adversely affecting trade volumes and the financial condition of many of the company's customers; disruptions in the global equity and credit markets which adversely impact the company's operations and ability to refinance its outstanding indebtedness or otherwise raise capital; the demand for the company's services; the impact of cost reduction measures recently undertaken by the company; the costs and impact of the company's information technology restructuring plan; integration risks associated with acquisitions; increased competition; the impact of volatile 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 EMENA; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; risks associated with, and costs and expenses the company will incur as a result of, the ongoing publicly announced U.S. Department of Justice and other governmental investigations into the pricing practices of the air cargo transportation industry and other similar or related investigations and lawsuits; the success and effects of new strategies and of the realignment of the company's executive management structure; 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, the company cannot assure the reader 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 the company's 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 Statements of Operations
(in thousands, except share and per share amounts)
Three months ended Year ended
January 31, January 31,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
Revenues:
Airfreight
forwarding $ 287,567 $ 434,945 $ 1,621,602 $ 1,553,551
Ocean freight
forwarding 249,190 304,135 1,203,643 1,101,129
Customs brokerage 22,504 27,156 109,436 98,031
Contract
logistics 148,530 152,367 663,656 618,599
Distribution 107,782 169,964 564,906 624,399
Other 78,500 113,608 380,474 370,545
----------- ----------- ----------- -----------
Total revenues 894,073 1,202,175 4,543,717 4,366,254
----------- ----------- ----------- -----------
Purchased
transportation
costs:
Airfreight
forwarding 214,006 348,939 1,275,569 1,235,010
Ocean freight
forwarding 201,842 254,924 1,001,275 926,224
Customs brokerage 1,130 1,276 5,987 3,668
Contract
logistics 24,819 16,249 94,963 81,656
Distribution 76,995 118,410 404,756 416,059
Other 42,587 61,586 214,827 214,823
Staff costs 192,951 216,395 844,255 800,891
Depreciation and
amortization 9,821 10,279 41,753 39,306
Amortization of
intangible assets 3,332 3,347 12,971 9,436
Restructuring
charges 2,867 8,395 8,903 8,395
Goodwill and
intangible assets
impairment 109,941 -- 109,941 --
Other operating
expenses 111,613 134,786 505,223 480,308
----------- ----------- ----------- -----------
Total operating
expenses 991,904 1,174,586 4,520,423 4,215,776
----------- ----------- ----------- -----------
Operating (loss)/
income (97,831) 27,589 23,294 150,478
Interest expense,
net (4,554) (4,171) (17,243) (15,924)
Other (expense)/
income, net (243) 2,036 1,437 4,726
----------- ----------- ----------- -----------
Pretax (loss)/
income (102,628) 25,454 7,488 139,280
(Benefit)/provision
for income taxes (12,180) 7,074 17,512 38,161
----------- ----------- ----------- -----------
(Loss)/income
before minority
interests (90,448) 18,380 (10,024) 101,119
Minority interests 642 (366) (2,161) (2,905)
----------- ----------- ----------- -----------
(Loss)/income from
continuing
operations (89,806) 18,014 (12,185) 98,214
Discontinued
operations:
Operating income,
net of tax -- -- 144 472
Gain on sale, net
of tax -- -- 7,404 --
----------- ----------- ----------- -----------
Net (loss)/income $ (89,806) $ 18,014 $ (4,637) $ 98,686
=========== =========== =========== ===========
Basic (loss)/
earnings per
share:
Continuing
operations $ (0.90) $ 0.18 $ (0.12) $ 0.99
Discontinued
operations -- -- 0.08 0.01
----------- ----------- ----------- -----------
$ (0.90) $ 0.18 $ (0.04) 1.00
=========== =========== =========== ===========
Diluted (loss)/
earnings per
share:
Continuing
operations $ (0.89) $ 0.18 $ (0.12) $ 0.99
Discontinued
operations -- -- 0.08 --
----------- ----------- ----------- -----------
$ (0.89) $ 0.18 $ (0.04) $ 0.99
=========== =========== =========== ===========
Number of weighted-
average shares
outstanding used
for per share
calculations:
Basic shares 99,589,987 99,988,252 99,406,664 99,112,752
Diluted shares 100,747,995 99,356,030 100,998,687 100,171,805
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2009 2008
----------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 256,869 $ 289,141
Trade receivables, net 645,275 865,019
Deferred income tax assets 19,192 18,768
Other current assets 79,869 79,207
----------- -----------
Total current assets 1,001,205 1,252,135
Property, plant and equipment, net 163,441 154,123
Goodwill and other intangible assets, net 442,691 617,861
Investments 2,940 2,765
Deferred income tax assets 23,831 17,311
Other non-current assets 14,578 30,481
----------- -----------
Total assets $ 1,648,686 $ 2,074,676
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 69,978 $ 113,199
Short-term borrowings 6,899 5,913
Current portion of long-term borrowings 66,666 33,333
Current portion of capital lease obligations 15,878 21,701
Trade payables and other accrued liabilities 593,271 817,058
Income taxes payable 10,425 12,622
Deferred income tax liabilities 2,493 5,030
----------- -----------
Total current liabilities 765,610 1,008,856
Long-term borrowings 115,747 178,047
Capital lease obligations 20,754 30,612
Deferred income tax liabilities 27,542 38,063
Retirement fund obligations 6,947 4,287
Other non-current liabilities 19,116 19,322
Minority interests 16,224 21,289
Commitments and contingencies
Shareholders' equity:
Common stock 450,553 435,355
Retained earnings 338,461 349,237
Accumulated other comprehensive loss (112,268) (10,392)
----------- -----------
Total shareholders' equity 676,746 774,200
----------- -----------
Total liabilities and shareholders'
equity $ 1,648,686 $ 2,074,676
=========== ===========
UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Year ended
January 31,
------------------------
2009 2008
----------- -----------
(Unaudited)
OPERATING ACTIVITIES:
Net (loss)/income $ (4,637) $ 98,686
Adjustments to reconcile net (loss)/income
to net cash provided by operating
activities:
Share-based compensation costs, net 10,024 9,758
Depreciation and amortization 41,979 39,687
Amortization of intangible assets 12,971 9,436
Restructuring charges 2,867 8,395
Goodwill and intangible assets impairment 109,941 --
Deferred income taxes (16,081) (1,703)
Uncertain tax positions (1,761) 401
Gain on sales of subsidiaries and subsidiary
shares (7,404) (3,156)
Tax benefit relating to exercise of stock
options 868 1,737
Excess tax benefits from share-based
compensation (464) (771)
Gain on disposal of property, plant and
equipment (1,393) (63)
Minority interest and other 3,802 493
Changes in operating assets and liabilities (256) (56,182)
----------- -----------
Net cash provided by operating activities 150,456 106,718
INVESTING ACTIVITIES:
Purchases of property, plant and equipment (46,422) (31,704)
Proceeds from disposal of property, plant
and equipment 4,519 3,863
Proceeds from sale of subsidiary 8,707 --
Decrease/(increase) in other non-current
assets 2,937 (13,059)
Acquisitions and contingent earn-out payments (30,870) (67,566)
Other (1,009) (1,577)
----------- -----------
Net cash used in investing activities (62,138) (110,043)
FINANCING ACTIVITIES:
(Decrease)/increase in bank lines of credit (25,003) 25,506
Increase in short-term borrowings 1,777 1,577
Proceeds from issuance of long-term
borrowings 5,667 --
Repayment of long-term borrowings (34,143) (1,064)
Repayment of capital lease obligations (23,388) (19,907)
Dividends paid to minority interests (567) --
Net proceeds from issuance of ordinary shares 4,709 5,715
Excess tax benefits from share-based
compensation 464 771
Dividends paid (6,139) (5,969)
----------- -----------
Net cash (used in)/provided by financing
activities (76,623) 6,629
Effect of foreign exchange rate changes on
cash and cash equivalents (43,967) 7,429
----------- -----------
Net (decrease)/increase in cash and cash
equivalents (32,272) 10,733
Cash and cash equivalents at beginning of
period 289,141 278,408
----------- -----------
Cash and cash equivalents at end of period $ 256,869 $ 289,141
=========== ===========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Three months ended January 31, 2009
---------------------------------------------
Contract
Freight Logistics and
Forwarding Distribution Corporate Total
---------- ------------ --------- -----
Revenues $ 608,897 $ 285,176 $ -- $ 894,073
--------- --------- --------- ---------
Purchased
transportation costs 452,459 108,920 -- 561,379
Staff costs 94,858 96,747 1,346 192,951
Depreciation and
amortization 3,677 6,131 13 9,821
Amortization of
intangible assets 890 2,442 -- 3,332
Restructuring charges 349 209 2,309 2,867
Goodwill and intangible
assets impairment -- 109,941 -- 109,941
Other operating
expenses 40,801 65,554 5,258 111,613
--------- --------- --------- ---------
Total operating
expenses 593,034 389,944 8,926 991,904
--------- --------- --------- ---------
Operating income/(loss) $ 15,863 $(104,768) $ (8,926) (97,831)
========= ========= =========
Interest expense, net (4,554)
Other expense, net (243)
---------
Pretax loss (102,628)
Benefit for income taxes (12,180)
---------
Loss before minority
interests (90,448)
Minority interests 642
---------
Loss from continuing
operations (89,806)
Discontinued operations:
Operating income, net
of tax --
Gain on sale, net of tax --
---------
Net loss $ (89,806)
=========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Three months ended January 31, 2008
----------------------------------------------
Contract
Freight Logistics and
Forwarding Distribution Corporate Total
---------- ------------ --------- -----
Revenues $ 809,082 $ 393,093 $ -- $1,202,175
--------- --------- --------- ----------
Purchased
transportation costs 635,604 165,780 -- 801,384
Staff costs 94,234 119,075 3,086 216,395
Depreciation and
amortization 3,711 6,462 106 10,279
Amortization of
intangible assets 863 2,484 -- 3,347
Restructuring charges 912 5,800 1,683 8,395
Other operating
expenses 41,453 87,357 5,976 134,786
--------- --------- --------- ----------
Total operating
expenses 776,777 386,958 10,851 1,174,586
--------- --------- --------- ----------
Operating income/
(loss) $ 32,305 $ 6,135 $ (10,851) 27,589
========= ========= =========
Interest expense, net (4,171)
Other income, net 2,036
----------
Pretax income 25,454
Provision for income
taxes 7,074
----------
Income before minority
interests 18,380
Minority interests (366)
----------
Income from continuing
operations 18,014
Discontinued operations:
Operating income, net
of tax --
Gain on sale, net of
tax --
----------
Net income $ 18,014
==========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Year ended January 31, 2009
------------------------------------------------
Contract
Freight Logistics and
Forwarding Distribution Corporate Total
---------- ------------ --------- -----
Revenues $3,156,039 $1,387,678 $ -- $4,543,717
---------- ---------- --------- ----------
Purchased
transportation
costs 2,438,756 558,621 -- 2,997,377
Staff costs 396,019 439,569 8,667 844,255
Depreciation and
amortization 15,605 25,924 224 41,753
Amortization of
intangible assets 3,896 9,075 -- 12,971
Restructuring charges 2,731 3,863 2,309 8,903
Goodwill and
intangible assets
impairment -- 109,941 -- 109,941
Other operating
expenses 172,505 314,146 18,572 505,223
---------- ---------- --------- ----------
Total operating
expenses 3,029,512 1,461,139 29,772 4,520,423
---------- ---------- --------- ----------
Operating income/
(loss) $ 126,527 $ (73,461) $ (29,772) 23,294
========== ========== =========
Interest expense, net (17,243)
Other income, net 1,437
----------
Pretax income 7,488
Provision for income
taxes 17,512
----------
Loss before minority
interests (10,024)
Minority interests (2,161)
----------
Loss from continuing
operations (12,185)
Discontinued
operations:
Operating income,
net of tax 144
Gain on sale, net
of tax 7,404
----------
Net loss $ (4,637)
==========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
Year ended January 31, 2008
------------------------------------------------
Contract
Freight Logistics and
Forwarding Distribution Corporate Total
---------- ------------ --------- -----
Revenues $2,927,535 $1,438,719 $ -- $4,366,254
---------- ----------- --------- ----------
Purchased
transportation
costs 2,293,861 583,579 -- 2,877,440
Staff costs 337,756 451,123 12,012 800,891
Depreciation and
amortization 13,661 25,352 293 39,306
Amortization of
intangible assets 863 8,573 -- 9,436
Restructuring charges 912 5,800 1,683 8,395
Other operating
expenses 149,977 316,839 13,492 480,308
---------- ----------- --------- ----------
Total operating
expenses 2,797,030 1,391,266 27,480 4,215,776
---------- ----------- --------- ----------
Operating income/
(loss) $ 130,505 $ 47,453 $ (27,480) 150,478
========== =========== =========
Interest expense, net (15,924)
Other income, net 4,726
----------
Pretax income 139,280
Provision for income
taxes 38,161
----------
Income before
minority interests 101,119
Minority interests (2,905)
----------
Income from
continuing
operations 98,214
Discontinued
operations:
Operating income,
net of tax 472
Gain on sale, net
of tax --
----------
Net income $ 98,686
==========
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
Three months ended January 31, 2009
------------------------------------------------
Contract
Contract Logistics
Logistics Freight and
Freight and Forwarding Distribution
Forwarding Distribution Net Net
Revenue Revenue Revenue Revenue
------- ------- ------- -------
EMENA $ 213,656 $ 55,139 $ 61,960 $ 38,365
Americas 124,894 162,996 36,688 89,161
Asia Pacific 195,085 8,563 39,085 5,433
Africa 75,262 58,478 18,705 43,297
Corporate -- -- --
---------- ---------- ---------- ----------
Total $ 608,897 $ 285,176 $ 156,438 $ 176,256
========== ========== ========== ==========
Goodwill
and
Operating Intangible
(Loss)/ Restructuring Assets
Income Charges Impairment
------- ------- ----------
EMENA $ (5,986) $ -- $ 8,560
Americas (92,200) 14 92,520
Asia Pacific 10,164 -- --
Africa (883) 544 8,861
Corporate (8,926) 2,309 --
---------- ---------- ----------
Total $ (97,831) $ 2,867 $ 109,941
========== ========== ==========
Three months ended January 31, 2008
------------------------------------------------
Contract
Contract Logistics
Logistics Freight and
Freight and Forwarding Distribution
Forwarding Distribution Net Net
Revenue Revenue Revenue Revenue
------- ------- ------- -------
EMENA $ 251,174 $ 75,090 $ 65,177 $ 40,140
Americas 155,339 233,823 39,777 128,283
Asia Pacific 305,523 8,389 41,621 5,805
Africa 97,046 75,791 26,903 53,085
Corporate -- -- -- --
---------- ---------- ---------- ----------
Total $ 809,082 $ 393,093 $ 173,478 $ 227,313
========== ========== ========== ==========
Operating Restructuring
Income/(Loss) Charges
------------- -------
EMENA $ 9,667 $ 62
Americas 9,393 2,868
Asia Pacific 12,127 384
Africa 7,253 3,398
Corporate (10,851) 1,683
---------- ----------
Total $ 27,589 $ 8,395
========== ==========
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
Year ended January 31, 2009
---------------------------
Contract
Contract Logistics
Logistics Freight and
Freight and Forwarding Distribution
Forwarding Distribution Net Net
Revenue Revenue Revenue Revenue
------- ------- ------- -------
EMENA $1,091,758 $ 256,529 $ 285,786 $ 165,441
Americas 627,824 807,144 166,525 432,058
Asia Pacific 1,065,565 35,079 172,883 22,451
Africa 370,892 288,926 92,089 209,107
Corporate -- -- -- (29,772)
---------- ---------- ---------- ----------
Total $3,156,039 $1,387,678 $ 717,283 $ 829,057
========== ========== ========== ==========
Goodwill
and
Operating Intangible
(Loss)/ Restructuring Assets
Income Charges Impairment
------- ------- ----------
EMENA $ 24,666 $ 1,558 $ 8,560
Americas (51,914) 3,783 92,520
Asia Pacific 48,847 240 --
Africa 31,467 1,013 8,861
Corporate (29,772) 2,309 --
---------- ---------- ----------
Total $ 23,294 $ 8,903 $ 109,941
========== ========== ==========
Year ended January 31, 2008
------------------------------------------------
Contract
Contract Logistics
Logistics Freight and
Freight and Forwarding Distribution
Forwarding Distribution Net Net
Revenue Revenue Revenue Revenue
------- ------- ------- -------
EMENA $ 867,768 $ 248,602 $ 220,652 $ 128,887
Americas 595,499 864,353 162,262 493,291
Asia Pacific 1,100,219 32,274 158,722 22,426
Africa 364,049 293,490 92,038 210,536
Corporate -- -- -- --
---------- ---------- ---------- ----------
Total $2,927,535 $1,438,719 $ 633,674 $ 855,140
========== ========== ========== ==========
Operating Restructuring
Income/(Loss) Charges
------------- -------
EMENA $ 37,331 $ 62
Americas 55,417 2,868
Asia Pacific 47,939 384
Africa 37,271 3,398
Corporate (27,480) 1,683
---------- ----------
Total $ 150,478 $ 8,395
========== ==========
UTi Worldwide Inc.
Supplemental Financial Information - Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Three months ended January 31, 2009
Non
US GAAP Adjustment US GAAP
----------- ----------- -----------
Revenue $ 894,073 $ -- $ 894,073
----------- ----------- -----------
Purchased transportation costs 561,379 -- 561,379
Staff costs 192,951 (10,609) 182,342
Depreciation and amortization 9,821 -- 9,821
Amortization of intangible
assets 3,332 -- 3,332
Restructuring charges 2,867 (2,867) --
Goodwill and intangible assets
impairment 109,941 (109,941) --
Other operating expenses 111,613 (1,100) 110,513
----------- ----------- -----------
Operating income/(loss) (97,831) 124,517 26,686
Interest expense, net (4,554) -- (4,554)
Other expense, net (243) -- (243)
----------- ----------- -----------
Pretax income/(loss) (102,628) 124,517 21,889
Provision/(benefit) for income
taxes (12,180) 19,421 7,241
----------- ----------- -----------
Income/(loss) before minority
interests (90,448) 105,096 14,648
Minority interests 642 -- 642
----------- ----------- -----------
Income/(loss) from continuing
operations (89,806) 105,096 15,290
Discontinued operations:
Operating income, net of tax -- -- --
Gain on sale, net of tax -- -- --
----------- ----------- -----------
Net income/(loss)(1) $ (89,806) $ 105,096 $ 15,290
=========== =========== ===========
Basic earnings/(loss) per
share $ (0.90) $ 1.05 $ 0.15
Diluted earnings/(loss) per
share $ (0.89) $ 1.04 $ 0.15
Impact of foreign currency:
Diluted earnings per share $ 0.15
Foreign currency impact 0.06
-----------
Currency adjusted earnings
per share $ 0.21
===========
(1) In connection with the impairment of goodwill and intangible
assets, our information technology restructuring plan, and other
severances and related activities, net income for the three
months ended January 31, 2009 was decreased by staff costs,
restructuring charges, goodwill and intangible assets impairment,
and other operating expenses totaling $105,096, net of tax.
UTi Worldwide Inc.
Supplemental Financial Information - Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Three months ended January 31, 2008
Non
US GAAP Adjustment US GAAP
----------- ----------- -----------
Revenue $ 1,202,175 $ -- $ 1,202,175
----------- ----------- -----------
Purchased transportation costs 801,384 -- 801,384
Staff costs 216,395 -- 216,395
Depreciation and amortization 10,279 -- 10,279
Amortization of intangible
assets 3,347 -- 3,347
Restructuring charges 8,395 (8,395) --
Other operating expenses 134,786 -- 134,786
----------- ----------- -----------
Operating income 27,589 8,395 35,984
Interest expense, net (4,171) -- (4,171)
Other income, net 2,036 -- 2,036
----------- ----------- -----------
Pretax income 25,454 8,395 33,849
Provision for income taxes 7,074 2,200 9,274
----------- ----------- -----------
Income before minority
interests 18,380 6,195 24,575
Minority interests (366) -- (366)
----------- ----------- -----------
Income from continuing
operations 18,014 6,195 24,209
Discontinued operations:
Operating income, net of tax -- -- --
Gain on sale, net of tax -- -- --
----------- ----------- -----------
Net income(2) $ 18,014 $ 6,195 $ 24,209
=========== =========== ===========
Basic earnings per share $ 0.18 $ 0.06 $ 0.24
Diluted earnings per share $ 0.18 $ 0.06 $ 0.24
Impact of foreign currency:
Diluted earnings per share $ 0.24
Foreign currency impact (0.04)
-----------
Currency adjusted earnings
per share $ 0.20
===========
(2) In connection with our January 2008 restructure plan, net income
for the three months ended January 31, 2008 was decreased by
employee severance and benefits and other exit costs totaling
$6,195, net of tax.
UTi Worldwide Inc.
Supplemental Financial Information - Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Year ended January 31, 2009
Non
US GAAP Adjustment US GAAP
----------- ----------- -----------
Revenue $ 4,543,717 $ -- $ 4,543,717
----------- ----------- -----------
Purchased transportation costs 2,997,377 -- 2,997,377
Staff costs 844,255 (10,609) 833,646
Depreciation and amortization 41,753 -- 41,753
Amortization of intangible
assets 12,971 -- 12,971
Restructuring charges 8,903 (8,903) --
Goodwill and intangible assets
impairment 109,941 (109,941) --
Other operating expenses 505,223 (1,100) 504,123
----------- ----------- -----------
Operating income 23,294 130,553 153,847
Interest expense, net (17,243) -- (17,243)
Other income, net 1,437 -- 1,437
----------- ----------- -----------
Pretax income 7,488 130,553 138,041
Provision for income taxes 17,512 21,092 38,604
----------- ----------- -----------
Income/(loss) before minority
interests (10,024) 109,461 99,437
Minority interests (2,161) -- (2,161)
----------- ----------- -----------
Income/(loss) from continuing
operations (12,185) 109,461 97,276
Discontinued operations:
Operating income, net of tax 144 -- 144
Gain on sale, net of tax 7,404 -- 7,404
----------- ----------- -----------
Net income/(loss)(3) $ (4,637) $ 109,461 $ 104,824
=========== =========== ===========
Basic earnings/(loss) per
share $ (0.04) $ 1.09 $ 1.05
Diluted earnings/(loss) per
share $ (0.04) $ 1.08 $ 1.04
(3) In connection with the impairment of goodwill and intangible
assets, our technology restructuring plan, and other severances
and related activities, net income for the twelve months ended
January 31, 2009 was decreased by staff costs, restructuring
charges, goodwill and intangible assets impairment, and other
operating expenses totaling $109,461, net of tax.
UTi Worldwide Inc.
Supplemental Financial Information - Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
Year ended January 31, 2008
Non
US GAAP Adjustment US GAAP
----------- ----------- -----------
Revenue $ 4,366,254 $ -- $ 4,366,254
----------- ----------- -----------
Purchased transportation costs 2,877,440 -- 2,877,440
Staff costs 800,891 -- 800,891
Depreciation and amortization 39,306 -- 39,306
Amortization of intangible
assets 9,436 -- 9,436
Restructuring charges 8,395 (8,395) --
Other operating expenses 480,308 -- 480,308
----------- ----------- -----------
Operating income 150,478 8,395 158,873
Interest expense, net (15,924) -- (15,924)
Other income, net 4,726 -- 4,726
----------- ----------- -----------
Pretax income 139,280 8,395 147,675
Provision for income taxes 38,161 2,200 40,361
----------- ----------- -----------
Income before minority
interests 101,119 6,195 107,314
Minority interests (2,905) -- (2,905)
----------- ----------- -----------
Income from continuing
operations 98,214 6,195 104,409
Discontinued operations:
Operating income, net of tax 472 -- 472
Gain on sale, net of tax -- -- --
----------- ----------- -----------
Net income(4) $ 98,686 $ 6,195 $ 104,881
=========== =========== ===========
Basic earnings per share $ 1.00 $ 0.06 $ 1.06
Diluted earnings per share $ 0.99 $ 0.06 $ 1.05
(4) In connection with our January 2008 restructure plan, net income
for the twelve months ended January 31, 2008 was decreased by
employee severance and benefits and other exit costs totaling
$6,195, net of tax.
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, 2009 (as reported) $ 894,073
Add: Dispositions impact(1) 17,515
Add: Currency impact(2) 108,974
Three months ended January 31, 2009 (as adjusted) $1,020,562
==========
Three months ended January 31, 2008 $1,202,175 (15)%
========== =======
NET REVENUES:
Three months ended January 31, 2009 (as reported) $ 332,694
Add: Dispositions impact(3) 16,128
Add: Currency impact(2) 48,260
Three months ended January 31, 2009 (as adjusted) $ 397,082
==========
Three months ended January 31, 2008 $ 400,791 (1)%
========== =======
(1) Relates to gross revenues in the corresponding prior period for
businesses disposed.
(2) Represents the fluctuations in foreign currency exchange rates
when balances are translated into U.S. dollars.
(3) Relates to net revenues in the corresponding prior period for
businesses disposed.
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:
Year ended January 31, 2009 (as reported) $4,543,717
Less: Acquisitions impact(4) (79,704)
Add: Dispositions impact(5) 36,384
Add: Currency impact(6) 10,655
----------
Year ended January 31, 2009 (as adjusted) $4,511,052
==========
Year ended January 31, 2008 $4,366,254 3%
========== =======
NET REVENUES:
Year ended January 31, 2009 (as reported) $1,546,340
Less: Acquisitions impact(7) (33,970)
Add: Dispositions impact(8) 31,303
Add: Currency impact(6) 29,383
----------
Year ended January 31, 2009 (as adjusted) $1,573,056
==========
Year ended January 31, 2008 $1,488,814 6%
========== -------
(4) Relates to gross revenues in the current period for businesses
acquired during the corresponding prior period.
(5) Relates to gross revenues in the corresponding prior period for
businesses disposed.
(6) Represents the fluctuations in foreign currency exchange rates
when balances are translated into U.S. dollars.
(7) Relates to net revenues in the current period for businesses
acquired during the corresponding prior period.
(8) Relates to net revenues in the corresponding prior period for
businesses disposed.