September 07, 2006 at 03:01 AM EDT
UTi Worldwide Reports Fiscal 2007 Second Quarter Financial Results
- Q2 Net Revenue Grows Organically by 17 Percent -

RANCHO DOMINGUEZ, Calif., Sept. 7, 2006 (PRIMEZONE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today reported financial results for the three- and six-month periods ended July 31, 2006.

For the second quarter of fiscal 2007, gross revenues increased 30 percent to $890.1 million from $686.2 million in the prior-year second quarter. Net revenues increased 28 percent to $305.4 million from $238.3 in the prior-year second quarter. Revenue growth for the fiscal 2007 second quarter reflects continued organic growth across all geographic regions and as well as contributions from Market Industries, Ltd., which the company acquired in March 2006. After adjusting for the impact of currency fluctuations on the comparison of UTi's results and after excluding contributions from the acquisitions made since June 1, 2005, the company estimates that its gross and net revenues from organic operations increased 14 percent and 17 percent, respectively, in the fiscal 2007 second quarter, when compared with the corresponding period a year ago.

"The integration of Market Industries is progressing well, and we continue to see cross-selling opportunities, especially with the addition of truck brokerage solutions to our capabilities," said Roger I. MacFarlane, chief executive officer of UTi Worldwide. "We are also beginning to see a positive impact in our business as the result of our recent investments in sales personnel. Although the majority of the anticipated benefits from this initiative are expected to be realized on a longer-term basis as previously announced, we are encouraged by favorable early returns."

Operating income in the second quarter of fiscal 2007 totaled $39.7 million, compared with $33.6 million in the second quarter of fiscal 2006. Operating income included $2.3 million share-based compensation expense in the fiscal 2007 second quarter compared to $0.7 million in the second quarter of fiscal 2006. Operating income as a percentage of net revenues equaled 13.0 percent in the fiscal 2007 second quarter, compared with 14.1 percent in the prior-year second quarter and 10.0 percent in the immediately preceding fiscal 2007 first quarter.

Net income for the fiscal 2007 second quarter totaled $23.7 million, or $0.24 per diluted share, based on 99,817,022 weighted-average shares outstanding. This compares with net income in the prior-year second quarter of $22.3 million, or $0.23 per diluted share, based on 97,773,738 weighted-average shares outstanding, as adjusted for a three-for-one split of the company's ordinary shares effected on March 27, 2006.

In July 2006, the company issued $200.0 million of senior unsecured guaranteed notes and entered into a new senior credit facility that allows for a total of $250.0 million of available borrowings, guarantees and letters of credit. The new credit facility replaced substantially all of the company's previous existing working capital credit facilities. A majority of the net proceeds from the sale of the notes was used to repay the company's $150.0 million short-term credit facility which UTi obtained in connection with its March 2006 acquisition of Market Industries.

"Our team has done an outstanding job of executing our NextLeap strategies that deliver high value to our clients' requirements for global integrated logistics, while at the same time delivering improved operating performance for our shareholders," MacFarlane said. "We remain focused on delivering strong financial performance and at the same time, we believe our many long-term investments underpin our ability to serve the end-to-end supply chain needs of our clients and solidify UTi's competitive position as we prepare for our 'next, NextLeap' journey."

For the six-month period ended July 31, 2006, gross revenues increased 26 percent to $1.7 billion from $1.3 billion for the same period a year ago. Net revenues rose 26 percent to $577.0 million from $459.5 million in the first half of fiscal 2006. Operating income for the fiscal year-to-date period ended July 31, 2006 totaled $66.9 million, an increase of 10 percent from $60.6 million in the comparable prior-year period. Operating income included $5.1 million share-based compensation expense in the first half of fiscal 2007 compared to $2.1 million in the first half of fiscal 2006. Operating income as a percentage of net revenues was 11.6 percent in the six-month period ended July 31, 2006, compared with 13.2 percent in the same period ended July 31, 2005. Net income for the first half of fiscal 2007 was $40.3 million, or $0.41 per diluted share, compared with $40.1 million, or $0.41 per diluted share, in the corresponding period a year ago.

Investor Conference Call

UTi management will host an investor conference call today, September 7, 2006, at 8:00 a.m. PDT (11:00 a.m. EDT) to review the company's financials and operations for the fiscal 2007 second quarter. The call will be open to all interested investors through a live, listen-only audio Internet broadcast at www.go2uti.com and www.earnings.com. For those who are not available to listen to the live broadcast, the call will be archived for one year at both Web sites. A telephonic playback of the conference call also will be available from approximately 10:00 a.m. PDT, today, through September 14, by calling 888-286-8010 (domestic) or 617-801-6888 (international) and using Replay Passcode 79145696.

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 clients 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 clients' 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 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such statements may include, but are not limited to, the company's discussion of its NextLeap goals and journey, UTi's growth strategies and plans which it is developing for the 'next NextLeap,' the company's anticipated realization of revenue gains from its investments in sales personnel, comments about the company's investments which it believes underpins its ability to serve the end-to-end supply chain needs of its clients, comments about the company's focus on financial performance in the future and any other statements which are not historical facts. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including increased competition; integration risks associated with acquisitions, including the company's recent acquisition of Market Industries, Ltd. and the possibility that certain expected acquisition related tax consequences will not be realized; 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 conditions such as inventory build-up, economic slowdowns, and declines in world trade or consumer confidence; the impact of higher fuel costs; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; the success and effects of new strategies; disruptions caused by conflicts, wars and terrorism; and the other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. 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 objectives or plans will be achieved. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



 UTi Worldwide Inc.
 Condensed Consolidated Income Statements
 (in thousands, except share and per share amounts)

                       Three months ended         Six months ended
                             July 31,                 July 31,
                    -----------------------   -----------------------
                       2006         2005         2006         2005
                    ----------   ----------   ----------   ----------
                                        (Unaudited)

 Gross revenues:
  Airfreight
   forwarding       $  341,532   $  300,786   $  649,102   $  579,066
  Ocean freight
   forwarding          234,216      201,988      440,749      388,623
  Customs
   brokerage            22,019       20,136       41,824       40,444
  Contract
   logistics           125,367      110,172      243,986      204,758
  Distribution
   and other           166,939       53,150      288,112      103,534
                    ----------   ----------   ----------   ----------
   Total gross
    revenues        $  890,073   $  686,232   $1,663,773   $1,316,425
                    ==========   ==========   ==========   ==========

 Net revenues:
  Airfreight
   forwarding       $   81,485   $   71,946   $  156,374   $  142,475
  Ocean freight
   forwarding           36,281       29,288       67,810       54,872
  Customs
   brokerage            21,636       19,439       40,795       39,002
  Contract
   logistics           108,678       92,842      208,376      171,622
  Distribution
   and other            57,331       24,750      103,684       51,492
                    ----------   ----------   ----------   ----------
   Total net
    revenues           305,411      238,265      577,039      459,463

 Staff costs           161,202      125,526      311,966      241,297
 Depreciation
  and amortization       7,533        5,619       14,969       11,323
 Amortization of
  intangible
  assets                 2,192          982        4,043        2,124
 Other operating
  expenses              94,744       72,490      179,154      144,144
                    ----------   ----------   ----------   ----------
 Operating
  income                39,740       33,648       66,907       60,575
 Interest
  expense, net          (3,403)        (695)      (6,450)      (1,418)
 Losses on
  foreign
  exchange                (253)        (536)         (68)        (462)
                    ----------   ----------   ----------   ----------
 Pretax income          36,084       32,417       60,389       58,695
 Provision for
  income taxes          10,847        9,355       17,678       16,931
                    ----------   ----------   ----------   ----------

 Income before
  minority
  interests             25,237       23,062       42,711       41,764
 Minority
  interests             (1,541)        (719)      (2,423)      (1,652)
                    ----------   ----------   ----------   ----------
 Net income         $   23,696   $   22,343   $   40,288   $   40,112
                    ==========   ==========   ==========   ==========

 Basic earnings
  per share(a)      $     0.25   $      0.24   $    0.42   $     0.43
 Diluted earnings
  per share(a)      $     0.24   $      0.23   $    0.41   $     0.41

 Number of weighted-average
 shares outstanding used
 for per share calculations:

 Basic
  shares(a)      96,300,764     93,764,889    95,897,315   93,398,289
 Diluted
  shares(a)      99,817,022     97,773,738    99,397,847   97,683,183

  (a) All periods presented have been adjusted for a three-for-one
      split of UTi's ordinary shares effected on March 27, 2006.


 UTi Worldwide Inc.
 Condensed Consolidated Balance Sheets
 (in thousands)

                                          July 31,         January 31,
                                            2006              2006
                                        -----------       -----------
                                         (Unaudited)

 ASSETS

 Cash and cash equivalents              $   195,528       $   246,510
 Trade receivables, net                     635,162           497,990
 Deferred income tax assets                   8,680             8,517
 Other current assets                        55,324            39,172
                                        -----------       -----------
      Total current assets                  894,694           792,189

 Property, plant and equipment,
  net                                       110,090            80,443
 Goodwill and other intangible
  assets, net                               568,149           369,371
 Investments                                  2,065             1,050
 Deferred income tax assets                   7,705             4,027
 Other non-current assets                    19,839            11,684
                                        -----------       -----------

      Total assets                      $ 1,602,542       $ 1,258,764
                                        ===========       ===========

 LIABILITIES & SHAREHOLDERS' EQUITY

 Bank lines of credit                   $    71,864       $    95,177
 Short-term borrowings                        2,962             4,441
 Current portion of capital lease
  obligations                                 8,186             6,189
 Trade payables and other accrued
  liabilities                               530,901           465,100
 Income taxes payable                        20,057            22,904
 Deferred income tax liabilities              2,971             1,694
                                        -----------       -----------
     Total current liabilities              636,941           595,505

 Long-term borrowings                       212,146            13,775
 Capital lease obligations                   18,219            16,068
 Deferred income tax liabilities             27,605            11,593
 Retirement fund obligations                  5,901             5,124
 Other long-term liabilities                 10,953             4,960

 Minority interests                          24,551            25,219

 Commitments and contingencies

 Shareholders' equity:
   Common stock                             410,273           359,835
   Retained earnings                        288,065           253,573
   Accumulated other comprehensive
    loss                                    (32,112)          (26,888)
                                        -----------       -----------
     Total shareholders' equity             666,226           586,520
                                        -----------       -----------

     Total liabilities and
      shareholders' equity              $ 1,602,542       $ 1,258,764
                                        ===========       ===========


 UTi Worldwide Inc.
 Consolidated Statements of Cash Flows
 (in thousands)

                                                Six months ended
                                                    July 31,
                                           -------------------------
                                              2006            2005
                                           ---------       ---------
                                                    (Unaudited)

 OPERATING ACTIVITIES:
 Net income                                $  40,288       $  40,112
 Adjustments to reconcile net income
  to net cash used in operating
  activities:
   Share-based compensation costs              5,070           2,073
   Depreciation and amortization              14,969          11,323
   Amortization of intangible assets           4,043           2,124
   Deferred income taxes                          30          (3,419)
   Tax benefit relating to exercise
    of stock options                             800           2,333
   Excess tax benefits from share-based
    compensation                                (717)             --
   Gain on disposal of property, plant
    and equipment                               (205)            (95)
   Other                                       2,424           1,617
   Changes in operating assets and
    liabilities:
     Increase in trade receivables          (105,237)        (55,532)
     Increase in other current assets         (5,517)         (3,362)
     Increase in trade payables               25,692          19,644
     Increase in other current
      liabilities                             25,875          19,008
                                           ---------       ---------
      Net cash provided by operating
       activities                              7,515          35,826

 INVESTING ACTIVITIES:
 Purchases of property, plant and
  equipment                                  (10,881)         (9,020)
 Proceeds from disposal of property,
  plant and equipment                          1,151             316
 Increase in other non-current assets         (5,948)           (768)
 Acquisitions and contingent earn-out
  payments                                  (199,284)        (36,006)
 Other                                        (1,165)           (754)
                                           ---------       ---------
   Net cash used in investing
    activities                              (216,127)        (46,232)

 FINANCING ACTIVITIES:
 Decrease in bank lines of credit            (26,661)         (4,787)
 Decrease in short-term borrowings            (1,148)           (417)
 Increase in long-term borrowings                586          13,715
 Repayment of long-term borrowings            (1,887)           (310)
 Net proceeds from issuance of senior
  notes                                      198,739              --
 Repayments of capital lease
  obligations                                 (4,260)         (2,324)
 Decrease in minority interests                   --            (474)
 Net proceeds from issuance of
  ordinary shares                              7,548           6,151
 Excess tax benefits from share-based
  compensation                                   717              --
 Dividends paid                               (5,775)         (4,672)
                                           ---------       ---------
   Net cash provided by financing
    activities                               167,859           6,882

 Effect of foreign exchange rate
  changes                                    (10,229)         (9,838)
                                           ---------       ---------
 Net decrease in cash and cash
  equivalents                                (50,982)        (13,362)
 Cash and cash equivalents at
  beginning of period                        246,510         178,132
                                           ---------       ---------
 Cash and cash equivalents at end
  of period                                $ 195,528       $ 164,770
                                           =========       =========


  UTi Worldwide Inc.
  Segment Reporting
  (in thousands)

                        Three months ended July 31, 2006
             ---------------------------------------------------------
                                    (Unaudited)
                                   Asia
              Europe   Americas   Pacific   Africa  Corporate  Total
             --------  --------  --------  --------  -------  --------
 Gross revenue
  from external
  customers  $215,863  $299,979  $229,949  $144,282  $    --  $890,073
             ========  ========  ========  ========  =======  ========
 Net revenue $ 63,942  $133,612  $ 38,703  $ 69,154  $    --  $305,411
 Staff costs   35,246    76,930    16,171    29,804    3,051   161,202
 Depreciation
  and
  amortization  1,611     2,722       858     1,831      511     7,533
 Amortization
  of
  intangible
  assets           --     1,915       114       163       --     2,192
 Other
  operating
  expenses     17,828    39,034     9,631    24,198    4,053    94,744
             --------  --------  --------  --------  -------  --------
 Operating
  income/
  (loss)     $  9,257  $ 13,011  $ 11,929  $ 13,158  $(7,615)   39,740
             ========  ========  ========  ========  =======
 Interest
  expense, net                                                 (3,403)
 Losses on
  foreign
  exchange                                                       (253)
                                                              --------
 Pretax income                                                  36,084
 Provision
  for income
  taxes                                                         10,847
                                                              --------
 Income before
  minority
  interests                                                   $ 25,237
                                                              ========

                        Three months ended July 31, 2005
             ---------------------------------------------------------
                                     (Unaudited)
                                   Asia
              Europe   Americas   Pacific   Africa  Corporate  Total
             --------  --------  --------  --------  -------  --------
 Gross revenue
  from external
  customers  $179,212  $171,172  $207,406  $128,442  $    --  $686,232
             ========  ========  ========  ========  =======  ========
 Net revenue $ 52,280  $ 92,056  $ 34,076  $ 59,853  $    --  $238,265
 Staff costs   27,655    55,472    14,138    25,487    2,774   125,526
 Depreciation
  and
  amortization  1,411     1,126       772     1,867      443     5,619
 Amortization
  of intangible
  assets           --       735        78       169       --       982
 Other
  operating
  expenses     14,308    25,712     8,152    21,685    2,633    72,490
             --------  --------  --------  --------  -------  --------
 Operating
  income/
  (loss)     $  8,906  $  9,011  $ 10,936  $ 10,645  $(5,850)   33,648
             ========  ========  ========  ========  =======
 Interest
  expense, net                                                   (695)
 Losses on
  foreign
  exchange                                                       (536)
                                                              --------
 Pretax income                                                  32,417
 Provision for
  income taxes                                                   9,355
                                                              --------
 Income before
  minority
  interests                                                   $ 23,062
                                                              ========


 UTi Worldwide Inc.
 Segment Reporting
 (in thousands)

                         Six months ended July 31, 2006
             ---------------------------------------------------------
                                    (Unaudited)
                                   Asia
              Europe   Americas   Pacific   Africa  Corporate  Total
             --------  --------  --------  --------  -------  --------
 Gross revenue
  from external
  customers  $399,956  $540,794  $437,629  $285,394  $   -- $1,663,773
             ========  ========  ========  ========  =======  ========
 Net revenue $118,271  $249,108  $ 74,340  $135,320  $   --   $577,039
 Staff costs   67,030   147,376    31,393    59,592    6,575   311,966
 Depreciation
  and
  amortization  3,019     5,327     1,693     3,915    1,015    14,969
 Amortization
  of intangible
  assets           --     3,468       229       346       --     4,043
 Other
  operating
  expenses     33,935    70,748    18,662    48,759    7,050   179,154
             --------  --------  --------  --------  -------  --------
 Operating
  income/
  (loss)     $ 14,287  $ 22,189  $ 22,363  $ 22,708 $(14,640)   66,907
             ========  ========  ========  ========  =======
 Interest
  expense, net                                                 (6,450)
 Losses on
  foreign
  exchange                                                        (68)
                                                              --------
 Pretax income                                                  60,389
 Provision
  for income
  taxes                                                         17,678
                                                              --------
 Income before
  minority
  interests                                                   $ 42,711
                                                              ========


                          Six months ended July 31, 2005
             ---------------------------------------------------------
                                     (Unaudited)
                                   Asia
              Europe   Americas   Pacific   Africa  Corporate  Total
             --------  --------  --------  --------  -------  --------

 Gross revenue
  from external
  customers  $341,195  $327,950  $389,120  $258,160  $   -- $1,316,425
             ========  ========  ========  ========  =======  ========
 Net revenue $101,908  $172,480  $ 62,803  $122,272  $   --   $459,463
 Staff costs   54,816   102,003    26,599    52,854    5,025   241,297
 Depreciation
  and
  amortization  2,826     2,242     1,465     3,852      938    11,323
 Amortization
  of intangible
  assets           --     1,691        78       355       --     2,124
 Other
  operating
  expenses     27,770    50,411    15,413    45,736    4,814   144,144
             --------  --------  --------  --------  -------  --------
 Operating
  income/
  (loss)     $ 16,496  $ 16,133  $ 19,248  $ 19,475 $(10,777)   60,575
             ========  ========  ========  ========  =======
 Interest
  expense, net                                                 (1,418)
 Losses on
  foreign
  exchange                                                       (462)
                                                              --------
 Pretax income                                                  58,695
 Provision for
  income
  taxes                                                         16,931
                                                              --------
 Income before
  minority
  interests                                                   $ 41,764
                                                              ========


 UTi Worldwide Inc.
 Supplemental Financial Information
 (in thousands)

                          Three months ended      Six months ended
                              July 31,                July 31,
                          -------------------   ----------------------
                            2006      2005        2006        2005
                          ---------  --------   ----------  ----------
                                         (Unaudited)
 Forwarding, Customs
  Brokerage & Other:

 Gross revenue from
  external customers       $629,667  $549,616   $1,191,567  $1,057,210
                          =========  ========   ==========  ==========
 Net revenue               $149,260  $128,049   $  283,037  $  252,909
 Staff costs                 77,723    65,746      151,179     131,315
 Depreciation and
  amortization                3,378     3,238        6,555       6,498
 Other operating expenses    37,393    33,386       74,174      69,301
                          ---------  --------   ----------  ----------
 Operating income          $ 30,766  $ 25,679   $   51,129  $   45,795
                          =========  ========   ==========  ==========

 Contract Logistics,
  Distribution & Other:

 Gross revenue from
  external customers       $260,406  $136,616   $  472,206  $  259,215
                          =========  ========   ==========  ==========
 Net revenue               $156,151  $110,216   $  294,002  $  206,554
 Staff costs                 80,428    57,006      154,212     104,957
 Depreciation and
  amortization                3,644     1,938        7,399       3,887
 Amortization of intangible
  assets                      2,192       982        4,043       2,124
 Other operating expenses    53,298    36,471       97,930      70,029
                          ---------  --------   ----------  ----------
 Operating income          $ 16,589  $ 13,819   $   30,418  $   25,557
                          =========  ========   ==========  ==========
CONTACT:  UTi Worldwide Inc.
          Lawrence R. Samuels, Chief Financial Officer
          (310) 604-3311

          PondelWilkinson Inc.
          Angie Yang/Laurie Berman
          (310) 279-5980
          investor@pondel.com
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