Expeditors International Of Washington Inc 8-K, filed Feb 16, 2021
Expeditors International Of Washington Inc (EXPD)
About this 8-K
Expeditors International Of Washington Inc filed this 8-K on February 16, 2021.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report:
(Exact name of registrant as specified in its charter)
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(Commission File No.) |
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(Address of principal executive offices) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 16, 2021, Expeditors International of Washington, Inc., a Washington corporation, issued a press release announcing fourth quarter 2020 financial results. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
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The following items are filed as exhibits to this report: |
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Press release, dated February 16, 2021 issued by Expeditors International of Washington, Inc. |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. |
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February 16, 2021 |
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/S/ Bradley S. Powell |
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Bradley S. Powell, |
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Senior Vice President and Chief Financial Officer |
Exhibit 99.1
EARNINGS RELEASE
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By: |
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Expeditors International of Washington, Inc. |
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1015 Third Avenue |
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Seattle, Washington 98104 |
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CONTACTS: |
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Jeffrey S. Musser |
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Bradley S. Powell |
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Geoffrey Buscher |
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President and Chief Executive Officer |
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Senior Vice President and Chief Financial Officer |
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Director - Investor Relations |
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(206) 674-3433 |
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(206) 674-3412 |
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(206) 892-4510 |
FOR IMMEDIATE RELEASE
EXPEDITORS REPORTS FOURTH QUARTER 2020 EPS OF $1.16
SEATTLE, WASHINGTON - February 16, 2021, Expeditors International of Washington, Inc. (NASDAQ:EXPD) today announced fourth quarter 2020 financial results including the following highlights compared to the same quarter of 2019:
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Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 47% to $1.16 |
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Net Earnings Attributable to Shareholders increased 45% to $199 million |
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Operating Income increased 56% to $282 million |
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Revenues increased 55% to $3.2 billion |
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Airfreight tonnage volume increased 10% and ocean container volume increased 19% |
“We moved more freight in the fourth quarter of 2020 than in any other quarter in our history,” said Jeffrey S. Musser, President and Chief Executive Officer. “We set Company bests in airfreight tonnage and ocean containers shipped, as well as in revenue, operating income and net earnings. All 17,500 people in our international network performed at levels we have never experienced before and in one of the most challenging operating environments in our 40-year history. I cannot thank our people enough and am tremendously proud to be part of an organization capable of performing at these levels while facing so many disruptions due to the COVID-19 pandemic. I credit our strong knowledge-based culture and our ability to collectively work as one team as primary factors in our success.
“Air buy and sell rates were elevated and volatile during the quarter, and supply and demand remained severely out of alignment, as demand for certain goods, particularly from North Asia, drove record high air tonnage. Air capacity remained extremely tight, as passenger flights have not returned to anywhere near their pre-COVID-19 pandemic levels. We anticipate that air supply/demand and pricing conditions are likely to remain unsettled well into 2021.
“Our ocean services business also experienced significant marketplace imbalance during the quarter, as demand soared and volumes increased, particularly on exports from North and South Asia, which drove higher average buy and sell rates. In addition, port congestion from labor and equipment shortages have significantly disrupted sailing schedules. We expect the pressure on buy rates to remain elevated until those conditions subside.
“In addition to our diverse workforce and our inclusive culture, our solid performance was largely based on the strength of our carrier relationships – both in air and ocean. Here, too, I applaud the extra focus and dedication of our people to keep those relationships strong and to secure available space for our customers in such unpredictable conditions. The marketplace remains very fluid. Despite some signs of improved COVID-19 conditions in certain parts of the world, supply chains continue to be disrupted. We remain focused on keeping our people safe, first and foremost, while continuing to serve our customers at the very highest level.”
Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “We also experienced strong growth in Customs Brokerage, Order Management, Transcon and Distribution, as our customers’ businesses improved and we on-boarded new customers. These latest results are particularly striking in comparison to the fourth quarter of 2019, when average sell rates had declined faster than our average buy rates, and both air and ocean volumes fell as slowing trade to and from China impacted overall freight movement around the globe just as the earliest effects of COVID-19 were being felt. While we are unable to predict how ongoing disruptions related to COVID-19 will affect our future operations or financial results going forward, we do not expect these unprecedented operating conditions to persist long-term. We will continue to make important investments in people, processes and technology, as well as to invest in our strategic efforts to explore new areas for profitable growth.”
Mr. Powell noted that the Company’s effective tax rate for the full year of 2020 was 27.0%, compared to 25.6% in 2019. Earnings of our international subsidiaries, which on average have higher effective tax rates when compared to U.S. Federal and State tax rates, were proportionally higher in 2020 than in the U.S.
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.
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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 2020 Earnings Release, February 16, 2021
Financial Highlights for the Three and Twelve months ended December 31, 2020 (Unaudited)
(in 000's of US dollars except per share data)
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Three months ended December 31, |
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Twelve months ended December 31, |
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2020 |
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2019 |
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% Change |
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2020 |
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2019 |
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% Change |
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Revenues |
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$ |
3,169,188 |
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$ |
2,044,941 |
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55% |
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$ |
10,116,481 |
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$ |
8,175,426 |
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24% |
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Directly related cost of transportation and other expenses1 |
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$ |
2,340,603 |
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$ |
1,398,638 |
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67% |
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$ |
7,188,790 |
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$ |
5,538,958 |
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30% |
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Salaries and other operating expenses2 |
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$ |
546,774 |
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$ |
465,963 |
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17% |
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$ |
1,987,254 |
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$ |
1,869,776 |
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6% |
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Operating income |
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$ |
281,811 |
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$ |
180,340 |
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56% |
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$ |
940,437 |
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$ |
766,692 |
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23% |
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Net earnings attributable to shareholders |
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$ |
198,620 |
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$ |
137,326 |
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45% |
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$ |
696,140 |
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$ |
590,395 |
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18% |
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Diluted earnings attributable to shareholders per share |
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$ |
1.16 |
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$ |
0.79 |
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47% |
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$ |
4.07 |
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$ |
3.39 |
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20% |
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Basic earnings attributable to shareholders per share |
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$ |
1.17 |
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$ |
0.81 |
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44% |
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$ |
4.14 |
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$ |
3.45 |
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20% |
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Diluted weighted average shares outstanding |
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171,692 |
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173,401 |
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170,896 |
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174,209 |
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Basic weighted average shares outstanding |
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169,473 |
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170,339 |
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168,333 |
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170,899 |
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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 twelve months ended December 31, 2019 includes the effect of changing our presentation of certain import services from a net to a gross basis and our revised presentation of destination services that started in the second quarter of 2019, 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, 2020, we repurchased 0.2 million and 4.6 million shares of common stock at an average price of $90.81 and $72.26 per share, respectively. 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.
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Employee Full-time Equivalents as of December 31, |
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2020 |
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2019 |
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North America |
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6,724 |
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6,905 |
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Europe |
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3,492 |
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3,459 |
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North Asia |
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2,398 |
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2,488 |
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South Asia |
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1,631 |
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1,697 |
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Middle East, Africa and India |
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1,497 |
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1,548 |
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Latin America |
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784 |
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855 |
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Information Systems |
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983 |
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961 |
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Corporate |
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399 |
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384 |
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Total |
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17,908 |
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18,297 |
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Fourth quarter year-over-year percentage increase in: |
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Airfreight kilos |
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Ocean freight FEU |
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2020 |
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October |
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5% |
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15% |
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November |
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12% |
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20% |
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December |
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13% |
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21% |
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Quarter |
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10% |
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19% |
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Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 19, 2021 will be considered in management's 8-K “Responses to Selected Questions.”
Disclaimer on Forward-Looking Statements:
Certain statements contained in this news release are “forward-looking statements,” such as statements relating to management’s views with respect to future events and underlying assumptions that involve risks and uncertainties, including statements such as our expectations of continued volatility in air pricing, ongoing pressure for elevated buy rates in the ocean services business, that the COVID-19-related operating conditions will not continue long-term, and that the Company expects to continue making investments in people, processes and technology. Future financial performance could differ materially because of factors such as: our ability to perform at these levels while facing several disruptions due to the COVID-19 pandemic, including employee retention and their health and safety; our ability to execute during port congestion due to labor and equipment shortages and disrupted sailing schedules; the timing of passenger flights returning close to their pre-COVID-19 levels; the impact on our ocean volumes; continued volatility in airfreight and ocean buy and sell rates; our access to carrier capacity; our ability to keep our global offices open and operating; our ability to execute our business continuity plans; the strength of our financial position and our ability to continue to make investments in our strategic initiatives; our ability to remain a strong, healthy, unified and resilient organization; and the future impact of changes in the mix of domestic and foreign income on our effective tax rate. The COVID-19 pandemic 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 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, 2019 and in “Item 1A. Risk Factors” of the Company’s most recent Quarterly Report on Form 10-Q. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2020. 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.
AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
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December 31, 2020 |
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December 31, 2019 |
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Assets: |
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Current Assets: |
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Cash and cash equivalents |
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$ |
1,527,791 |
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$ |
1,230,491 |
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Accounts receivable, net |
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1,998,055 |
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1,315,091 |
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Deferred contract costs |
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327,448 |
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131,783 |
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Other |
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110,250 |
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92,558 |
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Total current assets |
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3,963,544 |
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2,769,923 |
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Property and equipment, net |
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506,425 |
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499,344 |
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Operating lease right-of-use assets |
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432,723 |
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390,035 |
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Goodwill |
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7,927 |
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7,927 |
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Deferred federal and state income taxes, net |
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— |
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8,034 |
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Other assets, net |
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16,884 |
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16,621 |
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Total assets |
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$ |
4,927,503 |
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$ |
3,691,884 |
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Liabilities: |
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Current Liabilities: |
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Accounts payable |
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$ |
1,136,859 |
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$ |
735,695 |
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Accrued expenses, primarily salaries and related costs |
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257,021 |
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189,446 |
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Contract liabilities |
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379,722 |
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154,183 |
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Current portion of operating lease liabilities |
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74,004 |
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65,367 |
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Federal, state and foreign income taxes |
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45,437 |
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23,627 |
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Total current liabilities |
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1,893,043 |
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1,168,318 |
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Noncurrent portion of operating lease liabilities |
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364,185 |
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326,347 |
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Deferred federal and state income taxes, net |
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7,048 |
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— |
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Commitments and contingencies |
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Shareholders’ Equity: |
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Preferred stock, none issued |
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— |
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— |
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Common stock, par value $0.01 per share, authorized 640,000. Issued and outstanding: 169,294 shares at December 31, 2020 and 169,622 shares at December 31, 2019 |
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1,693 |
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1,696 |
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Additional paid-in capital |
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157,496 |
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3,203 |
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Retained earnings |
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2,600,201 |
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2,321,316 |
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Accumulated other comprehensive loss |
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(99,753 |
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(131,187 |
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Total shareholders’ equity |
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2,659,637 |
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2,195,028 |
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Noncontrolling interest |
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3,590 |
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2,191 |
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Total equity |
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2,663,227 |
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2,197,219 |
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Total liabilities and equity |
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$ |
4,927,503 |
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$ |
3,691,884 |
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16-February-2021 |
Expeditors International of Washington, Inc. |
Page 3 of 6 |
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
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Three months ended December 31, |
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Twelve months ended December 31, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenues: |
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Airfreight services |
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$ |
1,547,223 |
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$ |
757,954 |
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$ |
4,784,402 |
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$ |
2,929,882 |
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Ocean freight and ocean services |
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755,250 |
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519,730 |
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2,353,247 |
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2,217,554 |
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Customs brokerage and other services |
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866,715 |
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767,257 |
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2,978,832 |
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3,027,990 |
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Total revenues |
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3,169,188 |
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2,044,941 |
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10,116,481 |
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8,175,426 |
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Operating Expenses: |
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Airfreight services |
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1,228,254 |
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569,282 |
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3,679,185 |
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2,143,999 |
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Ocean freight and ocean services |
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577,600 |
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378,801 |
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1,762,754 |
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1,613,646 |
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Customs brokerage and other services |
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534,749 |
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450,555 |
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1,746,851 |
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1,781,313 |
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Salaries and related |
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427,344 |
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352,723 |
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1,538,104 |
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1,422,315 |
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Rent and occupancy |
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43,480 |
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41,775 |
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169,863 |
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166,182 |
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Depreciation and amortization |
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14,339 |
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12,494 |
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56,959 |
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50,950 |
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Selling and promotion |
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4,135 |
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11,150 |
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18,436 |
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44,002 |
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Other |
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57,476 |
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47,821 |
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203,892 |
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186,327 |
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Total operating expenses |
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2,887,377 |
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1,864,601 |
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9,176,044 |
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7,408,734 |
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Operating income |
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281,811 |
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180,340 |
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940,437 |
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766,692 |
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Other Income (Expense): |
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Interest income |
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1,545 |
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4,680 |
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10,415 |
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22,803 |
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Other, net |
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551 |
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477 |
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5,712 |
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6,299 |
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Other income, net |
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2,096 |
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5,157 |
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16,127 |
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29,102 |
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Earnings before income taxes |
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283,907 |
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185,497 |
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|
|
956,564 |
|
|
|
795,794 |
|
|
Income tax expense |
|
|
84,382 |
|
|
|
47,749 |
|
|
|
258,350 |
|
|
|
203,778 |
|
|
Net earnings |
|
|
199,525 |
|
|
|
137,748 |
|
|
|
698,214 |
|
|
|
592,016 |
|
|
Less net earnings attributable to the noncontrolling interest |
|
|
905 |
|
|
|
422 |
|
|
|
2,074 |
|
|
|
1,621 |
|
|
Net earnings attributable to shareholders |
|
$ |
198,620 |
|
|
$ |
137,326 |
|
|
$ |
696,140 |
|
|
$ |
590,395 |
|
|
Diluted earnings attributable to shareholders per share |
|
$ |
1.16 |
|
|
$ |
0.79 |
|
|
$ |
4.07 |
|
|
$ |
3.39 |
|
|
Basic earnings attributable to shareholders per share |
|
$ |
1.17 |
|
|
$ |
0.81 |
|
|
$ |
4.14 |
|
|
$ |
3.45 |
|
|
Weighted average diluted shares outstanding |
|
|
171,692 |
|
|
|
173,401 |
|
|
|
170,896 |
|
|
|
174,209 |
|
|
Weighted average basic shares outstanding |
|
|
169,473 |
|
|
|
170,339 |
|
|
|
168,333 |
|
|
|
170,899 |
|
|
16-February-2021 |
Expeditors International of Washington, Inc. |
Page 4 of 6 |
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, |
|
||||||||||
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
|
Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
199,525 |
|
|
$ |
137,748 |
|
|
$ |
698,214 |
|
|
$ |
592,016 |
|
|
Adjustments to reconcile net earnings to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions for losses (recoveries) on accounts receivable |
|
|
977 |
|
|
|
(454 |
) |
|
|
5,584 |
|
|
|
(1 |
) |
|
Deferred income tax expense |
|
|
5,499 |
|
|
|
4,499 |
|
|
|
8,371 |
|
|
|
4,482 |
|
|
Stock compensation expense |
|
|
17,407 |
|
|
|
12,182 |
|
|
|
62,498 |
|
|
|
61,543 |
|
|
Depreciation and amortization |
|
|
14,339 |
|
|
|
12,494 |
|
|
|
56,959 |
|
|
|
50,950 |
|
|
Other, net |
|
|
490 |
|
|
|
129 |
|
|
|
3,960 |
|
|
|
941 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
|
(372,753 |
) |
|
|
19,744 |
|
|
|
(647,193 |
) |
|
|
265,919 |
|
|
Increase (decrease) in accounts payable and accrued expenses |
|
|
228,555 |
|
|
|
(40,788 |
) |
|
|
430,495 |
|
|
|
(181,987 |
) |
|
(Increase) decrease in deferred contract costs |
|
|
(89,560 |
) |
|
|
261 |
|
|
|
(189,447 |
) |
|
|
28,811 |
|
|
Increase (decrease) in contract liabilities |
|
|
105,455 |
|
|
|
(164 |
) |
|
|
217,699 |
|
|
|
(37,097 |
) |
|
Increase (decrease) in income taxes payable, net |
|
|
19,146 |
|
|
|
14,812 |
|
|
|
8,502 |
|
|
|
(18,472 |
) |
|
Decrease (increase) in other, net |
|
|
12,612 |
|
|
|
4,783 |
|
|
|
(630 |
) |
|
|
4,830 |
|
|
Net cash from operating activities |
|
|
141,692 |
|
|
|
165,246 |
|
|
|
655,012 |
|
|
|
771,935 |
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(10,124 |
) |
|
|
(9,079 |
) |
|
|
(47,543 |
) |
|
|
(47,022 |
) |
|
Other, net |
|
|
553 |
|
|
|
(518 |
) |
|
|
1,516 |
|
|
|
1,007 |
|
|
Net cash from investing activities |
|
|
(9,571 |
) |
|
|
(9,597 |
) |
|
|
(46,027 |
) |
|
|
(46,015 |
) |
|
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
12,329 |
|
|
|
28,055 |
|
|
|
186,345 |
|
|
|
148,245 |
|
|
Repurchases of common stock |
|
|
(18,162 |
) |
|
|
(92,138 |
) |
|
|
(332,387 |
) |
|
|
(389,060 |
) |
|
Dividends Paid |
|
|
(88,114 |
) |
|
|
(85,369 |
) |
|
|
(174,929 |
) |
|
|
(170,553 |
) |
|
Payments for taxes related to net share settlement of equity awards |
|
|
— |
|
|
|
— |
|
|
|
(10,566 |
) |
|
|
(6,674 |
) |
|
Net cash from financing activities |
|
|
(93,947 |
) |
|
|
(149,452 |
) |
|
|
(331,537 |
) |
|
|
(418,042 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
24,107 |
|
|
|
8,324 |
|
|
|
19,852 |
|
|
|
(1,122 |
) |
|
Change in cash and cash equivalents |
|
|
62,281 |
|
|
|
14,521 |
|
|
|
297,300 |
|
|
|
306,756 |
|
|
Cash and cash equivalents at beginning of period |
|
|
1,465,510 |
|
|
|
1,215,970 |
|
|
|
1,230,491 |
|
|
|
923,735 |
|
|
Cash and cash equivalents at end of period |
|
$ |
1,527,791 |
|
|
$ |
1,230,491 |
|
|
$ |
1,527,791 |
|
|
$ |
1,230,491 |
|
|
Taxes Paid: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
$ |
59,607 |
|
|
$ |
25,914 |
|
|
$ |
239,849 |
|
|
$ |
222,083 |
|
|
16-February-2021 |
Expeditors International of Washington, Inc. |
Page 5 of 6 |
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, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues1 |
|
$ |
800,663 |
|
|
|
94,153 |
|
|
|
41,527 |
|
|
|
1,300,215 |
|
|
|
329,050 |
|
|
|
458,012 |
|
|
|
146,596 |
|
|
|
(1,028 |
) |
|
|
3,169,188 |
|
|
Directly related cost of transportation and other expenses2 |
|
$ |
460,288 |
|
|
|
60,625 |
|
|
|
23,422 |
|
|
|
1,103,063 |
|
|
|
256,677 |
|
|
|
325,878 |
|
|
|
111,179 |
|
|
|
(529 |
) |
|
|
2,340,603 |
|
|
Salaries and other operating expenses3 |
|
$ |
245,721 |
|
|
|
26,367 |
|
|
|
11,894 |
|
|
|
96,498 |
|
|
|
40,251 |
|
|
|
101,631 |
|
|
|
24,905 |
|
|
|
(493 |
) |
|
|
546,774 |
|
|
Operating income |
|
$ |
94,654 |
|
|
|
7,161 |
|
|
|
6,211 |
|
|
|
100,654 |
|
|
|
32,122 |
|
|
|
30,503 |
|
|
|
10,512 |
|
|
|
(6 |
) |
|
|
281,811 |
|
|
Identifiable assets at period end |
|
$ |
2,532,324 |
|
|
|
186,204 |
|
|
|
85,085 |
|
|
|
876,856 |
|
|
|
272,106 |
|
|
|
752,589 |
|
|
|
240,984 |
|
|
|
(18,645 |
) |
|
|
4,927,503 |
|
|
Capital expenditures |
|
$ |
3,328 |
|
|
|
194 |
|
|
|
66 |
|
|
|
417 |
|
|
|
1,229 |
|
|
|
2,976 |
|
|
|
1,914 |
|
|
|
— |
|
|
|
10,124 |
|
|
Depreciation and amortization |
|
$ |
9,235 |
|
|
|
498 |
|
|
|
284 |
|
|
|
1,283 |
|
|
|
493 |
|
|
|
2,091 |
|
|
|
455 |
|
|
|
— |
|
|
|
14,339 |
|
|
Equity |
|
$ |
1,928,945 |
|
|
|
67,243 |
|
|
|
32,273 |
|
|
|
241,155 |
|
|
|
121,411 |
|
|
|
196,637 |
|
|
|
114,369 |
|
|
|
(38,806 |
) |
|
|
2,663,227 |
|
|
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 |
|
|
|
|
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, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues1 |
|
$ |
2,776,546 |
|
|
|
328,427 |
|
|
|
156,163 |
|
|
|
3,838,332 |
|
|
|
989,633 |
|
|
|
1,544,130 |
|
|
|
487,011 |
|
|
|
(3,761 |
) |
|
|
10,116,481 |
|
|
Directly related cost of transportation and other expenses2 |
|
$ |
1,568,461 |
|
|
|
192,875 |
|
|
|
93,249 |
|
|
|
3,157,086 |
|
|
|
738,648 |
|
|
|
1,080,741 |
|
|
|
359,682 |
|
|
|
(1,952 |
) |
|
|
7,188,790 |
|
|
Salaries and other operating expenses3 |
|
$ |
877,117 |
|
|
|
100,687 |
|
|
|
48,114 |
|
|
|
332,978 |
|
|
|
149,269 |
|
|
|
375,900 |
|
|
|
104,968 |
|
|
|
(1,779 |
) |
|
|
1,987,254 |
|
|
Operating income |
|
$ |
330,968 |
|
|
|
34,865 |
|
|
|
14,800 |
|
|
|
348,268 |
|
|
|
101,716 |
|
|
|
87,489 |
|
|
|
22,361 |
|
|
|
(30 |
) |
|
|
940,437 |
|
|
Identifiable assets at period end |
|
$ |
2,532,324 |
|
|
|
186,204 |
|
|
|
85,085 |
|
|
|
876,856 |
|
|
|
272,106 |
|
|
|
752,589 |
|
|
|
240,984 |
|
|
|
(18,645 |
) |
|
|
4,927,503 |
|
|
Capital expenditures |
|
$ |
31,604 |
|
|
|
1,886 |
|
|
|
564 |
|
|
|
2,202 |
|
|
|
2,264 |
|
|
|
6,394 |
|
|
|
2,629 |
|
|
|
— |
|
|
|
47,543 |
|
|
Depreciation and amortization |
|
$ |
37,081 |
|
|
|
1,946 |
|
|
|
1,194 |
|
|
|
4,961 |
|
|
|
1,876 |
|
|
|
8,029 |
|
|
|
1,872 |
|
|
|
— |
|
|
|
56,959 |
|
|
Equity |
|
$ |
1,928,945 |
|
|
|
67,243 |
|
|
|
32,273 |
|
|
|
241,155 |
|
|
|
121,411 |
|
|
|
196,637 |
|
|
|
114,369 |
|
|
|
(38,806 |
) |
|
|
2,663,227 |
|
|
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 |
|
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 and other 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. 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.
|
16-February-2021 |
Expeditors International of Washington, Inc. |
Page 6 of 6 |