-- Annual Report on Form 10-K Filed with the Company's Consolidated Financial
Statements for Fiscal Years 2014, 2013 and 2012 – No Going Concern Qualification --
LONG BEACH, Calif., March 31, 2014 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2014 fourth quarter ended January 31, 2014. In addition, UTi filed its Annual Report on Form 10-K this morning, which includes the company's audited financial statements for the fiscal year ended January 31, 2014. The company's audited financial statements were issued with no going concern qualification for all periods presented.
Fiscal Fourth Quarter 2014 vs. 2013 Results:
- Revenues were $1,076.4 million, a decrease of 2.1 percent from $1,099.3 million.
- Net revenues (revenues minus purchased transportation costs) were $370.0 million, a decrease of 0.3 percent from $371.1 million.
- On an organic basis, revenues increased 1.7 percent and net revenues increased 4.5 percent versus the comparable prior year period.
- Net loss attributable to UTi Worldwide Inc. was $50.7 million, or $0.48 per diluted share, compared to a net loss of $142.8 million, or $1.38 per diluted share.
- The GAAP net loss in the fiscal 2014 fourth quarter includes after-tax severance and other costs of $7.3 million, or $0.07 per diluted share. UTi also recorded an after-tax write-off of $4.5 million, or $0.04 per diluted share, in bad debt related to customer bankruptcies. In addition, despite incurring a net loss, the company recorded additional tax expense exceeding its normalized tax rate by $22.9 million, or $0.22 per diluted share.
- Excluding the after-tax severance and other costs, bad debt write-off and the additional tax expense described above, non-GAAP net loss attributable to UTi Worldwide Inc. was $16.1 million, or $0.15 per diluted share.
- Earnings before interest expense, income taxes, depreciation and amortization (EBITDA), as adjusted for the items above and stock compensation expense, totaled $14.1 million compared to $17.1 million.
- All references to adjusted items and organic items in this release refer to non-GAAP results. A reconciliation of GAAP to these non-GAAP results is provided in the supplemental financial information attached to this release.
Eric W. Kirchner, chief executive officer, said, "During the last several weeks, the company has completed a number of key milestones. First, we executed a $725 million refinancing, which strengthened the company's balance sheet. Second, we filed our fiscal 2014 Annual Report on Form 10-K this morning, which includes the company's audited financial statements for the three fiscal years ended January 31, 2014. The company's audited financial statements were issued with no going concern qualification for all periods presented. Finally, we launched in early March our 1View freight forwarding operating system in South Africa and China, two of our largest markets. This brings to 32 the total number of countries on the system, representing approximately 72 percent of freight forwarding transactions. The deployment in China and South Africa also allows us to pair origin and destination shipments in most of our major markets.
"As we add more countries on 1View, we enable the company to generate greater efficiencies from operations. We continue to target completion of the system deployment in the third quarter of fiscal 2015 and still expect $75-95 million in annualized gross pre-tax cost savings by the end of fiscal 2015, approximately $50 million of which were in place at the end of fiscal 2014. As the transformation nears an end, we expect to have the ability to deploy additional resources on growth opportunities."
Kirchner continued, "Results in the fiscal 2014 fourth quarter continued to reflect a lackluster global economy and difficult operating conditions. While we experienced increased activity in both business segments during the fourth quarter, pricing pressure continued to weigh on margins. Operating expenses were higher in the fourth quarter primarily because of increased amortization, severance expenses and temporary deployment costs related to the roll-out of the new systems. We were able to partially offset these higher costs through expense reduction measures."
Operating expenses less purchased transportation costs were $401.5 million in the fourth quarter of fiscal 2014. The company recorded $10.6 million on a pre-tax basis in severance and other costs in the fiscal 2014 fourth quarter. UTi also recorded $6.5 million in pre-tax bad debt expense related to customer bankruptcies. In the fiscal 2013 fourth quarter, the company reported goodwill and intangible asset impairment charges of $94.7 million as well as severance costs of $5.1 million.
Excluding these items, adjusted operating expenses less purchased transportation costs were $384.4 million, compared to $378.9 million in the same period last year. On an organic basis, adjusted operating expenses less purchased transportation costs increased 5.7 percent, compared to the same period last year. The increase primarily reflects costs associated with transformation related activities.
The company recorded a tax provision of $11.0 million in the fiscal 2014 fourth quarter on a pretax loss of $38.2 million, due to valuation allowances and the mix of taxable income across the company's tax jurisdictions.
Investor Conference Call:
UTi management will host an investor conference call today, March 31, 2014, at 5:00 a.m. PDT (8:00 a.m. EDT) to review the company's financial results for the fiscal 2014 fourth quarter. Investment professionals are invited to participate in the live call by dialing 888-561-1721 (domestic) or 480-629-9723 (international) using conference ID 4673964. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com. The slides that will be referenced during the call will be available on the company's website at www.go2uti.com (click on "Investor Relations" and then click on "Webcasts & Presentations"). The slides will contain disclosures of certain non-GAAP financial measures, which will be identified in the slides. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures will be included in the slides. 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 8:00 a.m. PDT, today, through April 2, 2014, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4673964.
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 included information in this press release relating to organic revenue and organic net revenue changes, which are adjusted to exclude the impact of currency fluctuations between comparable periods. The company also has referred to operating expenses less purchased transportation costs, and to adjusted operating expenses less purchased transportation costs, which are operating expenses less purchased transportation costs that are further adjusted to exclude severance and other costs and a bad debt write-off. The company has also included information relating to organic adjusted operating expenses less purchased transportation costs, which are adjusted operating expenses less purchased transportation costs that are further adjusted to exclude the impact of currency fluctuations between comparable periods. The company has further referred to non-GAAP net loss attributable to UTi Worldwide Inc., which is adjusted to exclude severance and other costs, a bad debt write-off, and valuation allowances on deferred tax assets, as described above, and non-GAAP loss per diluted share. Finally, the company has referred to adjusted earnings before interest expense, income taxes, depreciation and amortization (EBITDA), which is adjusted to exclude stock-based compensation, as well as severance and other costs and the bad debt write-off referred to above. 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. In addition, the company's management believes that presenting adjusted EBITDA provides useful information to investors regarding underlying business trends and performance of the company's ongoing operations. This information is not intended to be considered in isolation or as a substitute for, or superior to, the relevant measures prepared and presented in accordance with U.S. GAAP. Further, adjusted EBITDA does not represent cash flow from operations as defined by GAAP, is not derived in accordance with GAAP, and should not be considered as an alternative to net income. For more information on these non-GAAP financial measures, please see the tables at the end of this press release.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release which address activities, events or developments that UTi expects or anticipates will or may occur in the future, including such things as substantially completing deployment during the third quarter of fiscal 2015; the fact that as the company adds more countries on 1View it enables the company to generate greater efficiencies from operations; the expected benefits of the refinancing, including strengthening UTi's balance sheet; expectations for $75-95 million in annualized gross pre-tax cost savings by the end of fiscal 2015, including approximately $50 million of which were in place at the end of fiscal 2014; the ability to deploy additional resources on growth opportunities as the transformation nears an end; and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by UTi in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue" and other similar expressions or the negative of these terms or other comparable terms. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks in UTi's filings with the SEC, including those listed in Item 1A "Risk Factors" in its annual report on Form 10-K filed with the SEC today, and the following: UTi's ability to maintain sufficient liquidity and capital resources to fund its business; UTi's ability to complete its business transformation initiatives in the timeframe and for the costs anticipated or at all and achieve the expected benefits; UTi's ability to generate sufficient cash to service its debts and other obligations; delays or inability to pay by UTi's customers; dilution in connection with the private placement of convertible preference shares and dilution in connection with the convertible notes; volatility with respect to global trade; global economic, political and market conditions and unrest, including those in Africa, Asia Pacific and EMENA (which is comprised of Europe, Middle East and North Africa); risks associated with UTi's ongoing business transformation initiative, which include unanticipated difficulties, delays, additional costs and expenses as well as potential billing delays; volatile fuel costs; transportation capacity, pricing dynamics and the ability of UTi to secure space on third party aircraft, ocean vessels and other modes of transportation; changes in interest and foreign exchange rates, particularly with respect to the South African rand; material interruptions in transportation services; risks of international operations; risks associated with, and the potential for penalties, fines, costs and expenses the company may incur as a result of investigations by the governments of Brazil and Singapore into the international air freight and air cargo transportation industry; risks of adverse legal judgments or other liabilities not limited by contract or covered by insurance; UTi's ability to retain clients while facing increased competition; the financial condition of UTi's clients; disruptions caused by epidemics, natural disasters, conflicts, strikes, wars and terrorism; the impact of changes in UTi's effective tax rates; the other risks and uncertainties described herein and in UTi's other filings with the SEC; and other factors outside UTi's control. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on UTi or its business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof and UTi does not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except as required by law.
(Tables Follow)
| UTi Worldwide Inc. | ||||
| Condensed Consolidated Statements of Operations | ||||
| (in thousands, except share and per share amounts) | ||||
| Three months ended | Fiscal years ended | |||
| January 31, | January 31, | |||
| 2014 | 2013 | 2014 | 2013 | |
| (Unaudited) | (Unaudited) | |||
| Revenues: | ||||
| Airfreight forwarding | $ 324,066 | $ 347,449 | $ 1,345,462 | $ 1,443,740 |
| Ocean freight forwarding | 296,132 | 306,765 | 1,253,219 | 1,267,134 |
| Customs brokerage | 46,425 | 29,294 | 146,499 | 117,629 |
| Contract logistics | 184,021 | 176,915 | 741,779 | 785,733 |
| Distribution | 137,864 | 140,625 | 588,121 | 588,794 |
| Other | 87,895 | 98,207 | 365,800 | 404,491 |
| Total revenues | 1,076,403 | 1,099,255 | 4,440,880 | 4,607,521 |
| Other operating expenses: | ||||
| Purchased transportation costs: | ||||
| Airfreight forwarding | 260,067 | 274,257 | 1,048,627 | 1,128,043 |
| Ocean freight forwarding | 244,902 | 257,246 | 1,046,613 | 1,064,081 |
| Customs brokerage | 9,753 | 1,135 | 22,444 | 5,289 |
| Contract logistics | 44,048 | 42,780 | 179,320 | 200,578 |
| Distribution | 95,356 | 93,807 | 409,664 | 397,872 |
| Other | 52,248 | 58,937 | 209,307 | 225,125 |
| Staff costs | 220,143 | 218,930 | 885,710 | 894,503 |
| Depreciation | 14,133 | 13,938 | 53,899 | 48,917 |
| Amortization of intangible assets | 7,226 | 2,886 | 18,502 | 12,262 |
| Severance and other | 10,585 | 5,118 | 29,618 | 18,039 |
| Goodwill impairment | - | 93,008 | - | 93,008 |
| Intangible assets impairment | - | 1,643 | - | 1,643 |
| Other operating expenses | 149,408 | 143,115 | 547,344 | 546,456 |
| Total other operating expenses | 1,107,869 | 1,206,800 | 4,451,048 | 4,635,816 |
| Operating loss | (31,466) | (107,545) | (10,168) | (28,295) |
| Interest expense, net | (5,322) | (5,888) | (16,985) | (13,415) |
| Other (expense)/income, net | (1,437) | 69 | (2,693) | (439) |
| Pretax loss | (38,225) | (113,364) | (29,846) | (42,149) |
| Provision for income taxes | 11,022 | 27,992 | 41,076 | 51,891 |
| Net loss | (49,247) | (141,356) | (70,922) | (94,040) |
| Net income attributable to non-controlling interests | 1,474 | 1,467 | 5,736 | 6,466 |
| Net loss attributable to UTi Worldwide Inc. | $ (50,721) | $ (142,823) | $ (76,658) | $ (100,506) |
| Basic loss per common share attributable to | ||||
| UTi Worldwide Inc. common shareholders | $ (0.48) | $ (1.38) | $ (0.73) | $ (0.97) |
| Diluted loss per common share attributable to | ||||
| UTi Worldwide Inc. common shareholders | $ (0.48) | $ (1.38) | $ (0.73) | $ (0.97) |
| Number of weighted average common shares outstanding used for per share calculations | ||||
| Basic shares | 104,779,228 | 103,778,688 | 104,527,949 | 103,544,171 |
| Diluted shares | 104,779,228 | 103,778,688 | 104,527,949 | 103,544,171 |
| UTi Worldwide Inc. | ||
| Condensed Consolidated Balance Sheets | ||
| (in thousands) | ||
| January 31, 2014 | January 31, 2013 | |
| (Unaudited) | ||
| ASSETS | ||
| Cash and cash equivalents | $ 204,384 | $ 237,276 |
| Trade receivables, net | 977,885 | 898,809 |
| Deferred income taxes | 8,889 | 19,595 |
| Other current assets | 154,465 | 156,385 |
| Total current assets | 1,345,623 | 1,312,065 |
| Property, plant and equipment, net | 222,036 | 242,898 |
| Goodwill and other intangible assets, net | 464,867 | 457,635 |
| Investments | 1,075 | 969 |
| Deferred income taxes | 11,693 | 25,802 |
| Other non-current assets | 36,768 | 34,688 |
| Total assets | $ 2,082,062 | $ 2,074,057 |
| LIABILITIES & EQUITY | ||
| Bank lines of credit | $ 260,700 | $ 79,213 |
| Short-term borrowings | 7,551 | 1,129 |
| Current portion of long-term borrowings | 3,488 | 5,663 |
| Current portion of capital lease obligations | 12,374 | 11,377 |
| Trade payables and other accrued liabilities | 754,965 | 786,444 |
| Income taxes payable | 17,877 | 8,470 |
| Deferred income taxes | 3,236 | 2,775 |
| Total current liabilities | 1,060,191 | 895,071 |
| Long-term borrowings, excluding current portion | 205,862 | 204,434 |
| Capital lease obligations, excluding current portion | 60,784 | 73,538 |
| Deferred income taxes | 14,390 | 29,654 |
| Other non-current liabilities | 38,098 | 47,178 |
| Commitments and contingencies | ||
| UTi Worldwide Inc. shareholders' equity: | ||
| Common stock | 517,762 | 505,237 |
| Retained earnings | 313,974 | 396,946 |
| Accumulated other comprehensive loss | (143,317) | (92,348) |
| Total UTi Worldwide Inc. shareholders' equity | 688,419 | 809,835 |
| Non-controlling interests | 14,318 | 14,347 |
| Total equity | 702,737 | 824,182 |
| Total liabilities and equity | $ 2,082,062 | $ 2,074,057 |
| UTi Worldwide Inc. | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
| Fiscal years ended January 31, | ||
| 2014 | 2013 | |
| (Unaudited) | ||
| OPERATING ACTIVITIES: | ||
| Net loss | $ (70,922) | $ (94,040) |
| Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||
| Share-based compensation costs | 13,869 | 14,556 |
| Depreciation | 53,899 | 48,917 |
| Amortization of intangible assets | 18,502 | 12,262 |
| Amortization of debt issuance costs | 702 | 1,556 |
| Goodwill and intangible assets impairment | - | 94,651 |
| Deferred income taxes | 5,490 | 16,957 |
| Uncertain tax positions | (1,532) | 469 |
| Excess tax benefits from share-based compensation | - | (19) |
| Gain on disposal of property, plant and equipment | (367) | (682) |
| Provision for doubtful accounts | 16,559 | 4,507 |
| Net proceeds from the sales of trade receivables | 3,405 | - |
| Other | 3,388 | 1,771 |
| Net changes in operating assets and liabilities | (141,076) | (60,131) |
| Net cash (used in)/provided by operating activities | (98,083) | 40,774 |
| INVESTING ACTIVITIES: | ||
| Purchases of property, plant and equipment, excluding software | (47,140) | (49,728) |
| Proceeds from disposals of property, plant and equipment | 3,832 | 3,475 |
| Purchases of software and other intangible assets | (34,013) | (36,692) |
| Net (increase)/decrease in other non-current assets | (4,612) | 847 |
| Acquisitions and related payments | - | (888) |
| Other | - | 134 |
| Net cash used in investing activities | (81,933) | (82,852) |
| FINANCING ACTIVITIES: | ||
| Net borrowings under bank lines of credit | 188,732 | 14,491 |
| Net increase in short-term borrowings | 6,701 | 174 |
| Proceeds from issuances of long-term borrowings | 4,575 | 200,869 |
| Repayments of long-term borrowings | (5,342) | (205,000) |
| Debt issuance costs | - | (1,745) |
| Repayments of capital lease obligations | (12,682) | (17,384) |
| Acquisitions of non-controlling interests | - | (1,920) |
| Distributions to non-controlling interests and other | (3,038) | (2,837) |
| Ordinary shares settled under share-based compensation plans | (2,500) | (3,130) |
| Proceeds from issuance of ordinary shares | 4,241 | 2,502 |
| Excess tax benefits from share-based compensation | - | 19 |
| Dividends paid | (6,314) | (6,223) |
| Net cash provided by/(used in) financing activities | 174,373 | (20,184) |
| Effect of foreign exchange rate changes on cash and cash equivalents | (27,249) | (22,223) |
| Net decrease in cash and cash equivalents | (32,892) | (84,485) |
| Cash and cash equivalents at beginning of period | 237,276 | 321,761 |
| Cash and cash equivalents at end of period | $ 204,384 | $ 237,276 |
| UTi Worldwide Inc. | ||||
| Segment Reporting | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Three months ended January 31, 2014 | ||||
|
Freight Forwarding |
Contract Logistics and Distribution |
Corporate |
Total |
|
| Revenues | $ 730,010 | $ 346,393 | $ - | $ 1,076,403 |
| Purchased transportation costs | 558,077 | 148,297 | - | 706,374 |
| Staff costs | 109,418 | 102,187 | 8,538 | 220,143 |
| Depreciation | 4,497 | 8,155 | 1,481 | 14,133 |
| Amortization of intangible assets | 6,043 | 1,061 | 122 | 7,226 |
| Severance and other | 5,382 | 3,931 | 1,272 | 10,585 |
| Other operating expenses | 57,491 | 78,828 | 13,089 | 149,408 |
| Total operating expenses | 740,908 | 342,459 | 24,502 | 1,107,869 |
| Operating (loss)/income | $ (10,898) | $ 3,934 | $ (24,502) | (31,466) |
| Interest expense, net | (5,322) | |||
| Other expense, net | (1,437) | |||
| Pretax loss | (38,225) | |||
| Provision for income taxes | 11,022 | |||
| Net loss | (49,247) | |||
| Net income attributable to non-controlling interests | 1,474 | |||
| Net loss attributable to UTi Worldwide Inc. | $ (50,721) | |||
| UTi Worldwide Inc. | ||||
| Segment Reporting | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Three months ended January 31, 2013 | ||||
|
Freight Forwarding |
Contract Logistics and Distribution |
Corporate |
Total |
|
| Revenues | $ 749,162 | $ 350,093 | $ - | $ 1,099,255 |
| Purchased transportation costs | 582,087 | 146,075 | - | 728,162 |
| Staff costs | 103,630 | 106,601 | 8,699 | 218,930 |
| Depreciation | 4,261 | 8,554 | 1,123 | 13,938 |
| Amortization of intangible assets | 1,039 | 1,307 | 540 | 2,886 |
| Severance and other | 3,020 | 2,024 | 74 | 5,118 |
| Goodwill impairment | - | 93,008 | - | 93,008 |
| Intangible assets impairment | - | 1,643 | - | 1,643 |
| Other operating expenses | 52,926 | 83,788 | 6,401 | 143,115 |
| Total operating expenses | 746,963 | 443,000 | 16,837 | 1,206,800 |
| Operating income/(loss) | $ 2,199 | $ (92,907) | $ (16,837) | (107,545) |
| Interest expense, net | (5,888) | |||
| Other income, net | 69 | |||
| Pretax loss | (113,364) | |||
| Provision for income taxes | 27,992 | |||
| Net loss | (141,356) | |||
| Net income attributable to non-controlling interests | 1,467 | |||
| Net loss attributable to UTi Worldwide Inc. | $ (142,823) | |||
| UTi Worldwide Inc. | ||||
| Segment Reporting | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Fiscal year ended January 31, 2014 | ||||
|
Freight Forwarding |
Contract Logistics and Distribution |
Corporate |
Total |
|
| Revenues | $ 2,996,775 | $ 1,444,105 | $ - | $ 4,440,880 |
| Purchased transportation costs | 2,290,077 | 625,898 | - | 2,915,975 |
| Staff costs | 432,274 | 417,186 | 36,250 | 885,710 |
| Depreciation | 16,988 | 31,511 | 5,400 | 53,899 |
| Amortization of intangible assets | 12,688 | 4,709 | 1,105 | 18,502 |
| Severance and other | 13,894 | 12,244 | 3,480 | 29,618 |
| Other operating expenses | 194,460 | 316,033 | 36,851 | 547,344 |
| Total operating expenses | 2,960,381 | 1,407,581 | 83,086 | 4,451,048 |
| Operating income/(loss) | $ 36,394 | $ 36,524 | $ (83,086) | (10,168) |
| Interest expense, net | (16,985) | |||
| Other expense, net | (2,693) | |||
| Pretax loss | (29,846) | |||
| Provision for income taxes | 41,076 | |||
| Net loss | (70,922) | |||
| Net income attributable to non-controlling interests | 5,736 | |||
| Net loss attributable to UTi Worldwide Inc. | $ (76,658) | |||
| UTi Worldwide Inc. | ||||
| Segment Reporting | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| Fiscal year ended January 31, 2013 | ||||
|
Freight Forwarding |
Contract Logistics and Distribution |
Corporate |
Total |
|
| Revenues | $ 3,094,408 | $ 1,513,113 | $ - | $ 4,607,521 |
| Purchased transportation costs | 2,384,697 | 636,291 | - | 3,020,988 |
| Staff costs | 420,140 | 440,459 | 33,904 | 894,503 |
| Depreciation | 16,369 | 29,417 | 3,131 | 48,917 |
| Amortization of intangible assets | 4,116 | 5,986 | 2,160 | 12,262 |
| Severance and other | 6,029 | 9,680 | 2,330 | 18,039 |
| Goodwill impairment | - | 93,008 | - | 93,008 |
| Intangible assets impairment | - | 1,643 | - | 1,643 |
| Other operating expenses | 190,253 | 336,144 | 20,059 | 546,456 |
| Total operating expenses | 3,021,604 | 1,552,628 | 61,584 | 4,635,816 |
| Operating income/(loss) | $ 72,804 | $ (39,515) | $ (61,584) | (28,295) |
| Interest expense, net | (13,415) | |||
| Other expense, net | (439) | |||
| Pretax loss | (42,149) | |||
| Provision for income taxes | 51,891 | |||
| Net loss | (94,040) | |||
| Net income attributable to non-controlling interests | 6,466 | |||
| Net loss attributable to UTi Worldwide Inc. | $ (100,506) | |||
| UTi Worldwide Inc. | ||||||||
| Geographic Reporting | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Three months ended January 31, 2014 | ||||||||
|
Freight Forwarding Revenues |
Contract Logistics and Distribution Revenues |
Freight Forwarding Net Revenues |
Contract Logistics and Distribution Net Revenues |
Operating (Loss)/Income |
Severance and Other |
|||
| EMENA | $ 212,391 | $ 57,003 | $ 63,246 | $ 33,252 | $ (6,530) | $ 5,569 | ||
| Americas | 145,151 | 190,742 | 37,750 | 88,440 | (20,408) | 861 | ||
| Asia Pacific | 255,148 | 18,623 | 48,456 | 11,929 | 7,359 | 1,816 | ||
| Africa | 117,320 | 80,025 | 22,481 | 64,475 | 12,615 | 1,067 | ||
| Corporate | - | - | - | - | (24,502) | 1,272 | ||
| Total | $ 730,010 | $ 346,393 | $ 171,933 | $ 198,096 | $ (31,466) | $ 10,585 | ||
| Three months ended January 31, 2013 | ||||||||
|
Freight Forwarding Revenues |
Contract Logistics and Distribution Revenues |
Freight Forwarding Net Revenues |
Contract Logistics and Distribution Net Revenues |
Operating (Loss)/Income |
Severance and Other |
Intangible Assets Impairment |
Goodwill Impairment |
|
| EMENA | $ 213,870 | $ 53,434 | $ 53,466 | $ 31,972 | $ (16,192) | $ 3,670 | $ - | $ 4,168 |
| Americas | 179,332 | 185,160 | 43,338 | 84,623 | (93,162) | 993 | - | 88,840 |
| Asia Pacific | 240,546 | 17,563 | 46,006 | 11,467 | 8,473 | 31 | - | - |
| Africa | 115,414 | 93,936 | 24,265 | 75,956 | 10,173 | 350 | 1,643 | - |
| Corporate | - | - | - | - | (16,837) | 74 | - | - |
| Total | $ 749,162 | $ 350,093 | $ 167,075 | $ 204,018 | $ (107,545) | $ 5,118 | $ 1,643 | $ 93,008 |
| UTi Worldwide Inc. | ||||||||
| Geographic Reporting | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
| Fiscal year ended January 31, 2014 | ||||||||
|
Freight Forwarding Revenues |
Contract Logistics and Distribution Revenues |
Freight Forwarding Net Revenues |
Contract Logistics and Distribution Net Revenues |
Operating (Loss)/Income |
Severance and Other |
|||
| EMENA | $ 861,331 | $ 224,901 | $ 237,967 | $ 131,893 | $ (16,618) | $ 12,343 | ||
| Americas | 664,803 | 790,876 | 178,154 | 353,108 | (11,571) | 4,381 | ||
| Asia Pacific | 1,000,697 | 80,036 | 194,984 | 53,201 | 46,375 | 3,851 | ||
| Africa | 469,944 | 348,292 | 95,593 | 280,005 | 54,732 | 5,563 | ||
| Corporate | - | - | - | - | (83,086) | 3,480 | ||
| Total | $ 2,996,775 | $ 1,444,105 | $ 706,698 | $ 818,207 | $ (10,168) | $ 29,618 | ||
| Fiscal year ended January 31, 2013 | ||||||||
|
Freight Forwarding Revenues |
Contract Logistics and Distribution Revenues |
Freight Forwarding Net Revenues |
Contract Logistics and Distribution Net Revenues |
Operating (Loss)/Income |
Severance and Other |
Intangible Assets Impairment |
Goodwill Impairment |
|
| EMENA | $ 909,436 | $ 231,937 | $ 229,951 | $ 135,467 | $ (15,625) | $ 6,882 | $ - | $ 4,168 |
| Americas | 750,324 | 800,522 | 184,608 | 359,102 | (66,458) | 3,000 | - | 88,840 |
| Asia Pacific | 970,084 | 71,999 | 189,092 | 47,185 | 39,831 | 5,344 | - | - |
| Africa | 464,564 | 408,655 | 106,060 | 335,068 | 75,541 | 483 | 1,643 | - |
| Corporate | - | - | - | - | (61,584) | 2,330 | - | - |
| Total | $ 3,094,408 | $ 1,513,113 | $ 709,711 | $ 876,822 | $ (28,295) | $ 18,039 | $ 1,643 | $ 93,008 |
| UTi Worldwide Inc. | ||
| Supplemental Financial Information – Reconciliation to US GAAP | ||
| (in thousands, except per share amounts) | ||
| (Unaudited) | ||
|
Three months ended January 31, 2014 |
Three months ended January 31, 2013 |
|
| GAAP Revenues | $ 1,076,403 | $ 1,099,255 |
| Less: Purchased transportation costs | (706,374) | (728,162) |
| Net revenues | $ 370,029 | $ 371,093 |
| GAAP Operating expenses | $ 1,107,869 | $ 1,206,800 |
| Less: Purchased transportation costs | (706,374) | (728,162) |
| Operating expenses less purchased transportation costs | 401,495 | 478,638 |
| Less: Adjustment for severance and other(1)(2) | (10,585) | (5,118) |
| Less: Adjustment for bad debt related to customer bankruptcies(3) | (6,500) | - |
| Less: Adjustment for goodwill impairment(4) | - | (93,008) |
| Less: Adjustment for intangible assets impairment(5) | - | (1,643) |
| Non-GAAP Operating expenses | $ 384,410 | $ 378,869 |
| GAAP Operating loss | $ (31,466) | $ (107,545) |
| Add: Adjustment for severance and other(1)(2) | 10,585 | 5,118 |
| Add: Adjustment for bad debt related to customer bankruptcies(3) | 6,500 | - |
| Add: Adjustment for goodwill impairment(4) | - | 93,008 |
| Add: Adjustment for intangible assets impairment(5) | - | 1,643 |
| Non-GAAP Operating loss | $ (14,381) | $ (7,776) |
| Non-GAAP operating loss as a percentage of net revenues | -3.9% | -2.1% |
| GAAP Pretax loss | $ (38,225) | $ (113,364) |
| Add: Adjustment for severance and other(1)(2) | 10,585 | 5,118 |
| Add: Adjustment for bad debt related to customer bankruptcies(3) | 6,500 | - |
| Add: Adjustment for goodwill impairment(4) | - | 93,008 |
| Add: Adjustment for intangible assets impairment(5) | - | 1,643 |
| Non-GAAP Pretax loss | $ (21,140) | $ (13,595) |
| GAAP Provision for income taxes | $ 11,022 | $ 27,992 |
| Add: Adjustment for severance and other(6) | 3,281 | 1,587 |
| Add: Adjustment for bad debt related to customer bankruptcies(6) | 2,015 | - |
| Add: Adjustment for goodwill impairment(6) | - | 2,717 |
| Add: Adjustment for intangible assets impairment(6) | - | 460 |
| Less: Adjustment for deferred tax asset valuation allowance and other(6) | (22,871) | (34,458) |
| Non-GAAP Provision for income taxes | $ (6,553) | $ (1,702) |
| GAAP Net loss attributable to UTi Worldwide Inc. | $ (50,721) | $ (142,823) |
| Adjustment for: | ||
| Severance and other(1)(2) | 10,585 | 5,118 |
| Bad debt related to customer bankruptcies(3) | 6,500 | - |
| Goodwill impairment(4) | - | 93,008 |
| Intangible assets impairment(5) | - | 1,643 |
| Income tax effect severance and other(6) | (3,281) | (1,587) |
| Income tax effect bad debt related to customer bankruptcies(6) | (2,015) | - |
| Income tax effect goodwill impairment(6) | - | (2,717) |
| Income tax effect intangible asset impairment(6) | - | (460) |
| Adjustment for deferred tax asset valuation allowance and other(6) | 22,871 | 34,458 |
| Non-GAAP Net loss attributable to UTi Worldwide Inc. | $ (16,061) | $ (13,360) |
| GAAP Diluted loss per common share | $ (0.48) | $ (1.38) |
| Adjustment for: | ||
| Severance and other(1)(2) | 0.10 | 0.05 |
| Bad debt related to customer bankruptcies(3) | 0.06 | - |
| Goodwill impairment(4) | - | 0.90 |
| Intangible assets impairment(5) | - | 0.02 |
| Income tax effect severance and other(6) | (0.03) | (0.02) |
| Income tax effect bad debt related to customer bankruptcies(6) | (0.02) | - |
| Income tax effect goodwill impairment(6) | - | (0.03) |
| Income tax effect intangible asset impairment(6) | - | - |
| Adjustment for deferred tax asset valuation allowance and other(6) | 0.22 | 0.33 |
| Non-GAAP Diluted loss per common share | $ (0.15) | $ (0.13) |
| (1) During the three months ended January 31, 2014 the company recorded pre-tax severance of $8,402 primarily related to transformation activities, accrued pre-tax expenses of $1,519 for certain legal matters, including the final settlement relating to a 2006 warehouse fire, and facility exit costs and other of $664. | ||
| (2) During the three months ended January 31, 2013, the company recorded pre-tax severance of $5,118 primarily related to transformation activities. | ||
| (3) During the three months ended January 31, 2014, the company recorded a pre-tax bad debt write off of $6,500 related to customer bankruptcies. | ||
| (4) During the three months ended January 31, 2013, the company recorded a pre-tax goodwill impairment charge of $93,008, as a result of continued economic weakness in certain of the regions in which we operate. | ||
| (5) During the three months ended January 31, 2013, the company recorded a pre-tax intangible asset impairment charge of $1,643, which relates to the recoverability of value assigned to certain client relationships within one of the company's pharmaceutical distribution business in South Africa. | ||
| (6) The provision for income tax adjustment related to the severance and other costs and intangible asset impairments and were calculated based on the prevailing tax rate in each jurisdiction. In addition, the adjustment for deferred tax asset valuation allowances includes changes in deferred tax assets associated with amalgamations. | ||
| UTi Worldwide Inc. | ||
| Supplemental Financial Information – Reconciliation to US GAAP | ||
| (in thousands, except per share amounts) | ||
| (Unaudited) | ||
|
Fiscal year ended January 31, 2014 |
Fiscal year ended January 31, 2013 |
|
| GAAP Revenues | $ 4,440,880 | $ 4,607,521 |
| Less: Purchased transportation costs | (2,915,975) | (3,020,988) |
| Net revenues | $ 1,524,905 | $ 1,586,533 |
| GAAP Operating expenses | $ 4,451,048 | $ 4,635,816 |
| Less: Purchased transportation costs | (2,915,975) | (3,020,988) |
| Operating expenses less purchased transportation costs | 1,535,073 | 1,614,828 |
| Less: Adjustment for severance and other(7)(8) | (29,618) | (18,039) |
| Less: Adjustment for bad debt related to customer bankruptcies(9) | (6,500) | - |
| Less: Adjustment for goodwill impairment(10) | - | (93,008) |
| Less: Adjustment for intangible assets impairment(11) | - | (1,643) |
| Non-GAAP Operating expenses | $ 1,498,955 | $ 1,502,138 |
| GAAP Operating loss | $ (10,168) | $ (28,295) |
| Add: Adjustment for severance and other(7)(8) | 29,618 | 18,039 |
| Add: Adjustment for bad debt related to customer bankruptcies(9) | 6,500 | - |
| Add: Adjustment for goodwill impairment(10) | - | 93,008 |
| Add: Adjustment for intangible assets impairment(11) | - | 1,643 |
| Non-GAAP Operating income | $ 25,950 | $ 84,395 |
| Non-GAAP operating income as a percentage of net revenues | 1.7% | 5.3% |
| GAAP Pretax loss | $ (29,846) | $ (42,149) |
| Add: Adjustment for severance and other(7)(8) | 29,618 | 18,039 |
| Add: Adjustment for bad debt related to customer bankruptcies(9) | 6,500 | - |
| Add: Adjustment for goodwill impairment(10) | - | 93,008 |
| Add: Adjustment for intangible assets impairment(11) | - | 1,643 |
| Non-GAAP Pretax income | $ 6,272 | $ 70,541 |
| GAAP Provision for income taxes | $ 41,076 | $ 51,891 |
| Add: Adjustment for severance and other(12) | 9,182 | 5,538 |
| Add: Adjustment for bad debt related to customer bankruptcies(12) | 2,015 | - |
| Add: Adjustment for goodwill impairment(12) | - | 2,717 |
| Add: Adjustment for intangible assets impairment(12) | - | 460 |
| Less: Adjustment for deferred tax asset valuation allowance and other(12) | (50,329) | (37,068) |
| Non-GAAP Provision for income taxes | $ 1,944 | $ 23,538 |
| GAAP Net loss attributable to UTi Worldwide Inc. | $ (76,658) | $ (100,506) |
| Adjustment for: | ||
| Severance and other(7)(8) | 29,618 | 18,039 |
| Bad debt related to customer bankruptcies(9) | 6,500 | - |
| Goodwill impairment(10) | - | 93,008 |
| Intangible assets impairment(11) | - | 1,643 |
| Income tax effect severance and other(12) | (9,182) | (5,538) |
| Income tax effect bad debt related to customer bankruptcies(12) | (2,015) | - |
| Income tax effect goodwill impairment(12) | - | (2,717) |
| Income tax effect intangible asset impairment(12) | - | (460) |
| Adjustment for deferred tax asset valuation allowance and other(12) | 50,329 | 37,068 |
| Non-GAAP Net (loss)/income attributable to UTi Worldwide Inc. | $ (1,408) | $ 40,537 |
| GAAP Diluted loss per common share | $ (0.73) | $ (0.97) |
| Adjustment for: | ||
| Severance and other(7)(8) | 0.28 | 0.17 |
| Bad debt related to customer bankruptcies(9) | 0.06 | - |
| Goodwill impairment(10) | - | 0.89 |
| Intangible assets impairment(11) | - | 0.02 |
| Income tax effect severance and other(12) | (0.09) | (0.05) |
| Income tax effect bad debt related to customer bankruptcies(12) | (0.02) | - |
| Income tax effect goodwill impairment(12) | - | (0.03) |
| Income tax effect intangible asset impairment(12) | - | - |
| Adjustment for deferred tax asset valuation allowance and other(12) | 0.49 | 0.36 |
| Non-GAAP Diluted (loss)/earnings per common share | $ (0.01) | $ 0.39 |
| (7) During the fiscal year ended January 31, 2014 the company recorded pre-tax severance of $24,791 primarily related to transformation activities, accrued pre-tax expenses of $1,519 for certain legal matters, including the final settlement relating to a 2006 warehouse fire, and facility exit costs and other of $3,308. | ||
| (8) During the fiscal year ended January 31, 2013, the company recorded pre-tax severance of $12,826 primarily related to transformation activities and accrued pre-tax expenses of $5,213 relating to a legal judgment. | ||
| (9) During the fiscal year ended January 31, 2014, the company recorded a pre-tax bad debt write off of $6,500 related to customer bankruptcies. | ||
| (10) During the fiscal year ended January 31, 2013, the company recorded a pre-tax goodwill impairment charge of $93,008, as a result of continued economic weakness in certain of the regions in which we operate. | ||
| (11) During the fiscal year ended January 31, 2013, the company recorded a pre-tax intangible asset impairment charge of $1,643, which relates to the recoverability of value assigned to certain client relationships within one of the company's pharmaceutical distribution business in South Africa. | ||
| (12) The provision for income tax adjustment related to the severance and other costs and intangible asset impairments and were calculated based on the prevailing tax rate in each jurisdiction. In addition, the adjustment for deferred tax asset valuation allowances includes changes in deferred tax assets associated with amalgamations. | ||
| UTi Worldwide Inc. | |||||
| Organic Growth Reconciliation | |||||
| (Unaudited) | |||||
| Set forth below is a reconciliation of the company's organic growth rates and the growth rates based on the company's GAAP reported results in the company's revenues, net revenues and operating expenses less purchased transportation costs for the three months and fiscal year ended January 31, 2014. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation. | |||||
| Three months ended January 31, 2014 | |||||
|
Total Net Change |
+/(-) Currency Impact |
Organic Growth |
+/(-) Non-GAAP Items(13) |
Adjusted Organic Growth |
|
| Revenues | (2)% | 4% | 2% | -% | 2% |
| Net revenues | -% | 5% | 5% | -% | 5% |
| Operating expenses less purchased transportation costs | (16)% | 4% | (12)% | 18% | 6% |
| Fiscal year ended January 31, 2014 | |||||
|
Total Net Change |
+/(-) Currency Impact |
Organic Growth |
+/(-) Non-GAAP Items(14) |
Adjusted Organic Growth |
|
| Revenues | (4)% | 3% | (1)% | -% | (1)% |
| Net revenues | (4)% | 3% | (1)% | -% | (1)% |
| Operating expenses less purchased transportation costs | (5)% | 4% | (1)% | 5% | 4% |
| (13) During the three months ended January 31, 2014 the company recorded pre-tax severance of $8,402 primarily related to transformation activities, accrued pre-tax expenses of $1,519 for a legal judgment relating to a 2006 warehouse fire, facility exit costs and other of $664 and pre-tax bad debt write off of $6,500 related to customer bankruptcies. | |||||
| (14) During the fiscal year ended January 31, 2014 the company recorded pre-tax severance of $24,791 primarily related to transformation activities, accrued pre-tax expenses of $1,519 for a legal judgment relating to a 2006 warehouse fire, facility exit costs and other of $3,308, and pre-tax bad debt write off of $6,500 related to customer bankruptcies. | |||||
| UTi Worldwide Inc. | ||
| Adjusted EBITDA Calculation | ||
| (in thousands) | ||
| (Unaudited) | ||
| Three months ended | ||
| January 31, | ||
| 2014 | 2013 | |
| EBITDA: | ||
| Pretax loss | (38,225) | (113,364) |
| Interest expense | 9,819 | 11,024 |
| Depreciation | 14,133 | 13,938 |
| Amortization of intangible assets | 7,226 | 2,886 |
| Total | (7,047) | (85,516) |
| Adjusting items | ||
| Stock compensation | 4,087 | 2,867 |
| Goodwill impairment | - | 93,008 |
| Intangible assets impairment | - | 1,643 |
| Severance and other(15) | 10,585 | 5,118 |
| Bad debt related to customer bankruptcies(16) | 6,500 | - |
| Adjusted EBITDA | 14,125 | 17,120 |
| (15) During the three months ended January 31, 2014 the company recorded pre-tax severance of $8,402 primarily related to transformation activities, accrued pre-tax expenses of $1,519 for a legal judgment relating to a 2006 warehouse fire, and facility exit costs and other of $664. | ||
| (16) During the three months ended January 31, 2014, the company recorded a pre-tax bad debt write off of $6,500 related to customer bankruptcies. | ||