SARASOTA, FL--(Marketwire - March 3, 2011) - Integrated Freight Corporation (http://www.integrated-freight.com) (
Mr. Henley communicated:
This letter is going be the first in a series of monthly corporate updates that my management team and I will be providing to the investing public regarding the current operations of Integrated Freight Corporation. It has been an exciting twenty four months for us here, and we thought it would be a great idea to continue to open up the lines of communication with the equity markets as our nationwide acquisition strategy progresses.
The last two years have seen the completion of three acquisitions: Morris Transportation out of Hamburg, Arkansas, Smith Systems Transport, Inc. out of Scott's Bluff, Nebraska, and Triple C Transport out of Doniphan, Nebraska. Together these three operating companies brought in for the nine months ended December 31, 2009 (fiscal year 2010), calculated on a pro-forma basis, almost $24M in revenues with a net loss of $361,125. As the integration of each acquisition has progressed we've seen 2011 fiscal year numbers for each entity shaping up to be even better than the previous year, with unaudited revenue/EBITDA/net income numbers for the nine months ended December 31, 2010 currently at:
Morris Transportation: $8,381,515 / $1,202,155 / $315,126
Smith Systems: $5,893,607 / $840,678 / $346,714
Triple C Transport: $11,439,031 / $183,455 / $158,344
Operating Unit Total: $25,714,153 / $2,226,288 / $820,184
Corporate: $0 / ($789,850) / ($3,354,590)
Integrated Freight Consolidated: $25,714,153 / $1,436,468 / ($2,534,406)
As we further take advantage of economies of scale through bulk purchases on insurance, tires, and fuel we anticipate that, barring any significant decline in the American economy, each of our subsidiaries' numbers will continue to improve. As an example, we are currently in discussions with Flying J, Pilot, and Love's to finalize a fleet-wide discount north of 30 cents a gallon off of the pump price of diesel fuel, with additional discounts available as we grow in size. While Integrated Freight Corporation, the parent Company, has not performed as well as our subsidiaries have on an individual basis, we fully predicted that the initial build out and ramp up for the consolidated entity would require additional financial outlays. As we progress towards critical mass these onetime expenditures and inefficiencies should be minimized or eliminated outright. As it stands, Integrated Freight Corporation's consolidated totals showed a loss for the nine month period ending December 31, 2010 of $2,534,406, however a large percentage of this was due to interest and derivative expense ($1,086,059) and the non cash items of depreciation and amortization ($1,561,442) and interest and debt discount amortization, stock based compensation, and accounting for warrant issuance ($1,323,373), resulting in a positive EDITDA adjusted for non cash charges to income of $1,436,468.
The recent spike in oil prices as a result of the turmoil in the Middle East has caused a tightening on cash flows at the subsidiary level, but the freight index numbers we follow have stayed positive. Morris, Smith, and Triple C will be able to pass these higher fuel costs on to their customers as usual in the upcoming billing cycles. Due to the unseasonably harsh weather that affected much of the country this winter, we also believe that there is significant pent up demand for dry and refrigerated freight right now, and we are expecting an excellent spring trucking season as much of the Northern US begins to thaw out.
On the parent Company operational front, we have begun the integration of Triple C Transport's back office functions into our Sarasota, Florida office headquarters. This is a crucial step in reducing SG&A expenditures by consolidating administrative, back office, billing, and financial reporting overhead into one centralized location. As we close on additional rollup targets, we will continue to combine these functions together here in Sarasota. Additionally, consolidation across our multiple companies will help to create a more efficient nationwide shipping lane network so that we can eliminate overlapping routes while allowing us to take on a more varied client base.
Acquisition wise, we are continuing to aggressively pursue excellent operations, including the previously disclosed Cross Creek Trucking out of Medford, Oregon and a smaller Eastern US located company that would provide access to a new set of regional shipping lanes. As we progress with these potential partners, I will continue to provide updates and disclosure as I can. We feel that reaching critical mass for Integrated Freight is right around the corner, and we are looking forward to an exciting fiscal year 2012 for ourselves and our investors. As always, feel free to contact us directly here at the Integrated Freight offices at 941-907-8372 x 6 or investor.relations (at) integrated-freight.com for the investor relations department.
Paul Henley, CEO
Integrated Freight Corporation
Forward-Looking Statements
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:
Integrated Freight Corporation Investor Relations
941-907-8372 x 6
investor.relations (at) integrated-freight.com
Investor Relations Contact:
The Eversull Group, Inc.
Jack Eversull
President
972-571-1624
214-469-2361 (fax)