Fritz Companies Announces Fiscal Fourth Quarter, Year End Results; Annual Revenues for Fiscal Year Up 12.4 Percent.SAN FRANCISCO--(BUSINESS WIRE)--June 30, 1998--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) today announced double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth, as well as significant net income and per-share earnings improvements for its fiscal year which ended May 31, 1998. Revenues for the period increased by 12.4 percent to $1.300 billion compared to $1.157 billion in the prior year period. Net revenues (which represent revenues less direct transportation costs) increased 9.6 percent to $558.3 million from $509.4 million last year, while 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 period increased by 5.1 percent to $532.5 million from $506.5 million in the prior year period. Net income for the period increased to $18.1 million, compared to $308 thousand last year. This translated into 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 of 50 cents for the year, compared to 1 cent last year. "This performance in large measure reflects the tough decisions we made throughout the year to control the growth in costs and to achieve sustainable operating efficiencies," said chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Lynn Lynn, city (1990 pop. 81,245), Essex co., E Mass.; inc. as a town 1631, as a city 1850. Lynn is an old industrial center. The first ironworks (1643) and the first fire engine (1654) in the country were built there. C. Fritz fritz n. Informal A condition in which something does not work properly: Our television is on the fritz. [Perhaps from German Fritz . "It also reflects a series of initiatives we launched to consolidate Consolidate To combine the assets, liabilities, and other financial items of two or more entities into one. Notes: This term is generally used in the context of consolidated financial statements. and revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. our finance activities, reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. and expand our information systems, and rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear the product delivery and pricing policies for our nearly 30 thousand active customers in the 115 countries where we operate worldwide." As a result of these initiatives, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the year was $55.1 million, representing an $85.6 million turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. from the prior year period. Tighter controls on capital expenditure resulted in free cash flow (or operating cash flow less capital expenditures) of $33.3 million during the year, which was also a marked improvement from the performance in the prior year. For the fourth quarter ended May 31, revenues were $322.6 million, a 4.2 percent increase from the same period in the prior year. Net revenues improved by 8.2 percent to $141.6 million, while operating expenses of $134.7 million were 3.3 percent higher than the prior year period. Net income during the quarter was $4.8 million, with diluted earnings per share of 13 cents, compared to net income of $93 thousand in the prior year - with zero per-share earnings. A favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. balance between the growth in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and payables Payables Related: Accounts payable contributed in part to operating cash flow for the quarter of $17.0 million and free cash flow of $11.5 million. Total debt at the end of the period was $106.1 million, a reduction of $16.0 million from the prior year level. -0-
The following table provides the revenue, net revenue and
percentages attributable to the company's principal logistics services
during the periods indicated (in thousands, except percentage
figures):
Three Months Ended May 31,
1998 % 1997 %
REVENUE:
Customs brokerage $ 43,397 13.5 $ 36,823 11.9
Ocean freight forwarding 91,433 28.3 84,798 27.4
Airfreight forwarding 143,015 44.3 148,264 47.9
Warehousing and
distribution 44,718 13.9 39,590 12.8
Total revenue $322,563 100.0 $309,475 100.0
======== ===== ======== =====
NET REVENUE:
Customs brokerage $ 43,397 30.7 $ 36,823 28.1
Ocean freight forwarding 30,322 21.4 27,393 20.9
Airfreight forwarding 40,931 28.9 41,323 31.6
Warehousing and
distribution 26,930 19.0 25,367 19.4
Total net revenue $141,580 100.0 $130,906 100.0
======== ===== ======== =====
Twelve months Ended May 31,
1998 % 1997 %
REVENUE:
Customs brokerage $ 165,055 12.7 $ 152,257 13.2
Ocean freight forwarding 375,933 28.9 334,701 28.9
Airfreight forwarding 576,643 44.4 531,100 45.9
Warehousing and
distribution 182,452 14.0 138,712 12.0
Total revenue $1,300,083 100.0 $1,156,770 100.0
========== ===== ========== =====
NET REVENUE:
Customs brokerage 165,055 29.5 $ 152,257 29.9
Ocean freight forwarding 120,497 21.6 107,480 21.1
Airfreight forwarding 158,514 28.4 149,333 29.3
Warehousing and
distribution 114,199 20.5 100,301 19.7
Total net revenue $558,265 100.0 $509,371 100.0
======== ===== ======== =====
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amount)
Three Months Ended Twelve Months Ended
May 31, May 31, May 31, May 31,
1998 1997 1998 1997
REVENUE $ 322,563 $ 309,475 $ 1,300,083 $ 1,156,770
FREIGHT
CONSOLIDATION
COSTS 180,983 178,569 741,818 647,399
----------- ----------- ----------- -----------
NET REVENUE 141,580 130,906 558,265 509,371
----------- ----------- ----------- -----------
OPERATING EXPENSES
Salaries and
related costs 81,220 77,001 326,025 302,555
General and
administrative 53,488 53,381 206,427 203,958
----------- ----------- ----------- -----------
Total
operating
expenses 134,708 130,382 532,452 506,513
----------- ----------- ----------- -----------
INCOME FROM
OPERATIONS 6,872 524 25,813 2,858
OTHER INCOME
(EXPENSE) 132 (381) 789 (2,384)
----------- ----------- ----------- -----------
INCOME BEFORE
TAX EXPENSE 7,004 143 26,602 474
INCOME TAX
EXPENSE 2,241 50 8,512 166
----------- ----------- ----------- -----------
NET INCOME $ 4,763 $ 93 $ 18,090 $ 308
=========== =========== =========== ===========
Weighted
average share
outstanding
- basic 35,868 35,276 35,744 35,128
=========== =========== =========== ===========
Earnings per
share - basic $ 0.13 $ 0.00 $ 0.51 $ 0.01
=========== =========== =========== ===========
Weighted
average shares
outstanding
- diluted 36,388 35,426 36,128 35,473
=========== =========== =========== ===========
Earnings per
share - diluted $ 0.13 $ 0.00 $ 0.50 $ 0.01
=========== =========== =========== ===========
-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 BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , Fritz develops, implements and delivers worldwide supply chain solutions for its clients. The Fritz worldwide network is comprised of more than 10,000 staff operating across 480 locations, present in 115 countries, linked together by systems. Fritz Companies, Inc. (NASDAQ:FRTZ) is headquartered at 706 Mission Street, 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, (415) 904-8360. All recent information releases are available via fax-on-demand service accessed by dialing 888-286-6419. Additional information is available 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 : http://www.fritz.com Except for historical information referred to here, 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. regarding future events or the future performance of the company. Actual results or events could, of course, differ materially. Please refer to the documents the company files from time to time with the SEC, including the company's most recent Forms 10K and 10Q. These documents identify important factors that could cause actual events or results to differ materially from those contained in any forward looking statement.
CONTACT: Fritz Companies, Inc.
Graeme Stewart, 415/538-0444
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