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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Expeditors International of Washington Inc | NYSE:EXPD | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 121.65 | 0 | 00:00:00 |
From Nov 2024 to Nov 2024
Expeditors International of Washington, Inc. (NYSE:EXPD) today announced third quarter 2024 financial results including the following comparisons to the same quarter of 2023:
1Diluted earnings attributable to shareholders per share.
NOTE: See Disclaimer on Forward-Looking Statements in this release.
“We have worked hard over this past year to gain additional volumes and grow our business by winning new customers and gaining additional business with current customers,” said Jeffrey S. Musser, President and Chief Executive Officer. “These positive third-quarter results reflect those efforts in securing higher tonnage and volumes, which were further boosted as some shippers pulled freight forward out of concern over port actions and geopolitical disruptions, and in advance of fourth quarter holiday sales. Geopolitical events continued to impact pricing and the flow of freight during the quarter. Ocean transit times remained extended because carriers avoided the Red Sea and were further disrupted by prior concerns over potential port strikes. Air capacity is too scarce and costly to serve as a viable widespread alternative for most shippers.
“Strong growth in air tonnage and ocean volumes had a positive impact on all areas of our business during the quarter. Air tonnage and rates increased across all regions. Direct e-commerce continued to absorb available air freight capacity and boost rates on North Asia exports, and manufacturing relocations and sea-to-air conversions drove higher rates on exports from South Asia. Higher volumes moving through our network led to an increase in fees for customs brokerage and other ancillary services, in addition to new road freight business and growth in order management services. All in all, I would be hard pressed to point to an area of our business where our people did not perform at their highest level.
“We would again caution that our ability to see much beyond our day-to-day levels of activity remains challenging. We believe that ocean rates may decline if demand softens and capacity increases, particularly if commerce on the Red Sea returns to normal. We also believe that global freight markets and pricing are likely to remain volatile for some time. Unpredictable events seem to occur with such increased regularity as to make us wonder if disruption is the new state of normal. Regardless, we remain focused on servicing our current customers and gaining market share, while keeping costs in check.”
Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We handled increased volumes and tonnage in the third quarter and executed well throughout our network, while keeping headcount flat and controlling operating expenses. Our measure of operating efficiency (operating income as a percentage of revenue less directly related cost of transportation and other expenses) is now back to our 30% target for the year to date. We continue to control and carefully manage our cash, while working to improve operational efficiencies and return capital to investors.”
Mr. Powell noted that the Company repurchased $140 million in common stock during the third quarter of 2024, and $603 million year to date.
Expeditors is a global logistics company headquartered in Bellevue, 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.
Disclaimer on Forward-Looking Statements:
Certain statements contained in this news release are “forward-looking statements,” based on management’s views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding inflation; continued growth in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets, including uncertainty due to conflicts in the Middle East and Red Sea; port actions and other labor disruptions; new capacity in the marketplace; longer ocean transit times; strong e-commerce demand in the air market; and volatile rates. Future financial performance could differ materially because of factors such as: our ability to secure higher air tonnage and ocean volumes; our ability to keep headcount and other costs in check while continuing to generate efficiency that meets our historical expectations; the alignment of our variable compensation structure with performance; our ability to enhance and bolster our network security; that management is able to grow the business and explore new areas for profitable growth; our ability to leverage the strength of our carrier relationships; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. Geo-political risks, port actions and other labor disruptions, and the current uncertainty in the global economy could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform and potential litigation and contingencies, including risks associated with tax audits, as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company’s regulatory filings with the Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company’s most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.
Expeditors International of Washington, Inc.
Third Quarter 2024 Earnings Release, November 5, 2024
Financial Summary for the three months ended September 30, 2024 and 2023 (Unaudited)
(in 000's of US dollars except share data)
Three months ended September 30,
Nine months ended September 30,
2024
2023
% Change
2024
2023
% Change
Revenues
$
3,000,131
$
2,190,001
37
%
$
7,645,810
$
7,022,342
9
%
Directly related cost of transportation and other expenses 1
$
2,093,964
$
1,402,111
49
%
$
5,166,652
$
4,540,396
14
%
Salaries and other operating expenses 2
$
604,643
$
571,821
6
%
$
1,738,939
$
1,741,411
(0
)%
Operating income
$
301,524
$
216,069
40
%
$
740,219
$
740,535
(0
)%
Net earnings attributable to shareholders
$
229,574
$
171,353
34
%
$
574,195
$
594,164
(3
)%
Diluted earnings attributable to shareholders per share
$
1.63
$
1.16
41
%
$
4.04
$
3.92
3
%
Basic earnings attributable to shareholders per share
$
1.63
$
1.16
41
%
$
4.06
$
3.95
3
%
Diluted weighted average shares outstanding
141,027
148,001
142,288
151,619
Basic weighted average shares outstanding
140,417
147,099
141,540
150,543
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 Condensed 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 Condensed Consolidated Statements of Earnings.
During the three and nine months ended September 30, 2024 we repurchased 1.2 million and 5.1 million shares of common stock at an average price of $118.47 and $119.21 per share. During the three and nine months ended September 30, 2023 we repurchased 2.6 million and 10.5 million shares of common stock at an average price of $116.29 and $113.97 per share.
Employee Full-time Equivalents as of
September 30, 2024
September 30, 2023
North America
6,920
6,975
Europe
3,838
3,811
North Asia
2,271
2,290
South Asia
1,776
1,709
Middle East, Africa and India
1,386
1,440
Latin America
780
753
Information Systems
1,303
1,244
Corporate
416
403
Total
18,690
18,625
Third quarter year-over-year percentage increase (decrease) in:
2024
Airfreight kilos
Ocean freight FEU
July
20%
8%
August
17%
14%
September
20%
15%
Quarter
19%
12%
Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 8, 2024 will be considered in management's 8-K “Responses to Selected Questions.”
___________________________ NOTE: See Disclaimer on Forward-Looking Statements in this release.
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
September 30, 2024
December 31, 2023
Assets:
Current Assets:
Cash and cash equivalents
$
1,293,173
$
1,512,883
Accounts receivable, less allowance for credit loss of $5,903 at September 30, 2024 and $6,550 at December 31, 2023
2,176,959
1,532,599
Deferred contract costs
431,640
218,807
Other
181,273
170,907
Total current assets
4,083,045
3,435,196
Property and equipment, less accumulated depreciation and amortization $624,562 at September 30, 2024 and $597,473 at December 31, 2023
468,594
479,225
Operating lease right-of-use assets
525,810
516,280
Goodwill
7,927
7,927
Deferred federal and state income taxes, net
69,789
63,690
Other assets, net
15,752
21,491
Total assets
$
5,170,917
$
4,523,809
Liabilities:
Current Liabilities:
Accounts payable
$
1,240,174
$
860,856
Accrued liabilities, primarily salaries and related costs
470,723
447,336
Contract liabilities
532,289
280,909
Current portion of operating lease liabilities
106,832
99,749
Federal, state and foreign income taxes
25,728
15,562
Total current liabilities
2,375,746
1,704,412
Noncurrent portion of operating lease liabilities
436,001
427,984
Shareholders’ Equity:
Preferred stock, none issued
—
—
Common stock, par value $0.01 per share. Issued and outstanding: 139,971 shares at September 30, 2024 and 143,866 shares at December 31, 2023
1,400
1,439
Additional paid-in capital
4,307
—
Retained earnings
2,540,978
2,580,968
Accumulated other comprehensive loss
(189,978
)
(192,057
)
Total shareholders’ equity
2,356,707
2,390,350
Noncontrolling interest
2,463
1,063
Total equity
2,359,170
2,391,413
Total liabilities and equity
$
5,170,917
$
4,523,809
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Revenues:
Airfreight services
$
986,950
$
724,331
$
2,606,647
$
2,380,405
Ocean freight and ocean services
1,017,618
560,281
2,240,079
1,851,389
Customs brokerage and other services
995,563
905,389
2,799,084
2,790,548
Total revenues
3,000,131
2,190,001
7,645,810
7,022,342
Operating Expenses:
Airfreight services
740,356
516,519
1,923,115
1,707,568
Ocean freight and ocean services
783,827
387,670
1,675,931
1,277,159
Customs brokerage and other services
569,781
497,922
1,567,606
1,555,669
Salaries and related
450,308
412,505
1,289,901
1,290,911
Rent and occupancy
61,024
58,387
181,873
174,224
Depreciation and amortization
15,774
15,607
45,914
46,374
Selling and promotion
7,589
6,149
22,366
18,847
Other
69,948
79,173
198,885
211,055
Total operating expenses
2,698,607
1,973,932
6,905,591
6,281,807
Operating income
301,524
216,069
740,219
740,535
Other Income (Expense):
Interest income
9,917
17,156
36,699
53,723
Other, net
973
(1,334
)
4,599
4,394
Other income, net
10,890
15,822
41,298
58,117
Earnings before income taxes
312,414
231,891
781,517
798,652
Income tax expense
82,488
61,048
206,040
206,018
Net earnings
229,926
170,843
575,477
592,634
Less net earnings (losses) attributable to the noncontrolling interest
352
(510
)
1,282
(1,530
)
Net earnings attributable to shareholders
$
229,574
$
171,353
$
574,195
$
594,164
Diluted earnings attributable to shareholders per share
$
1.63
$
1.16
$
4.04
$
3.92
Basic earnings attributable to shareholders per share
$
1.63
$
1.16
$
4.06
$
3.95
Weighted average diluted shares outstanding
141,027
148,001
142,288
151,619
Weighted average basic shares outstanding
140,417
147,099
141,540
150,543
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Operating Activities:
Net earnings
$
229,926
$
170,843
$
575,477
$
592,634
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for (recoveries) losses on accounts receivable
(582
)
1,411
1,456
2,316
Deferred income tax benefit
(1,057
)
(6,418
)
(5,680
)
(7,942
)
Stock compensation expense
9,760
15,879
47,836
46,962
Depreciation and amortization
15,774
15,607
45,914
46,374
Other, net
162
2,673
4,032
6,396
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(301,167
)
(53,722
)
(647,794
)
629,205
Increase (decrease) in accounts payable and accrued liabilities
107,535
40,919
402,818
(311,990
)
(Increase) decrease in deferred contract costs
(30,657
)
(56,917
)
(216,977
)
28,870
Increase (decrease) in contract liabilities
50,527
74,701
254,902
(33,549
)
Increase (decrease) in income taxes payable, net
20,331
(4,017
)
13,163
(97,743
)
Increase in other, net
(10,580
)
(10,979
)
(1,502
)
(6,695
)
Net cash from operating activities
89,972
189,980
473,645
894,838
Investing Activities:
Purchase of property and equipment
(12,291
)
(7,993
)
(30,415
)
(28,600
)
Other, net
(225
)
10
(62
)
(209
)
Net cash from investing activities
(12,516
)
(7,983
)
(30,477
)
(28,809
)
Financing Activities:
Proceeds (payments) on borrowings on lines of credit, net
10,445
6,913
(5,538
)
(6,683
)
Proceeds from issuance of common stock
53,256
61,841
67,734
80,305
Repurchases of common stock
(140,031
)
(298,103
)
(602,855
)
(1,199,294
)
Dividends paid
—
—
(102,638
)
(102,263
)
Payments for taxes related to net share settlement of equity awards
—
—
(15,348
)
(19,501
)
Net cash from financing activities
(76,330
)
(229,349
)
(658,645
)
(1,247,436
)
Effect of exchange rate changes on cash and cash equivalents
20,194
(11,807
)
(4,233
)
(13,296
)
Change in cash and cash equivalents
21,320
(59,159
)
(219,710
)
(394,703
)
Cash and cash equivalents at beginning of period
1,271,853
1,698,587
1,512,883
2,034,131
Cash and cash equivalents at end of period
$
1,293,173
$
1,639,428
$
1,293,173
$
1,639,428
Taxes Paid:
Income taxes
$
63,046
$
61,603
$
196,649
$
306,059
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 September 30, 2024:
Revenues
$
854,679
114,264
61,981
914,417
445,308
433,660
177,145
(1,323
)
3,000,131
Directly related cost of transportation and other expenses1
$
443,930
67,626
38,973
763,781
369,905
279,235
131,098
(584
)
2,093,964
Salaries and other operating expenses2
$
253,452
35,261
18,605
86,566
51,307
126,917
33,283
(748
)
604,643
Operating income
$
157,297
11,377
4,403
64,070
24,096
27,508
12,764
9
301,524
Identifiable assets at period end
$
2,611,417
192,370
108,985
727,724
376,283
863,840
319,627
(29,329
)
5,170,917
Capital expenditures
$
9,299
198
101
296
839
1,548
10
—
12,291
Equity
$
1,628,893
35,825
42,670
221,519
124,387
182,515
164,665
(41,304
)
2,359,170
For the three months ended September 30, 2023:
Revenues
$
784,503
106,293
47,327
515,340
207,006
410,904
119,849
(1,221
)
2,190,001
Directly related cost of transportation and other expenses1
$
421,432
63,671
28,409
398,681
145,292
263,524
81,643
(541
)
1,402,111
Salaries and other operating expenses2
$
261,323
38,275
16,405
66,546
42,138
120,436
27,351
(653
)
571,821
Operating income
$
101,748
4,347
2,513
50,113
19,576
26,944
10,855
(27
)
216,069
Identifiable assets at period end
$
2,572,404
200,711
110,708
512,746
217,018
726,729
260,619
(22,814
)
4,578,121
Capital expenditures
$
3,762
302
84
168
409
1,369
1,899
—
7,993
Equity
$
1,797,123
46,264
54,096
225,229
91,712
154,617
161,882
(39,449
)
2,491,474
UNITED STATES
OTHER NORTH AMERICA
LATIN AMERICA
NORTH ASIA
SOUTH ASIA
EUROPE
MIDDLE EAST, AFRICA AND INDIA
ELIMI- NATIONS
CONSOLI- DATED
For the nine months ended September 30, 2024:
Revenues
$
2,385,392
331,837
151,787
2,096,709
960,970
1,241,432
481,600
(3,917
)
7,645,810
Directly related cost of transportation and other expenses1
$
1,270,981
199,710
88,077
1,702,401
757,167
796,205
353,839
(1,728
)
5,166,652
Salaries and other operating expenses2
$
772,835
102,684
49,920
224,588
135,303
363,718
92,099
(2,208
)
1,738,939
Operating income
$
341,576
29,443
13,790
169,720
68,500
81,509
35,662
19
740,219
Identifiable assets at period end
$
2,611,417
192,370
108,985
727,724
376,283
863,840
319,627
(29,329
)
5,170,917
Capital expenditures
$
17,775
2,172
383
933
2,938
4,860
1,354
30,415
Equity
$
1,628,893
35,825
42,670
221,519
124,387
182,515
164,665
(41,304
)
2,359,170
For the nine months ended September 30, 2023:
Revenues
$
2,535,945
326,398
151,994
1,607,788
631,001
1,386,284
386,524
(3,592
)
7,022,342
Directly related cost of transportation and other expenses1
$
1,387,511
201,984
90,139
1,238,996
437,392
924,592
261,482
(1,700
)
4,540,396
Salaries and other operating expenses2
$
785,282
108,892
52,172
205,976
132,984
373,004
85,003
(1,902
)
1,741,411
Operating income
$
363,152
15,522
9,683
162,816
60,625
88,688
40,039
10
740,535
Identifiable assets at period end
$
2,572,404
200,711
110,708
512,746
217,018
726,729
260,619
(22,814
)
4,578,121
Capital expenditures
$
15,829
932
360
1,110
744
6,688
2,937
—
28,600
Equity
$
1,797,123
46,264
54,096
225,229
91,712
154,617
161,882
(39,449
)
2,491,474
1 Directly 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 Condensed 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 Condensed Consolidated Statements of Earnings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104783314/en/
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
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