XPO Revenues Increase by 70% in Third Quarter

Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the third quarter ended September 30, 2010.

For the quarter, revenue from continuing operations increased by 70% to $44.4 million compared to $26.2 million in the third quarter of 2009. Additionally, year over year revenues also increased by 70% to $116.4 million compared to $68.5 million in the initial nine months of 2009.

For the quarter, net income improved by $919,000 to $1.7 million, or $.05 per fully diluted share compared to income of $811,000 in the third quarter of 2009. Year to date net income improved by $3.0 million to $4.1 million or $.12 per fully diluted share compared to net income of $1.1 million in the comparable period in 2009.

"2010 continues to be a breakout year for Express-1 Expedited Solutions and I couldn't be happier about our strong financial results in what we consider very unsure economic times. We continue to believe that we are well positioned as we look to the immediate future. Again, I would like to thank our employees for their leadership and hard work as we continue to proactively meet and respond to the challenges in our industry," commented Mike Welch, the Company's CEO.

"Express-1's numbers continue to speak for themselves in 2010. Mike and his team have much to be excited about as we continue to emerge from the recession," stated James Martell, Chairman of XPO.

Investor Conference Call

Management will conduct a conference call on Monday, November 15, 2010 at 10:00 a.m. EST to discuss the Company's third quarter financial results. 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 November 19, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 360349. Those interested in accessing a live or archived Webcast of the call should visit http://www.investorcalendar.com under Express-1 Expedited Solutions, Inc.

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: the acquisition of businesses or the launch of new lines of business could increase operating expenses and dilute operating margins; increased competition 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, Inc.

Consolidated Balance Sheets

         
         
    (Unaudited)    
    September 30, 2010   December 31, 2009
ASSETS        
Current assets:        
Cash   $ 951,000     $ 495,000  
Accounts receivable, net of allowances of $302,000 and $225,000, respectively     26,282,000       17,569,000  
Prepaid expenses     430,000       158,000  
Deferred tax asset, current     169,000       353,000  
Other current assets     554,000       459,000  
Total current assets     28,386,000       19,034,000  
         
Property and equipment, net of $3,116,000 and $2,651,000 in accumulated depreciation, respectively     2,806,000       2,797,000  
Goodwill     16,959,000       16,959,000  
Identifiable intangible assets, net of $2,669,000 and $2,198,000 in accumulated amortization, respectively     8,704,000       9,175,000  
Loans and advances     162,000       30,000  
Other long-term assets     735,000       1,044,000  
Total long-term assets     29,366,000       30,005,000  
Total assets   $ 57,752,000     $ 49,039,000  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 8,780,000     $ 6,769,000  
Accrued salaries and wages     1,218,000       310,000  
Accrued expenses, other     3,469,000       2,272,000  
Line of credit     -       6,530,000  
Current maturities of notes payable and capital leases     1,671,000       1,215,000  
Other current liabilities     495,000       968,000  
Total current liabilities     15,633,000       18,064,000  
         
         
Line of credit     4,073,000       -  
Notes payable and capital leases, net of current maturities     2,513,000       213,000  
Deferred tax liability, long-term     1,630,000       1,156,000  
Other long-term liabilities     841,000       1,202,000  
Total long-term liabilities     9,057,000       2,571,000  
         
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; 32,562,522 and 32,215,218 shares issued,        
respectively; and 32,382,522 and 32,035,218 shares outstanding, respectively     33,000       32,000  
Additional paid-in capital     27,077,000       26,488,000  
Treasury stock, at cost, 180,000 shares held     (107,000 )     (107,000 )
Accumulated earnings     6,059,000       1,991,000  
Total stockholders' equity     33,062,000       28,404,000  
Total liabilities and stockholders' equity   $ 57,752,000     $ 49,039,000  

 

 

Express-1 Expedited Solutions, Inc.

Consolidated Statements of Operations

(Unaudited)

                 
                 
    Three Months Ended   Nine Months Ended
    September 30, 2010   September 30, 2009   September 30, 2010   September 30, 2009
Revenues                
Operating revenue   $ 44,448,000   $ 26,211,000   $ 116,430,000   $ 68,526,000
Expenses                
Direct expense     36,309,000     21,482,000     95,453,000     56,944,000
Gross margin     8,139,000     4,729,000     20,977,000     11,582,000
Sales general and administrative expense     5,219,000     3,284,000     13,892,000     9,533,000
Operating income from continuing operations     2,920,000     1,445,000     7,085,000     2,049,000
Other expense     48,000     19,000     102,000     28,000
Interest expense     32,000     26,000     140,000     74,000
Income from continuing operations before income tax     2,840,000     1,400,000     6,843,000     1,947,000
Income tax provision     1,110,000     599,000     2,775,000     858,000
Income from continuing operations     1,730,000     801,000     4,068,000     1,089,000
Income from discontinued operations, net of tax     -     10,000     -     15,000
Net income   $ 1,730,000   $ 811,000   $ 4,068,000   $ 1,104,000
                 
                 
Basic income per share                
Income from continuing operations   $ 0.05   $ 0.03   $ 0.13   $ 0.03
Income from discontinued operations     -     -     -     -
Net income     0.05     0.03     0.13     0.03
Diluted income per share                
Income from continuing operations     0.05     0.03     0.12     0.03
Income from discontinued operations     -     -     -     -
Net income   $ 0.05   $ 0.03   $ 0.12   $ 0.03
Weighted average common shares outstanding                
Basic weighted average common shares outstanding     32,381,502     32,035,218     32,154,890     32,035,218
Diluted weighted average common shares outstanding     33,008,742     32,138,885     32,741,822     32,142,150

 

                         
Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended September 30,
(Unaudited)
                    Percent of
    Quarter to Date   Quarter to Quarter Change   Business Unit Revenue
    2010   2009   In Dollars   In Percentage   2010   2009
Revenues                        
Express-1   $ 21,407,000     $ 14,704,000     $ 6,703,000     45.6 %   48.2 %   56.1 %
Concert Group Logistics     18,586,000       8,945,000       9,641,000     107.8 %   41.8 %   34.1 %
Bounce Logistics     5,696,000       3,077,000       2,619,000     85.1 %   12.8 %   11.7 %
Intercompany eliminations     (1,241,000 )     (515,000 )     (726,000 )   -141.0 %   -2.8 %   -1.9 %
Total revenues     44,448,000       26,211,000       18,237,000     69.6 %   100.0 %   100.0 %
                         
Direct expenses                        
Express-1     16,096,000       11,430,000       4,666,000     40.8 %   75.2 %   77.7 %
Concert Group Logistics     16,699,000       8,026,000       8,673,000     108.1 %   89.8 %   89.7 %
Bounce Logistics     4,755,000       2,541,000       2,214,000     87.1 %   83.5 %   82.6 %
Intercompany eliminations     (1,241,000 )     (515,000 )     (726,000 )   -141.0 %   100.0 %   100.0 %
Total direct expenses     36,309,000       21,482,000       14,827,000     69.0 %   81.7 %   82.0 %
                         
Gross margin                        
Express-1     5,311,000       3,274,000       2,037,000     62.2 %   24.8 %   22.3 %
Concert Group Logistics     1,887,000       919,000       968,000     105.3 %   10.2 %   10.3 %
Bounce Logistics     941,000       536,000       405,000     75.6 %   16.5 %   17.4 %
Total gross margin     8,139,000       4,729,000       3,410,000     72.1 %   18.3 %   18.0 %
                         
Selling, general & administrative                        
Express-1     2,779,000       1,867,000       912,000     48.8 %   13.0 %   12.7 %
Concert Group Logistics     1,335,000       632,000       703,000     111.2 %   7.2 %   7.1 %
Bounce Logistics     661,000       355,000       306,000     86.2 %   11.6 %   11.5 %
Corporate     444,000       430,000       14,000     3.3 %   1.0 %   1.6 %
Total selling, general & administrative     5,219,000       3,284,000       1,935,000     58.9 %   11.7 %   12.5 %
                         
Operating income from continuing operations                        
Express-1     2,532,000       1,407,000       1,125,000     80.0 %   11.8 %   9.6 %
Concert Group Logistics     552,000       287,000       265,000     92.3 %   3.0 %   3.2 %
Bounce Logistics     280,000       181,000       99,000     54.7 %   4.9 %   5.9 %
Corporate     (444,000 )     (430,000 )     (14,000 )   -3.3 %   -1.0 %   -1.6 %
Operating income from continuing operations     2,920,000       1,445,000       1,475,000     102.1 %   6.6 %   5.5 %
                         
Interest expense     32,000       26,000       6,000     23.1 %   0.1 %   0.1 %
Other expense     48,000       19,000       29,000     152.6 %   0.1 %   0.1 %
Income from continuing operations before tax     2,840,000       1,400,000       1,440,000     102.9 %   6.4 %   5.3 %
                         
Tax provision     1,110,000       599,000       511,000     85.3 %   2.5 %   2.3 %
Income from continuing operations     1,730,000       801,000       929,000     116.0 %   3.9 %   3.1 %
                         
Loss from discontinued operations, net of tax     -       10,000       (10,000 )   -100.0 %   0.0 %   0.0 %
Net income   $ 1,730,000     $ 811,000     $ 919,000     113.3 %   3.9 %   3.1 %

 

                         
Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Nine Months Ended September 30,
(Unaudited)
                    Percent of
    Year to Date   Year to Year Change   Business Unit Revenue
    2010   2009   In Dollars   In Percentage   2010   2009
Revenues                        
Express-1   $ 58,176,000     $ 33,682,000     $ 24,494,000     72.7 %   50.0 %   49.2 %
Concert Group Logistics     47,598,000       28,739,000       18,859,000     65.6 %   40.9 %   41.9 %
Bounce Logistics     13,494,000       7,089,000       6,405,000     90.4 %   11.6 %   10.3 %
Intercompany eliminations     (2,838,000 )     (984,000 )     (1,854,000 )   -188.4 %   -2.5 %   -1.4 %
Total revenues     116,430,000       68,526,000       47,904,000     69.9 %   100.0 %   100.0 %
                         
Direct expenses                        
Express-1     44,358,000       26,099,000       18,259,000     70.0 %   76.2 %   77.5 %
Concert Group Logistics     42,653,000       25,952,000       16,701,000     64.4 %   89.6 %   90.3 %
Bounce Logistics     11,280,000       5,877,000       5,403,000     91.9 %   83.6 %   82.9 %
Intercompany eliminations     (2,838,000 )     (984,000 )     (1,854,000 )   -188.4 %   100.0 %   100.0 %
Total direct expenses     95,453,000       56,944,000       38,509,000     67.6 %   82.0 %   83.1 %
                         
Gross margin                        
Express-1     13,818,000       7,583,000       6,235,000     82.2 %   23.8 %   22.5 %
Concert Group Logistics     4,945,000       2,787,000       2,158,000     77.4 %   10.4 %   9.7 %
Bounce Logistics     2,214,000       1,212,000       1,002,000     82.7 %   16.4 %   17.1 %
Total gross margin     20,977,000       11,582,000       9,395,000     81.1 %   18.0 %   16.9 %
                         
Selling, general & administrative                        
Express-1     7,155,000       5,319,000       1,836,000     34.5 %   12.3 %   15.8 %
Concert Group Logistics     3,582,000       1,949,000       1,633,000     83.8 %   7.5 %   6.8 %
Bounce Logistics     1,696,000       904,000       792,000     87.6 %   12.6 %   12.8 %
Corporate     1,459,000       1,361,000       98,000     7.2 %   1.3 %   2.0 %
Total selling, general & administrative     13,892,000       9,533,000       4,359,000     45.7 %   11.9 %   13.9 %
                         
Operating income from continuing operations                        
Express-1     6,663,000       2,264,000       4,399,000     194.3 %   11.5 %   6.7 %
Concert Group Logistics     1,363,000       838,000       525,000     62.6 %   2.9 %   2.9 %
Bounce Logistics     518,000       308,000       210,000     68.2 %   3.8 %   4.3 %
Corporate     (1,459,000 )     (1,361,000 )     (98,000 )   -7.2 %   -1.3 %   -2.0 %
Operating income from continuing operations     7,085,000       2,049,000       5,036,000     245.8 %   6.1 %   3.0 %
                         
Interest expense     140,000       74,000       66,000     89.2 %   0.1 %   0.1 %
Other expense     102,000       28,000       74,000     264.3 %   0.1 %   0.0 %
Income from continuing operations before tax     6,843,000       1,947,000       4,896,000     251.5 %   5.9 %   2.8 %
                         
Tax provision     2,775,000       858,000       1,917,000     223.4 %   2.4 %   1.3 %
Income from continuing operations     4,068,000       1,089,000       2,979,000     273.6 %   3.5 %   1.6 %
                         
Income from discontinued operations, net of tax     -       15,000       (15,000 )   -100.0 %   0.0 %   0.0 %
Net income   $ 4,068,000     $ 1,104,000     $ 2,964,000     268.5 %   3.5 %   1.6 %