Attached files
| file | filename |
|---|---|
| 8-K - 8-K - UTi WORLDWIDE INC | d937907d8k.htm |
Exhibit 99.1
Contact:
Rick Rodick
Chief Financial Officer
(562) 552-9400
rrodick@go2uti.com
UTi WORLDWIDE REPORTS FIRST QUARTER FISCAL 2016 RESULTS
Long Beach, Calif., June 4, 2015 – UTi Worldwide Inc. (NASDAQ: UTIW) today reported financial results for its fiscal 2016 first quarter ended April 30, 2015.
Fiscal First Quarter 2016 vs. Fiscal First Quarter 2015 Results
| • | Revenues decreased 6.8% to $973.3 million from $1,043.9 million |
| • | Net revenues (revenues minus purchased transportation costs) decreased 10.8% to $329.5 million from $369.4 million |
| • | On a constant currency basis, revenues increased 0.7% and net revenues decreased 3.1%, respectively |
| • | Net loss attributable to UTi Worldwide Inc. decreased to $33.3 million from $43.7 million |
| • | Diluted loss per share decreased to $0.35 from $0.44 per diluted common share |
| • | Earnings before interest, taxes, depreciation and amortization, excluding severance and other items set out in the reconciliation included with this press release (Adjusted EBITDA), decreased to $8.0 million from $18.2 million |
Fiscal First Quarter 2016 vs. Fiscal Fourth Quarter 2015 Results
| • | Revenues increased 0.9% to $973.3 million from $964.6 million |
| • | Net revenues increased 5.5% to $329.5 million from $312.2 million |
| • | On a constant currency basis, revenues and net revenues increased 4.1% and 9.1%, respectively |
| • | Adjusted EBITDA increased to positive $8.0 million from negative $45.2 million |
Edward G. Feitzinger, chief executive officer, said, “Our first quarter results were in line with our expectations coming out of the fourth quarter, reflecting solid execution against the key priorities of our turnaround plan. As I discussed last quarter, there are four priorities that are critical to our near-term success – deliver consistent performance in our CL&D business, manage our costs, make improvements in working capital and drive growth and margin improvements in our freight forwarding business. I am
Page 1 of 17
pleased to report that we made good progress in each of these areas this quarter. CL&D finished slightly ahead of our internal expectations, staff costs were down significantly on a year-over-year basis, and the change in working capital was better than our historical norms. On the freight forwarding side, we were able to improve our yields and volumes when measured on a sequential quarter basis, as we expected. We also had positive sales momentum in both business units during the first quarter, indicating early traction with our shift to a client-centric focus combined with numerous improvements in our sales force structure. We made progress this quarter, but we have more work to do on our multi-quarter plan to achieve the level of performance we know we are capable of.”
Financial Results for First Quarter Fiscal Year 2016
For the first quarter of fiscal year 2016, revenues decreased 6.8% to $973.3 million, compared to $1,043.9 million for the prior year period, while net revenues decreased 10.8% to $329.5 million, compared to $369.4 million for the prior year period. The decrease in net revenue was primarily related to lower ocean and air yields and volumes in freight forwarding as well as the strengthening of the U.S. dollar against the Euro and South African Rand. On a constant currency basis, revenues were up 0.7%, while net revenues declined 3.1%. Operating loss for the quarter was $18.8 million compared to $3.3 million for the prior year period, primarily due to lower net revenues and $4.4 million in higher severance and other costs. Adjusted EBITDA was $8.0 million compared to $18.2 million for the prior year period. Free cash flow (defined as cash flow from operations less capital expenditures) was negative $79.4 million for the first quarter compared to negative $130.5 million for the prior year period.
Contract Logistics and Distribution
Net revenues for Contract Logistics and Distribution decreased 4.7% to $192.2 million in the first quarter of fiscal 2016 compared to $201.7 million in the prior year period. On a constant currency basis, net revenues for Contract Logistics and Distribution increased 2.4%. Operating income was $10.0 million for the first quarter of fiscal 2016 compared to $13.7 million for the same period last year. The variance was primarily related to the shut-down costs ($2.0 million) associated with the expected exit of a joint venture, currency exchange rate fluctuations ($0.8 million), and lower operating results in South Africa.
Freight Forwarding
Net revenues for Freight Forwarding decreased 18.1% to $137.3 million in the first quarter of fiscal 2016 compared to $167.6 million in the prior year period. On a constant currency basis, net revenues for Freight Forwarding decreased 9.8%. The decrease was primarily related to lower ocean and air yields and volumes. The operating loss was $11.1 million for the first quarter of fiscal 2016 compared to operating income of $1.2 million for the same period last year.
Richard G. Rodick, chief financial officer, said, “Free cash flow for the first quarter of fiscal 2016 was significantly better than the first quarter of fiscal 2015, but was negatively impacted by the timing of some large disbursements at quarter end. Based on various actions we are taking, we are confident that our working capital improvement plans will generate our targeted full year results.”
Page 2 of 17
Fiscal Year 2016 Outlook
The Company is confirming its guidance for full fiscal year 2016.
| • | The Company expects adjusted EBITDA to be within the range of $125 million to $150 million for fiscal year 2016; and, |
| • | The Company anticipates a year-over-year reduction in working capital in the range of $175 million to $200 million |
Edward G. Feitzinger, chief executive officer, commented, “On a relative basis, we are pleased with the start to the year and the first full quarter under our new playbook. We are executing on our internal initiatives, clients have voiced their confidence in our new strategy and direction and the pieces are beginning to fall into place as we work towards our goals of working capital and profit improvement. While we have made significant progress, we are still in the early stages of our turnaround and will need to drive incremental net revenue growth throughout the year in order to achieve our targets.”
Investor Conference Call
UTi management will host an investor conference call today, June 4, 2015, at 2:00 P.M. PDT (5:00 P.M. EDT) to review the Company’s financial results for the fiscal 2016 first quarter. Investment professionals are invited to participate in the live call by dialing 877-328-5514 (domestic) or 412-317-5420 (international) and asking to be connected to the UTi Worldwide, Inc. conference call. The call will be open to all other interested parties 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 5:00 P.M. PDT, today, through June 9, 2015, by calling 877-344-7529 (domestic) or 412-317-0088 (international) and using conference ID 10066484.
Page 3 of 17
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 regarding net revenues (revenues minus purchased transportation costs) and regarding constant currency revenue and net revenue changes, which are adjusted to exclude the impact of currency fluctuations between comparable periods. In addition, 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 items set out in the reconciliation included with this press release. The Company has also 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. 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 non-GAAP financial 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 generally accepted accounting principles in the U.S. (GAAP). Further, neither free cash flow nor adjusted EBITDA represent cash flow from operations as defined by GAAP, are 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.
Page 4 of 17
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, but not limited to statements about such matters as the Company being confident that our working capital improvement plans will generate our targeted full year results; the fact that the Company is targeting adjusted EBITDA in fiscal 2016 in the range of $125 million to $150 million and anticipates year over year working capital improvement of $175 million to $200 million; the Company’s statement that we are executing on our internal initiatives, clients have voiced their confidence in our new strategy and direction and the pieces are beginning to fall into place as we work towards our goals of working capital and profit improvement; and any other statements about the Company’s expected, estimated or anticipated future results or strategies, 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-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, 2015 filed with the SEC, and the following: the Company has incurred losses the last three fiscal years and such losses may continue; the Company’s ability to achieve its adjusted EBITDA target for the 2016 fiscal year is dependent on incremental net revenue growth in its freight forwarding business, which growth may not occur; the Company’s ability to maintain sufficient liquidity and capital resources to fund its business and to generate sufficient cash to service its debts and other obligations; the Company’s ability to refinance its indebtedness when it comes due; risks associated with the Company’s clients, including delays or the inability by such clients to pay the Company; the risk that the Company may not be able to achieve its expected working capital improvements; volatility with respect to global trade; global economic, political and market conditions and unrest, including those in Africa, Asia Pacific and Europe; volatile fuel costs; transportation capacity, pricing dynamics and the Company’s ability 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 and the Euro; material interruptions in transportation services; risks of international operations; risks associated with, and the potential for
Page 5 of 17
penalties, fines, costs and expenses the Company may incur as a result of an investigation by the government of Brazil 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; risks associated with the pending securities class action lawsuit and pending investigation by the SEC; the Company’s ability to retain clients while facing increased competition; disruptions caused by epidemics, natural disasters, conflicts, strikes, wars and terrorism; the impact of changes in the Company’s effective tax rates; the Company’s ability to maintain effective disclosure controls and procedures and effective internal control over financial reporting; the other risks and uncertainties described herein and in the Company’s other filings with the SEC; and other factors outside the Company’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 the Company or its business or results of operations. Forward-looking statements set forth in this press release speak only as of the date hereof and the Company 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)
Page 6 of 17
UTi Worldwide Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| Three months ended April 30, |
||||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| Revenues: |
||||||||
| Airfreight forwarding |
$ | 294,778 | $ | 321,401 | ||||
| Ocean freight forwarding |
242,298 | 263,132 | ||||||
| Customs brokerage |
44,523 | 44,327 | ||||||
| Contract logistics |
184,007 | 187,164 | ||||||
| Distribution |
144,888 | 146,858 | ||||||
| Other |
62,823 | 81,006 | ||||||
|
|
|
|
|
|||||
| Total revenues |
973,317 | 1,043,888 | ||||||
| Other operating expenses: |
||||||||
| Purchased transportation costs: |
||||||||
| Airfreight forwarding |
231,093 | 245,413 | ||||||
| Ocean freight forwarding |
213,361 | 219,048 | ||||||
| Customs brokerage |
12,454 | 11,008 | ||||||
| Contract logistics |
49,478 | 44,270 | ||||||
| Distribution |
101,749 | 103,784 | ||||||
| Other |
35,730 | 51,011 | ||||||
| Staff costs |
199,131 | 217,177 | ||||||
| Depreciation |
13,078 | 13,806 | ||||||
| Amortization of intangible assets |
7,412 | 6,999 | ||||||
| Severance and other |
5,014 | 647 | ||||||
| Other operating expenses |
123,649 | 133,995 | ||||||
|
|
|
|
|
|||||
| Total other operating expenses |
992,149 | 1,047,158 | ||||||
| Operating loss |
(18,832 | ) | (3,270 | ) | ||||
| Interest expense, net |
(10,737 | ) | (8,597 | ) | ||||
| Loss on debt extinguishment |
— | (21,820 | ) | |||||
| Other expense, net |
(71 | ) | (120 | ) | ||||
|
|
|
|
|
|||||
| Pretax loss |
(29,640 | ) | (33,807 | ) | ||||
| Provision for income taxes |
5,742 | 9,562 | ||||||
|
|
|
|
|
|||||
| Net loss |
(35,382 | ) | (43,369 | ) | ||||
| Net (loss)/income attributable to non-controlling interests |
(2,091 | ) | 354 | |||||
|
|
|
|
|
|||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (33,291 | ) | $ | (43,723 | ) | ||
|
|
|
|
|
|||||
| Basic and diluted loss per common share attributable to UTi Worldwide Inc. common shareholders |
$ | (0.35 | ) | $ | (0.44 | ) | ||
|
|
|
|
|
|||||
| Number of weighted average common shares outstanding used for per share calculations Basic and diluted shares |
105,630,546 | 104,921,510 | ||||||
Page 7 of 17
UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
| April 30, 2015 | January 31, 2015 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents |
$ | 175,939 | $ | 211,832 | ||||
| Cash held as collateral |
33,742 | 29,068 | ||||||
| Trade receivables, net |
918,558 | 887,084 | ||||||
| Deferred income taxes |
12,914 | 12,596 | ||||||
| Other current assets |
154,186 | 154,756 | ||||||
|
|
|
|
|
|||||
| Total current assets |
1,295,339 | 1,295,336 | ||||||
| Property, plant and equipment, net |
190,206 | 195,523 | ||||||
| Goodwill and other intangible assets, net |
423,823 | 429,590 | ||||||
| Investments |
1,055 | 1,023 | ||||||
| Deferred income taxes |
12,553 | 11,175 | ||||||
| Other non-current assets |
40,195 | 41,305 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,963,171 | $ | 1,973,952 | ||||
|
|
|
|
|
|||||
| LIABILITIES & EQUITY | ||||||||
| Bank lines of credit |
$ | 65,356 | $ | 31,306 | ||||
| Short-term borrowings |
74,336 | 52,825 | ||||||
| Current portion of long-term borrowings |
1,173 | 1,429 | ||||||
| Current portion of capital lease obligations |
12,075 | 11,429 | ||||||
| Trade payables and other accrued liabilities |
661,173 | 698,450 | ||||||
| Income taxes payable |
13,226 | 8,995 | ||||||
| Deferred income taxes |
12,204 | 12,177 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
839,543 | 816,611 | ||||||
| Long-term borrowings, excluding current portion |
367,245 | 366,846 | ||||||
| Capital lease obligations, excluding current portion |
56,879 | 56,455 | ||||||
| Deferred income taxes |
14,385 | 14,204 | ||||||
| Other non-current liabilities |
35,871 | 36,892 | ||||||
| Convertible preference shares |
185,239 | 181,957 | ||||||
| Commitments and contingencies |
||||||||
| UTi Worldwide Inc. shareholders’ equity: |
||||||||
| Common stock |
576,139 | 575,164 | ||||||
| Retained earnings |
56,091 | 92,664 | ||||||
| Accumulated other comprehensive loss |
(178,437 | ) | (179,423 | ) | ||||
|
|
|
|
|
|||||
| Total UTi Worldwide Inc. shareholders’ equity |
453,793 | 488,405 | ||||||
| Non-controlling interests |
10,216 | 12,582 | ||||||
|
|
|
|
|
|||||
| Total equity |
464,009 | 500,987 | ||||||
|
|
|
|
|
|||||
| Total liabilities and equity |
$ | 1,963,171 | $ | 1,973,952 | ||||
|
|
|
|
|
|||||
Page 8 of 17
UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
| Three months ended April 30, | ||||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| OPERATING ACTIVITIES: |
||||||||
| Net loss |
$ | (35,382 | ) | $ | (43,369 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Share-based compensation costs |
1,851 | 3,385 | ||||||
| Depreciation |
13,078 | 13,806 | ||||||
| Amortization of intangible assets |
7,412 | 6,999 | ||||||
| Amortization of debt issuance costs |
976 | 765 | ||||||
| Make-whole payment |
— | 20,830 | ||||||
| Accretion of convertible senior notes |
2,080 | 1,180 | ||||||
| Deferred income taxes |
(1,507 | ) | 488 | |||||
| Uncertain tax positions |
210 | 180 | ||||||
| Gain on disposal of property, plant and equipment |
(676 | ) | (51 | ) | ||||
| Provision for doubtful accounts |
125 | 2,077 | ||||||
| Other |
2,237 | 765 | ||||||
| Net changes in operating assets and liabilities |
(65,761 | ) | (129,192 | ) | ||||
|
|
|
|
|
|||||
| Net cash used in operating activities |
(75,357 | ) | (122,137 | ) | ||||
| INVESTING ACTIVITIES: |
||||||||
| Net increase in cash held as collateral |
(4,674 | ) | (50,025 | ) | ||||
| Purchases of property, plant and equipment, excluding software |
(2,916 | ) | (5,887 | ) | ||||
| Proceeds from disposals of property, plant and equipment |
1,166 | 1,741 | ||||||
| Purchases of software and other intangible assets |
(2,313 | ) | (4,200 | ) | ||||
| Net increase in other non-current assets and other |
171 | 792 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(8,566 | ) | (57,579 | ) | ||||
| FINANCING ACTIVITIES: |
||||||||
| Borrowings under bank lines of credit |
77,000 | 635,543 | ||||||
| Repayments of bank lines of credit |
(43,000 | ) | (201,343 | ) | ||||
| Net borrowings/(repayments) under revolving lines of credit |
761 | (2,133 | ) | |||||
| Net increase/(decrease) in short-term borrowings |
21,358 | (918 | ) | |||||
| Repayments of long-term borrowings |
(1,937 | ) | (202,063 | ) | ||||
| Make-whole payment |
— | (20,830 | ) | |||||
| Debt and preferred shares issuance costs |
— | (24,692 | ) | |||||
| Repayments of capital lease obligations |
(3,463 | ) | (4,417 | ) | ||||
| Distributions to non-controlling interests and other |
(29 | ) | — | |||||
| Ordinary shares settled under share-based compensation plans |
(1,140 | ) | (1,759 | ) | ||||
| Proceeds from issuance of ordinary shares |
65 | 49 | ||||||
|
|
|
|
|
|||||
| Net cash provided by financing activities |
49,615 | 177,437 | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents |
(1,585 | ) | 4,778 | |||||
|
|
|
|
|
|||||
| Net (decrease)/increase in cash and cash equivalents |
(35,893 | ) | 2,499 | |||||
| Cash and cash equivalents at beginning of period |
211,832 | 204,384 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | 175,939 | $ | 206,883 | ||||
|
|
|
|
|
|||||
Page 9 of 17
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Three months ended April 30, 2015 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 622,757 | $ | 350,560 | $ | — | $ | 973,317 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Purchased transportation costs |
485,471 | 158,394 | — | 643,865 | ||||||||||||
| Staff costs |
91,606 | 100,288 | 7,237 | 199,131 | ||||||||||||
| Depreciation |
3,972 | 7,718 | 1,388 | 13,078 | ||||||||||||
| Amortization of intangible assets |
6,631 | 781 | — | 7,412 | ||||||||||||
| Severance and other |
2,428 | 2,296 | 290 | 5,014 | ||||||||||||
| Other operating expenses |
43,736 | 71,113 | 8,800 | 123,649 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
633,844 | 340,590 | 17,715 | 992,149 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating (loss)/income |
$ | (11,087 | ) | $ | 9,970 | $ | (17,715 | ) | (18,832 | ) | ||||||
|
|
|
|
|
|
|
|||||||||||
| Interest expense, net |
(10,737 | ) | ||||||||||||||
| Other expense, net |
(71 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Pretax loss |
(29,640 | ) | ||||||||||||||
| Provision for income taxes |
5,742 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss |
(35,382 | ) | ||||||||||||||
| Net loss attributable to non-controlling interests |
(2,091 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (33,291 | ) | |||||||||||||
|
|
|
|||||||||||||||
Page 10 of 17
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
| Three months ended April 30, 2014 | ||||||||||||||||
| Freight Forwarding |
Contract Logistics and Distribution |
Corporate | Total | |||||||||||||
| Revenues |
$ | 683,870 | $ | 360,018 | $ | — | $ | 1,043,888 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Purchased transportation costs |
516,261 | 158,273 | — | 674,534 | ||||||||||||
| Staff costs |
108,120 | 99,746 | 9,311 | 217,177 | ||||||||||||
| Depreciation |
4,429 | 7,926 | 1,451 | 13,806 | ||||||||||||
| Amortization of intangible assets |
6,051 | 948 | — | 6,999 | ||||||||||||
| Severance and other |
568 | 79 | — | 647 | ||||||||||||
| Other operating expenses |
47,246 | 79,371 | 7,378 | 133,995 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
682,675 | 346,343 | 18,140 | 1,047,158 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income/(loss) |
$ | 1,195 | $ | 13,675 | $ | (18,140 | ) | (3,270 | ) | |||||||
|
|
|
|
|
|
|
|||||||||||
| Interest expense, net |
(8,597 | ) | ||||||||||||||
| Loss on debt extinguishment |
(21,820 | ) | ||||||||||||||
| Other expense, net |
(120 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Pretax loss |
(33,807 | ) | ||||||||||||||
| Provision for income taxes |
9,562 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss |
(43,369 | ) | ||||||||||||||
| Net income attributable to non-controlling interests |
354 | |||||||||||||||
|
|
|
|||||||||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (43,723 | ) | |||||||||||||
|
|
|
|||||||||||||||
Page 11 of 17
UTi Worldwide Inc. Supplemental Financial Information
(in thousands, except per share amounts)
(Unaudited)
| Three months ended | ||||||||||||
| April 30, 2015 | April 30, 2014 | January 31, 2015 | ||||||||||
| Revenues |
$ | 973,317 | $ | 1,043,888 | $ | 964,563 | ||||||
| Purchased transportation costs |
(643,865 | ) | (674,534 | ) | (652,395 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net revenues |
$ | 329,452 | $ | 369,354 | $ | 312,168 | ||||||
|
|
|
|
|
|
|
|||||||
| Three months ended | ||||||||||||
| Freight Forwarding |
April 30, 2015 | April 30, 2014 | January 31, 2015 | |||||||||
| Revenues |
$ | 622,757 | $ | 683,870 | $ | 619,749 | ||||||
| Purchased transportation costs |
(485,471 | ) | (516,261 | ) | (501,405 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net revenues |
$ | 137,286 | $ | 167,609 | $ | 118,344 | ||||||
|
|
|
|
|
|
|
|||||||
| Three months ended | ||||||||||||
| Contract Logistics and Distribution |
April 30, 2015 | April 30, 2014 | January 31, 2015 | |||||||||
| Revenues |
$ | 350,560 | $ | 360,018 | $ | 344,814 | ||||||
| Purchased transportation costs |
(158,394 | ) | (158,273 | ) | (150,990 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net revenues |
$ | 192,166 | $ | 201,745 | $ | 193,824 | ||||||
|
|
|
|
|
|
|
|||||||
Page 12 of 17
UTi Worldwide Inc.
Constant Currency Growth Reconciliation
(Unaudited)
Set forth below is a reconciliation of the Company’s constant currency growth rates and the growth rates based on the Company’s GAAP reported results in the Company’s revenues and net revenues for the three months ended April 30, 2015 and the three months ended January 31, 2015. Constant currency growth is a non-GAAP measure that excludes the impact of foreign currency translation.
| Three months ended April 30, 2015 | ||||||||||||
| Total |
Total Net Change |
+/(-) Currency Impact |
Organic Growth | |||||||||
| Revenues |
(7 | )% | 6 | % | 1 | % | ||||||
| Net revenues |
(11 | )% | 8 | % | (3 | )% | ||||||
| Freight Forwarding |
Three months ended April 30, 2015 | |||||||||||
| Total Net Change |
+/(-) Currency Impact |
Organic Growth | ||||||||||
| Revenues |
(8 | )% | 8 | % | — | % | ||||||
| Net revenues |
(18 | )% | 8 | % | (10 | )% | ||||||
| Contract Logistics and Distribution |
Three months ended April 30, 2015 | |||||||||||
| Total Net Change |
+/(-) Currency Impact |
Organic Growth | ||||||||||
| Revenues |
(3 | )% | 6 | % | 3 | % | ||||||
| Net revenues |
(5 | )% | 7 | % | 2 | % | ||||||
| Three months ended January 31, 2015 | ||||||||||||
| Total |
Total Net Change |
+/(-) Currency Impact |
Organic Growth | |||||||||
| Revenues |
1 | % | 3 | % | 4 | % | ||||||
| Net revenues |
6 | % | 3 | % | 9 | % | ||||||
Page 13 of 17
UTi Worldwide Inc.
EBITDA and Adjusted EBITDA Calculations
(in thousands)
(Unaudited)
| Three months ended April 30, |
||||||||
| 2015 | 2014 | |||||||
| EBITDA: |
||||||||
| Net loss |
$ | (35,382 | ) | $ | (43,369 | ) | ||
| Provision for income taxes |
5,742 | 9,562 | ||||||
| Interest expense, net |
10,737 | 8,597 | ||||||
| Depreciation |
13,078 | 13,806 | ||||||
| Amortization of intangible assets |
7,412 | 6,999 | ||||||
|
|
|
|
|
|||||
| Total EBITDA before adjusting items |
1,587 | (4,405 | ) | |||||
| Adjusting items: |
||||||||
| Other expense, net |
71 | 120 | ||||||
| Loss on debt extinguishment(1) |
— | 21,820 | ||||||
| Legal fees(2) |
1,289 | — | ||||||
| Severance and other(3)(4) |
5,014 | 647 | ||||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 7,961 | $ | 18,182 | ||||
|
|
|
|
|
|||||
| (1) | Loss on debt extinguishment for the three months ended April 30, 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. |
| (2) | During the three months ended April 30, 2015, the Company incurred legal fees of $1,289 associated with the Company’s pending Securities and Exchange Commission investigation and securities class action lawsuit. |
| (3) | During the three months ended April 30, 2015, the Company recorded pre-tax severance of $2,984, primarily related to the Company’s January 2015 Reorganization, and facility exit costs and other expenses of $2,030, associated with the expected exit of a joint venture. |
| (4) | During the three months ended April 30, 2014 the Company recorded pre-tax severance of $647 primarily related to organizational realignment activities. |
Page 14 of 17
UTi Worldwide Inc.
EBITDA and Adjusted EBITDA Calculations
(in thousands)
(Unaudited)
| Three months ended | ||||||||
| April 30, 2015 | January 31, 2015 | |||||||
| EBITDA: |
||||||||
| Net loss |
$ | (35,382 | ) | $ | (105,079 | ) | ||
| Provision for income taxes |
5,742 | 2,370 | ||||||
| Interest expense, net |
10,737 | 10,427 | ||||||
| Depreciation |
13,078 | 13,661 | ||||||
| Amortization of intangible assets |
7,412 | 7,539 | ||||||
|
|
|
|
|
|||||
| Total EBITDA before adjusting items |
1,587 | (71,082 | ) | |||||
| Adjusting items: |
||||||||
| Other expense, net |
71 | 649 | ||||||
| Legal fees(5) |
1,289 | — | ||||||
| Severance and other(6)(7) |
5,014 | 25,199 | ||||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
$ | 7,961 | $ | (45,234 | ) | |||
|
|
|
|
|
|||||
| (5) | During the three months ended April 30, 2015, the Company incurred legal fees of $1,289 associated with the Company’s pending Securities and Exchange Commission investigation and securities class action lawsuit. |
| (6) | During the three months ended April 30, 2015, the Company recorded pre-tax severance of $2,984, primarily related to the Company’s January 2015 Reorganization, and facility exit costs and other expenses of $2,030, associated with the expected exit of a joint venture. |
| (7) | During the three months ended January 31, 2015, the Company recorded pre-tax severance of $8,353, primarily related to the Company’s January 2015 Reorganization, and $7,241 related to organizational realignment activities. In addition, the Company incurred facility exit costs of $2,000, an additional impairment charge of $5,033 associated with the South African Installment Receivable Agreement and other receivables and pre-tax legal settlements of $2,572. |
Page 15 of 17
UTi Worldwide Inc.
Free Cash Flow Calculation
(in thousands)
(Unaudited)
| Three months ended | ||||||||
| April 30, | ||||||||
| 2015 | 2014 | |||||||
| Net cash used in operating activities |
$ | (75,357 | ) | $ | (122,137 | ) | ||
| Purchases of property, plant and equipment, excluding software |
(2,916 | ) | (5,887 | ) | ||||
| Proceeds from disposals of property, plant and equipment |
1,166 | 1,741 | ||||||
| Purchases of software and other intangible assets |
(2,313 | ) | (4,200 | ) | ||||
|
|
|
|
|
|||||
| Free cash flow |
$ | (79,420 | ) | $ | (130,483 | ) | ||
|
|
|
|
|
|||||
Page 16 of 17
UTi Worldwide Inc.
Basic and Diluted Earnings Per Share Calculation
(in thousands)
(Unaudited)
| Three months ended | ||||||||
| April 30, | ||||||||
| 2015 | 2014 | |||||||
| Basic and Diluted Earnings Per Share Calculation |
||||||||
| Net loss attributable to UTi Worldwide Inc. |
$ | (33,291 | ) | $ | (43,723 | ) | ||
| Less: Dividends paid-in kind on Convertible Preference Shares |
(3,282 | ) | (1,946 | ) | ||||
|
|
|
|
|
|||||
| Loss attributable to UTi Worldwide Inc. common shareholders for calculation of basic and diluted earnings per share |
(36,573 | ) | (45,669 | ) | ||||
| Number of weighted average common shares outstanding used for per share calculations Basic and diluted shares |
105,630,546 | 104,921,510 | ||||||
| Basic and diluted loss per common share attributable to UTi Worldwide Inc. common shareholders |
$ | (0.35 | ) | $ | (0.44 | ) | ||
Page 17 of 17