Circle International Group, Inc. Releases Fourth Quarter 1997 Results.SAN FRANCISCO--(BUSINESS WIRE)--Feb. 24, 1998-- Net Income for the Quarter up 16% Net Income for the Year up 20% 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 record earnings for the fourth quarter and year ended December December: see month. 31, 1997. Net income for the quarter increased 16% to $7.6 million from $6.6 million in the comparable period of 1996. Basic earnings per share increased 15% to $0.47 per share from $0.41 per share in the fourth quarter of 1996. 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 also increased 15% to $0.46 per share from $0.40. Revenue for the quarter was $182.2 million compared to $161.3 million, up 13% from the same period in 1996. Net revenue, which represents revenue less freight consolidation costs, increased 6% to $70.3 million from $66.3 million in 1996. For the twelve months ended December 31, 1997, net income increased 20% to $25.9 million compared to $21.6 million for the corresponding period of 1996, and basic earnings per share rose 18% to $1.61 from $1.36 in 1996. Diluted earnings per share also increased 18% to $1.58 from $1.34. Revenue for the twelve months ended December 31, 1997 was $669.1 million compared to $595.4 million, up 12% from 1996, and net revenue increased 7% to $262.8 million from $245.6 million in 1996. Peter Gibert, Chairman and Chief Executive Officer, commented, "The company achieved record earnings for the quarter and the year, a significant accomplishment. The Asian currency volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the had a negative effect on the translation of local currency revenues and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. into dollars and also on U.S. exports, although the latter were offset by increases in Asian exports. However, the fact remains that Asia continues to be our fastest growing net revenue and profit region, in both local currency and US dollar terms. We are already seeing sharp increases in the local business of many of our Asian units and we expect this growth to continue and benefit our results in 1998." "Our investments in unconsolidated logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. operations continue to reward us with exceptional growth," said Gibert, adding that "with additional foreign exchange gains from our hard currency receivable positions in Asia, we achieved record net income for the quarter and for the year, up 16% and 20% respectively, above last year." Gibert continued, "As we look at our plans for 1998, we are continuing our sales efforts to focus on the decision maker at destination, especially from Asia to the US. We are training our people to provide consistent service and innovative solutions to our customers by acting as their transportation and logistics consultants, and improving our technology to ensure we have the tools for growth. In addition, we recently concluded negotiations to form a 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. , which will bring us greater product, management and geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. strength, as well as adding to both net revenue and profits in 1998. We are also very excited about additional transactions with similar benefits in other locations, which are in the final stages of contract negotiation." 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. Circle International Group, Inc. serves the international transportation and logistics needs of customers globally, maintaining a network of offices and agents in over 350 locations in 96 countries. A fax of this and previous releases and other information about Circle International can be obtained by calling (888) 329-6089 or on 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 http://circleintl.com. -0-
CIRCLE INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited, in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
-------- -------- -------- --------
Revenue $182,212 $161,313 $669,057 $595,433
Freight consolidation costs 111,889 94,986 406,304 349,815
-------- -------- -------- --------
Net revenue 70,323 66,327 262,753 245,618
-------- -------- -------- --------
Other costs and expenses:
Salaries and related 36,792 35,663 137,525 133,228
Operating, selling and
administrative 25,255 22,211 93,386 82,852
------ -------- -------- --------
Total other costs and
expenses 62,047 57,874 230,911 216,080
-------- -------- -------- --------
Income from operations 8,276 8,453 31,842 29,538
Other Income/(expense):
Interest, net 920 613 1,225 2,017
Income from affiliates 1,856 479 5,782 1,562
Other, net 756 737 1,528 1,673
------ -------- -------- --------
Total other income/
(expense), net 3,532 1,829 8,535 5,252
-------- -------- -------- --------
Income before taxes
on income 11,808 10,282 40,377 34,790
Taxes on income 4,210 3,715 14,506 13,175
-------- -------- -------- --------
Net income $ 7,598 $ 6,567 $ 25,871 $ 21,615
======== ======== ======== ========
Net Income Per Share:
Basic $ 0.47 $ 0.41 $ 1.61 $ 1.36
======== ======== ======== ========
Diluted $ 0.46 $ 0.40 $ 1.58 $ 1.34
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 16,181 15,880 16,052 15,900
======== ======== ======== ========
Diluted 16,530 16,249 16,420 16,155
======== ======== ======== ========
Dividends declared
per share $ 0.135 $ 0.120 $ 0.270 $ 0.240
======== ======== ======== ========
The Company has adopted SFAS No. 128 "Earnings per Share" requiring
presentation of basic and diluted earnings per share. All prior
periods reported have been restated.
CIRCLE INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
PRODUCT AND GEOGRAPHIC SEGMENT INFORMATION
(unaudited, in thousands)
Three Months Ended
December 31,
1997 1996
------------------- --------------------
Revenue
Air freight forwarding $ 119,608 66% $ 101,280 63%
Ocean freight forwarding 27,084 15% 27,547 17%
Customs brokerage and other 35,520 19% 32,486 20%
------------------- --------------------
Total $ 182,212 100% $ 161,313 100%
=================== ====================
Net Revenue
Air freight forwarding $ 25,252 36% $ 24,242 37%
Ocean freight forwarding 9,551 14% 9,599 14%
Customs brokerage and other 35,520 50% 32,486 49%
------------------- --------------------
Total $ 70,323 100% $ 66,327 100%
=================== ====================
Twelve Months Ended
December 31,
1997 1996
------------------- -------------------
Revenue
Air freight forwarding $ 432,741 65% $ 375,507 63%
Ocean freight forwarding 108,530 16% 103,095 17%
Customs brokerage and other 127,786 19% 116,831 20%
------------------- -------------------
Total $ 669,057 100% $ 595,433 100%
=================== ===================
Net Revenue
Air freight forwarding $ 97,866 37% $ 93,686 38%
Ocean freight forwarding 37,101 14% 35,101 14%
Customs brokerage and other 127,786 49% 116,831 48%
------------------- -------------------
Total $ 262,753 100% $ 245,618 100%
=================== ===================
Three Months Ended
December 31,
1997 1996
------------------- --------------------
Revenue
Americas $ 94,661 52% $ 91,850 57%
Europe, Middle East &
Africa 40,633 22% 38,008 24%
Asia & South Pacific 46,918 26% 31,455 19%
------------------- --------------------
Total $ 182,212 100% $ 161,313 100%
=================== ====================
Net Revenue
Americas $ 38,599 55% $ 36,154 55%
Europe, Middle East &
Africa 19,247 27% 19,279 29%
Asia & South Pacific 12,477 18% 10,894 16%
------------------- --------------------
Total $ 70,323 100% $ 66,327 100%
=================== ====================
le East &
Africa 144 $ 669,057 100% $ 595,433 100% $ 245,6
18 100%
with Hyperlinks to your hocations Group
Inc. --TCG-- Reported Fourth Quarter 1997 Revenues of $150.4 Million
Business Editors
ase over
1996.
Fourth quarter 1997 Recurrvenues, or
double the level of 4.4% of revenues for the year 1996.
Annualized monthly recurring revenue the year 1997, revenues
grew 74% and recurring EBITDA increased by 256%," said Bob Annunziata,
TCG's Chairman, President and CEO. "This was the highest revenue
growth rate in the past five years and it was also on an expanding
revenue base. The results underscore the vast opportunities for our
company with multiple strategies for accessing the customer and a
wholesale and retail approach to customer segmentation and service
offerings."
-0-
Three months ended Twelve months ended ($ in millions) 12/31/97 12/31/96 12/31/97 12/31/96 of unconsolidated affiliates. Note: Allescribed in TCG's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , asased by $19 million or 14.5%. Significa nt growthigh speed data services grew 18% compared to th96, switched service revenues grew 80% and dedita grew by over 300% from the fourth quarter 1996. The investment in sales force and sales support conti Conti (kôNtē`), cadet branch of the French royal house of Bourbon. Although the title of prince of Conti was created in the 16th cent. 97, TCG's sales staff increased by 246 employeeth quarter 1997 was a result of lower growth, rird quarter. SG&A expenses improved to 32% of rll four percentage points from 59% of revenues i research and development of CERFnet Services, net loss for the fourth quarter 1997 was $72.5 m and developmen t and additional depreciation. Highlights for the year ended December 31, 1997: Switched service revenues for the year 1997 iere added in February February: see month. of 1997 as a result of thd. Total access lines served at the year end 199 VGEs compared to 4.4 million VGEs at year end 2.5 billion minutes billed in 1996. Operating results: As a percentage of revenues, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. declined from 61% in the year 1996 to 57% in 1997. Al capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the opportunities in the marketpyear end 1996. Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the ye7 was $222.7 million or $1.34 per share compareCERFnet acquisition and higher interest expenser, TCG (Trusted Computing Group, Beaverton, OR, www.trustedcomputinggroup.org) The successor to the Trusted Computer Platform Alliance (TCPA), announced in 2003 by founding members AMD, HP, IBM, Intel and Microsoft. added 8 new markets and brings total Met84 MSAs after the completion of the acquisitions. Equally important, 357 on-net Connected to the Internet, or connected to a LAN or WAN. Contrast with off-net. buildings were added during the fourth quarter 1997, which brings the total number of on-net buildings to 4,638. For the year 1997, 1,789 on-net building 4,428,770 2,921,757 Buildings: On-netnew switch was installed 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 and ie, the waiting period under the Hart Scott Rodino Rodino may refer to:
v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. and we have received approval from the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. on the transfer of ACC See adaptive cruise control. Corp.'s International Operating Authority to TCG. Approvals from 13 of 14 states in the U.S. and all foreign approvals have been secured. The merger is subject to an affirmative AFFIRMATIVE. Averring a fact to be true; that which is opposed to negative. (q.v.) 2. It is a general rule of evidence that the affirmative of the issue must be proved. Bull. N. P. 298 ; Peake, Ev. 2. 3. vote of a majority of the outstanding shares of ACCC ACCC Association of Canadian Community Colleges ACCC Australian Competition & Consumer Commission ACCC Association of Community Cancer Centers ACCC Academic Computing and Communications Center ACCC American College of Chiropractic Consultants common stock. TCG continues to move ahead on completing the transaction. On December 2, 1997, TCG announced a definitive agreement to acquire the assets of Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). Fiber Network, L.P. The transaction is pending regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval. On January January: see month. 8, 1998, TCG and AT&T anatements. Actual results may vary materially. - ------ ----- Revenue (51.7) (21.1)vision ( 0.2) Avg. Share s (millions) 170.7 159.9 EBITDA is defined as earnings/(loss) before interest, taxes, depreciation, amortization, minority interest, and equity in losses of unconsolidated affiliates. Recurring EBITDA is defined as EBITDA prior to the in-process research and development expense. -0- TELEPORT COMMUNICATIONS GROUP Teleport Communications Group (TCG) was the first Competitive local exchange carrier (CLEC) in the U.S. First formed in 1985, it competed with the existing telephone companies to provide dial tone and related services in the largest U.S. markets. INC. CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: STATEMENTS OF OPERATIONS (unaudited) ($ in millions, except EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) For The Year Ended December 31 1997 1996(a) ------ ------ Revenue $494.3 $283.4 Expenses: Operating 283.4 72.4 Selling, Gen, & Admin. 166.0 98.4 In Process Research & Development 22.0 0.0 Depreciation/Amort. 155.4 96.2 ----- ---- Operating Loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. (132.5) (83.6) Interest Income 31.1 29.2 Interest Expen (221.0) (124.3) Income Tax Provision ( 1.7) ( 2.3) $ (1.34) $ (0.86) Weighted Avg. Shares (millions) 165.7 146.4
EBITDA is defined as earnings/(loss) before interest, taxes,
depreciation, amortization, minority interest, and equity in losses of
unconsolidated affiliates. Recurring EBITDA is defined as EBITDA prior
to in-process research and development expense.
(a) Pro forma results
CONTACT: Nancy Nancy (näNsē`), city (1990 pop. 102,410), capital of Meurthe-et-Moselle dept., NE France, on the Meurthe River and the Marne-Rhine Canal. It is the administrative, economic, and educational center of Lorraine. Huson, Investor Relations Investor relations The process by which the corporation communicates with its investors. (732) 392-2154 OR Roger Cawley, Media (732) 392-2122 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion