HOUSTON, July 25 /PRNewswire/ -- EGL, Inc. (Nasdaq: EAGL)
Third Quarter Highlights:
-- Domestic airfreight forwarding revenues increased 39% over the prior
year
-- Highest domestic forwarding revenue growth rate in nine quarters
-- Net revenues increased 38% over the prior year
-- Proposed merger with Circle proceeding on schedule for Fall close
Quarter Ended %
Financial & Operating Data 6/30/00 6/30/99 Change
Revenues (000's) $213,739 $149,826 43%
Operating Income (000's) $13,601 $11,072 23%
Net Income (000's) $8,461 $7,295 16%
Diluted Earnings Per Share $0.29 $0.25 16%
Operating Data
Freight Forwarding Shipments 653,792 362,331 80%
Total Weight (lbs.) Shipped(000's) 376,698 249,747 51%
Freight Forwarding Terminals 92 78 18%
Local Delivery Locations 77 67 15%
Chairman and CEO James R. Crane commented: "Our strong results in the
quarter were driven in large part by a significant increase in our
domestic business. Our focused marketing efforts and flexible service
model, coupled with excellent growth in business activity among our
customers in the technology and telecommunication industries, contributed
to domestic airfreight forwarding revenue growth of 39 percent over the
prior year. The tremendous work of our entire staff helped us achieve our
highest domestic airfreight forwarding revenue growth rate in nine
quarters. Our international business continues to show strong results,
increasing 76 percent in the quarter. Upon completion of our previously-
announced merger with Circle International Group, we will strengthen our
ability to take advantage of the opportunities we have outside the U.S."
EGL, Inc. (Nasdaq: EAGL) today announced revenues and earnings for the
third quarter ended June 30, 2000. Revenues for the third quarter increased
43 percent to $213.7 million, a record high for EGL, from $149.8 million in
the same period of fiscal 1999. Same terminal revenue growth for the quarter
was 34 percent.
Net income for the quarter totaled $8.5 million, a 16 percent increase
over $7.3 million in the third quarter of fiscal 1999. Diluted earnings per
share for the third quarter increased 16 percent to $0.29 from $0.25 in the
same period of fiscal 1999. The current quarter results included
approximately $800,000 of after tax recurring expenses, or $0.03 cents per
diluted share, related to the previously announced program to increase
expenditures for international staff and infrastructure costs.
"Our strong results in the quarter were driven in large part by a
significant increase in our domestic business," said Chairman and CEO James R.
Crane. "Our focused marketing efforts and flexible service model, coupled
with excellent growth in business activity among our customers in the
technology and telecommunication industries, contributed to domestic
airfreight forwarding revenue growth of 39 percent over the prior year. The
tremendous work of our entire staff helped us achieve our highest domestic
airfreight forwarding revenue growth rate in nine quarters."
"Our international business continues to show strong results, increasing
76 percent in the quarter," Crane added. "Upon completion of our previously-
announced merger with Circle International Group, we will strengthen our
ability to take advantage of the opportunities we have outside the U.S."
On July 3, 2000, the Company announced a proposed merger with Circle
International Group under which each of Circle's approximate 17.65 million
shares of common stock will be converted into one share of EGL common stock.
The merger effectively ends the Company's previously announced program to
increase expenditures for international staff and infrastructure costs. EGL
expects to utilize the staff and infrastructure related to this program
subsequent to the completion of the merger.
Also on July 3, 2000, the Company announced that it would change from a
fiscal year to a calendar year in order to facilitate comparisons with its
peer companies and to match its reporting requirements to those of its merger
partner, Circle International Group.
Revenues for the nine months ended June 30, 2000 increased 38 percent to
$589.9 million from $428.4 million in the same period of fiscal 1999. Net
income totaled $23.7 million, a 15 percent increase over $20.6 million in the
first nine months of fiscal 1999. Diluted earnings per share of $0.79
increased 11 percent from $0.71 in the same period of fiscal 1999.
During the third quarter, the Company spent approximately $8.8 million on
share repurchases. As a result of the Circle transaction, the Company has
discontinued its share repurchase program. At June 30, 2000, the Company had
cash on hand of $20.0 million and no long-term debt.
EGL, Inc. operates under the name EGL Eagle Global Logistics. Eagle's
dedication to providing superior flexibility and fewer shipping restrictions
on a price competitive basis has made it a leading provider of heavy-weight
airfreight forwarding and other transportation and logistics services. The
Company's network of 92 terminals in nine countries features state-of-the-art
information systems designed to maximize cargo management efficiency and
customer satisfaction. The Company's shares are traded on the NASDAQ National
Market under the symbol "EAGL."
Forward Looking Statement And Investor Notice
The statements in this press release regarding future growth, results and
expansion plans, timing and effects of the Circle merger, 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, costs and
difficulties relating to the Circle merger and the integration of Circle,
risks that the merger will be delayed or not occur, 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.
EGL plans to file with the Securities and Exchange Commission ("SEC") a
registration statement on Form S-4. In the connection with the merger, EGL
and Circle expect to mail a joint proxy statement/prospectus, which will be
part of the registration statement, to shareholders of EGL and Circle
containing information about the merger. Shareholders of EGL and Circle are
urged to read the joint proxy statement/prospectus included in the
registration statements when it is filed and any other relevant documents
filed with the SEC. The joint proxy statement/prospectus will contain
important information about EGL, Circle, the merger, the persons soliciting
proxies related to the merger, and related matters that should be considered
by shareholders before making any decision regarding the merger and related
transactions. Once they are filed with the SEC, the registration statement,
joint proxy statement/prospectus and other documents will be available free of
charge on the SEC's web site at http://sec.gov and from the EGL and Circle.
In addition to the registration statement and the joint proxy
statement/prospectus, EGL and Circle file annual, quarterly and special
reports, proxy statements and other information with the SEC that are also
available free of charge at the SEC's web site and from EGL and Circle.
In addition, the identity of the people who, under SEC rules, may be
considered "participants in the solicitation" of EGL shareholders and Circle
shareholders in connection with the proposed merger, and any description of
their interests, is available in an SEC filing under Schedule 14A made by both
EGL and Circle on July 3, 2000.
For more information about Eagle:
Contact Eagle Investor Relations via the Internet at
mslaught@eagleusa.com, or by telephone at 281-618-3428, Michael Slaughter,
Vice President of Investor Relations.
EGL, Inc.
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Nine Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Revenues $213,739 $149,826 $589,855 $428,424
Cost of transportation 125,807 86,133 346,695 243,455
Net revenue 87,932 63,693 243,160 184,969
Personnel costs 45,831 32,012 128,605 93,955
Other selling, general
and admin. costs 28,500 20,609 77,106 59,411
Operating income 13,601 11,072 37,449 31,603
Interest and other income 469 751 1,745 1,934
Income before provision
for income taxes 14,070 11,823 39,194 33,537
Provision for income taxes 5,609 4,528 15,495 12,961
Net income $8,461 $7,295 $23,699 $20,576
Basic earnings per share (A) $0.30 $0.26 $0.83 $0.73
Diluted earnings per share (A) $0.29 $0.25 $0.79 $0.71
Basic weighted-average common
Shares outstanding (A) 28,646 28,401 28,676 28,218
Diluted weighted-average common
Shares outstanding (A) 29,451 29,585 29,828 28,925
(A) - Adjusted for a 3-for-2 stock split effective August 30, 1999.
EGL, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
June 30,September 30,
2000 1999
(unaudited) (audited)
Assets
Current assets :
Cash, cash equivalents and short-term
Investments $19,977 $52,388
Accounts receivable, net 134,447 109,003
Prepaid expenses and other 8,587 6,529
Total current assets 163,011 167,920
Property and equipment, net 38,481 28,184
Goodwill and other assets 42,293 12,887
Total assets $243,785 $208,991
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued transportation $40,299 $34,552
Other current liabilities 30,309 27,532
Total current liabilities 70,608 62,084
Other liabilities 6,425 3,097
Minority interest (12) 183
Shareholders' equity 166,764 143,627
Total liabilities and shareholders' equity $243,785 $208,991
SOURCE EGL, Inc.
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CONTACT:
Elijio V. Serrano, Chief Financial Officer,
281-618-3665, or Michael D. Slaughter, Vice President of Investor
Relations, 281-618-3428, both of EGL, Inc.
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