RANCHO DOMINGUEZ, Calif., June 9, 2005 (PRIMEZONE) -- UTi Worldwide Inc. (NASDAQ:UTIW) today reported financial results for the fiscal 2006 first quarter ended April 30, 2005, which reflected year-over-year quarterly increases in gross and net revenues, operating income, net income and earnings per share.
For the first quarter of fiscal 2006, gross revenues totaled $630.2 million, up 29 percent over $489.6 million in the corresponding prior-year period. Net revenues for the fiscal 2006 first quarter rose 30 percent to $221.2 million from $170.0 million in the comparable year-earlier period. The increases in gross and net revenues were spread across all regions and service lines and reflect continued organic growth as well as the acquisitions of International Healthcare Distributors (Pty) Ltd. (IHD) in South Africa and Unigistix Inc. (Unigistix) in Canada which occurred in June and October 2004, respectively, and the impact of favorable exchange rates as compared to the U.S. dollar.
Operating income for the first quarter of fiscal 2006 increased 44 percent to $26.9 million from $18.7 million in the prior-year comparable period. As a percentage of net revenues, operating income improved to 12.2 percent in the fiscal 2006 first quarter, compared with 11.0 percent in the prior-year first quarter.
Net income for the fiscal 2006 first quarter grew 39 percent to $17.8 million, or $0.55 per diluted share, compared with $12.8 million, or $0.40 per diluted share, for the prior-year first quarter.
"The worldwide commitment of our team to UTi's NextLeap initiatives has fueled our ability to deliver growth in gross and net revenues, operating income and net income," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "In addition to the achievements reflected in our financial results, we are extremely pleased with the growing strength of our global platform from both a regional and service line perspective.
"Notwithstanding higher fuel costs, airfreight forwarding net revenues grew 24 percent in the fiscal 2006 first quarter over the prior-year first quarter. Our ocean volumes continue to grow, delivering an increase of 21 percent in ocean freight forwarding net revenues during the first quarter of fiscal 2006, compared with the fiscal 2005 first quarter, despite tightening capacity conditions in the market. With IHD and Unigistix now part of our UTi team, our contract logistics net revenues improved 40 percent during the fiscal 2006 first quarter when compared with the prior-year period," MacFarlane said.
Each region of UTi's global network contributed to the growing performance of the company in the first quarter of fiscal 2006. Europe, led by the performance in Spain, recorded growth of 25 percent in net revenues and generated a 27 percent improvement in operating income for the fiscal 2006 first quarter over the first quarter a year ago. Net revenues in the Americas for the fiscal 2006 first quarter rose 17 percent over the fiscal 2005 first quarter, and operating income in this region grew 47 percent, benefiting from the contributions of Unigistix. Operations in Asia Pacific also recorded growth during the fiscal 2006 first quarter with net revenues and operating income up 22 percent and 27 percent, respectively, over the fiscal 2005 first quarter, reflecting UTi's growing China trade volumes. Due in part to contributions from IHD, Africa delivered increases during the fiscal 2006 first quarter, with net revenues up 64 percent and operating income up 71 percent, compared with the prior-year first quarter.
MacFarlane added: "We realize, despite these results, the operating environment is a very dynamic one around the world. In addition, our baseline is now significantly higher as a result of the strong performance delivered in fiscal 2005. Given these two factors, we believe that maintaining these rates of growth throughout the balance of the current year will be very challenging. Nonetheless, we remain committed to our NextLeap initiatives and continue to focus on delivering value and becoming the primary logistics partner to more of our strategic customers."
Investor Conference Call
UTi management will host an investor conference call today, June 9, 2005, at 7:00 a.m. PDT (10:00 a.m. EDT) to review the company's financials and operations for the fiscal 2006 first quarter ended April 30, 2005. The call will be open to all interested investors through a live, listen-only audio Web broadcast via the Internet at www.go2uti.com and www.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 9:00 a.m. PDT, today, through 5:00 p.m. PDT, Friday, June 10, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using Reservation No. 12788415.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its customers' global supply chains.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its ability to meet customers' needs; its role as a primary logistics partner and outsourced solution for global integrated logistics; its NextLeap initiatives and strategic operating plan, its global platform or network, operating performance and delivery of value to customers; the company's focus on specialized industry solutions, its growth strategy and the contributions of acquisitions. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including a challenging operating environment; increased competition; integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; risks of international operations; the success and effects of new strategies, disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. The historical results achieved by the company are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
UTi Worldwide Inc.
Condensed Consolidated Income Statements
(in thousands, except share and per share amounts)
Three months ended
April 30,
------------------------
2005 2004
------ ------
(Unaudited)
Gross revenues:
Airfreight forwarding $278,280 $227,991
Ocean freight forwarding 186,635 137,073
Customs brokerage 20,308 18,581
Contract logistics 94,586 69,328
Other 50,384 36,655
-------- --------
Total gross revenues $630,193 $489,628
======== ========
Net revenues:
Airfreight forwarding $70,529 $56,763
Ocean freight forwarding 25,584 21,231
Customs brokerage 19,563 17,913
Contract logistics 78,780 56,341
Other 26,742 17,741
-------- --------
Total net revenues 221,198 169,989
Staff costs 115,771 91,932
Depreciation and
amortization 5,704 3,900
Amortization of intangible
assets 1,142 181
Other operating expenses 71,654 55,291
-------- --------
Operating income 26,927 18,685
Interest (expense)/income, net (723) 173
Gains on foreign exchange 74 100
-------- --------
Pretax income 26,278 18,958
Provision for income taxes 7,576 5,545
-------- --------
Income before minority
interests 18,702 13,413
Minority interests (933) (620)
-------- --------
Net income $17,769 $12,793
======== ========
Basic earnings per share $0.57 $0.42
Diluted earnings per share $0.55 $0.40
Number of weighted-average shares outstanding used for
per share calculations:
Basic shares 31,003,404 30,614,969
Diluted shares 32,532,763 31,967,335
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
April 30, January 31,
2005 2005
---------- ----------
(Unaudited)
ASSETS
Cash and cash
equivalents $ 154,132 $ 178,132
Trade receivables,
net 469,873 435,223
Deferred income tax
assets 12,569 10,027
Other current assets 39,184 44,509
---------- ----------
Total current assets 675,758 667,891
Property, plant and
equipment, net 70,942 71,190
Goodwill and other
intangible assets, net 328,846 293,775
Investments 1,404 587
Deferred income tax
assets 1,110 1,104
Other non-current assets 10,142 10,120
---------- ----------
Total assets $1,088,202 $1,044,667
========== ==========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 81,233 $ 92,340
Short-term borrowings 3,048 3,165
Current portion of capital
lease obligations 3,531 3,465
Trade payables and other
accrued liabilities 428,183 413,003
Income taxes payable 24,141 18,533
Deferred income tax
liabilities 1,552 678
---------- ----------
Total current liabilities 541,688 531,184
Long-term borrowings 4,944 5,105
Capital lease obligations 10,294 9,820
Deferred income tax
liabilities 18,752 19,607
Retirement fund
obligations 1,343 1,332
Other long-term
liabilities 715 136
Minority interests 4,309 3,293
Commitments and
contingencies
Shareholders' equity:
Common stock 348,396 325,905
Retained earnings 182,918 169,821
Accumulated other
comprehensive loss (25,157) (21,536)
---------- ----------
Total shareholders'
equity 506,157 474,190
---------- ----------
Total liabilities and
shareholders' equity $1,088,202 $1,044,667
========== ==========
UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three months ended
April 30,
-------------------------
2005 2004
------- ------
(Unaudited)
OPERATING ACTIVITIES:
Net income $17,769 $12,793
Adjustments to reconcile net income to
net cash used in operating activities:
Stock compensation costs 1,332 33
Depreciation and
amortization 5,704 3,900
Amortization of
intangible assets 1,142 181
Deferred income taxes (2,363) 97
Tax benefit relating to
exercise of stock options 998 204
Gain on disposal of
property, plant and equipment (32) (143)
Other 928 620
Changes in operating assets and liabilities:
Increase in trade
receivables and
other current assets (31,915) (52,736)
Increase in trade payables and
other current liabilities 3,088 30,172
-------- -------
Net cash used in
operating activities (3,349) (4,879)
INVESTING ACTIVITIES:
Purchases of property,
plant and equipment (4,168) (3,579)
Proceeds from disposal
of property, plant
and equipment 180 1,220
Increase in other
non-current assets (144) (852)
Acquisitions of
subsidiaries and
contingent earn-out payments (2,907) (2,857)
Other (868) (795)
-------- -------
Net cash used in
investing activities (7,907) (6,863)
FINANCING ACTIVITIES:
Decrease in bank lines
of credit (11,107) (2,769)
Decrease in short-term
borrowings (452) (175)
Repayments of long-term
borrowings (129) (15)
Repayments of capital
lease obligations (1,310) (863)
Decrease in minority
interests -- (144)
Net proceeds from issuance
of ordinary shares 2,368 722
-------- -------
Net cash used in
financing activities (10,630) (3,244)
-------- -------
Net decrease in cash
and cash equivalents (21,886) (14,986)
Cash and cash equivalents
at beginning of period 178,132 156,687
Effect of foreign
exchange rate changes (2,114) (837)
-------- -------
Cash and cash equivalents
at end of period $154,132 $140,864
======== ========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended April 30, 2005
-----------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- --------
Gross revenue
from external
customers $161,983 $156,778 $181,714 $129,718 $ -- $630,193
======== ======== ======== ======== ======== ========
Net revenue $ 49,628 $ 80,424 $ 28,727 $ 62,419 $ -- $221,198
Staff costs 27,161 46,531 12,461 27,367 2,251 115,771
Depreciation
and
amortization 1,415 1,116 693 1,985 495 5,704
Amortization
of intangible
assets -- 956 -- 186 -- 1,142
Other
operating
expenses 13,462 24,699 7,261 24,051 2,181 71,654
-------- -------- -------- -------- -------- --------
Operating
income/(loss) $ 7,590 $ 7,122 $ 8,312 $ 8,830 $ (4,927) 26,927
======== ======== ======== ======== ========
Interest
expense, net (723)
Gain on
foreign
exchange 74
--------
Pretax income 26,278
Provision for
income taxes 7,576
--------
Income before
minority
interests $ 18,702
========
Three months ended April 30, 2004
-----------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- --------
Gross revenue
from external
customers $134,694 $127,671 $144,728 $ 82,535 $ -- $489,628
======== ======== ======== ======== ======== ========
Net revenue $ 39,697 $ 68,703 $ 23,517 $ 38,072 $ -- $169,989
Staff costs 21,844 41,392 10,146 16,858 1,692 91,932
Depreciation
and
amortization 1,170 806 590 973 361 3,900
Amortization
of intangible
assets -- 148 -- 33 -- 181
Other
operating
expenses 10,711 21,496 6,226 15,040 1,818 55,291
Operating -------- -------- -------- -------- -------- --------
income/(loss) $ 5,972 $ 4,861 $ 6,555 $ 5,168 $ (3,871) 18,685
======== ======== ======== ======== ========
Interest
income, net 173
Gain on
foreign
exchange 100
--------
Pretax income 18,958
Provision for
income taxes 5,545
--------
Income before
minority
interests $ 13,413
========
UTi Worldwide Inc.
Supplemental Financial Information
(in thousands)
Three months ended
April 30,
---------------------
2005 2004
---- ----
(Unaudited)
FORWARDING, CUSTOMS BROKERAGE & OTHER:
Gross revenue from
external customers $ 507,594 $ 399,261
========= =========
Net revenue $ 124,860 $ 99,844
Staff costs 65,569 52,569
Depreciation and amortization 3,260 2,513
Other operating expenses 35,915 28,032
--------- ---------
Operating income $ 20,116 $ 16,730
========= =========
CONTRACT LOGISTICS, DISTRIBUTION & OTHER:
Gross revenue from
external customers $ 122,599 $ 90,367
========= =========
Net revenue $ 96,338 $ 70,145
Staff costs 47,951 37,671
Depreciation and amortization 1,949 1,026
Amortization of intangible assets 1,142 181
Other operating expenses 33,558 25,441
--------- ---------
Operating income $ 11,738 $ 5,826
========= =========