Express-1 Expedited Solutions, Inc. today reported its earnings for the second quarter, ended June 30, 2009.
During the second quarter of 2009, Express-1 Expedited Solutions, Inc. reported a net income of $288,000 compared to $774,000 for the same quarter in 2008. The Company's performance was impacted by a soft economy that resulted in a 25% reduction in total revenue as compared to the same quarter in 2008. The net income generated in the quarter was primarily attributable to operating cost reductions put in place during the first quarter. Michael R. Welch, the Company's CEO, shared these thoughts, "We are cautiously optimistic that both revenue and net income will increase for the remainder of the year as we are beginning to see increased freight volumes."
Selling, General, and Administrative costs decreased by $383,000 in the second quarter of 2009 compared to the same quarter in 2008. The second quarter represented the first period in which the full impact of these cuts was recognized and reduced the Company's overall SG&A expense from 16% of gross revenues in the first quarter of 2009 to 13.5% of gross revenues in the second quarter of 2009. "We anticipate this percentage being further reduced as the economy improves and we gain additional efficiencies. Our ability to manage our SG&A costs will continue to be a critical component of our financial strategy in 2009," stated Welch.
Express-1 Expedited Solutions, Inc. continues to maintain a strong balance sheet by successfully administering its accounts receivables. "Our support team has done a tremendous job of managing our accounts receivables; we have not realized any major write-offs during the first 6 months of 2009," said Welch. The Company's concentration of risk also remains healthy as it doesn't have any one customer that represents over 5% of its outstanding receivables. Additionally, the combined receivables of the Big Three automotive manufacturers represent only 4% of the Company's outstanding accounts receivables as of June 30, 2009.
Overall, cash flow remains healthy as the Company has additional available capacity of $4.7 million on its line of credit and no immediate capital expenditure plans. The Company remains in compliance with all of its debt covenants as of June 30, 2009.
Conference Call/Webcast Information
Management will conduct a conference call Tuesday, August 11, 2009, at 10:00 a.m. Eastern to discuss the Company's second 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 August 18, 2009. To listen to the playback, please call 877-660-6853 or 201-612-7415 for international callers. Use account number 286 and conference ID number 329293. Additionally, the webcast will be available for 12 months on the corporate website under the Vcall caption.
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, which could increase operating expenses and dilute operating margins; increased competition, which 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 | |||||
| Consolidated Balance Sheet | |||||
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(Unaudited) |
December 31, 2008 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash | $ 1,526,000 | $ 1,107,000 | |||
| Accounts receivable, net of allowances of $195,000 and $133,000, respectively | 12,340,000 | 12,202,000 | |||
| Prepaid expenses | 224,000 | 372,000 | |||
| Deferred tax asset, current | 518,000 | 493,000 | |||
| Other current assets | 472,000 | 650,000 | |||
| Total current assets | 15,080,000 | 14,824,000 | |||
| Property and equipment, net of $2,369,000 and $2,220,000 in accumulated depreciation, respectively | 2,931,000 | 3,141,000 | |||
| Goodwill | 15,602,000 | 14,915,000 | |||
| Identifiable intangible assets, net of $1,906,000 and $1,682,000 in accumulated amortization, respectively | 7,617,000 | 7,631,000 | |||
| Loans and advances | 45,000 | 63,000 | |||
| Other long term assets | 1,178,000 | 1,108,000 | |||
| Total long term assets | 27,373,000 | 26,858,000 | |||
| Total assets | $ 42,453,000 | $ 41,682,000 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ 5,483,000 | $ 6,578,000 | |||
| Accrued salaries and wages | 296,000 | 691,000 | |||
| Accrued expenses, other | 1,753,000 | 862,000 | |||
| Line of credit | 4,715,000 | - | |||
| Current maturities of long-term debt | 1,215,000 | 1,235,000 | |||
| Other current liabilities | 415,000 | 1,030,000 | |||
| Total current liabilities | 13,877,000 | 10,396,000 | |||
| Line of credit | - | 2,320,000 | |||
| Notes payable and capital leases, net of current maturities | 820,000 | 1,400,000 | |||
| Deferred tax liability, long-term | 443,000 | 583,000 | |||
| Other long-term liabilities | 401,000 | 456,000 | |||
| Total long-term liabilities | 1,664,000 | 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 and 32,215,218 shares issued; and 32,035,218 | |||||
| and 32,035,218 shares outstanding, respectively | 32,000 | 32,000 | |||
| Additional paid-in capital | 26,408,000 | 26,316,000 | |||
| Treasury stock, at cost, 180,000 shares held | (107,000 | ) | (107,000 | ) | |
| Accumulated earnings | 579,000 | 286,000 | |||
| Total stockholders' equity | 26,912,000 | 26,527,000 | |||
| $ 42,453,000 | $ 41,682,000 | ||||
| Express-1 Expedited Solutions | ||||||||
| Consolidated Statements of Operation | ||||||||
| Three Months Ended | Six Months Ended | |||||||
| June 30, 2009 | June 30, 2008 | June 30, 2009 | June 30, 2008 | |||||
| Revenues | ||||||||
| Operating revenue | $ 22,243,000 | $ 29,675,000 | $ 42,315,000 | $ 53,391,000 | ||||
| Expenses | ||||||||
| Direct expense | 18,606,000 | 24,925,000 | 35,462,000 | 44,531,000 | ||||
| Gross margin | 3,637,000 | 4,750,000 | 6,853,000 | 8,860,000 | ||||
| Sales general and administrative expense | 3,006,000 | 3,389,000 | 6,249,000 | 6,539,000 | ||||
| Operating income from continuing operations | 631,000 | 1,361,000 | 604,000 | 2,321,000 | ||||
| Other expense | 19,000 | 12,000 | 9,000 | 15,000 | ||||
| Interest expense | 26,000 | 99,000 | 48,000 | 179,000 | ||||
| Income from continuing operations before income tax | 586,000 | 1,250,000 | 547,000 | 2,127,000 | ||||
| Income tax provision | 273,000 | 509,000 | 259,000 | 856,000 | ||||
| Income from continuing operations | 313,000 | 741,000 | 288,000 | 1,271,000 | ||||
| Income (loss) from discontinued operations, net of tax | (25,000 | ) | 33,000 | 5,000 | 146,000 | |||
| Net income | $ 288,000 | $ 774,000 | $ 293,000 | $ 1,417,000 | ||||
| Basic income per share | ||||||||
| Income from continuing operations | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.05 | ||||
| Income from discontinued operations | - | - | - | - | ||||
| Net income | 0.01 | 0.02 | 0.01 | 0.05 | ||||
| Diluted income per share | ||||||||
| Income from continuing operations | 0.01 | 0.02 | 0.01 | 0.05 | ||||
| Income from discontinued operations | - | - | - | - | ||||
| Net income | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.05 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic weighted average common shares outstanding | 32,035,218 | 31,723,787 | 32,035,218 | 30,883,946 | ||||
| Diluted weighted average common shares outstanding | 32,147,648 | 32,067,972 | 32,139,842 | 31,225,376 | ||||
| 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 | ||||||||||||||||
| 2009 | 2008 | In Dollars | In Percentage | 2009 | 2008 | |||||||||||||
| Revenues | ||||||||||||||||||
| Express-1 | $ 10,090,000 | $ 14,609,000 | $ (4,519,000 | ) | -30.9 | % | 45.4 | % | 49.2 | % | ||||||||
Concert Group Logistics |
10,155,000 | 14,492,000 | (4,337,000 | ) | -29.9 | % | 45.7 | % | 48.8 | % | ||||||||
Bounce Logistics |
2,232,000 | 1,045,000 | 1,187,000 | 113.6 | % | 10.0 | % | 3.5 | % | |||||||||
| Intercompany eliminations | (234,000 | ) | (471,000 | ) | 237,000 | 50.3 | % | -1.1 | % | -1.5 | % | |||||||
| Total revenues | 22,243,000 | 29,675,000 | (7,432,000 | ) | -25.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Direct expenses | ||||||||||||||||||
| Express-1 | 7,793,000 | 11,250,000 | (3,457,000 | ) | -30.7 | % | 77.2 | % | 77.0 | % | ||||||||
Concert Group Logistics |
9,174,000 | 13,232,000 | (4,058,000 | ) | -30.7 | % | 90.3 | % | 91.3 | % | ||||||||
Bounce Logistics |
1,873,000 | 914,000 | 959,000 | 104.9 | % | 83.9 | % | 87.5 | % | |||||||||
| Intercompany eliminations | (234,000 | ) | (471,000 | ) | 237,000 | 50.3 | % | 100.0 | % | 100.0 | % | |||||||
| Total direct expenses | 18,606,000 | 24,925,000 | (6,319,000 | ) | -25.4 | % | 83.6 | % | 84.0 | % | ||||||||
| Gross margin | ||||||||||||||||||
| Express-1 | 2,297,000 | 3,359,000 | (1,062,000 | ) | -31.6 | % | 22.8 | % | 23.0 | % | ||||||||
Concert Group Logistics |
981,000 | 1,260,000 | (279,000 | ) | -22.1 | % | 9.7 | % | 8.7 | % | ||||||||
| Bounce Logistics | 359,000 | 131,000 | 228,000 | 174.0 | % | 16.1 | % | 12.5 | % | |||||||||
| Total gross margin | 3,637,000 | 4,750,000 | (1,113,000 | ) | -23.4 | % | 16.4 | % | 16.0 | % | ||||||||
| Selling, general & administrative | ||||||||||||||||||
| Express-1 | 1,600,000 | 1,918,000 | (318,000 | ) | -16.6 | % | 15.9 | % | 13.1 | % | ||||||||
Concert Group Logistics |
630,000 | 866,000 | (236,000 | ) | -27.3 | % | 6.2 | % | 6.0 | % | ||||||||
| Bounce Logistics | 273,000 | 198,000 | 75,000 | 37.9 | % | 12.2 | % | 18.9 | % | |||||||||
| Corporate | 503,000 | 407,000 | 96,000 | 23.6 | % | 2.3 | % | 1.4 | % | |||||||||
| Total selling, general & administrative | 3,006,000 | 3,389,000 | (383,000 | ) | -11.3 | % | 13.5 | % | 11.4 | % | ||||||||
| Operating income from continuing operations | ||||||||||||||||||
| Express-1 | 697,000 | 1,441,000 | (744,000 | ) | -51.6 | % | 6.9 | % | 9.9 | % | ||||||||
Concert Group Logistics |
351,000 | 394,000 | (43,000 | ) | -10.9 | % | 3.5 | % | 2.7 | % | ||||||||
| Bounce Logistics | 86,000 | (67,000 | ) | 153,000 | 228.4 | % | 3.9 | % | -6.4 | % | ||||||||
| Corporate | (503,000 | ) | (407,000 | ) | (96,000 | ) | -23.6 | % | -2.3 | % | -1.4 | % | ||||||
| Operating income from continuing operations | 631,000 | 1,361,000 | (730,000 | ) | -53.6 | % | 2.8 | % | 4.6 | % | ||||||||
| Interest expense | 26,000 | 99,000 | (73,000 | ) | -73.7 | % | 0.1 | % | 0.3 | % | ||||||||
| Other expense | 19,000 | 12,000 | 7,000 | 58.3 | % | 0.1 | % | 0.0 | % | |||||||||
| Income from continuing operations before tax | 586,000 | 1,250,000 | (664,000 | ) | -53.1 | % | 2.6 | % | 4.2 | % | ||||||||
| Tax provision | 273,000 | 509,000 | (236,000 | ) | -46.4 | % | 1.2 | % | 1.7 | % | ||||||||
| Income from continuing operations | 313,000 | 741,000 | (428,000 | ) | -57.8 | % | 1.4 | % | 2.5 | % | ||||||||
| Income (loss) from discontinued operations, net of tax | (25,000 | ) | 33,000 | (58,000 | ) | -175.8 | % | -0.1 | % | 0.1 | % | |||||||
| Net income | $ 288,000 | $ 774,000 | $ (486,000 | ) | -62.8 | % | 1.3 | % | 2.6 | % | ||||||||
| 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 | ||||||||||||||||
| 2009 | 2008 | In Dollars | In Percentage | 2009 | 2008 | |||||||||||||
| Revenues | ||||||||||||||||||
| Express-1 | $ 18,978,000 | $ 27,777,000 | $ (8,799,000 | ) | -31.7 | % | 44.8 | % | 52.0 | % | ||||||||
Concert Group Logistics |
19,794,000 | 24,963,000 | (5,169,000 | ) | -20.7 | % | 46.8 | % | 46.8 | % | ||||||||
| Bounce Logistics | 4,012,000 | 1,228,000 | 2,784,000 | 226.7 | % | 9.5 | % | 2.3 | % | |||||||||
| Intercompany eliminations | (469,000 | ) | (577,000 | ) | 108,000 | 18.7 | % | -1.1 | % | -1.1 | % | |||||||
| Total revenues | 42,315,000 | 53,391,000 | (11,076,000 | ) | -20.7 | % | 100.0 | % | 100.0 | % | ||||||||
| Direct expenses | ||||||||||||||||||
| Express-1 | 14,669,000 | 21,305,000 | (6,636,000 | ) | -31.1 | % | 77.3 | % | 76.7 | % | ||||||||
Concert Group Logistics |
17,926,000 | 22,716,000 | (4,790,000 | ) | -21.1 | % | 90.6 | % | 91.0 | % | ||||||||
| Bounce Logistics | 3,336,000 | 1,087,000 | 2,249,000 | 206.9 | % | 83.2 | % | 88.5 | % | |||||||||
| Intercompany eliminations | (469,000 | ) | (577,000 | ) | 108,000 | 18.7 | % | 100.0 | % | 100.0 | % | |||||||
| Total direct expenses | 35,462,000 | 44,531,000 | (9,069,000 | ) | -20.4 | % | 83.8 | % | 83.4 | % | ||||||||
| Gross margin | ||||||||||||||||||
| Express-1 | 4,309,000 | 6,472,000 | (2,163,000 | ) | -33.4 | % | 22.7 | % | 23.3 | % | ||||||||
Concert Group Logistics |
1,868,000 | 2,247,000 | (379,000 | ) | -16.9 | % | 9.4 | % | 9.0 | % | ||||||||
| Bounce Logistics | 676,000 | 141,000 | 535,000 | 379.4 | % | 16.8 | % | 11.5 | % | |||||||||
| Total gross margin | 6,853,000 | 8,860,000 | (2,007,000 | ) | -22.7 | % | 16.2 | % | 16.6 | % | ||||||||
| Selling, general & administrative | ||||||||||||||||||
| Express-1 | 3,452,000 | 3,780,000 | (328,000 | ) | -8.7 | % | 18.2 | % | 13.6 | % | ||||||||
Concert Group Logistics |
1,317,000 | 1,608,000 | (291,000 | ) | -18.1 | % | 6.7 | % | 6.4 | % | ||||||||
| Bounce Logistics | 549,000 | 334,000 | 215,000 | 64.4 | % | 13.7 | % | 27.2 | % | |||||||||
| Corporate | 931,000 | 817,000 | 114,000 | 14.0 | % | 2.2 | % | 1.5 | % | |||||||||
| Total selling, general & administrative | 6,249,000 | 6,539,000 | (290,000 | ) | -4.4 | % | 14.8 | % | 12.2 | % | ||||||||
| Operating income from continuing operations | ||||||||||||||||||
| Express-1 | 857,000 | 2,692,000 | (1,835,000 | ) | -68.2 | % | 4.5 | % | 9.7 | % | ||||||||
Concert Group Logistics |
551,000 | 639,000 | (88,000 | ) | -13.8 | % | 2.8 | % | 2.6 | % | ||||||||
| Bounce Logistics | 127,000 | (193,000 | ) | 320,000 | 165.8 | % | 3.2 | % | -15.7 | % | ||||||||
| Corporate | (931,000 | ) | (817,000 | ) | (114,000 | ) | -14.0 | % | -2.2 | % | -1.5 | % | ||||||
| Operating income from continuing operations | 604,000 | 2,321,000 | (1,717,000 | ) | -74.0 | % | 1.4 | % | 4.3 | % | ||||||||
| Interest expense | 48,000 | 179,000 | (131,000 | ) | -73.2 | % | 0.1 | % | 0.3 | % | ||||||||
| Other expense | 9,000 | 15,000 | (6,000 | ) | -40.0 | % | 0.0 | % | 0.0 | % | ||||||||
| Income from continuing operations before tax | 547,000 | 2,127,000 | (1,580,000 | ) | -74.3 | % | 1.3 | % | 4.0 | % | ||||||||
| Tax provision | 259,000 | 856,000 | (597,000 | ) | -69.7 | % | 0.6 | % | 1.6 | % | ||||||||
| Income from continuing operations | 288,000 | 1,271,000 | (983,000 | ) | -77.3 | % | 0.7 | % | 2.4 | % | ||||||||
| Income from discontinued operations, net of tax | 5,000 | 146,000 | (141,000 | ) | -96.6 | % | 0.0 | % | 0.3 | % | ||||||||
| Net income | $ 293,000 | $ 1,417,000 | $ (1,124,000 | ) | -79.3 | % | 0.7 | % | 2.7 | % | ||||||||
