UTi Worldwide Reports Fiscal 2011 Fourth Quarter Results

LONG BEACH, Calif., March 24, 2011 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for its fiscal 2011 fourth quarter ended January 31, 2011.

Fiscal Fourth Quarter 2011 vs. 2010 Results:

• Revenues were $1,145.1 million, an increase of 15 percent from $991.5 million.
• Net revenues (revenues minus purchased transportation costs) were $404.5 million, an increase of 15 percent from $350.6 million.
• Operating income was $26.0 million, compared to $11.8 million.
• Net income attributable to UTi Worldwide Inc. was $14.5 million, or $0.14 per diluted share, compared to $1.5 million, or $0.02 per diluted share.

Eric W. Kirchner, chief executive officer, said, "Airfreight volumes increased more than we anticipated, while ocean freight volumes contracted in the fourth quarter against more challenging comparatives in the same period last year. Yields and net revenue per unit in the fourth quarter generally improved over last year and the previous quarter as carrier spot rates moderated, particularly in ocean freight. Contract logistics and distribution revenues were up in the fourth quarter, due to both an increase in existing business activity and new business wins. Operating expenses grew at a slower rate than net revenue, despite the fact that we incurred $2.6 million in costs associated with our new financial system. Our operating margin improved in the fourth quarter of fiscal 2011 over the same period last year, but it still remains below our long-term target."

Revenues and net revenues increased 15 percent in the 2011 fiscal fourth quarter compared to the prior-year fourth quarter primarily due to the increased airfreight and logistics volumes. Revenues also increased because of higher fuel surcharges, which the company passes through to clients.

Operating expenses in the fourth quarter of fiscal 2011, excluding purchased transportation costs, were $378.6 million, an increase of 12 percent compared to the same period last year. The increase primarily reflects expenses associated with revenue and shipment growth.