UTi Worldwide Reports Fiscal 2013 Third Quarter Results

UTi Worldwide Reports Fiscal 2013 Third Quarter Results

LONG BEACH, Calif., Dec. 6, 2012 (GLOBE NEWSWIRE) -- UTi Worldwide Inc.
(Nasdaq:UTIW) today reported financial results for its fiscal 2013 third
quarter ended October 31, 2012.

Fiscal Third Quarter 2013 vs. 2012 Results:

  *Revenues were $1,128.9 million, a decrease of 10.7 percent from $1,264.5
    million.
  *Net revenues (revenues minus purchased transportation costs) were $403.6
    million, a decrease of 9.0 percent from $443.4 million.
  *Net income attributable to UTi Worldwide Inc. was $10.5 million, or $0.10
    per diluted share, compared to $28.5 million, or $0.28 per diluted share.
  *After-tax severance and legal costs were $5.8 million, compared to $1.1
    million.
  *Excluding severance and legal costs, adjusted net income attributable to
    UTi Worldwide Inc. was $16.3 million, or $0.16 per diluted share, compared
    to $29.7 million, or $0.29 per diluted share.
  *All references to adjusted items and organic items in this release refer
    to non-GAAP results. A reconciliation of GAAP to these non-GAAP results is
    provided in the supplemental financial information attached to this
    release.

Eric W. Kirchner, chief executive officer, said, "Macroeconomic and freight
conditions remained weak throughout our fiscal 2013 third quarter, and we see
no real catalysts to drive increases in the foreseeable future. Global
economies are slowing, consumer demand is weak and clients remain very
cautious. As we anticipated, a broad peak season failed to materialize in the
third quarter. Airfreight lagged the most, as weight per shipment fell and
clients favored lower cost options like ocean freight. Competition remains
intense and carriers have attempted to increase shipping rates. This dynamic
is pressuring net revenue per unit throughout the industry. Contract logistics
activity was lower in the third quarter, primarily in Europe and the Americas,
while distribution activity in Africa was higher. We continued to win new
business, but at a pace that was insufficient to offset the reductions from
existing business in both segments."

Kirchner continued, "Our operating expenses, which are more closely tied to
shipments rather than tonnage or TEU count, did not decrease as much as net
revenue. In response to lower volumes, we are taking additional actions to
remove approximately $25 million in annualized expenses, some of which we had
planned to execute through our transformation in fiscal 2014. Our system
rollout is progressing. We have launched our new operating system in five
countries and our new financial system in 12 countries. We have plans to
deploy both systems in more countries by the end of the fiscal year. We remain
focused on achieving our operating ratio targets within fiscal 2015."

Revenues decreased 10.7 percent in the fiscal 2013 third quarter compared to
the same period last year, primarily due to the impact of currency, weaker
airfreight tonnage and lower pricing. Net revenues fell 9.0 percent in the
fiscal 2013 third quarter, primarily due to currency translation and lower
volumes. On an organic basis, revenues decreased 6.5 percent, while net
revenues decreased 4.2 percent in the fiscal 2013 third quarter, compared to
the same period last year.

Operating expenses less purchased transportation costs were $380.9 million in
the third quarter of fiscal 2013, compared to $395.1 million in the same
period last year. The company accrued $5.2 million for a recent legal judgment
relating to a warehouse fire in 2006. Severance costs (before taxes) totaled
$3.9 million in the fiscal 2013 third quarter, compared to $1.7 million in the
third quarter of last year. Severance costs in both periods were primarily
related to the company's transformation activities.

Excluding severance and legal costs from both periods, adjusted operating
expenses less purchased transportation costs were $371.8 million in the fiscal
2013 third quarter, a decrease of 5.5 percent from $393.4 million in the same
period last year, primarily due to currency effects. On an organic basis,
adjusted operating expenses less purchased transportation costs decreased 0.6
percent, compared to the same period last year.

Operating income in the fiscal 2013 third quarter was $22.7 million. Excluding
severance and other costs described above, adjusted operating income was $31.8
million, or 7.9 percent of net revenues. This compares to adjusted operating
income in the fiscal 2012 third quarter of $49.9 million, or 11.3 percent of
net revenues. Currency effects reduced operating income in the fiscal 2013
third quarter by $1.9 million. In addition, the negative impact from
superstorm Sandy and the transportation strikes in South Africa are estimated
at approximately $3.5 million in the third quarter.

Investor Conference Call:

UTi management will host an investor conference call today, December 6, 2012,
at 8:00 a.m. PST (11:00 a.m. EST) to review the company's financial results
for the fiscal 2013 third quarter. Investment professionals are invited to
participate in the live call by dialing 877-941-0844 (domestic) or
480-629-9835 (international) using conference ID 4577233. The call will be
open to all interested investors through a live, listen-only audio Internet
broadcast at www.go2uti.com and www.earnings.com. For those who are not
available to listen to the live broadcast, the call will be archived for one
year at both Web sites. A telephonic playback of the conference call also will
be available from approximately 11:00 a.m. PST, today, through December 9,
2012, by calling 800-406-7325 (domestic) or 303-590-3030 (international) and
using replay passcode 4577233.

About UTi Worldwide:

UTi Worldwide Inc. is an international, non-asset-based supply chain services
and solutions company providing air and ocean freight forwarding, contract
logistics, customs brokerage, distribution, inbound logistics, truckload
brokerage and other supply chain management services. The company serves a
large and diverse base of global and local companies, including clients
operating in industries with unique supply chain requirements such as the
pharmaceutical, retail, apparel, chemical, automotive and technology
industries. The company seeks to use its global network, proprietary
information technology systems, relationships with transportation providers,
and expertise in outsourced logistics services to deliver competitive
advantage to each of its clients' supply chains.

Use of Non-GAAP Financial Information:

This press release includes "non-GAAP financial measures" within the meaning
of the Securities and Exchange Commission rules. UTi believes that meaningful
analysis of its financial performance requires an understanding of the factors
underlying that performance and the company's judgments about the likelihood
that particular factors will repeat. Short-term patterns and long-term trends
may be obscured by the impact of certain items. For this reason, the company
has included information in this press release relating to organic revenue and
organic net revenue changes, which are adjusted to exclude the impact of
currency fluctuations between comparable periods. The company also has
referred to operating expenses less purchased transportation costs, and to
adjusted operating expenses less purchased transportation costs, which are
operating expenses less purchased transportation costs that are further
adjusted to exclude severance and other costs. The company has also included
information relating to organic adjusted operating expenses less purchased
transportation costs, which are adjusted operating expenses less purchased
transportation costs that are further adjusted to exclude the impact of
currency fluctuations between comparable periods. The company has further
referred to adjusted operating income and adjusted net income, each of which
is adjusted to exclude severance and other costs as described above. This
information is among the information the company uses as a basis for
evaluating company performance on a comparable basis over time, allocating
resources and planning and forecasting of future periods. The company has also
provided this information because such adjustments make performance
information more comparable to prior disclosures for investors, and may
enhance the ability of investors to analyze the company's performance. This
information is not intended to be considered in isolation or as a substitute
for, or superior to, the relevant measures prepared and presented in
accordance with U.S. GAAP. For more information on these non-GAAP financial
measures, please see the tables at the end of this press release.

Safe Harbor Statement:

Certain statements in this news release may be deemed to be forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The company intends that
all such statements be subject to the "safe-harbor" provisions contained in
those sections. Such forward-looking statements may include, but are not
limited to, statements about the continuation of adverse macroeconomic and
freight trends for the foreseeable future, the long-term outlook for the
company and the industry, the company's ability to remove approximately $25
million in annualized expenses, the status and timing of the company's freight
forwarding operating and finance systems, including its plans to launch in
additional countries by the end of fiscal 2013, the company's focus on
achieving its long-term operating ratio targets within fiscal 2015, and any
other statements not of an historical nature. Many important factors may cause
the company's actual results to differ materially from those discussed in any
such forward-looking statements, including but not limited to: volatility with
respect to global trade; global economic, political and market conditions,
including those in Africa, Asia and EMENA; risks associated with the company's
business transformation initiative; volatile fuel costs; transportation
capacity, pricing dynamics and the ability of the company to secure space on
third party aircraft, ocean vessels and other modes of transportation; changes
in foreign exchange rates; material interruptions in transportation services;
risks of international operations; risks associated with, and the potential
for penalties, fines, costs and expenses the company may incur as a result of
the ongoing publicly announced governmental investigations into the
international air freight and air cargo transportation industry and other
related investigations and lawsuits; risks of adverse legal judgments and
other liabilities not limited by contract or covered by insurance; the
financial condition of the company's customers; disruptions caused by
epidemics, natural disasters, conflicts, wars and terrorism; and the other
risks and uncertainties described in "Risk Factors" and "Forward-looking
Statements" in the company's Annual Report on Form 10-K/A for the fiscal year
ended January 31, 2012, any subsequently filed Quarterly Reports on Form 10-Q
and as described in the company's other filings with the Securities and
Exchange Commission. In light of the significant uncertainties inherent in the
forward-looking information included herein, the inclusion of such information
should not be regarded as a representation by UTi or any other person that
UTi's objectives or plans will be achieved in the timeframe anticipated or at
all. Investors are cautioned not to place undue reliance on the company's
forward-looking statements. UTi undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

UTi Worldwide Inc.
Condensed Consolidated Statements of Income
(in thousands, except share and per share amounts)
                                                              
                        Three months ended October Nine months ended October
                         31,                        31,
                        2012          2011         2012          2011
                                                              
Revenues:                (Unaudited)                (Unaudited)
Airfreight forwarding    $344,757      $431,247     $1,096,291    $1,335,948
Ocean freight forwarding 295,434       325,499      885,040       927,773
Customs brokerage        29,655        31,579       88,335        94,914
Contract logistics       203,347       217,227      608,818       629,051
Distribution             152,767       146,772      448,169       415,866
Other                    102,906       112,212      306,284       357,047
Total revenues           1,128,866     1,264,536    3,432,937     3,760,599
                                                              
Operating expenses:                                            
Purchased transportation                                       
costs:
Airfreight forwarding    265,280       335,369      853,786       1,051,426
Ocean freight forwarding 243,791       271,832      731,506       772,685
Customs brokerage        1,375         1,062        4,154         3,822
Contract logistics       53,445        53,668       157,798       151,876
Distribution             104,833       100,413      304,065       283,663
Other                    56,540        58,817       166,188       199,779
                                                              
Staff costs              219,055       238,868      675,573       715,348
Depreciation             12,254        12,204       34,979        36,437
Amortization of          2,974         3,870        9,376         12,098
intangible assets
Severance and other      9,097         1,655        12,921        9,987
Other operating expenses 137,542       138,497      403,341       416,663
Total operating expenses 1,106,186     1,216,255    3,353,687     3,653,784
Operating income         22,680        48,281       79,250        106,815
Interest expense, net    (2,225)      (3,323)     (7,527)      (11,414)
Other expense, net       (208)        (677)       (508)        (278)
Pretax income            20,247        44,281       71,215        95,123
Provision for income     7,378         13,971       23,899        29,465
taxes
Net income               12,869        30,310       47,316        65,658
Net income attributable
to noncontrolling        2,321         1,774        4,999         5,506
interests
Net income attributable  $10,548       $28,536      $42,317       $60,152
to UTi Worldwide Inc.
                                                              
Basic earnings per
common share
attributable to UTi      $0.10         $0.28        $0.41         $0.59
Worldwide Inc. common
shareholders
                                                              
Diluted earnings per
common share
attributable to UTi      $0.10         $0.28        $0.41         $0.58
Worldwide Inc. common
shareholders
                                                              
Number of
weighted-average common
shares outstanding used                                        
for per share
calculations
Basic shares             103,736,084   102,755,296  103,468,700   102,514,547
Diluted shares           103,953,783   103,410,669  103,947,047   103,460,757



UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
                                                               
                                                    October 31, January 31,
                                                     2012        2012
                                                    (Unaudited)
Assets                                                          
                                                               
Cash and cash equivalents                            $226,993    $321,761
Trade receivables, net                               996,221     947,480
Deferred income taxes                                19,897      20,372
Other current assets                                 149,069     132,545
Total current assets                                 1,392,180   1,422,158
                                                               
Property, plant and equipment, net                   245,805     216,299
Goodwill and other intangible assets, net            544,638     534,237
Investments                                          995         1,108
Deferred income taxes                                40,856      43,272
Other non-current assets                             37,336      38,575
                                                               
Total assets                                         $2,261,810  $2,255,649
                                                               
Liabilities & Equity                                            
                                                               
Bank lines of credit                                 $150,381    $76,240
Short-term borrowings                                968         1,019
Current portion of long-term borrowings              44,041      21,775
Current portion of capital lease obligations         10,792      13,768
Trade payables and other accrued liabilities         766,887     859,086
Income taxes payable                                 14,696      12,657
Deferred income taxes                                3,949       1,927
Total current liabilities                            991,714     986,472
                                                               
Long-term borrowings, excluding current portion      218,715     231,204
Capital lease obligations, excluding current portion 14,596      15,845
Deferred income taxes                                24,649      31,845
Other non-current liabilities                       40,104      38,775
                                                               
Commitments and contingencies                                   
                                                               
UTi Worldwide Inc. shareholders' equity:                        
Common stock                                         501,400     491,073
Retained earnings                                    539,769     503,675
Accumulated other comprehensive loss                 (83,059)   (55,983)
Total UTi Worldwide Inc. shareholders' equity        958,110     938,765
Non-controlling interests                            13,922      12,743
Total equity                                         972,032     951,508
                                                               
Total liabilities and equity                         $2,261,810  $2,255,649



UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                        
                                                        Nine months ended
                                                         October 31,
                                                        2012       2011
                                                        (Unaudited)
                                                                  
Operating Activities:                                              
Net income                                               $47,316    $65,658
Adjustments to reconcile net income to net cash (used              
in)/provided by operating activities:
Share-based compensation costs                           11,689    11,302
Depreciation                                            34,979    36,437
Amortization of intangible assets                        9,376     12,098
Amortization of debt issuance costs                      931       1,925
Deferred income taxes                                    (2,937)   275
Uncertain tax positions                                  (1,136)   391
Excess tax benefits from share-based compensation        (9)       (430)
Loss/(gain) on disposal of property, plant and equipment 25        (632)
Provision for doubtful accounts                          978       4,474
Other                                                   1,450     1,512
Net changes in operating assets and liabilities          (160,135) (111,339)
Net cash (used in)/provided by operating activities      (57,473)  21,671
                                                                  
Investing Activities:                                              
Purchases of property, plant and equipment, excluding    (31,371)  (36,969)
software
Proceeds from disposal of property, plant and equipment  2,484     4,706
Purchases of software and other intangible assets        (26,792)  (26,217)
Net increase in other non-current assets                 (406)     (4,186)
Other                                                    99        (29)
Net cash used in investing activities                    (55,986)  (62,695)
                                                                  
Financing Activities:                                              
Net borrowings/(repayments) under bank lines of credit   75,544    (19,450)
Net increase/(decrease) in short-term borrowings         10        (6,588)
Proceeds from issuance of long-term borrowings           3,629     153,988
Repayments of long-term borrowings                       (21,180)  (35,286)
Debt issuance costs                                      (999)     (2,153)
Repayments of capital lease obligations                  (13,757)  (12,039)
Acquisitions of non-controlling interests                —        (13,196)
Distributions to non-controlling interests and other     (2,433)   (183)
Ordinary shares settled under share-based compensation   (3,042)   (1,800)
plans
Proceeds from issuance of ordinary shares                1,671     1,803
Excess tax benefit from share-based compensation         9         430
Dividends paid                                           (6,223)   (6,165)
Net cash provided by financing activities                33,229    59,361
                                                                  
Effect of foreign exchange rate changes on cash and cash (14,538)  (6,102)
equivalents
Net (decrease)/increase in cash and cash equivalents     (94,768)  12,235
Cash and cash equivalents at beginning of period         321,761   326,795
                                                                  
Cash and cash equivalents at end of period               $226,993   $339,030

                                                                
                                                                
UTi Worldwide Inc.                                               
Segment Reporting                                                
(in thousands)                                                   
(Unaudited)                                                      
                                                                
                           Three months ended October 31, 2012
                                                                
                            Freight    Contract
                           Forwarding Logistics        Corporate   Total
                                       and Distribution
                                                                
Revenues                    $738,136   $390,730         $ —         $1,128,866
                                                                
Purchased transportation    558,543    166,721          —           725,264
costs
Staff costs                 102,476    109,166          7,413       219,055
Depreciation               3,858      7,463            933         12,254
Amortization of intangible  1,006      1,428            540         2,974
assets
Severance and other         833        6,547            1,717       9,097
Other operating expenses    46,302     86,321           4,919       137,542
Total operating expenses    713,018    377,646          15,522      1,106,186
                                                                
Operating income/(loss)     $25,118    $13,084          $(15,522) 22,680
Interest expense, net                                            (2,225)
Other expense, net                                               (208)
Pretax income                                                    20,247
Provision for income taxes                                       7,378
Net income                                                       12,869
Net income attributable to                                       2,321
non-controlling interests
Net income attributable to                                       $10,548
UTi Worldwide Inc.
                                                                
                                                                
UTi Worldwide Inc.                                               
Segment Reporting                                                
(in thousands)                                                   
(Unaudited)                                                      
                                                                
                           Three months ended October 31, 2011
                                                                
                            Freight    Contract
                           Forwarding Logistics        Corporate   Total
                                       and Distribution
                                                                
Revenues                    $859,855   $404,681         $ —         $1,264,536
                                                                
Purchased transportation    658,436    162,725          —           821,161
costs
Staff costs                 110,609    120,614          7,645       238,868
Depreciation               4,287      7,465            452         12,204
Amortization of intangible  1,051      2,279            540         3,870
assets
Severance and other         909        675              71          1,655
Other operating expenses    47,350     86,498           4,649       138,497
Total operating expenses    822,642    380,256          13,357      1,216,255
                                                                
Operating income/(loss)     $37,213    $24,425          $(13,357) 48,281
Interest expense, net                                            (3,323)
Other expense, net                                               (677)
Pretax income                                                    44,281
Provision for income taxes                                       13,971
Net income                                                       30,310
Net income attributable to                                       1,774
non-controlling interests
Net income attributable to                                       $28,536
UTi Worldwide Inc.
                                                                
                                                                
UTi Worldwide Inc.                                               
Segment Reporting                                                
(in thousands)                                                   
(Unaudited)                                                      
                                                                
                           Nine months ended October 31, 2012
                                                                
                            Freight    Contract
                           Forwarding Logistics        Corporate   Total
                                       and Distribution
                                                                
Revenues                    $2,269,917 $1,163,020       $—         $3,432,937
                                                                
Purchased transportation    1,727,281  490,216          —           2,217,497
costs
Staff costs                 316,510    333,858          25,205      675,573
Depreciation               12,108     20,863           2,008       34,979
Amortization of intangible  3,077      4,679            1,620       9,376
assets
Severance and other         3,009      7,656            2,256       12,921
Other operating expenses    137,327    252,356          13,658      403,341
Total operating expenses    2,199,312  1,109,628        44,747      3,353,687
                                                                
Operating income/(loss)     $70,605    $53,392          $(44,747) 79,250
Interest expense, net                                            (7,527)
Other expense, net                                               (508)
Pretax income                                                    71,215
Provision for income taxes                                       23,899
Net income                                                       47,316
Net income attributable to                                       4,999
non-controlling interests
Net income attributable to                                       $42,317
UTi Worldwide Inc.
                                                                
                                                                
UTi Worldwide Inc.                                               
Segment Reporting                                                
(in thousands)                                                   
(Unaudited)                                                      
                                                                
                           Nine months ended October 31, 2011
                                                                
                            Freight    Contract
                           Forwarding Logistics        Corporate   Total
                                       and Distribution
                                                                
Revenues                    $2,591,360 $1,169,239       $—         $3,760,599
                                                                
Purchased transportation    1,998,348  464,903          —           2,463,251
costs
Staff costs                 334,876    359,564          20,908      715,348
Depreciation               13,115     21,511           1,811       36,437
Amortization of intangible  3,262      6,956            1,880       12,098
assets
Severance and other         5,006      4,163            818         9,987
Other operating expenses    147,000    255,320          14,343      416,663
Total operating expenses    2,501,607  1,112,417        39,760      3,653,784
                                                                
Operating income/(loss)     $89,753    $56,822          $(39,760) 106,815
Interest expense, net                                            (11,414)
Other expense, net                                               (278)
Pretax income                                                    95,123
Provision for income taxes                                       29,465
Net income                                                       65,658
Net income attributable to                                       5,506
non-controlling interests
Net income attributable to                                       $60,152
UTi Worldwide Inc.

                                                                 
                                                                 
UTi Worldwide Inc.                                                
Geographic Reporting                                              
(in thousands)                                                    
(Unaudited)                                                       
                                                                
          Three months ended October 31, 2012
                                                                
                      Contract     Freight    Contract
           Freight    Logistics    Forwarding Logistics    Operating  Severance
          Forwarding and          Net        and          (Loss)/    and
           Revenue    Distribution Revenue    Distribution Income     Other
                      Revenue                 Net Revenue
                                                                
EMENA     $214,715   $55,467      $57,300    $31,818      $(1,363) $983
Americas  189,119    213,631      46,239     95,605       10,435     1,083
Asia       217,098    18,928       47,350     12,564       7,200      5,238
Pacific
Africa    117,204    102,704      28,704     84,022       21,930     76
Corporate —         —           —         —           (15,522)  1,717
Total     $738,136   $390,730     $179,593   $224,009     $22,680    $9,097
                                                                
          Three months ended October 31, 2011
                                                                
                      Contract     Freight    Contract
           Freight    Logistics    Forwarding Logistics    Operating  Severance
          Forwarding and          Net        and          Income/    and
           Revenue    Distribution Revenue    Distribution (Loss)     Other
                      Revenue                 Net Revenue
                                                                
EMENA     $256,160   $54,690      $66,424    $38,217      $2,441     $1,229
Americas  195,407    227,441      48,525     105,429      14,501     208
Asia       277,047    16,416       56,907     10,418       20,061     —
Pacific
Africa    131,241    106,134      29,563     87,892       24,635     147
Corporate —         —           —         —           (13,357)  71
Total     $859,855   $404,681     $201,419   $241,956     $48,281    $1,655
                                                                
                                                                
UTi Worldwide Inc.                                                
Geographic Reporting                                              
(in thousands)                                                    
(Unaudited)                                                       
                                                                
          Nine months ended October 31, 2012
                                                                
                      Contract     Freight    Contract
           Freight    Logistics    Forwarding Logistics    Operating  Severance
          Forwarding and          Net        and          Income/    and
           Revenue    Distribution Revenue    Distribution (Loss)     Other
                      Revenue                 Net Revenue
                                                                
EMENA     $695,566   $178,503     $176,485   $103,495     $567       $3,212
Americas  570,992    615,362      141,270    274,479      26,704     2,007
Asia       654,209    54,436       143,086    35,718       31,358     5,313
Pacific
Africa    349,150    314,719      81,795     259,112      65,368     133
Corporate —         —           —         —           (44,747)  2,256
Total     $2,269,917 $1,163,020   $542,636   $672,804     $79,250    $12,921
                                                                
          Nine months ended October 31, 2011
                                                                
                      Contract     Freight    Contract
           Freight    Logistics    Forwarding Logistics    Operating  Severance
          Forwarding and          Net        and          (Loss)/    and
           Revenue    Distribution Revenue    Distribution Income     Other
                      Revenue                 Net Revenue
                                                                
EMENA     $808,050   $169,756     $201,492   $115,052     $1,596     $7,216
Americas  574,877    647,313      144,912    306,781      30,177     1,558
Asia       825,159    46,006       162,595    29,330       52,765     248
Pacific
Africa    383,274    306,164      84,013     253,173      62,037     147
Corporate —         —           —         —           (39,760)  818
Total     $2,591,360 $1,169,239   $593,012   $704,336     $106,815   $9,987



UTi Worldwide Inc.
Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
                                Three months ended     Three months ended
                                 October 31, 2012       October 31, 2011
                                                       
GAAP Revenues                    $1,128,866              $1,264,536
Less: Purchased transportation   (725,264)              (821,161)
costs
Net Revenues                     $403,602                $443,375
                                                       
GAAP Operating expenses          $1,106,186              $1,216,255
Less: Purchased transportation   (725,264)              (821,161)
costs
Operating expenses less          380,922                395,094
purchased transportation costs
Severance and other (1)(2)       (9,097)                (1,655)
Non-GAAP Operating expenses      $371,825                $393,439
                                                       
GAAP Operating income            $22,680                 $48,281
Severance and other (1)(2)       9,097                   1,655
Non-GAAP Operating income        $31,777                 $49,936
                                                       
Percent of Net Revenues          7.9%                    11.3%
                                                       
GAAP Pretax income               $20,247                 $44,281
Severance and other (1)(2)       9,097                   1,655
Non-GAAP Pretax income           $29,344                 $45,936
                                                       
GAAP Provision for income taxes  $7,378                  $13,971
Severance and other (1)(2)       3,315                   522
Non-GAAP Provision for income    $10,693                 $14,493
taxes
                                                       
GAAP Net income attributable to  $10,548                 $28,536
UTi Worldwide Inc.
Adjustment for:                                         
Severance and other (1)(2)       9,097                   1,655
Income tax severance and other   (3,315)                (522)
(3)
Non-GAAP Net income attributable $16,330                 $29,669
to UTi Worldwide Inc.
                                                       
GAAP Diluted earnings per common $0.10                   $0.28
share
Adjustment for:                                         
Severance and other (1)(2)       0.09                    0.02
Income tax severance and other   (0.03)                 (0.01)
(3)
Non-GAAP Diluted earnings per    $0.16                   $0.29
common share

(1) During the three months ended October 31, 2012, the company recorded
pre-tax severance of $3,884 primarily related to transformation activities and
accrued pre-tax expenses of $5,213 relating to a legal judgment.
(2) During the three months ended October 31, 2011, the company recorded
pre-tax severance of $1,655 primarily related to transformation activities.
(3) The provisions for income tax adjustment related to the severance and
other costs were calculated based on the prevailing tax rate in each
jurisdiction.
                                                       
                                                       
UTi Worldwide Inc.
Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
                                Nine months ended      Nine months ended
                                 October 31, 2012       October 31, 2011
                                                       
GAAP Revenues                    $3,432,937              $3,760,599
Less: Purchased transportation   (2,217,497)            (2,463,251)
costs
Net Revenues                     $1,215,440              $1,297,348
                                                       
GAAP Operating expenses          $3,353,687              $3,653,784
Less: Purchased transportation   (2,217,497)            (2,463,251)
costs
Operating expenses less          1,136,190              1,190,533
purchased transportation costs
Severance and other (4)(5)       (12,921)               (9,987)
Non-GAAP Operating expenses      $1,123,269              $1,180,546
                                                       
GAAP Operating income            $79,250                 $106,815
Severance and other (4)(5)       12,921                  9,987
Non-GAAP Operating income        $92,171                 $116,802
                                                       
Percent of Net Revenues          7.6%                    9.0%
                                                       
GAAP Pretax income               $71,215                 $95,123
Severance and other (4)(5)       12,921                  9,987
Non-GAAP Pretax income           $84,136                 $105,110
                                                       
GAAP Provision for income taxes  $23,899                 $29,465
Severance and other (4)(5)       4,336                   3,094
Non-GAAP Provision for income    $28,235                 $32,559
taxes
                                                       
GAAP Net income attributable to  $42,317                 $60,152
UTi Worldwide Inc.
Adjustment for:                                         
Severance and other (4)(5)       12,921                  9,987
Income tax severance and other   (4,336)                (3,094)
(6)
Non-GAAP Net income attributable $50,902                 $67,045
to UTi Worldwide Inc.
                                                       
GAAP Diluted earnings per common $0.41                   $0.58
share
Adjustment for:                                         
Severance and other (4)(5)       0.12                   0.10
Income tax severance and other   (0.04)                 (0.03)
(6)
Non-GAAP Diluted earnings per    $0.49                   $0.65
common share
                                                       
(4) During the nine months ended October 31, 2012, the company recorded
pre-tax severance of $7,708 primarily related to transformation activities and
pre-tax accrued expenses of $5,213 relating to a legal judgment.
(5) During the nine months ended October 31, 2011, the company recorded
pre-tax severance and other charges totaling $9,987, which were comprised of
$8,073 in severance costs related to transformation activities and $1,914 in
severance and facility exit costs associated with the closure of certain
underutilized contract logistics facilities in Europe.
(6) The provisions for income tax adjustment related to the severance and
other costs were calculated based on the prevailing tax rate in each
jurisdiction.



UTi Worldwide Inc.
Organic Growth Reconciliation
(Unaudited)
                                                              
Set forth below is a reconciliation of the company's organic growth rates and
the growth rates based on the company's GAAP reported results in the company's
revenues, net revenues and operating expenses less purchased transportation
costs for the three months ended October 31, 2012.Organic growth is a
non-GAAP measure that excludes the impact of foreign currency translation.
                                                              
Three months ended                                             
October 31, 2012:
                      Total     +/(-)                  +/(-)       Adjusted
                     Net       Currency    Organic    Non-GAAP    Organic
                      Change    Impact      Growth     Items       Growth
                                                       (7)(8)
                                                              
Revenues             (11)%     4%          (7)%       —%          (7)%
Net revenues         (9)%      5%          (4)%       —%          (4)%
Operating expenses
less purchased        (4)%      5%          1%         (2)%        (1)%
transportation costs
                                                              
(7) During the three months ended October 31, 2012, the company recorded
pre-tax severance of $3,884 primarily related to transformation activities and
pre-tax accrued expenses of $5,213 relating to a legal judgment.
(8) During the three months ended October 31, 2011, the company recorded
pre-tax severance of $1,655 primarily related to transformation activities.
                                                              
                                                              
UTi Worldwide Inc.
Organic Growth Reconciliation
(Unaudited)
                                                              
Set forth below is a reconciliation of the company's organic growth rates and
the growth rates based on the company's GAAP reported results in the company's
revenues, net revenues and operating expenses less purchased transportation
costs for the nine months ended October 31, 2012.Organic growth is a non-GAAP
measure that excludes the impact of foreign currency translation.
                                                              
Nine months ended                                              
October 31, 2012:
                      Total     +/(-)                  +/(-)       Adjusted
                     Net       Currency    Organic    Non-GAAP    Organic
                      Change    Impact      Growth     Items       Growth
                                                       (9)(10)
                                                              
Revenues             (9)%      5%          (4)%       —%          (4)%
Net revenues         (6)%      6%          0%         —%          0%
Operating expenses
less purchased        (5)%      6%          1%         —%          1%
transportation costs
                                                              
(9) During the nine months ended October 31, 2012, the company recorded
pre-tax severance of $7,708 primarily related to transformation activities and
pre-tax accrued expenses of $5,213 relating to a legal judgment.
(10) During the nine months ended October 31, 2011, the company recorded
pre-tax severance and other charges totaling $9,987, which were comprised of
$8,073 in severance costs related to transformation activities and $1,914 in
severance and facility exit costs associated with the closure of certain
underutilized contract logistics facilities in Europe.

CONTACT: Jeff Misakian
         Global Vice President, Investor Relations
         (562) 552-9417
         jmisakian@go2uti.com
 
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