XPO Reports Fourth Quarter Revenue Growth of 27%

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

In the fourth quarter, preliminary 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, preliminary 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.

“We continue to see the positive results of expanding our customer base and managing our cost structure. Our integration of LRG International in the fourth quarter has been smooth and positions us for continued international growth,” commented Michael R. Welch, the Company’s CEO.

XPO to present at this week’s BB&T Conference

Express-1 Expedited Solutions is pleased to announce that they will be presenting at the BB&T Capital Markets Transportation Services Conference held at the Biltmore Hotel in Coral Cables, Florida on February 10, 2010. The preliminary unaudited earnings are being issued to facilitate communications with investors at this conference.

Updated final earnings announcement date

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 Sheet
             
    (Unaudited)        
    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     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     16,772,000       14,915,000  
Identifiable intangible assets, net of $2,198,000 and $1,682,000 in accumulated amortization, respectively     9,525,000       7,631,000  
Loans and advances     30,000       63,000  
Other long term assets     1,044,000       1,108,000  
    $ 49,202,000     $ 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     1,156,000       583,000  
Other long-term liabilities     1,365,000       456,000  
Total long-term liabilities     2,734,000       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 shares authorized; 32, 215,218 issued and 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 )
Retained earnings     1,991,000       286,000  
Total stockholders' equity     28,404,000       26,527,000  
    $ 49,202,000     $ 41,682,000  

 

                 
Express-1 Expedited Solutions, Inc.
Consolidated Statements of Operations
                 
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,   December 31,   December 31,
    2009   2008   2009   2008
    (Unaudited)       (Unaudited)    
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     0.01     0.00     0.01
Net income     0.02     0.03     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     0.01     0.00     0.01
Net income     0.02     0.03     0.05     0.10
                 
Weighted average common shares outstanding                
Basic weighted average common shares outstanding     32,035,218     31,949,262     32,035,218     31,453,675
Diluted weighted average common shares outstanding     32,270,463     32,318,995     32,167,447     31,757,164

 

                         
Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended December 31, 2009 and 2008
                         
    Quarter to Date   Quarter to Quarter Change   Percent of Revenue
    2009   2008   In Dollars   In Percentage   2009   2008
    (Unaudited)     (Unaudited)     (Unaudited)  
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 Tables
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
    (Unaudited)       (Unaudited)       (Unaudited)    
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 %