SOURCE: Integrated Freight Corporation

December 01, 2010 08:00 ET

Integrated Freight Announces 2nd Quarter Financial Results

SARASOTA, FL--(Marketwire - December 1, 2010) - Integrated Freight Company (http://www.integrated-freight.com) (OTCBB: IFCR) reported financial results on November 19 for its fiscal second quarter ended September 30, 2010.

Second Quarter Fiscal 2011 Highlights

  • Gross revenue for the six months ended September 30 increased 74% year-over-year to $15.3 million.
  • Gross revenue increased 21% over previous quarter (Q2 2011 vs. Q1 2011) to $8.6 million.
  • Net loss per share for the quarter decreased to $.02 versus $.05 in comparable quarter of the previous year.
  • Continued acquisition strategy resulting in two additional pending acquisitions under LOI.

Paul Henley, Chief Executive Officer of Integrated Freight, commented, "We had a successful quarter in terms of achieving high growth rates with respect to revenue and infrastructure. As we continue to work in achieving critical volume of revenue, we expect the benefits of our integration model to occur, thus improving the net results for the company in the quarters ahead."

Second Quarter 2011 Financial Results

Revenues
For the six months ended September 30, 2010, the Company reported revenues of $15,372,240 as compared to revenues of $8,832,631 for the six months ended September 30, 2009, an increase of $6,539,609 or 74.04%. The increase is due to two primary factors: the acquisition of Triple C Transportation in May, 2010 and the increase in freight revenue in correlation to the US economy.

Total Operating Expenses
The total operating expenses increased approximately 58.91% to $15,796,662 for the six months ended September 30, 2010, as compared to $9,940,796 for the six months ended September 30, 2009.

Loss from Operations
The Company reported a loss from operations of $424,422 for the six months ended September 30, 2010, as compared to a loss from operations of $1,108,165 for the six months ended September 30, 2009, a decrease of $683,743 or 61.70%. The decrease was a result of increased sales and lower operating expenses as a percentage of sales.

Other Income (Expenses)
The Company reported total other expenses of $433,819 for the six months ended September 30, 2010, as compared to total other expenses of $512,051 for the six months ended September 30, 2009, a decrease of $78,232 or 15.28%. The decrease was due to lower interest expense resulting from a decreased level of debt.

Net Loss
The Company reported a net loss of $854,088 for the six months ended September 30, 2010, as compared to a net loss of $1,603,996 for the six months ended September 30, 2009, a decrease of $749,908 or 46.75%. The decrease was a result of increased sales and lower operating expenses as a percentage of sales.

Segments

Morris Transportation
For the six months ended September 30, 2010, Morris Transportation had revenues of $5,804,313 compared with revenues of $5,407,832 for the six months ended September 30, 2009, an increase of $396,481 or 7.33%. This increase is primarily due to a general improvement in the trucking industry.

Smith Systems Transportation
For the six months ended September 30, 2010, Smith Systems Transportation had revenues of $3,793,984 compared with revenues of $3,424,799 for the six months ended September 30, 2009, an increase of $369,185 or 10.78%. This increase is primarily due to a general improvement in the trucking industry.

Triple C Transport
For the six months ended September 30, 2010, Triple C Transportation had revenues of $7,411,819 compared with revenues of $7,160,133 for the six months ended September 30, 2009, an increase of $251,686 or 3.52%. This increase is primarily due to a general improvement in the trucking industry.

Outlook
Notwithstanding IFCR's operating losses in the comparative quarters covered by the report on Form 10-Q, the Company has experienced positive cash flows and improvements in its working capital positions at the subsidiary level during the quarter ended September 30, 2010, compared to the same quarter in 2009. As IFCR begins to consolidate the duplicated functions among its subsidiaries, it is expected to achieve further savings which will be reflected in improved cash flows and working capital positions, and profitable operations of which there is no assurance. The expenses associated with maintaining the Company's reporting under the Securities Exchange Act at the parent level has significantly contributed to consolidated negative cash flow and working capital positions. In particular, the legal and accounting expenses associated with acquisitions and first-time audits of acquisition candidates have resulted in greater cash outflows and expenses in these categories than IFCR expects to experience when its acquisition program matures in the future. The Company does not expect a positive change in these factors until it completes additional acquisitions, if any, which will enable IFCR to spread the parent's expenses, associated with being a publicly traded and reporting company and costs of future acquisition over a larger revenue and cash flow base.

Management from Integrated Freight believes that the Company is in a recovering truckload freight market as the operating environment grew increasingly positive during the first fiscal quarter of 2011. This improvement marks the second consecutive quarter with increased year over year average miles per tractor. Market share growth continued in the calendar fourth quarter of 2010. The Company expects the upward trend to continue in future quarters.

Even though management is optimistic about the economic recovery, the transportation industry is generally cash lean with over-leveraged balance sheets. IFCR intends to invest more heavily as demand for truckload services improves. The Company believes it is well-positioned to grow its business as the recovery continues to develop.

Integrated Freight believes that its level of profitability, fleet renewal strategy, and use of independent contractors will enable it to internally finance attractive levels of fleet growth when demand conditions are right. Based on the Company's growing network, a history of low cost operations and anticipated access to substantial capital resources, IFCR believes it has the competitive position and ability to perpetuate its model based on leading growth and profitability.

Please refer to the latest quarterly report for further details including income statements and balance sheets.

Integrated Freight was recently featured in 'Gulf Coast Business Review' on November 26, 2010. To view this article, please go to: http://www.review.net/section/detail/truck-stop/.

Integrated Freight is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry freight, refrigerated freight and haz-waste truckload services, operating primarily in well-established traffic lanes in the upper mid-West, Texas, California and the Atlantic seaboard. Integrated Freight was formed for the purpose of acquiring and consolidating operating motor freight companies. The Company recently completed its third acquisition in May 2010.

The foregoing press release contains forward-looking statements, including statements regarding the company's expectation of its future business and earnings, subject to the safe-harbor provisions for forward-looking statements provided in the Securities Exchange Act and the regulations there under. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the company's control. Actual results could differ materially from these forward-looking statements.

Contact Information

  • Investor Relations Contact:
    The Eversull Group, Inc.
    Jack Eversull
    President
    972-571-1624
    214-469-2361 (fax)
    Email Contact