Full Year and Fourth Quarter Highlights:
-- Fiscal year 1998 revenues and earnings increased 43% and 25%,
respectively
-- Fourth quarter revenues and shipments increased 43% and 40%, excluding
the effect of the August 1997 UPS strike
-- Cost control measures underway
Quarter Ended %
Financial & Operating Data 9/30/98 9/30/97 Change
Revenues (000's) $121,844 $91,392 33%
Operating Income (000's)
Net Income (000's) $8,335 $8,124 3%
$5,508 $5,232 5%
Basic Earnings Per Share $0.29 $0.29 0%
Diluted Earnings Per Share $0.28 $0.28 0%
Operating Data
Freight Forwarding Shipments 300,984 290,744 4%
Average Weight (lbs.) Per Shipment 687 434 58%
Freight Forwarding Terminals 71 60 18%
Local Delivery Locations 63 44 43%
"We are very pleased with our full year results for the year ended
September 30, 1998. Revenues and net income increased greater than 43 percent
and 25 percent, respectively, during the 1998 fiscal year compared to last
year. With cash balances of $49.7 million at year-end and no long-term debt,
we are in a very strong financial position. However, our fourth quarter
results were disappointing, due in part to certain operating expense issues.
We are aggressively pursuing measures to bring operating costs in line by
streamlining the operations of our airfreight and local delivery units as well
as various other cost containment initiatives. Our business model continues
to work very well and our service to our customers remains excellent as
evidenced by our continued strong revenue growth," said James R. Crane,
Chairman and Chief Executive Officer.
HOUSTON, Nov. 12 /PRNewswire/ -- Eagle USA Airfreight, Inc. (Nasdaq: EUSA)
today announced increased revenues and earnings for the fourth quarter ended
September 30, 1998. Revenues for the fourth quarter increased 33 percent to
$121.8 million from $91.4 million in the same period of fiscal 1997. Net
income for the quarter totaled $5.5 million, a 5 percent increase over $5.2
million in the fourth quarter of fiscal 1997. Diluted earnings per share for
the quarter was $0.28 compared to $0.28 in the same period of fiscal 1997.
The results for the prior year include certain nonrecurring business
generated by the UPS strike. Adjusting for this effect, this year's fourth
quarter revenue and net income increased 43 percent and 12 percent,
respectively. Same terminal revenue growth was 15 percent during the fourth
quarter. After adjusting for the effect of the UPS strike, same terminal
revenue growth was 24 percent.
Revenues for the year ended September 30, 1998 increased 43 percent to
$417.1 million from $291.8 million in the same period of fiscal 1997. Net
income totaled $21.0 million, a 25 percent increase over $16.8 million in
fiscal 1997. Diluted earnings per share of $1.09 increased 21 percent from
$0.90 in fiscal 1997. Same terminal revenue growth was 25 percent for fiscal
year 1998. After adjusting for the effect of the UPS strike, same terminal
revenue growth was 28 percent for fiscal year 1998.
"We are very pleased with our full year results for the year ended
September 30, 1998," said James R. Crane, Chairman and Chief Executive
Officer. "Revenues and net income increased greater than 43 percent and 25
percent, respectively, during the 1998 fiscal year compared to last year.
With cash balances of $49.7 million at year-end and no long-term debt, we are
in a very strong financial position. However, our fourth quarter results were
disappointing, due in part to certain operating expense issues. We are
aggressively pursuing measures to bring operating costs in line by
streamlining the operations of our airfreight and local delivery units as well
as other cost containment initiatives. Our business model continues to work
very well and our service to our customers remains excellent as evidenced by
our continued strong revenue growth."
Cash flows from operating activities for the year ended September 30, 1998
were $24.5 million compared to $921,000 in fiscal 1997, due in part to
improved collection efforts. Cash flows from operating activities for the
year ended September 30, 1998 exceeded 116 percent of fiscal 1998 net income.
Crane noted that continued strong growth in international sales helped
fuel overall results. International sales, which accounted for 15 percent of
total revenues for the quarter, increased 177 percent in the fourth quarter of
fiscal 1998 over the same period in fiscal 1997. The April 1998 acquisitions
of S. Boardman and Eagle Companies added approximately $6.7 million in
international revenue during the fourth quarter and $14.0 million in
international revenues for the last six months of fiscal year 1998.
The Company continues to evaluate acquisition candidates as it pursues its
global growth plans.
"Looking ahead to fiscal 1999, we will focus on cost control measures
without sacrificing service to our customers," continued Crane. "We plan to
continue our strong marketing efforts and our commitment to outstanding
customer service. Additionally, we plan to continue expansion of our domestic
and international operations during fiscal 1999."
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 71 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 Year Ended
September 30, September 30,
1998 1997 1998 1997
Revenues $ 121,844 $ 91,392 $ 417,083 $ 291,768
Cost of transportation 68,732 50,758 233,258 163,616
53,112 40,634 183,825 128,152
Personnel costs 28,513 21,729 97,583 67,813
Other selling, general
and admin. costs 16,264 10,781 54,023 34,640
Operating income 8,335 8,124 32,219 25,699
Interest and other income 517 345 1,776 1,693
Income before provision
for income taxes 8,852 8,469 33,995 27,392
Provision for income taxes 3,344 3,237 12,964 10,594
Net income $5,508 $ 5,232 $ 21,031 $ 16,798
Basic earnings per share $0.29 $0.29 $1.12 $0.94
Diluted earnings per share $0.28 $0.28 $1.09 $0.90
Basic weighted average common
shares outstanding 19,090 18,018 18,734 17,792
Diluted weighted average common
shares outstanding 19,579 18,886 19,374 18,682
EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, September 30,
1998 1997
(unaudited) (audited)
ASSETS
Current assets :
Cash, cash equivalents and
short-term investments $49,678 $27,786
Accounts receivable, net 69,576 54,662
Prepaid expenses and other 3,905 4,557
Total current assets 123,159 87,005
Property and equipment, net 21,963 14,090
Other assets 11,214 5,776
Total assets $ 156,336 $ 106,871
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued transportation $ 18,556 $ 13,819
Other current liabilities 18,734 12,548
Total current liabilities 37,290 26,367
Long-term indebtedness -- --
Shareholders' equity 119,046 80,504
Total liabilities and
shareholders' equity $ 156,336 $ 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
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