10-QPeriod: Q1 FY2013

EXPEDITORS INTERNATIONAL OF WASHINGTON INC Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 3, 2013For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) reported its first-quarter 2013 results, showing a slight increase in net earnings attributable to shareholders, rising to $80.3 million from $76.7 million in the prior year's first quarter. Diluted earnings per share also saw an improvement, growing to $0.39 from $0.36. Total revenues remained relatively flat year-over-year, indicating mixed performance across its service segments. While airfreight services experienced a slight decline in net revenues, ocean freight and customs brokerage services showed modest growth. The company's balance sheet remained strong, with total assets increasing to $3.02 billion and total shareholders' equity growing to $2.10 billion. Cash and cash equivalents significantly increased to $1.39 billion, reflecting strong operational cash flow generation of $165.3 million. The company maintained a debt-free balance sheet, underscoring its solid financial footing and liquidity. Management expressed confidence in the company's ability to meet its liquidity and capital requirements for the foreseeable future.

Financial Highlights

42 data points
Beta

Revenue

$1.41B

31.5% Gross Margin

Net Income

$80.31M

5.7% Net Margin

EPS (Diluted)

$0.39

Total Assets

$3.02B

Cash & Equivalents

$1.39B

Free Cash Flow

$165.26M

Financial Statements
Beta
Revenue$1.41B
Gross Profit$445.28M
Operating Expenses$1.28B
Operating Income$128.52M
Net Income$80.31M
EPS (Basic)$0.39
EPS (Diluted)$0.39
Shares Outstanding (Basic)206.48M
Shares Outstanding (Diluted)207.61M

Key Highlights

  • 1Net earnings attributable to shareholders increased by 4.7% to $80.3 million for Q1 2013, compared to $76.7 million in Q1 2012.
  • 2Diluted earnings per share rose to $0.39 in Q1 2013 from $0.36 in Q1 2012, reflecting improved profitability on a per-share basis.
  • 3Total revenues were largely flat, amounting to $1.41 billion for both Q1 2013 and Q1 2012, indicating stable top-line performance.
  • 4Airfreight services net revenue saw a slight decrease of 1.5% to $155.5 million, while ocean freight and ocean services net revenue declined by 2.0% to $100.6 million.
  • 5Customs brokerage and other services net revenue increased by 2.0% to $189.3 million, showing growth in this segment.
  • 6Cash and cash equivalents increased significantly by $133.8 million to $1.39 billion at the end of Q1 2013, driven by strong operating cash flows.
  • 7The company maintained a debt-free balance sheet, with total shareholders' equity growing to $2.10 billion.

Frequently Asked Questions

Total revenues remained virtually unchanged, at $1.41 billion for both the three months ended March 31, 2013, and March 31, 2012. While airfreight services revenues slightly decreased, ocean freight and customs brokerage and other services revenues showed some growth.

Expeditors reported an increase in net earnings attributable to shareholders, rising to $80.3 million in the first quarter of 2013 from $76.7 million in the first quarter of 2012. Diluted earnings per share also improved to $0.39 from $0.36.

Expeditors maintains a strong liquidity position, with cash and cash equivalents increasing to $1.39 billion at March 31, 2013. The company has no long-term debt, indicating a robust and debt-free financial structure.

Customs brokerage and other services represented the largest portion of net revenues at 42%, showing a 2.0% increase. Airfreight services accounted for 35% of net revenues, with a slight 1.5% decrease, while ocean freight and ocean services represented 23% of net revenues, declining by 2.0%.