EX-99.1 2 expd-ex991_6.htm EX-99.1 expd-ex991_6.htm

 

Exhibit 99.1

EARNINGS RELEASE

 

By:

 

Expeditors International of Washington, Inc.

 

 

 

 

1015 Third Avenue

 

 

 

 

Seattle, Washington 98104

 

 

 

 

 

 

 

 

 

 

 

CONTACTS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jeffrey S. Musser

 

Bradley S. Powell

 

Geoffrey Buscher

 

 

President and Chief Executive Officer

 

Senior Vice President and Chief Financial Officer

 

Director - Investor Relations

 

 

(206) 674-3433

 

(206) 674-3412

 

(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:

 

Diluted Net Earnings Attributable to Shareholders per share (EPS1) increased 47% to $1.16

 

Net Earnings Attributable to Shareholders increased 45% to $199 million

 

Operating Income increased 56% to $282 million

 

Revenues increased 55% to $3.2 billion

 

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.

 

_______________________

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)

 

Three months ended December 31,

 

 

Twelve months ended December 31,

 

 

 

2020

 

 

2019

 

 

% Change

 

 

2020

 

 

2019

 

 

% Change

 

Revenues

 

$

3,169,188

 

 

$

2,044,941

 

 

55%

 

 

$

10,116,481

 

 

$

8,175,426

 

 

24%

 

Directly related cost of transportation and other expenses1

 

$

2,340,603

 

 

$

1,398,638

 

 

67%

 

 

$

7,188,790

 

 

$

5,538,958

 

 

30%

 

Salaries and other operating expenses2

 

$

546,774

 

 

$

465,963

 

 

17%

 

 

$

1,987,254

 

 

$

1,869,776

 

 

6%

 

Operating income

 

$

281,811

 

 

$

180,340

 

 

56%

 

 

$

940,437

 

 

$

766,692

 

 

23%

 

Net earnings attributable to shareholders

 

$

198,620

 

 

$

137,326

 

 

45%

 

 

$

696,140

 

 

$

590,395

 

 

18%

 

Diluted earnings attributable to shareholders per share

 

$

1.16

 

 

$

0.79

 

 

47%

 

 

$

4.07

 

 

$

3.39

 

 

20%

 

Basic earnings attributable to shareholders per share

 

$

1.17

 

 

$

0.81

 

 

44%

 

 

$

4.14

 

 

$

3.45

 

 

20%

 

Diluted weighted average shares outstanding

 

 

171,692

 

 

 

173,401

 

 

 

 

 

 

 

170,896

 

 

 

174,209

 

 

 

 

 

Basic weighted average shares outstanding

 

 

169,473

 

 

 

170,339

 

 

 

 

 

 

 

168,333

 

 

 

170,899

 

 

 

 

 

 

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.

 

Employee Full-time Equivalents as of December 31,

 

 

 

2020

 

 

2019

 

North America

 

 

6,724

 

 

 

6,905

 

Europe

 

 

3,492

 

 

 

3,459

 

North Asia

 

 

2,398

 

 

 

2,488

 

South Asia

 

 

1,631

 

 

 

1,697

 

Middle East, Africa and India

 

 

1,497

 

 

 

1,548

 

Latin America

 

 

784

 

 

 

855

 

Information Systems

 

 

983

 

 

 

961

 

Corporate

 

 

399

 

 

 

384

 

Total

 

 

17,908

 

 

 

18,297

 

 

 

Fourth quarter year-over-year

percentage increase in:

 

 

 

Airfreight

kilos

 

 

Ocean freight

FEU

 

2020

 

 

 

 

 

 

 

 

October

 

5%

 

 

15%

 

November

 

12%

 

 

20%

 

December

 

13%

 

 

21%

 

Quarter

 

10%

 

 

19%

 

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)

 

 

December 31, 2020

 

 

December 31, 2019

 

Assets:

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,527,791

 

 

$

1,230,491

 

Accounts receivable, net

 

 

1,998,055

 

 

 

1,315,091

 

Deferred contract costs

 

 

327,448

 

 

 

131,783

 

Other

 

 

110,250

 

 

 

92,558

 

Total current assets

 

 

3,963,544

 

 

 

2,769,923

 

Property and equipment, net

 

 

506,425

 

 

 

499,344

 

Operating lease right-of-use assets

 

 

432,723

 

 

 

390,035

 

Goodwill

 

 

7,927

 

 

 

7,927

 

Deferred federal and state income taxes, net

 

 

 

 

 

8,034

 

Other assets, net

 

 

16,884

 

 

 

16,621

 

Total assets

 

$

4,927,503

 

 

$

3,691,884

 

Liabilities:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,136,859

 

 

$

735,695

 

Accrued expenses, primarily salaries and related costs

 

 

257,021

 

 

 

189,446

 

Contract liabilities

 

 

379,722

 

 

 

154,183

 

Current portion of operating lease liabilities

 

 

74,004

 

 

 

65,367

 

Federal, state and foreign income taxes

 

 

45,437

 

 

 

23,627

 

Total current liabilities

 

 

1,893,043

 

 

 

1,168,318

 

Noncurrent portion of operating lease liabilities

 

 

364,185

 

 

 

326,347

 

Deferred federal and state income taxes, net

 

 

7,048

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock, none issued

 

 

 

 

 

 

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

 

 

1,693

 

 

 

1,696

 

Additional paid-in capital

 

 

157,496

 

 

 

3,203

 

Retained earnings

 

 

2,600,201

 

 

 

2,321,316

 

Accumulated other comprehensive loss

 

 

(99,753

)

 

 

(131,187

)

Total shareholders’ equity

 

 

2,659,637

 

 

 

2,195,028

 

Noncontrolling interest

 

 

3,590

 

 

 

2,191

 

Total equity

 

 

2,663,227

 

 

 

2,197,219

 

Total liabilities and equity

 

$

4,927,503

 

 

$

3,691,884

 

 

 

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)

 

 

Three months ended December 31,

 

 

Twelve months ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

$

1,547,223

 

 

$

757,954

 

 

$

4,784,402

 

 

$

2,929,882

 

Ocean freight and ocean services

 

 

755,250

 

 

 

519,730

 

 

 

2,353,247

 

 

 

2,217,554

 

Customs brokerage and other services

 

 

866,715

 

 

 

767,257

 

 

 

2,978,832

 

 

 

3,027,990

 

Total revenues

 

 

3,169,188

 

 

 

2,044,941

 

 

 

10,116,481

 

 

 

8,175,426

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airfreight services

 

 

1,228,254

 

 

 

569,282

 

 

 

3,679,185

 

 

 

2,143,999

 

Ocean freight and ocean services

 

 

577,600

 

 

 

378,801

 

 

 

1,762,754

 

 

 

1,613,646

 

Customs brokerage and other services

 

 

534,749

 

 

 

450,555

 

 

 

1,746,851

 

 

 

1,781,313

 

Salaries and related

 

 

427,344

 

 

 

352,723

 

 

 

1,538,104

 

 

 

1,422,315

 

Rent and occupancy

 

 

43,480

 

 

 

41,775

 

 

 

169,863

 

 

 

166,182

 

Depreciation and amortization

 

 

14,339

 

 

 

12,494

 

 

 

56,959

 

 

 

50,950

 

Selling and promotion

 

 

4,135

 

 

 

11,150

 

 

 

18,436

 

 

 

44,002

 

Other

 

 

57,476

 

 

 

47,821

 

 

 

203,892

 

 

 

186,327

 

Total operating expenses

 

 

2,887,377

 

 

 

1,864,601

 

 

 

9,176,044

 

 

 

7,408,734

 

Operating income

 

 

281,811

 

 

 

180,340

 

 

 

940,437

 

 

 

766,692

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,545

 

 

 

4,680

 

 

 

10,415

 

 

 

22,803

 

Other, net

 

 

551

 

 

 

477

 

 

 

5,712

 

 

 

6,299

 

Other income, net

 

 

2,096

 

 

 

5,157

 

 

 

16,127

 

 

 

29,102

 

Earnings before income taxes

 

 

283,907

 

 

 

185,497

 

 

 

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