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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>WASHINGTON, D.C. 20549</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>CURRENT REPORT</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Pursuant to Section 13 or 15(d ) of the Securities Exchange Act of 1934</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Date of Report (Date of earliest event reported): <B>August 6, 2004</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>EGL, Inc.</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Exact name of registrant as specified in its charter)</P>
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<TABLE cellspacing=0><TR><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Texas</B></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>000-27288</B></P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>76-0094895</B></P>
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<TR><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(State or other jurisdiction</P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Commission</P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(IRS Employer</P>
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<TR><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>of incorporation)</P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>File Number)</P>
</TD><TD valign=top width=212.8><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Identification No.)</P>
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<TABLE cellspacing=0><TR><TD valign=top width=367.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>15350 Vickery Drive, Houston, Texas</B></P>
</TD><TD valign=top width=271.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>77032</B></P>
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<TR><TD valign=top width=367.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=271.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Zip Code)</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Registrant's telephone number, including area code: &nbsp;<B>(281) 618-3100</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>1</P>
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<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:72pt; text-indent:-72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Item 7.</B></P>
<P style="margin:0pt; padding-left:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Financial Statements, Pro Forma Financial Information and Exhibits</B></P>
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<P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>(c) Exhibits</P>
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<P style="margin:0pt; text-indent:90pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The following exhibit is furnished pursuant to Item 12:</P>
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<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:144pt; text-indent:-36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>99.1 </P>
<P style="margin:0pt; padding-left:144pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Press Release, dated August 6, 2004, reporting financial results for the period ended June 30, 2004.</P>
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<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:72pt; text-indent:-72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Item 12.</B></P>
<P style="margin:0pt; padding-left:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Results of Operation and Financial Condition</B></P>
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<P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The press release attached hereto as Exhibit 99.1 reports certain financial results for the second quarter ended June 30, 2004. &nbsp;</P>
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<P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>In addition to financial results determined in accordance with generally accepted accounting principles (GAAP) that are included in the attached press release, the press release also includes the following non-GAAP financial measures (as defined under the SEC&#146;s Regulation G):</P>
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<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:72pt; text-indent:-36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><I>-</I></B></P>
<P style="margin:0pt; padding-left:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><I>Operating Income Excluding Facilities Charge:</I></B> Operating income excluding a facilities charge means operating revenues from continuing operations less property related expenses as a result of elimination of facilities&#146; expenses. &nbsp;Management believes that the exclusion of the loss recognized on such facilities charge enables it to evaluate more effectively the Company&#146;s operations period over period and to identify operating trends that could otherwise be masked by the excluded item.</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Operating Income Analysis:</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(for the Three Months Ended June 30, 2004)</P>
<TABLE cellspacing=0><TR><TD valign=top width=240.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162.533><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center>(millions)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center>% of Net Revenues</P>
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<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Operating income</P>
</TD><TD valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:46.4pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">13.3</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">6.4%</P>
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<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Idle facilities charge</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:51.15pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">5.8</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">2.7%</P>
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<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Operating income excluding facilities charge</P>
</TD><TD valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:46.4pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">19.1</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">9.1%</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The foregoing non-GAAP financial measure should be considered in addition to, not as a substitute for, or superior to, operating income and other measures of financial performance prepared in accordance with GAAP as more fully discussed in the Company&#146;s financial statements and filings with the Securities and Exchange Commission.</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>All of the information furnished in Item 12 and the accompanying exhibit will not be incorporated by reference into any registration statement filed by EGL under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. &nbsp;The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by EGL, that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of EGL or any of its affiliates.</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>SIGNATURE</B></P>
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<P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
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<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Date: &nbsp;August 6, 2004</P>
<P style="margin:0pt; text-indent:180pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>EGL, INC.</B></P>
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<P style="margin-top:0pt; margin-bottom:-13pt; text-indent:216pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>By:</P>
<P style="margin-top:0pt; margin-bottom:-13pt; text-indent:252pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><U>/s/ Elijio V. Serrano</U></P>
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<P style="margin-top:0pt; margin-bottom:-13pt; text-indent:216pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
<P style="margin:0pt; text-indent:252pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Elijio V. Serrano</P>
<P style="margin:0pt; padding-left:234pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Chief Financial Officer </P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right><B>EXHIBIT 99.1</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>Friday, August 6, 2004</B></P>
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<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>EGL, Inc. Net Income Doubles </B></P>
<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>on 22% Increase in Gross Revenues </B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>HOUSTON, August 6, 2004 &#150; EGL, Inc. (NASDAQ: EAGL)</B> announced that net income increased 96% to $12.7 million for the three months ended June 30, 2004, compared to $6.5 million in the second quarter of 2003. &nbsp;Diluted earnings per share for the quarter were $0.27 compared to $0.14 in Q2-2003. &nbsp;&nbsp;</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B><U>Q2 Financial Highlights</U></B></P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Gross revenues increased 22% over Q2 2003 on improvements across all product lines and geographic areas</P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Net revenues of $209 million is a record high for the Company</P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Net income improved by $6.2 million to $12.7 million </P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Cash flow from operating activities was $21.4 million</P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Share repurchase program concluded with a total of 3.4 million shares repurchased at an average price of $17.37 per share over the entire program</P>
<P style="margin-top:0pt; margin-bottom:-13pt; padding-left:45.35pt; text-indent:-27.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>-</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; padding-left:45.35pt; text-indent:-0.35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>U.S. overnight product continues to show improvement </P>
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<TABLE cellspacing=0><TR><TD valign=top width=211.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=198 colspan=2><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B>Three Months Ended</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=198 colspan=2><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B>Six Months Ended</B></P>
</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B><U>06/30/04</U></B></P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B><U>06/30/03</U></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B><U>06/30/04</U></B></P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center><B><U>06/30/03</U></B></P>
</TD></TR>
<TR><TD valign=top width=211.2><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$ thousands (except EPS)</P>
</TD><TD valign=top width=198 colspan=2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=211.2><P style="margin:0pt; padding-left:13.5pt; text-indent:-13.5pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Gross revenues </P>
<P style="margin:0pt; padding-left:13.5pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">% change</P>
</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:31.2pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">641,058</P>
<P style="margin:0pt; text-indent:36.95pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">+ 22%</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:3.6pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:22.2pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">526,863</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:18pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:24.95pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">1,227,017</P>
<P style="margin:0pt; text-indent:21.6pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">+ 21%</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:19.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">1,010,513</P>
</TD></TR>
<TR><TD valign=top width=211.2><P style="margin:0pt; padding-left:13.5pt; text-indent:-13.5pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Net revenues</P>
<P style="margin:0pt; padding-left:13.5pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">% change</P>
<P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Net revenue margin</P>
</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:31.2pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">208,661</P>
<P style="margin:0pt; text-indent:36.95pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">+ 12%</P>
<P style="margin:0pt; text-indent:37.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">32.5%</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:3.6pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:22.2pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">185,530</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9.5pt"><BR></P>
<P style="margin:0pt; text-indent:28.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">35.2%</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:18pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:32.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">409,034</P>
<P style="margin:0pt; text-indent:37.85pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">+ 16%</P>
<P style="margin:0pt; text-indent:38.45pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">33.3%</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:26.7pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">353,096</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9.5pt"><BR></P>
<P style="margin:0pt; text-indent:33.05pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">34.9%</P>
</TD></TR>
<TR><TD valign=top width=211.2><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Net income</P>
<P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Diluted EPS</P>
</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:35.95pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">12,706</P>
<P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:45.45pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">0.27</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:3.6pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:31.7pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">6,467</P>
<P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:3.6pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:36.45pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">0.14</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=102><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:18pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:36.85pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">18,687</P>
<P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:18pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:46.35pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">0.40</P>
</TD><TD valign=top width=96><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:36.2pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">9,262</P>
<P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:8.1pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:40.95pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">0.20</P>
</TD></TR>
</TABLE>
<P style="margin-top:4.6pt; margin-bottom:4.6pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin-top:4.6pt; margin-bottom:4.6pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>5</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>EGL Chief Executive Officer Jim Crane commented, &#147;Our second quarter performance highlights the benefits of our global network. &nbsp;In the North America forwarding market, improvements in priority volumes and continued expansion of deferred shipments reflect the strength of our low cost domestic network. &nbsp;In addition, we continue to see strong growth in our international business as we leverage our North America network and customer base. &nbsp;As our domestic priority product shows improvement, we expect our profitability to accelerate.&#148; </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Gross revenues increased 22% from the second quarter of 2003 to $641 million, reflecting a 19% increase in airfreight revenues - 26% increase internationally and 14% increase in North America, a 31% increase in ocean revenues, and a 24% increase in customs brokerage and logistics. &nbsp;Gross revenues outside North America increased 29% on strong volumes in China and the Middle East. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The domestic product in the USA reflected gross revenues increasing by 8% in the second quarter compared to the same period last year. &nbsp;This was an improvement from Q1 2004 results which showed a 4% decline from the revenues over the same period of the prior year. &nbsp;The increase in revenues for Q2 2004 was driven by 9% increase in total domestic tonnage, and continued recovery in the overnight product. &nbsp;North America ground shipment volumes continue to expand, increasing 18% over the second quarter last year. &nbsp;The strength of the domestic recovery continued into July, with an increase of 6% per day in overnight shipments as compared to last year. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Q2 2004 net revenues of $209 million increased 12% over last year and surpassed net revenues for the first quarter of 2004, resulting in a new record high for the Company. &nbsp;Net revenue margins of 32.5% declined by 270 basis points from the second quarter of 2003 as a result of increased international charter activity in the second quarter and a decline in ocean margins due to increasing capacity constraints. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Operating income for the second quarter of 2004 was $13.3 million, an increase of $1.1 million from the second quarter of 2003. Operating income as a percent of net revenue was 6.4% for the second quarter of 2004, slightly down from 6.6% in the second quarter of 2003. &nbsp;Operating income for the second quarter of 2004 includes a $5.8 million facilities charge for idle facilities, including the subleasing of an excess facility in Miami. &nbsp;Excluding the facility charge, operating income would have been $19.1 million, an increase of $6.9 million from the same period last year and operating income as a percent of net revenue would have been 9.1%, the highest level since 2000. &nbsp;The following table sets forth our operating income for the second quarter of 2004, excluding the facilities charge, and provides a reconciliation of operating income according to U.S. GAAP: &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Operating Income Analysis:</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(for the three months ended June 30, 2004)</P>
<TABLE cellspacing=0><TR><TD valign=top width=240.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162.533><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center>(millions)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt" align=center>% of Net Revenues</P>
</TD></TR>
<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Operating income</P>
</TD><TD valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:46.4pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">13.3</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">6.4%</P>
</TD></TR>
<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Idle facilities charge</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:51.15pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">5.8</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">2.7%</P>
</TD></TR>
<TR><TD valign=top width=240.667><P style="margin:0pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">Operating income excluding facilities charge</P>
</TD><TD valign=top width=162.533><P style="margin-top:0pt; margin-bottom:-11.5pt; text-indent:22.55pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">$</P>
<P style="margin:0pt; text-indent:46.4pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">19.1</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=132><P style="margin:0pt; text-indent:43.25pt; line-height:11.5pt; font-family:Times New Roman; font-size:9.5pt">9.1%</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>6</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Cash flow from operations was $21 million and $57 million for the three and six months ended June 30, 2004, respectively, reflecting stronger earnings and better management of working capital. &nbsp;During the quarter, the Company concluded its previously announced repurchase program, as authorized by the Board of Directors, having purchased a total of 3.4 million shares of its common stock at an average price of $17.37 per share over the course of the entire program. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>In May 2004, the Company sold its interest in Miami Air International for $6.7 million, resulting in a gain of $6.7 million that is reflected in non-operating income. &nbsp;The Company had previously written off its investment in Miami Air in the first quarter of 2002. &nbsp;The sale was completed at a 7% gain over our original investment. &nbsp;In addition, the Company acquired the remaining interests in joint ventures in France, Spain and Portugal during the quarter for a total of $16 million. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>CEO Jim Crane added, &#147;Our organization continues to focus on operating efficiencies and the deployment of our global freight forwarding, accounting and human resources systems. The systems, re-branded as the EGL Vision suite of technologies have now been deployed in eight countries, including the United Kingdom and Hong Kong in August. &nbsp;&#147;Global Vision&#148; is the freight forwarding system that allows a seamless flow of data across the globe, eliminating duplicate data entry on multiple systems and improving visibility of shipment activity. &nbsp;&#147;Financial Vision&#148; is the Oracle-based financial system that allows global visibility of financial results, streamlined financial reporting and the ability to automate intercompany transactions. &nbsp;&#147;People Vision&#148; is the Oracle-based human resources application that allows global visibility to employee tracking, training and development. &nbsp;&nbsp;The global deployment of EGL Vision will continue into next year. &#148; </P>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Third Quarter of 2004, Total Year 2004 and Total Year 2005</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>EGL expects third quarter 2004 diluted earnings per share in the range of $0.27 to $0.29, compared to $0.12 last year. &nbsp;For 2004, EGL raises its projections of gross revenues in the range of $2.4 to $2.5 billion and raises its estimates for diluted earnings per share in the range of $0.95 - $1.00. &nbsp;In addition, for 2005, EGL projects diluted earnings per share in the range of $1.20 - $1.30.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><B>Earnings Conference Call</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>EGL, Inc. plans to host a conference call for shareholders and the investing community on August 6, 2004 at 11 a.m. Eastern time (8 a.m. Pacific) to review results for the quarter ended June 30, 2004. &nbsp;The call can be accessed by dialing (719) 457-2679, access code 560167 and is expected to last approximately 60 minutes. Callers are requested to dial in at least 5 minutes before the start of the call. The call will also be available through live webcast on the company's website, www.eaglegl.com, on the Investor Relations page. &nbsp;An audio replay will be available until Friday, August 20, 2004 at (719) 457-0820, access code 560167.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Second quarter 2004 product and geographic data and air freight statistics are available on EGL&#146;s website, www.eaglegl.com on the Investor Relations page.</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;&nbsp;</P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>7</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
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<BR>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>___________________</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><I>Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics. &nbsp;EGL is a leading global transportation, supply chain management and information services company dedicated to providing superior flexibility and fewer shipping restrictions on a price competitive basis. With 2003 revenues exceeding $2.1 billion, EGL&#146;s services include air and ocean freight forwarding, customs brokerage, local pick up and delivery service, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services. The Company&#146;s shares are traded on the NASDAQ National Market under the symbol &#147;EAGL&#148;.</I></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>___________________</P>
<P style="margin-top:0pt; margin-bottom:5.5pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:5.5pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><I>CAUTIONARY STATEMENTS</I></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><I>The statements in this press release (and statements in the conference call referred to above) regarding improvements in priority product volumes, projected profitability, adding to growth, &nbsp;increased efficiencies, the timing, scope and impact of deployment of operating and financial systems, whether or not such deployment will be completed in a timely manner, &nbsp;second quarter and total year results and diluted earnings per share, 2005 total year results and diluted earnings per share, projected results for 2004, whether or not operating costs can be reduced, projected accretive impact of facilities accruals, &nbsp;our ability to outperform the economy and other statements which are not historical facts, are forward looking statements. &nbsp;Such statements involve risks and uncertainties including, but not limited to, general economic conditions, risks associated with operating in international markets, the results of litigation, the timing and effects of any improvements in the regions and industry sectors in which the Company&#146;s customers operate, infrastructure improvements, ability to manage and continue growth, competition and other factors detailed in the Company's 2003 Form 10-K, proxy statement and other filings with the Securities and Exchange Commission. &nbsp;Should one or more of these risks or uncertainties materialize (or the consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. &nbsp;&nbsp;The Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.</I></P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>8</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=595.133 colspan=9><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>EGL, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=595.133 colspan=9><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
</TD></TR>
<TR><TD valign=bottom width=595.133 colspan=9><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>(unaudited)</B></P>
</TD></TR>
<TR><TD valign=top width=595.133 colspan=9><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><I>(in thousands, except per share amounts)</I></P>
</TD></TR>
<TR><TD valign=bottom width=209.8>&nbsp;</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=186 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Three Months Ended</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>June 30,</B></P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=186 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Six Months Ended</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=bottom width=209.8>&nbsp;</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2004</B></P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2003</B></P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2004</B></P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Revenues</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">641,058</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:22.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>526,863</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:22.3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>1,227,017</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:19.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>1,010,513</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Cost of transportation</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">432,397</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; text-indent:22.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>341,333</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:29.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>817,983</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.8><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>657,417</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Net revenues</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">208,661</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:22.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>185,530</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:29.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>409,034</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>353,096</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Operating expenses:</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90>&nbsp;</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8>&nbsp;</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; text-indent:8.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Personnel costs</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">115,768</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:22.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>105,941</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:29.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>229,890</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>204,052</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; padding-left:17.15pt; text-indent:-8.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Other selling, general and administrative expenses</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">79,614</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; text-indent:27.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>67,378</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:29.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>154,417</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.8><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>132,195</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Operating income</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">13,279</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:27.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>12,211</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>24,727</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>16,849</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Nonoperating income (expense), net</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:35.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">6,731</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; text-indent:28.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(1,809)</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:38.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>5,759</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.8><P style="margin:0pt; text-indent:32.05pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(1,951)</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; padding-left:17.15pt; text-indent:-17.15pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Income before provision for income taxes</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">20,010</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:27.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>10,402</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>30,486</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>14,898</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Provision for income taxes</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:35.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">7,304</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=84><P style="margin:0pt; text-indent:31.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>3,935</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=90><P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>11,799</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=83.8><P style="margin:0pt; text-indent:35.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>5,636</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Net income</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$</P>
<P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">12,706</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=84><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:31.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>6,467</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>18,687</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=83.8><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:35.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>9,262</P>
</TD></TR>
<TR><TD valign=bottom width=209.8>&nbsp;</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84>&nbsp;</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90>&nbsp;</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8>&nbsp;</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Basic earnings per share</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$</P>
<P style="margin:0pt; text-indent:39.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">0.28</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:36.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.14</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:42.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.41</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:39.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.20</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Diluted earnings per share</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$</P>
<P style="margin:0pt; text-indent:39.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">0.27</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:36.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.14</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:42.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.40</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:7.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:39.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>0.20</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; padding-left:17.15pt; text-indent:-17.15pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Basic weighted-average common shares outstanding</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">44,744</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:27.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>47,154</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>45,819</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>47,110</P>
</TD></TR>
<TR><TD valign=bottom width=209.8><P style="margin:0pt; padding-left:17.15pt; text-indent:-17.15pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Diluted weighted-average common shares outstanding</P>
</TD><TD valign=top width=1.333>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">50,944</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=bottom width=84><P style="margin:0pt; text-indent:27.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>47,424</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=90><P style="margin:0pt; text-indent:33.55pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>51,872</P>
</TD><TD valign=bottom width=12.2>&nbsp;</TD><TD valign=bottom width=83.8><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>47,355</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>9</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=663.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>EGL, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=663.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></P>
</TD></TR>
<TR><TD valign=bottom width=663.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>(unaudited)</B></P>
</TD></TR>
<TR><TD valign=top width=663.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><I>(in thousands)</I></P>
</TD></TR>
<TR><TD valign=bottom width=428.8>&nbsp;</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>June 30,</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2004</B></P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>December 31,</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2003</B></P>
</TD></TR>
<TR><TD width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>ASSETS</B></P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Current assets:</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash and cash equivalents, restricted cash and short-term investments</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>86,531</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>110,026</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Trade receivables, net of allowance of $11,855 and $12,342</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>489,405</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>447,353</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Other current assets</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>55,214</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>56,875</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Total current assets</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>631,150</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>614,254</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Property and equipment, net</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>170,461</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>164,038</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Investments in unconsolidated affiliates</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>41,095</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>38,957</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Goodwill, net</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>108,749</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>96,209</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Other assets, net</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>32,195</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>30,780</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Total assets</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>983,650</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>944,238</P>
</TD></TR>
<TR><TD width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Current liabilities:</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533>&nbsp;</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Current portion of long-term notes payable</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>24,305</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>13,017</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Trade payables and accrued transportation costs</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>315,324</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>268,354</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; padding-left:18.7pt; text-indent:-9.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Accrued expense and other liabilities</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>119,986</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>103,247</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Total current liabilities</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>459,615</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>384,618</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Long-term notes payable</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>109,487</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>114,407</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Other noncurrent liabilities</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>30,831</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:30.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>23,817</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Minority Interest</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:41.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>619</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD valign=bottom width=100.533><P style="margin:0pt; text-indent:35.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>6,800</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Total stockholders&#146; equity</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>383,098</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=100.533><P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>414,596</P>
</TD></TR>
<TR><TD valign=bottom width=428.8><P style="margin:0pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Total liabilities and stockholders&#146; equity</P>
</TD><TD valign=bottom width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>983,650</P>
</TD><TD valign=bottom width=15.733>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=bottom width=100.533><P style="margin-top:0pt; margin-bottom:-11pt; text-indent:5.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; text-indent:26.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>944,238</P>
</TD></TR>
<TR><TD valign=bottom width=663.6 colspan=5>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>10</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<BR>
<BR>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<TABLE cellspacing=0><TR><TD valign=bottom width=570.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>EGL, INC.</B></P>
</TD></TR>
<TR><TD valign=bottom width=570.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>
</TD></TR>
<TR><TD valign=bottom width=570.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>(unaudited)</B></P>
</TD></TR>
<TR><TD valign=top width=570.6 colspan=5><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B><I>(in </I></B><I>thousands</I><B><I>)</I></B></P>
</TD></TR>
<TR><TD valign=bottom width=380.6>&nbsp;</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=178 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Six Months Ended</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>June 30,</B></P>
</TD></TR>
<TR><TD valign=bottom width=380.6>&nbsp;</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2004</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=bottom width=25.933>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash flows from operating activities:</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78>&nbsp;</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; padding-left:5.75pt; text-indent:-0.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Net income</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:-0.05pt; text-indent:5.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; padding-left:-0.05pt; text-indent:22.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>18,687</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:-0.05pt; text-indent:5.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>9,262</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; padding-left:5.75pt; text-indent:-0.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Adjustments to reconcile net income to net cash provided by<BR>
operating activities:</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78>&nbsp;</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:14.4pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Depreciation and amortization</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>17,030</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>15,377</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:14.4pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Bad debt expense</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>2,601</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>4,457</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:14.4pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Transfers to restricted cash</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(759)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(3,286)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:14.4pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Other</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(6,643)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>3,425</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:14.4pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Net effect of changes in working capital, net of assets acquired</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>26,347</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(24,020)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Net cash provided by operating activities</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>57,263</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>5,215</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash flows from investing activities:</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78>&nbsp;</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Capital expenditures</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(21,827)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(10,832)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Purchases of short-term investments</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:31.85pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(54)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Proceeds from sales of other assets</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:30.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>749</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:30.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>540</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Proceeds from sale-lease back transactions</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>1,158</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Acquisitions of businesses, net of cash acquired</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(19,416)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(21,084)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash received from disposal of affiliate</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>6,738</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Net cash used in investing activities</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(33,810)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(30,218)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash flows from financing activities:</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78>&nbsp;</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067>&nbsp;</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Issuance of notes payable, net</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>5,229</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:34.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>31</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; padding-left:5.75pt; text-indent:-0.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Collection of notes receivable</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:30.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>346</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; padding-left:19.15pt; text-indent:-13.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Repayment of financed insurance premiums and software maintenance, net</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(2,198)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(4,553)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Repayment of capital leases</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(371)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Repurchases of common stock</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(59,079)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:40.95pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>-</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Issuance of common stock </P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:30.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>319</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:30.45pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>272</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Proceeds from exercise of stock options</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>10,150</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:23.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>1,247</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; text-indent:5.65pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Dividends paid to minority interest partners </P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:31.85pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(18)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:31.85pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(93)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Net cash used in financing activities</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(45,622)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(3,096)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Effect of exchange rate changes on cash</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:20.6pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(2,072)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:27.35pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(894)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Decrease in cash and cash equivalents</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(24,241)</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:16.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>(28,993)</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash and cash equivalents, beginning of the period</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=78><P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>95,916</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=bottom width=74.067><P style="margin:0pt; padding-left:-0.05pt; text-indent:14.7pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>111,477</P>
</TD></TR>
<TR><TD valign=bottom width=380.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>Cash and cash equivalents, end of the period</P>
</TD><TD valign=bottom width=12>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=78><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:-0.05pt; text-indent:3.75pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>71,675</P>
</TD><TD valign=bottom width=25.933>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=bottom width=74.067><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:-0.05pt; text-indent:5.1pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>$</P>
<P style="margin:0pt; padding-left:-0.05pt; text-indent:19.2pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=justify>82,484</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Second quarter 2004 product and geographic data and air freight statistics are available on EGL&#146;s website, <FONT COLOR=#0000FF><U>www.eaglegl.com</U></FONT> on the Investor Relations page.</P>
<BR>
<BR>
<BR>
<BR>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>11</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
</BODY>
</HTML>
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{"company-data": {"conformed-name": "EGL INC", "cik": "0001001718", "assigned-sic": "4731", "irs-number": "760094895", "state-of-incorporation": "TX", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27288", "film-number": "04956227"}, "business-address": {"street1": "15340 VICKERY DR", "city": "HOUSTON", "state": "TX", "zip": "77032", "phone": "2816183100"}, "mail-address": {"street1": "15350 VICKERY DR", "street2": "SUITE 510", "city": "HOUSTON", "state": "TX", "zip": "77032"}, "former-company": {"former-conformed-name": "EAGLE USA AIRFREIGHT INC", "date-changed": "19951002"}}
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d ) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 6, 2004
EGL, Inc.
(Exact name of registrant as specified in its charter)
Texas
000-27288
76-0094895
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
15350 Vickery Drive, Houston, Texas
77032
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(281) 618-3100
1
Item 7.
Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
The following exhibit is furnished pursuant to Item 12:
99.1
Press Release, dated August 6, 2004, reporting financial results for the period ended June 30, 2004.
Item 12.
Results of Operation and Financial Condition
The press release attached hereto as Exhibit 99.1 reports certain financial results for the second quarter ended June 30, 2004.
In addition to financial results determined in accordance with generally accepted accounting principles (GAAP) that are included in the attached press release, the press release also includes the following non-GAAP financial measures (as defined under the SEC's Regulation G):
-
Operating Income Excluding Facilities Charge:
Operating income excluding a facilities charge means operating revenues from continuing operations less property related expenses as a result of elimination of facilities' expenses.  Management believes that the exclusion of the loss recognized on such facilities charge enables it to evaluate more effectively the Company's operations period over period and to identify operating trends that could otherwise be masked by the excluded item.
Operating Income Analysis:
(for the Three Months Ended June 30, 2004)
(millions)
% of Net Revenues
Operating income
$
13.3
6.4%
Idle facilities charge
$
5.8
2.7%
Operating income excluding facilities charge
$
19.1
9.1%
The foregoing non-GAAP financial measure should be considered in addition to, not as a substitute for, or superior to, operating income and other measures of financial performance prepared in accordance with GAAP as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.
2
All of the information furnished in Item 12 and the accompanying exhibit will not be incorporated by reference into any registration statement filed by EGL under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.  The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by EGL, that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of EGL or any of its affiliates.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:  August 6, 2004
EGL, INC.
By:
/s/ Elijio V. Serrano
Elijio V. Serrano
Chief Financial Officer
4
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Friday, August 6, 2004
EGL, Inc. Net Income Doubles
on 22% Increase in Gross Revenues
HOUSTON, August 6, 2004 – EGL, Inc. (NASDAQ: EAGL)
announced that net income increased 96% to $12.7 million for the three months ended June 30, 2004, compared to $6.5 million in the second quarter of 2003.  Diluted earnings per share for the quarter were $0.27 compared to $0.14 in Q2-2003.
Q2 Financial Highlights
-
Gross revenues increased 22% over Q2 2003 on improvements across all product lines and geographic areas
-
Net revenues of $209 million is a record high for the Company
-
Net income improved by $6.2 million to $12.7 million
-
Cash flow from operating activities was $21.4 million
-
Share repurchase program concluded with a total of 3.4 million shares repurchased at an average price of $17.37 per share over the entire program
-
U.S. overnight product continues to show improvement
Three Months Ended
Six Months Ended
06/30/04
06/30/03
06/30/04
06/30/03
$ thousands (except EPS)
Gross revenues
% change
$
641,058
+ 22%
$
526,863
$
1,227,017
+ 21%
$
1,010,513
Net revenues
% change
Net revenue margin
$
208,661
+ 12%
32.5%
$
185,530
35.2%
$
409,034
+ 16%
33.3%
$
353,096
34.9%
Net income
Diluted EPS
$
12,706
$
0.27
$
6,467
$
0.14
$
18,687
$
0.40
$
9,262
$
0.20
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EGL Chief Executive Officer Jim Crane commented, "Our second quarter performance highlights the benefits of our global network.  In the North America forwarding market, improvements in priority volumes and continued expansion of deferred shipments reflect the strength of our low cost domestic network.  In addition, we continue to see strong growth in our international business as we leverage our North America network and customer base.  As our domestic priority product shows improvement, we expect our profitability to accelerate."
Gross revenues increased 22% from the second quarter of 2003 to $641 million, reflecting a 19% increase in airfreight revenues - 26% increase internationally and 14% increase in North America, a 31% increase in ocean revenues, and a 24% increase in customs brokerage and logistics.  Gross revenues outside North America increased 29% on strong volumes in China and the Middle East.
The domestic product in the USA reflected gross revenues increasing by 8% in the second quarter compared to the same period last year.  This was an improvement from Q1 2004 results which showed a 4% decline from the revenues over the same period of the prior year.  The increase in revenues for Q2 2004 was driven by 9% increase in total domestic tonnage, and continued recovery in the overnight product.  North America ground shipment volumes continue to expand, increasing 18% over the second quarter last year.  The strength of the domestic recovery continued into July, with an increase of 6% per day in overnight shipments as compared to last year.
Q2 2004 net revenues of $209 million increased 12% over last year and surpassed net revenues for the first quarter of 2004, resulting in a new record high for the Company.  Net revenue margins of 32.5% declined by 270 basis points from the second quarter of 2003 as a result of increased international charter activity in the second quarter and a decline in ocean margins due to increasing capacity constraints.
Operating income for the second quarter of 2004 was $13.3 million, an increase of $1.1 million from the second quarter of 2003. Operating income as a percent of net revenue was 6.4% for the second quarter of 2004, slightly down from 6.6% in the second quarter of 2003.  Operating income for the second quarter of 2004 includes a $5.8 million facilities charge for idle facilities, including the subleasing of an excess facility in Miami.  Excluding the facility charge, operating income would have been $19.1 million, an increase of $6.9 million from the same period last year and operating income as a percent of net revenue would have been 9.1%, the highest level since 2000.  The following table sets forth our operating income for the second quarter of 2004, excluding the facilities charge, and provides a reconciliation of operating income according to U.S. GAAP:
Operating Income Analysis:
(for the three months ended June 30, 2004)
(millions)
% of Net Revenues
Operating income
$
13.3
6.4%
Idle facilities charge
$
5.8
2.7%
Operating income excluding facilities charge
$
19.1
9.1%
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Cash flow from operations was $21 million and $57 million for the three and six months ended June 30, 2004, respectively, reflecting stronger earnings and better management of working capital.  During the quarter, the Company concluded its previously announced repurchase program, as authorized by the Board of Directors, having purchased a total of 3.4 million shares of its common stock at an average price of $17.37 per share over the course of the entire program.
In May 2004, the Company sold its interest in Miami Air International for $6.7 million, resulting in a gain of $6.7 million that is reflected in non-operating income.  The Company had previously written off its investment in Miami Air in the first quarter of 2002.  The sale was completed at a 7% gain over our original investment.  In addition, the Company acquired the remaining interests in joint ventures in France, Spain and Portugal during the quarter for a total of $16 million.
CEO Jim Crane added, "Our organization continues to focus on operating efficiencies and the deployment of our global freight forwarding, accounting and human resources systems. The systems, re-branded as the EGL Vision suite of technologies have now been deployed in eight countries, including the United Kingdom and Hong Kong in August.  "Global Vision" is the freight forwarding system that allows a seamless flow of data across the globe, eliminating duplicate data entry on multiple systems and improving visibility of shipment activity.  "Financial Vision" is the Oracle-based financial system that allows global visibility of financial results, streamlined financial reporting and the ability to automate intercompany transactions.  "People Vision" is the Oracle-based human resources application that allows global visibility to employee tracking, training and development.   The global deployment of EGL Vision will continue into next year. "
Third Quarter of 2004, Total Year 2004 and Total Year 2005
EGL expects third quarter 2004 diluted earnings per share in the range of $0.27 to $0.29, compared to $0.12 last year.  For 2004, EGL raises its projections of gross revenues in the range of $2.4 to $2.5 billion and raises its estimates for diluted earnings per share in the range of $0.95 - $1.00.  In addition, for 2005, EGL projects diluted earnings per share in the range of $1.20 - $1.30.
Earnings Conference Call
EGL, Inc. plans to host a conference call for shareholders and the investing community on August 6, 2004 at 11 a.m. Eastern time (8 a.m. Pacific) to review results for the quarter ended June 30, 2004.  The call can be accessed by dialing (719) 457-2679, access code 560167 and is expected to last approximately 60 minutes. Callers are requested to dial in at least 5 minutes before the start of the call. The call will also be available through live webcast on the company's website, www.eaglegl.com, on the Investor Relations page.  An audio replay will be available until Friday, August 20, 2004 at (719) 457-0820, access code 560167.
Second quarter 2004 product and geographic data and air freight statistics are available on EGL's website, www.eaglegl.com on the Investor Relations page.
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___________________
Houston-based EGL, Inc. operates under the name EGL Eagle Global Logistics.  EGL is a leading global transportation, supply chain management and information services company dedicated to providing superior flexibility and fewer shipping restrictions on a price competitive basis. With 2003 revenues exceeding $2.1 billion, EGL's services include air and ocean freight forwarding, customs brokerage, local pick up and delivery service, materials management, warehousing, trade facilitation and procurement, and integrated logistics and supply chain management services. The Company's shares are traded on the NASDAQ National Market under the symbol "EAGL".
___________________
CAUTIONARY STATEMENTS
The statements in this press release (and statements in the conference call referred to above) regarding improvements in priority product volumes, projected profitability, adding to growth,  increased efficiencies, the timing, scope and impact of deployment of operating and financial systems, whether or not such deployment will be completed in a timely manner,  second quarter and total year results and diluted earnings per share, 2005 total year results and diluted earnings per share, projected results for 2004, whether or not operating costs can be reduced, projected accretive impact of facilities accruals,  our ability to outperform the economy and other statements which are not historical facts, are forward looking statements.  Such statements involve risks and uncertainties including, but not limited to, general economic conditions, risks associated with operating in international markets, the results of litigation, the timing and effects of any improvements in the regions and industry sectors in which the Company's customers operate, infrastructure improvements, ability to manage and continue growth, competition and other factors detailed in the Company's 2003 Form 10-K, proxy statement and other filings with the Securities and Exchange Commission.  Should one or more of these risks or uncertainties materialize (or the consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected.   The Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
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EGL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2004
2003
2004
2003
Revenues
$
641,058
$
526,863
$
1,227,017
$
1,010,513
Cost of transportation
432,397
341,333
817,983
657,417
Net revenues
208,661
185,530
409,034
353,096
Operating expenses:
Personnel costs
115,768
105,941
229,890
204,052
Other selling, general and administrative expenses
79,614
67,378
154,417
132,195
Operating income
13,279
12,211
24,727
16,849
Nonoperating income (expense), net
6,731
(1,809)
5,759
(1,951)
Income before provision for income taxes
20,010
10,402
30,486
14,898
Provision for income taxes
7,304
3,935
11,799
5,636
Net income
$
12,706
$
6,467
$
18,687
$
9,262
Basic earnings per share
$
0.28
$
0.14
$
0.41
$
0.20
Diluted earnings per share
$
0.27
$
0.14
$
0.40
$
0.20
Basic weighted-average common shares outstanding
44,744
47,154
45,819
47,110
Diluted weighted-average common shares outstanding
50,944
47,424
51,872
47,355
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EGL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
June 30,
2004
December 31,
2003
ASSETS
Current assets:
Cash and cash equivalents, restricted cash and short-term investments
$
86,531
$
110,026
Trade receivables, net of allowance of $11,855 and $12,342
489,405
447,353
Other current assets
55,214
56,875
Total current assets
631,150
614,254
Property and equipment, net
170,461
164,038
Investments in unconsolidated affiliates
41,095
38,957
Goodwill, net
108,749
96,209
Other assets, net
32,195
30,780
Total assets
$
983,650
$
944,238
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term notes payable
24,305
13,017
Trade payables and accrued transportation costs
315,324
268,354
Accrued expense and other liabilities
119,986
103,247
Total current liabilities
459,615
384,618
Long-term notes payable
109,487
114,407
Other noncurrent liabilities
30,831
23,817
Minority Interest
619
6,800
Total stockholders' equity
383,098
414,596
Total liabilities and stockholders' equity
$
983,650
$
944,238
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EGL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in
thousands
)
Six Months Ended
June 30,
2004
2003
Cash flows from operating activities:
Net income
$
18,687
$
9,262
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
17,030
15,377
Bad debt expense
2,601
4,457
Transfers to restricted cash
(759)
(3,286)
Other
(6,643)
3,425
Net effect of changes in working capital, net of assets acquired
26,347
(24,020)
Net cash provided by operating activities
57,263
5,215
Cash flows from investing activities:
Capital expenditures
(21,827)
(10,832)
Purchases of short-term investments
(54)
-
Proceeds from sales of other assets
749
540
Proceeds from sale-lease back transactions
-
1,158
Acquisitions of businesses, net of cash acquired
(19,416)
(21,084)
Cash received from disposal of affiliate
6,738
-
Net cash used in investing activities
(33,810)
(30,218)
Cash flows from financing activities:
Issuance of notes payable, net
5,229
31
Collection of notes receivable
346
-
Repayment of financed insurance premiums and software maintenance, net
(2,198)
(4,553)
Repayment of capital leases
(371)
-
Repurchases of common stock
(59,079)
-
Issuance of common stock
319
272
Proceeds from exercise of stock options
10,150
1,247
Dividends paid to minority interest partners
(18)
(93)
Net cash used in financing activities
(45,622)
(3,096)
Effect of exchange rate changes on cash
(2,072)
(894)
Decrease in cash and cash equivalents
(24,241)
(28,993)
Cash and cash equivalents, beginning of the period
95,916
111,477
Cash and cash equivalents, end of the period
$
71,675
$
82,484
Second quarter 2004 product and geographic data and air freight statistics are available on EGL's website,
www.eaglegl.com
on the Investor Relations page.
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