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Chief Financial Officer
UTi WORLDWIDE REPORTS SECOND QUARTER FISCAL 2016 RESULTS
Long Beach, Calif., September 3, 2015 UTi Worldwide Inc. (NASDAQ: UTIW) today reported financial results for its fiscal 2016 second quarter ended July 31, 2015.
Edward G. Feitzinger, chief executive officer, said, We continued to make progress against our four strategic priorities to achieve our long-term goals and improve performance, in spite of unseasonably weak demand in key air and ocean markets this quarter. I am very pleased that we were able to deliver a second consecutive quarter of solid CL&D performance, with year-to-date CL&D results slightly ahead of our internal expectations. We managed our cost structure and pushed productivity improvements throughout the company, especially in freight forwarding. We had one of the strongest working capital performances in the companys history for a second fiscal quarter and continued to drive improvements in days sales outstanding. We delivered gains in our freight forwarding yields on a sequential basis. Freight forwarding volumes have stabilized sequentially as we have demonstrated improved client retention; however, normal seasonal volume growth did not occur in the second fiscal quarter due to the global macroeconomic slowdown. We do not expect macroeconomic headwinds to abate during the second half of the year, but we do anticipate that our second half volumes and net revenues will benefit from the new client wins we recorded in the first half of the year.
Financial Results for Second Quarter Fiscal Year 2016
For the second quarter of fiscal year 2016, revenues decreased 16.5% to $913.9 million, compared to $1,094.1 million for the prior year period, while net revenues decreased 14.0% to $338.5 million, compared to $393.7 million for the prior year period. The decrease in net revenues was primarily related to lower air and ocean volumes in freight forwarding as well as the strengthening of the U.S. dollar against the Euro and South African Rand compared to the prior year comparable period. On a constant currency basis, revenues and net revenues were down 8.8% and 5.4%, respectively. As we do every year in the second quarter, we performed an analysis on the value of our goodwill as of July 31, 2015. As a result we determined that an impairment of goodwill had occurred in our freight forwarding segment. Accordingly, we recorded a charge for this impairment of $50.0 million. The operating loss for the second quarter of fiscal 2016, inclusive of the goodwill impairment, was $61.2 million compared to operating
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The following information was filed by Uti Worldwide Inc (UTIW) on Thursday, September 3, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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