Delaware (State or other jurisdiction of incorporation) |
62-1721435 (IRS Employer Identification No.) |
|
942 South Shady Grove Road, Memphis, Tennessee (Address of principal executive offices) |
38120 (ZIP Code) |
Delaware (State or other jurisdiction of incorporation) |
71-0427007 (IRS Employer Identification No.) |
|
3610 Hacks Cross Road, Memphis, Tennessee (Address of principal executive offices) |
38125 (ZIP Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. The following exhibit is being furnished as part of this Report. |
Exhibit | ||||
Number | Description | |||
99.1 | Press Release of FedEx Corporation dated December 15, 2011. |
2
FedEx Corporation |
||||
Date: December 15, 2011 | By: | /s/ HERBERT C. NAPPIER | ||
Herbert C. Nappier | ||||
Staff Vice President and Corporate Controller | ||||
Federal Express Corporation |
||||
Date: December 15, 2011 | By: | /s/ J. RICK BATEMAN | ||
J. Rick Bateman | ||||
Vice President and Worldwide Controller |
3
Exhibit | ||||
Number | Description | |||
99.1 | Press Release of FedEx Corporation dated December 15, 2011. |
E-1
| Revenue of $10.59 billion, up 10% from $9.63 billion the previous year | ||
| Operating income of $780 million, up 66% from $469 million last year | ||
| Operating margin of 7.4%, up from 4.9% the previous year | ||
| Net income of $497 million, up 76% from $283 million a year ago |
2
| Revenue of $6.58 billion, up 10% from last years $5.99 billion | ||
| Operating income of $342 million, up 30% from $264 million a year ago | ||
| Operating margin of 5.2%, up from 4.4% the previous year |
| Revenue of $2.34 billion, up 13% from last years $2.08 billion | ||
| Operating income of $398 million, up 34% from $296 million a year ago | ||
| Operating margin of 17.0%, up from 14.3% the previous year |
3
| Revenue of $1.33 billion, up 9% from last years $1.22 billion | ||
| Operating income of $40 million, compared with an operating loss of $91 million a year ago | ||
| Operating margin of 3.0%, up from (7.5%) the previous year |
4
5
Q2 Diluted | ||||
Earnings Per Share | ||||
Non-GAAP Measure |
$ | 1.16 | ||
FedEx Freight Combination Costs |
(0.17 | ) | ||
ATA Legal Reserve |
(0.10 | ) | ||
GAAP Measure |
$ | 0.89 | ||
6
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30 | November 30 | |||||||||||||||||||||||
2011 | 2010 | % | 2011 | 2010 | % | |||||||||||||||||||
Revenue: |
||||||||||||||||||||||||
FedEx Express segment |
$ | 6,583 | $ | 5,992 | 10 | % | $ | 13,175 | $ | 11,904 | 11 | % | ||||||||||||
FedEx Ground segment |
2,339 | 2,077 | 13 | % | 4,617 | 4,038 | 14 | % | ||||||||||||||||
FedEx Freight segment |
1,325 | 1,221 | 9 | % | 2,653 | 2,479 | 7 | % | ||||||||||||||||
FedEx Services segment |
427 | 434 | (2 | %) | 838 | 849 | (1 | %) | ||||||||||||||||
Other & eliminations |
(87 | ) | (92 | ) | NM | (175 | ) | (181 | ) | NM | ||||||||||||||
Total Revenue |
10,587 | 9,632 | 10 | % | 21,108 | 19,089 | 11 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
3,982 | 3,779 | 5 | % | 7,986 | 7,582 | 5 | % | ||||||||||||||||
Purchased transportation |
1,576 | 1,390 | 13 | % | 3,094 | 2,717 | 14 | % | ||||||||||||||||
Rentals and landing fees |
623 | 628 | (1 | %) | 1,243 | 1,229 | 1 | % | ||||||||||||||||
Depreciation and amortization |
518 | 502 | 3 | % | 1,027 | 981 | 5 | % | ||||||||||||||||
Fuel |
1,200 | 938 | 28 | % | 2,444 | 1,825 | 34 | % | ||||||||||||||||
Maintenance and repairs |
511 | 473 | 8 | % | 1,062 | 990 | 7 | % | ||||||||||||||||
Impairment and other charges |
| 67 | NM | | 67 | NM | ||||||||||||||||||
Other |
1,397 | 1,386 | 1 | % | 2,735 | 2,601 | 5 | % | ||||||||||||||||
Total Operating Expenses |
9,807 | 9,163 | 7 | % | 19,591 | 17,992 | 9 | % | ||||||||||||||||
Operating Income (Loss): |
||||||||||||||||||||||||
FedEx Express segment |
342 | 264 | 30 | % | 630 | 621 | 1 | % | ||||||||||||||||
FedEx Ground segment |
398 | 296 | 34 | % | 805 | 583 | 38 | % | ||||||||||||||||
FedEx Freight segment |
40 | (91 | ) | NM | 82 | (107 | ) | NM | ||||||||||||||||
Total Operating Income |
780 | 469 | 66 | % | 1,517 | 1,097 | 38 | % | ||||||||||||||||
Other Expense: |
||||||||||||||||||||||||
Interest, net |
(7 | ) | (23 | ) | (70 | %) | (18 | ) | (41 | ) | (56 | %) | ||||||||||||
Other, net |
4 | (9 | ) | NM | 2 | (16 | ) | NM | ||||||||||||||||
Total Other Expense |
(3 | ) | (32 | ) | (91 | %) | (16 | ) | (57 | ) | (72 | %) | ||||||||||||
Pretax Income |
777 | 437 | 78 | % | 1,501 | 1,040 | 44 | % | ||||||||||||||||
Provision for Income Taxes |
280 | 154 | 82 | % | 540 | 377 | 43 | % | ||||||||||||||||
Net Income |
$ | 497 | $ | 283 | 76 | % | $ | 961 | $ | 663 | 45 | % | ||||||||||||
Diluted Earnings Per Share |
$ | 1.57 | $ | 0.89 | 76 | % | $ | 3.02 | $ | 2.09 | 44 | % | ||||||||||||
Weighted Average Common and
Common Equivalent Shares |
316 | 316 | | 317 | 316 | 0 | % | |||||||||||||||||
Capital Expenditures |
$ | 1,107 | $ | 1,047 | 6 | % | $ | 2,217 | $ | 2,059 | 8 | % |
7
Nov. 30, 2011 | ||||||||
(Unaudited) | May 31, 2011 | |||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 1,896 | $ | 2,328 | ||||
Receivables, less allowances |
4,837 | 4,581 | ||||||
Spare parts, supplies and fuel, less allowances |
440 | 437 | ||||||
Deferred income taxes |
628 | 610 | ||||||
Prepaid expenses and other |
367 | 329 | ||||||
Total current assets |
8,168 | 8,285 | ||||||
Property and Equipment, at Cost |
35,399 | 33,686 | ||||||
Less accumulated depreciation and amortization |
18,690 | 18,143 | ||||||
Net property and equipment |
16,709 | 15,543 | ||||||
Other Long-Term Assets |
||||||||
Goodwill |
2,399 | 2,326 | ||||||
Other assets |
1,176 | 1,231 | ||||||
Total other long-term assets |
3,575 | 3,557 | ||||||
$ | 28,452 | $ | 27,385 | |||||
LIABILITIES AND STOCKHOLDERS INVESTMENT |
||||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
$ | 428 | $ | 18 | ||||
Accrued salaries and employee benefits |
1,390 | 1,268 | ||||||
Accounts payable |
1,646 | 1,702 | ||||||
Accrued expenses |
1,916 | 1,894 | ||||||
Total current liabilities |
5,380 | 4,882 | ||||||
Long-Term Debt, Less Current Portion |
1,251 | 1,667 | ||||||
Other Long-Term Liabilities |
||||||||
Deferred income taxes |
1,555 | 1,336 | ||||||
Pension, postretirement healthcare and other benefit obligations |
2,065 | 2,124 | ||||||
Self-insurance accruals |
977 | 977 | ||||||
Deferred lease obligations |
897 | 779 | ||||||
Deferred gains, principally related to aircraft transactions |
234 | 246 | ||||||
Other liabilities |
176 | 154 | ||||||
Total other long-term liabilities |
5,904 | 5,616 | ||||||
Commitments and Contingencies |
||||||||
Common Stockholders Investment |
||||||||
Common stock, $0.10 par value, 800 million shares authorized |
32 | 32 | ||||||
Additional paid-in capital |
2,557 | 2,484 | ||||||
Retained earnings |
16,103 | 15,266 | ||||||
Accumulated other comprehensive loss |
(2,581 | ) | (2,550 | ) | ||||
Treasury stock, at cost |
(194 | ) | (12 | ) | ||||
Total common stockholders investment |
15,917 | 15,220 | ||||||
$ | 28,452 | $ | 27,385 | |||||
8
Six Months Ended | ||||||||
November 30 | ||||||||
2011 | 2010 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 961 | $ | 663 | ||||
Noncash charges: |
||||||||
Depreciation and amortization |
1,027 | 981 | ||||||
Other, net |
422 | 262 | ||||||
Changes in operating assets and liabilities, net |
(242 | ) | 105 | |||||
Net cash provided by operating activities |
2,168 | 2,011 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(2,217 | ) | (2,059 | ) | ||||
Business acquisition, net of cash acquired |
(114 | ) | | |||||
Proceeds from asset dispositions and other |
15 | 7 | ||||||
Net cash used in investing activities |
(2,316 | ) | (2,052 | ) | ||||
Financing Activities: |
||||||||
Principal payments on debt |
(18 | ) | (12 | ) | ||||
Dividends paid |
(82 | ) | (76 | ) | ||||
Purchase of treasury stock |
(197 | ) | | |||||
Other, net |
37 | 29 | ||||||
Net cash used in financing activities |
(260 | ) | (59 | ) | ||||
Effect of exchange rate changes on cash |
(24 | ) | 25 | |||||
Net decrease in cash and cash equivalents |
(432 | ) | (75 | ) | ||||
Cash and cash equivalents at beginning of period |
2,328 | 1,952 | ||||||
Cash and cash equivalents at end of period |
$ | 1,896 | $ | 1,877 | ||||
9
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30 | November 30 | |||||||||||||||||||||||
2011 | 2010 | % | 2011 | 2010 | % | |||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||||||
Revenue |
$ | 6,583 | $ | 5,992 | 10 | % | $ | 13,175 | $ | 11,904 | 11 | % | ||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
2,377 | 2,253 | 6 | % | 4,790 | 4,511 | 6 | % | ||||||||||||||||
Purchased transportation |
448 | 388 | 15 | % | 897 | 757 | 18 | % | ||||||||||||||||
Rentals and landing fees |
421 | 427 | (1 | %) | 844 | 830 | 2 | % | ||||||||||||||||
Depreciation and amortization |
288 | 265 | 9 | % | 570 | 520 | 10 | % | ||||||||||||||||
Fuel |
1,039 | 802 | 30 | % | 2,116 | 1,556 | 36 | % | ||||||||||||||||
Maintenance and repairs |
354 | 320 | 11 | % | 734 | 672 | 9 | % | ||||||||||||||||
Intercompany charges |
548 | 512 | 7 | % | 1,096 | 1,025 | 7 | % | ||||||||||||||||
Other1 |
766 | 761 | 1 | % | 1,498 | 1,412 | 6 | % | ||||||||||||||||
Total Operating Expenses |
6,241 | 5,728 | 9 | % | 12,545 | 11,283 | 11 | % | ||||||||||||||||
Operating Income |
$ | 342 | $ | 264 | 30 | % | $ | 630 | $ | 621 | 1 | % | ||||||||||||
Operating Margin |
5.2 | % | 4.4 | % | 0.8 pts | 4.8 | % | 5.2 | % | (0.4 pts) | ||||||||||||||
OPERATING STATISTICS2 |
||||||||||||||||||||||||
Operating Weekdays |
63 | 63 | | 128 | 128 | | ||||||||||||||||||
AVG DAILY VOLUME / POUNDS |
||||||||||||||||||||||||
Average Daily Package Volume (000s): |
||||||||||||||||||||||||
U.S. Overnight Box |
1,168 | 1,196 | (2 | %) | 1,151 | 1,182 | (3 | %) | ||||||||||||||||
U.S. Overnight Envelope |
582 | 626 | (7 | %) | 589 | 625 | (6 | %) | ||||||||||||||||
U.S. Deferred |
838 | 865 | (3 | %) | 834 | 855 | (2 | %) | ||||||||||||||||
Total U.S. Domestic Package |
2,588 | 2,687 | (4 | %) | 2,574 | 2,662 | (3 | %) | ||||||||||||||||
International Priority |
569 | 585 | (3 | %) | 556 | 575 | (3 | %) | ||||||||||||||||
International Domestic3 |
529 | 354 | 49 | % | 486 | 339 | 43 | % | ||||||||||||||||
Total Average Daily Packages |
3,686 | 3,626 | 2 | % | 3,616 | 3,576 | 1 | % | ||||||||||||||||
Average Daily Freight Pounds (000s): |
||||||||||||||||||||||||
U.S. |
7,630 | 7,459 | 2 | % | 7,295 | 7,179 | 2 | % | ||||||||||||||||
International Priority |
3,451 | 3,320 | 4 | % | 3,289 | 3,171 | 4 | % | ||||||||||||||||
International Airfreight |
1,213 | 1,243 | (2 | %) | 1,188 | 1,242 | (4 | %) | ||||||||||||||||
Total Avg Daily Freight Pounds |
12,294 | 12,022 | 2 | % | 11,772 | 11,592 | 2 | % | ||||||||||||||||
YIELD |
||||||||||||||||||||||||
Revenue Per Package: |
||||||||||||||||||||||||
U.S. Overnight Box |
$ | 22.05 | $ | 19.75 | 12 | % | $ | 22.15 | $ | 19.70 | 12 | % | ||||||||||||
U.S. Overnight Envelope |
11.48 | 10.54 | 9 | % | 11.56 | 10.59 | 9 | % | ||||||||||||||||
U.S. Deferred |
13.84 | 12.24 | 13 | % | 13.70 | 12.12 | 13 | % | ||||||||||||||||
Total U.S. Domestic Package |
17.01 | 15.19 | 12 | % | 16.99 | 15.13 | 12 | % | ||||||||||||||||
International Priority |
60.56 | 54.54 | 11 | % | 61.42 | 54.12 | 13 | % | ||||||||||||||||
International Domestic3 |
6.51 | 7.39 | (12 | %) | 6.81 | 7.22 | (6 | %) | ||||||||||||||||
Composite Package Yield |
$ | 22.23 | $ | 20.77 | 7 | % | $ | 22.45 | $ | 20.65 | 9 | % | ||||||||||||
Revenue Per Freight Pound: |
||||||||||||||||||||||||
U.S. |
$ | 1.31 | $ | 1.13 | 16 | % | $ | 1.31 | $ | 1.15 | 14 | % | ||||||||||||
International Priority |
2.16 | 2.08 | 4 | % | 2.18 | 2.07 | 5 | % | ||||||||||||||||
International Airfreight |
0.97 | 0.88 | 10 | % | 0.99 | 0.87 | 14 | % | ||||||||||||||||
Composite Freight Yield |
$ | 1.51 | $ | 1.36 | 11 | % | $ | 1.52 | $ | 1.37 | 11 | % | ||||||||||||
1 | Previous year includes a $66 million reserve for a legal matter. | |
2 | Operating statistics include only the operations of FedEx Express. | |
3 | International Domestic includes the operations of a February 2011 business acquisition in India and a July 2011 business acquisition in Mexico. |
10
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30 | November 30 | |||||||||||||||||||||||
2011 | 2010 | % | 2011 | 2010 | % | |||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
FedEx Ground |
$ | 2,143 | $ | 1,916 | 12 | % | $ | 4,259 | $ | 3,755 | 13 | % | ||||||||||||
FedEx SmartPost |
196 | 161 | 22 | % | 358 | 283 | 27 | % | ||||||||||||||||
Total Revenues |
2,339 | 2,077 | 13 | % | 4,617 | 4,038 | 14 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
362 | 318 | 14 | % | 713 | 625 | 14 | % | ||||||||||||||||
Purchased transportation |
933 | 845 | 10 | % | 1,819 | 1,627 | 12 | % | ||||||||||||||||
Rentals |
72 | 67 | 7 | % | 138 | 129 | 7 | % | ||||||||||||||||
Depreciation and amortization |
94 | 83 | 13 | % | 187 | 165 | 13 | % | ||||||||||||||||
Fuel |
5 | 3 | 67 | % | 7 | 4 | 75 | % | ||||||||||||||||
Maintenance and repairs |
43 | 42 | 2 | % | 87 | 86 | 1 | % | ||||||||||||||||
Intercompany charges |
245 | 227 | 8 | % | 486 | 448 | 8 | % | ||||||||||||||||
Other |
187 | 196 | (5 | %) | 375 | 371 | 1 | % | ||||||||||||||||
Total Operating Expenses |
1,941 | 1,781 | 9 | % | 3,812 | 3,455 | 10 | % | ||||||||||||||||
Operating Income |
$ | 398 | $ | 296 | 34 | % | $ | 805 | $ | 583 | 38 | % | ||||||||||||
Operating Margin |
17.0 | % | 14.3 | % | 2.7 pts | 17.4 | % | 14.4 | % | 3.0 pts | ||||||||||||||
OPERATING STATISTICS |
||||||||||||||||||||||||
Operating Weekdays |
63 | 63 | | 128 | 128 | | ||||||||||||||||||
Average Daily Package Volume (000s) |
||||||||||||||||||||||||
FedEx Ground |
3,979 | 3,843 | 4 | % | 3,849 | 3,686 | 4 | % | ||||||||||||||||
FedEx SmartPost |
1,737 | 1,484 | 17 | % | 1,573 | 1,287 | 22 | % | ||||||||||||||||
Yield (Revenue Per Package) |
||||||||||||||||||||||||
FedEx Ground |
$ | 8.53 | $ | 7.89 | 8 | % | $ | 8.62 | $ | 7.94 | 9 | % | ||||||||||||
FedEx SmartPost |
$ | 1.79 | $ | 1.72 | 4 | % | $ | 1.78 | $ | 1.70 | 5 | % |
11
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
November 30 | November 30 | |||||||||||||||||||||||
2011 | 2010 | % | 2011 | 2010 | % | |||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||||||
Revenue |
$ | 1,325 | $ | 1,221 | 9 | % | $ | 2,653 | $ | 2,479 | 7 | % | ||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
577 | 584 | (1 | %) | 1,155 | 1,184 | (2 | %) | ||||||||||||||||
Purchased transportation |
221 | 185 | 19 | % | 428 | 389 | 10 | % | ||||||||||||||||
Rentals |
29 | 31 | (6 | %) | 57 | 65 | (12 | %) | ||||||||||||||||
Depreciation and amortization |
44 | 62 | (29 | %) | 88 | 110 | (20 | %) | ||||||||||||||||
Fuel |
156 | 133 | 17 | % | 321 | 264 | 22 | % | ||||||||||||||||
Maintenance and repairs |
48 | 45 | 7 | % | 98 | 91 | 8 | % | ||||||||||||||||
Intercompany charges |
108 | 108 | | 217 | 217 | | ||||||||||||||||||
Impairment and other charges1 |
| 67 | NM | | 67 | NM | ||||||||||||||||||
Other |
102 | 97 | 5 | % | 207 | 199 | 4 | % | ||||||||||||||||
Total Operating Expenses |
1,285 | 1,312 | (2 | %) | 2,571 | 2,586 | (1 | %) | ||||||||||||||||
Operating Income (Loss) |
$ | 40 | $ | (91 | ) | NM | $ | 82 | $ | (107 | ) | NM | ||||||||||||
Operating Margin |
3.0 | % | (7.5 | %) | 10.5 pts | 3.1 | % | (4.3 | %) | 7.4 pts | ||||||||||||||
OPERATING STATISTICS |
||||||||||||||||||||||||
LTL Operating Weekdays |
62 | 62 | | 127 | 127 | | ||||||||||||||||||
LTL Shipments Per Day (000s) |
86.8 | 89.4 | (3 | %) | 85.8 | 90.6 | (5 | %) | ||||||||||||||||
Weight Per LTL Shipment (lbs) |
1,147 | 1,115 | 3 | % | 1,152 | 1,125 | 2 | % | ||||||||||||||||
LTL Revenue/CWT |
$ | 19.79 | $ | 18.27 | 8 | % | $ | 19.54 | $ | 17.77 | 10 | % |
1 | Previous year includes charges associated with the combination of FedEx Freight and FedEx National LTL operations. |
12