SOURCE: Integrated Freight Corporation

May 17, 2011 09:00 ET

Integrated Freight's President and CEO Updates Shareholders and the Investment Community

SARASOTA, FL--(Marketwire - May 17, 2011) - Integrated Freight Corporation ( (OTCBB: IFCR) (OTCQB: IFCR) today provided the latest CEO update.

Paul Henley, CEO of Integrated Freight communicated:

This is the second letter in a series of corporate updates regarding the current operations of Integrated Freight Corporation (OTCBB: IFCR) (OTCQB: IFCR) that we will continue to provide to shareholders and the investing public on an ongoing basis.

The most notable event over the last two months was the completion of our acquisition of Cross Creek Trucking, a Medford, Oregon-based refrigerated freight hauler. In operation since 1986, Cross Creek will add over 115 late model tractors, 170 refrigerated trailers, and 30 dry trailers to the Integrated Freight fleet, along with 2010 revenues of approximately $28M. Cross Creek's distinctive yellow trailers are a common sight along the I-5 corridor in the Northwest United States, hauling freight throughout Oregon, Washington, California, Utah, Nevada, Idaho , and Nebraska. We are proud to have such a well respected, safe and reliable carrier as part of our family.

With the addition of Cross Creek, we are rapidly approaching critical mass. Demand across our shipping network has continued to remain strong, even in the face of increasing fuel prices since the beginning of the year. We are actively in the market for additional tractors and trailers to augment the size of our fleet, which we expect to attract new customers and provide an expanded set of services and carrier capacity to our current clients. The demand for freight services in the United States has continued to strengthen over the past year and a half. From our vantage point, the economy is recovering nicely. The freight index was up again this month, marking the 15th month in the last 16 in which this measure has improved. On Wednesday May 11th, the Department of Transportation announced that its freight transportation services index for March rose 4.8% from a year ago, to the highest level since July 2008.

March marked the launch of our new freight brokerage service, Integrated Freight Services (IFS), headed up by Roger Kennedy. It has already proven to be a resounding success. Since initiating service, IFS has added an additional revenue stream with minimal overhead expenditure, helped our current clients with their out-of-network loads and freight overflow, and introduced several new customers to IFCR. While we continue to work on adding to the size of our fleet through acquisitions and vehicle purchases, we expect our freight brokerage service to capture revenues that might otherwise be lost to competitors during periods of high demand.

To elaborate on our recent 8-K filings, last December, Triple C Transport's former owner and general manager initiated Chapter 11 bankruptcy proceedings for two of his companies, White Farms Trucking and Craig Carrier Corporation. These companies owned the tractor and trailer equipment that our subsidiary, Triple C Transport, leased for its trucking operations. Recently, as a result of the Chapter 11 filing, the bankruptcy court ordered the return of this leased equipment. Current Triple C management has complied with the court's order and has leased a small amount of operating equipment as a replacement. IFCR has secured local counsel to protect its interests through the former owner's bankruptcy proceedings and to recover any ongoing losses that may result from this situation, including a rescission of our original stock purchase agreement with the previous owners of Triple C Transport. We believe that rescission will not have a materially negative impact on our financial performance going forward. However, we will not be able to take advantage of many of the additional opportunities provided by this acquisition that we had originally envisioned at the time of its closing until this situation is rectified.

We are also continuing to move forward on bulk savings on insurance and fuel across our operators, and we anticipate realizing significant savings across the fleet as these carriers are consolidated under the Integrated Freight umbrella. To date, we have implemented a new national fueling program that aggregates all of our companies' gallons to maximize purchase discounts. This program has enabled us to renegotiate improved purchase terms for each operating company. We have begun the process of integrating the multiple layers of truck insurance (collision, cargo, liability, workers comp, etc.) and expect to realize significant cost and service improvements once this is completed.

As always, feel free to contact us directly here at the Integrated Freight offices at 941-907-8372 x 6 or for the investor relations department.

Paul Henley
Integrated Freight Corporation

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 thereunder. 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
    Email Contact
    Investor Relations Contact:
    The Eversull Group, Inc.
    Jack Eversull
    214-469-2361 (fax)
    Email Contact