LONG BEACH, Calif., June 7, 2007 (PRIME NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported increases in gross and net revenues of 22 percent and 24 percent, respectively, for its first quarter ended April 30, 2007.
For the first quarter of fiscal 2008, gross revenues totaled $944.7 million, compared with $773.7 million in the prior-year first quarter. Net revenues rose to $336.0 million for the first quarter of fiscal 2008 from $271.6 million in the first quarter a year ago. Organic growth across all geographic regions, as well as contributions from the company's acquisitions made since February 1, 2006, contributed to the first quarter revenue gains. After adjusting for the impact of these acquisitions, as well as the impact of currency fluctuations on UTi's results, gross and net revenues grew organically by 13 percent and 15 percent, respectively, in the fiscal 2008 first quarter, when compared with the corresponding period a year ago.
"Our first quarter financial results were right on plan and we remain pleased with the consistent levels of organic revenue growth being delivered by UTi's team worldwide," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "During the quarter we made important progress on all areas of focus. We remain committed to driving both improved cost management and organic revenue growth. We have reduced the number of initiatives in the company while maintaining our efforts to enhance on the value of our global supply chain services and solutions."
Operating income in the first quarter of fiscal 2008 was $31.4 million, versus $30.0 million in the fiscal 2007 first quarter. The company posted net income of $18.1 million, or $0.18 per diluted share, for the fiscal 2008 first quarter. This compares with $19.3 million, or $0.20 per diluted share, in the fiscal 2007 first quarter.
"We are excited to embark on our new five year strategic plan, CLIENTasONE, which builds on the success of NextLeap. We are confident that this next phase of our long-term strategy will continue to provide enhanced value to our clients and shareholders over the next five years and beyond," MacFarlane said.
Guidance
The company confirmed its previously stated fiscal 2008 full-year earnings per share guidance in the range of $1.14 to $1.22 cents per diluted share. The company also reiterated its position that the giving of guidance for fiscal 2008 is not an indication of a change in practice in regards to providing guidance in future years.
Investor Conference Call
UTi management will host an investor conference call today, June 7, 2007, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fiscal 2008 first quarter. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from approximately 11:00 a.m. PDT, today, through June 14, 2007 by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using replay passcode 29358239.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains.
Use of Non-GAAP Financial Information
This press release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. We believe that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Short-term patterns and long-term trends may be obscured by the impact of certain items. For this reason, we have referred to gross and net revenue growth adjusted to exclude the impact of acquisitions made since the beginning of the comparative period, and the impact of changes in the translation of foreign currencies into U.S. dollars. This information is among the information the company uses as a basis for evaluating company performance on a comparable basis over time, allocating resources and planning and forecasting of future periods. This information is not intended to be considered in isolation or as a substitute for gross and net revenue growth calculated in accordance with GAAP.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its NextLeap goals and journey, the company's discussion of CLIENTasONE, the company's long-term strategy, and the company's discussion of its financial goals, including but not limited to margin improvement. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including integration risks associated with acquisitions, the ability to retain customers and management of acquisition targets; a challenging operating environment; increased competition; the impact of higher fuel costs; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; the success and effects of new strategies; disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, we cannot assure you that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. Accordingly, investors are cautioned not to place undue reliance on our forward-looking statements. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
UTi Worldwide Inc.
Condensed Consolidated Income Statement
(in thousands, except share and per share amounts)
Three months ended
April 30,
-----------------------------
2007 2006
------------ ------------
(Unaudited)
Gross revenues:
Airfreight forwarding $ 344,146 $ 307,570
Ocean freight forwarding 232,290 206,533
Customs brokerage 21,883 19,805
Contract logistics 141,515 109,161
Distribution 118,849 77,796
Other 86,055 52,835
------------ ------------
Total gross revenues $ 944,738 $ 773,700
============ ============
Net revenues:
Airfreight forwarding $ 85,246 $ 74,889
Ocean freight forwarding 36,975 31,529
Customs brokerage 21,158 19,159
Contract logistics 121,742 93,093
Distribution 35,513 29,018
Other 35,407 23,940
------------ ------------
Total net revenues 336,041 271,628
Staff costs 184,717 147,883
Depreciation and amortization 9,387 7,436
Amortization of intangible assets 1,985 1,851
Other operating expenses 108,534 84,476
------------ ------------
Operating income 31,418 29,982
Interest expense, net (4,091) (2,867)
(Losses)/gains on foreign exchange (368) 185
------------ ------------
Pretax income 26,959 27,300
Provision for income taxes 7,967 7,094
------------ ------------
Income before minority interests 18,992 20,206
Minority interests (872) (882)
------------ ------------
Net income (1) $ 18,120 $ 19,324
============ ============
Basic earnings per share $ 0.18 $ 0.20
Diluted earnings per share $ 0.18 $ 0.20
Number of weighted-average shares
outstanding used for per share
calculations:
Basic shares 98,695,869 95,481,624
Diluted shares 100,209,000 99,027,366
(1) In connection with our December 2006 restatement, net income for
the three months ended April 30, 2006 was increased by $2,732 of
non-cash items.
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
April 30, January 31,
2007 2007
------------ ------------
(Unaudited)
ASSETS
Cash and cash equivalents $ 224,648 $ 278,408
Trade receivables, net 721,484 662,804
Deferred income tax assets 12,735 10,889
Other current assets 62,499 57,563
------------ ------------
Total current assets 1,021,366 1,009,664
Property, plant and equipment, net 130,782 127,990
Goodwill and other intangible
assets, net 501,490 490,884
Investments 3,933 3,096
Deferred income tax assets 11,674 12,725
Other non-current assets 17,196 15,511
------------ ------------
Total assets $ 1,686,441 $ 1,659,870
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 68,244 $ 79,057
Short-term borrowings 1,345 2,808
Current portion of capital lease
obligations 15,164 13,550
Trade payables and other accrued
liabilities 606,762 603,575
Income taxes payable 20,247 15,333
Deferred income tax liabilities 3,304 3,954
------------ ------------
Total current liabilities 715,066 718,277
Long-term borrowings 211,308 211,458
Capital lease obligations 21,825 24,099
Deferred income tax liabilities 31,485 30,291
Retirement fund obligations 7,633 7,549
Other long-term liabilities 14,005 12,078
Minority interests 18,537 18,844
Commitments and contingencies
Shareholders' equity:
Common stock 422,183 419,111
Retained earnings 276,119 266,136
Accumulated other comprehensive
loss (31,720) (47,973)
------------ ------------
Total shareholders' equity 666,582 637,274
------------ ------------
Total liabilities and
shareholders' equity $ 1,686,441 $ 1,659,870
============ ============
UTi Worldwide Inc.
Consolidated Statements of Cash Flows
(in thousands)
Three months ended
April 30,
-----------------------------
2007 2006
------------ ------------
(Unaudited)
OPERATING ACTIVITIES:
Net income $ 18,120 $ 19,324
Adjustments to reconcile net income
to net cash used in operating
activities:
Share-based compensation costs/
(benefits), net 365 (138)
Depreciation and amortization 9,387 7,436
Amortization of intangible assets 1,985 1,851
Deferred income taxes (363) (928)
Tax (loss)/benefit relating to
exercise of stock options (667) 386
Excess tax benefits from
share-based compensation (24) (329)
(Loss)/gain on disposal of
property, plant and equipment 29 (76)
Minority interest and other (858) 1,003
Changes in operating assets and
liabilities:
Increase in trade receivables (44,287) (92,240)
Increase in other current
assets (3,689) (4,870)
Decrease in trade payables (24,096) (26,291)
Increase in accrued
liabilities and other
current liabilities 7,696 35,634
------------ ------------
Net cash used in operating
activities (36,402) (59,238)
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment (6,143) (4,543)
Proceeds from disposal of property,
plant and equipment 425 399
Increase in other non-current assets (209) (5,325)
Acquisitions and contingent
earn-out payments (3,666) (197,238)
Other (818) (860)
------------ ------------
Net cash used in investing
activities (10,411) (207,567)
FINANCING ACTIVITIES:
(Decrease)/increase in borrowings
under bank lines of credit (8,615) 158,998
Decrease in short-term borrowings (1,570) (1,873)
Proceeds from issuing of long-term
borrowings -- 211
Repayment of long-term borrowings (26) (747)
Repayments of capital lease
obligations (5,487) (2,155)
Net proceeds from issuance of
ordinary shares 3,378 5,652
Excess tax benefits from
share-based compensation 24 329
------------ ------------
Net cash (used in)/provided by
financing activities (12,296) 160,415
Effect of foreign exchange rate
changes on cash and cash
equivalents 5,349 1,949
------------ ------------
Net decrease in cash and cash
equivalents (53,760) (104,441)
Cash and cash equivalents at
beginning of period 278,408 246,510
------------ ------------
Cash and cash equivalents at end of
period $ 224,648 $ 142,069
============ ============
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended April 30, 2007
------------------------------------------------
Americas
Contract
Americas Logistics
Freight and Asia
EMENA Forwarding Distribution Pacific
--------- ---------- ------------ ---------
Gross revenue $ 239,506 $ 134,610 $ 195,930 $ 107,058
========= ========= ========= =========
Net revenue $ 75,852 $ 39,526 $ 112,804 $ 22,012
Staff costs 43,425 23,061 62,361 10,868
Depreciation and
amortization 1,917 600 3,195 514
Amortization of
intangible assets -- -- 1,719 --
Other operating
expenses 21,994 11,098 35,631 5,232
--------- --------- --------- ---------
Operating
income/(loss) $ 8,516 $ 4,767 $ 9,898 $ 5,398
========= ========= ========= =========
Interest expense,
net
Losses on foreign
exchange
Pretax income
Provision for
income taxes
Income before
minority
interests
---------------------------------------------------
Global
Greater Specialized
China Africa Solutions Corporate Total
--------- ---------- --------- --------- ---------
Gross revenue $ 118,249 $ 132,458 $ 16,927 $ -- $ 944,738
========= ========= ======== ======== =========
Net revenue $ 18,257 $ 52,676 $ 14,914 $ -- $ 336,041
Staff costs 7,360 25,013 6,968 5,661 184,717
Depreciation and
amortization 605 1,749 387 420 9,387
Amortization of
intangible assets 111 -- 155 -- 1,985
Other operating
expenses 5,836 19,159 5,156 4,428 108,534
--------- --------- -------- -------- ---------
Operating
income/(loss) $ 4,345 $ 6,755 $ 2,248 $(10,509) 31,418
========= ========= ======== ========
Interest expense,
net (4,091)
Losses on foreign
exchange (368)
---------
Pretax income 26,959
Provision for
income taxes 7,967
---------
Income before
minority
interests $ 18,992
=========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended April 30, 2006
------------------------------------------------
Americas
Contract
Americas Logistics
Freight and Asia
EMENA Forwarding Distribution Pacific
--------- ---------- ------------ ---------
Gross revenue $ 184,093 $ 113,755 $ 127,060 $ 101,749
========= ========= ========= =========
Net revenue $ 54,329 $ 34,682 $ 80,814 $ 18,880
Staff costs 28,863 21,776 48,670 8,736
Depreciation and
amortization 1,408 538 2,067 417
Amortization of
intangible assets -- -- 1,553 --
Other operating
expenses 16,107 9,783 22,172 4,377
--------- --------- --------- ---------
Operating
income/(loss) $ 7,951 $ 2,585 $ 6,352 $ 5,350
========= ========= ========= =========
Interest expense,
net
Gains on foreign
exchange
Pretax income
Provision for
income taxes
Income before
minority
interests
---------------------------------------------------
Global
Greater Specialized
China Africa Solutions Corporate Total
--------- ---------- --------- --------- ---------
Gross revenue $ 105,931 $ 121,837 $ 19,275 $ -- $ 773,700
========= ========= ======== ======== =========
Net revenue $ 16,757 $ 51,782 $ 14,384 $ -- $ 271,628
Staff costs 6,196 24,218 5,900 3,524 147,883
Depreciation and
amortization 418 1,738 346 504 7,436
Amortization of
intangible assets 115 -- 183 -- 1,851
Other operating
expenses 4,654 19,738 4,648 2,997 84,476
--------- --------- -------- -------- ---------
Operating
income/(loss) $ 5,374 $ 6,088 $ 3,307 $ (7,025) 29,982
========= ========= ======== ========
Interest expense,
net (2,867)
Gains on foreign
exchange 185
---------
Pretax income 27,300
Provision for
income taxes 7,094
---------
Income before
minority
interests $ 20,206
=========
UTi Worldwide Inc.
Revenue Growth Reconciliation
(in thousands)
(Unaudited)
Set forth below is a reconciliation of our organic growth in our
gross and net revenues over the corresponding prior-year period.
Organic
growth
-------
GROSS REVENUES:
Three months ended April 30, 2007 (as reported) $944,738
Less: Acquisitions impact (1) (69,905)
Add: Currency impact (2) (1,161)
--------
Three months ended April 30, 2007 (as adjusted) $873,672
========
Three months ended April 30, 2006 $773,700 13%
======== =======
NET REVENUES:
Three months ended April 30, 2007 (as reported) $336,041
Less: Acquisitions impact (3) (26,883)
Add: Currency impact (2) 4,048
--------
Three months ended April 30, 2007 (as adjusted) $313,206
========
Three months ended April 30, 2006 $271,628 15%
======== =======
(1) Represents gross revenues attributable to acquisitions that were
completed on or after February 1, 2006.
(2) Represents the fluctuations in foreign currency exchange rates
when balances are translated into U.S. dollars.
(3) Represents net revenues attributable to acquisitions that were
completed on or after February 1, 2006.