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.

About Express-1 Expedited Solutions, Inc.

Express-1 Expedited Solutions, Inc. is a non-asset based services organization focused on premium transportation through its business units, Express-1, Inc. (Buchanan, Michigan), Concert Group Logistics, Inc. (CGL) (Downers Grove, Illinois), and Bounce Logistics, Inc. (South Bend, Indiana). These business units are focused on premium services that include same-day, time-sensitive transportation and domestic and international freight forwarding. Serving more than 4,000 customers, the Company’s premium transportation offerings are provided through one of six operations centers; Buchanan, Michigan; South Bend, Indiana; Downers Grove, Illinois; Rochester Hills, Michigan; Tampa, Florida, and Miami Florida. Express-1 Expedited Solutions, Inc. is publicly traded on the NYSE AMEX Equities Exchange under the symbol XPO. For more information about the Company, visit www.xpocorporate.com.

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 Sheets
   
 
(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  
 

Express-1 Expedited Solutions, Inc.

Consolidated Statements of Operations

(Unaudited)
       
 
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 %

Copyright Business Wire 2010