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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: July 8, 1998
(Date of earliest event reported)
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FEDERAL EXPRESS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
1-7806 71-0427007
(Commission File Number) (IRS Employer Identification No.)
2005 Corporate Avenue, Memphis, Tennessee 38132
(Address of principal executive offices)
Registrant's Telephone Number, including area code:
(901) 369-3600
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ITEM 5. OTHER EVENTS
On July 8, 1998, FDX Corporation, the parent holding company for Federal
Express Corporation, announced its financial results for the quarter and
fiscal year ended May 31, 1998. Certain information regarding the financial
results for Federal Express Corporation (the "Registrant") for the quarter and
fiscal year ended May 31, 1998 was included in the FDX Corporation
announcement.
Registrant recently prepared Appendix A to a Preliminary Official Statement
with respect to the Indianapolis Airport Authority Special Facility Refunding
Revenue Bonds, Series 1998 (Federal Express Corporation Project). Appendix A,
a portion of which is attached to this report as Exhibit 20.1 and incorporated
herein by reference, contains summaries of the Registrant's operating results
and financial position and certain operating statistics for the past five
fiscal years, including the fiscal year ended May 31, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibit
20.1 A portion of Appendix A to a Preliminary Official Statement
prepared with respect to the Indianapolis Airport Authority
Special Facility Refunding Revenue Bonds, Series 1998 (Federal
Express Corporation Project).
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.
FEDERAL EXPRESS CORPORATION
By: /s/ MICHAEL W. HILLARD
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Michael W. Hillard
Vice President and Controller
(principal accounting officer)
Dated: July 13, 1998
EXHIBIT INDEX
Exhibit Description of Exhibit
20.1 A portion of Appendix A to a Preliminary Official
Statement prepared with respect to the Indianapolis
Airport Authority Special Facility Refunding Revenue
Bonds, Series 1998 (Federal Express Corporation Project).
Exhibit 20.1
SELECTED OPERATING STATISTICS
(Unaudited)
Set forth below are selected operating statistics of the express package and
airfreight services of the Company for the periods indicated. Beginning in
fiscal 1995, Average Revenue Per Pound and Average Revenue Per Package include
certain service fee revenues previously classified as other revenues. Data
for 1994 has been restated to conform to this presentation.
<TABLE>
<CAPTION>
Year Ended May 31,
---------------------------------------------------------
1994 1995 1996 1997 1998
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Express package:
Average daily
package volume 1,925,105 2,247,594 2,437,662 2,715,894 3,025,999
Average pounds per
package 6.0 6.3 6.4 7.2 8.5
Average revenue
per pound $2.51 $2.31 $2.31 $2.11 $1.84
Average revenue
per package $15.12 $14.62 $14.87 $15.11 $15.69
Airfreight:
Average daily
pounds 1,844,270 2,153,041 2,144,225 2,542,226 2,769,922
Average revenue
per pound $1.06 $1.06 $1.01 $0.94 $0.85
</TABLE>
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
<TABLE>
<CAPTION>
Year Ended May 31,
------------------------------------------------
1994 1995 1996 1997 1998
-------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Ratio of Earnings to
Fixed Charges (a) 1.7x 2.0x 1.9x 2.0x 2.1x
</TABLE>
________
(a) Earnings included in the calculation of the ratio of earnings to fixed
charges represents income before income taxes plus fixed charges (other than
capitalized interest). Fixed charges include interest expense, capitalized
interest, amortization of debt issuance costs and a portion of rent expense
representative of interest.
SUMMARY OF CONSOLIDATED FINANCIAL INFORMATION
The following is a summary of the Company's operating results and financial
position for the periods indicated (in thousands):
OPERATING RESULTS
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<TABLE>
<CAPTION>
Year Ended May 31,
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1994(1) 1995(1) 1996(1) 1997(1) 1998(2)
------------ ------------ ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues $8,479,456 $9,392,073 $10,273,619 $11,519,750 $13,254,841
Operating
Income 530,632 591,144 623,824 699,042 836,733
Income (Loss)
Before Income
Taxes 378,462 522,084 539,959 628,221 735,213
Income (Loss)
Before
Cumulative
Effect of Change
in Accounting
Principle 204,370 297,588 307,777 361,227 420,543
Net Income
(Loss) $ 204,370 $ 297,588 $ 307,777 $ 361,227 $ 420,543
</TABLE>
FINANCIAL POSITION
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<TABLE>
<CAPTION>
May 31,
----------------------------------------------------------------------------
1994 (1) 1995(1) 1996(1) 1997(1) 1998(2)
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Current Assets $1,761,696 $1,869,082 $1,728,261 $2,132,589 $2,376,678
Property and
Equipment, Net 3,449,093 3,715,244 4,116,601 4,622,080 5,200,568
Total Assets 5,992,498 6,433,372 6,698,971 7,625,486 8,432,106
Current Liabilities 1,536,428 1,778,535 1,618,397 1,962,783 2,401,299
Long-Term Debt 1,632,202 1,324,711 1,325,277 1,397,954 1,185,180
Common
Stockholders'
Investment $1,924,705 $2,245,569 $2,576,139 $2,962,514 $3,401,729
</TABLE>
_______
(1) Audited
(2) Preliminary, unaudited
