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8-K - FORM 8-K - UTi WORLDWIDE INCd449453d8k.htm

Exhibit 99.1

 

LOGO

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   

 

Page 5 of 17


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   
  

 

 

   

 

 

 

 

Page 7 of 17


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   
          

 

 

 

 

Page 8 of 17


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   
          

 

 

 

 

Page 9 of 17


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   
          

 

 

 

 

Page 10 of 17


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   
          

 

 

 

 

Page 11 of 17


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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Page 12 of 17


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   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

Page 13 of 17


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


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.

 

Page 15 of 17


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


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.

 

Page 17 of 17