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FORM 6-K
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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Report of Foreign Private Issuer
Pursuant to Rule 12a-16 or 15d 16 of
the Securities Exchange Act of 1934
For the Quarters Ending March 31 and June 30, 1997
Commission File Number: 0-2918
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ARAMEX INTERNATIONAL LIMITED
(Exact Name of Registrant as specified in its Charter)
Not Applicable
(Translation of Registrant's Name into English)
2 Badr Shaker Alsayyab Street
Um Uthayna, Amman, Jordan
(Address and principal executive offices)
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Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes_____ No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______________ .
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<PAGE>
ARAMEX INTERNATIONAL LIMITED
FORM 6-K
Table of Contents
Financial Information (unaudited):
Consolidated Balance Sheets at June 30, 1997 and March 31, 1997..........1
Consolidated Statement of Income for the six months ending
June 30, 1997 and the three months ending March 31, 1997.................2
Notes to Financial Statements............................................3
Exhibits....................................................................7
Signatures..................................................................8
<PAGE>
ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 1997 AND MARCH 31, 1997
(IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
June 30, March 31,
1997 1996
---------- ----------
(unaudited) (unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents 6,864 7,697
Accounts receivable 14,317 13,219
Deferred income taxes 37 37
Other current assets 2,655 2,207
----- -----
Total current assets 23,873 23,160
Property, plant and equipment 3,785 2,898
Investments in affiliates, at cost 40 40
Other assets 255 385
------ ------
Total Assets 27,953 26,483
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Due to banks 720 504
Short term loan 560 266
Current portion of notes payable 95 96
Accounts payable 5,820 6,096
Other current liabilities 4,099 3,810
----- -----
Total current liabilities 11,294 10,772
------ ------
Long term debt 72 114
Deferred income taxes 34 34
Other liabilities 1,040 927
----- ---
Minority interests in subsidiaries 441 273
--- ---
Shareholders' Equity
Share capital 44 44
Additional paid in capital in excess of par 7,304 7,384
Cumulative translation adjustment 31 (36)
Retained earnings 7,693 6,971
Total shareholder's equity 15,072 14,363
------ ------
Total Liabilities and Shareholders' Equity 27,953 26,483
====== ======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
ARAMEX INTERNATIONAL LIMITED AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDING JUNE 30, 1997 AND MARCH 31, 1997
(IN THOUSANDS OF U.S. DOLLARS, EXCEPT FOR SHARES AND PER SHARE DATA)
<TABLE>
<CAPTION>
Three months ending Three months ending
June 30, March 31,
1997 1996 1997 1996
------- ------ ------ ------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues(3) 15,630 11,991 14,597 10,770
Shipping costs 8,230 6,241 (8,000) (5,449)
----- ----- ------- -------
Gross profit 7,400 5,750 6,597 5,321
Operating expenses 2,509 2,258 2,681 1,962
Selling, general and administrative expenses 4,172 2,925 3,273 2,933
----- ----- ----- -----
Operating income 719 567 643 426
--- --- --- ---
Other income (expenses):
Interest Income 96 0 83 0
Interest expense (26) (3) (17) (7)
(Loss) gain on sale of property, plant and equipment (6) 0 (7) 0
Exchange gain (loss) (29) 0 (2) 0
Other income (loss) (6) (1) 3 (7)
--- --- --- ---
29 (4) 60 (14)
--- --- --- ---
Income before income taxes 748 562 703 412
Provision for income taxes 34 56 44 25
Minority interests (8) 74 24 32
--- -- -- --
Net income 722 432 635 355
=== === === ===
Earnings per share 0.16 0.14 0.15 0.11
==== ==== ==== ====
Weighted average number of shares outstanding 4,429,688 3,125,000 4,296,355 3,125,000
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Aramex International Limited And Subsidiaries
Notes to Unaudited Consolidated Financial Statements
For Three Months Ending March 31, 1997 and June 30, 1997
(1) BUSINESS AND ORGANIZATION
ARAMEX International Limited, ("ARAMEX" or the "Company") was incorporated under
the laws of Bermuda on October 31, 1996 to be the successor to ARAMEX
International, Limited, a Hong Kong company which was incorporated in February
1986 (" ARAMEX Hong Kong"). Through predecessor entities the Company has been in
business since 1982.
On December 13,1996, ARAMEX subscribed for 100 shares of ARAMEX Hong Kong (the
"Ordinary Shares") and each share of ARAMEX Hong Kong outstanding prior to such
subscription was converted by a special resolution of the Shareholders of ARAMEX
Hong Kong into non-voting deferred shares (the "Deferred Shares") (collectively,
the "Reorganization"). The Deferred Shares do not carry voting rights (other
than in respect of resolutions affecting their class rights) and are effectively
subordinated to the Ordinary Shares (all of which are held by ARAMEX) in respect
of all dividends, distributions and liquidation rights until such time as the
holders of Ordinary Shares have received $ 100 billion. Accordingly, no value
has been assigned to the Deferred Shares. Pursuant to the Reorganization, ARAMEX
became the parent holding company of ARAMEX Hong Kong. The existing shareholders
of ARAMEX Hong Kong will retain a nominal interest in ARAMEX Hong Kong through
their ownership of the Deferred Shares. ARAMEX Hong Kong will act as an
intermediate holding company of the Company's subsidiaries until the Company
completes its reorganization plan to transfer all of its assets from ARAMEX Hong
Kong to ARAMEX or into other subsidiary companies.
On January 17, 1997, the Company completed an initial public offering of
1,000,000 shares of common stock on the Nasdaq National Market at a price of
$7.00 per share. The net proceeds of the issue received by the Company, (after
deducting underwriting discounts, commissions and other costs associated with
the offering), were approximately $5.2 million.
On January 29, 1997, the underwriters exercised their over-allotment option,
(which was granted by the Selling Shareholders), on 150,000 shares of the
Company's common stock. The Company has also agreed to sell, for a nominal
price, to the Underwriters, warrants to purchase up to 100,000 shares of its
common stock at an exercise price of $8.00 per share. The warrants are not
redeemable, and are exercisable during a four-year period commencing January 13,
1998. The warrants provide, subject to certain conditions, for a period of four
years commencing on January 13, 1998, one "demand" registration right and will
provide, subject to certain conditions, for a period of three years commencing
January 13, 1999, certain "piggyback" registration rights.
On December 19, 1996, the Board of Directors approved the Stock Option Plan,
(the "Plan"). The Plan provides for the granting of incentive stock options and
nonqualified stock options. The total number of shares available for grant under
the Plan shall not exceed 400,000. The option price shall not be less than 100%
of the fair market value of the Company's share on the date of the grant. In the
case of an incentive stock option recipient possessing more than 10% of the
total combined voting power of all classes of stock of the Company or any of its
subsidiaries, the option price shall not be less than 110% of the fair market
value of the Company's share on the date of the grant. No options were granted
during the year. On January 13, 1997, Mr. Fadi Ghandour (CEO), was granted
nonqualified options to purchase 100,000 shares of common stock at an option
price of $7.00 per share. The options are exercisable for a period of ten years
from the date of vesting. Fifty percent of these options vested on January 13,
1997 and the other fifty percent are to vest six months from said date. On
January 13,1997, Mr. William Kingson (Chairman), was granted incentive stock
options to purchase 100,000 shares of common stock at an option price of $7.00
per share. The options are exercisable for a period of five years from the date
of vesting. Fifty percent of these options have vested on January 13, 1997 and
the other fifty percent are to vest six months from said date.
3
<PAGE>
Aramex International Limited And Subsidiaries
Notes to Unaudited Consolidated Financial Statements
For Three Months Ending March 31, 1997 and June 30, 1997
ARAMEX is authorized to issue 15,000,000 shares of common stock with a par value
of $0.01 per share. At June 30, 1997 the Company had 4,429,688 shares of common
stock issued and outstanding.
The Company is also authorized to issue 5,000,000 shares of preferred stock with
a par value of $ 0.01 per share, none of which has been issued or is
outstanding.
The accompanying unaudited consolidated financial statements have been presented
to give effect to the reorganization as if it had taken place as of the
beginning of the earliest period presented.
Principal Activities
From its main stations (hubs) in Dubai, London, New York and Amman, ARAMEX
provides multi-modal services in international and domestic express delivery,
freight forwarding, logistics and special services primarily to, from and within
destinations in the Middle East and the Indian Sub-Continent. ARAMEX's
operations are controlled through a regional office which was registered in
Jordan on March 15, 1988 under the name of ARAMEX International Limited (the
"Regional Office") pursuant to the foreign companies law No. (58) of 1985. The
operations of the Regional Office are facilitated by the hubs of the ARAMEX
network.
Effective January 1, 1996, the Company formally inaugurated its direct marketing
and mail order catalog service at certain stations in the Middle East. The
service, called Middle East Direct ("MED"), provides assistance to customers in
selecting, ordering and delivering merchandise through catalogs of retail
companies based principally in the United States and Western Europe.
(2) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of presentation
The consolidated financial statements of the Company included herein
have been prepared by the Company, without audit. Results for the three
months ended June 30, 1997 and March 31, 1997 are not necessarily
indicative of results for the fiscal year.
The consolidated financial statements of the Company have been prepared
in accordance with International Accounting Standards (IAS). For
purposes of these financial statements, there are no significant
differences between the Company's accounting principles utilized and
the accounting principles generally accepted in the United States.
b) Principles of consolidation
The consolidated financial statements include the accounts of the
Company and all of its subsidiaries that are controlled directly and
indirectly through agreements that provide the Company with authority
to govern the financial and operating affairs of the subsidiaries. All
significant intercompany accounts and transactions have been
eliminated.
4
<PAGE>
Aramex International Limited And Subsidiaries
Notes to Unaudited Consolidated Financial Statements
For Three Months Ending March 31, 1997 and June 30, 1997
c) Use of estimates
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual amounts could differ
from those estimates.
d) Concentration of risk in geographic area
The Company derived approximately 77% of its revenues from operations
in the Middle East for each of the three months ended June 30, 1997 and
March 31, 1997. The risk of doing business in this region could
adversely affect the Company, as the region has been subject to many
destabilizing political and economic factors over the years.
e) Revenue recognition
Revenues are recognized when shipments are completed. For
"door-to-door" shipments, revenues are recognized upon delivery of
freight at the destination. For other shipments, revenues are
recognized upon delivery of freight to the air carrier, at which time,
the revenue process is completed.
Certain customers pay in advance, giving rise to deferred revenue.
f) Translation of the financial statements of foreign stations
The Company's functional currency is the United States Dollar. The
financial statements of foreign subsidiaries where the local currency
is the functional currency (substantially all stations) are translated
into U.S Dollars using exchange rates in effect at period end for
assets and liabilities and average exchange rates during each reporting
period for results of operations. Adjustments resulting from
translation of financial statements are reflected as a separate
component of shareholders' equity.
Exchange gains and losses resulting from transactions of the Company
and its subsidiaries which are made in currencies different from their
own are included in income as they occur.
g) Fixed assets
Fixed assets are recorded at cost and are depreciated over their
estimated useful lives using primarily the straight-line method.
The estimated useful lives of these assets are:
Furniture and fixtures 7 years
Office equipment 7 years
Computers 5 years
Vehicles 5 years
5
<PAGE>
Aramex International Limited And Subsidiaries
Notes to Unaudited Consolidated Financial Statements
For Three Months Ending March 31, 1997 and June 30, 1997
h) Income taxes
The Company provides income taxes in accordance with IAS 12. As an
offshore company incorporated in Bermuda, profits from operations of
foreign subsidiaries are not subject to Bermudan taxes. For certain
operations in the Middle East, the Company is exempt from income taxes.
For other operations, deferred income taxes have been provided, using
the liability method under IAS 12, for the difference between the book
and tax bases of assets and liabilities.
Deferred income taxes have not been provided on the undistributed
earnings of subsidiaries operating outside of Bermuda, as such earnings
are expected to be indefinitely reinvested or, if distributed, are
expected to be distributed tax free.
i) Employee termination indemnities
Certain of the Company's subsidiaries are required, by the labor law of
each related country, to provide indemnity payments upon termination of
relationship with their employees. The benefit accrues to employees on
a pro-rata basis during their employment period and is based on each
employee's current salary. Other liabilities in the accompanying
Consolidated Financial Statements reflects the maximum amounts of the
indemnities as of the balance sheet dates of $1,039,604 and $926,880,
respectively, at June 30, 1997 and March 31, 1997.
(3) REVENUE FROM SERVICES
<TABLE>
<CAPTION>
Three months ending Three months ending
June 30, March 31,
------------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------- ----------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Courier
Retail Express 5,084 3,972 4,451 3,606
Wholesale Express 3,780 3,184 3,667 3,123
------------ ------------ ------------- ----------
Total Courier Revenues 8,864 7,156 8,118 6,729
============ ============ ============= ==========
Freight Forwarding 5,295 3,437 4,576 3,121
Domestic Revenues (1) 844 778 794 919
MED(1) 352 - 342 -
Other Revenues(1) 275 620 767 -
------------ ------------ ------------- ----------
Total Revenues 15,630 11,991 14,597 10,770
============ ============ ============= ==========
</TABLE>
(1) For the three months ending March 31, 1996, Domestic Revenues include
MED and Other Revenues and for the three months ending June 30, 1996,
Domestic Revenues include MED Revenues.
6
<PAGE>
EXHIBITS
99.1 Press release announcing the Company's results for the three months
ending March 31, 1997 attached hereto and incorporated herein by
reference.
99.2 Press release announcing the Company's results for the three months
ending June 30, 1997.
7
<PAGE>
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, thereunto duly authorized.
ARAMEX INTERNATIONAL LIMITED
Date: September 12, 1997 By: /s/ William S. Kingson
----------------------
William S. Kingson
Chairman of the Board
8
EXHIBIT 99.1
ARAMEX ANNOUNCES FIRST QUARTER RESULTS OF $0.15 PER SHARE
Aramex International Limited (Nasdaq Symbol: "ARMXF"), a Bermuda company, one of
the leading Middle East express courier and freight forwarding companies,
announced record results for its first quarter ended March 31, 1997 and earnings
per share of US$0.15 per share.
Aramex's total revenues increased by 36% in the first quarter of 1997 to US$14.6
million compared to US$10.8 million in the first quarter of 1996. Net income
also increased by 79% in the first quarter of 1997 to approximately US$0.6
million compared to approximately US$0.4 million in the first quarter of 1996.
Earnings per share increased 36% to US$0.15 per share compared to US$0.11 per
share.
"This is the best first quarter ever for Aramex, we are very pleased with our
results," commented William Kingson, Aramex's Chairman.
Aramex's express revenues increased by 21% to US$8.1 million in the first
quarter of 1997 compared to US$6.7 million in the first quarter of 1996. This
growth was primarily due to results from the Company's main stations in the
Gulf, especially in Dubai and Saudi Arabia where the Company is involved in a
major investment to upgrade its facilities after obtaining its license to
operate its courier division. Express revenue from Aramex's Saudi Arabian
operations grew 117% in the first quarter of 1997 compared to the prior period.
Freight forwarding revenue also increased by 47% to US$4.6 million in the first
quarter of 1997 from US$3.1 million in the first quarter of 1996.
Domestic revenue increased by 33% to US$0.8 million in the first quarter of 1997
from US$0.6 million in the first quarter of 1996. Other revenue, which includes
revenue from the Company's mail order catalog and its travel and customs
clearance businesses, increased by 267% to US$1.1 million in the first quarter
of 1997 from US$0.3 million in the first quarter of 1996.
"Aramex's growth in the first quarter is very encouraging for us since it came
during a typically slower quarter which included a significant number of Arabic
holidays. Despite the number of days in which our customers were closed due to
the holidays, our sales activities in our major stations in Saudi Arabia, UAE,
Qatar, Jordan, Lebanon and the United Kingdom proved successful" commented Fadi
Ghandour, Aramex's President and CEO.
Aramex reported increased shipping costs, as a percentage of total revenue, of
55% of total revenues for the first quarter of 1997 compared to 51% of total
revenue for the first quarter of 1996 which costs were offset by decreased
selling, general and administrative expenses as a percentage of total revenue,
of 22% for the first quarter of 1997 compared to 27% for the first quarter of
1996.
<PAGE>
"The results for the first quarter of 1997 reflected healthy increases in all
our products and services and great support for our plan to become a "one stop
shop" solution for our customers' express and transportation needs" added Fadi
Ghandour, President & CEO.
Aramex has operations in dozens of countries and regions worldwide, including
the Gulf and the Middle East, the Near East, Turkey, the U.K., France,
Switzerland, Bulgaria, Greece, the United States, Canada and Hong Kong.
Certain of the statements contained in this press release may be deemed forward
looking statements. Such statements, and other matters addressed in this press
release, involve a number of risks and uncertainties. Among the factors that
could cause actual plans to differ materially from these statements and other
matters are the risks and other factors detailed, from time to time, in the
Company's reports with the U.S. Securities and Exchange Commission, including,
but not limited to, the Company's Registration Statement on Form F-1 (File No.
333-15639).
Contact: Fadi Ghandour, 962-6-5538761, or fax, 962-6-5537451; or
William Kingson, 212-752-5660, or fax, 212-308-3938, both of Aramex
International Limited.
2
<PAGE>
ARAMEX INTERNATIONAL,LIMITED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31,1997 AND 1996
(IN THOUSANDS U.S DOLLARS EXCEPT FOR SHARES AND PER SHARE DATA)
<TABLE>
<CAPTION>
Unaudited Unaudited
Three months ended Three months ended
March 31, 1997 March 31, 1996
<S> <C> <C>
Revenues 14,697 10,770
Shipping costs (8,000) (5,449)
------- -------
Gross Profit 6,597 5,321
Operating Expenses 2,681 1,962
Selling, general and administrative expenses 3,273 2,933
----- -----
Operating Income 643 426
Other income (expenses)
Interest Income 83 0
Interest Expense (17) (7)
Loss on sale of property, plant and equipment (7) 0
Exchange (loss) gain (2) 0
Other income (loss) 3 (7)
-- ---
60 (14)
-- ----
Income before income tax 703 412
Provision for income taxes 44 25
Minority interests 24 32
--- ---
Net income 635 355
=== ===
Basic earning per share 0.15 0.11
==== ====
Weighted average number of shares outstanding 4,296,355 3,125,000
========= =========
</TABLE>
EXHIBIT 99.2
ARAMEX ANNOUNCES SECOND QUARTER RESULTS
OF $0.16 PER SHARE
August 14, 1997, Amman, Jordan -- Aramex International Limited ("Aramex")
(Nasdaq NM symbol: ARMXF), the international express and freight forwarding
company specializing in the Middle East & Indian Sub-Continent regions announced
record results for its second quarter ending June 30, 1997 of net income of
US$0.72 million, or US$0.16 per share, on revenues of US$15.6 million.
"We have met our targets for net earnings and revenue growth. This is the second
quarter in a row that we have posted record results. Our year-to-date
performance positions us for growth opportunities in the markets we serve and
those we plan to enter," commented Mr. William Kingson, Chairman of Aramex.
"Our growth is attributable to two important factors: the strong economic
performance of the Arabian Gulf countries, especially Saudi Arabia and the UAE
and Aramex's aggressive marketing efforts which have increased our market share
in retail express and freight forwarding," added Fadi Ghandour, Aramex's
President & Chief Executive Officer.
Results for the three months ended June 30, 1997 versus the three months ended
June 30,1996.
The Company's revenues increased approximately 30% to US$15.6 million in the
second quarter of 1997 from $12.0 million in the same period of 1996. Net income
increased approximately 67% to $0.72 million in 1997 from $0.43 million in the
same period of 1996. Earnings per share increased by 14% to $0.16 per share in
the second quarter of 1997 from $0.14 per share in same period of 1996.
Aramex's express revenue increased approximately 24% to $8.9 million in the
second quarter of 1997 from $7.2 million in the same period in 1996, primarily
as a result of increased business in the Arabian Gulf particularly Dubai and
Saudi Arabia, as well as from growth in wholesale business from Asia. For the
period in question, retail express revenues increased approximately 28% and
wholesale express revenues increased approximately 19% from the prior comparable
period.
Aramex's freight forwarding revenue increased by approximately 54% to $5.3
million in the second quarter of 1997, from $3.4 million in the same period of
1996. This increase was primarily as a result of the very healthy economic
activity in the Gulf region in general. "In Jordan, where Aramex continues to be
one of the leading freight forwarders, we have won the highest productivity
awards from the major airlines of the region such as Royal Jordanian, Gulf Air
and Emirates Airlines," Mr. Ghandour noted.
<PAGE>
Revenues from the Company's Middle East Direct ("MED") mail order catalog
service were $0.35 million for the second quarter of 1997. Domestic revenues
were $0.84 million in the second quarter of 1997. Other revenues were $0.28
million in the second quarter of 1997.
"We are very pleased with the steady growth of our MED business which we
commenced in January 1996. We have been able to set up our six Shop the World
Catalog Centers at minimal costs and ship orders to our customers through our
pre-existing delivery system," Mr. Kingson commented.
Increases in revenues were partially offset by increases in shipping and
operating expenses. Shipping costs increased by approximately 32% to $8.2
million in the second quarter of 1997 from $6.2 million for the comparable 1996
period. As a percentage of revenues, shipping costs increased to 53% in the
second quarter of 1997 compared to 52% for the comparable 1996 period. Operating
expenses increased approximately 11% in the second quarter of 1997 to
approximately $2.5 million from approximately $2.3 million in the same period
1996, primarily as a result of the hiring of new employees to service the
Company's increased business, particularly in Saudi Arabia. As a percentage of
revenues, operating expenses decreased to 16% in the second quarter of 1997
compared to 19% for the comparable 1996 period. Selling, general and
administrative expenses increased 43% in the second quarter of 1997 to
approximately $4.2 million from approximately $2.9 million in the same period
1996. As a percentage of revenues, selling, general and administrative expenses
increased to 27% in the second quarter of 1997 compared to 24% for the
comparable 1996 period.
Results for the six months ended June 30, 1997 versus the six months ended June
30, 1996.
Revenues increased by approximately 33% for the six months ending June 30, 1997
to approximately $30.2 million from $22.8 million in the same period of 1996.
Net income also increased by approximately 72% for the first six months of 1997
to approximately $1.4 million from $0.8 million for the same period in 1996.
Earnings per share increased in the first six months of 1997 by approximately
24% to $0.31 per share from $0.25 for the same period in 1996.
Aramex's express revenue increased approximately 22% to $16.9 million in the
first six months of 1997 from $13.9 million in the same period in 1996. For the
period in question, retail express revenues increased approximately 26% and
wholesale express revenues increased 18% from the comparable prior period.
Freight forwarding revenue increased by approximately 51% to $9.9 million in the
first six months of 1997, from $6.6 million in the same period of 1996.
Revenues from the Company's Middle East Direct ("MED") mail order catalog
service were $0.70 million for the first six months of 1997. Domestic revenues
were US$1.6 million in the first six months of 1997. Other revenues were US$1.0
million in the first six months of 1997.
Shipping costs increased by 39% to approximately $16.2 million in the first six
months of 1997 from $11.7 million for the comparable 1996 period. As a
2
<PAGE>
percentage of revenues, shipping costs increased to 54% in the first six months
of 1997 compared to 51% for the comparable 1996 period. Operating expenses
increased 23% in the first six months of 1997 to approximately $5.2 million from
approximately $4.2 million in the same period 1996. As a percentage of revenues,
operating expenses decreased to 17% in the first six months of 1997 compared to
19% for the comparable 1996 period. Selling, general and administrative expenses
increased 27% in the first six months of 1997 to approximately $7.4 million from
approximately $5.9 million in the same period 1996. As a percentage of revenues,
selling, general and administrative expenses decreased to 25% in the first six
months of 1997 compared to 26% for the comparable 1996 period.
"I am especially pleased by the excellent growth in the first six months of
1997. This growth demonstrates that our multi-modal one-stop-shop strategy is
accepted by our clients and the market." Mr. Ghandour noted.
ARAMEX currently operates 57 offices and facilities in 31 countries, providing
express delivery and freight forwarding services from its main hubs in Dubai,
London, New York and Amman primarily to, from and within destinations in the
Middle East and the Indian Sub-Continent. Aramex also holds a majority interest
in a direct marketing and mail order catalog service located in the Middle East.
Certain of statements contained in this press release may be deemed forward
looking statements. Such statements, and other matters addressed in this press
release, involve a number of risks and uncertainties. Among the factors that
could cause actual plans to differ materially from these statements and other
matters are the risks and other factors detailed, from time to time, in the
Company's reports with the U.S. Securities and Exchange Commission.
For further information please contact: Fadi Ghandour, 011-962-6-5538761, or
fax, 011-962-6-5537451; or William Kingson, (212) 752-5660, or fax, (212)
308-3938, both of Aramex International Limited.
3
<PAGE>
ARAMEX INTERNATIONAL LIMITED
Consolidated Comparative Income Statements
for the Six Months Ended June 30, 1997 and 1996
(In Thousands of U.S. Dollars)
Un-Audited Un-Audited
Six months ended Six months ended
June 30, 1997 June 30, 1996
Retail Express 9,535 7,578
Wholesale Express 7,447 6,307
Total Courier Revenue 16,982 13,885
Freight Forwarding 9,871 6,558
MED 694 -
Domestic 1,638 1,357
Other 1,042 961
Total Revenue 30,227 22,761
Outbound Cost of Services 6,779 5,194
Inbound Cost of Services 699 780
Freight Forwarding 7,592 4,999
MED 440 -
Domestic 250 228
Other 470 489
Total Cost of Services 16,230 11,690
Gross Profit 13,997 11,071
Operating Expenses 5,191 4,220
Selling Expenses 2,027 1,712
General & Administration 5,418 4,147
Total Overheads 12,636 10,079
Operating Net Profit 1,361 992
Other Income (Expenses) 89 (18)
Net Profit Before Tax 1,450 974
Provision of Income Tax 78 81
Minority Interest 15 106
Net Income 1,357 787
Earnings per share 0.31 0.25
Weighted average number of shares
outstanding 4,363,390 3,125,000
4
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ARAMEX INTERNATIONAL LIMITED
Consolidated Comparative Income Statements
for the Three Months Ended June 30, 1997 and 1996
(In Thousands of U.S. Dollars)
Un-Audited Un-Audited
3 months ended 3 months ended
June 30, 1997 June 30, 1996
Retail Express 5,084 3,972
Wholesale Express 3,780 3,184
Total Courier Revenue 8,864 7,156
Freight Forwarding 5,295 3,437
MED 352 -
Domestic 844 778
Other 275 620
Total Revenue 15,630 11,991
Outbound Cost of Services 3,493 2,741
Inbound Cost of Services 374 465
Freight Forwarding 4,082 2,597
MED 211 -
Domestic 103 157
Other (33) 281
Total Cost of Services 8,230 6,241
Gross Profit 7,400 5,760
Operating Expenses 2,509 2,258
Selling Expenses 1,250 875
General & Administration 2,922 2,050
Total Overheads 6,681 5,183
Operating Net Profit 719 567
Other Income (Expenses) 29 (4)
Net Profit Before Tax 748 562
Provision of Income Tax 34 56
Minority Interest (8) 74
Net Income 722 432
Earnings per share $0.16 $0.14
Weighted average number of shares
outstanding 4,429,688 3,125,000
