10-QPeriod: Q3 FY2011

EXPEDITORS INTERNATIONAL OF WASHINGTON INC Quarterly Report for Q3 Ended Sep 30, 2011

Filed November 7, 2011For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) reported solid financial results for the nine months ended September 30, 2011, with net earnings attributable to shareholders increasing by 18.2% to $292.8 million compared to the same period in 2010. Total revenues also saw an increase of 6.0% to $4.65 billion. The company demonstrated strong operational efficiency, with operating income growing by 16.2% to $463.3 million. Liquidity remains strong, with cash and cash equivalents of $1.26 billion at the end of the third quarter. The company's balance sheet is robust, with total assets growing to $2.88 billion and shareholders' equity increasing to $1.96 billion. EXPD continues to prioritize shareholder returns, having declared a semi-annual cash dividend of $0.25 per share. Despite macroeconomic uncertainties and ongoing legal proceedings related to alleged anti-competitive behavior, the company's management remains confident in its ability to meet future capital and liquidity requirements, driven by its established business model and dedicated workforce.

Financial Highlights

48 data points
Beta

Revenue

$1.61B

30.7% Gross Margin

Net Income

$106.60M

6.6% Net Margin

EPS (Diluted)

$0.50

Total Assets

$2.88B

Cash & Equivalents

$1.26B

Free Cash Flow

$93.31M

Financial Statements
Beta
Revenue$1.61B
Gross Profit$493.85M
Operating Expenses$1.44B
Operating Income$163.76M
Interest Expense$279K
Net Income$106.60M
EPS (Basic)$0.50
EPS (Diluted)$0.50
Shares Outstanding (Basic)212.26M
Shares Outstanding (Diluted)214.72M

Key Highlights

  • 1Net earnings attributable to shareholders increased by 18.2% to $292.8 million for the nine months ended September 30, 2011, compared to $247.7 million in the prior year.
  • 2Total revenues grew by 6.0% to $4.65 billion for the nine months ended September 30, 2011.
  • 3Operating income showed a significant increase of 16.2% to $463.3 million for the nine months ended September 30, 2011.
  • 4The company maintained a strong liquidity position with $1.26 billion in cash and cash equivalents as of September 30, 2011.
  • 5Shareholders' equity increased to $1.96 billion as of September 30, 2011, reflecting positive retained earnings and capital contributions.
  • 6The company declared a semi-annual cash dividend of $0.25 per share, demonstrating a commitment to returning value to shareholders.
  • 7Despite facing ongoing legal investigations and class-action lawsuits related to alleged anti-competitive practices, the company continues to defend itself vigorously and has not accrued any amounts for potential fines or penalties at this time.

Frequently Asked Questions

For the nine months ended September 30, 2011, Expeditors International reported a significant increase in net earnings attributable to shareholders, up 18.2% to $292.8 million, on total revenues of $4.65 billion, an increase of 6.0%. Operating income also rose by 16.2% to $463.3 million, indicating strong operational performance and efficiency.

The company maintains a strong liquidity position, with cash and cash equivalents totaling $1.26 billion as of September 30, 2011. Total assets increased to $2.88 billion, and shareholders' equity grew to $1.96 billion, reflecting a healthy balance sheet. The company has no long-term debt.

Expeditors International is involved in several government investigations and a class-action lawsuit concerning alleged anti-competitive behavior in the air cargo freight forwarding industry. While the company is vigorously defending itself and has not accrued for any potential fines, the outcomes of these proceedings are uncertain and could materially impact future results of operations and cash flows. The company also notes ongoing competition and the impact of global economic conditions on its business.

The company demonstrates a commitment to shareholder returns through dividend payments, with a declared semi-annual cash dividend of $0.25 per share. Additionally, Expeditors actively engages in share repurchases, utilizing proceeds from stock option exercises and available cash to manage the number of outstanding shares and limit dilution, while also investing in capital expenditures for property, technology, and improvements estimated at $80 million for 2011.