Air Express: Earnings News Release For more information, please contact: Jay Jacobson, Investor Relations (203) 655-6978 AIR EXPRESS INTERNATIONAL (AEI) REPORTS 1999 THIRD QUARTER RESULTS DARIEN, CT., November 1, 1999 -- Air Express International Corporation (Nasdaq-MNS: AEIC) today announced results for its third quarter ended September 30, 1999. AEI reported third quarter diluted earnings per share of 38 cents, the same as last year. Third quarter net income was $12,787,000 versus 1998 third quarter net income of $13,010,000. For the nine months ended September 30, 1999, AEI reported net income of $39,120,000 and diluted earnings of $1.15 per share, which included a gain on the sale of marketable securities of $4,908,000, or 14 cents per diluted share. Excluding the above-mentioned gain, net income for the first nine months of 1999 was $34,212,000, or $1.01 per diluted share, compared to 1998 net income of $36,401,000, or $1.04 per diluted share. Gross revenues for the third quarter increased nine percent to $407,538,000 versus $372,961,000 for last year's third quarter. Revenues for all services reflect increased volumes over the third quarter of last year with ocean freight revenues posting a 25 percent increase to $65,471,000. Customs brokerage and other revenues increased 13 percent to $43,063,000. Airfreight revenues grew six percent to $299,004,000 on increased shipping volumes. This is the first time since the first quarter of 1998 that the Company reported positive airfreight revenue comparisons. For the third quarter of 1999, net revenues increased seven percent to $132,972,000 and operating profit increased three percent to $19,092,000. For the first nine months of 1999 gross revenues were $1,135,485,000, slightly higher than the first nine months of 1998 of $1,123,831,000. The major contributors to this improvement were a 16 percent increase in ocean freight revenues and a nine percent increase in customs brokerage and other revenues. Airfreight revenues for the first nine months were $843,427,000, a three percent decline, all of which occurred in the first half of 1999, compared to $865,186,000 for the same period of last year. Net revenues for the nine months ended September 30, 1999 increased four percent to $379,995,000. Operating profit for the first nine months was $49,741,000, a decline of three percent from 1998 due to lower operating results from European operations. In commenting on the results, Guenter Rohrmann, AEI' s President and Chief Executive Officer, stated, "Our results for the third quarter reflect the anticipated improvement in our airfreight business. Compared to last year's third quarter, improved airfreight revenues were posted by all regions. Our ocean freight and customs brokerage business continued to perform well, and we anticipate ongoing improvement in our business for the remainder of the year." Rohrmann continued, "The Company has for more than a year been reviewing strategic alternatives. In that connection the Company has had and continues to have discussions with third parties concerning possible transactions. To date none of these discussions has resulted in a definitive agreement. The Company does not intend to make any further comment on this situation unless a definitive agreement is entered into. No assurances can be given that any such definitive agreement will be reached." Headquartered in Darien, CT, AEI is a world leader in integrated logistics services, delivering multi-modal transportation, warehousing and distribution, customs brokerage and information management solutions across a network of 705 locations in more than 135 countries. -0- This press release contains forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to v ary materially from those anticipated; among these are the Company's dependence upon conditions in the air and ocean freight forwarding industry, the size and resources of many of the Company's competitors and the need for the Company to continue to effectively integrate acquired businesses and successfully deliver its primary services. Additional information with respect to these and other factors which could materially affect the Company is included in the Company's filings with the Securities and Exchange Commission, including its most recent proxy statement and 10-K. Air Express International Corporation CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) For the Quarter For the Nine Months Ended September 30, Ended September 30, 1999 1998 1999 1998 Gross Revenues: Airfreight $299,004 $282,171 $843,427 $865,186 Ocean freight 65,471 52,523 170,450 147,375 Customs brokerage and other 43,063 38,267 121,608 111,270 Total Gross Revenues $407,538 $372,961 $1,135,485 $1,123,831 ======== ======== ========== ========== Net Revenues: Airfreight $79,816 $77,548 $231,637 $230,116 Ocean freight 18,575 16,036 51,172 45,146 Customs brokerage and other 34,581 30,309 97,186 89,519 Total Net Revenues 132,972 123,893 379,995 364,781 Operating Expenses: Terminal 73,672 67,027 213,488 200,959 Selling, general and administrative 40,208 38,236 116,766 112,399 OPERATING PROFIT 19,092 18,630 49,741 51,423 Interest(expense)income, net (150) 566 (37) 1,556 Other, net 1,356 1,208 12,392 4,849 INCOME BEFORE TAXES 20,298 20,404 62,096 57,828 Provision for income taxes 7,511 7,394 22,976 21,427 NET INCOME $12,787 $13,010 $39,120 $36,401 ======= ======= ======= ======= EARNINGS PER SHARE: Basic $ .38 $ .38 $ 1.17 $ 1.05 ======= ======= ======= ======= Diluted $ .38 $ .38 $ 1.15 $ 1.04 ======= ======= ======= ======= Weighted average number of common shares: Basic 33,531 34,314 33,573 34,530 Diluted 34,082 34,633 33,971 35,006 Air Express International Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 30, Dec. 31, 1999 1998 (Unaudited) Assets Current assets: Cash and cash equivalents $ 46,806 $60,246 Accounts receivable, net 404,827 366,417 Prepaid expenses and other current assets 6,241 14,284 Total current assets 457,874 440,947 Property and equipment, net 91,963 81,178 Other assets 50,160 45,570 Goodwill 111,021 107,783 Total Assets $711,018 $675,478 ======== ======== Liabilities and Stockholders' Investment Current liabilities: Current portion of long-term debt $ 4,108 $ 4,337 Other current liabilities 319,877 307,642 Total current liabilities 323,985 311,979 Long-term debt 51,250 42,578 Other liabilities 8,746 10,050 Total liabilities 383,981 364,607 Stockholders' investment 327,037 310,871 Total Liabilities and Stockholders' Investment $711,018 $675,478 ======== ======== Ends.