SOURCE: Janel World Trade, Ltd.

Janel World Trade, Ltd.

February 15, 2011 08:00 ET

Janel World Trade Ltd. Reports 55% Increase in First Quarter Revenue vs. First Quarter 2009 Reflecting a $9.4 Million Increase in Revenue to $26.4 Million

Record First Quarter Revenue Reflects Strength in Core Business

JAMAICA, NY--(Marketwire - February 15, 2011) - Janel World Trade, Ltd. (OTCBB: JLWT), a full-service global provider of integrated transportation logistics and environmental services, announced today financial results for its fiscal first quarter ending December 31, 2010.

First Quarter Results

For the three months ending December 31, 2010, Janel reported revenue of $26,433,994, an increase of $9,436,062 or up 55.5% compared to the three months ended December 31, 2009. The first quarter revenue represents the highest first quarter revenue reported in the Company's history. This quarterly milestone follows successive record revenues for the second, third and fourth quarters of fiscal 2010. The Company's core logistics business units continue to outperform expectations in a recovering economy with a focus on global shipping lanes of traffic exhibiting strong growth and the Company's core logistics services.

For the three months ending December 31, 2010, the Company reported net income available to common shareholders of $4,820 or $0.000 per fully diluted share, an improvement of $58,607 from the prior year reported net loss available to common shareholders of $(53,787), or $(0.003) per fully diluted share. 

Review and Outlook

"Taking into account that our first quarter is historically the weakest due to seasonal factors, we are pleased with our results for the quarter ended December 31, 2010," said James N. Jannello, Executive Vice President and Chief Executive Officer. "We now have had four consecutive quarters reflecting record quarterly revenue and positive earnings. In addition, during the quarter we successfully assimilated our October 4, 2010 strategic acquisition of the assets of Ferrara International Logistics (Ferrara)." 

Jannello continued, "Looking ahead, our expectation is for continued improvement in our financial results for 2011 and exceeding $100 million in annual revenue, based on a continuing modest recovery in global economic conditions. Our recent asset acquisition of Ferrara and our core logistics business units continuing to perform in a recovering economy along with our anticipation that our customers will continue to report improvement in their respective businesses and the addition of new customers leads us to the expectation that we can finish fiscal year 2011 with another record revenue year and increased net income."

Jannello concluded, "We are committed to growing our core transportation logistics segment and exploring opportunities to expand existing traffic lanes and services that generate higher operating margins which will continue to enhance the profitability of our business and build shareholder value."

To be included in Janel's database for Corporate Press Releases and industry updates, investors are invited to send their e-mail address to: IRInfo@janelgroup.net.

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics and environmental services, including domestic and international freight forwarding via multi-modal carriers, leading-edge, end-to-end, supply-chain technology, customs brokerage, warehousing and distribution, and other transportation-related services. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and a network of independent international agents in approximately 52 countries, the Company provides the comprehensive logistics services and technology necessary to handle its customers' shipping needs throughout the world. Cargo can be transported via air, sea or land, and Janel's national network of locations can manage the shipment and/or receipt of cargo into or out of any location in the United States. Janel is registered as an Ocean Transportation Intermediary and licensed as a FMC Licensed Freight Forwarder by the Federal Maritime Commission.

Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York, adjacent to the JFK International Airport, and its common stock is listed on the OTC Bulletin Board under the symbol "JLWT." Additional information on the Company is available on its website at http://www.janelgroup.net

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's dependence upon conditions in the air, ocean and land-based freight forwarding industry, the size and resources of many competitors, the need for the Company to effectively integrate acquired businesses and to successfully deliver its primary services, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission, including its most recent Form 8-K, Form 10-Q and Form 10-K filings. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

JANEL WORLD TRADE LTD. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
             
             
    THREE MONTHS ENDED  
    December 31,  
    2010     2009  
                 
REVENUES   $ 26,433,994     $ 16,997,932  
                 
COST AND EXPENSES:                
  Forwarding expenses     23,834,037       15,083,815  
  Selling, general and administrative     2,441,185       1,881,392  
  Depreciation and amortization     84,035       60,741  
    TOTAL COSTS AND EXPENSES     26,359,257       17,025,948  
                 
OPERATING INCOME (LOSS)     74,737       (28,016 )
                 
OTHER ITEMS:                
  Interest and dividend income     1,253       1,669  
  Interest expense     (47,043 )     (22,290 )
    TOTAL OTHER ITEMS     (45,790 )     (20,621 )
                 
INCOME (LOSS) BEFORE INCOME TAXES     28,947       (48,637 )
                 
Income taxes     20,377       1,400  
                 
NET INCOME (LOSS)   $ 8,570     $ (50,037 )
                 
Preferred stock dividends     3,750       3,750  
                 
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS   $ 4,820     $ (53,787 )
                 
OTHER COMPREHENSIVE INCOME NET OF TAX:                
  Unrealized gain (loss) from available for sale securities   $ 5,560     $ 1,152  
                 
Basic earnings (loss) per share   $ 0.000     $ (0.003 )
Fully diluted earnings (loss) per share   $ 0.000     $ (0.003 )
Basic weighted average shares outstanding     20,559,946       18,013,332  
Fully diuted weighted average shares outstanding     22,993,592       18,453,332  
                 
See notes to these consolidated financial statements included in the Company's Form 10-Q  

 

JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
         
    December 31, 2010   September 30, 2010
    (unaudited)   (audited)
ASSETS            
CURRENT ASSETS:            
  Cash and cash equivalents   $ 1,215,482   $ 1,354,912
  Accounts receivable, net of allowance for doubtful accounts of $140,100 and $106,987, respectively     5,670,090     6,841,607
  Marketable securities     60,631     54,748
  Loans receivable - officers     93,206     97,092
      - other     683     583
  Prepaid expenses and sundry current assets     136,802     96,608
    TOTAL CURRENT ASSETS     7,176,894     8,445,550
             
PROPERTY AND EQUIPMENT, NET     111,707     111,478
             
OTHER ASSETS:            
  Intangible assets, net     3,483,939     1,714,702
  Security deposits     63,488     53,688
  Deferred income taxes     1,007,000     1,017,000
    TOTAL OTHER ASSETS     4,554,427     2,785,390
             
TOTAL ASSETS   $ 11,843,028   $ 11,342,418
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
CURRENT LIABILITIES:            
  Note payable - bank   $ 951,335   $ 951,335
  Accounts payable - trade     3,745,622     4,516,547
  Accrued expenses and taxes payable     428,226     564,386
  Current portion of long-term debt     556,666     581,019
    TOTAL CURRENT LIABILITIES     5,681,849     6,613,287
             
LONG-TERM DEBT     835,556     13,889
DEFERRED COMPENSATION     78,568     78,568
    TOTAL OTHER LIABILITIES     914,124     92,457
             
STOCKHOLDERS' EQUITY     5,247,055     4,636,674
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 11,843,028   $ 11,342,418
             
See notes to these consolidated financial statements included in the Company's Form 10-Q
 
 
JANEL WORLD TRADE LTD. AND SUBSIDIARIES  
EBITDA RECONCILIATION WITH GAAP  
(UNAUDITED)  
   
             
    THREE MONTHS ENDED  
    December 31,  
    2010     2009  
                 
Net income (loss) per financial statement   $ 8,570     $ (50,037 )
Interest expense     47,043       22,290  
Interest and dividend (income)     (1,253 )     (1,669 )
Income tax expense     20,377       1,400  
Depreciation     13,272       20,478  
Amortization     70,763       40,263  
                 
EBITDA (Earnings before interest, taxes depreciation and amortization)   $ 158,772     $ 32,725  

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