Fritz Announces Results for Fourth Quarter and Fiscal Year Ended May 31, 1997.SAN FRANCISCO--(BUSINESS WIRE)--July 14, 1997--Fritz Companies 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 :FRTZ) announced today revenue for its fiscal fourth quarter 1997 was $309.5 million, up 18.9% from $260.3 million in the comparable period last year. Net Revenue (which represents revenue less direct transportation costs) increased 9.9% to $130.9 million from $119.1 million in the comparable period last year. 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. for the quarter totaled $130.4 million up 4.9% from $124.3 million recorded last year. Net income for the quarter was $93,000 compared to a loss of $3.4 million in last year's fourth quarter. Net income per share in the fourth quarter was zero compared with a loss of ten cents Ten Cents has several meanings:
The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the previous year. Revenue for the fiscal year ended May 31, 1997 increased 10.8% to $1,156.8 million from $1,043.9 million in 1996. Warehouse and Distribution revenue increased $44.4 million or 47.1% over the prior year. Air and Ocean transportation shipments provided combined transportation revenue growth of $58.8 million, an increase of 7.3% over the previous year. The customs brokerage revenues increased $9.7 million or 6.8% over the previous year. Net revenue increased 11.3% to $509.4 million in 1997 from $457.6 million in 1996. Warehouse and Distribution provided $30.0 million of net revenue; a 42.7% gain over the prior year, as the company continued to rapidly expand its logistics and supply chain management businesses. In percentage terms, this segment has been the fastest growing segment of the business. Customs brokerage provided approximately $9.7 million growth in net revenue, up 6.8% versus last year. Existing customers and expansion of operations along the U.S.A. and Canadian border accounted for much of the gain. Further growth in customs brokerage was provided from operations in the United Kingdom. Air export net revenue totaling $149.3 million increased by $5.4 million or 3.8%. This modest increase reflects continued pressure on pricing with continuing increases in transactions and tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. . Ocean net revenues increased by $6.7 million, or 6.6% as Fritz Companies continued to see much faster growth in NVOCC See Non Vessel Operating Common Carriers. revenues compared with ocean freight forwarding revenues. Operating expenses for the year increased 20.9% to $506.5 million in 1997 from $418.9 million in 1996. This annual increase was affected substantially by the third quarter increase of 45.2%, primarily due to a $17 million increase in allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. , representing 38% of the increase. Fourth quarter operating costs operating costs npl → gastos mpl operacionales increased by $6.1 million or 4.9% over the similar period in the preceding year; however, the fourth quarter in 1996 included merger and related costs of $10.0 million, relevant to the merger with Intertrans Corp. in 1995. Therefore, on an operating basis, costs increased by 14.1% during the fourth quarter. Cash and equivalents were $43.4 million at May 31, 1997, representing a decrease from $86.5 million at May 31, 1996. The cash decrease was primarily caused by a change in certain international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , whereby duty and taxes were paid on the last day of May 1997 rather than on the first day of the succeeding month as was done in the prior year. The company's investing activities for May 31, 1997 fiscal year included capital expenditures of approximately $42.5 million, which includes expenditures for computer and communication equipment, leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. and software. In the fourth quarter, the company sold and leased back certain of its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. warehousing facilities. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the sale were approximately $30.7 million and the gain on the transaction was minimal. The company made cash outlays of approximately $8.9 million related to acquisitions made during fiscal 1997. In addition, approximately $16.2 million of additional purchase price relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc operations of acquired entities achieving specified net revenue and/or pre-tax income levels was recorded. -0-
Consolidated Statements of Operations
(In thousands, except per share amounts)
12 Months Ended May 31,
1997 1996
Revenue $1,156,770 $1,043,858
Freight consolidation costs 647,399 586,290
Net revenue $ 509,371 $ 457,568
Operating expenses:
Salaries and related costs 302,555 249,243
General and administrative 203,958 155,111
Merger and related costs -- 14,555
Total operating expenses 506,513 418,909
Income from operations 2,858 38,659
Other expense (2,384) (196)
Income before tax expense 474 38,463
Income tax expense 166 13,462
Net income $ 308 $ 25,001
Net income per share -- primary $ 0.01 $ 0.70
Weighted average shares
outstanding -- primary 35,522 35,747
Net income per share -- fully diluted $ 0.01 $ 0.70
Weighted average shares
outstanding -- fully diluted 35,526 35,796
-0- Fritz Companies Inc. is a leader in global transportation and logistics, providing flexible service options ranging from integrated logistics programs to traditional freight forwarding and customs brokerage. Fritz develops, implements and delivers worldwide supply chain solutions for its clients. The Fritz worldwide network is comprised of more than 9,000 staff operating 480 locations, present in 115 countries, all linked together by sophisticated information and communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. . Fritz Companies Inc. (NASDAQ:FRTZ) headquarters are at 706 Mission St., 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 , CA 94103. Recent information releases are available via fax-on-demand service accessed by dialing 888/286-6419. Additional information is available via the Internet: http://www.fritz.com . CONTACT: Fritz Companies Inc. Karen Anduza, 415/538-0305 |
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