UTi Worldwide Reports Fiscal 2013 Fourth Quarter Results

UTi Worldwide Reports Fiscal 2013 Fourth Quarter Results

LONG BEACH, Calif., March 28, 2013 (GLOBE NEWSWIRE) -- UTi Worldwide Inc.
(Nasdaq:UTIW) today reported financial results for its fiscal 2013 fourth
quarter ended January 31, 2013.

Fiscal Fourth Quarter 2013 vs. 2012 Results:

  *Revenues were $1,099.3 million, a decrease of 4.7 percent from $1,153.6
    million.
  *Net revenues (revenues minus purchased transportation costs) were $371.1
    million, a decrease of 8.7 percent from $406.5 million.
  *Net loss attributable to UTi Worldwide Inc. was $142.8 million, or $1.38
    per diluted share, compared to net income of $12.4 million, or $0.12 per
    diluted share.
  *Excluding the items described below, non-GAAP net loss attributable to UTi
    Worldwide Inc. was $13.4 million, or $0.13 per diluted share, compared to
    non-GAAP net income of $14.7 million, or $0.15 per diluted share.
  *Adjustments to GAAP net loss in the fiscal 2013 fourth quarter included
    after-tax goodwill and intangible asset impairment charges and severance
    costs totaling $95.0 million, or $0.92 per diluted share. In addition, the
    company increased its valuation allowance on deferred tax assets by $34.5
    million, or $0.33 per diluted share.
  *Adjustments to GAAP net income in the fiscal 2012 fourth quarter were
    comprised of after-tax intangible asset impairment charges, severance and
    other costs totaling $7.9 million, or $0.08 per diluted share. The company
    also reduced its valuation allowance on deferred tax assets by $5.6
    million, or $0.05 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, "Results in our fiscal 2013
fourth quarter reflect ongoing weakness in the airfreight market and a
challenging pricing environment in freight forwarding. In addition, the
competitive dynamics in the industry remain the toughest seen in many years.
In contract logistics and distribution, we experienced reduced activity at
existing locations and made investments to prepare for newly won business.
While we secured new business in both segments in the fourth quarter, declines
in net revenue from existing accounts more than offset these wins. Clearly
these results are not satisfactory. In response, we completed in January and
February the previously announced actions necessary to reduce expenses, and we
will continue to manage costs throughout fiscal 2014. We also have begun to
take steps designed to improve our growth rates, including making changes to
our sales organization."

Kirchner continued, "Our comprehensive business process transformation is
gathering pace. We accomplished a great deal in fiscal 2013, and we plan to
achieve even more this year. We expect to deploy our new freight forwarding
operating system in 35 additional countries in fiscal 2014, with more than 70
percent of shipments on the new system by the end of this fiscal year. We
believe that progress under our transformation activities should drive
annualized gross cost savings of approximately $30-35 million in fiscal 2014
(including expense reductions that were previously announced) and
approximately $45-50 million in fiscal 2015. These cost savings are expected
to be partially offset by increased amortization and implementation expenses
related to the new systems. The macroeconomic and freight environment has
pressured margins and impacted profitability to a much greater degree than
could have been anticipated at our June 2011 investor day. Because of this
pressure, we now expect to reach our operating margin target run-rate later in
fiscal 2015 than originally expected." 

Revenues and net revenues decreased 4.7 percent and 8.7 percent, respectively,
in the fiscal 2013 fourth quarter compared to the same period last year,
primarily due to lower pricing and currency translation. On an organic basis,
revenues decreased 3.2 percent, while net revenues declined 6.9 percent in the
fiscal 2013 fourth quarter, compared to the same period last year.

Goodwill and intangible asset impairment and severance costs in the fiscal
2013 fourth quarter totaled $99.8 million on a pre-tax basis ($95.0 million
after taxes, or $0.92 per diluted share). The total includes two components.
First, the company performed an analysis of the value of its goodwill and
other intangible assets as of January 31, 2013 based on current business
conditions and determined that an impairment of these assets had occurred. The
company recorded a non-cash charge for this impairment of $94.7 million ($91.5
million after taxes, or $0.89 per diluted share). Second, the company recorded
severance costs of $5.1 million ($3.5 million after taxes, or $0.03 per
diluted share), primarily related to transformation activities. In addition,
the company increased its valuation allowance on deferred tax assets of $34.5
million, or $0.33 per diluted share, to reflect the unprofitability of certain
operations. The increase in allowance was recorded in provision for income
taxes.

Intangible asset impairment charges, severance and other costs totaled $10.3
million in the fiscal 2012 fourth quarter on a pre-tax basis, comprising an
intangible asset impairment charge of $5.2 million, severance and exit costs
of $2.0 million, and an accrual of $3.1 million relating to a legal claim that
was settled in fiscal 2013. The company also reduced its valuation allowance
on deferred tax assets by $5.6 million.

Operating expenses less purchased transportation costs were $478.6 million in
the fourth quarter of fiscal 2013. Excluding the impact of goodwill and
intangible asset impairment charges, severance and other items described
above, adjusted operating expenses less purchased transportation costs were
$378.9 million, compared to $374.3 million in the same period last year. On an
organic basis, adjusted operating expenses less purchased transportation costs
increased 3.0 percent, compared to the same period last year.

Net cash provided by operating activities totaled $98.2 million in the fourth
quarter of fiscal 2013, comparable to the $96.3 million in the same period
last year. Working capital improved significantly in the fourth quarter, but
this was largely offset by a decline in profitability in the period.

In January 2013, UTi issued $200 million in senior unsecured guaranteed notes
(the 2013 Notes), which consist of $150 million of Senior Unsecured Guaranteed
Notes, Series A, due February 1, 2022, and $50 million of Senior Unsecured
Guaranteed Notes, Series B, due February 1, 2020. As a result, the company
refinanced previously outstanding notes and eliminated scheduled principal
payments of $18.3 million that otherwise would have come due in fiscal 2014.
The refinancing also has the effect of extending debt maturities and
eliminating any principal payments for the next five years.

In addition, a portion of the proceeds from the 2013 Notes was used to prepay
another series of previously outstanding notes. The company recorded
additional interest of $2.1 million related to the prepayment. More
information on the 2013 Notes and the refinancing can be found in the
company's Form 8-K filed with the Securities and Exchange Commission on
January 31, 2013.

Kirchner concluded, "We have accomplished a great deal that is not reflected
in our financial results. We launched our freight forwarding system in six
countries and deployed Oracle financials in 15 countries. We have made further
improvements to our operating processes, launched new products and deployed a
new human resources information system globally, among other activities. The
year ahead is even more important, with much work to be done. We have made
positive changes to our organizational structure, including those to sales
that are necessary to improve our growth. Our transformation is moving forward
aggressively and expected to drive increased cost savings this year. We have
built a plan that is expected to get us on a path to improved profitability in
fiscal 2014. We are not anticipating help from the market, but we are
executing on the things we can control – profitable growth, significant
progress under our comprehensive business process transformation and cost
management."

Investor Conference Call:

UTi management will host an investor conference call today, March 28, 2013, at
8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financial results for
the fiscal 2013 fourth quarter. Investment professionals are invited to
participate in the live call by dialing 877-941-0843 (domestic) or
480-629-9866 (international) using conference ID 4607871. 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. PDT, today, through March 31, 2013,
by calling 800-406-7325 (domestic) or 303-590-3030 (international) and using
replay passcode 4607871.

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 goodwill and intangible asset impairment charges 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 net income, which is
adjusted to exclude goodwill and intangible asset impairment charges and other
costs and valuation allowances on deferred tax assets, 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 steps taken to improve growth rates and the
potential impact thereof, the continuation of adverse macroeconomic and
freight trends, the long-term outlook for the company and the industry, the
status and timing of the company's freight forwarding operating system,
including plans to launch in 35 additional countries with more than 70 percent
of shipments on the new system by the end of fiscal 2014, the company's
ability to achieve annualized gross cost savings of approximately $30-35
million in fiscal 2014 and approximately $45-50 million in fiscal 2015, the
company's expectation of achieving its long-term operating margin target
run-rate later in fiscal 2015 than originally expected, a plan that is
expected to improve profitability in fiscal 2014, 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, particularly as it relates to the global airfreight, ocean freight and
contract logistics and distribution markets; global economic, political and
market conditions, including those in Africa, Asia and EMENA; risks associated
with the company's business transformation initiative, which include
unanticipated difficulties, delays, additional costs and expenses; changes in
interest and foreign exchange rates; risks that the company might be required
to record additional impairment charges to goodwill or additional increases in
its valuation allowance on deferred tax assets; 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.

                               (Tables Follow)


UTi Worldwide Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
                                                              
                          Three months ended        Fiscal years ended
                          January 31,               January 31,
                          2013         2012         2013         2012
                          (Unaudited)
                                                              
Revenues:                                                      
Airfreight forwarding      $347,449   $389,589   $1,443,740 $1,725,537
Ocean freight forwarding   306,763     302,259     1,267,134   1,230,032
Customs brokerage          29,294      29,863      117,629     124,777
Contract logistics         176,915     195,911     785,733     824,962
Distribution              140,625     132,867     588,794     548,733
Other                      98,209      103,133     404,491     460,180
Total revenues             1,099,255   1,153,622   4,607,521   4,914,221
                                                              
Other operating expenses:                                      
Purchased transportation                                       
costs:
Airfreight forwarding      274,257     302,207     1,128,043   1,353,633
Ocean freight forwarding   257,245     247,453     1,064,081   1,020,138
Customs brokerage          1,135       1,337       5,289       5,159
Contract logistics         42,780      47,889      200,578     199,765
Distribution              93,807      89,267      397,872     372,930
Other                      58,938      58,948      225,125     258,727
                                                              
Staff costs                218,930     223,244     894,503     938,592
Depreciation               13,938      11,581      48,917      48,018
Amortization of intangible 2,886       3,663       12,262      15,761
assets
Severance and other        5,118       5,145       18,039      15,132
Goodwill impairment        93,008      --         93,008      --
Intangible assets          1,643       5,178       1,643       5,178
impairment
Other operating expenses   143,115     135,855     546,456     552,518
Total other operating      1,206,800   1,131,767   4,635,816   4,785,551
expenses
Operating (loss)/income    (107,545)   21,855      (28,295)    128,670
Interest expense, net      (5,888)     (2,372)     (13,415)    (13,786)
Other income/(expense),    69          42          (439)       (236)
net
Pretax (loss)/income       (113,364)   19,525      (42,149)    114,648
Provision for income taxes 27,992      6,185       51,891      35,650
Net (loss)/income          (141,356)   13,340      (94,040)    78,998
Net income attributable to 1,467       959         6,466       6,465
non-controlling interests
                                                              
Net (loss)/income
attributable to UTi        $(142,823) $12,381    $(100,506) $72,533
Worldwide Inc.
                                                              
Basic (loss)/earnings per
common share attributable  $(1.38)    $0.12      $(0.97)    $0.71
toUTi Worldwide Inc.
common shareholders
                                                              
Diluted (loss)/earnings
per common share
attributable toUTi        $(1.38)    $0.12      $(0.97)    $0.70
Worldwide Inc. common
shareholders
                                                              
Number of weighted average
common sharesoutstanding                                      
used for per share
calculations
Basic shares               103,778,688 102,796,633 103,544,171 102,586,527
Diluted shares             103,778,688 103,515,246 103,544,171 103,446,381



UTi Worldwide Inc.
Condensed Consolidated Balance Sheets
(in thousands)
                                                    As of January 31,
                                                    2013         2012
                                                    (Unaudited)
                                                                
ASSETS                                                           
Cash and cash equivalents                            $237,276   $321,761
Trade receivables, net                               898,809     947,480
Deferred income taxes                                19,595      20,372
Other current assets                                 156,385     132,545
Total current assets                                 1,312,065   1,422,158
                                                                
Property, plant and equipment, net                   242,898     216,299
Goodwill and other intangible assets, net            457,635     534,237
Investments                                          969         1,108
Deferred income taxes                                25,802      43,272
Other non-current assets                             34,688      38,575
Total assets                                         $2,074,057 $2,255,649
                                                                
LIABILITIES & EQUITY                                             
Bank lines of credit                                 $79,213    $76,240
Short-term borrowings                                1,129       1,019
Current portion of long-term borrowings              5,663       21,775
Current portion of capital lease obligations         11,377      13,768
Trade payables and other accrued liabilities         786,444     859,086
Income taxes payable                                 8,470       12,657
Deferred income taxes                                2,775       1,927
Total current liabilities                            895,071     986,472
                                                                
Long-term borrowings, excluding current portion      204,434     231,204
Capital lease obligations, excluding current portion 73,538      15,845
Deferred income taxes                                29,654      31,845
Other non-current liabilities                        47,178      38,775
                                                                
Commitments and contingencies                                    
                                                                
UTi Worldwide Inc. shareholders' equity:                         
Common stock                                         505,237     491,073
Retained earnings                                    396,946     503,675
Accumulated other comprehensive loss                 (92,348)    (55,983)
Total UTi Worldwide Inc. shareholders' equity        809,835     938,765
Non-controlling interests                            14,347      12,743
Total equity                                         824,182     951,508
Total liabilities and equity                         $2,074,057 $2,255,649



UTi Worldwide Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
                                                              
                                               Fiscal years ended January 31,
                                               2013            2012
                                               (Unaudited)
                                                              
OPERATING ACTIVITIES:                                          
Net (loss)/income                               $(94,040)     $78,998
Adjustments to reconcile net (loss)/income to                  
net cashprovided by operating activities:
Share-based compensation costs                  14,556         15,413
Depreciation                                    48,917         48,018
Amortization of intangible assets               12,262         15,761
Amortization of debt issuance costs             1,556          2,194
Goodwill and intangible assets impairment      94,651         5,178
Deferred income taxes                           16,957         (15,323)
Uncertain tax positions                         469            335
Excess tax benefits from share-based            (19)           (462)
compensation
(Gain)/loss on disposal of property, plant and  (682)          141
equipment
Provision for doubtful accounts                 4,507          6,863
Other                                           1,771          4,777
Net changes in operating assets and liabilities (60,131)       (43,965)
Net cash provided by operating activities       40,774         117,928
                                                              
INVESTING ACTIVITIES:                                          
Purchases of property, plant and equipment,     (49,728)       (45,682)
excluding software
Proceeds from disposals of property, plant and  3,475          5,020
equipment
Purchases of software and other intangible      (36,692)       (39,003)
assets
Net decrease/(increase) in other non-current    847            (5,975)
assets
Acquisitions and related payments               (888)          --
Other                                           134            (29)
Net cash used in investing activities           (82,852)       (85,669)
                                                              
FINANCING ACTIVITIES:                                          
Net borrowings/(repayments) under bank lines of 14,491         (94,872)
credit
Net increase/(decrease) in short-term           174            (6,353)
borrowings
Proceeds from issuances of long-term borrowings 200,869        154,744
Repayments of long-term borrowings              (205,000)      (36,133)
Debt issuance costs                             (1,745)        (2,153)
Repayments of capital lease obligations         (17,384)       (18,824)
Acquisitions of non-controlling interests       (1,920)        (13,196)
Distributions to non-controlling interests and  (2,837)        (2,469)
other
Ordinary shares settled under share-based       (3,130)        (2,035)
compensation plans
Proceeds from issuance of ordinary shares       2,502          2,091
Excess tax benefits from share-based            19             462
compensation
Dividends paid                                  (6,223)        (6,165)
Net cash used in financing activities           (20,184)       (24,903)
                                                              
Effect of foreign exchange rate changes on cash (22,223)       (12,390)
and cashequivalents
Net decrease in cash and cash equivalents       (84,485)       (5,034)
                                                              
Cash and cash equivalents at beginning of       321,761        326,795
period
                                                              
Cash and cash equivalents at end of period      $237,276      $321,761



UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
                            Three months ended January 31, 2013
                             Freight    Contract
                            Forwarding Logistics and Corporate   Total
                                        Distribution
                                                              
Revenues                     $749,162 $350,093    $--      $1,099,255
                                                              
Purchased transportation     582,087   146,075      --        728,162
costs
Staff costs                  103,630   106,601      8,699      218,930
Depreciation                 4,261     8,554        1,123      13,938
Amortization of intangible   1,039     1,307        540        2,886
assets
Severance and other          3,020     2,024        74         5,118
Goodwill impairment          --       93,008       --        93,008
Intangible assets impairment --       1,643        --        1,643
Other operating expenses     52,926    83,788       6,401      143,115
Total operating expenses     746,963   443,000      16,837     1,206,800
Operating income/(loss)      $2,199   $(92,907)   $(16,837) (107,545)
Interest expense, net                                          (5,888)
Other income, net                                              69
Pretax loss                                                    (113,364)
Provision for income taxes                                     27,992
Net loss                                                       (141,356)
Net income attributable to                                     1,467
non-controlling interests
Net loss attributable to UTi                                   $(142,823)
Worldwide Inc.
                                                              
                                                              
UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
                                                              
                            Three months ended January 31, 2012
                             Freight    Contract
                            Forwarding Logistics and Corporate   Total
                                        Distribution
                                                              
Revenues                     $792,975 $360,647    $--      $1,153,622
                                                              
Purchased transportation     601,339   145,762      --        747,101
costs
Staff costs                  109,084   106,105      8,055      223,244
Depreciation                 4,185     6,906        490        11,581
Amortization of intangible   1,136     1,987        540        3,663
assets
Severance and other          549       1,490        3,106      5,145
Intangible assets impairment --       5,178        --        5,178
Other operating expenses     49,885    81,111       4,859      135,855
Total operating expenses     766,178   348,539      17,050     1,131,767
Operating income/(loss)      $26,797  $12,108     $(17,050) 21,855
Interest expense, net                                          (2,372)
Other income, net                                              42
Pretax income                                                  19,525
Provision for income taxes                                     6,185
Net income                                                     13,340
Net income attributable to                                     959
non-controlling interests
Net income attributable to                                     $12,381
UTi Worldwide Inc.



UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)
                                                              
                          Fiscal year ended January 31, 2013
                           Freight      Contract
                          Forwarding   Logistics and Corporate   Total
                                        Distribution
                                                              
Revenues                   $3,094,408 $1,513,113  $--      $4,607,521
                                                              
Purchased transportation   2,384,697   636,291      --        3,020,988
costs
Staff costs                420,140     440,459      33,904     894,503
Depreciation               16,369      29,417       3,131      48,917
Amortization of intangible 4,116       5,986        2,160      12,262
assets
Severance and other        6,029       9,680        2,330      18,039
Goodwill impairment        --         93,008       --        93,008
Intangible assets          --         1,643        --        1,643
impairment
Other operating expenses   190,253     336,144      20,059     546,456
Total operating expenses   3,021,604   1,552,628    61,584     4,635,816
Operating income/(loss)    $72,804    $(39,515)   $(61,584) (28,295)
Interest expense, net                                          (13,415)
Other expense, net                                             (439)
Pretax loss                                                    (42,149)
Provision for income taxes                                     51,891
Net loss                                                       (94,040)
Net income attributable to                                     6,466
non-controlling interests
Net loss attributable to                                       $(100,506)
UTi Worldwide Inc.
                                                              

UTi Worldwide Inc.
Segment Reporting
(in thousands)
(Unaudited)

                          Fiscal year ended January 31, 2012
                           Freight      Contract
                          Forwarding   Logistics and Corporate   Total
                                        Distribution
                                                              
Revenues                   $3,384,335 $1,529,886  $--      $4,914,221
                                                              
Purchased transportation   2,599,687   610,665      --        3,210,352
costs
Staff costs                443,960     465,669      28,963     938,592
Depreciation               17,300      28,417       2,301      48,018
Amortization of intangible 4,398       8,943        2,420      15,761
assets
Severance and other        5,555       5,653        3,924      15,132
Intangible assets          --         5,178        --        5,178
impairment
Other operating expenses   196,885     336,431      19,202     552,518
Total operating expenses   3,267,785   1,460,956    56,810     4,785,551
Operating income/(loss)    $116,550   $68,930     $(56,810) 128,670
Interest expense, net                                          (13,786)
Other expense, net                                             (236)
Pretax income                                                  114,648
Provision for income taxes                                     35,650
Net income                                                     78,998
Net income attributable to                                     6,465
non-controlling interests
Net income attributable to                                     $72,533
UTi Worldwide Inc.



UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)

         Three months ended January 31, 2013
                     Contract     Freight    Contract
          Freight    Logistics    Forwarding Logistics    Operating     Severance Intangible Goodwill
         Forwarding and          Net        and          (Loss)/Income and Other Assets     Impairment
          Revenues   Distribution Revenues   Distribution                         Impairment
                     Revenues                Net Revenues
EMENA     $213,870 $53,434    $53,466  $31,972    $(16,192)   $3,670  $--     $4,168
Americas  179,332   185,160     43,338    84,623      (93,162)     993      --       88,840
Asia      240,546   17,563      46,006    11,467      8,473        31       --       --
Pacific
Africa    115,414   93,936      24,265    75,956      10,173       350      1,643     --
Corporate --       --         --       --         (16,837)     74       --       --
Total     $749,162 $350,093   $167,075 $204,018   $(107,545)  $5,118  $1,643   $93,008
                                                                                     
                                                                                     
         Three months ended January 31, 2012                                                
                     Contract     Freight    Contract
          Freight    Logistics    Forwarding Logistics    Operating     Severance Intangible
         Forwarding and          Net        and          Income/(Loss) and Other Assets     
          Revenues   Distribution Revenues   Distribution                         Impairment
                     Revenues                Net Revenues
EMENA     $233,076 $52,802    $66,713  $37,055    $3,174      $2,039  $--     
Americas  179,122   196,931     46,493    88,647      1,150        --      5,178     
Asia      258,559   15,503      50,348    10,116      13,411       --      --       
Pacific
Africa   122,218   95,411      28,082    79,067      21,170       --      --       
Corporate --       --         --       --         (17,050)     3,106    --       
Total     $792,975 $360,647   $191,636 $214,885   $21,855     $5,145  $5,178   



UTi Worldwide Inc.
Geographic Reporting
(in thousands)
(Unaudited)

         Fiscal year ended January 31, 2013
                       Contract     Freight    Contract
          Freight      Logistics    Forwarding Logistics    Operating     Severance Intangible Goodwill
         Forwarding   and          Net        and          (Loss)/Income and Other Assets     Impairment
          Revenues     Distribution Revenues   Distribution                         Impairment
                       Revenues                Net Revenues
EMENA     $909,436   $231,937   $229,951 $135,467   $(15,625)   $6,882  $--     $4,168
Americas  750,324     800,522     184,608   359,102     (66,458)     3,000    --       88,840
Asia      970,084     71,999      189,092   47,185      39,831       5,344    --       --
Pacific
Africa    464,564     408,655     106,060   335,068     75,541       483      1,643     --
Corporate --         --         --       --         (61,584)     2,330    --       --
Total     $3,094,408 $1,513,113 $709,711 $876,822   $(28,295)   $18,039 $1,643   $93,008
                                                                                       
         Fiscal year ended January 31, 2012                                                   
                       Contract     Freight    Contract
          Freight      Logistics    Forwarding Logistics    Operating     Severance Intangible
         Forwarding   and          Net        and          Income/(Loss) and Other Assets     
          Revenues     Distribution Revenues   Distribution                         Impairment
                       Revenues                Net Revenues
EMENA     $1,041,126 $222,558   $268,205 $152,107   $4,770      $9,255  $--     
Americas  753,999     844,244     191,405   395,428     31,327       1,558    5,178     
Asia      1,083,718   61,509      212,943   39,446      66,176       248      --       
Pacific
Africa   505,492     401,575     112,095   332,240     83,207       147      --       
Corporate --         --         --       --         (56,810)     3,924    --       
Total     $3,384,335 $1,529,886 $784,648 $919,221   $128,670    $15,132 $5,178   



UTi Worldwide Inc.
Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)

                                        Three months ended Three months ended
                                         January 31, 2013   January 31, 2012
GAAP Revenues                            $1,099,255       $1,153,622
Less: Purchased transportation costs     (728,162)         (747,101)
Net revenues                             $371,093         $406,521
                                                          
GAAP Operating expenses                  $1,206,800       $1,131,767
Less: Purchased transportation costs     (728,162)         (747,101)
Operating expenses less purchased        478,638           384,666
transportation costs
Less: Adjustment for severance and       (5,118)           (5,145)
other^(1)(2)
Less: Adjustment for goodwill            (93,008)          --
impairment^(3)
Less: Adjustment for intangible assets   (1,643)           (5,178)
impairment^(4)(5)
Non-GAAP Operating expenses              $378,869         $374,343
                                                          
GAAP Operating (loss)/income             $(107,545)       $21,855
Add: Adjustment for severance and        5,118             5,145
other^(1)(2)
Add: Adjustment for goodwill             93,008            --
impairment^(3)
Add: Adjustment for intangible assets    1,643             5,178
impairment^(4)(5)
Non-GAAP Operating (loss)/income         $(7,776)         $32,178
                                                          
Percent of Net revenues                  -2.1%              7.9%
                                                          
GAAP Pretax (loss)/income                $(113,364)       $19,525
Add: Adjustment for severance and        5,118             5,145
other^(1)(2)
Add: Adjustment for goodwill             93,008            --
impairment^(3)
Add: Adjustment for intangible assets    1,643             5,178
impairment^(4)(5)
Non-GAAP Pretax (loss)/income            $(13,595)        $29,848
                                                          
GAAP Provision for income taxes          $27,992          $6,185
Add: Adjustment for severance and        1,587             646
other^(6)
Add: Adjustment for goodwill             2,717             --
impairment^(6)
Add: Adjustment for intangible assets    460               1,791
impairment^(6)
(Less)/Add: Adjustment for deferred tax  (34,458)          5,582
asset valuation allowances ^(6)
Non-GAAP Provision for income taxes      $(1,702)         $14,204
                                                          
GAAP Net (loss)/income attributable to   $(142,823)       $12,381
UTi Worldwide Inc.
Adjustment for:                                            
Severance and other^(1)(2)               5,118             5,145
Goodwill impairment^(3)                  93,008            --
Intangible assets impairment^(4)(5)      1,643             5,178
Income tax effect severance and          (1,587)           (646)
other^(6)
Income tax effect goodwill               (2,717)           --
impairment^(6)
Income tax effect intangible asset       (460)             (1,791)
impairment^(6)
Adjustment for deferred tax asset        34,458            (5,582)
valuation allowances^(6)
Non-GAAP Net (loss)/income attributable  $(13,360)        $14,685
to UTi Worldwide Inc.
                                                          
GAAP Diluted (loss)/earnings per common  $(1.38)          $0.12
share
Adjustment for:                                            
Severance and other^(1)(2)               0.05              0.05
Goodwill impairment^(3)                  0.90              --
Intangible assets impairment^(4)(5)      0.02              0.05
Income tax effect severance and          (0.02)            (0.01)
other^(6)
Income tax effect goodwill               (0.03)            --
impairment^(6)
Income tax effect intangible asset       --               (0.01)
impairment^(6)
Adjustment for deferred tax asset        0.33              (0.05)
valuation allowances^(6)
Non-GAAP Diluted (loss)/earnings per     $(0.13)          $0.15
common share

(1) During the three months ended January 31, 2013, the company recorded a
pre-tax severance of $5,118 primarily related to transformation activities.

(2) During the three months ended January 31, 2012, the company recorded a
pre-tax severance of $1,572 and facility exit costs of $467 primarily related
to transformation activities.The company recorded a charge of $3,106
representing an estimated settlement value for all years under review relating
to a dispute with the South African Revenue Service with respect to the
company's use of "owner drivers" for the collection and delivery of cargo in
South Africa.

(3) During the three months ended January 31, 2013, the company recorded a
pre-tax goodwill impairment charge of $93,008, as a result of continued
economic weakness in certain of the regions in which we operate.

(4) During the three months ended January 31, 2013, the company recorded a
pre-tax intangible asset impairment charge of $1,643, relates to the
recoverability of value assigned to certain client relationships within one of
the company's pharmaceutical distribution business in South Africa.

(5) During the three months ended January 31, 2012, the company recorded a
pre-tax intangible asset impairment totaling $5,178, relating substantially to
all of the unamortized valuation of the customer list from an acquisition in
2004.The intangible asset became impaired because of the non-renewal of one
contract beginning July 2012, where the company was not prepared to lower its
returns to retain the business.

(6) The provision for income tax adjustment related to the severance and other
costs and intangible asset impairments and were calculated based on the
prevailing tax rate in each jurisdiction.In addition, the adjustment for
deferred tax asset valuation allowances includes changes in deferred tax
assets associated with amalgamations of certain of the company's subsidiaries.


UTi Worldwide Inc.
Supplemental Financial Information – Reconciliation to US GAAP
(in thousands, except per share amounts)
(Unaudited)
                                                           
                                          Fiscal year ended Fiscal year ended
                                           January 31, 2013  January 31, 2012
GAAP Revenues                              $4,607,521      $4,914,221
Less: Purchased transportation costs       (3,020,988)      (3,210,352)
Net revenues                               $1,586,533      $1,703,869
                                                           
GAAP Operating expenses                    $4,635,816      $4,785,551
Less: Purchased transportation costs       (3,020,988)      (3,210,352)
Operating expenses less purchased          1,614,828        1,575,199
transportation costs
Less: Adjustment for severance and         (18,039)         (15,132)
other^(7)(8)
Less: Adjustment for goodwill              (93,008)         --
impairment^(9)
Less: Adjustment for intangible assets     (1,643)          (5,178)
impairment^(10)(11)
Non-GAAP Operating expenses                $1,502,138      $1,554,889
                                                           
GAAP Operating (loss)/income               $(28,295)       $128,670
Add: Adjustment for severance and          18,039           15,132
other^(7)(8)
Add: Adjustment for goodwill               93,008           --
impairment^(9)
Add: Adjustment for intangible assets      1,643            5,178
impairment^(10)(11)
Non-GAAP Operating income                  $84,395         $148,980
                                                           
Percent of Net revenues                    5.3%              8.7%
                                                           
GAAP Pretax (loss)/income                  $(42,149)       $114,648
Add: Adjustment for severance and          18,039           15,132
other^(7)(8)
Add: Adjustment for goodwill               93,008           --
impairment^(9)
Add: Adjustment for intangible assets      1,643            5,178
impairment^(10)(11)
Non-GAAP Pretax income                     $70,541         $134,958
                                                           
GAAP Provision for income taxes            $51,891         $35,650
Add: Adjustment for severance and          5,538            3,740
other^(12)
Add: Adjustment for goodwill               2,717            --
impairment^(12)
Add: Adjustment for intangible assets      460              1,791
impairment^(12)
(Less)/Add: Adjustment for deferred tax    (37,068)         --
asset valuation allowances^(12)
Non-GAAP Provision for income taxes        $23,538         $41,181
                                                           
GAAP Net (loss)/income attributable to UTi $(100,506)      $72,533
Worldwide Inc.
Adjustment for:                                             
Severance and other^(7)(8)                 18,039           15,132
Goodwill impairment^(9)                    93,008           --
Intangible assets impairment^(10)(11)      1,643            5,178
Income tax effect severance and other^(12) (5,538)          (3,740)
Income tax effect goodwill impairment^(12) (2,717)          --
Income tax effect intangible asset         (460)            (1,791)
impairment^(12)
Adjustment for deferred tax asset          37,068           --
valuation allowances^(12)
Non-GAAP Net income attributable to UTi    $40,537         $87,312
Worldwide Inc.
                                                           
GAAP Diluted (loss)/earnings per common    $(0.97)         $0.70
share
Adjustment for:                                             
Severance and other^(7)(8)(13)             0.17             0.15
Goodwill impairment^(9)(13)                0.89             --
Intangible assets impairment^(10)(11)(13)  0.02             0.05
Income tax effect severance and            (0.05)           (0.04)
other^(12)(13)
Income tax effect goodwill                 (0.03)           --
impairment^(12)(13)
Income tax effect intangible asset         --              (0.02)
impairment^(12)(13)
Adjustment for deferred tax asset          0.36             --
valuation allowances^(12)(13)
Non-GAAP Diluted earnings per common share $0.39           $0.84

(7) During the fiscal year ended January 31, 2013, the company recorded a
pre-tax severance of $12,826 primarily related to transformation activities
and accrued pre-tax expenses of $5,213 relating to a legal judgment.

(8) During the fiscal year ended January 31, 2012, the company recorded a
pre-tax severance of $9,645 and facility exit costs of $2,381 primarily
related to transformation activities.The company recorded a charge of $3,106
representing an estimated settlement value for all years under review relating
to a dispute with the South African Revenue Service with respect to the
company's use of "owner drivers" for the collection and delivery of cargo in
South Africa.

(9) During the fiscal year ended January 31, 2013, the company recorded a
pre-tax goodwill impairment charge of $93,008, as a result of continued
economic weakness in certain of the regions in which we operate.

(10) During the fiscal year ended January 31, 2013, the company recorded a
pre-tax intangible asset impairment charge of $1,643, relates to the
recoverability of value assigned to certain client relationships within one of
the company's pharmaceutical distribution business in South Africa.

(11) During the fiscal year ended January 31, 2012, the company recorded a
pre-tax intangible asset impairment totaling $5,178, relating substantially to
all of the unamortized valuation of the customer list from an acquisition in
2004.The intangible asset became impaired because of the non-renewal of one
contract beginning July 2012, where the company was not prepared to lower its
returns to retain the business.

(12) The provision for income tax adjustment related to the severance and
other costs and intangible asset impairments and were calculated based on the
prevailing tax rate in each jurisdiction.In addition, the adjustment for
deferred tax asset valuation allowances includes changes in deferred tax
assets associated with amalgamations of certain of the company's subsidiaries.

(13) Diluted per share amounts for the year ended January 31, 2013 are based
upon diluted shares of 104,053,833.

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 and fiscal year ended January 31, 2013.Organic
growth is a non-GAAP measure that excludes the impact of foreign currency
translation.

                         Three months ended January 31, 2013
                          Total  +/(-)    Organic +/(-)              Adjusted
                         Net    Currency Growth  Non-GAAP           Organic
                          Change Impact           Items^(14)(16)(17) Growth
Revenues                  (5)%  2%      (3)%   --%              (3)%
Net revenues              (9)%  2%      (7)%   --%              (7)%
Operating expenses less
purchased transportation  24%   2%      26%    (23)%             3%
costs
                                                                
                         Fiscal year ended January 31, 2013
                          Total  +/(-)    Organic +/(-)              Adjusted
                         Net    Currency Growth  Non-GAAP           Organic
                          Change Impact           Items^(15)(16)(17) Growth
Revenues                  (6)%  4%      (2)%   --%              (2)%
Net revenues              (7)%  5%      (2)%   --%              (2)%
Operating expenses
lesspurchased            3%    5%      8%     (6)%              2%
transportation costs

(14) During the three months ended January 31, 2013, the company recorded a
pre-tax severance of $5,118 primarily related to transformation activities.

(15) During the fiscal year ended January 31, 2013, the company recorded a
pre-tax severance of $12,826 primarily related to transformation activities
and accrued pre-tax expenses of $5,213 relating to a legal judgment.

(16) During the three months and fiscal year ended January 31, 2013, the
company recorded pre-tax goodwill impairment charge of $93,008, as a result of
continued economic weakness in certain of the regions in which we operate.

(17) During the three months and fiscal year ended January 31, 2013, the
company recorded a pre-tax intangible asset impairment charge of $1,643,
related to the recoverability of value assigned to certain client
relationships within one of the company's pharmaceutical distribution business
in South Africa.

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