Server: Microsoft-IIS/3.0 Date: Thu, 20 Nov 1997 17:05:56 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Wed, 20 Aug 1997 15:11:31 GMT Content-Length: 13209 Eagle USA Company News - Press Releases (July 28, 1997)
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    EAGLE USA ANNOUNCES RECORD REVENUES AND SOLID EARNINGS

    Eagle USA Third Quarter (Fiscal 1997) Results Post 48% Gain - Net Income Up 78%

    Houston, Tx., July 28, 1997 -- Eagle USA Airfreight, Inc. (Eagle USA NASDAQ/NMS:EUSA) today announced record revenues and solid earnings for the third quarter ended June 30, 1997, primarily driven by the rapid expansion of its core freight forwarding business and strong increase in the number of shipments and the total weight of cargo shipped.

    Revenues for the third quarter increased 48% to $71.3 million from $48.2 million in the same period of fiscal 1996. Net income for the quarter totaled $4.1 million, a 32 percent increase over $3.1 million in the third quarter of fiscal 1996. Earnings per share of $0.22 for the third quarter of fiscal 1997 increased 29 percent from $0.17 in the same period of fiscal 1996. Same terminal revenue growth in the third quarter increased 29 percent, primarily as a result of continued strong performance by the Company's sales personnel.

    Revenues for the nine months ended June 30, 1997 increased 57 percent to $200.4 million from $128.0 million in the same period of fiscal 1996. Net income for the nine months ended June 30, 1997 totaled $11.6 million, a 49 percent increase over $7.8 million in the nine months of fiscal 1996. Earnings per share of $0.62 for the nine months ended June 30, 1997 increased 44 percent from $0.43 in the same period of fiscal 1996. Same terminal revenue growth for the nine months increased 44 percent.

    James R. Crane, Chairman and Chief Executive Officer, said, "We increased revenues and, we believe, market share since June 30, 1996 by strong same terminal growth, growth at our newer terminals, and the continued addition of significant national account customers. Record revenues as well as solid earnings underscore our proven ability to deliver high quality, custom and flexible transportation and logistics services on a very price-competitive basis. To keep pace with our significant growth and to prepare for 1998, we continue to build infrastructure through investments in personnel. We hope to begin to realize benefits from these investments during fiscal year 1998."

    Crane also noted that continued strong growth in international sales is helping to fuel overall results. International shipments typically weigh approximately 2-3 times more than domestic shipments and, as a result, generate greater revenue per shipment. The Company continues to expand in Mexico, and expects to add terminals in Guadalajara and Mexico City during the fourth quarter. International sales, which accounted for 8 percent of total revenues for the quarter increased 95 percent in the third quarter of fiscal 1997 over the same period in fiscal 1996.

    During the third quarter of 1997, the Company opened domestic terminals in Nashville, Tn., South Bend, In., Reno, Nv., and Boise, Id. Management expects to open at least three additional terminals during the fourth quarter, including the aforementioned sites in Mexico, for a total of 60 terminals by the end of the fiscal year.

    Third quarter gross profit margin was 43.9 percent of revenues versus 43.4 percent in the traditionally weaker second quarter of 1997. The primary reasons for margin improvement were increased airfreight shipping volumes, as the number of shipments increased 5 percent and the total weight of cargo shipped increased 12 percent over second quarter 1997, and the continued expansion of the Company's local pickup and delivery operations, which enabled the Company to capture margins previously paid to third parties.

    Continued strong marketing efforts yielded new business for the Company during the third quarter. Eagle USA will act as the primary carrier for the majority of the major pharmaceutical customers of Distribution Solutions International, Inc. The Company also secured a signed contract extension with Anixter, Inc. The trade show market segment continued to add significantly to overall revenues.

    Eagle USA Airfreight's dedication to providing superior flexibility and fewer shipping restrictions on a price competitive basis has made it a leading provider of airfreight forwarding and other transportation and logistics services. Its network of 57 terminals features state-of-the-art information systems to maximize cargo management efficiency and customer satisfaction. The Company's shares are traded on the Nasdaq National Market under the symbol "EUSA."

    The statements in this press release regarding the plans for new terminals, benefits of investments in personnel, future growth, future business, operations or results and any other statements which are not historical facts are forward looking statements. Such statements involve risks and uncertainties, including but not limited to, competition, general economic conditions, ability to manage and continue growth and other factors detailed in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

    See Consolidated Income Statement

    
    
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 EAGLE USA AIRFREIGHT

Sherry Amberg
samberg@eagleusa.com

Intercontinental Airport
3214 Lodestar
Houston, Tx 77032

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Fax: (281) 821-1953
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© 1997 Eagle USA