SARASOTA, FL--(Marketwire - February 23, 2011) - Integrated Freight Corporation (http://www.integrated-freight.com) (
For the quarter, gross revenue increased 135.5% to $10.34 million from $4.39 million for the same period in 2009. Additionally, net loss for the quarter increased to $1.68 million, up from $0.86 million during the previous year.
For the previous nine months, gross revenue increased 94.4% to $25.71 million from $13.22 million for the same nine month period in 2009. Additionally, net loss stayed approximately the same during this period as compared to the same nine month time frame in 2009, up slightly to $2.53 million from $2.43 million.
Paul Henley, CEO of Integrated Freight, commented, "We had a successful quarter achieving high growth rates with respect to revenue and infrastructure. As we continue to work towards reaching critical revenue volume, we expect the benefits of our integration model to fully appear, improving the net results for the company in the quarters ahead."
Fiscal Third Quarter 2010 Financial Results
Revenues
For the nine months ended December 31, 2010, the Company reported revenues of $25,714,153 as compared to revenues of $13,323,711 for the nine months ended December 31, 2009, an increase of $12,490,442 or 94%. 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.
Net Loss
The Company reported a net loss of $2,534,406 for the nine months ended December 31, 2010, as compared to a net loss of $2,430,828 for the nine months ended December 31, 2010, an increase of $103,578 or 4%. The increase was a result of increased sales and lower operating expenses as a percentage of sales offset by increased corporate level general and administrative expenses.
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 December 31, 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.
Although 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.
Please refer to the latest quarterly report for further details including income statements and balance sheets.
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 and refrigerated 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. IFCR completed its third acquisition in May of 2010 and in November 2010 reported fiscal second quarter revenues of $8.7M.
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)