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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OF 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) OCTOBER 9, 1996
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FRITZ COMPANIES, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE 0-20548 94-3083515
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(STATE OR OTHER JURISDICTION (COMMISSION FILE (IRS EMPLOYER
OF INCORPORATION) NUMBER) IDENTIFICATION NO.)
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706 MISSION STREET, SAN FRANCISCO, CALIFORNIA 94103
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (415) 904-8360
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INAPPLICABLE
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(FORMER NAME OR FORMER ADDRESS IF CHANGED SINCE LAST REPORT)
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Item 5. Other Events
On October 9, 1996, the Company issued a press
release relating to its earnings for the first
quarter of fiscal 1997.
Item 7. Financial Statement and Exhibits
(c) See the attached Exhibit Index.
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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.
FRITZ COMPANIES, INC.
By /s/
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Ronald W. Womack
Vice President - Finance
Dated: October 9, 1996
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EXHIBIT INDEX
NUMBER EXHIBIT PAGE
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99.1 Press release dated October 9, 1996. 5
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[FRITZ COMPANIES LOGO] NEWS RELEASE
706 MISSION STREET, SAN FRANSISCO, CA 94103
FRITZ ANNOUNCES FIRST FISCAL QUARTER RESULTS FOR
THREE MONTHS ENDED AUGUST 31, 1996
San Francisco, October 9, 1996: Fritz Companies, Inc., announced that for
the first quarter of fiscal year 1997, revenue increased 1.5% to $270.5 million
from $266.4 million for the comparable period year before and net revenue
increased 12.1% to $129.7 million from $115.7 million for the same period. The
increased revenue was primarily due to warehousing and distribution, and customs
brokerage. Warehousing and distribution revenue increased due to the Company's
continued expansion of overseas and domestic services, from existing integrated
logistics customers, from acquisitions and the Company's continued expansion of
its warehouse facilities. In addition, warehouse and distribution revenue and
net revenue includes the recognition of approximately $3 million for logistics
services provided to a customer through an agent as discussed in Form 10-Q/A of
the third quarter of fiscal year 1996 in Note 5 Adjustment Related to
Restatement. The increased customs brokerage is attributable to growth in the
Company's existing customer base, new clients and acquisitions. Airfreight
revenue decreased as a result of the absence of charters for a client to Latin
America and lost clients which was only partially offset by new clients.
However, the Company continued to experience higher margins due to increased
volumes from the merger with Intertrans Corporation, acquisitions, and as a
result of lower destination costs.
The following table shows the revenue, and net revenue, in thousands of
dollars and percentages attributable to the Company's principal logistics
services during the periods indicated:
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THREE MONTHS ENDED AUGUST 31,
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1996 % 1995 %
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REVENUE:
Customs brokerage $ 40,884 15.1 $ 36,556 13.7
Ocean freight forwarding 80,795 29.9 80,020 30.1
Airfreight forwarding 114,988 42.5 128,235 48.1
Warehousing and distribution 33,823 12.5 21,555 8.1
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Total revenue $270,490 100.0 $266,366 100.0
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NET REVENUE:
Customs brokerage $ 40,884 31.5 $ 36,556 31.6
Ocean freight forwarding 28,149 21.7 28,541 24.7
Airfreight forwarding 34,137 26.3 34,193 29.5
Warehousing and distribution 26,547 20.5 16,414 14.2
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Total net revenue $129,717 100.0 $115,704 100.0
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Operating expenses increased 21.2% for the first quarter of fiscal year 1997
over the year ago quarter. Salaries and related costs increased due to an
increase in the number of employees, higher salary levels and workers'
compensation insurance premium adjustments. General and administrative expenses
increased due to expenditures to support the Company's expansion, including
warehouse-related expenses. In addition, there was an increase in travel and
entertainment and professional services expenditures; which are not ordinary to
the operations of a specific quarter. The increased travel and entertainment
cost was due to the Company's biennial worldwide managers' meeting. Professional
services costs increased due to higher legal expenses and consulting fees.
The Company's cash and equivalents as of August 31, 1996 were $75.6 million
down from $86.5 million at May 31, 1996. This decrease was largely due to
capital expenditures of $9.5 million and cash outlays of $8.0 million for
interests in companies acquired during fiscal 1996.
A LEADER IN GLOBAL INTEGRATED LOGISTICS
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FRITZ COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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THREE MONTHS ENDED AUGUST 31,
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1996 1995
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REVENUE $ 270,490 $266,366
FREIGHT CONSOLIDATION COSTS 140,773 150,662
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NET REVENUE 129,717 115,704
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OPERATING EXPENSES:
Salaries and related costs 71,634 61,632
General and administrative 45,720 35,173
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Total operating expenses 117,354 96,805
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INCOME FROM OPERATIONS 12,363 18,899
OTHER INCOME (EXPENSE)--NET (377) 479
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INCOME BEFORE TAXES ON INCOME 11,986 19,378
TAXES ON INCOME 4,195 6,782
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NET INCOME $ 7,791 $ 12,596
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Net income per share - primary $ 0.22 $ 0.36
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Weighted average shares outstanding - primary 35,734 35,154
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Net income per share - fully diluted $ 0.22 $ 0.36
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Weighted average shares outstanding - fully diluted 35,805 35,386
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Fritz Companies, Inc., is a leader in international transportation logistics
and related information services for importers and exporters worldwide. The
Company's principal services include logistic management, customs brokerage,
international air and ocean freight consolidation, and forwarding, warehousing
and distribution, and other value-added services for the global movement of
goods and logistics information.
Fritz Companies, Inc., is headquartered at 706 Mission Street, San
Francisco, CA 94103, telephone 415/904-8360 (www.fritz.com). The Company's
shares are traded on the NASDAQ Exchange, symbol FRTZ.
CONTACT: Fritz Companies, Inc.
Will Clark, 415/904-8138
