Exhibit 99.1

 

Contact:

Jeff Misakian

Global Vice President, Investor Relations

(562) 552-9417

jmisakian@go2uti.com

UTi WORLDWIDE REPORTS FISCAL 2013

THIRD QUARTER RESULTS

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

Fiscal Third Quarter 2013 vs. 2012 Results:

 

•

Revenues were $1,128.9 million, a decrease of 10.7 percent from $1,264.5 million.

 

•

Net revenues (revenues minus purchased transportation costs) were $403.6 million, a decrease of 9.0 percent from $443.4 million.

 

•

Net income attributable to UTi Worldwide Inc. was $10.5 million, or $0.10 per diluted share, compared to $28.5 million, or $0.28 per diluted share.

 

•

After-tax severance and legal costs were $5.8 million, compared to $1.1 million.

 

•

Excluding severance and legal costs, adjusted net income attributable to UTi Worldwide Inc. was $16.3 million, or $0.16 per diluted share, compared to $29.7 million, or $0.29 per diluted share.

 

•

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, “Macroeconomic and freight conditions remained weak throughout our fiscal 2013 third quarter, and we see no real catalysts to drive increases in the foreseeable future. Global economies are slowing, consumer demand is weak and clients remain very cautious. As we anticipated, a broad peak season failed to materialize in the third quarter. Airfreight lagged the most, as weight per shipment fell and clients favored lower cost options like ocean freight. Competition remains intense and carriers have attempted to increase shipping rates. This dynamic is pressuring net revenue per unit throughout the industry. Contract logistics activity was lower in the third quarter, primarily in Europe and the Americas, while distribution activity in Africa was higher. We continued to win new business, but at a pace that was insufficient to offset the reductions from existing business in both segments.”

 

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Kirchner continued, “Our operating expenses, which are more closely tied to shipments rather than tonnage or TEU count, did not decrease as much as net revenue. In response to lower volumes, we are taking additional actions to remove approximately $25 million in annualized expenses, some of which we had planned to execute through our transformation in fiscal 2014. Our system rollout is progressing. We have launched our new operating system in five countries and our new financial system in 12 countries. We have plans to deploy both systems in more countries by the end of the fiscal year. We remain focused on achieving our operating ratio targets within fiscal 2015.”

Revenues decreased 10.7 percent in the fiscal 2013 third quarter compared to the same period last year, primarily due to the impact of currency, weaker airfreight tonnage and lower pricing. Net revenues fell 9.0 percent in the fiscal 2013 third quarter, primarily due to currency translation and lower volumes. On an organic basis, revenues decreased 6.5 percent, while net revenues decreased 4.2 percent in the fiscal 2013 third quarter, compared to the same period last year.

Operating expenses less purchased transportation costs were $380.9 million in the third quarter of fiscal 2013, compared to $395.1 million in the same period last year. The company accrued $5.2 million for a recent legal judgment relating to a warehouse fire in 2006. Severance costs (before taxes) totaled $3.9 million in the fiscal 2013 third quarter, compared to $1.7 million in the third quarter of last year. Severance costs in both periods were primarily related to the company’s transformation activities.

Excluding severance and legal costs from both periods, adjusted operating expenses less purchased transportation costs were $371.8 million in the fiscal 2013 third quarter, a decrease of 5.5 percent from $393.4 million in the same period last year, primarily due to currency effects. On an organic basis, adjusted operating expenses less purchased transportation costs decreased 0.6 percent, compared to the same period last year.

Operating income in the fiscal 2013 third quarter was $22.7 million. Excluding severance and other costs described above, adjusted operating income was $31.8 million, or 7.9 percent of net revenues. This compares to adjusted operating income in the fiscal 2012 third quarter of $49.9 million, or 11.3 percent of net revenues. Currency effects reduced operating income in the fiscal 2013 third quarter by $1.9 million. In addition, the negative impact from superstorm Sandy and the transportation strikes in South Africa are estimated at approximately $3.5 million in the third quarter.

Investor Conference Call:

UTi management will host an investor conference call today, December 6, 2012, at 8:00 a.m. PST (11:00 a.m. EST) to review the company’s financial results for the fiscal 2013 third quarter. Investment professionals are invited to participate in the live call by dialing 877-941-0844 (domestic) or 480-629-9835 (international) using conference ID 4577233. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and

 

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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. PST, today, through December 9, 2012, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4577233.

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 changes, 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 and other 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 and other 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 macroeconomic and freight trends for the foreseeable future, the long-term outlook for the company and the industry, the company’s ability to remove approximately $25 million in annualized expenses, the status and timing of the company’s freight forwarding operating and finance systems, including its plans to launch in additional countries by the end of fiscal 2013, the company’s focus on achieving its long-term operating ratio targets within fiscal 2015, 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; risks of adverse legal judgments and other liabilities not limited by contract or covered by insurance; 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 October 31,								Nine months ended October 31,
		2012				2011				2012				2011
		(Unaudited)								(Unaudited)
Revenues:
Airfreight forwarding		$	344,757			$	431,247			$	1,096,291			$	1,335,948
Ocean freight forwarding			295,434				325,499				885,040				927,773
Customs brokerage			29,655				31,579				88,335				94,914
Contract logistics			203,347				217,227				608,818				629,051
Distribution			152,767				146,772				448,169				415,866
Other			102,906				112,212				306,284				357,047
Total revenues			1,128,866				1,264,536				3,432,937				3,760,599
Operating expenses:
Purchased transportation costs:
Airfreight forwarding			265,280				335,369				853,786				1,051,426
Ocean freight forwarding			243,791				271,832				731,506				772,685
Customs brokerage			1,375				1,062				4,154				3,822
Contract logistics			53,445				53,668				157,798				151,876
Distribution			104,833				100,413				304,065				283,663
Other			56,540				58,817				166,188				199,779
Staff costs			219,055				238,868				675,573				715,348
Depreciation			12,254				12,204				34,979				36,437
Amortization of intangible assets			2,974				3,870				9,376				12,098
Severance and other			9,097				1,655				12,921				9,987
Other operating expenses			137,542				138,497				403,341				416,663
Total operating expenses			1,106,186				1,216,255				3,353,687				3,653,784
Operating income			22,680				48,281				79,250				106,815
Interest expense, net			(2,225	)			(3,323	)			(7,527	)			(11,414	)
Other expense, net			(208	)			(677	)			(508	)			(278	)
Pretax income			20,247				44,281				71,215				95,123
Provision for income taxes			7,378				13,971				23,899				29,465
Net income			12,869				30,310				47,316				65,658
Net income attributable to noncontrolling interests			2,321				1,774				4,999				5,506
Net income attributable to UTi Worldwide Inc.		$	10,548			$	28,536			$	42,317			$	60,152
Basic earnings per common share attributable to UTi Worldwide Inc. common shareholders		$	0.10			$	0.28			$	0.41			$	0.59
Diluted earnings per common share attributable to UTi Worldwide Inc. common shareholders		$	0.10			$	0.28			$	0.41			$	0.58
Number of weighted-average common shares outstanding used for per share calculations
Basic shares			103,736,084				102,755,296				103,468,700				102,514,547
Diluted shares			103,953,783				103,410,669				103,947,047				103,460,757

 

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UTi Worldwide Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

		October 31, 2012				January 31, 2012
		(Unaudited)
ASSETS
Cash and cash equivalents		$	226,993			$	321,761
Trade receivables, net			996,221				947,480
Deferred income taxes			19,897				20,372
Other current assets			149,069				132,545
Total current assets			1,392,180				1,422,158
Property, plant and equipment, net			245,805				216,299
Goodwill and other intangible assets, net			544,638				534,237
Investments			995				1,108
Deferred income taxes			40,856				43,272
Other non-current assets			37,336				38,575
Total assets		$	2,261,810			$	2,255,649
LIABILITIES & EQUITY
Bank lines of credit		$	150,381			$	76,240
Short-term borrowings			968				1,019
Current portion of long-term borrowings			44,041				21,775
Current portion of capital lease obligations			10,792				13,768
Trade payables and other accrued liabilities			766,887				859,086
Income taxes payable			14,696				12,657
Deferred income taxes			3,949				1,927
Total current liabilities			991,714				986,472
Long-term borrowings, excluding current portion			218,715				231,204
Capital lease obligations, excluding current portion			14,596				15,845
Deferred income taxes			24,649				31,845
Other non-current liabilities			40,104				38,775
Commitments and contingencies
UTi Worldwide Inc. shareholders’ equity:
Common stock			501,400				491,073
Retained earnings			539,769				503,675
Accumulated other comprehensive loss			(83,059	)			(55,983	)
Total UTi Worldwide Inc. shareholders’ equity			958,110				938,765
Non-controlling interests			13,922				12,743
Total equity			972,032				951,508
Total liabilities and equity		$	2,261,810			$	2,255,649

 

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UTi Worldwide Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

		Nine months ended October 31,
		2012				2011
		(Unaudited)
OPERATING ACTIVITIES:
Net income		$	47,316			$	65,658
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Share-based compensation costs			11,689				11,302
Depreciation			34,979				36,437
Amortization of intangible assets			9,376				12,098
Amortization of debt issuance costs			931				1,925
Deferred income taxes			(2,937	)			275
Uncertain tax positions			(1,136	)			391
Excess tax benefits from share-based compensation			(9	)			(430	)
Loss/(gain) on disposal of property, plant and equipment			25				(632	)
Provision for doubtful accounts			978				4,474
Other			1,450				1,512
Net changes in operating assets and liabilities			(160,135	)			(111,339	)
Net cash (used in)/provided by operating activities			(57,473	)			21,671
INVESTING ACTIVITIES:
Purchases of property, plant and equipment, excluding software			(31,371	)			(36,969	)
Proceeds from disposal of property, plant and equipment			2,484				4,706
Purchases of software and other intangible assets			(26,792	)			(26,217	)
Net increase in other non-current assets			(406	)			(4,186	)
Other			99				(29	)
Net cash used in investing activities			(55,986	)			(62,695	)
FINANCING ACTIVITIES:
Net borrowings/(repayments) under bank lines of credit			75,544				(19,450	)
Net increase/(decrease) in short-term borrowings			10				(6,588	)
Proceeds from issuance of long-term borrowings			3,629				153,988
Repayments of long-term borrowings			(21,180	)			(35,286	)
Debt issuance costs			(999	)			(2,153	)
Repayments of capital lease obligations			(13,757	)			(12,039	)
Acquisitions of non-controlling interests			—				(13,196	)
Distributions to non-controlling interests and other			(2,433	)			(183	)
Ordinary shares settled under share-based compensation plans			(3,042	)			(1,800	)
Proceeds from issuance of ordinary shares			1,671				1,803
Excess tax benefit from share-based compensation			9				430
Dividends paid			(6,223	)			(6,165	)
Net cash provided by financing activities			33,229				59,361
Effect of foreign exchange rate changes on cash and cash equivalents			(14,538	)			(6,102	)
Net (decrease)/increase in cash and cash equivalents			(94,768	)			12,235
Cash and cash equivalents at beginning of period			321,761				326,795
Cash and cash equivalents at end of period		$	226,993			$	339,030

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Three months ended October 31, 2012
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	738,136			$	390,730			$	—			$	1,128,866
Purchased transportation costs			558,543				166,721				—				725,264
Staff costs			102,476				109,166				7,413				219,055
Depreciation			3,858				7,463				933				12,254
Amortization of intangible assets			1,006				1,428				540				2,974
Severance and other			833				6,547				1,717				9,097
Other operating expenses			46,302				86,321				4,919				137,542
Total operating expenses			713,018				377,646				15,522				1,106,186
Operating income/(loss)		$	25,118			$	13,084			$	(15,522	)			22,680
Interest expense, net															(2,225	)
Other expense, net															(208	)
Pretax income															20,247
Provision for income taxes															7,378
Net income															12,869
Net income attributable to non-controlling interests															2,321
Net income attributable to UTi Worldwide Inc.														$	10,548

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Three months ended October 31, 2011
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	859,855			$	404,681			$	—			$	1,264,536
Purchased transportation costs			658,436				162,725				—				821,161
Staff costs			110,609				120,614				7,645				238,868
Depreciation			4,287				7,465				452				12,204
Amortization of intangible assets			1,051				2,279				540				3,870
Severance and other			909				675				71				1,655
Other operating expenses			47,350				86,498				4,649				138,497
Total operating expenses			822,642				380,256				13,357				1,216,255
Operating income/(loss)		$	37,213			$	24,425			$	(13,357	)			48,281
Interest expense, net															(3,323	)
Other expense, net															(677	)
Pretax income															44,281
Provision for income taxes															13,971
Net income															30,310
Net income attributable to non-controlling interests															1,774
Net income attributable to UTi Worldwide Inc.														$	28,536

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Nine months ended October 31, 2012
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	2,269,917			$	1,163,020			$	—			$	3,432,937
Purchased transportation costs			1,727,281				490,216				—				2,217,497
Staff costs			316,510				333,858				25,205				675,573
Depreciation			12,108				20,863				2,008				34,979
Amortization of intangible assets			3,077				4,679				1,620				9,376
Severance and other			3,009				7,656				2,256				12,921
Other operating expenses			137,327				252,356				13,658				403,341
Total operating expenses			2,199,312				1,109,628				44,747				3,353,687
Operating income/(loss)		$	70,605			$	53,392			$	(44,747	)			79,250
Interest expense, net															(7,527	)
Other expense, net															(508	)
Pretax income															71,215
Provision for income taxes															23,899
Net income															47,316
Net income attributable to non-controlling interests															4,999
Net income attributable to UTi Worldwide Inc.														$	42,317

 

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UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)

 

		Nine months ended October 31, 2011
		Freight Forwarding				Contract Logistics  and Distribution				Corporate				Total
Revenues		$	2,591,360			$	1,169,239			$	—			$	3,760,599
Purchased transportation costs			1,998,348				464,903				—				2,463,251
Staff costs			334,876				359,564				20,908				715,348
Depreciation			13,115				21,511				1,811				36,437
Amortization of intangible assets			3,262				6,956				1,880				12,098
Severance and other			5,006				4,163				818				9,987
Other operating expenses			147,000				255,320				14,343				416,663
Total operating expenses			2,501,607				1,112,417				39,760				3,653,784
Operating income/(loss)		$	89,753			$	56,822			$	(39,760	)			106,815
Interest expense, net															(11,414	)
Other expense, net															(278	)
Pretax income															95,123
Provision for income taxes															29,465
Net income															65,658
Net income attributable to non-controlling interests															5,506
Net income attributable to UTi Worldwide Inc.														$	60,152

 

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UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)

 

		Three months ended October 31, 2012
		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		$	214,715			$	55,467			$	57,300			$	31,818			$	(1,363	)		$	983
Americas			189,119				213,631				46,239				95,605				10,435				1,083
Asia Pacific			217,098				18,928				47,350				12,564				7,200				5,238
Africa			117,204				102,704				28,704				84,022				21,930				76
Corporate			—				—				—				—				(15,522	)			1,717
Total		$	738,136			$	390,730			$	179,593			$	224,009			$	22,680			$	9,097

 

		Three months ended October 31, 2011
		Freight Forwarding Revenue				Contract Logistics and Distribution Revenue				Freight Forwarding Net Revenue				Contract Logistics and Distribu tion Net Revenue				Operating Income/(Loss)				Severance and  Other
EMENA		$	256,160			$	54,690			$	66,424			$	38,217			$	2,441			$	1,229
Americas			195,407				227,441				48,525				105,429				14,501				208
Asia Pacific			277,047				16,416				56,907				10,418				20,061				—
Africa			131,241				106,134				29,563				87,892				24,635				147
Corporate			—				—				—				—				(13,357	)			71
Total		$	859,855			$	404,681			$	201,419			$	241,956			$	48,281			$	1,655

 

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UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)

 

		Nine months ended October 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		$	695,566			$	178,503			$	176,485			$	103,495			$	567			$	3,212
Americas			570,992				615,362				141,270				274,479				26,704				2,007
Asia Pacific			654,209				54,436				143,086				35,718				31,358				5,313
Africa			349,150				314,719				81,795				259,112				65,368				133
Corporate			—				—				—				—				(44,747	)			2,256
Total		$	2,269,917			$	1,163,020			$	542,636			$	672,804			$	79,250			$	12,921

 

		Nine months ended October 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		$	808,050			$	169,756			$	201,492			$	115,052			$	1,596			$	7,216
Americas			574,877				647,313				144,912				306,781				30,177				1,558
Asia Pacific			825,159				46,006				162,595				29,330				52,765				248
Africa			383,274				306,164				84,013				253,173				62,037				147
Corporate			—				—				—				—				(39,760	)			818
Total		$	2,591,360			$	1,169,239			$	593,012			$	704,336			$	106,815			$	9,987

 

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UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)

 

		Three months ended October 31, 2012				Three months ended October 31, 2011
GAAP Revenues		$	1,128,866			$	1,264,536
Less: Purchased transportation costs			(725,264	)			(821,161	)
Net Revenues		$	403,602			$	443,375
GAAP Operating expenses		$	1,106,186			$	1,216,255
Less: Purchased transportation costs			(725,264	)			(821,161	)
Operating expenses less purchased transportation costs			380,922				395,094
Severance and other (1)(2)			(9,097	)			(1,655	)
Non-GAAP Operating expenses		$	371,825			$	393,439
GAAP Operating income		$	22,680			$	48,281
Severance and other (1)(2)			9,097				1,655
Non-GAAP Operating income		$	31,777			$	49,936
Percent of Net Revenues			7.9	%			11.3	%
GAAP Pretax income		$	20,247			$	44,281
Severance and other (1)(2)			9,097				1,655
Non-GAAP Pretax income		$	29,344			$	45,936
GAAP Provision for income taxes		$	7,378			$	13,971
Severance and other (1)(2)			3,315				522
Non-GAAP Provision for income taxes		$	10,693			$	14,493
GAAP Net income attributable to UTi Worldwide Inc.		$	10,548			$	28,536
Adjustment for:
Severance and other (1)(2)			9,097				1,655
Income tax severance and other (3)			(3,315	)			(522	)
Non-GAAP Net income attributable to UTi Worldwide Inc.		$	16,330			$	29,669
GAAP Diluted earnings per common share		$	0.10			$	0.28
Adjustment for:
Severance and other (1)(2)			0.09				0.02
Income tax severance and other (3)			(0.03	)			(0.01	)
Non-GAAP Diluted earnings per common share		$	0.16			$	0.29

 

(1)	During the three months ended October 31, 2012, the company recorded pre-tax severance of $3,884 primarily related to transformation activities and accrued pre-tax expenses of $5,213 relating to a legal judgment.

(2)	During the three months ended October 31, 2011, the company recorded pre-tax severance of $1,655 primarily related to transformation activities.

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

 

Page 14 of 17

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UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)

 

		Nine months  ended October 31, 2012				Nine months  ended October 31, 2011
GAAP Revenues		$	3,432,937			$	3,760,599
Less: Purchased transportation costs			(2,217,497	)			(2,463,251	)
Net Revenues		$	1,215,440			$	1,297,348
GAAP Operating expenses		$	3,353,687			$	3,653,784
Less: Purchased transportation costs			(2,217,497	)			(2,463,251	)
Operating expenses less purchased transportation costs			1,136,190				1,190,533
Severance and other (4)(5)			(12,921	)			(9,987	)
Non-GAAP Operating expenses		$	1,123,269			$	1,180,546
GAAP Operating income		$	79,250			$	106,815
Severance and other (4)(5)			12,921				9,987
Non-GAAP Operating income		$	92,171			$	116,802
Percent of Net Revenues			7.6	%			9.0	%
GAAP Pretax income		$	71,215			$	95,123
Severance and other (4)(5)			12,921				9,987
Non-GAAP Pretax income		$	84,136			$	105,110
GAAP Provision for income taxes		$	23,899			$	29,465
Severance and other (4)(5)			4,336				3,094
Non-GAAP Provision for income taxes		$	28,235			$	32,559
GAAP Net income attributable to UTi Worldwide Inc.		$	42,317			$	60,152
Adjustment for:
Severance and other (4)(5)			12,921				9,987
Income tax severance and other (6)			(4,336	)			(3,094	)
Non-GAAP Net income attributable to UTi Worldwide Inc.		$	50,902			$	67,045
GAAP Diluted earnings per common share		$	0.41			$	0.58
Adjustment for:
Severance and other (4)(5)			0.12				0.10
Income tax severance and other (6)			(0.04	)			(0.03	)
Non-GAAP Diluted earnings per common share		$	0.49			$	0.65

 

(4)	During the nine months ended October 31, 2012, the company recorded pre-tax severance of $7,708 primarily related to transformation activities and pre-tax accrued expenses of $5,213 relating to a legal judgment.

(5)

During the nine months ended October 31, 2011, the company recorded pre-tax severance and other charges totaling $9,987, which were comprised of $8,073 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 and other 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 October 31, 2012. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation.

 

Three months ended October 31, 2012:
		Total Net Change				+/(-) Currency Impact				Organic Growth				+/(-) Non-GAAP Items (7)(8)				Adjusted Organic Growth
Revenues			(11	)%			4	%			(7	)%			—	%			(7	)%
Net revenues			(9	)%			5	%			(4	)%			—	%			(4	)%
Operating expenses less     purchased transportation costs			(4	)%			5	%			1	%			(2	)%			(1	)%

 

(7)	During the three months ended October 31, 2012, the company recorded pre-tax severance of $3,884 primarily related to transformation activities and pre-tax accrued expenses of $5,213 relating to a legal judgment.

(8)	During the three months ended October 31, 2011, the company recorded pre-tax severance of $1,655 primarily related to transformation activities.

 

Page 16 of 17

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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 nine months ended October 31, 2012. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation.

 

Nine months ended October 31, 2012:
		Total Net Change				+/(-) Currency Impact				Organic Growth				+/(-) Non-GAAP Items (9)(10)				Adjusted Organic Growth
Revenues			(9	)%			5	%			(4	)%			—	%			(4	)%
Net revenues			(6	)%			6	%			0	%			—	%			0	%
Operating expenses less     purchased transportation costs			(5	)%			6	%			1	%			—	%			1	%

 

(9)	During the nine months ended October 31, 2012, the company recorded pre-tax severance of $7,708 primarily related to transformation activities and pre-tax accrued expenses of $5,213 relating to a legal judgment.

(10)

During the nine months ended October 31, 2011, the company recorded pre-tax severance and other charges totaling $9,987, which were comprised of $8,073 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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