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 | % | ||||||||
