UTI Out of Financial Compliance Falls Most Since 2000 IPO

UTI Worldwide Inc. plummeted 30 percent, the most among companies in the Nasdaq Composite Index, after the freight forwarder disclosed that it wasn’t in compliance with some financial covenants.

Today’s plunge to $10.74 cut UTI’s market value to $1.13 billion and dragged the stock to its lowest closing price since June 2009. The slide marked the biggest one-day decline since the company’s initial public offering in November 2000.

UTI obtained compliance waivers for $200 million in senior unsecured notes and its credit global facilities to cover failures from Jan. 31 through April 15, according to a filing. UTI said it will issue $350 million of senior convertible notes due 2019 and $175 million of 7 percent convertible preferred shares to P2 Capital Partners LLC, its largest stockholder.

“Completion of each of the elements of our capital structure will provide us with sufficient liquidity to fund our business through at least fiscal 2015,” UTI said in the filing. The company has an operating base in Long Beach, California.

UTI’s swoon dwarfed Cerus Corp.’s 17 percent drop, the second-largest among the 2,479 stocks on the Nasdaq index.

UTI reported preliminary results for the fourth quarter of its 2014 fiscal year that included a loss of 33 cents to 38 cents a share. Sales were in a range of $1.05 billion to $1.1 billion, the company said, short of the average estimate of $1.13 billion in a Bloomberg survey of 14 analysts.

UTI is a so-called non-asset-based forwarder, with services that include customs brokerage and warehousing. Air and ocean-freight forwarding were its biggest businesses during its 2013 fiscal year, accounting for about 59 percent of the company’s $4.61 billion in revenue.

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