Janel World Trade Reports Year-to-Year Net Profit Improvement Of $391,000 On Record Second Quarter Revenue

Janel World Trade, Ltd. (OTC BB: JLWT), a full-service global provider of integrated transportation logistics and environmental services, today announced financial results for its second fiscal quarter and first half ended March 31, 2010.

Fiscal Second Quarter Results

For the three months ended March 31, 2010, Janel reported record revenue of $19,270,955, up 12.4% as compared to March 31, 2009, revenue of $17,151,773, the highest revenue level for any second quarter in the Company’s history. Revenue also showed continued improvement from the first quarter 2010, up $2,273,023, or 13.4%. Reflecting the improved revenue and the continuing savings from the Company’s ongoing cost-management initiatives, Janel reported in the most recent quarter a net income available to shareholders of $102,334, or $0.006 per fully diluted share, an improvement of $390,819 as compared to a second fiscal quarter 2009 net loss of $(288,485), or $(0.02) per fully diluted share.

A recovering domestic economy, which increased the level of shipping activity for most of the Company’s clients as compared to the same period 2009, was the principal factor influencing the increase in core revenue. Specifically, the Company transported higher volumes of both imported goods and exports via airfreight, which contributed to higher margins.

A substantial drop in SG&A expenses also contributed significantly to the Company’s pretax results. For the latest three-month period, Janel incurred SG&A totaling $1,860,403 (9.65% of revenue), down $450,670, or 19.5%, as compared to the year-earlier SG&A level of $2,311,073 (13.47% of revenue). The 382 basis-point decrease in overhead as a percent of total revenue reflected the cumulative effect of the Company’s stringent cost-savings efforts, including a substantial reduction in corporate headcount over the past 18 months.

The Company has reduced the negative effect of Order Logistics, Incorporated (OLI), which showed an operating loss to $(84,271) as compared to the more-than-double year-earlier level of $(179,854). OLI was a 2007 Web-based logistics software acquisition whose assets have since been written down. The Company believes that a calculation of EBITDA along with the exclusion of the OLI-related operating loss gives a more realistic indication of the strength of Janel’s core transportation logistics business. On this non-GAAP basis, the Company would have reported earnings of $327,325 for the 2010 second quarter as compared to a loss of $(38,225) in the 2009 three months.