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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): January 22, 1998
EAGLE USA AIRFREIGHT, INC.
(Exact name of registrant as specified in its charter)
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Texas 0-27288 76-0094895
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
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3214 Lodestar
Houston, Texas 77032
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (281) 821-0300
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ITEM 5. OTHER EVENTS.
On January 22, 1998, Eagle USA Airfreight, Inc. (the
"Company") issued a press release (the "Press Release") containing its earnings
report for the quarter ended December 31, 1997. The Press Release is included
as an exhibit to this Report and is incorporated herein by reference.
All statements other than statements of historical fact
included in this Report are forward-looking statements. Such statements involve
risks and uncertainties, including, but not limited to, those relating to the
Company's dependence on its ability to attract and retain skilled managers and
other personnel; the intense competition within the freight industry; the
uncertainty of the Company's ability to manage and continue its growth and
implement its business strategy; the Company's dependence on the availability
of cargo space to serve its customers; the potential for liabilities if certain
independent owner/operators that serve the Company are determined to be
employees; effects of regulation; results of litigation; the Company's
vulnerability to general economic conditions and dependence on its principal
customers; the control by the Company's principal shareholder; the Company's
potential exposure to claims involving its local pick-up and delivery
operations; the Company's future financial and operating results, cash needs
and demand for its services; and the Company's ability to maintain and comply
with permits and licenses; as well as 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.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed herewith:
99 Press release dated January 22, 1998 relating to earnings for the
quarter ended December 31, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
EAGLE USA AIRFREIGHT, INC.
By: /s/ Ronald E. Talley
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Ronald E. Talley
Chief Operating Officer
Date: January 22, 1998
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INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
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99 Press release dated January 22, 1998 relating to earnings for the
quarter ended December 31, 1997.
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EXHIBIT 99
AT THE COMPANY [Eagle USA Airfreight, Inc. Letterhead]
Douglas A. Seckel Michael D. Slaughter
Chief Financial Officer Director SEC Reporting/
Investor Relations
(281) 442-1188 (281) 442-1188
JANUARY 22, 1998
EAGLE USA AIRFREIGHT, INC. REPORTS
RECORD FIRST QUARTER REVENUES AND EARNINGS
HOUSTON, TEXAS, JANUARY 22, 1998 - EAGLE USA AIRFREIGHT, INC. (EUSA) today
announced record revenues and earnings for the first quarter ended December 31,
1997, primarily driven by the expansion of its core freight forwarding business
and increases in the number of shipments and the total weight of cargo shipped.
Revenues for the first quarter increased 44 percent to $97.6 million from $67.6
million in the same period of fiscal 1997. Net income for the quarter totaled
$5.9 million, a 30 percent increase over $4.5 million in the first quarter of
fiscal 1997. Diluted earnings per share of $0.31 for the first quarter of
fiscal 1998 increased 29 percent from $0.24 in the same period of fiscal 1997.
During the first quarter of fiscal 1998 the Company implemented FAS 128
"Earnings Per Share" and has, accordingly, restated fiscal 1997 EPS amounts.
First quarter fiscal 1998 gross profit margin was 45.1 percent of revenues
versus 43.7 percent in the first quarter of fiscal 1997. The primary reasons
for the margin improvement were increased airfreight shipping volumes, as the
number of shipments increased 28 percent over the first quarter of fiscal 1997
and the total weight of cargo shipped increased 41 percent over first quarter
of fiscal 1997, and the continued expansion of the Company's local pick-up and
delivery operations, which enabled the Company to capture margins previously
paid to third parties.
During the first quarter of fiscal 1998, operating income margin was 9.6
percent of revenues, as the Company continued to make investments in personnel
to deepen the staff of its domestic, international, and local delivery
operating units. Operating income margin for the first quarter of fiscal 1997
was 10.7 percent of revenues.
"We recognized excellent results for the first quarter of fiscal 1998,
especially in light of very challenging comparisons to fiscal 1997 first
quarter results, in which we recorded a 66 percent increase in revenues over
the fiscal 1996 first quarter" said James R. Crane, Chairman and Chief
Executive Officer.
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 60 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."
For more information about EUSA:
Via fax dial 1-800-PRO-INFO and enter the ticker symbol - EUSA.
Visit EUSA on the Internet at http://www.eagleusa.com
Contact EUSA Investor Relations via the Internet at [email protected]
Or by telephone at 281/442-1188, Michael Slaughter, Director of Investor
Relations.
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EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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Three Months
Ended December 31,
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1997 1996
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Revenues $ 97,645 $ 67,586
Cost of transportation 53,607 38,071
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44,038 29,515
Personnel costs 23,255 14,288
Other selling, general and admin. costs 11,434 8,029
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Operating income 9,349 7,198
Interest income 305 273
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Income before provision for income taxes 9,654 7,471
Provision for income taxes 3,764 2,957
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Net income $ 5,890 $ 4,514
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Basic earnings per share $ 0.32 $ 0.26
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Diluted earnings per share $ 0.31 $ 0.24
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Basic weighted average common shares outstanding 18,259 17,527
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Diluted weighted average common and
common equivalent shares outstanding 19,049 18,468
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EAGLE USA AIRFREIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
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December 31, September 30,
1997 1997
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ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 28,853 $ 27,786
Accounts receivable, net 51,598 54,662
Prepaid expenses and other 3,320 4,557
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Total current assets 83,771 87,005
Property and equipment, net 14,628 14,090
Other assets 5,527 5,776
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Total assets $ 103,926 $ 106,871
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LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued transportation $ 6,057 $ 13,819
Other current liabilities 10,570 12,548
Total current liabilities 16,627 26,367
Long term indebtedness -- --
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Shareholders' equity 87,299 80,504
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 103,926 $ 106,871
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