Expeditors Reports Fourth Quarter 2023 EPS of $1.09 BusinessWire
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    Expeditors Reports Fourth Quarter 2023 EPS of $1.09
    8:30a ET February 20 '24 BusinessWire

    Expeditors International of Washington, Inc. (NYSE:EXPD) today announced fourth quarter 2023 financial results including the following highlights compared to the same quarter of 2022:

    Diluted Net Earnings Attributable to Shareholders per share (EPS(1)) decreased 21% to $1.09 Net Earnings Attributable to Shareholders decreased 28% to $159 million Operating Income decreased 40% to $199 million Revenues decreased 34% to $2.3 billion Airfreight tonnage volume decreased 3% and ocean container volume decreased 10%

    "While ocean and air markets have been recovering from the massive disruptions brought on by the global Covid-19 pandemic, we continue to face further market uncertainty due to the current conflicts in the Middle East and on the Red Sea," said Jeffrey S. Musser, President and Chief Executive Officer. "Further, volumes and capacity have remained uncertain due to additional capacity recently brought into the marketplace, while shippers have cautiously sought to avoid overextending their inventory levels. These factors created an environment where rates, which had fallen fairly significantly from the pandemic period, stabilized in ocean and, in the case of air, increased in the fourth quarter of 2023. If I had to use one key word to describe the fourth quarter and all of 2023, it would be 'uncertainty.'

    "As a company we have continued to remain focused on bringing expenses in line with revenue, as shown by headcount reductions. Compensation remains our second largest expenditure behind freight costs and is the area where we know we can have the largest impact from the standpoint of controlling expenses. We also know that there is more work that we can and will do to control expenses moving forward.

    "We should again caution that our business is service-based, and we rely on highly skilled individuals to support our customers. History tells us that global trade operates in cycles and that we have periods when global volumes decline, as well as periods when global volumes grow. We've seen a year of declines in 2023, but we need to work hard to ensure that we have the right level of staffing to handle market increases and our expected growth in market share as we move forward. Managing expenses is an important role of any leadership team, but cutting expenses is only one part of effective management. Equally important is the expectation that management will grow the business. We remain committed to both."

    Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, "Despite reducing headcount in each quarter of 2023 and bringing costs down both sequentially and year-over-year, expenses are still high when compared to our efficiency target and we are working to bring expenses down further. Even though compensation, our largest and most variable expense, is 20% lower than the same quarter a year ago, just about everything else is more expensive. We are not as efficient as we need to be for the current environment of excess capacity, weak demand, soft rates, and economic uncertainty. We continue to be focused on further aligning headcount and overhead expenses with lower levels of transactions and volumes. At the same time, we recognize the need to be prepared when tonnage and volumes eventually begin to trend upward in a rate environment that is less volatile."

    Mr. Powell noted that the Company generated $1.1 billion in cash flow from operations in 2023 and returned $1.6 billion to shareholders in share repurchases and dividends.

    Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

    _______________________
    (1)Diluted earnings attributable to shareholders per share.
    

    Disclaimer on Forward-Looking Statements:

    Certain statements contained in this news release are "forward-looking statements," based on management's views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding uncertainty in the ocean and air markets, including uncertainty due to conflicts in the Middle East and Red Sea; new capacity in the marketplace; cautious shipper demand and variable rate stability. Future financial performance could differ materially because of factors such as: our ability to reduce headcount and to control expenses and bring them in line with revenue; that volumes and tonnage will increase and that we will be able to grow in market share; that management is able to grow the business; that we are able to improve our efficiency; our ability to leverage the strength of our carrier relationships; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. The normalizing of the supply chain at the end of the pandemic, along with the current uncertainty in the global economy, could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform and potential litigation as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company's most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.

     
    Expeditors International of Washington, Inc.
    Fourth quarter 2023 Earnings Release, February 20, 2024
    Financial Highlights for the three and twelve months ended December 31, 2023 and 2022 (Unaudited)
    (in 000's of US dollars except share data)
                                                                                                                                                                                                             
                                                                                                                        Three months ended December 31,                                                                                                                                             Twelve months ended December 31,
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------                              ------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                2023                                 2022                         % Change                       2023                                 2022                         % Change
                                                                                        -------------------------------  --------------------                      -------------------------------  --------------------                      --------------------                      -------------------------------  --------------------                      -------------------------------  --------------------                      --------------------
    Revenues                                                         $                      2,277,768     $                      3,441,528                    (34)%   $                      9,300,110     $                     17,071,284                    (46)%
    Directly related cost of transportation and other expenses (1)   $                      1,513,604     $                      2,425,565                    (38)%   $                      6,054,000     $                     12,576,897                    (52)%
    Salaries and other operating expenses (2)                        $                        564,766     $                        686,257                    (18)%   $                      2,306,177     $                      2,670,016                    (14)%
    Operating income                                                 $                        199,398     $                        329,706                    (40)%   $                        939,933     $                      1,824,371                    (48)%
    Net earnings attributable to shareholders                        $                        158,719     $                        219,276                    (28)%   $                        752,883     $                      1,357,399                    (45)%
    Diluted earnings attributable to shareholders per share          $                           1.09     $                           1.38                    (21)%   $                           5.01     $                           8.26                    (39)%
    Basic earnings attributable to shareholders per share            $                           1.09     $                           1.39                    (22)%   $                           5.05     $                           8.33                    (39)%
    Diluted weighted average shares outstanding                            145,891           158,535               150,186           164,427      
    Basic weighted average shares outstanding                              144,979           157,269               149,141           163,010      
    ________________
    (1)Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.
    (2)Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.
    

    During the three and twelve months ended December 31, 2023, we repurchased 1.6 million and 12.1 million shares of common stock at an average price of $119.22 and $114.68 per share, respectively. During the three and twelve months ended December 31, 2022, we repurchased 5.0 million and 14.5 million shares of common stock at an average price of $112.76 and $108.88 per share, respectively. On February 19, 2024 the Board of Directors amended the Discretionary Stock Repurchase Plan to further authorize share repurchases down to 130 million shares of common stock. This authorization has no expiration date. In addition, during 2023 and 2022, we paid cash dividends of $1.38 and $1.34 per share, respectively.

                                                Employee Full-time Equivalents as of                                
                                                                                                  December 31,
                                                       --------------------------------------------------------------------------------------------      --------------------
                             2023                            2022             
                                                       --------------------------  --------------------                      --------------------------  --------------------
    North America                      6,864        7,778  
    Europe                             3,791        4,228  
    North Asia                         2,260        2,448  
    South Asia                         1,693        1,851  
    Middle East, Africa and India      1,428        1,540  
    Latin America                        750          859  
    Information Systems                1,259        1,173  
    Corporate                            407          425  
                                                       -------------------- ------ --------------------                      -------------------- ------ --------------------
    
                         Fourth quarter year-over-year
                                                            percentage (decrease) increase in:
                                              ------------------------------------------------------------
             Airfreight            Ocean freight
                                                      kilos                                      FEU
                                              --------------------                      --------------------
            2023                
    --------------------
    October                        (6)%                   (12)%
    November                       (6)%                   (10)%
    December                        3%                    (7)%
    

    Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 23, 2024 will be considered in management's 8-K "Responses to Selected Questions."

     
                                                                                                                                   EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
                                                                                                                                                 AND SUBSIDIARIES
                                                                                                                                       Condensed Consolidated Balance Sheets
                                                                                                                                       (In thousands, except per share data)
                                                                                                                                                    (Unaudited)
                                                                                                                                                                         
                                                                                                                                              December 31,                            December 31,             
                                                                                                                                                                                        2023                                                                          2022
                                                                                                                                                                        ----------------------------------  --------------------                      ----------------------------------  --------------------
    Assets:                                                                                                                                                                                 
    Current Assets:                                                                                                                                                                         
    Cash and cash equivalents                                                                                                                        $                         1,512,883     $                         2,034,131  
    Accounts receivable, less allowance for credit loss of $6,550 and $9,466 at December 31, 2023 and 2022, respectively                                    1,532,599            2,107,645  
    Deferred contract costs                                                                                                                                   218,807              257,545  
    Other                                                                                                                                                     170,907              118,696  
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                            3,435,196            4,518,017  
       Total current assets
    Property and equipment, net                                                                                                                               479,225              501,916  
    Operating lease right-of-use assets                                                                                                                       516,280              507,503  
    Goodwill                                                                                                                                                    7,927                7,927  
    Deferred federal and state income taxes, net                                                                                                               63,690               37,449  
    Other assets, net                                                                                                                                          21,491               17,622  
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                     $                         4,523,809     $                         5,590,434  
       Total assets
                                                                                                                                                                        ==================== ============== ====================                      ==================== ============== ====================
    Liabilities:                                                                                                                                                                            
    Current Liabilities:                                                                                                                                                                    
    Accounts payable                                                                                                                                 $                           860,856     $                         1,108,996  
    Accrued expenses, primarily salaries and related costs                                                                                                    447,336              479,262  
    Contract liabilities                                                                                                                                      280,909              323,101  
    Current portion of operating lease liabilities                                                                                                             99,749               95,621  
    Federal, state and foreign income taxes                                                                                                                    15,562               47,075  
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                            1,704,412            2,054,055  
       Total current liabilities
    Noncurrent portion of operating lease liabilities                                                                                                         427,984              422,844  
    Commitments and contingencies                                                                                                                                                           
    Shareholders' Equity:                                                                                                                                        
    Preferred stock, none issued                                                                                                                       --       --  
    Common stock, par value $0.01 per share. Issued and outstanding: 143,866 shares and 154,313 shares at December 31, 2023 and 2022, respectively              1,439                1,543  
    Additional paid-in capital                                                                                                                         --                  139  
    Retained earnings                                                                                                                                       2,580,968            3,310,892  
    Accumulated other comprehensive loss                                                                                                                     (192,057 )                              (202,553 )
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                            2,390,350            3,110,021  
       Total shareholders' equity
    Noncontrolling interest                                                                                                                                     1,063                3,514  
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                            2,391,413            3,113,535  
       Total equity
                                                                                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                     $                         4,523,809     $                         5,590,434  
          Total liabilities and equity
                                                                                                                                                                        ==================== ============== ====================                      ==================== ============== ====================
    
                                                                                                                                                                                         EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
                                                                                                                                                                                                       AND SUBSIDIARIES
                                                                                                                                                                                         Condensed Consolidated Statements of Earnings
                                                                                                                                                                                             (In thousands, except per share data)
                                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                                                                                                                                     
                                                                                                                Three months ended                                                                                                                Twelve months ended                                                      
                                                                                                                                                         December 31,                                                                                                                                                            December 31,
                                                                                                ------------------------------------------------------------------------------------------------------------------------      --------------------                      ------------------------------------------------------------------------------------------------------------------------      --------------------
                                                                             2023                                          2022                                          2023                                          2022                    
                                                                                                ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
    Revenues:                                                                                                                                                                         
    Airfreight services                                                      $                                 866,122     $                               1,204,810     $                               3,246,527     $                               5,886,886  
    Ocean freight and ocean services                                                        511,854                  1,124,088                  2,363,243                  6,544,559  
    Customs brokerage and other services                                                    899,792                  1,112,630                  3,690,340                  4,639,839  
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                          2,277,768                  3,441,528                  9,300,110                 17,071,284  
       Total revenues
    Operating Expenses:                                                                                                                                                               
    Airfreight services                                                                     639,725                    899,865                  2,347,293                  4,359,726  
    Ocean freight and ocean services                                                        357,788                    842,103                  1,634,947                  5,188,066  
    Customs brokerage and other services                                                    516,091                    683,597                  2,071,760                  3,029,105  
    Salaries and related                                                                    409,605                    509,884                  1,700,516                  2,056,387  
    Rent and occupancy                                                                       58,134                     54,291                    232,358                    209,532  
    Depreciation and amortization                                                            21,386                     14,922                     67,760                     57,338  
    Selling and promotion                                                                     9,066                      8,119                     27,913                     24,293  
    Other                                                                                    66,575                     99,041                    277,630                    322,466  
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                          2,078,370                  3,111,822                  8,360,177                 15,246,913  
       Total operating expenses
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                            199,398                    329,706                    939,933                  1,824,371  
       Operating income
    Other Income (Expense):                                                                                                                                                           
    Interest income                                                                          16,728                     13,107                     70,451                     25,554  
    Interest expense                                                                           (159 )                                     (22,245 )                                      (4,800 )                                     (23,277 )
    Other, net                                                                                  409                        480                      9,444                      9,243  
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                             16,978                     (8,658 )                                      75,095                     11,520  
       Other income (expense), net
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Earnings before income taxes                                                            216,376                    321,048                  1,015,028                  1,835,891  
    Income tax expense                                                                       57,231                    106,311                    263,249                    475,286  
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                            159,145                    214,737                    751,779                  1,360,605  
       Net earnings
    Less net earnings (losses) attributable to the noncontrolling interest                      426                     (4,539 )                                      (1,104 )                                       3,206  
                                                                                                -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                             $                                 158,719     $                                 219,276     $                                 752,883     $                               1,357,399  
       Net earnings attributable to shareholders
                                                                                                ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
    Diluted earnings attributable to shareholders per share                  $                                    1.09     $                                    1.38     $                                    5.01     $                                    8.26  
                                                                                                ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
    Basic earnings attributable to shareholders per share                    $                                    1.09     $                                    1.39     $                                    5.05     $                                    8.33  
                                                                                                ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
    Weighted average diluted shares outstanding                                             145,891                    158,535                    150,186                    164,427  
                                                                                                ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
    Weighted average basic shares outstanding                                               144,979                    157,269                    149,141                    163,010  
                                                                                                ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                                       
    
                                                                                                                                                                                            EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
                                                                                                                                                                                                          AND SUBSIDIARIES
                                                                                                                                                                                           Condensed Consolidated Statements of Cash Flows
                                                                                                                                                                                                           (In thousands)
                                                                                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                                                                                           
                                                                                                                      Three months ended                                                                                                                Twelve months ended                                                      
                                                                                                                                                               December 31,                                                                                                                                                            December 31,
                                                                                                      ------------------------------------------------------------------------------------------------------------------------      --------------------                      ------------------------------------------------------------------------------------------------------------------------      --------------------
                                                                                   2023                                          2022                                          2023                                          2022                    
                                                                                                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------                      ----------------------------------------  --------------------
    Operating Activities:                                                                                                                                                                   
                                                                                             
    Net earnings                                                                   $                                 159,145     $                                 214,737     $                                 751,779     $                               1,360,605  
    Adjustments to reconcile net earnings to net cash from operating activities:                                                                                                            
                                                                                                    1,627                      1,133                      3,943                     11,050  
       Provisions for losses on accounts receivable
                                                                                                  (14,974 )                                     (18,312 )                                     (22,916 )                                     (33,240 )
       Deferred income tax benefit
                                                                                                   11,437                     13,101                     58,399                     64,397  
       Stock compensation expense
                                                                                                   21,386                     14,922                     67,760                     57,338  
       Depreciation and amortization
                                                                                                    2,065                      1,108                      8,461                      1,252  
       Other, net
                                                                                                                                                                                            
       Changes in operating assets and liabilities:
                                                                                                  (55,481 )                                     711,977                    573,724                  1,592,341  
          (Increase) decrease in accounts receivable
                                                                                                   11,645                   (454,221 )                                    (300,345 )                                    (798,123 )
          Increase (decrease) in accounts payable and accrued expenses
                                                                                                    8,082                    277,805                     36,952                    714,960  
          Decrease in deferred contract costs
                                                                                                   (6,527 )                                    (309,530 )                                     (40,076 )                                    (798,356 )
          Decrease in contract liabilities
                                                                                                   20,445                     23,439                    (77,298 )                                     (55,129 )
          Increase (decrease) in income taxes payable, net
                                                                                                     (497 )                                      10,540                     (7,192 )                                      12,580  
          (Increase) decrease in other, net
                                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Net cash from operating activities                                                            158,353                    486,699                  1,053,191                  2,129,675  
    Investing Activities:                                                                                                                                                                   
    Purchase of property and equipment                                                            (10,714 )                                     (18,326 )                                     (39,314 )                                     (86,824 )
    Other, net                                                                                         90                       (245 )                                        (119 )                                        (890 )
                                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Net cash from investing activities                                                            (10,624 )                                     (18,571 )                                     (39,433 )                                     (87,714 )
    Financing Activities:                                                                                                                                                                   
    Payments on borrowing on lines of credit                                                       (4,507 )                                        (688 )                                     (38,143 )                                     (30,289 )
    Proceeds from borrowing on lines of credit                                                      5,246                     25,211                     32,199                     81,756  
    Proceeds from issuance of common stock                                                          4,584                      7,662                     84,889                     80,980  
    Repurchases of common stock                                                                  (193,592 )                                    (563,802 )                                  (1,392,886 )                                  (1,581,908 )
    Dividends Paid                                                                                (99,766 )                                    (103,971 )                                    (202,029 )                                    (213,799 )
    Payments for taxes related to net share settlement of equity awards                                (5 )                                          (2 )                                     (19,506 )                                     (19,335 )
    Distributions to noncontrolling interest                                                       (1,089 )                                      (1,402 )                                      (1,089 )                                      (1,945 )
                                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Net cash from financing activities                                                           (289,129 )                                    (636,992 )                                  (1,536,565 )                                  (1,684,540 )
    Effect of exchange rate changes on cash and cash equivalents                                   14,855                     48,461                      1,559                    (51,982 )
                                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Change in cash and cash equivalents                                                          (126,545 )                                    (120,403 )                                    (521,248 )                                     305,439  
    Cash and cash equivalents at beginning of period                                            1,639,428                  2,154,534                  2,034,131                  1,728,692  
                                                                                                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
    Cash and cash equivalents at end of period                                     $                               1,512,883     $                               2,034,131     $                               1,512,883     $                               2,034,131  
                                                                                                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
    Taxes Paid:                                                                                                                                                                             
    Income taxes                                                                   $                                  50,321     $                                 100,822     $                                 356,380     $                                 566,533  
    
                                                                                                                                                                                                                                         EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
                                                                                                                                                                                                                                         AND SUBSIDIARIES
                                                                                                                                                                                                                                         Business Segment Information
                                                                                                                                                                                                                                         (In thousands)
                                                                                                                                                                                                                                         (Unaudited)
                                                                                                                                                                                                 
                                                         UNITED                          OTHER                               LATIN                               NORTH                               SOUTH                              EUROPE                              MIDDLE                                ELIMI-                               CONSOLI-             
                                                                                               STATES                                                                NORTH                                                                    AMERICA                                                                    ASIA                                                                      ASIA                                                                                                                                                EAST,                                                                      NATIONS                                                                      DATED
                                                                                                                                                                    AMERICA                                                                                                                                                                                                                                                                                                                                                                           AFRICA
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       INDIA
                                                                                       --------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ----------------------------------  --------------------                      ------------------------------  --------------------
    For the three months ended December 31, 2023:                                                                                                                                                                   
    Revenues                                                        $             775,382          109,933           45,350          573,020          234,260          422,340          118,670               (1,187 )                         2,277,768  
    Directly related cost of transportation and other expenses(1)   $             422,015           68,096           27,237          461,029          175,214          276,161           84,391                 (539 )                         1,513,604  
    Salaries and other operating expenses(2)                        $             252,715           34,345           17,423           67,098           42,786          120,331           30,707                 (639 )                           564,766  
    Operating income (loss)                                         $             100,652            7,492              690           44,893           16,260           25,848            3,572                   (9 )                           199,398  
    Identifiable assets at period end                               $           2,595,576          174,509          109,380          449,529          237,470          721,259          256,199              (20,113 )                         4,523,809  
    Capital expenditures                                            $               8,016              315               82              424              227            1,142              508       --           10,714  
    Depreciation and amortization                                   $              15,401              475              281            1,106              460            2,876              787       --           21,386  
    Equity                                                          $           1,774,874           19,222           54,581          158,329          103,573          167,141          154,038              (40,345 )                         2,391,413  
    For the three months ended December 31, 2022:                                                                                                                                                                   
    Revenues                                                        $           1,118,262          127,442           65,821          969,266          367,679          599,947          194,342               (1,231 )                         3,441,528  
    Directly related cost of transportation and other expenses(1)   $             639,804           80,052           41,480          799,583          288,014          432,835          144,377                 (580 )                         2,425,565  
    Salaries and other operating expenses(2)                        $             (18,767 )                           101,864           29,523          178,038          117,024          239,627           39,588                 (640 )                           686,257  
    Operating income(3)                                             $             497,225          (54,474 )                            (5,182 )                            (8,355 )                           (37,359 )                           (72,515 )                            10,377                  (11 )                           329,706  
    Identifiable assets at period end                               $           3,070,697          209,516          123,003          675,022          316,777          938,660          283,872              (27,113 )                         5,590,434  
    Capital expenditures                                            $              11,262              282              232            1,098              391            4,525              536       --           18,326  
    Depreciation and amortization                                   $               9,433              454              280            1,069              472            2,527              687       --           14,922  
    
                                                         UNITED                          OTHER                               LATIN                               NORTH                               SOUTH                              EUROPE                              MIDDLE                                ELIMI-                               CONSOLI-             
                                                                                               STATES                                                                NORTH                                                                    AMERICA                                                                    ASIA                                                                      ASIA                                                                                                                                                EAST,                                                                      NATIONS                                                                      DATED
                                                                                                                                                                    AMERICA                                                                                                                                                                                                                                                                                                                                                                           AFRICA
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        AND
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       INDIA
                                                                                       --------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ------------------------------  --------------------                      ----------------------------------  --------------------                      ------------------------------  --------------------
    For the twelve months ended December 31, 2023:                                                                                                                                                                  
    Revenues                                                        $           3,311,327          436,331          197,344        2,180,808          865,261        1,808,624          505,194               (4,779 )                         9,300,110  
    Directly related cost of transportation and other expenses(1)   $           1,809,526          270,080          117,376        1,700,025          612,606        1,200,753          345,873               (2,239 )                         6,054,000  
    Salaries and other operating expenses(2)                        $           1,037,997          143,237           69,595          273,074          175,770          493,335          115,710               (2,541 )                         2,306,177  
    Operating income                                                $             463,804           23,014           10,373          207,709           76,885          114,536           43,611                    1          939,933  
    Identifiable assets at period end                               $           2,595,576          174,509          109,380          449,529          237,470          721,259          256,199              (20,113 )                         4,523,809  
    Capital expenditures                                            $              23,845            1,247              442            1,534              971            7,830            3,445       --           39,314  
    Depreciation and amortization                                   $              44,039            1,879            1,123            4,597            1,940           11,313            2,869       --           67,760  
    Equity                                                          $           1,774,874           19,222           54,581          158,329          103,573          167,141          154,038              (40,345 )                         2,391,413  
    For the twelve months ended December 31, 2022:                                                                                                                                                                  
    Revenues                                                        $           4,869,364          517,662          257,721        5,810,088        2,144,034        2,471,456        1,005,489               (4,530 )                        17,071,284  
    Directly related cost of transportation and other expenses(1)   $           2,943,232          310,206          160,273        4,853,902        1,751,187        1,768,102          791,887               (1,892 )                        12,576,897  
    Salaries and other operating expenses(2)                        $             944,050          188,192           72,177          504,805          238,658          573,598          151,069               (2,533 )                         2,670,016  
    Operating income                                                $             982,082           19,264           25,271          451,381          154,189          129,756           62,533                 (105 )                         1,824,371  
    Identifiable assets at period end                               $           3,070,697          209,516          123,003          675,022          316,777          938,660          283,872              (27,113 )                         5,590,434  
    Capital expenditures                                            $              56,411            2,954              937            2,976            1,543           17,868            4,135       --           86,824  
    Depreciation and amortization                                   $              35,461            1,892            1,123            4,682            1,966            9,640            2,574       --           57,338  
    Equity                                                          $           2,246,417           31,132           56,416          274,703          136,944          263,278          145,269              (40,624 )                         3,113,535  
    (1)Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.
    (2)Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion and Other as shown in the Condensed Consolidated Statements of Earnings.
    

    View source version on businesswire.com: https://www.businesswire.com/news/home/20240219324553/en/

    SOURCE: Expeditors International of Washington, Inc.

    <img alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&sty=20240219324553r1&sid=cmtx6&distro=nx&lang=en" style="width:0;height:0" />

    Jeffrey S. Musser
    President and Chief Executive Officer
    (206) 674-3433
    
    
    Bradley S. Powell
    Senior Vice President and Chief Financial Officer
    (206) 674-3412
    
    
    Geoffrey Buscher
    Director - Investor Relations
    (206) 892-4510
    

    COMTEX_448075138/1006/2024-02-20T08:30:06


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