Express-1 Expedited Solutions, Inc. today reported its earnings for the first quarter, ended March 31, 2009.

Express-1 Expedited Solutions, Inc. through its three operating companies (Express-1, Concert Group Logistics and Bounce Logistics), provides the following premium transportation services: same-day delivery, time-sensitive shipping and premium freight brokerage throughout North America, as well as domestic and international freight forwarding.

During the first quarter of 2009, Express-1 Expedited Solutions, Inc. reported a net income of $5,000 compared to $643,000 for the same quarter in 2008. The overall performance of the Company during the quarter was significantly impacted by a 15% reduction in gross revenues compared to the same quarter in 2008. This was due in large part to the current economic recession. The falling price of fuel also had a negative impact on gross revenues as fuel surcharge revenues were down on a quarter to quarter basis. Mike Welch, the Company's CEO shared these thoughts, "Falling demand and excess capacity made for a very challenging transportation market in Q1. Although the economic recession has had a negative impact on the entire transportation market, our asset light model and its ability to quickly adapt to changing market conditions will enable us to weather these uncertain economic times."

We continue to be excited about the potential of our Concert Group Logistics and Bounce business units as their diversified operations tempered our overall volume reductions in the first quarter of 2009. During Q1, the company purchased the operations and certain net assets from First Class Expediting Services in Rochester Hills, MI. "Our economic environment has brought with it acquisition opportunities such as First Class Expediting", stated Welch, "This short haul expedited operation will allow our Expediting arm to expand into another niche and further complement the services provided by Express-1. "

During the quarter, we right-sized our operations to more efficiently deal with the current economic realities. These cuts which were primarily administrative in nature should result in savings of nearly $2,000,000 for the remainder of the year. We believe that these reductions will further strengthen our ongoing financial position as we continue through uncertain times. Unfortunately, transition costs involved with the right-sizing process prevented material cost reductions within the first quarter of 2009, however, the Company is realizing some of the anticipated results early in the second quarter.

Express-1 continues to have a strong balance sheet in addition to making strides in managing its accounts receivable. "As the automotive business has declined, so has our revenue and related accounts receivables associated with the industry" stated Welch. "We no longer have any customers that represent over 5% of our outstanding receivables and the combined total of the Big Three automotive manufacturers represents less than 4% of our receivables as of March 31, 2009."

Overall, cash flow remains healthy as the final earnout of Concert Group Logistics and the acquisition of the First Class Expediting Services operation were funded through the Company's credit facility during the first quarter. As of March 31, the Company had an additional $4.3 million of capacity on its line of credit, and the Company anticipates no additional significant capital needs for 2009. Additionally, the company remains in compliance with all of its debt covenants as of March 31, 2009.

Since March 31, 2009, the Company has cancelled or expired 2.2 million options and warrants. This represents a 40% reduction in our outstanding options and warrants and significantly reduces our potential for future dilution.

Conference Call/Webcast Information

Management will conduct a conference call Thursday May 14, 2009 at 11:00 a.m. Eastern to discuss the Company's fourth quarter financial results. Those interested in accessing a live or archived Webcast of the call should visit the Company's Website at www.express-1.com. Those wishing to take part in the live teleconference call can dial 877-407-0782, with international participants dialing 201-689-8567. A playback will be available until midnight on May 21, 2009. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 322583.

Forward-Looking Statements

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs, as well as assumptions made by and information currently available to management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance are subject to risks. These risks include: that our recent reorganization fails to result in projected operating efficiencies; the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with customers, whether due to competition or other factors; the inability to comply with regulatory requirements governing our business operations; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above, you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

Express-1 Expedited Solutions

Consolidated Balance Sheet

         
    (Unaudited)    
    March 31, 2009   December 31, 2008
ASSETS        
Current assets:        
Cash   $ 1,189,000     $ 1,107,000  
Accounts receivable, net of allowances of $126,000 and $133,000, respectively   11,071,000     12,202,000  
Prepaid expenses   346,000     372,000  
Deferred tax asset, current   577,000     493,000  
Other current assets   1,018,000     650,000  
Total current assets   14,201,000     14,824,000  
         
Property and equipment, net of $2,223,000 and $2,220,000 in accumulated depreciation, respectively   3,065,000     3,141,000  
Goodwill   15,602,000     14,915,000  
Identifiable intangible assets, net of $1,794,000 and $1,682,000 in accumulated amortization, respectively   7,729,000     7,631,000  
Loans and advances   52,000     63,000  
Other long term assets   1,016,000     1,108,000  
Total long term assets   27,464,000     26,858,000  
Total assets   $ 41,665,000     $ 41,682,000  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 5,635,000     $ 6,578,000  
Accrued salaries and wages   248,000     691,000  
Accrued expenses, other   1,264,000     862,000  
Current maturities of long-term debt   1,219,000     1,235,000  
Other current liabilities   292,000     1,030,000  
Total current liabilities   8,658,000     10,396,000  
         
         
Line of credit   4,159,000     2,320,000  
Notes payable and capital leases, net of current maturities   1,123,000     1,400,000  
Deferred tax liability, long-term   664,000     583,000  
Other long-term liabilities   488,000     456,000  
Total long-term liabilities   6,434,000     4,759,000  
         
Stockholders' equity:        
Preferred stock, $.001 par value; 10,000,000 shares; no shares issued or outstanding        

Common stock, $.001 par value; 100,000,000 shares authorized; 32,215,218 and 32,215,218 shares issued; and 32,035,218 and 32,035,218 shares issued

  32,000     32,000  
Additional paid-in capital   26,357,000     26,316,000  
Treasury stock, at cost, 180,000 shares held   (107,000 )   (107,000 )
Accumulated earnings   291,000     286,000  
Total stockholders' equity   26,573,000     26,527,000  
    $ 41,665,000     $ 41,682,000  

 

Express-1 Expedited Solutions

Consolidated Statements of Operation

     
    Three Months Ended
    March 31, 2009   March 31, 2008
Revenues        
Operating revenue   $ 20,072,000     $ 23,716,000
Expenses        
Direct expense     16,856,000       19,606,000
Gross margin     3,216,000       4,110,000
Sales general and administrative expense     3,243,000       3,150,000
Operating income (loss) from continuing operations     (27,000 )     960,000
Other (income) expense     (10,000 )     3,000
Interest expense     22,000       80,000
Income (loss) from continuing operations before income tax     (39,000 )     877,000
Income tax provision (benefit)     (14,000 )     347,000
Income (loss) from continuing operations     (25,000 )     530,000
Income from discontinued operations, net of tax     30,000       113,000
Net income   $ 5,000     $ 643,000
         
         
         
Basic income per share        
Income from continuing operations   $ -     $ 0.02
Income from discontinued operations     -       -
Net income     -       0.02
Diluted income per share        
Income from continuing operations     -       0.02
Income from discontinued operations     -       -
Net income   $ -     $ 0.02
Weighted average common shares outstanding        
Basic weighted average common shares outstanding     32,035,218       29,717,539
Diluted weighted average common shares outstanding     32,150,601       30,068,442

 

Express-1 Expedited Solutions, Inc.
Summary Financial Table
                         
For the Three Months Ended March 31,
(Unaudited)
                    Percent of
    Quarter to Date   Quarter to Quarter Change   Business Unit Revenue
    2009   2008   In Dollars   In Percentage   2009   2008
Revenues                        
Express-1   $ 8,888,000     $ 13,168,000     $ (4,280,000 )   -32.5 %   44.3 %   55.5 %
Concert Group Logisitcs   9,639,000     10,471,000     (832,000 )   -7.9 %   48.0 %   44.2 %
Bounce Logistics   1,780,000     183,000     1,597,000     872.7 %   8.9 %   0.8 %
Intercompany eliminations   (235,000 )   (106,000 )   (129,000 )   -121.7 %   -1.2 %   -0.5 %
Total revenues   20,072,000     23,716,000     (3,644,000 )   -15.4 %   100.0 %   100.0 %
                         
Direct expenses                        
Express-1   6,876,000     10,055,000     (3,179,000 )   -31.6 %   77.4 %   76.4 %
Concert Group Logisitcs   8,752,000     9,484,000     (732,000 )   -7.7 %   90.8 %   90.6 %
Bounce Logistics   1,463,000     173,000     1,290,000     745.7 %   82.2 %   94.5 %
Intercompany eliminations   (235,000 )   (106,000 )   (129,000 )   -121.7 %   100.0 %   100.0 %
Total direct expenses   16,856,000     19,606,000     (2,750,000 )   -14.0 %   84.0 %   82.7 %
                         
Gross margin                        
Express-1   2,012,000     3,113,000     (1,101,000 )   -35.4 %   22.6 %   23.6 %
Concert Group Logisitcs   887,000     987,000     (100,000 )   -10.1 %   9.2 %   9.4 %
Bounce Logistics   317,000     10,000     307,000     3070.0 %   17.8 %   5.5 %
Total gross margin   3,216,000     4,110,000     (894,000 )   -21.8 %   16.0 %   17.3 %
                         
Selling, general & administrative                        
Express-1   1,852,000     1,859,000     (7,000 )   -0.4 %   20.8 %   14.1 %
Concert Group Logisitcs   687,000     746,000     (59,000 )   -7.9 %   7.1 %   7.1 %
Bounce Logistics   276,000     136,000     140,000     102.9 %   15.5 %   74.3 %
Corporate   428,000     409,000     19,000     4.6 %   2.1 %   1.7 %
Total selling, general & administrative   3,243,000     3,150,000     93,000     3.0 %   16.2 %   13.3 %
                         
Operating income from continuing operations                        
Express-1   160,000     1,254,000     (1,094,000 )   -87.2 %   1.8 %   9.5 %
Concert Group Logisitcs   200,000     241,000     (41,000 )   -17.0 %   2.1 %   2.3 %
Bounce Logistics   41,000     (126,000 )   167,000     132.5 %   2.3 %   -68.9 %
Corporate   (428,000 )   (409,000 )   (19,000 )   -4.6 %   -2.1 %   -1.7 %
Operating income (loss) from continuing operations   (27,000 )   960,000     (987,000 )   -102.8 %   -0.1 %   4.0 %
                         
Interest expense   22,000     80,000     (58,000 )   -72.5 %   0.1 %   0.3 %
Other (income) expense   (10,000 )   3,000     (13,000 )   -433.3 %   0.0 %   0.0 %
Income (loss) from continuing operations before tax   (39,000 )   877,000     (916,000 )   -104.4 %   -0.2 %   3.7 %
                         
Tax provision (benefit)   (14,000 )   347,000     (361,000 )   -104.0 %   -0.1 %   1.5 %
Income (loss) from continuing operations   (25,000 )   530,000     (555,000 )   -104.7 %   -0.1 %   2.2 %
                         
Income from discontinued operations, net of tax   30,000     113,000     (83,000 )   -73.5 %   0.1 %   0.5 %
Net income   $ 5,000     $ 643,000     $ (638,000 )   -99.2 %   0.0 %   2.7 %