UTi SEES DIP IN 3RD QUARTER RESULTS
UTi, the non-asset-based supply chain company, reported third-quarter net income $4.8 million, compared with $7.6 million for the year-earlier quarter.
The recent third quarter included a non-cash charge of $2.3 million for distribution of a stock award plan for certain employees. The decline in income also reflected a higher effective tax rate for the third quarter.
Excluding the charge, net income was $7.1 million, down 7.9 percent from the third quarter of 1999.
Revenue rose 22 percent to $280.8 million, while operating profit rose 16 percent to $10.2 million. Net revenue (revenue minus transportation costs) improved 27 percent to $82.8 million.
Roger I. MacFarlane, UTi's chief executive officer, said revenue growth reflected across-the-board gains for the company's air freight, ocean freight, customs brokerage and other supply chain services. The revenue totals also benefited from two months of contributions from the Continental group of companies, which UTi acquired in September.
The acquisition 'strengthens our presence in Asia/U.S. shipping lane business and gives us a stronger platform from which to offer air freight and ocean freight forwarding services in Asia, MacFarlane said.
UTi completed a public offering during the quarter, which raised about $73.4 million through the issuance of about 5.4 million shares.
For the nine month period ending Oct. 31, net income was $11.9 million, compared with $13.1 million for the year earlier period. Excluding the $2.3 million non-cash charge recorded in the third quarter, net income was $14.2 million, up from $13.1 million for the year-earlier period.
Revenue for the nine months rose 23 percent to $642.8 million, while operating profit rose 35 percent to $22.5 million. Net revenue rose 24 percent to $223.9 million.