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UTi Worldwide Reports Fiscal 2012 First Quarter Results

/ Source: GlobeNewswire

LONG BEACH, Calif., June 2, 2011 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2012 first quarter ended April 30, 2011.

Fiscal First Quarter 2012 vs. 2011 Results:

  • Revenues were $1,198.7 million, an increase of 14 percent from $1,055.2 million.
  • Net revenues (revenues minus purchased transportation costs) were $410.6 million, an increase of 12 percent from $365.7 million.
  • Net income attributable to UTi Worldwide Inc. was $8.7 million, or $0.08 per diluted share, in the first quarter of fiscal 2012.
  • Transformation and facility exit costs totaled $6.5 million, or $4.6 million after taxes, in the first quarter of fiscal 2012.
  • Excluding these costs, adjusted net income attributable to UTi Worldwide Inc. was $13.3 million, or $0.13 per diluted share, compared to $10.1 million, or $0.10 per diluted share.

Eric W. Kirchner, chief executive officer, said, "Net revenues in the fiscal 2012 first quarter increased over the same period last year primarily because of higher airfreight volumes and contract logistics activity. Airfreight volumes were strong as we continued to win new business in an improved market. Contract logistics and distribution revenues were higher in the first quarter due to an increase in existing business activity and new business. Net revenue per unit of cargo also increased in the first quarter, reflecting declines in carrier spot rates compared to the same period last year. Operating expenses in the fiscal 2012 first quarter included transformation-related costs as well as costs associated with the exit of certain underutilized contract logistics facilities in Europe. We view these actions as important steps toward achieving our long-term targets."

Revenues increased 13.6 percent in the 2012 fiscal first quarter compared to the prior-year first quarter primarily due to increased airfreight volumes, higher fuel surcharges, which the company passes through to clients, and greater contract logistics activity. Net revenues increased 12.3 percent in the first quarter primarily due to increased volumes and higher net revenue per unit of cargo. Currency trends positively impacted both revenue and net revenue in the first quarter. On an organic, constant currency basis, adjusted net revenues increased 7.9 percent compared to the first quarter last year.

Operating expenses in the first quarter of fiscal 2012, excluding purchased transportation costs, were $391.8 million. The fiscal 2012 first quarter operating expenses include transformation costs of $3.6 million comprising severance of $2.0 million and costs related to the company's new financial system of $1.6 million. In addition, the company recorded $2.9 million in severance and facility exit costs relating to the closure of underutilized contract logistics facilities in Europe described above. Excluding these items, which total $6.5 million, adjusted operating expenses in the fiscal 2012 first quarter were $385.3 million, an increase of 11.1 percent compared to the same period last year. On an organic, constant currency basis, adjusted operating expenses in the fiscal 2012 first quarter were 6.9 percent higher than the same period last year.

The company reported operating income in the fiscal 2012 first quarter of $18.8 million. Excluding the transformation and facility exit costs of $6.5 million described above, adjusted operating income was $25.3 million, which represented 6.2 percent of net revenues. This compares to operating income in the year-ago first quarter of $19.0 million, or 5.2 percent of net revenues. The adjusted operating income and margin increases primarily reflect the higher volumes and net revenue per unit of cargo improvement in freight forwarding, as well as increased volumes in contract logistics compared to the same period last year.

Investor Conference Call:

UTi management will host an investor conference call today, June 2, 2011, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financial results for the fiscal 2012 first quarter. Investment professionals are invited to participate in the live call by dialing 800-762-8779 (domestic) or 480-629-9771 (international) using conference ID 4438598. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from approximately 11:00 a.m. PDT, today, through June 5, 2011, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4438598.

About UTi Worldwide:

UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains.

Use of Non-GAAP Financial Information:

This press release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. UTi believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance and the company's judgments about the likelihood that particular factors will repeat. Short-term patterns and long-term trends may be obscured by the impact of certain items. For this reason, the company has referred to adjusted operating expenses, which are adjusted to exclude purchased transportation costs, as well as transformation and facility exit costs, and to adjusted net income and adjusted operating income, which are adjusted to exclude transformation and facility exit costs. The company also has referred to organic, constant-currency revenue and net revenue growth, which are adjusted to exclude the impact of acquisitions made since the beginning of the comparative period and the impact of currency fluctuations between comparable periods; and to organic, constant-currency adjusted operating expenses, which are adjusted to exclude purchased transportation costs, the impact of acquisitions made since the beginning of the comparative period and the impact of currency fluctuations between comparable periods. This information is among the information the company uses as a basis for evaluating company performance on a comparable basis over time, allocating resources and planning and forecasting of future periods. The company has also provided this information because such adjustments make performance information more comparable to prior disclosures for investors, and may enhance the ability of investors to analyze the company's performance. This information is not intended to be considered in isolation or as a substitute for, or superior to, the relevant measures prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables at the end of this press release.

Safe Harbor Statement:

Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such forward-looking statements may include, but are not limited to, the statements about the future impact of the company's efforts to exit certain underutilized contract logistics facilities on the company's margins, the outlook for the future and other statements not of an historical nature. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including but not limited to the economic volatility that has materially impacted trade volumes, transportation capacity, pricing dynamics and overall margins; the financial condition of many of the company's customers; planned or unplanned consequences of the company's sales initiatives, procurement initiatives and business transformation efforts; the demand for the company's services; the impact and related costs associated with reorganization efforts and/or cost reduction measures undertaken by the company; increased competition; the impact of volatile fuel costs and changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and EMENA; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; risks associated with, and costs and expenses the company will incur as a result of, the ongoing publicly announced U.S. Department of Justice and other governmental investigations into the pricing practices of the air cargo transportation industry and other similar or related investigations and lawsuits; disruptions caused by epidemics, natural disasters, conflicts, wars and terrorism; and the other risks and uncertainties described in "Risk Factors" and "Forward-looking Statements" in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and described in the company's other filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, the company cannot assure the reader that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. Accordingly, investors are cautioned not to place undue reliance on the company's forward-looking statements. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

(Tables Follow)

 

 

 

CONTACT: Jeff Misakian Vice President, Investor Relations (562) 552-9417 jmisakian@go2uti.com