Fourth Quarter Highlights:
-- Operating income increases 61%
-- Operating income margins expand over Q3 1999 and Q4 1998
-- Net income increases 44%
-- Same terminal revenue growth of 32%
Quarter Ended %
Financial & Operating Data 9/30/99 9/30/98 Change
Revenues (000's) $166,749 $121,844 37%
Operating Income (000's) $13,389 $8,335 61%
Net Income (000's) $7,922 $5,508 44%
Diluted Earnings Per Share $0.27 $0.19 42%
Operating Data
Freight Forwarding
Shipments 401,823 300,984 34%
Average Weight (lbs.)
Per Shipment 704 687 3%
Freight Forwarding Terminals 78 71 10%
Local Delivery Locations 67 63 6%
"Our fourth quarter and fiscal year results were both company records in
terms of revenues, operating income and net income. Fourth quarter operating
income margins improved over third quarter fiscal 1999 and fourth quarter 1998
results. Our non-asset based operating model continues to generate excellent
results while providing our customers with very flexible and time-sensitive
service offerings that are unmatched in the domestic heavyweight freight
forwarding market. Looking forward, first quarter shipment volumes look solid
and the outlook for fiscal 2000 is very promising," said James R. Crane,
Chairman and Chief Executive Officer.
HOUSTON, Nov. 4 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA)
today announced record revenues and earnings for the fourth quarter and year
ended September 30, 1999, primarily driven by the expansion of its core
domestic and international freight forwarding business and increases in the
number of shipments and total weight of cargo shipped.
Revenues for the fourth quarter increased 37 percent to $166.7 million
from $121.8 million in the same period of fiscal 1998. Net income for the
quarter totaled $7.9 million, a 44 percent increase over $5.5 million in the
fourth quarter of fiscal 1998. Diluted earnings per share for the fourth
quarter increased 42 percent to $0.27 from $0.19 in the same period of fiscal
1998. Same terminal revenue growth was 32 percent for the fourth quarter.
"Our fourth quarter and fiscal year results were both company records in
terms of revenues, operating income and net income. Fourth quarter operating
income margins improved over third quarter 1999 and fourth quarter 1998
results. Our non-asset based operating model continues to generate excellent
results while providing our customers with very flexible and time-sensitive
service offerings that are unmatched in the domestic heavyweight freight
forwarding market. Looking forward, first quarter shipment volumes look solid
and the outlook for fiscal 2000 is very promising," said James R. Crane,
Chairman and Chief Executive Officer.
Fourth quarter domestic forwarding revenues totaled $119.0 million, an
increase of 28 percent compared with the fourth quarter of fiscal 1998.
International forwarding revenues grew 89 percent to $34.8 million. Local
pick-up and delivery revenues totaled $12.9 million, an increase of
27 percent.
Fourth quarter operating income margins improved over third quarter 1999
and fourth quarter 1998 results. Operating income for the fourth quarter of
1999 was 8.0 percent of revenues compared to 7.4 percent in the third quarter
of fiscal 1999 and 6.8 percent in the fourth quarter of fiscal 1998.
Operating income as a percent of net revenues for the fourth quarter of 1999
was 19.1 percent compared to 17.4 percent in the third quarter of fiscal 1999
and 15.7 percent in the fourth quarter of fiscal 1998.
Revenues for fiscal 1999 increased 43 percent to $595.2 million from
$417.1 million during fiscal 1998. Net income totaled $28.5 million, a
36 percent increase over $21.0 million during fiscal 1998. Diluted earnings
per share of $0.98 increased 36 percent from $0.72 during fiscal 1998. Same
terminal revenue growth for fiscal 1999 was 35 percent.
Eagle spent approximately $5.6 million on share repurchases in the fourth
quarter. For fiscal 1999, the Company repurchased 1,045,050 split-adjusted
shares of its common stock at a cost of $14.6 million. At September 30, 1999,
the Company had cash and short-term investment balances of $52.4 million and
no long-term debt.
In the fourth quarter the Board authorized a three-for-two stock split
payable August 30, 1999 to shareholders of record on August 23, 1999. All
earnings per share information have been retroactively restated to reflect the
split.
Eagle USA Airfreight, 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 airfreight forwarding and other transportation and logistics
services. The Company's network of 78 terminals in eight 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 "EUSA."
The statements in this press release regarding first quarter shipment
volumes, fiscal 2000 outlook, plans for new terminals, 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 growth 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 Eagle: Visit Eagle on the Internet at
http://www.eagleusa.com, or Contact Eagle Investor Relations via the Internet
at mslaught@eagleusa.com, or by telephone at 281-618-3428, Michael Slaughter,
Vice President Investor Relations.
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(audited)
Three Months Ended Year Ended
September 30, September 30,
1999 1998 1999 1998
Revenues $166,749 $121,844 $595,173 $417,083
Cost of transportation 96,635 68,732 340,090 233,257
Net revenues 70,114 53,112 255,083 183,826
Personnel costs 34,987 28,513 128,942 97,584
Other selling, general
and admin costs 21,738 16,264 81,149 54,022
Operating income 13,389 8,335 44,992 32,220
Interest and other income 539 517 2,473 1,776
Income before provision
for income taxes 13,928 8,852 47,465 33,996
Provision for income taxes 6,006 3,344 18,967 12,964
Net income $7,922 $5,508 $28,498 $21,032
Basic earnings per share $0.28 $0.19 $1.01 $0.75
Diluted earnings per share $0.27 $0.19 $0.98 $0.72
Basic weighted average
common Shares
outstanding (A) 28,506 28,635 28,291 28,101
Diluted weighted average
common Shares
outstanding (A) 29,647 29,369 29,116 29,061
(A) All amounts reflect a three-for-two stock split effected in the form
of a stock dividend paid on August 30, 1999.
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
1999 1998
(audited) (audited)
ASSETS
Current assets :
Cash, cash equivalents and
short-term Investments $52,388 $49,678
Accounts receivable, net 109,003 69,576
Prepaid expenses and other 4,537 3,905
Total current assets 165,928 123,159
Property and equipment, net 28,184 21,963
Other assets 11,783 11,214
Total assets $205,895 $156,336
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
transportation $34,552 $18,556
Other current liabilities 27,533 18,734
Total current liabilities 62,085 37,290
Minority interest 183 --
Shareholders' equity 143,627 119,046
Total liabilities and
shareholders' equity $205,895 $156,336
SOURCE Eagle USA Airfreight, Inc.
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Related links:
http://www.eagleusa.com
CONTACT:
Elijio V. Serrano, Chief Financial Officer,
281-618-3665, or Michael D. Slaughter, Vice President of Investor
Relations, 281-618-3428, both of Eagle USA
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