Circle International Group, Inc. Releases Third Quarter 1997 Results; Net Income and EPS up 19%.SAN FRANCISCO--(BUSINESS WIRE)--Oct. 28, 1997--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 3rd quarter and 9 months ended Sept. 30, 1997. Net income for the 3rd quarter of 1997 increased 19% to $7.1 million from $5.9 million in the comparable period of 1996. Earnings per share also rose 19% to $0.44 per share from $0.37 per share in the 3rd quarter of 1996. Revenue for the 3rd quarter was $169.6 million compared to $155.5 million, up 9% from the same period of 1996. Net revenue, which represents revenue less freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or consolidation costs, increased 3% to $65.9 million from a 3rd quarter in 1996 which included the benefit of airfreight air·freight n. 1. A system of transporting freight by air. 2. The amount charged for transporting freight by air. air and customs brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. activities associated with the Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. Olympic Games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. and the airfreight activity associated with the launch of a major automotive project. In addition, the financial results for this period have been negatively affected by the translation of foreign sources of revenue and income against the strong U.S. dollar. Despite the impact on 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. of the factors discussed above, the Company's investments in strategic alliances in automotive 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. and other joint ventures have resulted in a significant gain to our shareholders; income from these unconsolidated affiliates increased 256% to $1.5 million in the 3rd quarter of 1997 from $0.4 million in the same period of 1996, and increased 262% to $3.9 million for the 9 months ended Sept. 30, 1997 from $1.1 million for the corresponding period of 1996. For the 9 months ended Sept. 30, 1997, net income increased 21% to $18.3 million compared to $15.0 million for the corresponding period of 1996, and earnings per share rose 20% to $1.14 per share from $0.95 per share in the comparable period of 1996. Revenue for the 9 months ended Sept. 30, 1997 was $486.8 million compared to $434.1 million, up 12% from the same period of 1996, and net revenue increased 7% to $192.4 million from $179.3 million in the corresponding period of 1996. Peter Gibert, Chairman and Chief Executive Officer, commented, "We are pleased with the 19% increase in our earnings and the results we are achieving with our strategic investments. As we move into the 4th quarter, our forecast of business activity looks very promising, driven by the growth in new customer programs and continued positive results from our strategic investments." Except for historical information contained herein, the matters set forth in this press 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 release 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 Nine Months Ended
September 30 September 30
1997 1996 1997 1996
Revenue $ 169,564 $ 155,498 $ 486,845 $ 434,120
Freight consolidation
costs 103,670 91,435 294,415 254,829
Net revenue 65,894 64,063 192,430 179,291
Other costs and
expenses:
Salaries and related 33,794 33,918 100,733 97,565
Operating, selling
and administrative 23,274 21,547 68,131 60,641
Total other costs
and expenses 57,068 55,465 168,864 158,206
Income from operations 8,826 8,598 23,566 21,085
Other income/(expense):
Interest, net 363 339 305 1,403
Income from affiliates,
net 1,525 428 3,926 1,084
Other, net 296 192 772 936
Total other income/
(expense) 2,184 959 5,003 3,423
Income before taxes
on income 11,010 9,557 28,569 24,508
Taxes on income 3,958 3,629 10,296 9,460
Net income $ 7,052 $ 5,928 $ 18,273 $ 15,048
Net income per share $ .44 $ .37 $ 1.14 $ .95
Dividends declared
per share $ -- $ -- $ .135 $ .12
Weighted average
shares outstanding 16,090 15,879 16,011 15,904
Circle International Group, Inc. and Subsidiaries
Product and Geographic Segment Information
(unaudited, in thousands)
Three Months Ended
September 30,
1997 1996
---- ----
Revenue
Air freight forwarding $110,925 65% $ 99,544 64%
Ocean freight forwarding 27,202 16% 25,707 17%
Customs brokerage and other 31,437 19% 30,247 19%
Total $169,564 100% $155,498 100%
Net Revenue
Air freight forwarding $ 25,012 38% $ 24,832 39%
Ocean Freight forwarding 9,445 14% 8,984 14%
Customs brokerage and other 31,437 48% 30,247 47%
Total $ 65,894 100% $ 64,063 100%
Three Months Ended
September 30,
1997 1996
---- ----
Revenue
Americas $ 91,191 54% $ 92,999 60%
Europe & Middle East 35,686 21% 33,836 22%
Asia & South Pacific 42,687 25% 28,663 18%
Total $169,564 100% $155,498 100%
Net Revenue
Americas $ 35,846 54% $ 35,691 56%
Europe & Middle East 17,524 27% 17,455 27%
Asia & South Pacific 12,524 19% $ 10,917 17%
Total $ 65,894 100% $ 64,063 100%
Nine Months Ended
September 30,
1997 1996
---- ----
Revenue
Air Freight forwarding $313,133 64% $274,227 63%
Ocean freight forwarding 81,446 17% 75,548 18%
Customs brokerage and other 92,266 19% 84,345 19%
Total $486,845 100% $434,120 100%
Net Revenue
Air freight forwarding $ 72,614 38% $ 69,444 39%
Ocean freight forwarding 27,550 14% 25,502 14%
Customs brokerage and other 92,266 48% 84,345 47%
Total $192,430 100% $179,291 100%
Nine Months Ended
September 30,
1997 1996
---- ----
Revenue
Americas $272,116 56% $255,205 59%
Europe & Middle East 103,382 21% 101,061 23%
Asia & South Pacific 111,347 23% 77,854 18%
Total $486,845 100% $434,120 100%
Net Revenue
Americas $105,165 55% $ 97,918 55%
Europe & Middle East 51,818 27% 51,183 28%
Asia & South Pacific 35,447 18% $ 30,190 17%
Total $192,430 100% $179,291 100%
CONTACT: Circle International Group Inc. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Diaz, 415/978-0519 (Senior V.P. and CFO See Chief Financial Officer. ) Mark R. Kailer, 415/978-0590 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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