EXPD
$69.21
Expeditors Intl
$2.11
3.14%
Earnings Details
Quarter December 2019
Tuesday, February 18, 2020 8:30:00 AM
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Summary

Expeditors Intl Misses

Expeditors Intl (EXPD) reported Quarter December 2019 earnings of $0.81 per share on revenue of $2.0 billion. The consensus earnings estimate was $0.80 per share on revenue of $2.2 billion. The Earnings Whisper number was $0.85 per share. Revenue fell 8.5% compared to the same quarter a year ago.

Expeditors International of Washington Inc is engaged in the business of providing logistics services. The Company offers its customers a seamless international network supporting the movement and strategic positioning of goods.

Results
Reported Earnings
$0.81
Earnings Whisper
$0.85
Consensus Estimate
$0.80
Reported Revenue
$2.04 Bil
Revenue Estimate
$2.19 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Expeditors Reports Fourth Quarter 2019 EPS of $0.79

SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced fourth quarter 2019 financial results including the following highlights compared to the same quarter of 2018:

  • Diluted Net Earnings Attributable to Shareholders per share (EPS1) decreased 23% to $0.79
  • Net Earnings Attributable to Shareholders decreased 23% to $137 million
  • Operating Income decreased 17% to $180 million
  • Revenues decreased 9% to $2.0 billion
  • Airfreight tonnage volume decreased 6% and ocean container volume decreased 13%

“Our final financial results for the fourth quarter were within the range of earnings guidance we issued last month,” said Jeffrey S. Musser, President and Chief Executive Officer. “As noted in that guidance, we do not believe this comparatively soft fourth quarter is the result of a business performance issue, but is instead more closely tied to the business environment in which we are operating. Average sell rates declined faster than our average buy rates, and both air and ocean volumes declined as slowing trade to and from China impacted overall freight movement around the globe. In the year-ago fourth quarter, by comparison, we believe our volumes benefitted as shippers moved product ahead of scheduled tariff increases.”

Mr. Musser continued: “Our people and operations in China are a very important part of our global network. China imports and exports are interrelated to all of our other geographic regions and, on a stand-alone basis, represented 26% of our consolidated revenue and 27% of operating income in 2019. While we would normally expect softness in the first part of Q1 because of the Chinese Lunar New Year Holidays, this year has been much more pronounced due to the extended closures of factories in China in support of containing the Novel Coronavirus (COVID-19). There remains a great deal of uncertainty as to when factories will return to full production, and those delays will have a significant impact on freight volumes moved in Q1. In addition to traditional supply chain movements, we also believe this may have a further impact to global supply chains through potential shortages of raw materials, parts and supplies.

“Over our 40-year history, we have experienced many events that have disrupted supply chains. We have not, however, experienced a situation where manufacturing capability has been shut-down or severely hampered to such an extent, so it is difficult to predict how this will play out. However, we remain steadfastly optimistic that when the marketplace does return to normal, we are in an excellent position to take advantage of what could be a sharp rebound in trade.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “Operating income in Q4 2019 was negatively impacted by lower volumes and lower average sell rates. The largest decline in volumes and rates were experienced in our China operations where revenues and operating income declined 27% and 23%, respectively, in the fourth quarter. We will continue to make important investments in people and technology to support our long-term growth initiatives.” Mr. Powell noted that the Company’s effective tax rate for the full year of 2019 was 25.6%, compared to 24.3% in 2018. The effect of higher average tax rates of our international subsidiaries, when compared to U.S. federal and state tax rates, were offset by U.S. foreign tax credits and U.S. income tax deductions for Foreign-derived intangible income (FDII). In addition, both 2019 and 2018 benefited from state income tax refunds. These benefits were partially offset by certain expenses that are no longer deductible under the 2017 Tax Act. Mr. Powell reiterated that the Company’s effective tax rate will be largely dependent upon the mix of pre-tax earnings that are generated in its U.S. versus foreign operations, as well as any further interpretations and guidance issued on the tax law in the future.

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

_______________________

1Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements on the following page of this release.

Expeditors International of Washington, Inc.

Fourth Quarter 2019 Earnings Release, February 18, 2020

Financial Highlights for the Three and Twelve months ended December 31, 2019 (Unaudited)

(in 000's of US dollars except per share data)

 

 

Three months ended December 31,

 

 

Twelve months ended December 31,

 

 

 

2019

 

 

2018

 

 

%
Change

 

 

2019

 

 

2018

 

 

%
Change

 

Revenues

 

$

2,044,941

 

 

$

2,235,597

 

 

(9)%

 

 

$

8,175,426

 

 

$

8,138,365

 

 

—%

 

Directly related cost of transportation and other expenses1

 

$

1,398,638

 

 

$

1,554,922

 

 

(10)%

 

 

$

5,538,958

 

 

$

5,517,992

 

 

—%

 

Salaries and other operating expenses2

 

$

465,963

 

 

$

463,668

 

 

—%

 

 

$

1,869,776

 

 

$

1,823,810

 

 

3%

 

Operating income

 

$

180,340

 

 

$

217,007

 

 

(17)%

 

 

$

766,692

 

 

$

796,563

 

 

(4)%

 

Net earnings attributable to shareholders

 

$

137,326

 

 

$

179,210

 

 

(23)%

 

 

$

590,395

 

 

$

618,199

 

 

(4)%

 

Diluted earnings attributable to shareholders per share

 

$

0.79

 

 

$

1.02

 

 

(23)%

 

 

$

3.39

 

 

$

3.48

 

 

(3)%

 

Basic earnings attributable to shareholders per share

 

$

0.81

 

 

$

1.04

 

 

(22)%

 

 

$

3.45

 

 

$

3.55

 

 

(3)%

 

Diluted weighted average shares outstanding

 

 

173,401

 

 

 

175,935

 

 

 

 

 

 

 

174,209

 

 

 

177,833

 

 

 

 

 

Basic weighted average shares outstanding

 

 

170,339

 

 

 

172,493

 

 

 

 

 

 

 

170,899

 

 

 

174,133

 

 

 

 

 

_______________________________

1Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Consolidated Statements of Earnings.

2Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Consolidated Statements of Earnings.

The three and twelve months ended December 31, 2019 include the effect of changing our presentation of certain import services from a net to a gross basis and our revised presentation of destination services, which increased revenues and directly related operating expenses in customs brokerage and other services but did not change operating income.

During the three and twelve months ended December 31, 2019, we repurchased 1.2 million and 5.3 million shares of common stock at an average price of $73.89 and $72.91 per share, respectively. During the three and twelve months ended December 31, 2018, we repurchased 1.3 million and 9.0 million shares of common stock at an average price of $71.82 and $71.61 per share, respectively.

 

 

Employee Full-time Equivalents as
of December 31,

 

 

 

2019

 

 

2018

 

North America

 

 

6,905

 

 

 

6,833

 

Europe

 

 

3,459

 

 

 

3,375

 

North Asia

 

 

2,488

 

 

 

2,607

 

South Asia

 

 

1,697

 

 

 

1,643

 

Middle East, Africa and India

 

 

1,548

 

 

 

1,520

 

Latin America

 

 

855

 

 

 

839

 

Information Systems

 

 

961

 

 

 

912

 

Corporate

 

 

384

 

 

 

352

 

Total

 

 

18,297

 

 

 

18,081

 

 

 

Fourth quarter year-over-year
percentage decrease in:

 

 

 

Airfreight
kilos

 

 

Ocean freight
FEU

 

2019

 

 

 

 

 

 

 

 

October

 

(6)%

 

 

(14)%

 

November

 

(6)%

 

 

(9)%

 

December

 

(7)%

 

 

(14)%

 

Quarter

 

(6)%

 

 

(13)%

 

 

_________________________________

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 21, 2020 will be considered in management's 8-K “Responses to Selected Questions.”

 

Disclaimer on Forward-Looking Statements:

Certain portions of this release contain forward-looking statements, including the impact on freight volumes in the first quarter as a result of the containment measures relating to the Novel Coronavirus (COVID-19) causing extended closures of factories in China; the further impact on downstream supply chains; our ability to take advantage of a rebound in trade; and the impact of the 2017 Tax Act and related interpretations on our effective tax rate. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the length and severity of the Novel Coronavirus (COVID-19); our ability to contain costs; our ability to retain existing and attract new customers; our ability to use our broad market footprint to respond to and take advantage of a sudden shift in manufacturing capacity and associated trade; and risk factors and uncertainties detailed in our Annual Report on Form 10-K for the year ended December 31, 2018 and as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2019.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

 

 

December 31,
2019

 

 

December 31,
2018

 

Assets:

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,230,491

 

 

$

923,735

 

Accounts receivable, net

 

 

1,315,091

 

 

 

1,581,530

 

Deferred contract costs

 

 

131,783

 

 

 

159,510

 

Other

 

 

92,558

 

 

 

70,041

 

Total current assets

 

 

2,769,923

 

 

 

2,734,816

 

Property and equipment, net

 

 

499,344

 

 

 

504,105

 

Operating lease right-of-use assets

 

 

390,035

 

 

 

 

Goodwill

 

 

7,927

 

 

 

7,927

 

Deferred federal and state income taxes, net

 

 

8,034

 

 

 

40,465

 

Other assets, net

 

 

16,621

 

 

 

27,246

 

Total assets

 

$

3,691,884

 

 

$

3,314,559

 

Liabilities:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

735,695

 

 

$

902,259

 

Accrued expenses, primarily salaries and related costs

 

 

189,446

 

 

 

215,813

 

Contract liabilities

 

 

154,183

 

 

 

190,343

 

Current portion of operating lease liabilities

 

 

65,367

 

 

 

 

Federal, state and foreign income taxes

 

 

23,627

 

 

 

18,424

 

Total current liabilities

 

 

1,168,318

 

 

 

1,326,839

 

Noncurrent portion of operating lease liabilities

 

 

326,347

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock, none issued

 

 

 

 

 

 

Common stock, par value $0.01 per share, authorized 640,000. Issued and outstanding: 169,622 shares at December 31, 2019 and 171,582 shares at December 31, 2018

 

 

1,696

 

 

 

1,716

 

Additional paid-in capital

 

 

3,203

 

 

 

1,896

 

Retained earnings

 

 

2,321,316

 

 

 

2,088,707

 

Accumulated other comprehensive loss

 

 

(131,187

)

 

 

(105,481

)

Total shareholders’ equity

 

 

2,195,028

 

 

 

1,986,838

 

Noncontrolling interest

 

 

2,191

 

 

 

882

 

Total equity

 

 

2,197,219

 

 

 

1,987,720

 

Total liabilities and equity

 

$

3,691,884

 

 

$

3,314,559

 

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

 

Three months ended
December 31,

 

 

Twelve months ended
December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

$

757,954

 

 

$

905,606

 

 

$

2,929,882

 

 

$

3,271,932

 

Ocean freight and ocean services

 

 

519,730

 

 

 

615,053

 

 

 

2,217,554

 

 

 

2,251,754

 

Customs brokerage and other services

 

 

767,257

 

 

 

714,938

 

 

 

3,027,990

 

 

 

2,614,679

 

Total revenues

 

 

2,044,941

 

 

 

2,235,597

 

 

 

8,175,426

 

 

 

8,138,365

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

 

569,282

 

 

 

683,410

 

 

 

2,143,999

 

 

 

2,410,793

 

Ocean freight and ocean services

 

 

378,801

 

 

 

464,281

 

 

 

1,613,646

 

 

 

1,664,168

 

Customs brokerage and other services

 

 

450,555

 

 

 

407,231

 

 

 

1,781,313

 

 

 

1,443,031

 

Salaries and related

 

 

352,723

 

 

 

350,839

 

 

 

1,422,315

 

 

 

1,393,259

 

Rent and occupancy

 

 

41,775

 

 

 

39,627

 

 

 

166,182

 

 

 

152,813

 

Depreciation and amortization

 

 

12,494

 

 

 

13,186

 

 

 

50,950

 

 

 

54,019

 

Selling and promotion

 

 

11,150

 

 

 

12,961

 

 

 

44,002

 

 

 

45,346

 

Other

 

 

47,821

 

 

 

47,055

 

 

 

186,327

 

 

 

178,373

 

Total operating expenses

 

 

1,864,601

 

 

 

2,018,590

 

 

 

7,408,734

 

 

 

7,341,802

 

Operating income

 

 

180,340

 

 

 

217,007

 

 

 

766,692

 

 

 

796,563

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

4,680

 

 

 

4,982

 

 

 

22,803

 

 

 

19,153

 

Other, net

 

 

477

 

 

 

256

 

 

 

6,299

 

 

 

2,613

 

Other income (expense), net

 

 

5,157

 

 

 

5,238

 

 

 

29,102

 

 

 

21,766

 

Earnings before income taxes

 

 

185,497

 

 

 

222,245

 

 

 

795,794

 

 

 

818,329

 

Income tax expense

 

 

47,749

 

 

 

42,668

 

 

 

203,778

 

 

 

198,539

 

Net earnings

 

 

137,748

 

 

 

179,577

 

 

 

592,016

 

 

 

619,790

 

Less net earnings attributable to the noncontrolling

interest

 

 

422

 

 

 

367

 

 

 

1,621

 

 

 

1,591

 

Net earnings attributable to shareholders

 

$

137,326

 

 

$

179,210

 

 

$

590,395

 

 

$

618,199

 

Diluted earnings attributable to shareholders per share

 

$

0.79

 

 

$

1.02

 

 

$

3.39

 

 

$

3.48

 

Basic earnings attributable to shareholders per share

 

$

0.81

 

 

$

1.04

 

 

$

3.45

 

 

$

3.55

 

Weighted average diluted shares outstanding

 

 

173,401

 

 

 

175,935

 

 

 

174,209

 

 

 

177,833

 

Weighted average basic shares outstanding

 

 

170,339

 

 

 

172,493

 

 

 

170,899

 

 

 

174,133

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

 

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three months ended
December 31,

 

 

Twelve months ended
December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

137,748

 

 

$

179,577

 

 

$

592,016

 

 

$

619,790

 

Adjustments to reconcile net earnings to net cash from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Recoveries) provisions for losses on accounts receivable

 

 

(454

)

 

 

1,576

 

 

 

(1

)

 

 

3,808

 

Deferred income tax expense (benefit)

 

 

4,499

 

 

 

5,491

 

 

 

4,482

 

 

 

(12,031

)

Stock compensation expense

 

 

12,182

 

 

 

12,976

 

 

 

61,543

 

 

 

56,147

 

Depreciation and amortization

 

 

12,494

 

 

 

13,186

 

 

 

50,950

 

 

 

54,019

 

Other, net

 

 

129

 

 

 

(123

)

 

 

941

 

 

 

647

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in accounts receivable

 

 

19,744

 

 

 

(58,650

)

 

 

265,919

 

 

 

(214,971

)

(Decrease) increase in accounts payable and accrued expenses

 

 

(40,788

)

 

 

(41,824

)

 

 

(181,987

)

 

 

86,036

 

Decrease (increase) in deferred contract costs

 

 

261

 

 

 

9,138

 

 

 

28,811

 

 

 

(42,097

)

(Decrease) increase in contract liabilities

 

 

(164

)

 

 

(5,221

)

 

 

(37,097

)

 

 

43,928

 

Increase (decrease) in income taxes payable, net

 

 

14,812

 

 

 

(10,433

)

 

 

(18,472

)

 

 

(19,691

)

Decrease (increase) in other, net

 

 

4,783

 

 

 

(3,643

)

 

 

4,830

 

 

 

(2,781

)

Net cash from operating activities

 

 

165,246

 

 

 

102,050

 

 

 

771,935

 

 

 

572,804

 

Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(9,079

)

 

 

(9,832

)

 

 

(47,022

)

 

 

(47,474

)

Other, net

 

 

(518

)

 

 

(39

)

 

 

1,007

 

 

 

(925

)

Net cash from investing activities

 

 

(9,597

)

 

 

(9,871

)

 

 

(46,015

)

 

 

(48,399

)

Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

28,055

 

 

 

13,166

 

 

 

148,245

 

 

 

182,732

 

Repurchases of common stock

 

 

(92,138

)

 

 

(92,138

)

 

 

(389,060

)

 

 

(647,898

)

Dividends Paid

 

 

(85,369

)

 

 

(77,660

)

 

 

(170,553

)

 

 

(156,840

)

Payments for taxes related to net share settlement of equity awards

 

 

 

 

 

(33

)

 

 

(6,674

)

 

 

(3,248

)

Distributions to noncontrolling interest

 

 

 

 

 

(75

)

 

 

 

 

 

(688

)

Purchase of noncontrolling interest

 

 

 

 

 

(1,163

)

 

 

 

 

 

(1,796

)

Net cash from financing activities

 

 

(149,452

)

 

 

(157,903

)

 

 

(418,042

)

 

 

(627,738

)

Effect of exchange rate changes on cash and cash equivalents

 

 

8,324

 

 

 

(1,153

)

 

 

(1,122

)

 

 

(24,031

)

Change in cash and cash equivalents

 

 

14,521

 

 

 

(66,877

)

 

 

306,756

 

 

 

(127,364

)

Cash and cash equivalents at beginning of period

 

 

1,215,970

 

 

 

990,612

 

 

 

923,735

 

 

 

1,051,099

 

Cash and cash equivalents at end of period

 

$

1,230,491

 

 

$

923,735

 

 

$

1,230,491

 

 

$

923,735

 

Taxes Paid:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

25,914

 

 

$

55,811

 

 

$

222,083

 

 

$

239,255

 

 

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

 

 

UNITED
STATES

 

 

OTHER
NORTH
AMERICA

 

 

LATIN
AMERICA

 

 

NORTH
ASIA

 

 

SOUTH
ASIA

 

 

EUROPE

 

 

MIDDLE
EAST,
AFRICA
AND
INDIA

 

 

ELIMI-
NATIONS

 

 

CONSOLI-
DATED

 

For the three months ended December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

678,979

 

 

 

89,370

 

 

 

38,925

 

 

 

615,401

 

 

 

188,278

 

 

 

327,879

 

 

 

107,104

 

 

 

(995

)

 

 

2,044,941

 

Directly related cost of transportation and other expenses2

 

$

386,114

 

 

 

54,372

 

 

 

23,148

 

 

 

495,267

 

 

 

137,231

 

 

 

227,248

 

 

 

75,813

 

 

 

(555

)

 

 

1,398,638

 

Salaries and other operating expenses3

 

$

223,703

 

 

 

25,371

 

 

 

14,170

 

 

 

62,813

 

 

 

30,154

 

 

 

83,734

 

 

 

26,459

 

 

 

(441

)

 

 

465,963

 

Operating income

 

$

69,162

 

 

 

9,627

 

 

 

1,607

 

 

 

57,321

 

 

 

20,893

 

 

 

16,897

 

 

 

4,832

 

 

 

1

 

 

 

180,340

 

Identifiable assets at period end

 

$

1,978,307

 

 

 

153,813

 

 

 

72,677

 

 

 

538,526

 

 

 

178,336

 

 

 

551,576

 

 

 

219,953

 

 

 

(1,304

)

 

 

3,691,884

 

Capital expenditures

 

$

5,122

 

 

 

844

 

 

 

485

 

 

 

600

 

 

 

323

 

 

 

1,216

 

 

 

489

 

 

 

 

 

 

9,079

 

Depreciation and amortization

 

$

7,581

 

 

 

494

 

 

 

324

 

 

 

1,227

 

 

 

449

 

 

 

1,945

 

 

 

474

 

 

 

 

 

 

12,494

 

Equity

 

$

1,521,059

 

 

 

65,100

 

 

 

29,148

 

 

 

247,725

 

 

 

94,727

 

 

 

159,308

 

 

 

114,726

 

 

 

(34,574

)

 

 

2,197,219

 

For the three months ended December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

688,943

 

 

 

98,596

 

 

 

34,684

 

 

 

820,917

 

 

 

217,793

 

 

 

352,398

 

 

 

121,482

 

 

 

(99,216

)

 

 

2,235,597

 

Directly related cost of transportation and other expenses2

 

$

394,927

 

 

 

59,154

 

 

 

18,347

 

 

 

675,102

 

 

 

168,313

 

 

 

249,782

 

 

 

88,001

 

 

 

(98,704

)

 

 

1,554,922

 

Salaries and other operating expenses3

 

$

196,788

 

 

 

24,914

 

 

 

14,974

 

 

 

77,439

 

 

 

32,647

 

 

 

89,064

 

 

 

28,349

 

 

 

(507

)

 

 

463,668

 

Operating income

 

$

97,228

 

 

 

14,528

 

 

 

1,363

 

 

 

68,376

 

 

 

16,833

 

 

 

13,552

 

 

 

5,132

 

 

 

(5

)

 

 

217,007

 

Identifiable assets at period end

 

$

1,689,950

 

 

 

161,604

 

 

 

53,542

 

 

 

533,071

 

 

 

152,646

 

 

 

513,744

 

 

 

206,367

 

 

 

3,635

 

 

 

3,314,559

 

Capital expenditures

 

$

5,640

 

 

 

239

 

 

 

143

 

 

 

434

 

 

 

248

 

 

 

1,648

 

 

 

1,480

 

 

 

 

 

 

9,832

 

Depreciation and amortization

 

$

8,114

 

 

 

479

 

 

 

370

 

 

 

1,311

 

 

 

578

 

 

 

1,838

 

 

 

496

 

 

 

 

 

 

13,186

 

Equity

 

$

1,339,673

 

 

 

72,941

 

 

 

26,007

 

 

 

200,371

 

 

 

100,706

 

 

 

157,003

 

 

 

123,228

 

 

 

(32,209

)

 

 

1,987,720

 

 

 

UNITED
STATES

 

 

OTHER
NORTH
AMERICA

 

 

LATIN
AMERICA

 

 

NORTH
ASIA

 

 

SOUTH
ASIA

 

 

EUROPE

 

 

MIDDLE
EAST,
AFRICA
AND
INDIA

 

 

ELIMI-
NATIONS

 

 

CONSOLI-
DATED

 

For the twelve months ended December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

2,712,067

 

 

 

354,405

 

 

 

150,202

 

 

 

2,494,556

 

 

 

743,406

 

 

 

1,280,669

 

 

 

443,487

 

 

 

(3,366

)

 

 

8,175,426

 

Directly related cost of transportation and other expenses2

 

$

1,528,815

 

 

 

212,369

 

 

 

87,297

 

 

 

1,970,662

 

 

 

544,873

 

 

 

884,968

 

 

 

311,997

 

 

 

(2,023

)

 

 

5,538,958

 

Salaries and other operating expenses3

 

$

859,946

 

 

 

101,654

 

 

 

55,512

 

 

 

271,594

 

 

 

127,478

 

 

 

342,073

 

 

 

112,844

 

 

 

(1,325

)

 

 

1,869,776

 

Operating income

 

$

323,306

 

 

 

40,382

 

 

 

7,393

 

 

 

252,300

 

 

 

71,055

 

 

 

53,628

 

 

 

18,646

 

 

 

(18

)

 

 

766,692

 

Identifiable assets at period end

 

$

1,978,307

 

 

 

153,813

 

 

 

72,677

 

 

 

538,526

 

 

 

178,336

 

 

 

551,576

 

 

 

219,953

 

 

 

(1,304

)

 

 

3,691,884

 

Capital expenditures

 

$

28,666

 

 

 

2,353

 

 

 

1,556

 

 

 

1,767

 

 

 

1,558

 

 

 

9,231

 

 

 

1,891

 

 

 

 

 

 

47,022

 

Depreciation and amortization

 

$

31,049

 

 

 

1,881

 

 

 

1,489

 

 

 

5,263

 

 

 

1,912

 

 

 

7,398

 

 

 

1,958

 

 

 

 

 

 

50,950

 

Equity

 

$

1,521,059

 

 

 

65,100

 

 

 

29,148

 

 

 

247,725

 

 

 

94,727

 

 

 

159,308

 

 

 

114,726

 

 

 

(34,574

)

 

 

2,197,219

 

For the twelve months ended December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues1

 

$

2,479,812

 

 

 

355,802

 

 

 

156,854

 

 

 

2,886,322

 

 

 

777,863

 

 

 

1,330,365

 

 

 

464,071

 

 

 

(312,724

)

 

 

8,138,365

 

Directly related cost of transportation and other expenses2

 

$

1,352,924

 

 

 

216,753

 

 

 

94,041

 

 

 

2,315,826

 

 

 

591,925

 

 

 

926,949

 

 

 

330,209

 

 

 

(310,635

)

 

 

5,517,992

 

Salaries and other operating expenses3

 

$

816,817

 

 

 

94,950

 

 

 

53,970

 

 

 

289,015

 

 

 

125,056

 

 

 

337,970

 

 

 

108,131

 

 

 

(2,099

)

 

 

1,823,810

 

Operating income

 

$

310,071

 

 

 

44,099

 

 

 

8,843

 

 

 

281,481

 

 

 

60,882

 

 

 

65,446

 

 

 

25,731

 

 

 

10

 

 

 

796,563

 

Identifiable assets at period end

 

$

1,689,950

 

 

 

161,604

 

 

 

53,542

 

 

 

533,071

 

 

 

152,646

 

 

 

513,744

 

 

 

206,367

 

 

 

3,635

 

 

 

3,314,559

 

Capital expenditures

 

$

21,732

 

 

 

4,259

 

 

 

1,042

 

 

 

3,057

 

 

 

2,182

 

 

 

10,815

 

 

 

4,387

 

 

 

 

 

 

47,474

 

Depreciation and amortization

 

$

33,511

 

 

 

1,847

 

 

 

1,508

 

 

 

5,309

 

 

 

2,257

 

 

 

7,727

 

 

 

1,860

 

 

 

 

 

 

54,019

 

Equity

 

$

1,339,673

 

 

 

72,941

 

 

 

26,007

 

 

 

200,371

 

 

 

100,706

 

 

 

157,003

 

 

 

123,228

 

 

 

(32,209

)

 

 

1,987,720

 

1In 2019, the Company revised its process to record the transfer, between its geographic operating segments, of revenues and the directly related cost of transportation expenses for freight service transactions between Company origin and destination locations. This change better aligns revenue reporting with the location where the services are performed, as well as the transactional reporting being developed as part of the Company’s new accounting systems and processes. Prior year segment revenues have not been revised. The change in presentation had no impact on consolidated or segment operating income. The 2019 results also include the effect of changing the presentation of certain import services from a net to a gross basis, which increased segment revenues and directly related operating expenses but did not change operating income. The impact of these changes on reported segment revenues was immaterial and prior year segment revenues have not been revised.

2Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Consolidated Statements of Earnings.

3Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Consolidated Statements of Earnings.

 

Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510

Source: Expeditors International of Washington, Inc.