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Express-1 Expedited Solutions Reports Second Quarter 2011 Results

Dépèche transmise le 15 août 2011 par Business Wire

SAINT JOSEPH, Mich.--(BUSINESS WIRE)--Express-1 Expedited Solutions, Inc. (NYSE Amex: XPO) (“Express-1” or the “Company”) today announced its financial results for the second quarter of 2011. Total revenue from continuing operations for the second quarter was $44.1 million, a 9.3% increase from the same period in 2010.

Net income from continuing operations for the second quarter was $914,000, or $.03 diluted earnings per share, compared with $1,504,000, or $.05 diluted earnings per share, for the same period in 2010. Gross margin of $7,180,000 declined 1.6 percentage points year-over-year to 16.3% for the quarter, reflecting a choppy environment for the Company’s Express-1 business unit, partially offset by gains in other operating segments.

Mike Welch, chief executive officer, said, “While our revenue growth in the quarter was solid, we experienced margin pressure within our Express-1 unit, including a greater reliance on high-volume, lower-rate customers, and the strategic expansion of our cross-border business. In addition, we drove 43% revenue growth in Bounce Logistics, a business model that generates a lower margin. Non-operational impacts on results included expenses related to the proposed equity investment led by Jacobs Private Equity, and a modification to the revenue recognition policy for our CGL unit that reduced both our top line and our profitability.

“Domestic demand began to strengthen late in the quarter, as reflected in our June gross margin of 16.9%. In addition, we are continuing to see significant growth in our business with Mexico, where Express-1’s expertise in border logistics is a competitive advantage. We anticipate that our overall operating environment will continue to become more favorable through the balance of the year as Japan’s export production recovers from the tsunami and seasonal retail activity develops.”

Welch continued, “Our board has recommended the proposed investment in Express-1 led by Jacobs Private Equity. This is a tremendous opportunity for the company to carve out a major position under the new banner of XPO Logistics in three areas where we already excel: expedited transportation solutions, domestic and international freight forwarding, and premium truckload brokerage. We look forward to the stockholder vote on September 1.”

Conference Call

In light of the pending equity investment, the Company’s next earnings conference call will be held after the reporting of third quarter 2011 results.

About Express-1 Expedited Solutions, Inc.

Founded in 1989, Express-1 is a non-asset-based, third-party logistics services provider that uses a network of relationships with ground, sea and air carriers to find the best transportation solutions for its customers. The Company offers its services through three distinct business units: Express-1, Inc. (expedited transportation solutions), the fifth largest U.S. expedited freight service provider, according to The Journal of Commerce; Concert Group Logistics, Inc. (domestic and international freight forwarding); and Bounce Logistics, Inc. (premium truckload brokerage). The Company serves more than 4,000 retail, commercial, manufacturing and industrial customers through six U.S. operations centers and 22 agent locations. www.xpocorporate.com

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others: uncertainties as to the timing of the proposed equity investment; the possibility that competing transaction proposals will be made; the possibility that various closing conditions for the proposed equity investment may not be satisfied or waived; the possibility that the warrants contemplated by the proposed equity investment, if issued, will not be exercised; the potential inability to identify and consummate acquisitions and arrange adequate financing; 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; the general risks associated with our businesses; general economic and business conditions; and other factors. Readers are cautioned not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date hereof. Neither the Company nor any other person undertakes any obligation to update any of these statements in light of new information or future events.

Contact:
Express-1 Expedited Solutions, Inc.
Mike Welch, 269-429-9761
Mike.Welch@xpocorporate.com

 
 
Express-1 Expedited Solutions, Inc.
Consolidated Balance Sheets
       
(Unaudited)
June 30, 2011 December 31, 2010
ASSETS
Current assets:
Cash $ 647,000 $ 561,000
Accounts receivable, net of allowances of $137,000 and $136,000, respectively 24,533,000 24,272,000
Prepaid expenses 601,000 257,000
Deferred tax asset, current 0 314,000
Income tax receivable 859,000 1,348,000
Other current assets   251,000     813,000  
Total current assets   26,891,000     27,565,000  
 
Property and equipment, net of $3,611,000 and $3,290,000 in accumulated depreciation, respectively 2,865,000 2,960,000
Goodwill 16,959,000 16,959,000
Identifiable intangible assets, net of $3,094,000 and $2,827,000 in accumulated amortization, respectively 8,280,000 8,546,000
Loans and advances 120,000 126,000
Other long-term assets   481,000     516,000  
Total long-term assets   28,705,000     29,107,000  
Total assets $ 55,596,000   $ 56,672,000  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,890,000 $ 8,756,000
Accrued salaries and wages 402,000 1,165,000
Accrued expenses, other 2,945,000 2,877,000
Deferred tax liabilities, current 80,000 0
Current maturities of long-term debt and capital leases 1,667,000 1,680,000
Other current liabilities   646,000     773,000  
Total current liabilities   14,630,000     15,251,000  
 
 
Line of credit 0 2,749,000
Long-term debt and capital leases, net of current maturities 1,250,000 2,083,000
Deferred tax liability, long-term 2,338,000 2,032,000
Other long-term liabilities   426,000     544,000  
Total long-term liabilities   4,014,000     7,408,000  
 
Stockholders' equity:
Preferred stock, $.001 par value; 10,000,000 shares; no shares issued or outstanding 0 0
Common stock, $.001 par value; 100,000,000 shares authorized; 33,191,561 and 32,687,522 shares issued, respectively; and 33,011,561 and 32,507,522 shares outstanding, respectively
33,000 33,000
Additional paid-in capital 28,116,000 27,208,000
Treasury stock, at cost, 180,000 shares held (107,000 ) (107,000 )
Accumulated earnings   8,910,000     6,879,000  
Total stockholders' equity   36,952,000     34,013,000  
Total liabilities and stockholders' equity $ 55,596,000   $ 56,672,000  
 
 
Express-1 Expedited Solutions, Inc.
Consolidated Statements of Operations
                 
 
Three Months Ended Six Months Ended
June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010
Revenues
Operating revenue $ 44,094,000 $ 40,340,000 $ 85,602,000 $ 71,982,000
Expenses
Direct expense   36,914,000   33,101,000   71,215,000   59,144,000
Gross margin 7,180,000 7,239,000 14,387,000 12,838,000
Selling, general and administrative expense   5,537,000   4,598,000   10,744,000   8,673,000
Operating income 1,643,000 2,641,000 3,643,000 4,165,000
Other expense 33,000 34,000 62,000 54,000
Interest expense   47,000   88,000   96,000   108,000
Income before income tax provision 1,563,000 2,519,000 3,485,000 4,003,000
Income tax provision   649,000   1,015,000   1,454,000   1,665,000
Net income $ 914,000 $ 1,504,000 $ 2,031,000 $ 2,338,000
 
 
 
Basic earnings per common share
Net income $ 0.03 $ 0.05 $ 0.06 $ 0.07
Diluted earnings per common share
Net income $ 0.03 $ 0.05 $ 0.06 $ 0.07
Weighted average common shares outstanding
Basic weighted average common shares outstanding 33,010,881 32,044,116 32,857,654 32,039,706
Diluted weighted average common shares outstanding 34,333,656 32,645,399 34,211,517 32,602,367
 
 
Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended June 30, 2011 and 2010
(Unaudited)
                        Percent of
Three Months Ended June 30, Quarter to Quarter Change Business Unit Revenue
2011 2010 In Dollars In Percentage   2011   2010
Revenues
Express-1 $ 23,060,000 $ 20,557,000 $ 2,503,000 12.2 % 52.2 % 51.0 %
CGL 15,722,000 16,074,000 (352,000 ) -2.2 % 35.7 % 39.8 %
Bounce 6,687,000 4,675,000 2,012,000 43.0 % 15.2 % 11.6 %
Intercompany eliminations   (1,375,000 )   (966,000 )   (409,000 ) 42.3 % -3.1 % -2.4 %
Total revenues   44,094,000     40,340,000     3,754,000   9.3 % 100.0 % 100.0 %
 
Direct expenses
Express-1 18,573,000 15,720,000 2,853,000 18.1 % 80.5 % 76.5 %
CGL 14,051,000 14,426,000 (375,000 ) -2.6 % 89.4 % 89.7 %
Bounce 5,665,000 3,921,000 1,744,000 44.5 % 84.7 % 83.9 %
Intercompany eliminations   (1,375,000 )   (966,000 )   (409,000 ) 42.3 % 100.0 % 100.0 %
Total direct expenses   36,914,000     33,101,000     3,813,000   11.5 % 83.7 % 82.1 %
 
Gross margin
Express-1 4,487,000 4,837,000 (350,000 ) -7.2 % 19.5 % 23.5 %
CGL 1,671,000 1,648,000 23,000 1.4 % 10.6 % 10.3 %
Bounce   1,022,000     754,000     268,000   35.5 % 15.3 % 16.1 %
Total gross margin   7,180,000     7,239,000     (59,000 ) -0.8 % 16.3 % 17.9 %
 
Selling, general & administrative
Express-1 2,473,000 2,355,000 118,000 5.0 % 10.7 % 11.5 %
CGL 1,272,000 1,093,000 179,000 16.4 % 8.1 % 6.8 %
Bounce 850,000 613,000 237,000 38.7 % 12.7 % 13.1 %
Corporate   942,000     537,000     405,000   75.4 % 2.1 % 1.3 %
Total selling, general & administrative

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