First Quarter Highlights:
-- Strong gains were realized from high-tech, automotive and retail
customers as revenues increased 48%
-- Operating income and net income increased 30% and 32%, respectively
-- Same terminal revenue growth was 37%
Quarter Ended %
Financial & Operating Data 12/31/98 12/31/97 Change
Revenues (000's) $144,876 $97,645 48%
Operating Income (000's) $12,170 $9,349 30%
Net Income (000's) $7,748 $5,890 32%
Diluted Earnings Per Share $0.40 $0.31 29%
Operating Data
Freight Forwarding Shipments 319,364 236,495 35%
Average Weight (lbs.) Per Shipment 700 599 17%
Freight Forwarding Terminals 72 60 20%
Local Delivery Locations 66 49 35%
"We started off fiscal year 1999 with a very strong performance. We
continue to focus on increasing revenues in our core domestic, international
and pickup and delivery businesses, all of which realized excellent revenue
growth during the first quarter. Our ability to grow revenues at these rates
is solid evidence that we are providing our customers with cost-effective and
extremely customized and flexible transportation services. Additionally, we
are focusing on controlling operating expenses by streamlining the operations
of our airfreight and local delivery units without sacrificing service to our
customers," said James R. Crane, Chairman and Chief Executive Officer.
HOUSTON, Jan. 26 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA)
today announced record revenues and earnings for the first quarter ended
December 31, 1998. Revenues for the first quarter increased 48 percent to
$144.9 million from $97.6 million in the same period of fiscal 1998. Net
income for the quarter totaled $7.7 million, a 32 percent increase over
$5.9 million in the first quarter of fiscal 1998. Diluted earnings per share
for the first quarter increased 29 percent to $0.40 from $0.31 in the same
period of fiscal 1998.
"We started off fiscal year 1999 with a very strong performance," said
James R. Crane, Chairman and Chief Executive Officer. "We continue to focus
on increasing revenues in our core domestic, international and pickup and
delivery businesses, all of which realized excellent growth during the first
quarter. Our ability to grow revenues at these rates is solid evidence that
we are providing our customers with cost-effective and extremely customized
and flexible transportation services. Additionally, we are focusing on
controlling operating expenses by streamlining the operations of our
airfreight and local delivery units without sacrificing service to our
customers. "
Cash flows from operating activities for the quarter ended December 31,
1998 were $5.7 million compared to $2.1 million during the first quarter of
fiscal 1998, due in part to strong collection efforts.
During the first quarter, the Company repurchased 433,200 shares of its
outstanding common stock. The total cost of the share repurchases during the
first quarter was approximately $5.8 million. At December 31, 1998, the
Company had cash and short-term investment balances of $45.4 million and no
long-term debt.
Crane noted that continued solid growth in international sales helped fuel
overall results. International sales, which accounted for 18 percent of total
revenues for the quarter, increased 322 percent in the first quarter of fiscal
1999 over the same period in fiscal 1998. The April 1998 acquisitions of
S. Boardman and Eagle Companies along with the commencement of air freight
operations in Hong Kong during October 1998 added approximately $8.3 million
in international revenue during the first quarter of fiscal 1999.
"Looking ahead to the remainder of fiscal 1999, we will focus on our plan
of expanding our domestic and international operations through strong
marketing efforts, addition of new terminal locations and continued growth at
existing terminals," continued Crane. "Same terminal revenue growth results
of 37 percent for the first quarter demonstrates the overall strength of our
business model."
The Company continues to evaluate acquisition candidates as it pursues its
global growth plans.
Eagle USA Airfreight's dedication to providing superior flexibility and
fewer shipping restrictions on a price competitive basis has made it a leading
provider of airfreight forwarding and other transportation and logistics
services. Its network of 72 terminals features state-of-the-art information
systems to maximize cargo management efficiency and customer satisfaction.
The Company's shares are traded on the Nasdaq National Market under the symbol
"EUSA."
The statements in this press release regarding, the plans for new
terminals, results and expansion plans, future growth, global growth plans,
effect of cost control measures, future business, operations or results and
any other statements which are not historical facts are forward looking
statements. Such statements involve risks and uncertainties, including, but
not limited to, competition, general economic conditions, ability to manage
and continue growth, risks of international operations and other factors
detailed in the Company's filings with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual outcomes may vary materially
from those indicated.
For more information about EUSA: Visit EUSA on the Internet at
http://www.eagleusa.com. Contact EUSA Investor Relations via the Internet at
mslaught@eagleusa.com. Or by telephone at 281-618-3428, Michael Slaughter,
Director of Investor Relations.
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months
Ended Dec. 31,
1998 1997
Revenues $144,876 $97,645
Cost of transportation 81,553 53,607
63,323 44,038
Personnel costs 31,229 23,255
Other selling, general and admin. costs 19,924 11,434
Operating income 12,170 9,349
Interest and other income 532 305
Income before provision for income taxes 12,702 9,654
Provision for income taxes 4,954 3,764
Net income $7,748 $5,890
Basic earnings per share $0.41 $0.32
Diluted earnings per share $0.40 $0.31
Basic weighted average common
shares outstanding 18,787 18,259
Diluted weighted average common
shares outstanding 19,170 19,049
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Sept. 30,
1998 1998
(unaudited) (audited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
Investments $45,429 $49,678
Accounts receivable, net 79,493 69,576
Prepaid expenses and other 2,487 3,905
Total current assets 127,409 123,159
Property and equipment, net 23,400 21,963
Other assets 10,888 11,214
Total assets $161,697 $156,336
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued transportation $21,751 $18,556
Other current liabilities 18,520 18,734
Total current liabilities 40,271 37,290
Long-term liabilities -- --
Shareholders' equity 121,426 119,046
Total liabilities and shareholders' equity $161,697 $156,336
SOURCE Eagle USA Airfreight, Inc.
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Related links:
http://www.eagleusa.com
CONTACT:
Douglas A. Seckel, Chief Financial Officer,
281-618-3420, or Michael D. Slaughter, Director SEC
Reporting-Investor Relations, 281-618-3428, both of Eagle USA
Airfreight, Inc.
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