Second Quarter Highlights:
* Revenues up 47%
* Operating income increases by 51%
* Same terminal revenue growth increases by 33% (A)
Quarter Ended %
Financial & Operating Data 3/31/98 3/31/97 Change
Revenues (000's) $90,544 $61,489 47%
Operating Income (000's) $6,064 $4,025 51%
Net Income (000's) $3,989 $2,948 35%
Diluted Earnings Per Share $0.21 $0.16 31%
Operating Data
Freight Forwarding Shipments 240,361 174,059 38%
Average Weight (lbs.) Per Shipment 555 562 (1%)
Freight Forwarding Terminals 60 53 13%
Local Delivery Locations 54 40 35%
"Strong same terminal revenue growth during the second quarter drove
overall revenue growth within our core domestic freight forwarding business.
We also continue to see strong growth at our newer terminals and continue to
win significant new customers. Our international freight forwarding expansion
plans have been strongly enhanced by the two recently-completed acquisitions
related to our international forwarding business in Latin America and the
United Kingdom." -- James R. Crane, Chairman and Chief Executive Officer.
(A) Percentage increase in revenues for those terminals open as of the
beginning of the prior fiscal year.
HOUSTON, April 28 /PRNewswire/ -- Eagle USA Airfreight, Inc.
(Nasdaq: EUSA) today announced increased revenues and earnings for the second
quarter ended March 31, 1998, primarily driven by the rapid expansion of its
core freight forwarding business and strong increases in the number of
shipments and the total weight of cargo shipped.
Revenues for the second quarter increased 47 percent to $90.5 million from
$61.5 million in the same period of fiscal 1997. Net income for the quarter
totaled $4.0 million, a 35 percent increase over $2.9 million in the second
quarter of fiscal 1997. Diluted earnings per share of $0.21 increased
31 percent from $0.16 in the same period of fiscal 1997. Same terminal
revenue growth for the second quarter was 33 percent, fueled primarily by
strong marketing efforts at the terminal level.
Revenues for the six months ended March 31, 1998 increased 46 percent to
$188.2 million from $129.1 million in the same period of fiscal 1997. Net
income totaled $9.9 million, a 32 percent increase over $7.5 million in the
six months of fiscal 1997. Diluted earnings per share of $0.52 increased
30 percent from $0.40 in the same period of fiscal 1997. Cash flows from
operating activities for the six months ended March 31, 1998 were
$15.8 million compared to a deficit of $1.9 million in the same period of
fiscal 1997.
Second quarter gross profit margin was 44.1 percent of revenues versus
43.4 percent in the second quarter of 1997. The primary reasons for margin
improvement were increased air freight shipping volumes -- the number of
shipments increased 38 percent and the total weight of cargo shipped increased
36 percent over second quarter 1997 -- and the continued expansion of the
Company's local pick-up and delivery operations, which enabled the Company to
capture margins previously paid to third parties.
"Strong same terminal revenue growth during the second quarter drove
overall revenue growth within our core domestic freight forwarding business,"
said James R. Crane, Chairman and Chief Executive Officer. "We also continue
to see strong growth at our newer terminals and continue to win significant
new customers.
"Our international freight forwarding expansion plans have been strongly
enhanced by the two recently-completed acquisitions related to our
international forwarding business in Latin America and the United Kingdom."
During the second quarter, the Company was recognized as the
Transportation Supplier of the Year for Nokia Mobile Phones, Inc.'s
Distribution Center. In addition, the Company received a two-year contract
extension from Nokia, Inc., which includes servicing Nokia Mobile Phones as
well as Nokia Telecommunications. Other contract extensions were awarded by
IBM, Time Warner and 3M. The Company also added significant new customers
during the quarter, including Cargill Inc. and H.B. Fuller Company.
During April 1998, the Company opened North American terminals in Wichita,
Kansas; Tampa, Florida and Montreal, Canada. Management expects to open
between ten and twelve additional North American terminals over the next two
quarters. During April 1998, the Company acquired its first company-owned
overseas facilities through its acquisition of S. Boardman Air Services
Limited, a full service international freight forwarder with facilities in
London, Manchester and Birmingham, England.
Crane also noted that continued strong growth in international sales is
helping fuel overall results. The weight of international shipments is
typically 2-3 times that of domestic shipments, and as a result, generate
greater revenue per shipment. International sales, which accounted for
8 percent of total revenues for the quarter, increased 64 percent in the
second quarter of fiscal 1998 over the same period in fiscal 1997. The April
1998 acquisitions of S. Boardman and Eagle Companies are expected to add
approximately $33 million in international revenue over the next twelve
months.
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 66 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, future international revenues, results and expansion plans, future
growth, 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 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.
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Six Months
Ended March 31, Ended March 31,
1998 1997 1998 1997
Revenues $90,544 $61,489 $188,189 $129,075
Cost of transportation 50,575 34,806 104,182 72,877
39,969 26,683 84,007 56,198
Personnel costs 21,681 14,885 44,936 29,173
Other selling, general and
admin. costs 12,224 7,773 23,658 15,802
Operating income 6,064 4,025 15,413 11,223
Interest and other income(A) 468 701 773 974
Income before provision for
income taxes 6,532 4,726 16,186 12,197
Provision for income taxes 2,543 1,778 6,307 4,735
Net income $3,989 $2,948 $ 9,879 $7,462
Basic earnings per share $0.21 $0.17 $0.54 $0.42
Diluted earnings per share $0.21 $0.16 $0.52 $0.40
Basic weighted average common
shares outstanding 18,580 17,717 18,418 17,621
Diluted weighted average common
shares outstanding 19,261 18,643 19,156 18,554
(A) Other income includes a one-time gain of $375 during the quarter
ended March 31, 1997.
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, September 30,
1998 1997
(unaudited) (audited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $47,985 $27,786
Accounts receivable, net 50,505 54,662
Prepaid expenses and other 3,406 4,557
Total current assets 101,896 87,005
Property and equipment, net 16,970 14,090
Other assets 5,556 5,776
Total assets $124,422 $106,871
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued transportation $12,290 $13,819
Other current liabilities 10,051 12,548
Total current liabilities 22,341 26,367
Long-term indebtedness -- --
Shareholders' equity 102,081 80,504
Total liabilities and shareholders' equity $124,422 $106,871
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
NOTE TO EDITORS: For more information about EUSA: Via fax dial
1-800-PRO-INFO and enter the ticker symbol -- 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.
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