Circle International Group, Inc. Releases First Quarter 1998 Results; Net Income and EPS for the Quarter up 21%.SAN FRANCISCO--(BUSINESS WIRE)--May 4, 1998--Circle International Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM:CRCL CRCL Creatinine Clearance CRCL Circle CRCL Coalition to Restore Coastal Louisiana CRCL Center for Research in Computational Linguistics CRCL Columbia River Conservation League ) reported financial results for the three months ended March 31, 1998. Net income for the quarter increased 21% to $5.6 million from $4.6 million in the comparable period of 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 21% to $0.34 per share from $0.28 per share in the first quarter of 1997. Revenue for the quarter was $155.1 million compared to $155.5 million for the same period in 1997. Net revenue, which represents revenue less freight consolidation costs, increased 6% to $65.2 million. The effects of the stronger US dollar when translating foreign results into US dollars for reporting purposes negatively impacted revenue by 10% and net revenue by 7%. Peter Gibert, chairman and chief executive officer, commented, "Following a 20% increase in net income for 1997, we are pleased to report a first quarter 1998 earnings increase of 21%. We are especially pleased with the revenue and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increases in our Asian and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. units. Despite the effects of the stronger US dollar, both areas showed strong results. Our Asia Pacific Region continues to be our fastest growing area both in local currency and US dollar results and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). has emerged with strength from a number of key economic
initiatives."North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. did feel the effects of the economic developments in Asia with air and ocean export freight forwarding revenue decreases which were offset by lower carrier costs and increased import activity. Our 21% US dollar net income growth is based on both solid underlying strength in our traditional product segments and continued outstanding performance by our unconsolidated affiliates. The bottom line also benefits from a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest income comparison to 1997, as our strong cash flows from operations allowed us to further reduce debt. Gibert also said, "We are winning new customers and expanding existing relationships as evidenced by our new freight and customs business with a leading toy maker and by our appointment as exclusive global freight transportation provider for office equipment manufacturer Pitney Bowes  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . . These and other recent gains are important signs that our sales and marketing strategies are on target." Gibert continued, "On the strategic front, we have recently completed important initiatives in several parts of the world. Our new joint venture in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. is another step in our plans for growth throughout Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . The new partnership with Irish Express Cargo, along with the acquisition of the air and ocean freight business of Reindear Freight International, expands our logistics strength in Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. and brings a new dimension to the Company's operations in Europe. Furthermore our joint venture with Renfreight, the leading global logistics player in Southern Africa
n. An abrupt change or step, especially in method, information, or knowledge: "War was going to take a quantum leap; it would never be the same" Garry Wills. for Circle in this exciting trade arena. Renfreight is part of Rennies Group Limited, owned by Anglo An·glo also an·glo n. pl. An·glos 1. Informal An Anglo-American. 2. An English-speaking person, especially a white North American who is not of Hispanic or French descent. American and Safren, two of the major South African conglomerates A Conglomerate is the term used to describe a large corporation that consists of diverse divisions. Conglomerate companies tend to be large multinational corporations with operations in multiple regions of the world. . These ongoing investments combined with our internal sales initiatives will undoubtedly expand our revenue base." Except for historical information contained herein, the matters set forth in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are dependent on certain risks and uncertainties including, but not limited to, such factors as market demand, pricing risks associated with operations outside the U.S., changing economic conditions, the effect of the Company's accounting policies, and other risk factors detailed in the Company's SEC filings. Headquartered in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Circle International Group is a full-service transportation, information and logistics provider with more than 340 offices in over 100 countries around the world. Celebrating 100 years of service in 1998. A fax copy of this release and other information about Circle International Group can be obtained by calling 888/329-6089 or via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.circleintl.com. -0-
CIRCLE INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited, in thousands, except per share amounts)
Three Months Ended
March 31,
1998 1997
Revenue $ 155,142 $ 155,452
Freight consolidation costs 89,957 93,786
--------- ---------
Net revenue 65,185 61,666
Other costs and expenses:
Salaries and related 35,029 33,695
Operating, selling and administrative 23,624 22,061
--------- ---------
Total other costs and expenses 58,653 55,756
--------- ---------
Income from operations 6,532 5,910
Other income/(expense):
Interest, net 665 (136)
Income from affiliates 1,298 977
Other, net 352 574
--------- ---------
Total other income/(expense), net 2,315 1,415
--------- ---------
Income before taxes 8,847 7,325
Taxes on income 3,273 2,734
--------- ---------
Net income $ 5,574 $ 4,591
========= =========
Net income per share:
Basic $ 0.34 $ 0.29
========= =========
Diluted $ 0.34 $ 0.28
========= =========
Weighted average common shares outstanding:
Basic 16,223 15,942
========= =========
Diluted 16,523 16,268
========= =========
CIRCLE INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
PRODUCT AND GEOGRAPHIC SEGMENT INFORMATION
(unaudited, in thousands)
Three Months Ended March 31,
1998 1997
Revenue
Air freight forwarding 99,418 64% 99,373 64%
Ocean freight forwarding 23,869 15% 27,004 17%
Customs brokerage and other 31,855 21% 29,075 19%
---------------- ----------------
Total 155,142 100% 155,452 100%
================ ================
Net Revenue
Air freight forwarding 24,552 38% 23,568 38%
Ocean freight forwarding 8,778 13% 9,023 15%
Customs brokerage and other 31,855 49% 29,075 47%
---------------- ----------------
Total 65,185 100% 61,666 100%
================ ================
Three Months Ended March 31,
1998 1997
Revenue
Americas 84,364 55% 93,003 60%
Europe & Middle East 34,696 22% 31,707 20%
Asia & South Pacific 36,082 23% 30,742 20%
---------------- ----------------
Total 155,142 100% 155,452 100%
================ ================
Net Revenue
Americas 35,609 55% 34,390 56%
Europe & Middle East 17,986 27% 16,604 27%
Asia & South Pacific 11,590 18% 10,672 17%
---------------- ----------------
Total 65,185 100% 61,666 100%
================ ================
CONTACT: Circle International Group Janice Kerti, 415/978-0783 (Senior Vice President & CFO See Chief Financial Officer. ) or Mark R. Kailer, 415/978-0590 (Senior Manager, Treasury Services Treasury services is a function of an investment bank which provides transaction, investment and information services for chief financial officers, treasurers. Treasury services concentrates and invests client money, and provides trade finance and logistics solutions as well as ) |
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