UTi Worldwide Announces Expected Fiscal 2007 First Quarter Total Net Revenues and EPS

Company Reaffirms Impact of Stock Option Expensing and Quantifies Anticipated Impact of Long-Term Initiatives


RANCHO DOMINGUEZ, Calif., April 27, 2006 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced that it expects total net revenue growth in the range of 22% to 25% in the first quarter of fiscal 2007 ending April 30, 2006, when compared to the company's total net revenue for the first quarter of fiscal 2006. This estimate is based on the company's preliminary financial data for the first two months of the fiscal 2007 first quarter and for the first three weeks of April. Excluding the anticipated contribution of Market Industries, Ltd., which the company acquired on March 7, 2006, the expected rate of total net revenue growth in the first quarter of fiscal 2007 is anticipated to be generally consistent with the rate of total net revenue growth reported by the company in its immediately preceding fiscal 2006 fourth quarter when those results are compared to the prior fiscal year comparable period.

Based on the same preliminary financial data, the corresponding anticipated earnings per diluted share for the fiscal 2007 first quarter are expected to be consistent with management's expectations of approximately $0.15 to $0.17 per diluted share, which reflects stock option expense expected to be approximately $0.04 for the fiscal 2007 first quarter for previously issued stock options which are being expensed in fiscal 2007 following the company's adoption of Statement of Financial Accounting Standards No. 123R (SFAS 123R) beginning on February 1, 2006. The company's fiscal 2006 first quarter diluted earnings per share was $0.18, which did not include stock option expense. Without giving effect to the adoption of SFAS 123R in the first quarter of fiscal 2007, UTi estimates that its diluted earnings per share would have been between $0.19 and $0.21 per diluted share.

While UTi does not plan to issue guidance of this type on a regular basis, management believes that it is important to reiterate the impact of its adoption of SFAS 123R as well as the previously announced long-term, strategic initiatives the company has undertaken. These previously announced company-wide initiatives are aimed at strengthening UTi's long-term ability to deliver global integrated logistics solutions to its clients worldwide and include, among others:



  --  The acquisition of Market Industries, Ltd., which expanded 
      the company's freight management capabilities in the U.S.
      UTi's fiscal 2007 first quarter preliminary diluted earnings
      per share estimates reflect an additional interest expense 
      equivalent to approximately $0.02 per diluted share, related 
      to the funding of the acquisition.  The company expects that 
      the costs related to this funding should be offset by Market 
      Industries' anticipated contribution to UTi's fiscal 2007
      first quarter results; 

  --  A major IT initiative designed to migrate the company's 
      operating freight forwarding systems into a single, global 
      operating platform.  The estimated impact from this initiative
      in the first quarter of fiscal 2007 is expected to be equivalent
      to approximately $0.01 per diluted share, which estimate is 
      nearly double the fiscal 2006 fourth quarter costs related to
      this initiative; and

  --  Ongoing enhancement of the company's global sales organization
      by capitalizing on the current industry consolidation through 
      the hiring of seasoned industry managers.  UTi expects that 
      the net impact of this initiative should be equivalent to an
      expense of approximately $0.01 per diluted share in the first
      quarter of fiscal 2007 as revenues from this initiative are 
      only expected to materialize in the second half of fiscal 2007. 

"While we recognize that the strategic initiatives we have undertaken will reduce our near-term financial growth rates, we are confident that the important investments we are making today will help ensure UTi's long-term success," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "We are already seeing some early successes as the result of our actions, including new business wins. At the same time, we realize that implementation and value creation for our clients take time, and as such, we do not expect to see revenue contribution from these new business wins until sometime in the second half of fiscal 2007."

The company's preliminary estimated total net revenue, anticipated diluted earnings per share, and other estimates are not final, are based on management's current assumptions and expectations, and are subject to further review. Accordingly, actual total net revenues, diluted earnings per share and the other items discussed in this press release for the three months ended April 30, 2006 could differ from UTi's current estimates and expectations and any such difference could be significant. The company has not yet finished the quarter and must still perform its quarterly internal review procedures for the three months ended April 30, 2006 prior to UTi's independent public accounting firm's completion of its interim review. You should consider the information in this press release in conjunction with the audited consolidated financial statements for the three-year period ending January 31, 2006 included in the company's Form 10-K for the year ended January 31, 2006, as well as "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Form 10-K.

About UTi Worldwide

UTi Worldwide Inc. is an international, non-asset-based global integrated logistics company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including customers operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its customers' global supply chains.

Safe Harbor Statement

Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are identified by the use of such terms and phrases as "intends," "intend," "intended," "goal," "estimate," "estimates," "expects," "expect," "expected," "project," "projected," "projections," "plans," "anticipates," "anticipated," "should," "designed to," "foreseeable future," "believe," "believes" and "scheduled" and similar expressions which generally identify forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and the company's actual results or outcomes may differ materially from those expected or anticipated. UTi intends that all such statements be subject to the "safe-harbor" provisions contained therein. Such statements may include, but are not limited to, the company's preliminary estimated total net revenue growth rate, its anticipated earnings per diluted share, its expected costs associated with stock options, its anticipated costs and expenses for its major IT initiative and enhancement of its global sales organization, the anticipated costs associated with the funding of its acquisition of Market Industries and the expected contributions of Market Industries, the anticipated revenue contributions from business wins in the second half of fiscal 2007 the impact of its strategic initiatives, and other statements contained in this press release. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including a challenging operating environment; increased competition; the effects of increasing fuel prices, integration risks associated with acquisitions; the effects of changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and Europe; risks of international operations; the success and effects of new strategies, disruptions caused by epidemics, conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission, including under "Risk Factors" in the Form 10-K for the year ended January 31, 2006. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's expectations, objectives or plans will be achieved. Accordingly, investors should not place undue reliance on the company's forward-looking statements. The company's historical results are not necessarily indicative of its future prospects. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.



            

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