UTi Worldwide Misses Q3 Expectations

Tuesday morning, UTi Worldwide Inc. UTIW reported financial results for its fiscal 2015 third quarter ended October 31, 2014.

Revenues were $1.078 billion, below estimates of $1.17 billion and a decrease of 6.6 percent from the $1.154 billion reported in the previous year period.

Net revenues (revenues minus purchased transportation costs) were $381.0 million, a decrease of 3.1 percent from $393.5 million in the year-ago period.

Non-GAAP net loss attributable to UTi Worldwide Inc. was $4.8 million. Non-GAAP net loss attributable to common shareholders after preferred stock dividends was $0.08 per diluted common share, well below estimates of earnings per share of $0.06.

The company recorded severance and other costs of $23.7 million compared to $13.2 million. The $23.7 million includes a $19.6 million receivable impairment resulting from a customer bankruptcy. In addition, UTi recorded additional tax expense exceeding its normalized tax rate of $7.0 million, or $0.06 per diluted common share.

Earnings before interest, taxes, depreciation and amortization, as adjusted for severance and other costs (adjusted EBITDA), totaled $23.1 million (which includes $11.3 million in temporary costs) compared to $39.8 million in the year-ago period.

Edward G. Feitzinger, chief executive officer, said, "Earlier this year, we were working through service issues and billing challenges associated with the rollout of our freight forwarding system in the United States. Since then, our service has improved dramatically. These past issues adversely impacted freight forwarding growth and free cash flow for several quarters.”

UTi Worldwide Inc. traded at $12.24 in the pre-market, down 5.85 percent.