SOURCE: Cargo Connection Logistics Holding, Inc.

August 16, 2007 11:59 ET

Cargo Connection Logistics Holding, Inc. Reports Second Quarter Net Income

Company Reports Record Revenues for Six-Month Period Ended June 30, 2007

INWOOD, NY--(Marketwire - August 16, 2007) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today reported its results for the second quarter ended June 30, 2007. The Company reported net income of $284,810 for the 2007 second quarter (after giving effect to a gain of $1,867,047 relating to accounting for financial instruments), as compared with a loss of $690,829 for the same period in 2006. This represents the first quarterly net income for the Company since it began operating in the transportation and logistics industry in May 2005.

The Company reported revenue of $3,834,924 in the second quarter ended June 30, 2007, as compared with $4,056,727 in the corresponding period in 2006. This decrease was due in part to a decline in core line-haul transportation service associated with a lessening in demand for transportation services which the Company believes may be related to a general lowering of demand for consumer products within the domestic economy. The decrease in core revenue was partially offset by revenues generated by the increase in our General Order warehouse operations at JFK that commenced in June 2006. The Company anticipates additional local pickup and delivery revenue customers as a compliment to the Company's General Order warehouse business. In addition, the Company continues to expand its customer base so as not be as reliant on a few key customers as it had been in 2006, which the Company anticipates will result in increased revenue.

The Company achieved record revenues of $7,993,750 for the first six months of 2007, as compared with revenue of $7,700,928 for the first six months of 2006. The Company reported a net loss before the cumulative effect of a change in accounting principle of $537,333 for the first six months of 2007, as compared to a net loss of $3,882,408 for the first six months of 2006. The cumulative effect of the change in accounting principal in the current six-month period was $396,000, resulting in a net loss of $933,333 for the 2007 six-month period.

"Despite a relatively flat market we were able to increase sales during the first six months by 3.8 percent," said Jesse Dobrinsky, Chairman and CEO of Cargo Connection Logistics Holding, Inc. "This was accomplished primarily by our having a full six months of General Order warehouse business in the current period, as compared to one month in the 2006 period."

"We are focused on continuing efforts to increase sales through organic growth while reducing overhead without affecting operating efficiencies," Dobrinsky added. "Of paramount importance are our efforts to refinance our existing convertible debt. As previously stated, we hope that a simplified capital structure will facilitate our ability to execute our short- and long-term business strategy."

According to Dobrinsky, the Company continues to aggressively pursue opportunities in the international markets, particularly the Pacific Rim. Dobrinsky also noted that the Company is finalizing the development of its Rad-Rope product utilizing a license to intellectual property rights that the Company acquired in December 2006. "The technology, which is designed to detect radiation in ocean and air containers, is being further refined in coordination with the licensor, which developed the technology," said Dobrinsky. "We now have engineers working on a prototype with the eventual goal of making a presentation to the Department of Homeland Security."

Complete financial results for the three and six months ended June 30, 2007 can be found in the Company's Form 10-QSB filed with Securities and Exchange Commission on August 15, 2007.

About Cargo Connection Logistics Holding, Inc.

The Company, through its subsidiaries Cargo Connection Logistics Corp. and Cargo Connection Logistics - International, Inc., is a leader in world trade logistics. The Company headquarters is in Inwood, NY, and it also has offices in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York, NY; Pittsburgh, PA.; and San Jose, CA. Headquartered adjacent to JFK International Airport, the Company is a transportation logistics provider for shipments imported into and exported out of the United States, with service areas throughout the United States and North America. The Company currently provides a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. It also operates a bonded General Order warehouse in at JFK International Airport and Container Freight Station operations, which are specifically designed to handle internationally arriving freight for major retail suppliers through its facilities in Florida, Georgia, Illinois, New York and Ohio.

Cargo Connection Logistics' website is www.cargocon.com.

Future-Looking Statements Safe Harbor

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including, without limitation:

--  the ability to operate in compliance with the terms of its financing
    facilities (particularly the financial covenants);
--  the ability to maintain adequate liquidity and produce sufficient cash
    flow to meet the Company's capital expenditure plans;
--  the ability to attract and retain qualified management and other
    personnel;
--  the number and magnitude of customers;
--  changes in the competitive environment in which the Company operates;
--  changes in, or the failure to comply with, government and regulatory
    policies;
--  the ability to obtain regulatory approvals and to maintain approvals
    previously granted;
--  uncertainty relating to economic conditions generally and particularly
    affecting the markets in which the Company operates;
--  changes in the Company's business strategy, development plans or cost
    savings plans;
--  the ability to complete acquisitions or divestitures and to integrate
    any business or operation acquired;
--  the ability to enter into strategic alliances or other business
    relationships;
--  the ability to overcome significant operating losses;
--  the frequency and severity of accidents, particularly involving our
    trucking operations;
--  the ability to reduce costs;
--  the ability to develop products and services and to penetrate existing
    and new markets; and
--  technological developments and changes in the industry.
    

Contact Information

  • Contact:
    Peter Nasca
    Peter Nasca Associates, Inc.
    954-473-0677 Ft. Lauderdale
    312-421-0723 Chicago