UTi WORLDWIDE INC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - UTi WORLDWIDE INC	d594230d8k.htm

Exhibit 99.1

LOGO

Contact:

Jeff Misakian

Global Vice President, Investor Relations

(562) 552-9417

jmisakian@go2uti.com

UTi WORLDWIDE REPORTS FISCAL 2014

SECOND QUARTER RESULTS

— New Freight Forwarding Operating System Launched in the United States —

Long Beach, Calif., September 6, 2013 – UTi Worldwide Inc. (NASDAQ: UTIW) today reported financial results for its fiscal 2014 second quarter ended July 31, 2013.

Fiscal Second Quarter 2014 vs. 2013 Results:

•

Revenues were $1,129.4 million, a decrease of 4.5 percent from $1,182.9 million.

•

Net revenues (revenues minus purchased transportation costs) were $385.6 million, a decrease of 5.0 percent from $406.1 million.

•

Net loss attributable to UTi Worldwide Inc. was $4.4 million, or $0.04 per diluted share, compared to net income of $18.9 million, or $0.18 per diluted share.

•

Adjustments to GAAP net loss in the fiscal 2014 second quarter included after-tax severance costs of $2.4 million, or $0.02 per diluted share. In addition, the company increased its valuation allowance on deferred tax assets by $7.5 million, or $0.07 per diluted share.

•

Excluding adjustments described above, non-GAAP net income attributable to UTi Worldwide Inc. was $5.5 million, or $0.05 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, “Our results in the fiscal 2014 second quarter continue to reflect a lackluster global economy, challenging trading conditions and costs associated with our comprehensive business process transformation. The results underscore the importance of completing our transformation, and we have continued to make significant progress in that area. Since July 1, we have deployed our new freight forwarding operating system in seven countries – including the United States, United Kingdom and Hong Kong. There are currently 22 countries on the system to-date.

Page 1 of 16

In particular, the U.S. launch is a notable milestone in our deployment process. The implementation of our proprietary system in our largest market demonstrates that the platform works and is scalable. The 22 countries on the new system represent approximately 35 percent of total freight forwarding shipments. We continue to expect that more than 70 percent of shipments will be on the new system by the end of fiscal 2014.”

Kirchner continued, “Revenues in the second quarter of fiscal 2014 were lower than the same period last year, with declines seen in both segments. Freight forwarding was impacted by lower pricing, which was partially offset by a modest increase in volumes. Airfreight tonnage was slightly higher in the second quarter for the first time in more than two years. Ocean freight continued to show steady volume growth in the second quarter. Net revenue per kilo and TEU declined in the fiscal 2014 second quarter compared to the same period last year, but improved modestly on a sequential basis as carrier rates declined. Contract logistics was affected by currency translation, as well as the previously reported exit of underperforming business in Europe and conclusion of certain high-margin accounts.”

Revenues and net revenues decreased 4.5 percent and 5.0 percent, respectively, in the fiscal 2014 second quarter compared to the same period last year. On an organic basis, revenues decreased 2.2 percent, while net revenues declined 1.6 percent in the fiscal 2014 second quarter, compared to the same period last year.

Operating expenses less purchased transportation costs were $375.6 million in the second quarter of fiscal 2014. Severance costs in the fiscal 2014 second quarter were $3.2 million on a pre-tax basis, compared to $2.1 million in the same period last year. Excluding the impact of severance, adjusted operating expenses less purchased transportation costs were $372.4 million, compared to $370.9 million in the same period last year. The increase reflects costs associated with transformation related activities and investments in sales and facilities that were previously reported. On an organic basis, adjusted operating expenses less purchased transportation costs increased 3.6 percent, compared to the same period last year.

The company recorded a tax provision of $9.4 million in the fiscal 2014 second quarter on pretax income of $5.9 million. This is primarily due to a $7.5 million addition to valuation allowances on deferred tax assets as a result of the unprofitability of certain operations.

Investor Conference Call:

UTi management will host an investor conference call today, September 6, 2013, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company’s financial results for the fiscal 2014 second quarter. Investment professionals are invited to participate in the live call by dialing 877-941-0844 (domestic) or 480-629-9692 (international) using conference ID 4636573. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.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 10, 2013, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using replay passcode 4636573.

Page 2 of 16

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 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 non-GAAP net income attributable to UTi Worldwide Inc., which is adjusted to exclude severance costs and valuation allowances on deferred tax assets, as described above, and non-GAAP earnings per diluted share. 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.

Page 3 of 16

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 status and timing of the company’s freight forwarding operating system, including plans to have more than 70 percent of shipments on the new system by the end of fiscal 2014 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, particularly as it relates to the global airfreight, ocean freight and contract logistics and distribution markets; global economic, political and market conditions, including those in Africa, Asia and EMENA; risks associated with the company’s business transformation initiative, which include unanticipated difficulties, delays, additional costs and expenses; changes in interest and foreign exchange rates; risks that the company might be required to record impairment charges to goodwill or additional increases in its valuation allowance on deferred tax assets; risks associated with the company’s ability to satisfy financial covenants in connection with its credit facilities and note purchase agreement in the future and its ability to amend, refinance, renew or replace its credit facilities, note purchase agreement and other indebtedness on commercially reasonable terms or at all; risks associated with the profitability of certain operations and changes in statutory tax rates worldwide, changes in the geographic composition of the company’s worldwide taxable income, changes in the company’s unrecognized tax positions, and the impact of audit settlements with local tax authorities; 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; 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 for the fiscal year ended January 31, 2013, 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)

Page 4 of 16

UTi Worldwide Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)


	Three months ended July 31,						Six months ended July 31,
	2013			2012			2013			2012
	(Unaudited)						(Unaudited)
Revenues:
Airfreight forwarding	$	355,120		$	370,394		$	678,949		$	751,534
Ocean freight forwarding		318,687			332,041			622,465			637,122
Customs brokerage		32,308			30,414			62,126			58,680
Contract logistics		186,377			203,818			367,059			405,471
Distribution		145,246			146,514			292,956			295,402
Other		91,680			99,749			186,516			203,378

Total revenues		1,129,418			1,182,930			2,210,071			2,351,587
Other operating expenses:
Purchased transportation costs:
Airfreight forwarding		274,926			286,684			525,398			588,506
Ocean freight forwarding		265,348			280,352			522,323			535,231
Customs brokerage		4,032			1,336			5,374			2,779
Contract logistics		45,956			54,370			90,414			104,353
Distribution		103,004			102,225			204,212			199,232
Other		50,504			51,892			100,967			109,648
Staff costs		224,280			225,330			444,492			456,518
Depreciation		12,956			11,229			26,138			22,725
Amortization of intangible assets		2,754			3,160			5,546			6,402
Severance and other		3,180			2,124			5,849			3,824
Other operating expenses		132,403			131,198			265,306			265,799

Total other operating expenses		1,119,343			1,149,900			2,196,019			2,295,017
Operating income		10,075			33,030			14,052			56,570
Interest expense, net		(3,447	)		(2,494	)		(6,740	)		(5,302	)
Other expense, net		(720	)		(272	)		(962	)		(300	)

Pretax income		5,908			30,264			6,350			50,968
Provision for income taxes		9,414			10,047			20,720			16,521

Net (loss)/income		(3,506	)		20,217			(14,370	)		34,447
Net income attributable to non-controlling interests		938			1,334			2,492			2,678

Net (loss)/income attributable to UTi Worldwide Inc.	$	(4,444	)	$	18,883		$	(16,862	)	$	31,769

Basic (loss)/earnings per common share attributable to
UTi Worldwide Inc. common shareholders	$	(0.04	)	$	0.18		$	(0.16	)	$	0.31

Diluted (loss)/earnings per common share attributable to
UTi Worldwide Inc. common shareholders	$	(0.04	)	$	0.18		$	(0.16	)	$	0.31

Number of weighted average common shares outstanding used for per share calculations
Basic shares		104,608,931			103,609,889			104,310,510			103,323,012
Diluted shares		104,608,931			103,893,040			104,310,510			103,920,826

Page 5 of 16

UTi Worldwide Inc.

Condensed Consolidated Balance Sheets

(in thousands)


	July 31, 2013			January 31, 2013
		(Unaudited)
ASSETS
Cash and cash equivalents	$	178,125		$	237,276
Trade receivables, net		1,012,598			898,809
Deferred income taxes		15,854			19,595
Other current assets		158,390			156,385

Total current assets		1,364,967			1,312,065
Property, plant and equipment, net		238,749			242,898
Goodwill and other intangible assets, net		462,674			457,635
Investments		1,057			969
Deferred income taxes		20,916			25,802
Other non-current assets		36,520			34,688

Total assets	$	2,124,883		$	2,074,057

LIABILITIES & EQUITY
Bank lines of credit	$	133,738		$	79,213
Short-term borrowings		1,514			1,129
Current portion of long-term borrowings		2,417			5,663
Current portion of capital lease obligations		11,448			11,377
Trade payables and other accrued liabilities		835,251			786,444
Income taxes payable		9,822			8,470
Deferred income taxes		1,946			2,775

Total current liabilities		996,136			895,071
Long-term borrowings, excluding current portion		203,630			204,434
Capital lease obligations, excluding current portion		65,218			73,538
Deferred income taxes		30,238			29,654
Other non-current liabilities		44,290			47,178
Commitments and contingencies
UTi Worldwide Inc. shareholders’ equity:
Common stock		510,934			505,237
Retained earnings		373,802			396,946
Accumulated other comprehensive loss		(112,949	)		(92,348	)

Total UTi Worldwide Inc. shareholders’ equity		771,787			809,835
Non-controlling interests		13,584			14,347

Total equity		785,371			824,182

Total liabilities and equity	$	2,124,883		$	2,074,057

Page 6 of 16

UTi Worldwide Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)


	Six months ended July 31,
	2013			2012
	(Unaudited)
OPERATING ACTIVITIES:
Net (loss)/income	$	(14,370	)	$	34,447
Adjustments to reconcile net (loss)/income to net cash used in operating activities:
Share-based compensation costs		6,869			7,050
Depreciation		26,138			22,725
Amortization of intangible assets		5,546			6,402
Amortization of debt issuance costs		346			658
Deferred income taxes		4,516			3,274
Uncertain tax positions		(148	)		(250	)
Excess tax benefits from share-based compensation		(73	)		(132	)
(Gain)/loss on disposal of property, plant and equipment		(696	)		37
Provision for doubtful accounts		2,814			449
Other		2,859			1,146
Net changes in operating assets and liabilities		(80,464	)		(90,180	)

Net cash used in operating activities		(46,663	)		(14,374	)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment, excluding software		(26,332	)		(19,561	)
Proceeds from disposals of property, plant and equipment		1,884			2,332
Purchases of software and other intangible assets		(18,387	)		(15,576	)
Net increase in other non-current assets		(2,869	)		(1,016	)
Other		(99	)		116

Net cash used in investing activities		(45,803	)		(33,705	)
FINANCING ACTIVITIES:
Net borrowings under bank lines of credit		59,687			29,677
Net increase in short-term borrowings		441			—
Proceeds from issuances of long-term borrowings		550			1,986
Repayments of long-term borrowings		(4,617	)		(11,045	)
Debt issuance costs		—			(1,098	)
Repayments of capital lease obligations		(7,882	)		(9,759	)
Distributions to non-controlling interests and other		(2,152	)		(2,433	)
Ordinary shares settled under share-based compensation plans		(2,487	)		(2,450	)
Proceeds from issuance of ordinary shares		2,461			1,592
Excess tax benefits from share-based compensation		73			132
Dividends paid		—			(6,223	)

Net cash provided by financing activities		46,074			379
Effect of foreign exchange rate changes on cash and cash equivalents		(12,759	)		(11,300	)

Net decrease in cash and cash equivalents		(59,151	)		(59,000	)
Cash and cash equivalents at beginning of period		237,276			321,761

Cash and cash equivalents at end of period	$	178,125		$	262,761

Page 7 of 16

UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)


	Three months ended July 31, 2013
	Freight Forwarding		Contract Logistics and Distribution		Corporate			Total
Revenues	$	768,803	$	360,615	$	—		$	1,129,418

Purchased transportation costs		585,374		158,396		—			743,770
Staff costs		108,803		105,140		10,337			224,280
Depreciation		3,939		7,566		1,451			12,956
Amortization of intangible assets		1,121		1,207		426			2,754
Severance and other		2,193		317		670			3,180
Other operating expenses		46,531		78,148		7,724			132,403

Total operating expenses		747,961		350,774		20,608			1,119,343

Operating income/(loss)	$	20,842	$	9,841	$	(20,608	)		10,075

Interest expense, net									(3,447	)
Other expense, net									(720	)

Pretax income									5,908
Provision for income taxes									9,414

Net loss									(3,506	)
Net income attributable to non-controlling interests									938

Net loss attributable to UTi Worldwide Inc.								$	(4,444	)

Page 8 of 16

UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)


	Three months ended July 31, 2012
	Freight Forwarding		Contract Logistics and Distribution		Corporate			Total
Revenues	$	797,375	$	385,555	$	—		$	1,182,930

Purchased transportation costs		610,646		166,213		—			776,859
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		769,238		365,901		14,761			1,149,900

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

Page 9 of 16

UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)


	Six months ended July 31, 2013
	Freight Forwarding		Contract Logistics and Distribution		Corporate			Total
Revenues	$	1,488,319	$	721,752	$	—		$	2,210,071

Purchased transportation costs		1,135,337		313,351		—			1,448,688
Staff costs		213,871		211,417		19,204			444,492
Depreciation		8,222		15,362		2,554			26,138
Amortization of intangible assets		2,241		2,443		862			5,546
Severance and other		2,429		1,309		2,111			5,849
Other operating expenses		92,579		157,720		15,007			265,306

Total operating expenses		1,454,679		701,602		39,738			2,196,019

Operating income/(loss)	$	33,640	$	20,150	$	(39,738	)		14,052

Interest expense, net									(6,740	)
Other expense, net									(962	)

Pretax income									6,350
Provision for income taxes									20,720

Net loss									(14,370	)
Net income attributable to non-controlling interests									2,492

Net loss attributable to UTi Worldwide Inc.								$	(16,862	)

Page 10 of 16

UTi Worldwide Inc.

Segment Reporting

(in thousands)

(Unaudited)


	Six months ended July 31, 2012
	Freight Forwarding		Contract Logistics and Distribution		Corporate			Total
Revenues	$	1,579,297	$	772,290	$	—		$	2,351,587

Purchased transportation costs		1,216,254		323,495		—			1,539,749
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		1,533,810		731,982		29,225			2,295,017

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

Page 11 of 16

UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)


	Three months ended July 31, 2013
	Freight Forwarding Revenues		Contract Logistics and Distribution Revenues		Freight Forwarding Net Revenues		Contract Logistics and Distribution Net Revenues		Operating (Loss)/Income			Severance and Other
EMENA	$	215,932	$	55,598	$	59,805	$	32,661	$	(246	)	$	932
Americas		181,118		198,677		48,185		88,131		3,769			652
Asia Pacific		263,749		20,964		51,336		13,708		14,457			604
Africa		108,004		85,376		24,103		67,719		12,703			322
Corporate		—		—		—		—		(20,608	)		670

Total	$	768,803	$	360,615	$	183,429	$	202,219	$	10,075		$	3,180


	Three months ended July 31, 2012
	Freight Forwarding Revenues		Contract Logistics and Distribution Revenues		Freight Forwarding Net Revenues		Contract Logistics and Distribution Net Revenues		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		251,389		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	$	797,375	$	385,555	$	186,729	$	219,342	$	33,030		$	2,124

Page 12 of 16

UTi Worldwide Inc.

Geographic Reporting

(in thousands)

(Unaudited)


	Six months ended July 31, 2013
	Freight Forwarding Revenues		Contract Logistics and Distribution Revenues		Freight Forwarding Net Revenues		Contract Logistics and Distribution Net Revenues		Operating (Loss)/Income			Severance and Other
EMENA	$	428,623	$	109,867	$	117,023	$	64,758	$	(3,406	)	$	1,919
Americas		355,539		393,441		92,466		173,865		4,983			893
Asia Pacific		483,268		38,846		95,571		25,481		23,642			604
Africa		220,889		179,598		47,922		144,297		28,571			322
Corporate		—		—		—		—		(39,738	)		2,111

Total	$	1,488,319	$	721,752	$	352,982	$	408,401	$	14,052		$	5,849


	Six months ended July 31, 2012
	Freight Forwarding Revenues		Contract Logistics and Distribution Revenues		Freight Forwarding Net Revenues		Contract Logistics and Distribution Net Revenues		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		484,627		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	$	1,579,297	$	772,290	$	363,043	$	448,795	$	56,570		$	3,824

Page 13 of 16

UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)


	Three months ended July 31, 2013			Three months ended July 31, 2012
GAAP Revenues	$	1,129,418		$	1,182,930
Less: Purchased transportation costs		(743,770	)		(776,859	)

Net revenues	$	385,648		$	406,071

GAAP Operating expenses	$	1,119,343		$	1,149,900
Less: Purchased transportation costs		(743,770	)		(776,859	)

Operating expenses less purchased transportation costs		375,573			373,041
Less: Adjustment for severance and other⁽¹⁾		(3,180	)		(2,124	)

Non-GAAP Operating expenses	$	372,393		$	370,917

GAAP Operating income	$	10,075		$	33,030
Add: Adjustment for severance and other⁽¹⁾		3,180			2,124

Non-GAAP Operating income	$	13,255		$	35,154

Non-GAAP operating income as a percentage of net revenues		3.4	%		8.7	%
GAAP Pretax income	$	5,908		$	30,264
Add: Adjustment for severance and other⁽¹⁾		3,180			2,124

Non-GAAP Pretax income	$	9,088		$	32,388

GAAP Provision for income taxes	$	9,414		$	10,047
Add: Adjustment for severance and other⁽²⁾		808			705
Less: Adjustment for deferred tax asset valuation allowance⁽³⁾		(7,540	)		(786	)

Non-GAAP Provision for income taxes	$	2,682		$	9,966

GAAP Net (loss)/income attributable to UTi Worldwide Inc.	$	(4,444	)	$	18,883
Adjustment for:
Severance and other⁽¹⁾		3,180			2,124
Income tax effect severance and other⁽²⁾		(808	)		(705	)
Adjustment for deferred tax asset valuation allowance⁽³⁾		7,540			786

Non-GAAP Net income attributable to UTi Worldwide Inc.	$	5,468		$	21,088

GAAP Diluted (loss)/earnings per common share	$	(0.04	)	$	0.18
Adjustment for:
Severance and other⁽¹⁾		0.03			0.03
Income tax effect severance and other⁽²⁾		(0.01	)		(0.01	)
Adjustment for deferred tax asset valuation allowance⁽³⁾		0.07			0.01

Non-GAAP Diluted earnings per common share	$	0.05		$	0.21

(1)	During the three months ended July 31, 2013 and 2012, the company recorded pre-tax severance of $3,180 and $2,124, respectively, primarily related to transformation activities.

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

(3)

Adjustments for deferred tax asset valuation allowances include the effects of current period valuation allowances. For the three months ended July 31, 2013, the adjustment also includes an out of period adjustment to income tax expense of $1,098 to increase the valuation allowances for certain of its deferred tax assets.

Page 14 of 16

UTi Worldwide Inc.

Supplemental Financial Information – Reconciliation to US GAAP

(in thousands, except per share amounts)

(Unaudited)


	Six months ended July 31, 2013			Six months ended July 31, 2012
GAAP Revenues	$	2,210,071		$	2,351,587
Less: Purchased transportation costs		(1,448,688	)		(1,539,749	)

Net revenues	$	761,383		$	811,838

GAAP Operating expenses	$	2,196,019		$	2,295,017
Less: Purchased transportation costs		(1,448,688	)		(1,539,749	)

Operating expenses less purchased transportation costs		747,331			755,268
Less: Adjustment for severance and other⁽⁴⁾		(5,849	)		(3,824	)

Non-GAAP Operating expenses	$	741,482		$	751,444

GAAP Operating income	$	14,052		$	56,570
Add: Adjustment for severance and other⁽⁴⁾		5,849			3,824

Non-GAAP Operating income	$	19,901		$	60,394

Non-GAAP operating income as a percentage of net revenues		2.6	%		7.4	%
GAAP Pretax income	$	6,350		$	50,968
Add: Adjustment for severance and other⁽⁴⁾		5,849			3,824

Non-GAAP Pretax income	$	12,199		$	54,792

GAAP Provision for income taxes	$	20,720		$	16,521
Add: Adjustment for severance and other⁽⁵⁾		1,723			1,240
Less: Adjustment for deferred tax asset valuation allowance⁽⁶⁾		(15,848	)		(2,082	)

Non-GAAP Provision for income taxes	$	6,595		$	15,679

GAAP Net (loss)/income attributable to UTi Worldwide Inc.	$	(16,862	)	$	31,769
Adjustment for:
Severance and other⁽⁴⁾		5,849			3,824
Income tax effect severance and other⁽⁵⁾		(1,723	)		(1,240	)
Adjustment for deferred tax asset valuation allowance⁽⁶⁾		15,848			2,082

Non-GAAP Net income attributable to UTi Worldwide Inc.	$	3,112		$	36,435

GAAP Diluted (loss)/earnings per common share	$	(0.16	)	$	0.31
Adjustment for:
Severance and other⁽⁴⁾		0.06			0.03
Income tax effect severance and other⁽⁵⁾		(0.02	)		(0.01	)
Adjustment for deferred tax asset valuation allowance⁽⁶⁾		0.15			0.02

Non-GAAP Diluted earnings per common share	$	0.03		$	0.35

(4)	During the six months ended July 31, 2013 and 2012, the company recorded pre-tax severance of $5,849 and $3,824, respectively, primarily related to transformation activities.

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

(6)

Adjustments for deferred tax asset valuation allowances include the effects of current period valuation allowances. For the six months ended July 31, 2013, the adjustment also includes an out of period adjustment to income tax expense of $6,098 to increase the valuation allowances for certain of its deferred tax assets.

Page 15 of 16

UTi Worldwide Inc.

Organic Growth Reconciliation

(Unaudited)


	Three months ended July 31, 2013
	Total Net Change			+/(-) Currency Impact			Organic Growth			+/(-) Non-GAAP Items			Adjusted Organic Growth
Revenues		(5	)%		3	%		(2	)%		—	%		(2	)%
Net revenues		(5	)%		3	%		(2	)%		—	%		(2	)%
Operating expenses less purchased transportation costs		1	%		3	%		4	%		—	%		4	%

	Six months ended July 31, 2013
	Total Net Change			+/(-) Currency Impact			Organic Growth			+/(-) Non-GAAP Items			Adjusted Organic Growth
Revenues		(6	)%		1	%		(5	)%		—	%		(5	)%
Net revenues		(7	)%		2	%		(5	)%		—	%		(5	)%
Operating expenses less purchased transportation costs		(1	)%		4	%		3	%		—	%		3	%

Set forth above 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 and six months ended July 31, 2013. Organic growth is a non-GAAP measure that excludes the impact of foreign currency translation.

Page 16 of 16

Attached files

Stock widget

Investing forum

UTi WORLDWIDE INC Reports