Exhibit 99.1

 

Contact:

Jeff Misakian

Global Vice President, Investor Relations

(562) 552-9417

jmisakian@go2uti.com

UTi WORLDWIDE REPORTS FISCAL 2013

SECOND QUARTER RESULTS

Long Beach, Calif., September 6, 2012 – UTi Worldwide Inc. (NASDAQ: UTIW) today reported financial results for its fiscal 2013 second quarter ended July 31, 2012.

Fiscal Second Quarter 2013 vs. 2012 Results:

 

•

Revenues were $1,155.8 million, a decrease of 10.9 percent from $1,297.4 million.

 

•

Net revenues (revenues minus purchased transportation costs) were $406.1 million, a decrease of 8.4 percent from $443.4 million.

 

•

Net income attributable to UTi Worldwide Inc. was $18.9 million, or $0.18 per diluted share, compared to $22.9 million, or $0.22 per diluted share.

 

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After-tax severance costs were $1.4 million, compared to $2.4 million.

 

•

Excluding severance costs, adjusted net income attributable to UTi Worldwide Inc. was $20.3 million, or $0.20 per diluted share, compared to $25.3 million, or $0.24 per diluted share.

 

•

The impact from currency translation reduced net income by approximately $0.03 per diluted share, compared to the fiscal 2012 second quarter.

 

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All references to adjusted items and organic items in this release refer to non-GAAP results. A reconciliation of GAAP to these non-GAAP results is provided in the supplemental financial information attached to this release.

Eric W. Kirchner, chief executive officer, said, “The anemic global economy and weak freight environment continued to weigh on results in our fiscal 2013 second quarter, which together with currency translation led to a 10.9 percent decline in revenues. Trends apparent throughout the industry in the first quarter continued into the second, with companies still favoring ocean freight over airfreight and lower weight per shipment. In addition, clients have become increasingly careful in their freight and logistics spending. Airfreight was once again impacted more than other modes, with tonnage falling 11 percent compared to the second quarter last year. Transportation rates in ocean freight have risen significantly this year, putting pressure on yields and net revenue per unit. Contract logistics and distribution was stable in the second quarter. Revenues in the segment were lower than the same period last year primarily due to currency effects, while operating income improved.”

 

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Kirchner continued, “Our transformation is expected to deliver long-term operating margin expansion, which will position the company well when the economic and freight environment improves. While we are optimistic on the long-term outlook, we see little to suggest that the trends that impacted results in the first half of fiscal 2013 will change in the second half of the year. While we don’t control external factors, we do remain vigilant in controlling costs and driving increased sales. The deployment of our new financial and freight forwarding operating system continues, and we remain on track to achieve our long-term operating margin goals.”

Revenues decreased 10.9 percent in the fiscal 2013 second quarter compared to the prior-year second quarter, primarily due to the impact of currency, lower pricing and weaker airfreight tonnage. These negative factors were partially offset by increased contract logistics and distribution activity in the Africa and Asia-Pacific regions. Net revenues fell 8.4 percent in the fiscal 2013 second quarter, primarily due to currency translation and lower airfreight volumes. On an organic basis, revenues decreased 3.3 percent, while net revenues increased 0.7 percent in the fiscal 2013 second quarter compared to the same period last year.

Operating expenses less purchased transportation costs were $373.0 million in the second quarter of fiscal 2013, compared to $403.7 million in the same period last year. Severance costs (before taxes) totaled $2.1 million in the fiscal 2013 second quarter, compared to $3.5 million in the second quarter of last year. Severance costs in both periods were primarily related to the company’s transformation activities.

Excluding severance costs from both periods, adjusted operating expenses less purchased transportation costs were $370.9 million in the fiscal 2013 second quarter, a decrease of 7.3 percent from $400.2 million in the same period last year, primarily due to currency effects. On an organic basis, adjusted operating expenses less purchased transportation costs increased 1.7 percent, compared to the same period last year.

Operating income in the fiscal 2013 second quarter was $33.0 million. Excluding the severance costs described above, adjusted operating income was $35.2 million, or 8.7 percent of net revenues. This compares to adjusted operating income in the year-ago second quarter of $43.2 million, or 9.7 percent of net revenues.

Investor Conference Call:

UTi management will host an investor conference call today, September 6, 2012, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company’s financial results for the fiscal 2013 second quarter. Investment professionals are invited to participate in the live call by dialing 877-941-8609 (domestic) or 480-629-9692 (international) using conference ID 4559506. The call will be open to all interested

 

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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 September 9, 2012, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4559506.

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 included information in this press release relating to organic revenue and organic net revenue growth, which are adjusted to exclude the impact of currency fluctuations between comparable periods. The company also has referred to operating expenses less purchased transportation costs, and to adjusted operating expenses less purchased transportation costs, which are operating expenses less purchased transportation costs that are further adjusted to exclude severance costs. The company has also included information relating to organic adjusted operating expenses less purchased transportation costs, which are adjusted operating expenses less purchased transportation costs that are further adjusted to exclude the impact of currency fluctuations between comparable periods. The company has further referred to adjusted operating income and adjusted net income, each of which is adjusted to exclude severance costs as described above. 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.

 

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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, statements about the continuation of adverse trends for the remainder of fiscal 2013, the long-term outlook for the company and the industry, the company’s ability to control costs and increase sales in the near term, the ability of the company’s transformation to deliver long-term operating margin expansion and position the company well when the economic and freight environment improves, the status and timing of the company’s freight forwarding operating and finance systems, the company’s progress in achieving its long-term operating margin goals, and any 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: volatility with respect to global trade; global economic, political and market conditions, including those in Africa, Asia and EMENA; risks associated with the company’s business transformation initiative; volatile fuel costs; transportation capacity, pricing dynamics and the ability of the company to secure space on third party aircraft, ocean vessels and other modes of transportation; changes in foreign exchange rates; material interruptions in transportation services; risks of international operations; risks associated with, and the potential for penalties, fines, costs and expenses the company may incur as a result of the ongoing publicly announced governmental investigations into the international air freight and air cargo transportation industry and other related investigations and lawsuits; the financial condition of the company’s customers; 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/A for the fiscal year ended January 31, 2012, any subsequently filed Quarterly Reports on Form 10-Q and as described in the company’s other filings with the Securities and Exchange Commission. 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 in the timeframe anticipated or at all. 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)

 

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UTi Worldwide Inc.

Condensed Consolidated Statements of Income

(in thousands, except share and per share amounts)

 

		Three months ended July 31,								Six months ended July 31,
		2012				2011				2012				2011
Revenues:		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Airfreight forwarding		$	370,394			$	465,672			$	751,534			$	904,701
Ocean freight forwarding			304,899				320,696				589,606				602,274
Customs brokerage			30,414				33,082				58,680				63,335
Contract logistics			203,818				212,845				405,471				411,824
Distribution			146,514				139,741				295,402				269,094
Other			99,749				125,322				203,378				244,835
Total revenues			1,155,788				1,297,358				2,304,071				2,496,063
Operating expenses:
Purchased transportation costs:
Airfreight forwarding			286,684				365,880				588,506				716,057
Ocean freight forwarding			253,210				266,618				487,715				500,853
Customs brokerage			1,336				1,206				2,779				2,760
Contract logistics			54,370				53,055				104,353				98,208
Distribution			102,225				95,391				199,232				183,250
Other			51,892				71,812				109,648				140,962
Staff costs			225,330				243,135				456,518				476,480
Depreciation			11,229				11,792				22,725				24,233
Amortization of intangible assets			3,160				4,773				6,402				8,228
Severance and other			2,124				3,483				3,824				8,332
Other operating expenses			131,198				140,472				265,799				278,166
Total operating expenses			1,122,758				1,257,617				2,247,501				2,437,529
Operating income			33,030				39,741				56,570				58,534
Interest expense, net			(2,494	)			(3,867	)			(5,302	)			(8,091	)
Other (expense)/income, net			(272	)			223				(300	)			399
Pretax income			30,264				36,097				50,968				50,842
Provision for income taxes			10,047				11,259				16,521				15,494
Net income			20,217				24,838				34,447				35,348
Net income attributable to noncontrolling interests			1,334				1,965				2,678				3,732
Net income attributable to UTi Worldwide Inc.		$	18,883			$	22,873			$	31,769			$	31,616
Basic earnings per common share attributable to UTi Worldwide Inc. common shareholders		$	0.18			$	0.22			$	0.31			$	0.31
Diluted earnings per common share attributable to UTi Worldwide Inc. common shareholders		$	0.18			$	0.22			$	0.31			$	0.31
Number of weighted-average common shares outstanding used for per share calculations
Basic shares			103,609,889				102,660,019				103,323,012				102,389,521
Diluted shares			103,893,040				103,580,890				103,920,826				103,462,353

 

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UTi Worldwide Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

		July 31, 2012				January 31, 2012
		(Unaudited)				(Unaudited)
ASSETS
Cash and cash equivalents		$	262,761			$	321,761
Trade receivables, net			941,052				947,480
Deferred income taxes			18,033				20,372
Other current assets			151,220				132,545
Total current assets			1,373,066				1,422,158
Property, plant and equipment, net			233,720				216,299
Goodwill and other intangible assets, net			537,081				534,237
Investments			963				1,108
Deferred income taxes			37,468				43,272
Other non-current assets			38,127				38,575
Total assets		$	2,220,425			$	2,255,649
LIABILITIES & EQUITY
Bank lines of credit		$	102,713			$	76,240
Short-term borrowings			967				1,019
Current portion of long-term borrowings			24,049				21,775
Current portion of capital lease obligations			11,852				13,768
Trade payables and other accrued liabilities			792,602				859,086
Income taxes payable			8,041				12,657
Deferred income taxes			4,722				1,927
Total current liabilities			944,946				986,472
Long-term borrowings, excluding current portion			238,854				231,204
Capital lease obligations, excluding current portion			14,736				15,845
Deferred income taxes			25,469				31,845
Other non-current liabilities			38,593				38,775
Commitments and contingencies
UTi Worldwide Inc. shareholders’ equity:
Common stock			497,398				491,073
Retained earnings			529,221				503,675
Accumulated other comprehensive loss			(80,907	)			(55,983	)
Total UTi Worldwide Inc. shareholders’ equity			945,712				938,765
Non-controlling interests			12,115				12,743
Total equity			957,827				951,508
Total liabilities and equity		$	2,220,425			$	2,255,649

 

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UTi Worldwide Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

		Six months ended July 31,
		2012				2011
		(Unaudited)
OPERATING ACTIVITIES:
Net income		$	34,447			$	35,348
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation costs			7,050				7,368
Depreciation			22,725				24,233
Amortization of intangible assets			6,402				8,228
Amortization of debt issuance costs			658				1,531
Deferred income taxes			3,274				1,650
Uncertain tax positions			(250	)			337
Excess tax benefits from share-based compensation			(132	)			(483	)
Loss/(gain) on disposal of property, plant and equipment			37				(220	)
Provision for doubtful accounts			449				2,736
Other			1,146				1,022
Net changes in operating assets and liabilities			(90,180	)			(87,748	)
Net cash used in operating activities			(14,374	)			(5,998	)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment, excluding software			(19,561	)			(26,768	)
Proceeds from disposal of property, plant and equipment			2,332				2,685
Purchases of software and other intangible assets			(15,576	)			(15,085	)
Net increase in other non-current assets			(1,016	)			(4,786	)
Other			116				(26	)
Net cash used in investing activities			(33,705	)			(43,980	)
FINANCING ACTIVITIES:
Net borrowings/(repayments) under bank lines of credit			29,677				(72,520	)
Net decrease in short-term borrowings			—				(2,333	)
Proceeds from issuance of long-term borrowings			1,986				150,213
Repayment of long-term borrowings			(11,045	)			(34,595	)
Debt issuance costs			(1,098	)			(2,153	)
Repayment of capital lease obligations			(9,759	)			(10,099	)
Acquisition of non-controlling interests			—				(1,168	)
Distribution to non-controlling interests and other			(2,433	)			(183	)
Ordinary shares settled under share-based compensation plans			(2,450	)			(1,800	)
Proceeds from issuance of ordinary shares			1,592				1,675
Excess tax benefit from share-based compensation			132				483
Dividends paid			(6,223	)			(6,165	)
Net cash provided by financing activities			379				21,355
Effect of foreign exchange rate changes on cash and cash equivalents			(11,300	)			17,606
Net decrease in cash and cash equivalents			(59,000	)			(11,017	)
Cash and cash equivalents at beginning of period			321,761				326,795
Cash and cash equivalents at end of period		$	262,761			$	315,778

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Three months ended July 31, 2012
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	770,233			$	385,555			$	—			$	1,155,788
Purchased transportation costs			583,504				166,213				—				749,717
Staff costs			107,602				108,863				8,865				225,330
Depreciation			4,043				6,647				539				11,229
Amortization of intangible assets			1,017				1,603				540				3,160
Severance and other			1,509				283				332				2,124
Other operating expenses			44,421				82,292				4,485				131,198
Total operating expenses			742,096				365,901				14,761				1,122,758
Operating income/(loss)		$	28,137			$	19,654			$	(14,761	)			33,030
Interest expense, net															(2,494	)
Other expense, net															(272	)
Pretax income															30,264
Provision for income taxes															10,047
Net income															20,217
Net income attributable to non-controlling interests															1,334
Net income attributable to UTi Worldwide Inc.														$	18,883

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Three months ended July 31, 2011
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	901,752			$	395,606			$	—			$	1,297,358
Purchased transportation costs			694,662				159,300				—				853,962
Staff costs			114,600				122,237				6,298				243,135
Depreciation			4,440				6,652				700				11,792
Amortization of intangible assets			1,125				2,958				690				4,773
Severance and other			2,124				612				747				3,483
Other operating expenses			50,986				85,066				4,420				140,472
Total operating expenses			867,937				376,825				12,855				1,257,617
Operating income/(loss)		$	33,815			$	18,781			$	(12,855	)			39,741
Interest expense, net															(3,867	)
Other income, net															223
Pretax income															36,097
Provision for income taxes															11,259
Net income															24,838
Net income attributable to non-controlling interests															1,965
Net income attributable to UTi Worldwide Inc.														$	22,873

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Six months ended July 31, 2012
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	1,531,781			$	772,290			$	—			$	2,304,071
Purchased transportation costs			1,168,738				323,495				—				1,492,233
Staff costs			214,034				224,692				17,792				456,518
Depreciation			8,250				13,400				1,075				22,725
Amortization of intangible assets			2,071				3,251				1,080				6,402
Severance and other			2,176				1,109				539				3,824
Other operating expenses			91,025				166,035				8,739				265,799
Total operating expenses			1,486,294				731,982				29,225				2,247,501
Operating income/(loss)		$	45,487			$	40,308			$	(29,225	)			56,570
Interest expense, net															(5,302	)
Other expense, net															(300	)
Pretax income															50,968
Provision for income taxes															16,521
Net income															34,447
Net income attributable to non-controlling interests															2,678
Net income attributable to UTi Worldwide Inc.														$	31,769

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Six months ended July 31, 2011
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	1,731,505			$	764,558			$	—			$	2,496,063
Purchased transportation costs			1,339,912				302,178				—				1,642,090
Staff costs			224,267				238,950				13,263				476,480
Depreciation			8,828				14,046				1,359				24,233
Amortization of intangible assets			2,211				4,677				1,340				8,228
Severance and other			4,097				3,488				747				8,332
Other operating expenses			99,650				168,822				9,694				278,166
Total operating expenses			1,678,965				732,161				26,403				2,437,529
Operating income/(loss)		$	52,540			$	32,397			$	(26,403	)			58,534
Interest expense, net															(8,091	)
Other income, net															399
Pretax income															50,842
Provision for income taxes															15,494
Net income															35,348
Net income attributable to non-controlling interests															3,732
Net income attributable to UTi Worldwide Inc.														$	31,616

 

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UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)

 

		Three months ended July 31, 2012
		Freight Forwarding Revenue				Contract Logistics and Distribution Revenue				Freight Forwarding Net Revenue				Contract Logistics and Distribution Net Revenue				Operating Income/(Loss)				Severance and Other
EMENA		$	236,506			$	60,048			$	61,021			$	33,524			$	2,470			$	1,199
Americas			195,208				205,008				48,648				90,263				9,809				499
Asia Pacific			224,247				18,533				49,197				12,008				13,353				50
Africa			114,272				101,966				27,863				83,547				22,159				44
Corporate			—				—				—				—				(14,761	)			332
Total		$	770,233			$	385,555			$	186,729			$	219,342			$	33,030			$	2,124
		Three months ended July 31, 2011
		Freight Forwarding Revenue				Contract Logistics and Distribution Revenue				Freight Forwarding Net Revenue				Contract Logistics and Distribution Net Revenue				Operating Income/(loss)				Severance and Other
EMENA		$	278,059			$	58,595			$	70,098			$	38,810			$	2,726			$	2,189
Americas			203,413				217,147				50,778				101,979				11,950				299
Asia Pacific			290,524				16,544				57,517				10,062				18,900				248
Africa			129,756				103,320				28,697				85,455				19,020				—
Corporate			—				—				—				—				(12,855	)			747
Total		$	901,752			$	395,606			$	207,090			$	236,306			$	39,741			$	3,483

 

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UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)

 

		Six months ended July 31, 2012
		Freight Forwarding Revenue				Contract Logistics and Distribution Revenue				Freight Forwarding Net Revenue				Contract Logistics and Distribution Net Revenue				Operating Income/(Loss)				Severance and Other
EMENA		$	480,851			$	123,036			$	119,185			$	71,677			$	1,930			$	2,229
Americas			381,873				401,731				95,031				178,874				16,269				924
Asia Pacific			437,111				35,508				95,736				23,154				24,158				75
Africa			231,946				212,015				53,091				175,090				43,438				57
Corporate			—				—				—				—				(29,225	)			539
Total		$	1,531,781			$	772,290			$	363,043			$	448,795			$	56,570			$	3,824
		Six months ended July 31, 2011
		Freight Forwarding Revenue				Contract Logistics and Distribution Revenue				Freight Forwarding Net Revenue				Contract Logistics and Distribution Net Revenue				Operating (Loss)/Income				Severance and Other
EMENA		$	551,890			$	115,066			$	135,068			$	76,835			$	(845	)		$	5,987
Americas			379,470				419,872				96,387				201,352				15,676				1,350
Asia Pacific			548,112				29,590				105,688				18,912				32,704				248
Africa			252,033				200,030				54,450				165,281				37,402				—
Corporate			—				—				—				—				(26,403	)			747
Total		$	1,731,505			$	764,558			$	391,593			$	462,380			$	58,534			$	8,332

 

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UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)

 

		Three months ended July 31, 2012				Three months ended July 31, 2011
GAAP Revenues		$	1,155,788			$	1,297,358
Less: Purchased transportation costs			(749,717	)			(853,962	)
Net Revenues		$	406,071			$	443,396
GAAP Operating expenses		$	1,122,758			$	1,257,617
Less: Purchased transportation costs			(749,717	)			(853,962	)
Operating expenses less purchased transportation costs			373,041				403,655
Severance and other (1)(2)			(2,124	)			(3,483	)
Non-GAAP Operating expenses		$	370,917			$	400,172
GAAP Operating income		$	33,030			$	39,741
Severance and other (1)(2)			2,124				3,483
Non-GAAP Operating income		$	35,154			$	43,224
Percent of Net Revenues			8.7	%			9.7	%
GAAP Pretax income		$	30,264			$	36,097
Severance and other (1)(2)			2,124				3,483
Non-GAAP Pretax income		$	32,388			$	39,580
GAAP Provision for income taxes		$	10,047			$	11,259
Severance and other (1)(2)			705				1,086
Non-GAAP Provision for income taxes		$	10,752			$	12,345
GAAP Net income attributable UTi Worldwide Inc.		$	18,883			$	22,873
Adjustment for:
Severance and other (1)(2)			2,124				3,483
Income tax severance and other (3)			(705	)			(1,086	)
Non-GAAP Net income attributable UTi Worldwide Inc.		$	20,302			$	25,270
GAAP Diluted earnings per common share		$	0.18			$	0.22
Adjustment for:
Severance and other (1)(2)			0.03				0.03
Income tax severance and other (3)			(0.01	)			(0.01	)
Non-GAAP Diluted earnings per common share		$	0.20			$	0.24

 

(1)	During the three months ended July 31, 2012, the company recorded pre-tax severance of $2,124 primarily related to transformation activities.

(2)	During the three months ended July 31, 2011, the company recorded pre-tax severance of $3,483 primarily related to transformation activities.

(3)	The provisions for income tax adjustment related to the severance costs were calculated based on the prevailing tax rate in each jurisdiction.

 

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UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)

 

		Six months ended July 31, 2012				Six months ended July 31, 2011
GAAP Revenues		$	2,304,071			$	2,496,063
Less: Purchased transportation costs			(1,492,233	)			(1,642,090	)
Net Revenues		$	811,838			$	853,973
GAAP Operating expenses		$	2,247,501			$	2,437,529
Less: Purchased transportation costs			(1,492,233	)			(1,642,090	)
Operating expenses less purchased transportation costs			755,268				795,439
Severance and other (4)(5)			(3,824	)			(8,332	)
Non-GAAP Operating expenses		$	751,444			$	787,107
GAAP Operating income		$	56,570			$	58,534
Severance and other (4)(5)			3,824				8,332
Non-GAAP Operating income		$	60,394			$	66,866
Percent of Net Revenues			7.4	%			7.8	%
GAAP Pretax income		$	50,968			$	50,842
Severance and other (4)(5)			3,824				8,332
Non-GAAP Pretax income		$	54,792			$	59,174
GAAP Provision for income taxes		$	16,521			$	15,494
Severance and other (4)(5)			1,240				2,539
Non-GAAP Provision for income taxes		$	17,761			$	18,033
GAAP Net income attributable UTi Worldwide Inc.		$	31,769			$	31,616
Adjustment for:
Severance and other (4)(5)			3,824				8,332
Income tax severance and other (6)			(1,240	)			(2,539	)
Non-GAAP Net income attributable UTi Worldwide Inc.		$	34,353			$	37,409
GAAP Diluted earnings per common share		$	0.31			$	0.31
Adjustment for:
Severance and other (4)(5)			0.03				0.07
Income tax severance and other (6)			(0.01	)			(0.02	)
Non-GAAP Diluted earnings per common share		$	0.33			$	0.36

 

(4)	During the six months ended July 31, 2012, the company recorded pre-tax severance of $3,824 primarily related to transformation activities.

(5)

During the six months ended July 31, 2011, the company recorded pre-tax severance and other charges totaling $8,332, which were comprised of $6,418 in severance costs related to transformation activities and $1,914 in severance and facility exit costs associated with the closure of certain underutilized contract logistics facilities in Europe.

(6)	The provisions for income tax adjustment related to the severance costs were calculated based on the prevailing tax rate in each jurisdiction.

 

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UTi Worldwide Inc.

Organic Growth Reconciliation

(Unaudited)

Set forth below is a reconciliation of the company’s organic growth rates and the growth rates based on the company’s GAAP reported results in the company’s revenues, net revenues and operating expenses less purchased transportation costs for the three months ended July 31, 2012. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation.

Three months ended July 31, 2012:

 

		Total Net Change				+/(-) Currency Impact				Organic Growth				+/(-) Non-GAAP Items (7)(8)				Adjusted Organic Growth
Revenues			(11	)%			8	%			(3	)%			—	%			(3	)%
Net revenues			(8	)%			9	%			1	%			—	%			1	%
Operating expenses less purchased transportation costs			(8	)%			9	%			1	%			1	%			2	%

 

(7)	During the three months ended July 31, 2012, the company recorded pre-tax severance of $2,124 primarily related to transformation activities.

(8)	During the three months ended July 31, 2011, the company recorded pre-tax severance of $3,483 primarily related to transformation activities.

 

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UTi Worldwide Inc.

Organic Growth Reconciliation

(Unaudited)

Set forth below is a reconciliation of the company’s organic growth rates and the growth rates based on the company’s GAAP reported results in the company’s revenues, net revenues and operating expenses less purchased transportation costs for the six months ended July 31, 2012. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation.

Six months ended July 31, 2012:

 

		Total Net Change				+/(-) Currency Impact				Organic Growth				+/(-) Non-GAAP Items (9)(10)				Adjusted Organic Growth
Revenues			(8	)%			6	%			(2	)%			—	%			(2	)%
Net revenues			(5	)%			7	%			2	%			—	%			2	%
Operating expenses less purchased transportation costs			(5	)%			7	%			2	%			—	%			2	%

 

(9)	During the six months ended July 31, 2012, the company recorded pre-tax severance of $3,824 primarily related to transformation activities.

(10)

During the six months ended July 31, 2011, the company recorded pre-tax severance and other charges totaling $8,332, which were comprised of $6,418 in severance costs related to transformation activities and $1,914 in severance and facility exit costs associated with the closure of certain underutilized contract logistics facilities in Europe.

 

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