Expeditors International of Washington, Inc. (NASDAQ:EXPD) today
announced third quarter 2021 financial results including the
following highlights compared to the same quarter of 2020:
- Diluted Net Earnings Attributable to Shareholders per share
(EPS1) increased 87% to $2.09
- Net Earnings Attributable to Shareholders increased 88% to $359
million
- Operating Income increased 94% to $490 million
- Revenues increased 84% to $4.3 billion
- Airfreight tonnage volume and ocean container volume increased
28% and 15%, respectively
“In a marketplace that remains severely impacted by labor and
infrastructure constraints throughout the supply chain, our people
continue to perform at their best by identifying, accessing, and
securing available space,” said Jeffrey S. Musser, President and
Chief Executive Officer. “There remains an overall deficiency of
available air capacity due to a reduction of passenger belly space
on international routes. Despite increased utilization of air
charters, there is insufficient capacity to meet the current high
demand. At the same time, unprecedented congestion at the ocean
ports due to labor and equipment shortages is disrupting sailing
schedules and causing significant delays. There is simply not
enough equipment, warehouse and pier space, or people in the
locations where they are needed to meaningfully reduce the
significant backlogs of cargo. Handling record volumes under these
conditions has not been easy, but we continue to set records for
company performance by servicing our customers at the highest
level.
“The entire global infrastructure for the movement of cargo
remains stretched beyond its limits. While certain ocean ports are
particularly constrained, most notably on the U.S. west coast, many
of the current bottlenecks stem from supply and infrastructure
issues that were building well before the pandemic. The global
reaction to COVID-19, including lockdowns, facility closures and
spikes in demand for certain products, exposed and exacerbated
those long-simmering issues. Unfortunately, there is no simple or
immediate fix. As a result, we believe these current conditions are
likely to last well into 2022.
“We also believe, as we always have, that our company’s best
strategy for achieving ongoing success in servicing our customers
and growing our business depends on our strong culture of close
collaboration. As many of the most restrictive pandemic
precautionary measures are being lifted around the world, we are
carefully bringing our people back to on-site work in a measured
and cautious manner. Our view is that the stresses of so many of
our people working at such an accelerated pace from so many remote,
off-site locations would be unsustainable over the long term.”
Bradley S. Powell, Senior Vice President and Chief Financial
Officer, added, “Our strong results continue to demonstrate our
ability to adapt and perform exceptionally well on behalf of our
customers under very trying conditions. Demand continues to far
outstrip available capacity. Buy and sell rates for both air and
ocean remain elevated and erratic. Despite those conditions, our
operating efficiency is strong, even as each individual shipment
requires more resources and greater attention, and conditions
change rapidly. While we are performing exceptionally well under
these trying circumstances, I continue to caution that we are
unable to predict how long the current conditions will persist or
the impact they will have on our future operations.”
Expeditors is a global logistics company headquartered in
Seattle, Washington. The Company employs trained professionals in
176 district offices and numerous branch locations located on six
continents linked into a seamless worldwide network through an
integrated information management system. Services include the
consolidation or forwarding of air and ocean freight, customs
brokerage, vendor consolidation, cargo insurance, time-definite
transportation, order management, warehousing and distribution and
customized logistics solutions.
_______________________
1Diluted earnings attributable to
shareholders per share.
NOTE: See Disclaimer on Forward-Looking
Statements in this release.
Expeditors International of Washington,
Inc.
Third Quarter 2021 Earnings Release,
November 2, 2021
Financial Highlights for the three and
nine months ended September 30, 2021 and 2020 (Unaudited)
(in 000's of US dollars except per share
data)
Three months ended September
30,
Nine months ended September
30,
2021
2020
% Change
2021
2020
% Change
Revenues3
$
4,319,261
$
2,348,713
84%
$
11,127,174
$
6,603,558
69%
Directly related cost of transportation
and other expenses1, 3
$
3,185,490
$
1,614,334
97%
$
8,031,407
$
4,504,452
78%
Salaries and other operating
expenses2
$
644,134
$
482,434
34%
$
1,809,970
$
1,440,480
26%
Operating income
$
489,637
$
251,945
94%
$
1,285,797
$
658,626
95%
Net earnings attributable to
shareholders
$
359,068
$
191,307
88%
$
962,660
$
497,520
93%
Diluted earnings attributable to
shareholders per share
$
2.09
$
1.12
87%
$
5.61
$
2.92
92%
Basic earnings attributable to
shareholders per share
$
2.12
$
1.14
86%
$
5.68
$
2.96
92%
Diluted weighted average shares
outstanding
171,565
170,735
171,549
170,539
Basic weighted average shares
outstanding
169,633
168,310
169,398
167,942
_______________________
1Directly related cost of transportation
and other expenses totals Operating Expenses from Airfreight
services, Ocean freight and ocean services and Customs brokerage
and other services as shown in the Condensed Consolidated
Statements of Earnings.
2Salaries and other operating expenses
totals Salaries and related, Rent and occupancy, Depreciation and
amortization, Selling and promotion and Other as shown in the
Condensed Consolidated Statements of Earnings.
3Beginning in the first quarter of 2019,
the Company made changes to its process and presentation of freight
services revenue and directly related transportation operating
expenses with the objective that at each reporting level (reporting
entity, segment and consolidated level) the gross revenue and
associated directly related operating expenses be representative of
the location where the services were performed, the operating
expenses were incurred and where the revenues were earned. During
the second quarter of 2021, management identified and corrected
certain immaterial errors in the Company’s historical financial
statements primarily related to this process that was utilized
through the first quarter of 2021. The process missed an
intercompany elimination of revenues and an equal and offsetting
amount of directly related transportation expenses, principally
impacting airfreight services in North Asia. The errors overstated
revenues and directly related transportation operating expenses by
equal amounts in the consolidated statements of earnings. The
errors had no impact on operating income, net earnings, and
earnings per share nor any other financial statement amount.
Further, the errors had no impact on the balance sheets, statements
of shareholders’ equity, other comprehensive income and cash flows.
These errors do not affect any of the metrics used to calculate or
evaluate management’s compensation and had no impact on bonuses,
commissions, share-based compensation or any other employee
remuneration. Historical amounts have been revised and are
presented on a comparable basis.
During the nine months ended September 30, 2021 and 2020, we
repurchased 2.0 million and 4.4 million shares of common stock at
an average price of $110.45 and $71.41 per share, respectively.
Employee Full-time Equivalents
as of September 30,
2021
2020
North America
7,315
6,666
Europe
3,860
3,361
North Asia
2,440
2,406
South Asia
1,740
1,643
Middle East, Africa and India
1,507
1,509
Latin America
801
800
Information Systems
976
975
Corporate
395
383
Total
19,034
17,743
Disclaimer on
Forward-Looking Statements:
NOTE: See Disclaimer on Forward-Looking
Statements in this release.
Third quarter
year-over-year
percentage increase
in:
2021
Airfreight
kilos
Ocean freight
FEU
July
36%
18%
August
36%
21%
September
15%
7%
Quarter
28%
15%
Investors may submit written questions via e-mail to:
investor@expeditors.com. Questions received by the end of business
on November 5, 2021 will be considered in management's 8-K
“Responses to Selected Questions.”
Disclaimer on Forward-Looking
Statements:
Certain statements contained in this news release are
“forward-looking statements,” based on management’s views with
respect to future events and underlying assumptions that involve
risks and uncertainties. These forward-looking statements include
statements regarding the future stabilization of supply/demand
imbalance and rate volatility; the continued unsettled operating
environment due to continued scarce air and ocean capacity;
elevated air and ocean pricing and an increase in demand for such
services; port congestion; equipment imbalances; labor shortages;
insufficient warehouse and pier space; trade disruptions; rising
fuels costs; and the uneven lifting of the COVID-19 pandemic
restrictions. Future financial performance could differ materially
because of factors such as: our ability to leverage the strength of
our carrier relationships to secure space; the strength of our
non-asset-based operating model; our expectation that the
supply/demand imbalance and rate volatility will continue for the
remainder of 2021 and likely well into 2022, and will stabilize
over time; our ability to re-open our offices for return-to-work;
our ability to continue to enhance our productivity; our
expectation that the current unprecedented operating conditions
will not persist long-term; our ability to invest in our strategic
efforts to explore new areas for profitable growth; and our ability
to remain a strong, healthy, unified and resilient organization.
The COVID-19 pandemic could have the effect of heightening many of
the other risks described in Item 1A of our Annual Report on Form
10-K, including, without limitation, those related to the success
of our strategy and desire to maintain historical unitary
profitability, our ability to attract and retain customers, our
ability to manage costs, interruptions to our information
technology systems, the ability of third-party providers to perform
and potential litigation as updated by our reports on Form 10-Q,
filed with the Securities and Exchange Commission. These and other
factors are discussed in the Company’s regulatory filings with the
Securities and Exchange Commission, including those in “Item 1A.
Risk Factors” of the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2020. The forward-looking statements
contained in this news release speak only as of this date and the
Company does not assume any obligation to update them except as
required by law.
EXPEDITORS INTERNATIONAL OF
WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In thousands, except per share
data)
(Unaudited)
September 30,
2021
December 31,
2020
Assets:
Current Assets:
Cash and cash equivalents
$
1,820,106
$
1,527,791
Accounts receivable, less allowance for
credit loss of $7,285 at September 30, 2021 and $5,579 at December
31, 2020
3,330,398
1,998,055
Deferred contract costs
841,689
327,448
Other
119,346
110,250
Total current assets
6,111,539
3,963,544
Property and equipment, less accumulated
depreciation and amortization of $533,450 at September 30, 2021 and
$516,988 at
December 31, 2020
491,577
506,425
Operating lease right-of-use assets
448,228
432,723
Goodwill
7,927
7,927
Other assets, net
17,112
16,884
Total assets
$
7,076,383
$
4,927,503
Liabilities:
Current Liabilities:
Accounts payable
$
1,806,977
$
1,136,859
Accrued liabilities, primarily salaries
and related costs
342,151
257,021
Contract liabilities
977,660
379,722
Current portion of operating lease
liabilities
81,362
74,004
Federal, state and foreign income
taxes
67,332
45,437
Total current liabilities
3,275,482
1,893,043
Noncurrent portion of operating lease
liabilities
374,658
364,185
Deferred federal and state income taxes,
net
5,651
7,048
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued
—
—
Common stock, par value $0.01 per share.
Issued and outstanding: 169,392 shares at September 30, 2021 and
169,294 shares at December 31, 2020
1,694
1,693
Additional paid-in capital
74,925
157,496
Retained earnings
3,463,539
2,600,201
Accumulated other comprehensive loss
(122,800
)
(99,753
)
Total shareholders’ equity
3,417,358
2,659,637
Noncontrolling interest
3,234
3,590
Total equity
3,420,592
2,663,227
Total liabilities and equity
$
7,076,383
$
4,927,503
EXPEDITORS INTERNATIONAL OF
WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements
of Earnings
(In thousands, except per share
data)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2021
2020
2021
2020
Revenues:
Airfreight services
$
1,628,115
$
983,199
$
4,477,599
$
2,908,451
Ocean freight and ocean services
1,598,597
609,816
3,651,059
1,590,541
Customs brokerage and other services
1,092,549
755,698
2,998,516
2,104,566
Total revenues
4,319,261
2,348,713
11,127,174
6,603,558
Operating Expenses:
Airfreight services
1,244,381
723,340
3,335,253
2,122,205
Ocean freight and ocean services
1,254,334
452,028
2,859,020
1,177,696
Customs brokerage and other services
686,775
438,966
1,837,134
1,204,551
Salaries and related
519,611
373,613
1,452,902
1,110,760
Rent and occupancy
46,730
42,484
137,376
126,383
Depreciation and amortization
12,753
15,851
38,415
42,620
Selling and promotion
4,237
2,945
10,479
14,301
Other
60,803
47,541
170,798
146,416
Total operating expenses
3,829,624
2,096,768
9,841,377
5,944,932
Operating income
489,637
251,945
1,285,797
658,626
Other Income (Expense):
Interest income
2,462
1,504
6,596
8,870
Other, net
733
980
6,382
5,161
Other income, net
3,195
2,484
12,978
14,031
Earnings before income taxes
492,832
254,429
1,298,775
672,657
Income tax expense
132,922
62,710
333,941
173,968
Net earnings
359,910
191,719
964,834
498,689
Less net earnings attributable to the
noncontrolling interest
842
412
2,174
1,169
Net earnings attributable to
shareholders
$
359,068
$
191,307
$
962,660
$
497,520
Diluted earnings attributable to
shareholders per share
$
2.09
$
1.12
$
5.61
$
2.92
Basic earnings attributable to
shareholders per share
$
2.12
$
1.14
$
5.68
$
2.96
Weighted average diluted shares
outstanding
171,565
170,735
171,549
170,539
Weighted average basic shares
outstanding
169,633
168,310
169,398
167,942
EXPEDITORS INTERNATIONAL OF
WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements
of Cash Flows
(In thousands)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2021
2020
2021
2020
Operating Activities:
Net earnings
$
359,910
$
191,719
$
964,834
$
498,689
Adjustments to reconcile net earnings to
net cash from operating activities:
Provisions for losses on accounts
receivable
3,739
398
6,028
4,607
Deferred income tax (benefit) expense
(7,658
)
(1,276
)
2,343
2,872
Stock compensation expense
15,204
12,297
57,298
45,091
Depreciation and amortization
12,753
15,851
38,415
42,620
Other, net
626
2,919
1,523
3,470
Changes in operating assets and
liabilities:
Increase in accounts receivable
(714,300
)
(106,065
)
(1,377,997
)
(274,440
)
Increase in accounts payable and accrued
liabilities
436,343
94,232
769,525
201,929
Increase in deferred contract costs
(328,932
)
(81,486
)
(550,572
)
(99,887
)
Increase in contract liabilities
381,192
91,638
635,286
112,244
Increase (decrease) in income taxes
payable, net
33,378
(41,286
)
32,022
(10,644
)
Increase in other, net
(14,884
)
(17,373
)
(15,208
)
(13,242
)
Net cash from operating activities
177,371
161,568
563,497
513,309
Investing Activities:
Purchase of property and equipment
(9,870
)
(9,178
)
(24,800
)
(37,419
)
Other, net
(157
)
1,174
(53
)
963
Net cash from investing activities
(10,027
)
(8,004
)
(24,853
)
(36,456
)
Financing Activities:
Proceeds from borrowing on lines of
credit, net
7,479
31
7,568
11
Proceeds from issuance of common stock
56,965
121,430
99,433
174,016
Repurchases of common stock
(76,595
)
—
(225,064
)
(314,225
)
Dividends paid
—
—
(98,387
)
(86,815
)
Payments for taxes related to net share
settlement of equity awards
(4
)
—
(15,172
)
(10,566
)
Distribution to noncontrolling
interest
(1,631
)
—
(1,631
)
—
Net cash from financing activities
(13,786
)
121,461
(233,253
)
(237,579
)
Effect of exchange rate changes on cash
and cash equivalents
(7,573
)
10,030
(13,076
)
(4,255
)
Change in cash and cash equivalents
145,985
285,055
292,315
235,019
Cash and cash equivalents at beginning of
period
1,674,121
1,180,455
1,527,791
1,230,491
Cash and cash equivalents at end of
period
$
1,820,106
$
1,465,510
$
1,820,106
$
1,465,510
Taxes Paid:
Income taxes
$
104,617
$
106,434
$
295,153
$
180,242
EXPEDITORS INTERNATIONAL OF
WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands)
(Unaudited)
UNITED
STATES
OTHER
NORTH
AMERICA
LATIN
AMERICA
NORTH
ASIA
SOUTH
ASIA
EUROPE
MIDDLE
EAST,
AFRICA
AND
INDIA
ELIMI-
NATIONS
CONSOLI-
DATED
For the three months ended September
30, 2021:
Revenues
$
1,134,096
116,404
54,303
1,690,381
538,780
564,810
221,777
(1,290
)
4,319,261
Directly related cost of transportation
and other expenses1
$
661,515
63,031
34,216
1,417,283
445,970
389,208
174,733
(466
)
3,185,490
Salaries and other operating expenses2
$
238,943
33,077
14,759
141,109
54,003
126,475
36,598
(830
)
644,134
Operating income
$
233,638
20,296
5,328
131,989
38,807
49,127
10,446
6
489,637
Identifiable assets at period end
$
3,417,496
256,638
110,406
1,558,109
457,615
990,123
328,671
(42,675
)
7,076,383
Capital expenditures
$
6,001
248
175
435
351
2,254
406
—
9,870
Equity
$
2,451,584
93,084
37,087
368,535
129,941
258,805
123,304
(41,748
)
3,420,592
For the three months ended September
30, 2020:
Revenues3
$
686,243
77,414
39,193
795,155
259,069
359,107
133,447
(915
)
2,348,713
Directly related cost of transportation
and other expenses1,3
$
379,586
44,196
23,361
632,858
192,175
242,384
100,301
(527
)
1,614,334
Salaries and other operating expenses2
$
197,749
25,325
12,359
81,876
39,926
96,658
28,925
(384
)
482,434
Operating income
$
108,908
7,893
3,473
80,421
26,968
20,065
4,221
(4
)
251,945
Identifiable assets at period end
$
2,336,071
163,943
76,173
689,525
231,771
642,124
228,423
(9,476
)
4,358,554
Capital expenditures
$
4,703
483
180
1,075
665
1,780
292
—
9,178
Equity
$
1,791,658
77,915
31,324
246,557
97,564
185,352
110,714
(36,611
)
2,504,473
UNITED
STATES
OTHER
NORTH
AMERICA
LATIN
AMERICA
NORTH
ASIA
SOUTH
ASIA
EUROPE
MIDDLE
EAST,
AFRICA
AND
INDIA
ELIMI-
NATIONS
CONSOLI-
DATED
For the nine months ended September 30,
2021:
Revenues3
$
3,007,053
311,986
146,148
4,208,811
1,306,264
1,576,092
574,469
(3,649
)
11,127,174
Directly related cost of transportation
and other expenses1,3
$
1,731,032
175,392
86,868
3,471,453
1,051,133
1,072,973
444,132
(1,576
)
8,031,407
Salaries and other operating expenses2
$
718,762
90,114
41,871
354,841
146,214
359,338
100,899
(2,069
)
1,809,970
Operating income
$
557,259
46,480
17,409
382,517
108,917
143,781
29,438
(4
)
1,285,797
Identifiable assets at period end
$
3,417,496
256,638
110,406
1,558,109
457,615
990,123
328,671
(42,675
)
7,076,383
Capital expenditures
$
11,931
434
300
1,192
1,462
7,908
1,573
—
24,800
Equity
$
2,451,584
93,084
37,087
368,535
129,941
258,805
123,304
(41,748
)
3,420,592
For the nine months ended September 30,
2020:
Revenues3
$
1,975,874
232,324
114,637
2,277,027
642,302
1,024,127
340,000
(2,733
)
6,603,558
Directly related cost of transportation
and other expenses1,3
$
1,108,164
130,300
69,828
1,792,933
463,690
692,872
248,088
(1,423
)
4,504,452
Salaries and other operating expenses2
$
631,396
74,320
36,220
236,480
109,018
274,269
80,063
(1,286
)
1,440,480
Operating income
$
236,314
27,704
8,589
247,614
69,594
56,986
11,849
(24
)
658,626
Identifiable assets at period end
$
2,336,071
163,943
76,173
689,525
231,771
642,124
228,423
(9,476
)
4,358,554
Capital expenditures
$
28,276
1,692
498
1,785
1,035
3,418
715
—
37,419
Equity
$
1,791,658
77,915
31,324
246,557
97,564
185,352
110,714
(36,611
)
2,504,473
1Directly related cost of transportation
and other expenses totals Operating Expenses from Airfreight
services, Ocean freight and ocean services and Customs brokerage
and other services as shown in the Condensed Consolidated
Statements of Earnings.
2Salaries and other operating expenses
totals Salaries and related, Rent and occupancy, Depreciation and
amortization, Selling and promotion and Other as shown in the
Condensed Consolidated Statements of Earnings.
3Beginning in the first quarter of 2019,
the Company made changes to its process and presentation of freight
services revenue and directly related transportation operating
expenses with the objective that at each reporting level (reporting
entity, segment and consolidated level) the gross revenue and
associated directly related operating expenses be representative of
the location where the services were performed, the operating
expenses were incurred and where the revenues were earned. During
the second quarter of 2021, management identified and corrected
certain immaterial errors in the Company’s historical financial
statements primarily related to this process that was utilized
through the first quarter of 2021. The process missed an
intercompany elimination of revenues and an equal and offsetting
amount of directly related transportation expenses, principally
impacting airfreight services in North Asia. The errors overstated
revenues and directly related transportation operating expenses by
equal amounts in the consolidated statements of earnings. The
errors had no impact on operating income, net earnings, and
earnings per share nor any other financial statement amount.
Further, the errors had no impact on the balance sheets, statements
of shareholders’ equity, other comprehensive income and cash flows.
Historical amounts for business segment information have been
revised and are presented on a comparable basis.
The Company’s consolidated financial
results in the three and nine months ended September 30, 2021 and
2020 were each significantly impacted by the effects of the global
pandemic in divergent ways. In all quarters of 2021, the Company
experienced strong volumes and high average sell and buy rates as a
result of imbalances between demand and carrier capacity and
continuing effects of disruptions in supply chains originating in
measures to combat the pandemic in 2020.
This is in contrast with slower activity
in North Asia in the first quarter of 2020 as the pandemic resulted
in temporary closures and limited operations in the Company’s China
offices. Shipments were also rerouted or delayed by customers and
service providers as they were taking their own precautionary
measures. This was followed by significant increases in airfreight
services revenues and related expenses, in the second and third
quarters of 2020, as a result of demand for time-sensitive delivery
of technology equipment and medical equipment and supplies from
China, which combined with reductions in airfreight supply resulted
in significantly higher average buy and sell rates.
These impacts are affecting all of the
Company’s geographical segments and most notably the year-over-year
comparability of the North Asia segment. For the three months ended
September 30, 2021 and 2020, the People's Republic of China,
including Hong Kong, represented 32% and 27%, respectively, of the
Company’s total revenues and 21% and 26%, respectively, of the
total operating income. For the nine months ended September 30,
2021 and 2020, the People's Republic of China, including Hong Kong,
represented 30% and 28%, respectively, of the Company’s total
revenues and 23% and 30%, respectively, of the total operating
income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211102005337/en/
Jeffrey S. Musser President and Chief Executive Officer (206)
674-3433
Bradley S. Powell Senior Vice President and Chief Financial
Officer (206) 674-3412
Geoffrey Buscher Director - Investor Relations (206)
892-4510
Expeditors International... (NASDAQ:EXPD)
過去 株価チャート
から 6 2024 まで 7 2024
Expeditors International... (NASDAQ:EXPD)
過去 株価チャート
から 7 2023 まで 7 2024