RANCHO DOMINGUEZ, Calif., April 6, 2004 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported strong financial results for the three- and twelve-month periods ended January 31, 2004, reflecting solid gains in gross and net revenue, operating income and net income, over comparable year-earlier results.
For the fiscal 2004 fourth quarter, gross revenues increased 23 percent to $415.3 million from $338.1 million in the corresponding period last fiscal year. Net revenues for the fiscal 2004 fourth quarter totaled $163.3 million, up 23 percent from $132.8 million in the fourth quarter of fiscal 2003.
"Once again, UTi achieved solid gains in gross and net revenues across all service categories over the prior-year comparable period," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "Our airfreight forwarding operations continued to perform well, posting a 26 percent increase in net revenues from last fiscal year's fourth quarter, which included one month of heightened airfreight volumes related to last year's West Coast port lock-out. We are also pleased that airfreight yields for the fiscal 2004 fourth quarter remained level with the immediately preceding third quarter at 27 percent, as compared with 26 percent in the fiscal 2003 fourth quarter."
In the fiscal 2004 fourth quarter, ocean freight forwarding net revenues advanced 17 percent; customs brokerage net revenues grew 6 percent; and contract logistics net revenues rose 19 percent, when compared with the year-ago fiscal fourth quarter.
"All geographic regions of UTi's global network contributed to gross revenue and net revenue gains in the fourth quarter of fiscal 2004, over the prior-year comparable period," MacFarlane said. "Our Asia Pacific operations posted a 21 percent increase in net revenues. Despite weak economic conditions in Europe, our operations in this region delivered growth of 44 percent in net revenues for the quarter, helped by a decline in the U.S. dollar, compared with last year. Currency exchange rates also boosted Africa's results, which posted a 45 percent increase in net revenues in the fiscal 2004 fourth quarter when compared to the prior year comparable period. The Americas recorded net revenue gains of 5 percent from the year-ago fourth quarter."
Operating income in the fiscal 2004 fourth quarter increased 26 percent to $15.0 million from $11.9 million in the prior-year fourth quarter. Operating margin, which is operating income expressed as a percentage of net revenues, equaled 9.2 percent in the fourth quarter, compared with 9.0 percent in the fiscal 2003 fourth quarter.
Net income for the fiscal 2004 fourth quarter rose 67 percent to $12.2 million, or $0.38 per diluted share, based on 31.7 million weighted average shares outstanding. The fiscal 2004 fourth quarter benefited by a change in the estimated effective tax rate for the fiscal year which resulted in an increase in net income of approximately 3 cents per diluted share. In the prior-year fourth quarter, the company recorded net income of $7.3 million, or $0.26 per diluted share, based on 28.7 million weighted average shares outstanding. UTi's secondary offering of 4.6 million ordinary shares in December 2002 resulted in 11 percent more weighted average shares outstanding for the fiscal 2004 fourth quarter, compared with the corresponding prior-year period.
"We are extremely proud of the solid execution made in our eighth quarter since beginning our five-year strategic NextLeap journey," said MacFarlane. "NextLeap continues to guide the path for all our initiatives at UTi, and quarter by quarter, the global UTi team has delivered greater value to new and existing customers, and increases in revenues, operating income and net income, compared with year-earlier results."
Full Year Review
For the year ended January 31, 2004, gross revenues advanced 28 percent to $1.5 billion from $1.2 billion a year ago. Net revenues for fiscal 2004 totaled $596.1 million, a 47 percent increase over $404.8 million last year. Standard Corporation, which was acquired effective October 2002, contributed to both gross and net revenues for the last quarter of fiscal 2003, compared with its contribution for the full twelve months in fiscal 2004.
Operating income for the year totaled $59.1 million, a 30 percent increase over $45.5 million in fiscal 2003. Operating margin (operating income expressed as a percentage of net revenues) equaled 9.9 percent in the current twelve-month period, compared with 11.2 percent a year ago, reflecting the impact of a full year's contribution from Standard, which traditionally operates at a lower operating margin when compared to other UTi operations.
Net income for fiscal 2004 rose 53 percent to $44.8 million, compared with $29.3 million a year earlier. On a per share basis, net income climbed to $1.42 per diluted share, based on 31.5 million weighted average shares outstanding, from $1.11 per diluted share, based on 26.5 million weighted average shares outstanding, in fiscal 2003.
MacFarlane added: "Fiscal 2004 results underscore the soundness of UTi's vision of global integrated logistics. As we look back on the first two years of our NextLeap journey, we are proud of the accomplishments made by the UTi team in building a strong platform designed to support growth on many levels for years to come. Emblematic of NextLeap's influence on our success is our recent introduction of eMpower5, UTi's proprietary information technology system that provides global visibility across all facets for our customers' supply chains in one application view. We believe we are well positioned to continue making progress as we focus on global integrated logistics solutions and becoming the primary logistics partner with more of our strategic customers."
At January 31, 2004, the company reported total cash and cash equivalents, net of outstanding bank lines of credit and short-term bank borrowings, of $137.2 million, compared with $125.5 million at January 31, 2003.
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.
Investor Conference Call
UTi management will host an investor conference call today, Tuesday, April 6, 2004, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fourth quarter and year ended January 31, 2004. 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.fulldisclosure.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 10:00 a.m. PDT, Tuesday, April 6, through 5:00 p.m. PDT, Friday, April 9, by calling 800-633-8284 (domestic) or 402-977-9140 (international) and using Reservation No. 21190318.
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 growth strategy and integration 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 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.
(Tables Follow)
UTi Worldwide Inc.
Condensed Consolidated Income Statements
(in thousands, except share and per share amounts)
Three months ended Twelve months ended
January 31, January 31,
------------------------- -------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
(Unaudited)
Gross revenues:
Airfreight
forwarding $ 198,488 $ 164,406 $ 720,689 $ 621,905
Ocean freight
forwarding 104,023 74,464 360,253 283,869
Customs
brokerage 18,429 17,448 67,859 64,221
Contract
logistics 60,354 49,973 229,709 101,294
Other 34,042 31,771 124,365 98,771
------------ ------------ ------------ ------------
Total gross
revenues $ 415,336 $ 338,062 $ 1,502,875 $ 1,170,060
============ ============ ============ ============
Net revenues:
Airfreight
forwarding $ 53,446 $ 42,450 $ 198,822 $ 157,493
Ocean freight
forwarding 21,028 18,039 75,131 66,554
Customs
brokerage 17,714 16,682 65,532 61,105
Contract
logistics 51,784 43,367 192,969 79,517
Other 19,346 12,261 63,687 40,121
------------ ------------ ------------ ------------
Total net
revenues 163,318 132,799 596,141 404,790
------------ ------------ ------------ ------------
Staff costs 86,967 68,927 318,727 204,971
Depreciation and
amortization 4,056 3,557 14,806 11,174
Amortization of
intangible
assets 179 128 663 198
Other operating
expenses 57,149 48,278 202,874 142,942
------------ ------------ ------------ ------------
Operating income 14,967 11,909 59,071 45,505
Interest income/
(expense), net 74 (60) 1,041 (486)
Losses on foreign
exchange (329) (1,016) (341) (1,725)
------------ ------------ ------------ ------------
Pretax income 14,712 10,833 59,771 43,294
Provision for
income taxes (2,230) (3,307) (13,403) (12,492)
------------ ------------ ------------ ------------
Income before
minority
interests 12,482 7,526 46,368 30,802
Minority
interests (279) (198) (1,597) (1,508)
------------ ------------ ------------ ------------
Net income $ 12,203 $ 7,328 $ 44,771 $ 29,294
============ ============ ============ ============
Basic earnings
per ordinary
share $ 0.40 $ 0.26 $ 1.48 $ 1.13
Diluted earnings
per ordinary
share $ 0.38 $ 0.26 $ 1.42 $ 1.11
Number of
weighted-average
shares
outstanding used
for per share
calculations
Basic shares 30,454,062 27,740,029 30,291,543 25,932,164
Diluted shares 31,745,844 28,673,009 31,479,887 26,504,401
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
As of January 31,
------------------------
2004 2003
--------- ---------
ASSETS
Cash and cash equivalents $ 156,687 $ 168,125
Trade receivables, net 280,044 247,893
Deferred income tax assets 6,534 1,592
Other current assets 33,420 30,492
--------- ---------
Total current assets 476,685 448,102
Property, plant and equipment, net 54,421 44,566
Goodwill and other intangible
assets, net 158,567 125,641
Investments 1,117 847
Deferred income tax assets 2,384 1,227
Other non-current assets 10,167 6,692
--------- ---------
Total assets $ 703,341 $ 627,075
========= =========
LIABILITIES & SHAREHOLDERS' EQUITY
Bank lines of credit $ 18,180 $ 33,458
Short-term borrowings 1,312 9,121
Current portion of capital lease
obligations 2,408 2,539
Trade payables and other accrued
liabilities 269,072 236,548
Income taxes payable 10,864 8,083
Deferred income tax liabilities 256 489
--------- ---------
Total current liabilities 302,092 290,238
Long-term borrowings 93 199
Capital lease obligations 7,326 7,111
Deferred income tax liabilities 3,860 1,643
Retirement fund obligations 1,251 1,016
Minority interests 2,873 2,699
Commitments and contingencies
Shareholders' equity:
Common stock 318,409 311,161
Retained earnings 105,855 63,973
Accumulated other comprehensive
loss (38,418) (50,965)
--------- ---------
Total shareholders' equity 385,846 324,169
--------- ---------
Total liabilities and shareholders'
equity $ 703,341 $ 627,075
========= =========
UTi Worldwide Inc.
Consolidated Statements of Cash Flows
(in thousands)
Twelve months ended
January 31,
-------------------------
2004 2003
--------- ---------
OPERATING ACTIVITIES:
Net income $ 44,771 $ 29,294
Adjustments to reconcile net
income to net cash provided
by operating activities:
Stock compensation costs 798 182
Depreciation and amortization 14,806 11,174
Amortization of intangible
assets 663 198
Deferred income taxes 847 423
Tax benefit relating to
exercise of stock options 836 --
Gain on disposal of property,
plant and equipment 171 110
Other 1,395 1,329
Changes in operating assets
and liabilities:
Increase in trade receivables
and other current assets (10,172) (23,564)
Increase in trade payables
and other current liabilities 11,743 30,456
--------- ---------
Net cash provided by
operating activities 65,858 49,602
--------- ---------
INVESTING ACTIVITIES:
Purchases of property, plant and
equipment (18,720) (13,572)
Proceeds from disposal of
property, plant and equipment 889 430
Increase in other non-current
assets (1,674) --
Acquisitions of subsidiaries and
contingent earn-out payments (30,288) (62,944)
Other (587) (599)
--------- ---------
Net cash used in investing
activities (50,380) (76,685)
--------- ---------
FINANCING ACTIVITIES:
(Decrease)/increase in bank lines
of credit (15,278) 12,396
Decrease in short-term borrowings (7,421) (3,727)
Long-term borrowings -- repaid (146) (204)
Capital lease obligations --
repaid (3,444) (3,068)
Decrease in minority interests (1,296) (1,028)
Proceeds from issuance of
ordinary shares 5,614 100,836
Dividends paid (2,889) (1,929)
--------- ---------
Net cash (used in)/provided by
financing activities (24,860) 103,276
--------- ---------
Net (decrease)/increase in cash
and cash equivalents (9,382) 76,193
Cash and cash equivalents at
beginning of period 168,125 87,594
Effect of foreign exchange rate
changes (2,056) 4,338
--------- ---------
Cash and cash equivalents at end
of period $ 156,687 $ 168,125
========= =========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Three months ended January 31, 2004
-----------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- --------
Gross revenue
from external
customers $116,128 $112,357 $132,065 $ 54,786 $ -- $415,336
======== ======== ======== ======== ======== ========
Net revenue $ 38,525 $ 63,711 $ 22,688 $ 38,394 $ -- $163,318
Staff costs 21,064 38,170 10,101 16,008 1,624 86,967
Depreciation
and
amortization 1,215 984 602 897 358 4,056
Amortization
of
intangible
assets -- 148 -- 31 -- 179
Other
operating
expenses 13,088 20,927 5,743 16,443 948 57,149
-------- -------- -------- -------- -------- --------
Operating
income/(loss) $ 3,158 $ 3,482 $ 6,242 $ 5,015 $ (2,930) 14,967
======== ======== ======== ======== ========
Interest
income, net 74
Losses on
foreign
exchange (329)
--------
Pretax income 14,712
Provision for
income taxes (2,230)
--------
Income before
minority
interests $ 12,482
========
Three months ended January 31, 2003
-----------------------------------------------------
(Unaudited)
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- --------
Gross revenue
from external
customers $100,626 $105,101 $ 90,742 $ 41,593 $ -- $338,062
======== ======== ======== ======== ======== ========
Net revenue $ 26,829 $ 60,692 $ 18,822 $ 26,456 $ -- $132,799
Staff costs 15,796 34,219 7,607 10,470 835 68,927
Depreciation
and
amortization 1,034 925 514 645 439 3,557
Amortization
of intangible
assets -- 128 -- -- -- 128
Other operating
expenses 9,690 21,977 5,426 10,510 675 48,278
-------- -------- -------- -------- -------- --------
Operating
income/(loss) $ 309 $ 3,443 $ 5,275 $ 4,831 $ (1,949) 11,909
======== ======== ======== ======== ========
Interest
expense, net (60)
Losses on
foreign
exchange (1,016)
--------
Pretax income 10,833
Provision for
income taxes (3,307)
--------
Income before
minority
interests $ 7,526
========
UTi Worldwide Inc.
Segment Reporting
(in thousands)
Twelve months ended January 31, 2004
-------------------------------------------------------
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- ----------
Gross revenue
from external
customers $424,457 $449,381 $430,376 $198,661 $ -- $1,502,875
======== ======== ======== ======== ======== ==========
Net revenue $129,404 $252,378 $ 86,489 $127,870 $ -- $ 596,141
Staff costs 73,814 147,201 36,708 55,667 5,337 318,727
Depreciation
and
amortization 4,415 3,976 2,140 3,088 1,187 14,806
Amortization
of intangible
assets -- 594 -- 69 -- 663
Other
operating
expenses 40,125 84,760 21,755 51,264 4,970 202,874
-------- -------- -------- -------- -------- ----------
Operating
income/(loss)$ 11,050 $ 15,847 $ 25,886 $ 17,782 $(11,494) 59,071
======== ======== ======== ======== ========
Interest
income, net 1,041
Losses on
foreign
exchange (341)
----------
Pretax income 59,771
Provision for
income taxes (13,403)
----------
Income before
minority
interests $ 46,368
==========
Twelve months ended January 31, 2003
-------------------------------------------------------
Asia
Europe Americas Pacific Africa Corporate Total
-------- -------- -------- -------- -------- ----------
Gross revenue
from external
customers $372,515 $317,314 $337,430 $142,801 $ -- $1,170,060
======== ======== ======== ======== ======== ==========
Net revenue $ 99,571 $143,484 $ 70,626 $ 91,109 $ -- $ 404,790
Staff costs 54,864 81,603 29,237 35,263 4,004 204,971
Depreciation
and
amortization 3,526 2,848 1,962 1,982 856 11,174
Amortization
of intangible
assets -- 198 -- -- -- 198
Other operating
expenses 30,608 50,382 19,981 37,695 4,276 142,942
-------- -------- -------- -------- -------- ---------
Operating
income/(loss)$ 10,573 $ 8,453 $ 19,446 $ 16,169 $ (9,136) 45,505
======== ======== ======== ======== ========
Interest
expense, net (486)
Losses on
foreign
exchange (1,725)
---------
Pretax income 43,294
Provision for
income taxes (12,492)
---------
Income before
minority
interests $ 30,802
==========
UTi Worldwide Inc.
Supplemental Financial Information
(in thousands)
Three months ended Twelve months ended
January 31, January 31,
---------------------- ----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
(Unaudited)
FORWARDING, CUSTOMS
BROKERAGE & OTHER:
Gross revenue from
external
customers $ 335,875 $ 269,580 $1,202,131 $1,008,874
========== ========== ========== ==========
Net revenue $ 99,222 $ 80,103 $ 357,987 $ 296,266
Staff costs 51,165 39,746 187,753 148,843
Depreciation and
amortization 2,607 2,362 9,713 8,280
Other operating
expenses 31,391 26,066 104,747 91,657
---------- ---------- ---------- ----------
Operating income $ 14,059 $ 11,929 $ 55,774 $ 47,486
========== ========== ========== ==========
CONTRACT LOGISTICS,
DISTRIBUTION &
OTHER:
Gross revenue from
external customers $ 79,461 $ 68,482 $ 300,744 $ 161,186
========== ========== ========== ==========
Net revenue $ 64,096 $ 52,696 $ 238,154 $ 108,524
Staff costs 34,178 28,346 125,637 52,124
Depreciation and
amortization 1,091 756 3,906 2,038
Amortization of
intangible assets 179 128 663 198
Other operating
expenses 24,810 21,537 93,157 47,009
---------- ---------- ---------- ----------
Operating income $ 3,838 $ 1,929 $ 14,791 $ 7,155
========== ========== ========== ==========