Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the third quarter ended September 30, 2010.
For the quarter, revenue from continuing operations increased by 70% to $44.4 million compared to $26.2 million in the third quarter of 2009. Additionally, year over year revenues also increased by 70% to $116.4 million compared to $68.5 million in the initial nine months of 2009.
For the quarter, net income improved by $919,000 to $1.7 million, or $.05 per fully diluted share compared to income of $811,000 in the third quarter of 2009. Year to date net income improved by $3.0 million to $4.1 million or $.12 per fully diluted share compared to net income of $1.1 million in the comparable period in 2009.
"2010 continues to be a breakout year for Express-1 Expedited Solutions and I couldn't be happier about our strong financial results in what we consider very unsure economic times. We continue to believe that we are well positioned as we look to the immediate future. Again, I would like to thank our employees for their leadership and hard work as we continue to proactively meet and respond to the challenges in our industry," commented Mike Welch, the Company's CEO.
"Express-1's numbers continue to speak for themselves in 2010. Mike and his team have much to be excited about as we continue to emerge from the recession," stated James Martell, Chairman of XPO.
Investor Conference Call
Management will conduct a conference call on Monday, November 15, 2010 at 10:00 a.m. EST to discuss the Company's third 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 November 19, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 360349. 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.
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Express-1 Expedited Solutions, Inc. |
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Consolidated Balance Sheets |
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| (Unaudited) | ||||||||
| September 30, 2010 | December 31, 2009 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 951,000 | $ | 495,000 | ||||
| Accounts receivable, net of allowances of $302,000 and $225,000, respectively | 26,282,000 | 17,569,000 | ||||||
| Prepaid expenses | 430,000 | 158,000 | ||||||
| Deferred tax asset, current | 169,000 | 353,000 | ||||||
| Other current assets | 554,000 | 459,000 | ||||||
| Total current assets | 28,386,000 | 19,034,000 | ||||||
| Property and equipment, net of $3,116,000 and $2,651,000 in accumulated depreciation, respectively | 2,806,000 | 2,797,000 | ||||||
| Goodwill | 16,959,000 | 16,959,000 | ||||||
| Identifiable intangible assets, net of $2,669,000 and $2,198,000 in accumulated amortization, respectively | 8,704,000 | 9,175,000 | ||||||
| Loans and advances | 162,000 | 30,000 | ||||||
| Other long-term assets | 735,000 | 1,044,000 | ||||||
| Total long-term assets | 29,366,000 | 30,005,000 | ||||||
| Total assets | $ | 57,752,000 | $ | 49,039,000 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,780,000 | $ | 6,769,000 | ||||
| Accrued salaries and wages | 1,218,000 | 310,000 | ||||||
| Accrued expenses, other | 3,469,000 | 2,272,000 | ||||||
| Line of credit | - | 6,530,000 | ||||||
| Current maturities of notes payable and capital leases | 1,671,000 | 1,215,000 | ||||||
| Other current liabilities | 495,000 | 968,000 | ||||||
| Total current liabilities | 15,633,000 | 18,064,000 | ||||||
| Line of credit | 4,073,000 | - | ||||||
| Notes payable and capital leases, net of current maturities | 2,513,000 | 213,000 | ||||||
| Deferred tax liability, long-term | 1,630,000 | 1,156,000 | ||||||
| Other long-term liabilities | 841,000 | 1,202,000 | ||||||
| Total long-term liabilities | 9,057,000 | 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; 32,562,522 and 32,215,218 shares issued, | ||||||||
| respectively; and 32,382,522 and 32,035,218 shares outstanding, respectively | 33,000 | 32,000 | ||||||
| Additional paid-in capital | 27,077,000 | 26,488,000 | ||||||
| Treasury stock, at cost, 180,000 shares held | (107,000 | ) | (107,000 | ) | ||||
| Accumulated earnings | 6,059,000 | 1,991,000 | ||||||
| Total stockholders' equity | 33,062,000 | 28,404,000 | ||||||
| Total liabilities and stockholders' equity | $ | 57,752,000 | $ | 49,039,000 | ||||
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Express-1 Expedited Solutions, Inc. |
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Consolidated Statements of Operations |
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(Unaudited) |
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| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||
| Revenues | ||||||||||||
| Operating revenue | $ | 44,448,000 | $ | 26,211,000 | $ | 116,430,000 | $ | 68,526,000 | ||||
| Expenses | ||||||||||||
| Direct expense | 36,309,000 | 21,482,000 | 95,453,000 | 56,944,000 | ||||||||
| Gross margin | 8,139,000 | 4,729,000 | 20,977,000 | 11,582,000 | ||||||||
| Sales general and administrative expense | 5,219,000 | 3,284,000 | 13,892,000 | 9,533,000 | ||||||||
| Operating income from continuing operations | 2,920,000 | 1,445,000 | 7,085,000 | 2,049,000 | ||||||||
| Other expense | 48,000 | 19,000 | 102,000 | 28,000 | ||||||||
| Interest expense | 32,000 | 26,000 | 140,000 | 74,000 | ||||||||
| Income from continuing operations before income tax | 2,840,000 | 1,400,000 | 6,843,000 | 1,947,000 | ||||||||
| Income tax provision | 1,110,000 | 599,000 | 2,775,000 | 858,000 | ||||||||
| Income from continuing operations | 1,730,000 | 801,000 | 4,068,000 | 1,089,000 | ||||||||
| Income from discontinued operations, net of tax | - | 10,000 | - | 15,000 | ||||||||
| Net income | $ | 1,730,000 | $ | 811,000 | $ | 4,068,000 | $ | 1,104,000 | ||||
| Basic income per share | ||||||||||||
| Income from continuing operations | $ | 0.05 | $ | 0.03 | $ | 0.13 | $ | 0.03 | ||||
| Income from discontinued operations | - | - | - | - | ||||||||
| Net income | 0.05 | 0.03 | 0.13 | 0.03 | ||||||||
| Diluted income per share | ||||||||||||
| Income from continuing operations | 0.05 | 0.03 | 0.12 | 0.03 | ||||||||
| Income from discontinued operations | - | - | - | - | ||||||||
| Net income | $ | 0.05 | $ | 0.03 | $ | 0.12 | $ | 0.03 | ||||
| Weighted average common shares outstanding | ||||||||||||
| Basic weighted average common shares outstanding | 32,381,502 | 32,035,218 | 32,154,890 | 32,035,218 | ||||||||
| Diluted weighted average common shares outstanding | 33,008,742 | 32,138,885 | 32,741,822 | 32,142,150 | ||||||||
| Express-1 Expedited Solutions, Inc. | |||||||||||||||||||||
| Summary Financial Table | |||||||||||||||||||||
| For the Three Months Ended September 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 | $ | 21,407,000 | $ | 14,704,000 | $ | 6,703,000 | 45.6 | % | 48.2 | % | 56.1 | % | |||||||||
| Concert Group Logistics | 18,586,000 | 8,945,000 | 9,641,000 | 107.8 | % | 41.8 | % | 34.1 | % | ||||||||||||
| Bounce Logistics | 5,696,000 | 3,077,000 | 2,619,000 | 85.1 | % | 12.8 | % | 11.7 | % | ||||||||||||
| Intercompany eliminations | (1,241,000 | ) | (515,000 | ) | (726,000 | ) | -141.0 | % | -2.8 | % | -1.9 | % | |||||||||
| Total revenues | 44,448,000 | 26,211,000 | 18,237,000 | 69.6 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Direct expenses | |||||||||||||||||||||
| Express-1 | 16,096,000 | 11,430,000 | 4,666,000 | 40.8 | % | 75.2 | % | 77.7 | % | ||||||||||||
| Concert Group Logistics | 16,699,000 | 8,026,000 | 8,673,000 | 108.1 | % | 89.8 | % | 89.7 | % | ||||||||||||
| Bounce Logistics | 4,755,000 | 2,541,000 | 2,214,000 | 87.1 | % | 83.5 | % | 82.6 | % | ||||||||||||
| Intercompany eliminations | (1,241,000 | ) | (515,000 | ) | (726,000 | ) | -141.0 | % | 100.0 | % | 100.0 | % | |||||||||
| Total direct expenses | 36,309,000 | 21,482,000 | 14,827,000 | 69.0 | % | 81.7 | % | 82.0 | % | ||||||||||||
| Gross margin | |||||||||||||||||||||
| Express-1 | 5,311,000 | 3,274,000 | 2,037,000 | 62.2 | % | 24.8 | % | 22.3 | % | ||||||||||||
| Concert Group Logistics | 1,887,000 | 919,000 | 968,000 | 105.3 | % | 10.2 | % | 10.3 | % | ||||||||||||
| Bounce Logistics | 941,000 | 536,000 | 405,000 | 75.6 | % | 16.5 | % | 17.4 | % | ||||||||||||
| Total gross margin | 8,139,000 | 4,729,000 | 3,410,000 | 72.1 | % | 18.3 | % | 18.0 | % | ||||||||||||
| Selling, general & administrative | |||||||||||||||||||||
| Express-1 | 2,779,000 | 1,867,000 | 912,000 | 48.8 | % | 13.0 | % | 12.7 | % | ||||||||||||
| Concert Group Logistics | 1,335,000 | 632,000 | 703,000 | 111.2 | % | 7.2 | % | 7.1 | % | ||||||||||||
| Bounce Logistics | 661,000 | 355,000 | 306,000 | 86.2 | % | 11.6 | % | 11.5 | % | ||||||||||||
| Corporate | 444,000 | 430,000 | 14,000 | 3.3 | % | 1.0 | % | 1.6 | % | ||||||||||||
| Total selling, general & administrative | 5,219,000 | 3,284,000 | 1,935,000 | 58.9 | % | 11.7 | % | 12.5 | % | ||||||||||||
| Operating income from continuing operations | |||||||||||||||||||||
| Express-1 | 2,532,000 | 1,407,000 | 1,125,000 | 80.0 | % | 11.8 | % | 9.6 | % | ||||||||||||
| Concert Group Logistics | 552,000 | 287,000 | 265,000 | 92.3 | % | 3.0 | % | 3.2 | % | ||||||||||||
| Bounce Logistics | 280,000 | 181,000 | 99,000 | 54.7 | % | 4.9 | % | 5.9 | % | ||||||||||||
| Corporate | (444,000 | ) | (430,000 | ) | (14,000 | ) | -3.3 | % | -1.0 | % | -1.6 | % | |||||||||
| Operating income from continuing operations | 2,920,000 | 1,445,000 | 1,475,000 | 102.1 | % | 6.6 | % | 5.5 | % | ||||||||||||
| Interest expense | 32,000 | 26,000 | 6,000 | 23.1 | % | 0.1 | % | 0.1 | % | ||||||||||||
| Other expense | 48,000 | 19,000 | 29,000 | 152.6 | % | 0.1 | % | 0.1 | % | ||||||||||||
| Income from continuing operations before tax | 2,840,000 | 1,400,000 | 1,440,000 | 102.9 | % | 6.4 | % | 5.3 | % | ||||||||||||
| Tax provision | 1,110,000 | 599,000 | 511,000 | 85.3 | % | 2.5 | % | 2.3 | % | ||||||||||||
| Income from continuing operations | 1,730,000 | 801,000 | 929,000 | 116.0 | % | 3.9 | % | 3.1 | % | ||||||||||||
| Loss from discontinued operations, net of tax | - | 10,000 | (10,000 | ) | -100.0 | % | 0.0 | % | 0.0 | % | |||||||||||
| Net income | $ | 1,730,000 | $ | 811,000 | $ | 919,000 | 113.3 | % | 3.9 | % | 3.1 | % | |||||||||
| Express-1 Expedited Solutions, Inc. | |||||||||||||||||||||
| Summary Financial Table | |||||||||||||||||||||
| For the Nine Months Ended September 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 | $ | 58,176,000 | $ | 33,682,000 | $ | 24,494,000 | 72.7 | % | 50.0 | % | 49.2 | % | |||||||||
| Concert Group Logistics | 47,598,000 | 28,739,000 | 18,859,000 | 65.6 | % | 40.9 | % | 41.9 | % | ||||||||||||
| Bounce Logistics | 13,494,000 | 7,089,000 | 6,405,000 | 90.4 | % | 11.6 | % | 10.3 | % | ||||||||||||
| Intercompany eliminations | (2,838,000 | ) | (984,000 | ) | (1,854,000 | ) | -188.4 | % | -2.5 | % | -1.4 | % | |||||||||
| Total revenues | 116,430,000 | 68,526,000 | 47,904,000 | 69.9 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Direct expenses | |||||||||||||||||||||
| Express-1 | 44,358,000 | 26,099,000 | 18,259,000 | 70.0 | % | 76.2 | % | 77.5 | % | ||||||||||||
| Concert Group Logistics | 42,653,000 | 25,952,000 | 16,701,000 | 64.4 | % | 89.6 | % | 90.3 | % | ||||||||||||
| Bounce Logistics | 11,280,000 | 5,877,000 | 5,403,000 | 91.9 | % | 83.6 | % | 82.9 | % | ||||||||||||
| Intercompany eliminations | (2,838,000 | ) | (984,000 | ) | (1,854,000 | ) | -188.4 | % | 100.0 | % | 100.0 | % | |||||||||
| Total direct expenses | 95,453,000 | 56,944,000 | 38,509,000 | 67.6 | % | 82.0 | % | 83.1 | % | ||||||||||||
| Gross margin | |||||||||||||||||||||
| Express-1 | 13,818,000 | 7,583,000 | 6,235,000 | 82.2 | % | 23.8 | % | 22.5 | % | ||||||||||||
| Concert Group Logistics | 4,945,000 | 2,787,000 | 2,158,000 | 77.4 | % | 10.4 | % | 9.7 | % | ||||||||||||
| Bounce Logistics | 2,214,000 | 1,212,000 | 1,002,000 | 82.7 | % | 16.4 | % | 17.1 | % | ||||||||||||
| Total gross margin | 20,977,000 | 11,582,000 | 9,395,000 | 81.1 | % | 18.0 | % | 16.9 | % | ||||||||||||
| Selling, general & administrative | |||||||||||||||||||||
| Express-1 | 7,155,000 | 5,319,000 | 1,836,000 | 34.5 | % | 12.3 | % | 15.8 | % | ||||||||||||
| Concert Group Logistics | 3,582,000 | 1,949,000 | 1,633,000 | 83.8 | % | 7.5 | % | 6.8 | % | ||||||||||||
| Bounce Logistics | 1,696,000 | 904,000 | 792,000 | 87.6 | % | 12.6 | % | 12.8 | % | ||||||||||||
| Corporate | 1,459,000 | 1,361,000 | 98,000 | 7.2 | % | 1.3 | % | 2.0 | % | ||||||||||||
| Total selling, general & administrative | 13,892,000 | 9,533,000 | 4,359,000 | 45.7 | % | 11.9 | % | 13.9 | % | ||||||||||||
| Operating income from continuing operations | |||||||||||||||||||||
| Express-1 | 6,663,000 | 2,264,000 | 4,399,000 | 194.3 | % | 11.5 | % | 6.7 | % | ||||||||||||
| Concert Group Logistics | 1,363,000 | 838,000 | 525,000 | 62.6 | % | 2.9 | % | 2.9 | % | ||||||||||||
| Bounce Logistics | 518,000 | 308,000 | 210,000 | 68.2 | % | 3.8 | % | 4.3 | % | ||||||||||||
| Corporate | (1,459,000 | ) | (1,361,000 | ) | (98,000 | ) | -7.2 | % | -1.3 | % | -2.0 | % | |||||||||
| Operating income from continuing operations | 7,085,000 | 2,049,000 | 5,036,000 | 245.8 | % | 6.1 | % | 3.0 | % | ||||||||||||
| Interest expense | 140,000 | 74,000 | 66,000 | 89.2 | % | 0.1 | % | 0.1 | % | ||||||||||||
| Other expense | 102,000 | 28,000 | 74,000 | 264.3 | % | 0.1 | % | 0.0 | % | ||||||||||||
| Income from continuing operations before tax | 6,843,000 | 1,947,000 | 4,896,000 | 251.5 | % | 5.9 | % | 2.8 | % | ||||||||||||
| Tax provision | 2,775,000 | 858,000 | 1,917,000 | 223.4 | % | 2.4 | % | 1.3 | % | ||||||||||||
| Income from continuing operations | 4,068,000 | 1,089,000 | 2,979,000 | 273.6 | % | 3.5 | % | 1.6 | % | ||||||||||||
| Income from discontinued operations, net of tax | - | 15,000 | (15,000 | ) | -100.0 | % | 0.0 | % | 0.0 | % | |||||||||||
| Net income | $ | 4,068,000 | $ | 1,104,000 | $ | 2,964,000 | 268.5 | % | 3.5 | % | 1.6 | % | |||||||||
