HOUSTON, Feb. 10 /PRNewswire-FirstCall/ -- EGL, Inc. (Nasdaq: EAGL)
announced that net income increased 37% to $9.1 million for the three months
ended December 31, 2003, compared to $6.7 million in the fourth quarter of
2002. Diluted earnings per share for the quarter were $0.19 compared to $0.14
in Q4 2002.
Q4 Financial Highlights
-- Gross revenues increased 18% as compared to the same quarter last year
on strong international air, ocean, customs and logistics activity
-- Ocean net revenues increased 29% as compared to the same quarter last
year
-- 8.4% operating margin reflects the highest operating margin since Q3
2000
-- Net income increased 37% compared to Q4 2002 and was at the highest
level since Q3 2000
Three Months Ended Year Ended
$ thousands (except EPS) 12/31/03 12/31/02 12/31/03 12/31/02
Gross revenues $621,944 $ 527,880 $2,171,732 $ 1,869,333
% change + 17.8% + 16.2%
Net revenues $198,392 $ 183,537 $ 735,252 $ 672,132
% change + 8.1% + 9.4%
Net revenue margin 31.9% 34.8% 33.9% 36.0%
Operating income $ 16,583 $ 11,654 $ 44,765 $ 29,672
Net income $ 9,127 $ 6,666 $ 23,945 $ 9,434
Diluted EPS $ 0.19 $ 0.14 $ 0.50 $ 0.20
EGL Chief Executive Officer Jim Crane commented, "We continue to see
growth in all international product lines and slight improvements in the USA
domestic forwarding market. Our organization continues to focus on growing
our business with existing customers, improving yields, increasing utilization
of our operating facilities and the deployment of our global operating and
financial systems. Our fourth quarter performance reflects steady
improvements in the global economy. As the economy continues to recover, our
low cost domestic network is positioned to benefit from customers expediting
product from overseas suppliers directly to US distribution and retail
centers."
Gross revenues increased 18% from the fourth quarter of 2002 to $622
million reflecting a 9% increase in airfreight revenues - mainly
international, a 50% increase in ocean revenues and a 34% increase in customs
brokerage and logistics. North America ground volumes continued to reflect
the shift from priority to deferred shipments as the priority volumes declined
9%. Gross revenues outside North America increased 28%.
Net revenues of $198 million in the fourth quarter of 2003 increased 8%
from last year and were a record high for the Company. Net revenue margins of
31.9% declined by 290 basis points from the fourth quarter of 2002 reflecting
increased airline and ocean rates, primarily out of Asia, as well as the
continued shift away from the priority product to deferred shipments.
Operating income for the quarter increased 42% or $4.9 million, to $16.6
million, as compared to the fourth quarter of 2002 due to the $14.9 million
improvement in net revenues and no growth in other selling, general and
administrative expenses reflecting leverage on the infrastructure in North
America. Operating income as a percent of net revenue improved to 8.4%, the
highest levels since 2000.
Total Year 2003 Results
Gross revenues of $2.17 billion for the twelve months ended December 31,
2003 increased 16% over 2002. Net revenues of $735 million increased 9% while
net income of $23.9 million improved by 154% from 2002. Fully diluted
earnings per share for 2003 improved 150% to $0.50 compared to $0.20 for 2002.
Cash flow from operations for 2003 was $35 million, compared to net income of
$24 million. Capital investments during 2003 were $27 million, down from $41
million in 2002.
First Quarter of 2004 and Total Year 2004 Outlook
EGL expects first quarter 2004 diluted earnings per share in the range of
$0.05 to $0.07, compared to $0.06 for the first quarter of 2003. For 2004,
EGL projects gross revenue in the range of $2.3 to $2.4 billion and diluted
earnings per share in the range of $0.75 - $0.85. Capital expenditures for
2004 are estimated at $35 million.
Earnings Conference Call
EGL, Inc. plans to host a conference call for shareholders and the
investing community on February 10, 2004 at 11 a.m. Eastern time (8 a.m.
Pacific) to review results for the quarter and year ended December 31, 2003.
The call can be accessed by dialing (719) 457-2657, access code 336825 and is
expected to last approximately 60 minutes. Callers are requested to dial in at
least 5 minutes before the start of the call. The call will also be available
through live webcast on the company's website, http://www.eaglegl.com, on the
Investor Relations page. An audio replay will be available until Tuesday,
February 24, 2004 at (719) 457-0820, access code 336825.
Fourth quarter and total year 2003 product and geographic data and air
freight statistics are available on EGL's website, http://www.eaglegl.com on the
Investor Relations page.
Houston-based EGL, Inc. operates under the name EGL Eagle Global
Logistics. EGL is a leading global transportation, supply chain management
and information services company dedicated to providing superior flexibility
and fewer shipping restrictions on a price competitive basis. With 2003
revenues exceeding $2.1 billion, EGL's services include air and ocean freight
forwarding, customs brokerage, local pickup and delivery service, materials
management, warehousing, trade facilitation and procurement, and integrated
logistics and supply chain management services. The Company's shares are
traded on the NASDAQ National Market under the symbol "EAGL".
CAUTIONARY STATEMENTS
The statements in this press release (and statements in the conference
call referred to above) regarding projected profitability, adding to growth,
improvement on yields, increased efficiencies, deployment of operating and
financial systems, and initiatives in Asia, Europe and the Middle East, first
quarter and total year results and diluted earnings per share, projected
results for 2004, our ability to outperform the economy and other statements
which are not historical facts, are forward looking statements. Such
statements involve risks and uncertainties including, but not limited to,
general economic conditions, risks associated with operating in international
markets, the results of litigation, the timing and effects of any improvements
in the regions and industry sectors in which the Company's customers operate,
construction of new facilities and other infrastructure improvements, ability
to manage and continue growth, competition and other factors detailed in the
Company's 2002 Form 10-K, proxy statement/prospectus and other filings with
the Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize (or the consequences of such a development worsen),
or should underlying assumptions prove incorrect, actual outcomes may vary
materially from those forecasted or expected. The Company disclaims any
intention or obligation to update publicly or revise such statements, whether
as a result of new information, future events or otherwise. The financial
information included in this press release is subject to audit and is not
complete until filing of the Company's 2003 Form 10-K.
EGL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Revenues $621,944 $527,880 $2,171,732 $1,869,333
Cost of transportation 423,552 344,343 1,436,480 1,197,201
Net revenues 198,392 183,537 735,252 672,132
Operating expenses:
Personnel costs 110,529 100,434 416,565 370,817
Other selling, general and
administrative expenses 71,280 71,449 273,922 271,643
Operating income 16,583 11,654 44,765 29,672
Nonoperating expense, net (1,901) (727) (6,249) (14,556)
Income before provision for
income taxes 14,682 10,927 38,516 15,116
Provision for income taxes 5,555 4,261 14,571 5,895
Income before cumulative
effect of change
in accounting for negative
goodwill 9,127 6,666 23,945 9,221
Cumulative effect of change
in accounting
for negative goodwill - - - 213
Net income $9,127 $6,666 $23,945 $9,434
Basic earnings per share $0.19 $0.14 $0.51 $0.20
Diluted earnings per share $0.19 $0.14 $0.50 $0.20
Basic weighted-average
common
shares outstanding 47,388 47,034 47,204 47,610
Diluted weighted-averge
common
shares outstanding 53,431 52,989 47,481 47,811
EGL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Twelve Months Ended
December 31,
Cash flows from operating activities: 2003 2002
Net income $ 23,945 $ 9,434
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 31,190 30,527
Bad debt expense 7,162 7,669
Transfer to restricted cash (5,654) (2,393)
Other 4,747 10,686
Net effect of changes in working
capital, net of assets acquired (26,591) 8,702
Net cash provided by operating
activities 34,799 64,625
Cash flows from investing activities:
Capital expenditures (27,370) (41,429)
Investment in assets held for sale - (11,570)
Purchase of short-term investment (540) -
Proceeds from sales of other
assets 3,006 7,974
Proceeds from sale-lease back
transactions 1,158 21,487
Cash received from a minority
interest partner - 301
Dividend paid to a minority
interest partner (214) -
Acquisitions of businesses, net of
cash acquired (21,076) (1,081)
Initial investment in an
unconsolidated affiliate (750) -
Cash received from disposal of
affiliate - 385
Net cash used in investing activities (45,786) (23,933)
Cash flows from financing activities:
Repayment of notes payable, net (3,953) (1,407)
Repurchase of common stock - (10,014)
Issuance of common stock 4,642 1,720
Net cash provided by (used in)
financing activities 689 (9,701)
Effect of exchange rate changes on
cash 37 3,046
Increase (decrease) in cash and cash
equivalents (10,261) 34,037
Cash and cash equivalents, beginning
of the period 111,477 77,440
Cash and cash equivalents, end of the
period $101,216 $111,477
EGL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
December 31, December 31,
2003 2002
ASSETS
Current assets:
Cash, cash equivalents, restricted
cash
and short-term investments $115,326 $119,295
Trade accounts receivable, net of
allowance 447,353 371,024
Other current assets 59,923 53,412
Total current assets 622,602 543,731
Property and equipment, net 162,666 158,214
Investments in unconsolidated
affiliates 38,957 40,042
Goodwill, net 96,209 81,881
Other assets, net 28,609 19,058
Total assets $949,043 $842,926
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term notes
payable $8,328 $5,639
Trade payables and accrued
transportation costs 271,254 224,132
Accrued expenses and other
liabilities 114,974 113,260
Total current liabilities 394,556 343,031
Long-term notes payable 111,130 103,993
Other noncurrent liabilities 18,599 10,509
Minority interest 6,800 8,852
Stockholders' equity 417,958 376,541
Total liabilities and stockholders'
equity $949,043 $842,926
Fourth quarter 2003 product and geographic data and air freight statistics
are available on EGL's website,
http://www.eaglegl.com on the Investor Relations page.
SOURCE EGL, Inc.
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Related links:
http://www.eaglegl.com
CONTACT:
Elijio Serrano, Chief Financial Officer,
+1-281-618-3665, or Mike Slaughter, VP Finance, +1-281-618-3428,
both of EGL, Inc.
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