Server: Microsoft-IIS/3.0 Date: Thu, 20 Nov 1997 15:59:35 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Tue, 04 Nov 1997 23:15:23 GMT Content-Length: 14512
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HOUSTON, Texas Nov. 4 -- Eagle USA Airfreight, Inc. (EUSA) today announced record revenues and earnings for the fourth quarter ended September 30, 1997, primarily driven by the rapid expansion of its core freight forwarding business and strong increases in the number of shipments and the total weight of cargo shipped. Revenues for the fourth quarter increased 59 percent to $91.4 million from $57.5 million in the same period of fiscal 1996. Net income for the quarter totaled $5.2 million, a 41 percent increase over $3.7 million in the fourth quarter of fiscal 1996. Earnings per share of $0.28 for the fourth quarter of fiscal 1997 increased 40 percent from $0.20 in the same period of fiscal 1996. The Company estimates that the impact of the UPS strike on the fourth quarter resulted in approximately $6 million in incremental revenue which generated approximately 5% after tax profit for the quarter. Crane added that he does not expect to retain any of the business the Company gained through the UPS strike, as the two companies generally occupy separate niches within the freight transportation marketplace. Revenues for the fiscal year ended September 30, 1997 increased 57 percent to $291.8 million from $185.4 million in fiscal 1996. Net income for the year ended September 30, 1997 totaled $16.8 million, a 46 percent increase over $11.5 million in fiscal 1996. Earnings per share of $0.90 for the year ended September 30, 1997 increased 36 percent from $0.66 in fiscal 1996. Same terminal revenue growth for fiscal year 1997 increased to 49 percent from 29 percent in fiscal year 1996. ![]()
International sales, which accounted for 7 percent of total revenues for the quarter, increased 112 percent in the fourth quarter of fiscal 1997 over the same period in fiscal 1996. For the fiscal year ended September 30, 1997, international revenues increased 112 percent to $20.8 million from $9.8 million in the same period of fiscal year 1996. Fourth quarter gross profit margin was 44.5 percent of revenues versus 43.9 percent in the third quarter of 1997. The primary reasons for margin improvement were increased airfreight shipping volumes, as the number of shipments increased 59 percent and the total weight of cargo shipped increased 15 percent over third quarter 1997, and the continued expansion of the Company's local pick-up and delivery operations, which enabled the Company to capture margins previously paid to third parties. Fourth quarter gross profit margin was improved slightly by the increased traffic from the UPS strike which carried higher yields on a per-pound basis. The strike resulted in higher operating expenses (primarily personnel costs), which offset the higher yields. During the fourth quarter, the Company announced the signing of a two-year contract with Dell Computer Corporation designating the Company as the primary carrier for domestic heavyweight air freight shipments. Also during the fourth quarter, the Company was successful in adding new customers including the Eckerd Corporation, Fred Meyer, Inc. and Quebecor Printing (USA) Corp. The Company also completed the acquisition of Michael Burton Enterprises, a transportation and value-added logistics provider in Columbus, Ohio. The acquisition was completed in late September and is the first acquisition the Company has made since its initial public offering in December 1995. "The challenge to our team in the fourth quarter was accommodating the significant surge in volume through our system as a result of the two-week long UPS strike," said James R. Crane, Chairman and Chief Executive Officer. "That we were able to meet the increased demand without disrupting service to our existing customer base once again validates the strength and flexibility of our operations systems. "Looking ahead to fiscal 1998, I am enthusiastic about the opportunity we have to grow our business further," continued Crane. "The impact of our aggressive marketing efforts and our commitment to outstanding customer service is demonstrated by the record results we turned in during fiscal 1997. We will continue to fine-tune our proven business model as we expand our terminal network, our international business, our personnel and infrastructure for fiscal 1998." Eagle USA Airfreight's dedication to providing superior flexibility and fewer shipping restrictions on a price competitive basis has made it a leading provider of airfreight forwarding and other transportation and logistics services. Its network of 60 terminals features state-of-the-art information systems to maximize cargo management efficiency and customer satisfaction. The Company's shares are traded on the Nasdaq National Market under the symbol "EUSA." The statements in this press release regarding the plans for future opportunities, expansion of terminal network, international business, personnel and infrastructure, new terminals, future growth, future business, operations or results and any other statements which are not historical facts are forward looking statements. Such statements involve risks and uncertainties, including, but not limited to, competition, general economic conditions, ability to manage and continue growth and other factors detailed in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Click to view finacicals:
For more information on Eagle USA Airfreight via facsimile at no cost, simply dial 1-800-PRO-INFO and enter the company ticker EUSA. Return to Press Releases |
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Sherry Amberg
Intercontinental Airport
Voice: (281) 821-4456
© 1997 Eagle USA |