XPO Revenues Increase by 81% in Second Quarter

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

For the quarter, revenue from continuing operations increased by 81% to $40.3 million compared to $22.2 million in the second quarter of 2009. Additionally, year over year revenues increased by 70.1% to $72.0 million compared to $42.3 million in the initial six months of 2009.

For the quarter, net income improved by $1.2 million to $1.5 million, or $.05 per fully diluted share compared to income of $288,000 in the second quarter of 2009. Year to date net income improved by $2.0 million to $2.3 million or $.07 per fully diluted share compared to net income of $293,000 in the comparable period in 2009.

“I am extremely pleased with our second quarter results. This is a great accomplishment for our team who has been instrumental in delivering quality solutions to our customers. Obviously, we are very excited about the remainder of the year and look forward to a strong finish in the second half of 2010,” commented Mike Welch, the Company’s CEO.

“I continue to be impressed with Mike and his team’s ability to thrive in this economic environment, and produce these outstanding results,” stated James Martell, Chairman of XPO.

Investor Conference Call

Management will conduct a conference call on Thursday, August 12, 2010 at 10:00 a.m. EDT to discuss the Company’s second 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 August 19, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 355058. 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)    
    June 30, 2010   December 31, 2009
ASSETS        
Current assets:        
Cash   $ 280,000     $ 495,000  
Accounts receivable, net of allowances of $225,000 and $225,000 respectively     23,314,000       17,569,000  
Prepaid expenses     472,000       158,000  
Deferred tax asset, current     129,000       353,000  
Other current assets     459,000       459,000  
Total current assets     24,654,000       19,034,000  
         
Property and equipment, net of $2,956,000 and $2,651,000 in accumulated depreciation, respectively     2,642,000       2,797,000  
Goodwill     16,959,000       16,959,000  
Identifiable intangible assets, net of $2,512,000 and $2,198,000 in accumulated amortization, respectively     8,861,000       9,175,000  
Loans and advances     173,000       30,000  
Other long-term assets     820,000       1,044,000  
Total long term assets     29,455,000       30,005,000  
Total assets   $ 54,109,000     $ 49,039,000  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 8,874,000     $ 6,769,000  
Accrued salaries and wages     869,000       310,000  
Accrued expenses, other     3,590,000       2,272,000  
Line of credit     -       6,530,000  
Current maturities of notes payable and capital leases     1,674,000       1,215,000  
Other current liabilities     473,000       968,000  
Total current liabilities     15,480,000       18,064,000  
         
         
Line of credit     2,089,000       -  
Notes payable and capital leases, net of current maturities     2,929,000       213,000  
Deferred tax liability, long-term     1,559,000       1,156,000  
Other long-term liabilities     808,000       1,202,000  
Total long-term liabilities     7,385,000       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; 32,541,884 and 32,215,218 shares issued,        
respectively; and 32,361,884 and 32,035,218 shares outstanding, respectively     33,000       32,000  
Additional paid-in capital     26,989,000       26,488,000  
Treasury stock, at cost, 180,000 shares held     (107,000 )     (107,000 )
Accumulated earnings     4,329,000       1,991,000  
Total stockholders' equity     31,244,000       28,404,000  
Total liabilities and stockholders' equity   $ 54,109,000     $ 49,039,000  
         

 

Express-1 Expedited Solutions, Inc.

Consolidated Statements of Operations

(Unaudited)

         
    Three Months Ended   Six Months Ended
    June 30, 2010   June 30, 2009   June 30, 2010   June 30, 2009
Revenues                
Operating revenue   $ 40,340,000   $ 22,243,000     $ 71,982,000   $ 42,315,000
Expenses                
Direct expense     33,101,000     18,606,000       59,144,000     35,462,000
Gross margin     7,239,000     3,637,000       12,838,000     6,853,000
Sales general and administrative expense     4,598,000     3,006,000       8,673,000     6,249,000
Operating income from continuing operations     2,641,000     631,000       4,165,000     604,000
Other expense     34,000     19,000       54,000     9,000
Interest expense     88,000     26,000       108,000     48,000
Income from continuing operations before income tax     2,519,000     586,000       4,003,000     547,000
Income tax provision     1,015,000     273,000       1,665,000     259,000
Income from continuing operations     1,504,000     313,000       2,338,000     288,000
Income (loss) from discontinued operations, net of tax     -     (25,000 )     -     5,000
Net income   $ 1,504,000   $ 288,000     $ 2,338,000   $ 293,000
                 
                 
Basic income per share                
Income from continuing operations   $ 0.05   $ 0.01     $ 0.07   $ 0.01
Income from discontinued operations     -     -       -     -
Net income     0.05     0.01       0.07     0.01
Diluted income per share                
Income from continuing operations     0.05     0.01       0.07     0.01
Income from discontinued operations     -     -       -     -
Net income   $ 0.05   $ 0.01     $ 0.07   $ 0.01
Weighted average common shares outstanding                
Basic weighted average common shares outstanding     32,044,116     32,035,218       32,039,706     32,035,218
Diluted weighted average common shares outstanding     32,645,399     32,147,648       32,602,367     32,139,842
                           

 

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended June 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     $ 20,557,000     $ 10,090,000     $ 10,467,000     103.7 %   51.0 %   45.4 %
Concert Group Logistics     16,074,000       10,155,000       5,919,000     58.3 %   39.8 %   45.7 %
Bounce Logistics     4,675,000       2,232,000       2,443,000     109.5 %   11.6 %   10.0 %
Intercompany eliminations     (966,000 )     (234,000 )     (732,000 )   -312.8 %   -2.4 %   -1.1 %
Total revenues     40,340,000       22,243,000       18,097,000     81.4 %   100.0 %   100.0 %
                           
Direct expenses                        
Express-1       15,720,000       7,793,000       7,927,000     101.7 %   76.5 %   77.2 %
Concert Group Logistics     14,426,000       9,174,000       5,252,000     57.2 %   89.7 %   90.3 %
Bounce Logistics     3,921,000       1,873,000       2,048,000     109.3 %   83.9 %   83.9 %
Intercompany eliminations     (966,000 )     (234,000 )     (732,000 )   -312.8 %   100.0 %   100.0 %
Total direct expenses     33,101,000       18,606,000       14,495,000     77.9 %   82.1 %   83.6 %
                           
Gross margin                        
Express-1       4,837,000       2,297,000       2,540,000     110.6 %   23.5 %   22.8 %
Concert Group Logistics     1,648,000       981,000       667,000     68.0 %   10.3 %   9.7 %
Bounce Logistics     754,000       359,000       395,000     110.0 %   16.1 %   16.1 %
Total gross margin     7,239,000       3,637,000       3,602,000     99.0 %   17.9 %   16.4 %
                           
Selling, general & administrative                        
Express-1       2,355,000       1,600,000       755,000     47.2 %   11.5 %   15.9 %
Concert Group Logistics     1,093,000       630,000       463,000     73.5 %   6.8 %   6.2 %
Bounce Logistics     613,000       273,000       340,000     124.5 %   13.1 %   12.2 %
Corporate       537,000       503,000       34,000     6.8 %   1.3 %   2.3 %
Total selling, general & administrative     4,598,000       3,006,000       1,592,000     53.0 %   11.4 %   13.5 %
                           
Operating income from continuing operations                      
Express-1       2,482,000       697,000       1,785,000     256.1 %   12.1 %   6.9 %
Concert Group Logistics     555,000       351,000       204,000     58.1 %   3.5 %   3.5 %
Bounce Logistics     141,000       86,000       55,000     64.0 %   3.0 %   3.9 %
Corporate       (537,000 )     (503,000 )     (34,000 )   -6.8 %   -1.3 %   -2.3 %
Operating income from continuing operations     2,641,000       631,000       2,010,000     -318.5 %   6.5 %   2.8 %
                           
Interest expense     88,000       26,000       62,000     238.5 %   0.2 %   0.1 %
Other expense     34,000       19,000       15,000     -78.9 %   0.1 %   0.1 %
Income from continuing operations before tax     2,519,000       586,000       1,933,000     -329.9 %   6.2 %   2.6 %
                           
Tax provision     1,015,000       273,000       742,000     -271.8 %   2.5 %   1.2 %
Income from continuing operations     1,504,000       313,000       1,191,000     -380.5 %   3.7 %   1.4 %
                           
Loss from discontinued operations, net of tax     -       (25,000 )     25,000     -100.0 %   0.0 %   -0.1 %
Net income   $ 1,504,000     $ 288,000     $ 1,216,000     422.2 %   3.7 %   1.3 %
                                           

 

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Six Months Ended June 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     $ 36,769,000     $ 18,978,000     $ 17,791,000     93.7 %   51.1 %   44.8 %
Concert Group Logistics     29,012,000       19,794,000       9,218,000     46.6 %   40.3 %   46.8 %
Bounce Logistics     7,798,000       4,012,000       3,786,000     94.4 %   10.8 %   9.5 %
Intercompany eliminations     (1,597,000 )     (469,000 )     (1,128,000 )   -240.5 %   -2.2 %   -1.1 %
Total revenues     71,982,000       42,315,000       29,667,000     70.1 %   100.0 %   100.0 %
                           
Direct expenses                        
Express-1       28,262,000       14,669,000       13,593,000     92.7 %   76.9 %   77.3 %
Concert Group Logistics     25,954,000       17,926,000       8,028,000     44.8 %   89.5 %   90.6 %
Bounce Logistics     6,525,000       3,336,000       3,189,000     95.6 %   83.7 %   83.2 %
Intercompany eliminations     (1,597,000 )     (469,000 )     (1,128,000 )   -240.5 %   100.0 %   100.0 %
Total direct expenses     59,144,000       35,462,000       23,682,000     66.8 %   82.2 %   83.8 %
                           
Gross margin                        
Express-1       8,507,000       4,309,000       4,198,000     97.4 %   23.1 %   22.7 %
Concert Group Logistics     3,058,000       1,868,000       1,190,000     63.7 %   10.5 %   9.4 %
Bounce Logistics     1,273,000       676,000       597,000     88.3 %   16.3 %   16.8 %
Total gross margin     12,838,000       6,853,000       5,985,000     87.3 %   17.8 %   16.2 %
                           
Selling, general & administrative                        
Express-1       4,376,000       3,452,000       924,000     26.8 %   11.9 %   18.2 %
Concert Group Logistics     2,247,000       1,317,000       930,000     70.6 %   7.7 %   6.7 %
Bounce Logistics     1,035,000       549,000       486,000     88.5 %   13.3 %   13.7 %
Corporate       1,015,000       931,000       84,000     9.0 %   1.4 %   2.2 %
Total selling, general & administrative     8,673,000       6,249,000       2,424,000     38.8 %   12.0 %   14.8 %
                           
Operating income from continuing operations                    
Express-1       4,131,000       857,000       3,274,000     382.0 %   11.2 %   4.5 %
Concert Group Logistics     811,000       551,000       260,000     47.2 %   2.8 %   2.8 %
Bounce Logistics     238,000       127,000       111,000     -87.4 %   3.1 %   3.2 %
Corporate       (1,015,000 )     (931,000 )     (84,000 )   -9.0 %   -1.4 %   -2.2 %
Operating income from continuing operations     4,165,000       604,000       3,561,000     589.6 %   5.8 %   1.4 %
                           
Interest expense     108,000       48,000       60,000     125.0 %   0.2 %   0.1 %
Other expense     54,000       9,000       45,000     500.0 %   0.1 %   0.0 %
Income from continuing operations before tax     4,003,000       547,000       3,456,000     631.8 %   5.6 %   1.3 %
                           
Tax provision     1,665,000       259,000       1,406,000     542.9 %   2.3 %   0.6 %
Income from continuing operations     2,338,000       288,000       2,050,000     711.8 %   3.2 %   0.7 %
                           
Income from discontinued operations, net of tax     -       5,000       (5,000 )   -100.0 %   0.0 %   0.0 %
Net income   $ 2,338,000     $ 293,000     $ 2,045,000     698.0 %   3.2 %   0.7 %