Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - UTi WORLDWIDE INC | d834521d8k.htm |
Exhibit 99.1
Contact:
Rick Rodick
Chief Financial Officer
(562) 552-9400
rrodick@go2uti.com
UTi WORLDWIDE REPORTS FISCAL 2015
THIRD QUARTER RESULTS
— Reaffirms Adjusted EBITDA Target of $190-210 Million for Fiscal 2016 —
Long Beach, Calif., December 9, 2014 – UTi Worldwide Inc. (NASDAQ: UTIW) today reported financial results for its fiscal 2015 third quarter ended October 31, 2014.
Fiscal Third Quarter 2015 vs. 2014 Results:
| • | Revenues were $1,078.3 million, a decrease of 6.6 percent from $1,154.4 million. |
| • | Net revenues (revenues minus purchased transportation costs) were $381.0 million, a decrease of 3.1 percent from $393.5 million. |
| • | On a constant currency basis, revenues decreased 4.3 percent and net revenues increased 0.1 percent versus the comparable prior year period. |
| • | Net loss attributable to UTi Worldwide Inc. was $34.0 million in the fiscal 2015 third quarter. Net loss attributable to common shareholders after dividends on preferred stock was $0.35 per diluted common share. |
| • | Net loss attributable to UTi Worldwide Inc. in the fiscal 2014 third quarter was $9.1 million, or $0.09 per diluted common share. |
| • | The company recorded severance and other costs of $23.7 million compared to $13.2 million. The $23.7 million includes a $19.6 million receivable impairment resulting from a customer bankruptcy. In addition, UTi recorded additional tax expense exceeding its normalized tax rate of $7.0 million, or $0.06 per diluted common share. |
| • | Non-GAAP net loss attributable to UTi Worldwide Inc. was $4.8 million. Non-GAAP net loss attributable to common shareholders after preferred stock dividends was $0.08 per diluted common share. |
| • | Earnings before interest, taxes, depreciation and amortization, as adjusted for severance and other costs (adjusted EBITDA), totaled $23.1 million (which includes $11.3 million in temporary costs) compared to $39.8 million. |
| • | All references to adjusted items, free cash flow (defined as cash flow from operations less net capital expenditures), constant currency items, EBITDA and adjusted EBITDA in this release refer |
Page 1 of 22
| to non-GAAP results. A reconciliation of these non-GAAP results to the most directly comparable financial measures calculated in accordance with GAAP is provided in the supplemental financial information attached to this release. |
Edward G. Feitzinger, chief executive officer, said, “Earlier this year, we were working through service issues and billing challenges associated with the rollout of our freight forwarding system in the United States. Since then, our service has improved dramatically. These past issues adversely impacted freight forwarding growth and free cash flow for several quarters. The third quarter marked a turning point in a number of areas. Airfreight kilos improved on a year over year basis for the month of October and adjusted EBITDA improved each month during the quarter. Free cash flow also turned positive in a quarter where we have historically had negative cash flows. In addition, by the end of Q3 we had completed approximately half of our previously announced incremental $45 million annualized cost savings target for fiscal year 2015. These actions, together with growth initiatives and other improvements, give us confidence in our previously-stated fiscal 2016 adjusted EBITDA target of $190 million to $210 million.”
“In the third quarter, adjusted EBITDA decreased approximately $17 million as compared to the same period last year, primarily due to lower freight forwarding revenues and $11 million in temporary costs. Contract logistics and distribution adjusted EBITDA was flat on a year over year basis, but the results were negatively impacted by new business start-ups and the timing of project related work. Adjusted EBITDA in freight forwarding declined primarily due to lower air freight volumes and costs related to transformation.”
Operating expenses less purchased transportation costs were $403.2 million in the third quarter of fiscal 2015. Excluding severance and other costs, adjusted operating expenses less purchased transportation costs were $379.6 million, compared to $373.1 million in the same period last year.
The company recorded a tax provision of $2.3 million in the fiscal 2015 third quarter on a pretax loss of $33.0 million, due to increases in valuation allowances and the mix of taxable income across the company’s tax jurisdictions.
Free cash flow was positive $8.5 million in the fiscal 2015 third quarter, which represents a $48 million improvement as compared to the same quarter last year. Richard G. Rodick, chief financial officer, said, “We improved our free cash flow significantly in the fiscal 2015 third quarter. As a result, the fiscal 2015 third quarter was our first positive free cash flow period in seven quarters, and better than any third quarter since fiscal 2012. We continue to believe that positive free cash flow for the full fiscal year is achievable, and we have additional incremental opportunity in fiscal 2016.”
The company recorded a $19.6 million receivable impairment in the fiscal 2015 third quarter relating to a customer bankruptcy. The total amount owed to the company is $24.9 million. The company filed an insurance claim for approximately $16 million under the terms of a policy related to a portion of the impaired amount. The company’s insurance provider has not yet accepted or rejected the claim. The company believes that a substantial portion of the claim will eventually be paid, but as required under GAAP, the company has not recognized any benefit from its potential insurance recovery.
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Investor Conference Call:
UTi management will host an investor conference call today, December 9, 2014, at 8:00 A.M. PDT (11:00 A.M. EDT) to review the company’s financial results for the fiscal 2015 third quarter. Investment professionals are invited to participate in the live call by dialing 888-378-0320 (domestic) or 719-457-2689 (international) using conference ID 8516326. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com. The slides that will be referenced during the call will be available on the company’s website at www.go2uti.com (click on “Investor Relations” and then click on “Webcasts & Presentations”). The slides will contain disclosures of certain non-GAAP financial measures, which will be identified in the slides. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures will be included in the slides. For those who are not available to listen to the live broadcast, the call will be archived for one year on the company’s website. A telephonic playback of the conference call also will be available from approximately 11:00 A.M. PDT, today, through December 12, 2014, by calling 888-203-1112 (domestic) or 719-457-0820 (international) and using replay passcode 8516326.
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 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 constant currency revenue and 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 (including a receivable
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impairment). The company has further referred to non-GAAP net loss attributable to UTi Worldwide Inc., which is adjusted to exclude severance and other costs (including a receivable impairment), valuation allowances on deferred tax assets, and changes in the company’s normalized tax rate, as described above, and non-GAAP net loss per diluted share attributable to common shareholders. In addition, the company has referred to free cash flow, which is cash flow from operations less purchases of property, plant and equipment (net of proceeds from disposals), as well as purchases of software and other intangible assets. Finally, the company has referred to earnings before interest, taxes, depreciation and amortization (EBITDA), and to adjusted EBITDA, which is EBITDA adjusted to exclude severance and other costs (including a receivable impairment). 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. In addition, the company’s management believes that presenting adjusted EBITDA provides useful information to investors regarding underlying business trends and performance of the company’s ongoing operations. 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. Further, adjusted EBITDA does not represent cash flow from operations as defined by GAAP, is not derived in accordance with GAAP, and should not be considered as an alternative to net income. For more information on these non-GAAP financial measures, please see the tables at the end of this press release.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release which address activities, events or developments that UTi expects or anticipates will or may occur in the future, including such things as the third quarter marking a turning point in a number of areas; the Company completing its previously announced incremental $45 million run rate cost savings target by the end of its fiscal year 2015; the fact that the Company is targeting adjusted EBITDA in fiscal 2016 in the range of $190 million to $210 million; the fact that the company believes that positive free cash flow for the full 2015 fiscal year is still achievable or that incremental opportunities exist in fiscal 2016; and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by UTi in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” and other similar expressions or the negative of these terms or other comparable terms. Investors are cautioned that any such forward-
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looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks in UTi’s filings with the SEC, including those listed in Item 1A “Risk Factors” in its annual report on Form 10-K relating to the fiscal year ended January 31, 2014, and the following: UTi’s ability to maintain sufficient liquidity and capital resources to fund its business; UTi’s ability to complete its business transformation initiatives in the timeframe and for the costs anticipated and achieve the expected benefits; UTi’s ability to generate sufficient cash to service its debts and other obligations; delays or inability to pay by UTi’s customers; UTi’s ability to execute its working capital plan, and to improve free cash flow; volatility with respect to global trade; global economic, political and market conditions and unrest, including those in Africa, Asia Pacific and EMENA (which is comprised of Europe, Middle East and North Africa); risks associated with UTi’s ongoing business transformation initiative, which include unanticipated difficulties, delays, additional costs and expenses as well as potential billing delays; volatile fuel costs; transportation capacity, pricing dynamics and the ability of UTi to secure space on third party aircraft, ocean vessels and other modes of transportation; changes in interest and foreign exchange rates, particularly with respect to the South African rand; 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 investigations by the governments of Brazil and Singapore into the international air freight and air cargo transportation industry; risks of adverse legal judgments or other liabilities not limited by contract or covered by insurance, including but not limited to the ongoing securities class action lawsuit; UTi’s ability to retain clients while facing increased competition; the financial condition of UTi’s clients; disruptions caused by epidemics, natural disasters, conflicts, strikes, wars and terrorism; the impact of changes in UTi’s effective tax rates; the other risks and uncertainties described herein and in UTi’s other filings with the SEC; and other factors outside UTi’s control. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on UTi or its business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof and UTi does not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except as required by law.
# # #
(Tables Follow)
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UTi Worldwide Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| Three months ended October 31, |
Nine months ended October 31, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenues: |
||||||||||||||||
| Airfreight forwarding |
$ | 319,057 | $ | 342,447 | $ | 955,407 | $ | 1,021,396 | ||||||||
| Ocean freight forwarding |
264,265 | 334,622 | 807,758 | 957,087 | ||||||||||||
| Customs brokerage |
55,854 | 37,948 | 162,680 | 100,074 | ||||||||||||
| Contract logistics |
199,142 | 190,699 | 583,833 | 557,758 | ||||||||||||
| Distribution |
164,604 | 157,301 | 470,561 | 450,257 | ||||||||||||
| Other |
75,357 | 91,389 | 234,274 | 277,905 | ||||||||||||
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| Total revenues |
1,078,279 | 1,154,406 | 3,214,513 | 3,364,477 | ||||||||||||
| Other operating expenses: |
||||||||||||||||
| Purchased transportation costs: |
||||||||||||||||
| Airfreight forwarding |
250,968 | 263,162 | 737,700 | 788,560 | ||||||||||||
| Ocean freight forwarding |
216,302 | 279,388 | 666,875 | 801,711 | ||||||||||||
| Customs brokerage |
9,965 | 7,317 | 32,912 | 12,691 | ||||||||||||
| Contract logistics |
50,436 | 44,858 | 142,498 | 135,272 | ||||||||||||
| Distribution |
114,436 | 110,096 | 328,871 | 314,308 | ||||||||||||
| Other |
55,154 | 56,092 | 150,511 | 157,059 | ||||||||||||
| Staff costs |
218,105 | 221,075 | 668,151 | 665,567 | ||||||||||||
| Depreciation |
14,207 | 13,628 | 42,235 | 39,766 | ||||||||||||
| Amortization of intangible assets |
7,398 | 5,730 | 21,417 | 11,276 | ||||||||||||
| Severance and other |
23,674 | 13,184 | 25,964 | 19,033 | ||||||||||||
| Other operating expenses |
139,843 | 132,630 | 415,746 | 397,936 | ||||||||||||
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| Total other operating expenses |
1,100,488 | 1,147,160 | 3,232,880 | 3,343,179 | ||||||||||||
| Operating (loss)/income |
(22,209 | ) | 7,246 | (18,367 | ) | 21,298 | ||||||||||
| Interest expense, net |
(10,557 | ) | (4,923 | ) | (29,220 | ) | (11,663 | ) | ||||||||
| Loss on debt extinguishment |
— | — | (21,820 | ) | — | |||||||||||
| Other expense, net |
(205 | ) | (294 | ) | (1,201 | ) | (1,256 | ) | ||||||||
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| Pretax (loss)/income |
(32,971 | ) | 2,029 | (70,608 | ) | 8,379 | ||||||||||
| Provision for income taxes |
2,293 | 9,334 | 21,573 | 30,054 | ||||||||||||
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| Net loss |
(35,264 | ) | (7,305 | ) | (92,181 | ) | (21,675 | ) | ||||||||
| Net (loss)/income attributable to non-controlling interests |
(1,269 | ) | 1,770 | 1,940 | 4,262 | |||||||||||
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| Net loss attributable to UTi Worldwide Inc. |
$ | (33,995 | ) | $ | (9,075 | ) | $ | (94,121 | ) | $ | (25,937 | ) | ||||
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| Basic and diluted loss per common share attributable to UTi Worldwide Inc. common shareholders |
$ | (0.35 | ) | $ | (0.09 | ) | $ | (0.97 | ) | $ | (0.25 | ) | ||||
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| Number of weighted average common shares outstanding used for per share calculations |
||||||||||||||||
| Basic and diluted shares |
105,438,911 | 104,746,663 | 105,257,604 | 104,450,366 | ||||||||||||
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UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
| October 31, 2014 | January 31, 2014 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 191,869 | $ | 204,384 | ||||
| Cash held as collateral |
32,801 | — | ||||||
| Trade receivables, net |
1,080,406 | 977,885 | ||||||
| Deferred income taxes |
10,116 | 8,889 | ||||||
| Other current assets |
157,024 | 154,465 | ||||||
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| Total current assets |
1,472,216 | 1,345,623 | ||||||
| Property, plant and equipment, net |
207,696 | 222,036 | ||||||
| Goodwill and other intangible assets, net |
447,419 | 464,867 | ||||||
| Investments |
1,034 | 1,075 | ||||||
| Deferred income taxes |
13,112 | 11,693 | ||||||
| Other non-current assets |
50,189 | 36,768 | ||||||
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| Total assets |
$ | 2,191,666 | $ | 2,082,062 | ||||
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| LIABILITIES & EQUITY | ||||||||
| Bank lines of credit |
$ | 83,109 | $ | 260,700 | ||||
| Short-term borrowings |
10,037 | 7,551 | ||||||
| Current portion of long-term borrowings |
1,776 | 3,488 | ||||||
| Current portion of capital lease obligations |
11,994 | 12,374 | ||||||
| Trade payables and other accrued liabilities |
752,274 | 754,965 | ||||||
| Income taxes payable |
19,742 | 17,877 | ||||||
| Deferred income taxes |
3,348 | 3,236 | ||||||
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| Total current liabilities |
882,280 | 1,060,191 | ||||||
| Long-term borrowings, excluding current portion |
366,297 | 205,862 | ||||||
| Capital lease obligations, excluding current portion |
61,104 | 60,784 | ||||||
| Deferred income taxes |
14,700 | 14,390 | ||||||
| Other non-current liabilities |
36,744 | 38,098 | ||||||
| Convertible preference shares |
178,732 | — | ||||||
| Commitments and contingencies |
||||||||
| UTi Worldwide Inc. shareholders’ equity: |
||||||||
| Common stock |
572,204 | 517,762 | ||||||
| Retained earnings |
211,624 | 313,974 | ||||||
| Accumulated other comprehensive loss |
(147,057 | ) | (143,317 | ) | ||||
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| Total UTi Worldwide Inc. shareholders’ equity |
636,771 | 688,419 | ||||||
| Non-controlling interests |
15,038 | 14,318 | ||||||
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| Total equity |
651,809 | 702,737 | ||||||
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| Total liabilities and equity |
$ | 2,191,666 | $ | 2,082,062 | ||||
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UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
| Nine months ended October 31, | ||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| OPERATING ACTIVITIES: |
||||||||
| Net loss |
$ | (92,181 | ) | $ | (21,675 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Share-based compensation costs |
10,365 | 9,782 | ||||||
| Depreciation |
42,235 | 39,766 | ||||||
| Amortization of intangible assets |
21,417 | 11,276 | ||||||
| Amortization of debt issuance costs |
2,805 | 524 | ||||||
| Make-whole payment |
20,830 | — | ||||||
| Accretion of convertible senior notes |
5,290 | — | ||||||
| Deferred income taxes |
(2,615 | ) | 7,102 | |||||
| Uncertain tax positions |
792 | (4 | ) | |||||
| Gain on disposal of property, plant and equipment |
(522 | ) | (548 | ) | ||||
| Provision for doubtful accounts |
4,328 | 4,220 | ||||||
| Proceeds from the sale of trade receivables |
— | 20,211 | ||||||
| Installment receivable impairment and other |
20,449 | 3,375 | ||||||
| Net changes in operating assets and liabilities |
(138,790 | ) | (142,891 | ) | ||||
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| Net cash used in operating activities |
(105,597 | ) | (68,862 | ) | ||||
| INVESTING ACTIVITIES: |
||||||||
| Net increase in cash held as collateral |
(32,801 | ) | — | |||||
| Purchases of property, plant and equipment, excluding software |
(20,989 | ) | (36,545 | ) | ||||
| Proceeds from disposals of property, plant and equipment |
4,058 | 3,583 | ||||||
| Purchases of software and other intangible assets |
(9,845 | ) | (27,484 | ) | ||||
| Net increase in other non-current assets |
(560 | ) | (3,292 | ) | ||||
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| Net cash used in investing activities |
(60,137 | ) | (63,738 | ) | ||||
| FINANCING ACTIVITIES: |
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| Net (repayments)/borrowings under bank lines of credit |
(175,830 | ) | 98,970 | |||||
| Net increase in short-term borrowings |
2,472 | 1,031 | ||||||
| Proceeds from issuances of long-term borrowings |
404,644 | 639 | ||||||
| Repayments of long-term borrowings |
(203,517 | ) | (5,514 | ) | ||||
| Make-whole payment |
(20,830 | ) | — | |||||
| Proceeds form the issuance of preference shares |
175,000 | — | ||||||
| Debt and preferred shares issuance costs |
(25,789 | ) | — | |||||
| Repayments of capital lease obligations |
(10,770 | ) | (10,168 | ) | ||||
| Distributions to non-controlling interests and other |
(1,416 | ) | (2,180 | ) | ||||
| Ordinary shares settled under share-based compensation plans |
(1,807 | ) | (2,487 | ) | ||||
| Proceeds from issuance of ordinary shares |
89 | 3,345 | ||||||
| Dividends paid |
— | (6,282 | ) | |||||
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| Net cash provided by financing activities |
142,246 | 77,354 | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents |
10,973 | (10,810 | ) | |||||
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| Net decrease in cash and cash equivalents |
(12,515 | ) | (66,056 | ) | ||||
| Cash and cash equivalents at beginning of period |
204,384 | 237,276 | ||||||
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| Cash and cash equivalents at end of period |
$ | 191,869 | $ | 171,220 | ||||
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UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Three months ended October 31, 2014 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 689,807 | $ | 388,472 | $ | — | $ | 1,078,279 | ||||||||
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| Purchased transportation costs |
523,942 | 173,319 | — | 697,261 | ||||||||||||
| Staff costs |
104,492 | 104,442 | 9,171 | 218,105 | ||||||||||||
| Depreciation |
4,245 | 8,546 | 1,416 | 14,207 | ||||||||||||
| Amortization of intangible assets |
6,472 | 926 | — | 7,398 | ||||||||||||
| Severance and other |
22,139 | 1,318 | 217 | 23,674 | ||||||||||||
| Other operating expenses |
47,842 | 82,076 | 9,925 | 139,843 | ||||||||||||
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| Total operating expenses |
709,132 | 370,627 | 20,729 | 1,100,488 | ||||||||||||
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| Operating (loss)/income |
$ | (19,325 | ) | $ | 17,845 | $ | (20,729 | ) | (22,209 | ) | ||||||
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| Interest expense, net |
(10,557 | ) | ||||||||||||||
| Other expense, net |
(205 | ) | ||||||||||||||
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| Pretax loss |
(32,971 | ) | ||||||||||||||
| Provision for income taxes |
2,293 | |||||||||||||||
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| Net loss |
(35,264 | ) | ||||||||||||||
| Net loss attributable to non-controlling interests |
(1,269 | ) | ||||||||||||||
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| Net loss attributable to UTi Worldwide Inc. |
$ | (33,995 | ) | |||||||||||||
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UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Three months ended October 31, 2013 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 778,446 | $ | 375,960 | $ | — | $ | 1,154,406 | ||||||||
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| Purchased transportation costs |
596,663 | 164,250 | — | 760,913 | ||||||||||||
| Staff costs |
108,985 | 103,582 | 8,508 | 221,075 | ||||||||||||
| Depreciation |
4,269 | 7,994 | 1,365 | 13,628 | ||||||||||||
| Amortization of intangible assets |
4,404 | 1,205 | 121 | 5,730 | ||||||||||||
| Severance and other |
6,083 | 7,004 | 97 | 13,184 | ||||||||||||
| Other operating expenses |
44,390 | 79,485 | 8,755 | 132,630 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
764,794 | 363,520 | 18,846 | 1,147,160 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income/(loss) |
$ | 13,652 | $ | 12,440 | $ | (18,846 | ) | 7,246 | ||||||||
|
|
|
|
|
|
|
|||||||||||
| Interest expense, net |
(4,923 | ) | ||||||||||||||
| Other expense, net |
(294 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Pretax income |
2,029 | |||||||||||||||
| Provision for income taxes |
9,334 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss |
(7,305 | ) | ||||||||||||||
| Net income attributable to non-controlling interests |
1,770 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (9,075 | ) | |||||||||||||
|
|
|
|||||||||||||||
Page 10 of 22
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Nine months ended October 31, 2014 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 2,081,720 | $ | 1,132,793 | $ | — | $ | 3,214,513 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Purchased transportation costs |
1,559,265 | 500,102 | — | 2,059,367 | ||||||||||||
| Staff costs |
327,642 | 312,365 | 28,144 | 668,151 | ||||||||||||
| Depreciation |
13,071 | 24,890 | 4,274 | 42,235 | ||||||||||||
| Amortization of intangible assets |
18,586 | 2,831 | — | 21,417 | ||||||||||||
| Severance and other |
23,649 | 1,578 | 737 | 25,964 | ||||||||||||
| Other operating expenses |
144,419 | 243,677 | 27,650 | 415,746 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
2,086,632 | 1,085,443 | 60,805 | 3,232,880 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating (loss)/income |
$ | (4,912 | ) | $ | 47,350 | $ | (60,805 | ) | (18,367 | ) | ||||||
|
|
|
|
|
|
|
|||||||||||
| Interest expense, net |
(29,220 | ) | ||||||||||||||
| Loss on debt extinguishment |
(21,820 | ) | ||||||||||||||
| Other expense, net |
(1,201 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Pretax loss |
(70,608 | ) | ||||||||||||||
| Provision for income taxes |
21,573 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss |
(92,181 | ) | ||||||||||||||
| Net income attributable to non-controlling interests |
1,940 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (94,121 | ) | |||||||||||||
|
|
|
|||||||||||||||
Page 11 of 22
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Nine months ended October 31, 2013 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 2,266,765 | $ | 1,097,712 | $ | — | $ | 3,364,477 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Purchased transportation costs |
1,732,000 | 477,601 | — | 2,209,601 | ||||||||||||
| Staff costs |
322,856 | 314,999 | 27,712 | 665,567 | ||||||||||||
| Depreciation |
12,491 | 23,356 | 3,919 | 39,766 | ||||||||||||
| Amortization of intangible assets |
6,645 | 3,648 | 983 | 11,276 | ||||||||||||
| Severance and other |
8,512 | 8,313 | 2,208 | 19,033 | ||||||||||||
| Other operating expenses |
136,969 | 237,205 | 23,762 | 397,936 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
2,219,473 | 1,065,122 | 58,584 | 3,343,179 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income/(loss) |
$ | 47,292 | $ | 32,590 | $ | (58,584 | ) | 21,298 | ||||||||
|
|
|
|
|
|
|
|||||||||||
| Interest expense, net |
(11,663 | ) | ||||||||||||||
| Other expense, net |
(1,256 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Pretax income |
8,379 | |||||||||||||||
| Provision for income taxes |
30,054 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss |
(21,675 | ) | ||||||||||||||
| Net income attributable to non-controlling interests |
4,262 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (25,937 | ) | |||||||||||||
|
|
|
|||||||||||||||
Page 12 of 22
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
| Three months ended October 31, 2014 | ||||||||||||||||||||||||
| 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 |
$ | 211,773 | $ | 58,244 | $ | 50,971 | $ | 33,623 | $ | (8,612 | ) | $ | 1,628 | |||||||||||
| Americas |
126,763 | 223,994 | 38,444 | 100,247 | (3,681 | ) | 2,043 | |||||||||||||||||
| Asia Pacific |
275,278 | 23,133 | 53,423 | 14,802 | 13,736 | 163 | ||||||||||||||||||
| Africa |
75,993 | 83,101 | 23,027 | 66,481 | (2,923 | ) | 19,623 | |||||||||||||||||
| Corporate |
— | — | — | — | (20,729 | ) | 217 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 689,807 | $ | 388,472 | $ | 165,865 | $ | 215,153 | $ | (22,209 | ) | $ | 23,674 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Three months ended October 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 |
$ | 220,317 | $ | 58,031 | $ | 57,698 | $ | 33,883 | $ | (6,682 | ) | $ | 4,855 | |||||||||||
| Americas |
164,113 | 206,693 | 47,938 | 90,803 | 3,854 | 2,627 | ||||||||||||||||||
| Asia Pacific |
262,281 | 22,567 | 50,957 | 15,791 | 15,374 | 1,431 | ||||||||||||||||||
| Africa |
131,735 | 88,669 | 25,190 | 71,233 | 13,546 | 4,174 | ||||||||||||||||||
| Corporate |
— | — | — | — | (18,846 | ) | 97 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 778,446 | $ | 375,960 | $ | 181,783 | $ | 211,710 | $ | 7,246 | $ | 13,184 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Page 13 of 22
UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)
| Nine months ended October 31, 2014 | ||||||||||||||||||||||||
| 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 |
$ | 650,254 | $ | 176,747 | $ | 170,345 | $ | 102,533 | $ | (14,858 | ) | $ | 2,194 | |||||||||||
| Americas |
406,235 | 644,337 | 124,766 | 288,431 | (7,583 | ) | 2,747 | |||||||||||||||||
| Asia Pacific |
790,440 | 64,907 | 161,145 | 42,333 | 41,580 | 620 | ||||||||||||||||||
| Africa |
234,791 | 246,802 | 66,199 | 199,394 | 23,299 | 19,666 | ||||||||||||||||||
| Corporate |
— | — | — | — | (60,805 | ) | 737 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 2,081,720 | $ | 1,132,793 | $ | 522,455 | $ | 632,691 | $ | (18,367 | ) | $ | 25,964 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Nine months ended October 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 |
$ | 648,940 | $ | 167,898 | $ | 174,721 | $ | 98,641 | $ | (10,088 | ) | $ | 6,774 | |||||||||||
| Americas |
519,652 | 600,134 | 140,404 | 264,668 | 8,837 | 3,520 | ||||||||||||||||||
| Asia Pacific |
745,549 | 61,413 | 146,528 | 41,272 | 39,016 | 2,035 | ||||||||||||||||||
| Africa |
352,624 | 268,267 | 73,112 | 215,530 | 42,117 | 4,496 | ||||||||||||||||||
| Corporate |
— | — | — | — | (58,584 | ) | 2,208 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 2,266,765 | $ | 1,097,712 | $ | 534,765 | $ | 620,111 | $ | 21,298 | $ | 19,033 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Page 14 of 22
UTi Worldwide Inc. Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
| Three months ended October 31, 2014 |
Three months ended October 31, 2013 |
|||||||
| GAAP Revenues |
$ | 1,078,279 | $ | 1,154,406 | ||||
| Less: Purchased transportation costs |
(697,261 | ) | (760,913 | ) | ||||
|
|
|
|
|
|||||
| Net revenues |
$ | 381,018 | $ | 393,493 | ||||
|
|
|
|
|
|||||
| GAAP Operating expenses |
$ | 1,100,488 | $ | 1,147,160 | ||||
| Less: Purchased transportation costs |
(697,261 | ) | (760,913 | ) | ||||
|
|
|
|
|
|||||
| Operating expenses less purchased transportation costs |
403,227 | 386,247 | ||||||
| Less: Adjustment for severance and other(1) |
(23,674 | ) | (13,184 | ) | ||||
|
|
|
|
|
|||||
| Non-GAAP Operating expenses |
$ | 379,553 | $ | 373,063 | ||||
|
|
|
|
|
|||||
| GAAP Operating (loss)/income |
$ | (22,209 | ) | $ | 7,246 | |||
| Add: Adjustment for severance and other(1) |
23,674 | 13,184 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Operating income |
$ | 1,465 | $ | 20,430 | ||||
|
|
|
|
|
|||||
| Non-GAAP operating income as a percentage of net revenues |
0.4 | % | 5.2 | % | ||||
| GAAP Pretax (loss)/income |
$ | (32,971 | ) | $ | 2,029 | |||
| Add: Adjustment for severance and other(1) |
23,674 | 13,184 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Pretax (loss)/income |
$ | (9,297 | ) | $ | 15,213 | |||
|
|
|
|
|
|||||
| GAAP Provision for income taxes |
$ | 2,293 | $ | 9,334 | ||||
| Add: Adjustment for severance and other(2) |
1,463 | 1,220 | ||||||
| Less: Adjustment for deferred tax asset valuation allowance(3) |
(7,010 | ) | (5,229 | ) | ||||
|
|
|
|
|
|||||
| Non-GAAP (Benefit)/provision for income taxes |
$ | (3,254 | ) | $ | 5,325 | |||
|
|
|
|
|
|||||
| GAAP Net loss attributable to UTi Worldwide Inc. |
$ | (33,995 | ) | $ | (9,075 | ) | ||
| Adjustment for: |
||||||||
| Severance and other(1) |
23,674 | 13,184 | ||||||
| Income tax effect severance and other(2) |
(1,463 | ) | (1,220 | ) | ||||
| Deferred tax asset valuation allowance(3) |
7,010 | 5,229 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Net loss attributable to UTi Worldwide Inc. |
$ | (4,774 | ) | $ | 8,118 | |||
|
|
|
|
|
|||||
| GAAP Diluted loss per common share |
$ | (0.35 | ) | $ | (0.09 | ) | ||
| Adjustment for: |
||||||||
| Severance and other(1) |
0.22 | 0.13 | ||||||
| Income tax effect severance and other(2) |
(0.01 | ) | (0.01 | ) | ||||
| Deferred tax asset valuation allowance(3) |
0.06 | 0.05 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Diluted (loss)/earnings per common share |
$ | (0.08 | ) | $ | 0.08 | |||
|
|
|
|
|
|||||
Page 15 of 22
| (1) | During the three months ended October 31, 2014 and 2013, the company recorded pre-tax severance and facility exit costs of $4,080 and $13,184, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 during the three months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
| (2) | The provision for income tax adjustment related to the severance and other costs was calculated based on the prevailing tax rate in each jurisdiction. |
| (3) | The company recorded additional tax expense exceeding its normalized tax rates. This is due to valuation allowances and the mix of taxable income across the company’s tax jurisdictions. The company’s estimated normalized tax rate was 35%, for the three months ended October 31, 2014, and 2013. This rate is estimated based upon historical average effective tax rates experienced by the company for the periods FY10 through FY12 during which the company had consistent profitability. These rates are dependent upon many factors including but not limited to the mix of income and loss generated across jurisdictions and enacted statutory tax rates. |
Page 16 of 22
UTi Worldwide Inc. Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
| Nine months ended October 31, 2014 |
Nine months ended October 31, 2013 |
|||||||
| GAAP Revenues |
$ | 3,214,513 | $ | 3,364,477 | ||||
| Less: Purchased transportation costs |
(2,059,367 | ) | (2,209,601 | ) | ||||
|
|
|
|
|
|||||
| Net revenues |
$ | 1,155,146 | $ | 1,154,876 | ||||
|
|
|
|
|
|||||
| GAAP Operating expenses |
$ | 3,232,880 | $ | 3,343,179 | ||||
| Less: Purchased transportation costs |
(2,059,367 | ) | (2,209,601 | ) | ||||
|
|
|
|
|
|||||
| Operating expenses less purchased transportation costs |
1,173,513 | 1,133,578 | ||||||
| Less: Adjustment for severance and other(4) |
(25,964 | ) | (19,033 | ) | ||||
|
|
|
|
|
|||||
| Non-GAAP Operating expenses |
$ | 1,147,549 | $ | 1,114,545 | ||||
|
|
|
|
|
|||||
| GAAP Operating (loss)/income |
$ | (18,367 | ) | $ | 21,298 | |||
| Add: Adjustment for severance and other(4) |
25,964 | 19,033 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Operating income |
$ | 7,597 | $ | 40,331 | ||||
|
|
|
|
|
|||||
| Non-GAAP operating income as a percentage of net revenues |
0.7 | % | 3.5 | % | ||||
| GAAP Pretax (loss)/income |
$ | (70,608 | ) | $ | 8,379 | |||
| Add: Adjustment for severance and other(4) |
25,964 | 19,033 | ||||||
| Add: Adjustment for loss on debt extinguishment(5) |
21,820 | — | ||||||
|
|
|
|
|
|||||
| Non-GAAP Pretax (loss)/income |
$ | (22,824 | ) | $ | 27,412 | |||
|
|
|
|
|
|||||
| GAAP Provision for income taxes |
$ | 21,573 | $ | 30,054 | ||||
| Add: Adjustment for severance and other(6) |
1,820 | 1,582 | ||||||
| Less: Adjustment for deferred tax asset valuation allowance(7)(8) |
(31,381 | ) | (22,042 | ) | ||||
|
|
|
|
|
|||||
| Non-GAAP (Benefit)/provision for income taxes |
$ | (7,988 | ) | $ | 9,594 | |||
|
|
|
|
|
|||||
| GAAP Net loss attributable to UTi Worldwide Inc. |
$ | (94,121 | ) | $ | (25,937 | ) | ||
| Adjustment for: |
||||||||
| Severance and other(4) |
25,964 | 19,033 | ||||||
| Income tax effect severance and other(5) |
(1,820 | ) | (1,582 | ) | ||||
| Loss on debt extinguishment(6) |
21,820 | — | ||||||
| Deferred tax asset valuation allowance(7)(8) |
31,381 | 22,042 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Net (loss)/income attributable to UTi Worldwide Inc. |
$ | (16,776 | ) | $ | 13,556 | |||
|
|
|
|
|
|||||
| GAAP Diluted loss per common share |
$ | (0.97 | ) | $ | (0.25 | ) | ||
| Adjustment for: |
||||||||
| Severance and other(4) |
0.25 | 0.18 | ||||||
| Income tax effect severance and other(5) |
(0.02 | ) | (0.02 | ) | ||||
| Loss on debt extinguishment(6) |
0.21 | — | ||||||
| Deferred tax asset valuation allowance(7)(8) |
0.29 | 0.22 | ||||||
|
|
|
|
|
|||||
| Non-GAAP Diluted (loss)/earnings per common share |
$ | (0.24 | ) | $ | 0.13 | |||
|
|
|
|
|
|||||
Page 17 of 22
| (4) | During the nine months ended October 31, 2014 and 2013, the company recorded pre-tax severance and facility exit costs of $6,370 and $19,033, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 for the nine months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
| (5) | The provision for income tax adjustment related to the severance and other costs was calculated based on the prevailing tax rate in each jurisdiction. |
| (6) | Loss on debt extinguishment for the nine months ended October 31, 2014, includes a make-whole payment of $20,830 with respect to the prepayment of the company’s $200,000 aggregate principal amount of private placement notes issued on January 25, 2013, as well as a non-cash charge of $990 related to unamortized debt issuance costs. |
| (7) | Adjustments for deferred tax asset valuation allowances include the effects of current period valuation allowances. For the nine months ended October 31, 2013, there was an adjustment that included an out of period adjustment to income tax expense of $6,098 to increase the valuation allowances for certain of its deferred tax assets. |
| (8) | The company recorded additional tax expense exceeding its normalized tax rates. This is due to valuation allowances and the mix of taxable income across the company’s tax jurisdictions. The company’s estimated normalized tax rate was 35%, for the nine months ended October 31, 2014, and 2013. This rate is estimated based upon historical average effective tax rates experienced by the company for the periods FY10 through FY12 during which the company had consistent profitability. These rates are dependent upon many factors including but not limited to the mix of income and loss generated across jurisdictions and enacted statutory tax rates. |
Page 18 of 22
UTi Worldwide Inc.
Constant Currency Reconciliation
(Unaudited)
Set forth below is a reconciliation of the company’s constant currency 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 nine months ended October 31, 2014. Constant currency is a non-GAAP measure that excludes the impact of foreign currency translation.
| Three months ended October 31, 2014 | ||||||||||||||||||||
| Total Net Change |
+/(-) Currency Impact |
Constant Currency | +/(-) Non-GAAP Items(9) |
Adjusted Constant Currency |
||||||||||||||||
| Revenues |
(7 | )% | 3 | % | (4 | )% | — | % | (4 | )% | ||||||||||
| Net revenues |
(3 | )% | 3 | % | — | % | — | % | — | % | ||||||||||
| Operating expenses less purchased transportation costs |
4 | % | 4 | % | 8 | % | (3 | )% | 5 | % | ||||||||||
| Nine months ended October 31, 2014 | ||||||||||||||||||||
| Total Net Change |
+/(-) Currency Impact |
Constant Currency | +/(-) Non-GAAP Items(10) |
Adjusted Constant Currency |
||||||||||||||||
| Revenues |
(4 | )% | 2 | % | (2 | )% | — | % | (2 | )% | ||||||||||
| Net revenues |
— | % | 3 | % | 3 | % | — | % | 3 | % | ||||||||||
| Operating expenses less purchased transportation costs |
4 | % | 3 | % | 7 | % | (1 | )% | 6 | % | ||||||||||
| (9) | During the three months ended October 31, 2014 and 2013, the company recorded pre-tax severance and facility exit costs of $4,080 and $13,184, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 during the three months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
| (10) | During the nine months ended October 31, 2014 and 2013, the company recorded pre-tax severance and facility exit costs of $6,370 and $19,033, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 for the nine months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
Page 19 of 22
UTi Worldwide Inc.
EBITDA and Adjusted EBITDA Calculation
(in thousands)
(Unaudited)
| Three months ended October 31, |
Nine months ended October 31, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| EBITDA: |
||||||||||||||||
| Net loss |
$ | (35,264 | ) | $ | (7,305 | ) | $ | (92,181 | ) | $ | (21,675 | ) | ||||
| Provision for income taxes |
2,293 | 9,334 | 21,573 | 30,054 | ||||||||||||
| Interest expense, net |
10,557 | 4,923 | 29,220 | 11,663 | ||||||||||||
| Other expense, net |
205 | 294 | 1,201 | 1,256 | ||||||||||||
| Depreciation |
14,207 | 13,628 | 42,235 | 39,766 | ||||||||||||
| Amortization of intangible assets |
7,398 | 5,730 | 21,417 | 11,276 | ||||||||||||
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| Total EBITDA before adjusting items |
(604 | ) | 26,604 | 23,465 | 72,340 | |||||||||||
| Adjusting items: |
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| Loss on debt extinguishment(11) |
— | — | 21,820 | — | ||||||||||||
| Severance and other(12)(13) |
23,674 | 13,184 | 25,964 | 19,033 | ||||||||||||
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| Adjusted EBITDA |
$ | 23,070 | $ | 39,788 | $ | 71,249 | $ | 91,373 | ||||||||
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| (11) | Loss on debt extinguishment for the nine months ended October 31, 2014, includes a make-whole payment of $20,830 with respect to the prepayment of the company’s $200,000 aggregate principal amount of private placement notes issued on January 25, 2013, as well as a non-cash charge of $990 related to unamortized debt issuance costs. |
| (12) | During the three months ended October 31, 2014 and 2013, the company recorded pre-tax severance and other exit costs of $4,080 and $13,184, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 during the three months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
| (13) | During the nine months ended October 31, 2014 and 2013, the company recorded pre-tax severance and facility exit costs of $6,370 and $19,033, respectively, primarily related to transformation activities. Included in severance and other the company incurred an impairment charge of $19,594 for the nine months ended October 31, 2014, in connection with an impairment of the South African Installment Receivable Agreement and other receivables. |
Page 20 of 22
UTi Worldwide Inc.
Free Cash Flow Calculation
(in thousands)
(Unaudited)
| Three months ended October 31, |
Nine months ended October 31, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net cash provided by/(used in) operating activities |
$ | 19,490 | $ | (22,199 | ) | $ | (105,597 | ) | $ | (68,862 | ) | |||||
| Purchases of property, plant and equipment, excluding software |
(8,748 | ) | (10,213 | ) | (20,989 | ) | (36,545 | ) | ||||||||
| Proceeds from disposals of property, plant and equipment |
1,670 | 1,699 | 4,058 | 3,583 | ||||||||||||
| Purchases of software and other intangible assets |
(3,917 | ) | (9,097 | ) | (9,845 | ) | (27,484 | ) | ||||||||
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| Free cash flow |
$ | 8,495 | $ | (39,810 | ) | $ | (132,373 | ) | $ | (129,308 | ) | |||||
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Page 21 of 22
UTi Worldwide Inc.
Basic and Diluted GAAP and Non-GAAP Calculation
(in thousands)
(Unaudited)
| Three months ended October 31, |
Nine months ended October 31, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Basic and Diluted EPS Calculation |
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| Net loss attributable to UTi Worldwide Inc. |
$ | (33,995 | ) | $ | (9,075 | ) | $ | (94,121 | ) | $ | (25,937 | ) | ||||
| Less: Dividends paid-in kind on Convertible Preference Shares |
(3,169 | ) | — | (8,229 | ) | — | ||||||||||
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| Loss attributable to UTi Worldwide Inc. common shareholders for calculation of basic and diluted earnings per share |
(37,164 | ) | (9,075 | ) | (102,350 | ) | (25,937 | ) | ||||||||
| Number of weighted average common shares outstanding used for per share calculations |
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| Basic and diluted shares |
105,438,911 | 104,746,663 | 105,257,604 | 104,450,366 | ||||||||||||
| Basic and diluted loss per common share attributable to UTi Worldwide Inc. common shareholders |
$ | (0.35 | ) | $ | (0.09 | ) | $ | (0.97 | ) | $ | (0.25 | ) | ||||
| Non-GAAP Basic and Diluted EPS Calculation |
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| Non-GAAP Net (loss)/income attributable to UTi Worldwide Inc. |
$ | (4,774 | ) | $ | 8,118 | $ | (16,776 | ) | $ | 13,556 | ||||||
| Less: Dividends paid-in kind on Convertible Preference Shares |
(3,169 | ) | — | (8,229 | ) | — | ||||||||||
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| Non-GAAP (Loss)/income attributable to UTi Worldwide Inc. common shareholders for calculation of basic and diluted (loss)/earnings per share |
(7,943 | ) | 8,118 | (25,005 | ) | 13,556 | ||||||||||
| Number of weighted average common shares outstanding used for per share calculations |
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| Basic and diluted shares |
105,438,911 | 104,746,663 | 105,257,604 | 104,450,366 | ||||||||||||
| Non-GAAP Basic and diluted (loss)/earnings per common share attributable to UTi Worldwide Inc. common shareholders |
$ | (0.08 | ) | $ | 0.08 | $ | (0.24 | ) | $ | 0.13 | ||||||
Page 22 of 22