XPO Positioned for Continued Growth in 2010

Express-1 Expedited Solutions, Inc. (XPO) today reported its audited earnings for the fourth quarter ended December 31, 2009.

In the fourth quarter, revenue from continuing operations increased by 27% to $31.6 million compared to $25.0 million in the fourth quarter of 2008. The acquisition of LRG International, Inc. on October 1, 2009 contributed $1.9 million to revenue for the quarter.

During the same period, income from continuing operations improved 17% to $601,000 or $0.02 per fully diluted share compared to $514,000 or $0.02 per diluted share for the fourth quarter of 2008. The fourth quarter results of 2009 include a charge of $400,000 for claims expense that exceeded the Company’s insurance limit, a first time occurrence in the Company’s history.

“The Company was able to adapt to the extremely weak economy during the first half of the year. As business improved, we strategically added key personnel to help us grow in 2010 and beyond.” commented Michael R. Welch, the Company’s CEO.

Investor Conference Call

Management will conduct a conference call Thursday, February 25, 2010 at 10:00 a.m. EST 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 March 4, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 344752.

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
         
    December 31, 2009   December 31, 2008
Assets        
Current assets:        
Cash   $ 495,000     $ 1,107,000  
Accounts receivable, net of allowances of $225,000 and $133,000, respectively   17,569,000     12,202,000  
Prepaid expenses   158,000     372,000  
Deferred tax asset, current   353,000     493,000  
Other current assets   459,000     650,000  
Total current assets   19,034,000     14,824,000  
         
Property and equipment, net of $2,651,000 and $2,220,000 in accumulated depreciation, respectively   2,797,000     3,141,000  
Goodwill   16,959,000     14,915,000  
Identified intangible assets, net of $2,198,000 and $1,682,000 in accumulated amortization, respectively   9,175,000     7,631,000  
Loans and advances   30,000     63,000  
Other long-term assets   1,044,000     1,108,000  
Total long-term assets   30,005,000     26,858,000  
Total assets   $ 49,039,000     $ 41,682,000  
         
Liabilities and Stockholders' Equity        
Current liabilities:        
Accounts payable   $ 6,769,000     $ 6,578,000  
Accrued salaries and wages   310,000     691,000  
Accrued expenses, other   2,272,000     862,000  
Line of credit   6,530,000     -  
Current maturities of long-term debt   1,215,000     1,235,000  
Other current liabilities   968,000     1,030,000  
Total current liabilities   18,064,000     10,396,000  
         
Line of credit   -     2,320,000  
Notes payable and capital leases, net of current maturities   213,000     1,400,000  
Deferred tax liability, long-term   1,156,000     583,000  
Other long-term liabilities   1,202,000     456,000  
Total long-term liabilities   2,571,000     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 shares issued; and 32,035,218 shares outstanding 32,000     32,000  
Additional paid-in capital   26,488,000     26,316,000  
Treasury stock, at cost, 180,000 shares held   (107,000 )   (107,000 )
Accumulated earnings   1,991,000     286,000  
Total stockholders’ equity   28,404,000     26,527,000  
Total liabilities and stockholders' equity   $ 49,039,000     $ 41,682,000  

 

               
Express-1 Expedited Solutions, Inc.
Consolidated Statements of Operations
               
 

Three Months Ended - Unaudited

  Twelve Months Ended
  December 31, 2009   December 31, 2008   December 31, 2009   December 31, 2008
Revenues              
Operating revenue $ 31,610,000   $ 24,954,000   $ 100,136,000   $ 109,462,000
Expenses              
Direct expense 26,452,000   20,933,000   83,396,000   91,628,000
Gross margin 5,158,000   4,021,000   16,740,000   17,834,000
               
Sales general and administrative expense 4,036,000   2,977,000   13,569,000   12,664,000
Operating income from continuing operations 1,122,000   1,044,000   3,171,000   5,170,000
               
Other expense 23,000   69,000   51,000   105,000
Interest expense 31,000   81,000   105,000   354,000
Income from continuing operations before income tax 1,068,000   894,000   3,015,000   4,711,000
               
Income tax provision 467,000   380,000   1,325,000   1,894,000
Income from continuing operations 601,000   514,000   1,690,000   2,817,000
Income from discontinued operations, net of tax -   73,000   15,000   339,000
Net income $ 601,000   $ 587,000   $ 1,705,000   $ 3,156,000
               
               
               
Basic income per share              
Income from continuing operations 0.02   0.02   0.05   0.09
Income from discontinued operations 0.00   0.00   0.00   0.01
Net income 0.02   0.02   0.05   0.10
               
Diluted income per share              
Income from continuing operations 0.02   0.02   0.05   0.09
Income from discontinued operations 0.00   0.00   0.00   0.01
Net income 0.02   0.02   0.05   0.10
               
Weighted average common shares outstanding              
Basic weighted average common shares outstanding 32,035,218   32,035,247   32,035,218   31,453,765
Diluted weighted average common shares outstanding 32,270,463   32,212,725   32,167,447   31,757,164

 

                         
Express-1 Expedited Solutions, Inc.
Summary Financial Table

For the Three Months Ended December 31, 2009 and 2008 - Unaudited

                         
    Quarter to Date   Quarter to Quarter Change   Percent of Revenue
    2009   2008   Change   % Change   2009   2008
Revenues                        
Express-1   $ 16,960,000     $ 10,675,000     $ 6,285,000     58.9 %   53.7 %   42.8 %

Concert Group Logistics

  12,423,000     11,832,000     591,000     5.0 %   39.3 %   47.4 %
Bounce Logistics   3,336,000     2,770,000     566,000     20.4 %   10.6 %   11.1 %
Intercompany eliminations   (1,109,000 )   (323,000 )   (786,000 )   -243.3 %   -3.6 %   -1.3 %
Total revenues   31,610,000     24,954,000     6,656,000     26.7 %   100.0 %   100.0 %
                         
Direct expenses                        
Express-1   13,775,000     8,263,000     5,512,000     66.7 %   81.2 %   77.4 %

Concert Group Logistics

  11,027,000     10,735,000     292,000     2.7 %   88.8 %   90.7 %
Bounce Logistics   2,759,000     2,258,000     501,000     22.2 %   82.7 %   81.5 %
Intercompany eliminations   (1,109,000 )   (323,000 )   (786,000 )   -243.3 %   100.0 %   100.0 %
Total Direct expenses   26,452,000     20,933,000     5,519,000     26.4 %   83.7 %   83.9 %
                         
Gross margin                        
Express-1   3,185,000     2,412,000     773,000     32.0 %   18.8 %   22.6 %

Concert Group Logistics

  1,396,000     1,097,000     299,000     27.3 %   11.2 %   9.3 %
Bounce Logistics   577,000     512,000     65,000     12.7 %   17.3 %   18.5 %
Total gross margin   5,158,000     4,021,000     1,137,000     28.3 %   16.3 %   16.1 %
                         
Selling, general & administrative                        
Express-1   2,003,000     1,728,000     275,000     15.9 %   11.8 %   16.2 %

Concert Group Logistics

  1,113,000     525,000     588,000     112.0 %   9.0 %   4.4 %
Bounce Logistics   427,000     355,000     72,000     20.3 %   12.8 %   12.8 %
Corporate   493,000     369,000     124,000     33.6 %   1.6 %   1.5 %
Total selling, general & administrative   4,036,000     2,977,000     1,059,000     35.6 %   12.8 %   11.9 %
                         
Operating income from continuing operations                        
Express-1   1,182,000     684,000     498,000     72.8 %   7.0 %   6.4 %

Concert Group Logistics

  283,000     572,000     (289,000 )   -50.5 %   2.3 %   4.8 %
Bounce Logistics   150,000     157,000     (7,000 )   -4.5 %   4.5 %   5.7 %
Corporate   (493,000 )   (369,000 )   (124,000 )   -33.6 %   -1.6 %   -1.5 %
Operating income from continuing operations   1,122,000     1,044,000     78,000     7.5 %   3.5 %   4.2 %
                         
Interest expense   31,000     81,000     (50,000 )   -61.7 %   0.1 %   0.3 %
Other expense   23,000     69,000     (46,000 )   -66.7 %   0.0 %   0.3 %
Income from continuing operations before tax   1,068,000     894,000     174,000     19.5 %   3.4 %   3.6 %
                         
Tax provision   467,000     380,000     87,000     22.9 %   1.5 %   1.5 %
Income from continuing operations   601,000     514,000     87,000     16.9 %   1.9 %   2.1 %
                         
Income from discontinued operations, net of tax   -     73,000     (73,000 )   -100.0 %   0.0 %   0.3 %
Net income   $ 601,000     $ 587,000     $ 14,000     2.4 %   1.9 %   2.4 %

 

 
Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Twelve Months Ended December 31, 2009 and 2008
                         
    Year to Date   Year to Year Change   Percent of Revenue
    2009   2008   Change   % Change   2009   2008
Revenues                        
Express-1   $ 50,642,000   $ 52,639,000   $ (1,997,000)   -3.8%   50.6%   48.1%

Concert Group Logistics

  41,162,000   51,136,000   (9,974,000)   -19.5%   41.1%   46.7%
Bounce Logistics   10,425,000   7,011,000   3,414,000   48.7%   10.4%   6.4%
Intercompany eliminations   (2,093,000)   (1,324,000)   (769,000)   -58.1%   -2.1%   -1.2%
Total revenues   100,136,000   109,462,000   (9,326,000)   -8.5%   100.0%   100.0%
                         
Direct expenses                        
Express-1   39,874,000   40,408,000   (534,000)   -1.3%   78.7%   76.8%

Concert Group Logistics

  36,979,000   46,578,000   (9,599,000)   -20.6%   89.8%   91.1%
Bounce Logistics   8,636,000   5,966,000   2,670,000   44.8%   82.8%   85.1%
Intercompany eliminations   (2,093,000)   (1,324,000)   (769,000)   -58.1%   100.0%   100.0%
Total Direct expenses   83,396,000   91,628,000   (8,232,000)   -9.0%   83.3%   83.7%
                         
Gross margin                        
Express-1   10,768,000   12,231,000   (1,463,000)   -12.0%   21.3%   23.2%

Concert Group Logistics

  4,183,000   4,558,000   (375,000)   -8.2%   10.2%   8.9%
Bounce Logistics   1,789,000   1,045,000   744,000   71.2%   17.2%   14.9%
Total gross margin   16,740,000   17,834,000   (1,094,000)   -6.1%   16.7%   16.3%
                         
Selling, general & administrative                        
Express-1   7,322,000   7,116,000   206,000   2.9%   14.5%   13.5%

Concert Group Logistics

  3,062,000   2,847,000   215,000   7.6%   7.4%   5.6%
Bounce Logistics   1,331,000   1,079,000   252,000   23.4%   12.8%   15.4%
Corporate   1,854,000   1,622,000   232,000   14.3%   1.9%   1.5%
Total selling, general & administrative   13,569,000   12,664,000   905,000   7.1%   13.5%   11.6%
                         
Operating income from continuing operations                        
Express-1   3,446,000   5,115,000   (1,669,000)   -32.6%   6.8%   9.7%

Concert Group Logistics

  1,121,000   1,711,000   (590,000)   -34.5%   2.7%   3.3%
Bounce Logistics   458,000   (34,000)   492,000   1447.1%   4.4%   -0.5%
Corporate   (1,854,000)   (1,622,000)   (232,000)   -14.3%   -1.9%   -1.5%
Operating income from continuing operations   3,171,000   5,170,000   (1,999,000)   -38.7%   3.2%   4.7%
                         
Interest expense   105,000   354,000   (249,000)   -70.3%   0.1%   0.3%
Other expense   51,000   105,000   (54,000)   -51.4%   0.1%   0.1%
Income from continuing operations before tax   3,015,000   4,711,000   (1,696,000)   -36.0%   3.0%   4.3%
                         
Tax provision   1,325,000   1,894,000   (569,000)   -30.0%   1.3%   1.7%
Income from continuing operations   1,690,000   2,817,000   (1,127,000)   -40.0%   1.7%   2.6%
                         
Income from discontinued operations, net of tax   15,000   339,000   (324,000)   -95.6%   0.0%   0.3%
Net income   $ 1,705,000   $ 3,156,000   $ (1,451,000)   -46.0%   1.7%   2.9%