SOURCE: Janel World Trade, Ltd.

Janel World Trade, Ltd.

December 29, 2010 08:00 ET

Janel World Trade Ltd. Reports 74% Increase in Fourth Quarter Revenue vs. Fourth Quarter 2009 Reflecting an Increase of $13.3 Million

Record Revenue for Year-End 2010 Up 23.2% Over 2009 to $88.5 Million: Annual Earnings Improve by $1.6 Million

JAMAICA, NY--(Marketwire - December 29, 2010) - Janel World Trade, Ltd. (OTCBB: JLWT), a full-service global provider of integrated transportation logistics and environmental services, announced today financial results for its year ending September 30, 2010.

Year End Results

For the fiscal year ending September 30, 2010, Janel reported record annual revenue of $88,485,931, an increase of $16,633,125 or up 23.2% compared to fiscal year-end 2009. The 2010 year-end revenue represents the highest annual revenue reported in the Company's history. This annual milestone follows successive record revenues for the second, third and fourth quarters of 2010. The Company's core logistics business units continue to outperform expectations in a recovering economy, focusing on global shipping lanes of traffic exhibiting strong growth and the Company's core logistics services.

Reflecting the successive quarters of record revenue and the continued focus on the management of operating expenses, Janel reported a year-end 2010 net income available to common shareholders of $367,849, or $.018 per fully diluted share, an improvement of $1,624,047, compared to a year-end 2009 net loss of $(1,256,198), or $(.070) per fully diluted share. The prior year included a one-time non-cash pre-tax charge of $1,066,240 for impairment of goodwill.

Fourth Quarter 2010 Results

For the three months ended September 30, 2010, the Company reported total revenue of $31,212,341, up $13,302,205 or 74.3% as compared to the fourth quarter of fiscal 2009. Because of the same focus and positive factors affecting the year-end results, the Company reported net income available to common shareholders of $152,667 or $.007 per fully diluted share in 2010, a significant improvement in earnings of $891,543 from the 2009 reported net loss of $(738,876), or $(.041) per fully diluted share.

The improvement in revenue and earnings for the fourth quarter ended September 30, 2010 is a continuation of three successive quarters of record revenue combined and the continued aggressive management of all operating costs and overheads. The prior year included a one-time non-cash pre-tax charge of $1,066,240 for impairment of goodwill.

Review and Outlook

"We are very pleased with our results for the quarter and fiscal year ended September 30, 2010," said James N. Jannello, Executive Vice President and Chief Executive Officer. "Our 2010 year-end revenue and earnings reflect the many hours of focus and hard work by the management and people of Janel. Not only did we have our first quarter of over $30 Million in revenue, but we have managed expenses at the same time which is improving our bottom line. The fourth quarter revenue and continued strong quarterly earnings, plus our recent acquisition of the assets of Ferrara International Logistics (Ferrara) with an expected $7.0 million of additional annual revenue, continue to make us optimistic about the coming year ahead."

Jannello continued, "Looking ahead to 2011, our expectation is to build a company exceeding $100 million in annual revenue with continued improvement in net profitability, based on a continuing modest recovery in global economic conditions. Although always difficult to predict, 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 continue to report improvement in their businesses and adding 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), the Far East (Hong Kong, Shanghai, and Shenzhen) and Central America (El Salvador, Honduras and Guatemala) , 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               YEAR ENDED
                         SEPTEMBER 30,                SEPTEMBER 30,
                  --------------------------  ----------------------------
                      2010          2009          2010           2009
                                                (audited)      (audited)

REVENUES          $ 31,212,341  $ 17,910,136  $  88,485,931  $  71,852,806
                  ------------  ------------  -------------  -------------


COSTS AND
 EXPENSES:
  Forwarding
   expenses         28,660,471    15,715,387     79,572,253     63,418,743
  Selling, general
   and
   administrative    2,178,924     2,030,657      7,852,122      8,438,189
  Depreciation and
   Amortization         62,953       182,146        246,205        552,707
                  ------------  ------------  -------------  -------------
    TOTAL COSTS
     AND EXPENSES   30,902,347    17,928,190     87,670,580     72,409,639
                  ------------  ------------  -------------  -------------


OPERATING INCOME
 (LOSS)                309,994       (18,054)       815,351       (556,833)
                  ------------  ------------  -------------  -------------

OTHER ITEMS:
  Impairment loss            -    (1,066,240)             -     (1,066,240)
  Interest and
   dividend income       1,031         1,010          4,959         14,581
  Interest expense     (21,608)      (58,842)      (101,415)      (224,706)
                  ------------  ------------  -------------  -------------
    TOTAL OTHER
     ITEMS             (20,577)   (1,124,072)       (96,456)    (1,276,365)
                  ------------  ------------  -------------  -------------


INCOME (LOSS)
 BEFORE INCOME
 TAXES                 289,417    (1,142,126)       718,895     (1,833,198)

Income taxes
 (credits)             133,000      (407,000)       336,000       (592,000)
                  ------------  ------------  -------------  -------------

NET INCOME
 (LOSS)                156,417      (735,126)       382,895     (1,241,198)

Preferred stock
 dividends               3,750         3,750         15,046         15,000
                  ------------  ------------  -------------  -------------

NET INCOME (LOSS)
 AVAILABLE TO
 COMMON
 STOCKHOLDERS     $    152,667  $   (738,876) $     367,849  $  (1,256,198)
                  ============  ============  =============  =============

OTHER
 COMPREHENSIVE
 INCOME
NET OF TAX:
Unrealized
 gain(loss) from
 available for
 sale securities  $      4,626  $      6,588  $       2,469  $        (197)
                  ============  ============  =============  =============
Basic earnings
 (loss) per share $       .008  $      (.042) $        .020  $       (.072)
                  ============  ============  =============  =============

Fully diluted
 earnings (loss)
 per share        $       .007  $     ( .041) $        .018  $      ( .070)
                  ============  ============  =============  =============

Weighted number
 of shares
 outstanding        18,503,082    17,511,485     18,223,942     17,545,712
                  ============  ============  =============  =============

Fully diluted
 weighted number
 of shares
 outstanding        21,010,582    17,911,485     20,843,733     17,945,712
                  ============  ============  =============  =============


See notes to these consolidated financial statements included in the
Company's Form 10-K




                  JANEL WORLD TRADE LTD. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                                SEPTEMBER 30, SEPTEMBER 30,
                                                    2010          2009
                                                ------------- -------------
                                                  (Audited)     (Audited)

                                 ASSETS
CURRENT ASSETS:
Cash and cash equivalents                       $   1,354,912 $   1,483,150
Accounts receivable, net of allowance for
 doubtful
accounts of $106,987 and $85,368, respectfully      6,841,607     4,616,244
Marketable securities                                  54,748        52,100
Loans receivable - officers                            97,092       114,616
- other                                                   583         4,908
Prepaid expenses and sundry current assets             96,608       239,437
Tax refund receivable                                       -       289,000
                                                ------------- -------------
TOTAL CURRENT ASSETS                                8,445,550     6,799,455
                                                ------------- -------------

PROPERTY AND EQUIPMENT, NET                           111,478       179,779

OTHER ASSETS:
Security deposits                                      53,688        55,991
Deferred income taxes                               1,017,000     1,114,000
Intangible assets, net                              1,714,702     1,875,754
                                                ------------- -------------
TOTAL OTHER ASSETS                                  2,785,390     3,045,745
                                                ------------- -------------

TOTAL ASSETS                                    $  11,342,418 $  10,024,979
                                                ============= =============

                LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade                        $   4,516,547 $   3,116,830
- related party                                             -       100,078
Accrued expenses and taxes payable                    564,386       422,110
Note payable - bank                                   951,335             -
- other                                                     -       125,000
Current portion of long-term debt                     581,019       544,141
                                                ------------- -------------
TOTAL CURRENT LIABILITIES                           6,613,287     4,308,159
                                                ------------- -------------

OTHER LIABILITIES:
Long-term debt                                         13,889     1,506,096
Deferred compensation                                  78,568        78,568
                                                ------------- -------------
TOTAL OTHER LIABILITIES                                92,457     1,584,664
                                                ------------- -------------

STOCKHOLDERS' EQUITY                                4,636,674     4,132,156
                                                ------------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $  11,342,418 $  10,024,979
                                                ============= =============


See notes to these consolidated financial statements included in the
Company's Form 10-K






                  JANEL WORLD TRADE LTD AND SUBSIDIARIES
                      EBITDA RECONCILIATION WITH GAAP
                                (UNAUDITED)


                         THREE MONTHS ENDED             YEAR ENDED
                            SEPTEMBER 30,              SEPTEMBER 30,
                    --------------------------  --------------------------
                        2010          2009          2010          2009


Net income (loss)
 per financial
 statement          $    156,417  $   (735,126) $    382,895  $ (1,241,198)

Interest expense          21,608        58,842       101,415       224,706

Interest and
 dividend (income)        (1,031)       (1,010)       (4,959)      (14,581)

Income tax expense
 (credit)                133,000      (407,000)      336,000      (592,000)

Depreciation
 expense                  22,690        34,272        85,152       136,315

Amortization
 expense                  40,263       147,874       161,053       416,392
                    ------------  ------------  ------------  ------------

EBITDA (Earnings
 before interest,
 taxes,
 depreciation and
 amortization       $    372,947  $   (902,148) $  1,061,556  $ (1,070,366)
                    ------------  ------------  ------------  ------------

Impairment loss                -     1,066,240             -     1,066,240
                    ------------  ------------  ------------  ------------

EBITDA adjusted for
 impairment loss    $    372,947  $    164,092  $  1,061,556  $     (4,126)
                    ------------  ------------  ------------  ------------


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