XPO Delivers 58% Revenue Growth

Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the first quarter ended March 31, 2010.

For the quarter, revenue from continuing operations increased by 58% to $31.6 million compared to $20.1 million in the first quarter of 2009. Recently acquired LRG International, Inc., contributed $2.1 million in revenue for the quarter.

During the same period, operating income from continuing operations improved by $1.6 million to $1.5 million or $0.03 per fully diluted share compared to a loss of $27,000 for the first quarter of 2009.

“2009 was a year of focusing on a strategic plan that we hoped would prepare us for 2010. The first quarter results have validated last year’s efforts and have prepared us to thrive in an improved economy. We look forward to continued strong results for the remainder of 2010,” commented Michael R. Welch, the Company’s CEO.

“Mike and his team have stayed focused on the strategic plan and I believe our results are proof of his commitment. I feel very positive that he and his team will continue this growth through 2010,” stated James Martell, Chairman of the Board of Directors.

Investor Conference Call

Management will conduct a conference call Thursday, May 13, 2010 at 10:00 a.m. EST to discuss the Company’s fourth 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 May 20, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 349231. 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)    
    March 31, 2010   December 31, 2009
ASSETS        
Current assets:        
Cash   $ 920,000     $ 495,000  
Accounts receivable, net of allowances of $171,000 and $225,000 respectively     17,668,000       17,569,000  
Prepaid expenses     480,000       158,000  
Deferred tax asset, current     413,000       353,000  
Other current assets     356,000       459,000  
Total current assets     19,837,000       19,034,000  
         
Property and equipment, net of $2,802,000 and $2,651,000 in accumulated depreciation, respectively     2,695,000       2,797,000  
Goodwill     16,959,000       16,959,000  
Identifiable intangible assets, net of $2,355,000 and $2,198,000 in accumulated amortization, respectively     9,018,000       9,175,000  
Loans and advances     177,000       30,000  
Other long-term assets     1,067,000       1,044,000  
Total long term assets     29,916,000       30,005,000  
Total assets   $ 49,753,000     $ 49,039,000  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable   $ 7,215,000     $ 6,769,000  
Accrued salaries and wages     325,000       310,000  
Accrued expenses, other     3,715,000       2,272,000  
Line of credit     -       6,530,000  
Current maturities of notes payable and capital leases     1,678,000       1,215,000  
Other current liabilities     378,000       968,000  
Total current liabilities     13,311,000       18,064,000  
         
         
Line of credit     1,521,000       -  
Notes payable and capital leases, net of current maturities     3,346,000       213,000  
Deferred tax liability, long-term     1,460,000       1,156,000  
Other long-term liabilities     847,000       1,202,000  
Total long-term liabilities     7,174,000       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; 32,215,218 shares issued;        
and 32,035,218 shares outstanding     32,000       32,000  
Additional paid-in capital     26,518,000       26,488,000  
Treasury stock, at cost, 180,000 shares held     (107,000 )     (107,000 )
Accumulated earnings     2,825,000       1,991,000  
Total stockholders' equity     29,268,000       28,404,000  
Total liabilities and stockholders' equity   $ 49,753,000     $ 49,039,000  

 

Express-1 Expedited Solutions, Inc.

Consolidated Statements of Operations

(Unaudited)

         
    Three Months Ended
    March 31, 2010   March 31, 2009
Revenues        
Operating revenue   $ 31,642,000   $ 20,072,000  
Expenses        
Direct expense     26,043,000     16,856,000  
Gross margin     5,599,000     3,216,000  
Sales general and administrative expense     4,075,000     3,243,000  
Operating income (loss) from continuing operations     1,524,000     (27,000 )
Other expense (income)     20,000     (10,000 )
Interest expense     20,000     22,000  
Income (loss) from continuing operations before income tax     1,484,000     (39,000 )
Income tax provision (benefit)     650,000     (14,000 )
Income (loss) from continuing operations     834,000     (25,000 )
Income from discontinued operations, net of tax     -     30,000  
Net income   $ 834,000   $ 5,000  
         
         
         
Basic income per share        
Income from continuing operations   $ 0.03   $ -  
Income from discontinued operations     -     -  
Net income     0.03     -  
Diluted income per share        
Income from continuing operations     0.03     -  
Income from discontinued operations     -     -  
Net income   $ 0.03   $ -  
Weighted average common shares outstanding        
Basic weighted average common shares outstanding     32,035,218     32,035,218  
Diluted weighted average common shares outstanding     32,577,352     32,150,601  

 

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
    2010   2009   In Dollars   In Percentage   2010   2009
Revenues                        
Express-1   $ 16,212,000     $ 8,888,000     $ 7,324,000     82.4 %   51.2 %   44.3 %
Concert Group Logistics     12,938,000       9,639,000       3,299,000     34.2 %   40.9 %   48.0 %
Bounce Logistics     3,123,000       1,780,000       1,343,000     75.4 %   9.9 %   8.9 %
Intercompany eliminations     (631,000 )     (235,000 )     (396,000 )   -168.5 %   -2.0 %   -1.2 %
Total revenues     31,642,000       20,072,000       11,570,000     57.6 %   100.0 %   100.0 %
                         
Direct expenses                        
Express-1     12,542,000       6,876,000       5,666,000     82.4 %   77.4 %   77.4 %
Concert Group Logistics     11,528,000       8,752,000       2,776,000     31.7 %   89.1 %   90.8 %
Bounce Logistics     2,604,000       1,463,000       1,141,000     78.0 %   83.4 %   82.2 %
Intercompany eliminations     (631,000 )     (235,000 )     (396,000 )   -168.5 %   100.0 %   100.0 %
Total direct expenses     26,043,000       16,856,000       9,187,000     54.5 %   82.3 %   84.0 %
                         
Gross margin                        
Express-1     3,670,000       2,012,000       1,658,000     82.4 %   22.6 %   22.6 %
Concert Group Logistics     1,410,000       887,000       523,000     59.0 %   10.9 %   9.2 %
Bounce Logistics     519,000       317,000       202,000     63.7 %   16.6 %   17.8 %
Total gross margin     5,599,000       3,216,000       2,383,000     74.1 %   17.7 %   16.0 %
                         
Selling, general & administrative                        
Express-1     2,021,000       1,852,000       169,000     9.1 %   12.5 %   20.8 %
Concert Group Logistics     1,154,000       687,000       467,000     68.0 %   8.9 %   7.1 %
Bounce Logistics     422,000       276,000       146,000     52.9 %   13.5 %   15.5 %
Corporate     478,000       428,000       50,000     11.7 %   1.5 %   2.1 %
Total selling, general & administrative     4,075,000       3,243,000       832,000     25.7 %   12.9 %   16.2 %
                         
Operating income from continuing operations                      
Express-1     1,649,000       160,000       1,489,000     930.6 %   10.2 %   1.8 %
Concert Group Logistics     256,000       200,000       56,000     28.0 %   2.0 %   2.1 %
Bounce Logistics     97,000       41,000       56,000     136.6 %   3.1 %   2.3 %
Corporate     (478,000 )     (428,000 )     (50,000 )   -11.7 %   -1.5 %   -2.1 %
Operating income from continuing operations     1,524,000       (27,000 )     1,551,000     5744.4 %   4.8 %   -0.1 %
                         
Interest expense     20,000       22,000       (2,000 )   -9.1 %   0.1 %   0.1 %
Other expense     20,000       (10,000 )     30,000     300.0 %   0.1 %   0.0 %
Income from continuing operations before tax     1,484,000       (39,000 )     1,523,000  

 

3905.1 %   4.7 %   -0.2 %
                         
Tax provision     650,000       (14,000 )     664,000     4742.9 %   2.1 %   -0.1 %
Income from continuing operations     834,000       (25,000 )     859,000     3436.0 %   2.6 %   -0.1 %
                         
Income from discontinued operations, net of tax     -       30,000       (30,000 )   -100.0 %   0.0 %   0.1 %
Net income   $ 834,000     $ 5,000     $ 829,000     16580.0 %   2.6 %   0.0 %