SOURCE: Janel World Trade, Ltd.

Janel World Trade, Ltd.

February 19, 2009 08:00 ET

Janel World Trade, Ltd. Reports Fiscal 2009 First Quarter Operating Results: Record Total Revenue Up 6%, Including Transportation Logistics Gain

JAMAICA, NY--(Marketwire - February 19, 2009) - Janel World Trade, Ltd. (OTCBB: JLWT), a full-service global provider of integrated transportation logistics services, today announced financial results for its fiscal year first quarter ended December 31, 2008.

For the three months ended December 31, 2008, the Company reported record revenue of $21,266,128, up 6% or $1,198,782, as compared to fiscal 2008 fiscal first quarter revenue of $20,067,346.

First quarter 2009 net revenue (revenue minus forwarding expenses) was $2,289,440, down from the prior year's level of $2,518,883. [Forwarding expense primarily comprises fees paid by Janel directly to cargo carriers to handle and transport its actual freight shipments on behalf of its customers between initial and final terminal points.] The decline in net revenue is primarily attributable to a higher proportion of transportation logistics revenue generated in the 2009 quarter from ocean freight (which carries a lower average profit margin than airfreight).

The overall revenue gain was the result of increased shipping activity, particularly ocean imports, by existing customers throughout the quarter and across most of the principal industry sectors served by the Company. The revenue gain of $1,331,007, or 7%, in the Company's transportation logistics segment was partially offset by a year-over-year decrease of $132,225, or 52%, over the period in the Company's computer software business. Significantly, as well, quarterly expenses related to both SG&A and amortization of intangible results declined year-over-year by $22,927 and $53,881, respectively.

James N. Jannello, Chief Executive Officer of the Company, stated, "Despite the continuing business problems facing most of our clients during the ongoing slowdown in the U.S. economy, we are most gratified that our transportation logistics revenue has managed to show continuing year-over-year gains. We are confident that this positive revenue trend is the result of our intensive efforts to both retain and expand our customer base has paid dividends. In addition, our fiscal 2008 acquisition of Ferrara has already substantially bolstered the ocean freight portion of our business in the past two quarters."

Mr. Jannello continued, "As we discussed in our full year earnings release last month, the lawsuit we filed in February 2008 against World Logistics Services, Inc. (from which we acquired the OLI business) is ongoing. And, as seen in the lower year-to-year results we have reported in our computer software segment, OLI's business potential has continued to fall short of our original acquisition-based forecasts."

"Accordingly, we believe it is more indicative of the core strength of our business to calculate our results adjusted for the OLI effect. Thus, on a non-GAAP basis, making the normal EBITDA adjustments and also excluding the OLI-related operating loss, Janel would have registered FY 2009 first quarter operating income of $126,814, as contrasted, on a GAAP basis, with our reported a net loss for the first quarter of $(115,490), more than all of which is attributable to the OLI results."

Mr. Jannello concluded, "We are particularly pleased that our first quarter results demonstrate the progress we are making in controlling our operating expenses and in mitigating the disappointing shortfall effects of the OLI acquisition. We are continuing to monitor the OLI business closely and will evaluate all available alternatives with respect to its ongoing effect on Janel's overall results. Nonetheless, we remain confident that the first quarter performance we have reported keeps us on track to produce the overall revenue and earnings gains we have earlier projected for the Company for the full fiscal 2009."

About Order Logistics, Inc.

Order Logistics, Inc., a wholly owned subsidiary of Janel World Trade, Ltd. that is based in Champaign, Illinois, provides solutions that allow companies to more effectively discover, manage, and execute global supply chain strategies. The Order Logistics team, technology, strategies, solutions and dedicated transportation resources allow organizations to access world-class visibility, information and controls without disrupting existing plans, processes, partnerships and information systems. By leveraging technology, business solutions, operational expertise and a centralized capacity network of transportation providers to take advantage of logistical opportunities, Order Logistics provides end-to-end solutions to its customers. This allows each customer to better control its unique distribution network and utilize existing information systems to their full capacity. For additional information, visit

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics services, including domestic and international freight forwarding via multi-modal carriers, customs brokerage, warehousing and distribution, and other transportation-related services. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong, Shanghai, and Shenzhen), the Company provides the comprehensive services 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 NVOCC (non-vessel operating common carrier) by the Federal Maritime Commission.

Janel World Trade, Ltd.'s headquarters are 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

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.

(Financial Highlights Follow)


                        CONSOLIDATED BALANCE SHEETS

                                      DECEMBER 31, 2008  SEPTEMBER 30, 2008
                                      ------------------ ------------------
                                          (Unaudited)         (Audited)

  Cash and cash equivalents           $        1,531,702 $        2,428,098
  Accounts receivable, net of
   allowance for doubtful accounts of
   $89,495 at December 31, 2008 and
   $129,953 at September 30, 2008              5,941,065          6,102,205
  Marketable securities                           41,435             52,044
  Loans receivable - officers                    144,383            142,574
                   - other                        24,817             25,632
  Prepaid expenses and sundry current
   assets                                        208,915            228,664
  Tax refund receivable                           83,000             83,000
                                      ------------------ ------------------
    TOTAL CURRENT ASSETS                       7,975,317          9,062,217
                                      ------------------ ------------------

PROPERTY AND EQUIPMENT, NET                      275,146            303,855
                                      ------------------ ------------------

  Intangible assets, net                       3,210,587          3,300,119
  Security deposits                               50,801             50,801
  Deferred income taxes                          810,000            754,000
                                      ------------------ ------------------
    TOTAL OTHER ASSETS                         4,071,388          4,104,920
                                      ------------------ ------------------

TOTAL ASSETS                          $       12,321,851 $       13,470,992
                                      ================== ==================

  Convertible promissory note         $          400,000 $          400,000
  Note payable - bank                            750,000            750,000
               - other                           125,000            125,000
  Accounts payable - trade                     3,249,255          3,902,719
                   - related party                 1,653            143,422
  Accrued expenses and taxes payable             166,105            303,659
  Current portion of long-term debt              804,083            786,308
                                      ------------------ ------------------
    TOTAL CURRENT LIABILITIES                  5,496,096          6,411,108
                                      ------------------ ------------------

  Long-term debt                               2,014,738          2,110,237
  Deferred compensation                           78,568             78,568
                                      ------------------ ------------------
    TOTAL OTHER LIABILITIES                    2,093,306          2,188,805
                                      ------------------ ------------------

STOCKHOLDERS’ EQUITY                           4,732,449          4,871,079
                                      ------------------ ------------------

 EQUITY                               $       12,321,851 $       13,470,992
                                      ================== ==================

                     See notes to financial statements



                                           THREE MONTHS ENDED DECEMBER 31,
                                               2008             2007

REVENUES                                  $    21,266,128  $    20,067,346
                                          ---------------  ---------------

  Forwarding expenses                          18,976,688       17,548,463
  Selling, general and administrative           2,277,613        2,300,540
  Amortization of intangible assets               107,931          161,812
                                          ---------------  ---------------
                                               21,362,232       20,010,815
                                          ---------------  ---------------

OPERATING INCOME (LOSS)                           (96,104)          56,531
                                          ---------------  ---------------

  Interest and dividend income                      3,876           17,254
  Interest expense                                (58,262)         (33,636)
                                          ---------------  ---------------
    TOTAL OTHER ITEMS                             (54,386)         (16,382)
                                          ---------------  ---------------

INCOME (LOSS) BEFORE INCOME TAXES                (150,490)          40,149

Income taxes (credit)                             (35,000)          18,100
                                          ---------------  ---------------

NET INCOME (LOSS)                                (115,490)          22,049

Preferred stock dividends                           3,750            3,750
                                          ---------------  ---------------

 COMMON STOCKHOLDERS                      $      (119,240) $        18,299
                                          ===============  ===============

    Unrealized loss from available for
     sale securities                      $       (10,867) $        (7,008)
                                          ===============  ===============
    Basic earnings (loss) per share       $          (.01) $         .0011
                                          ===============  ===============
    Fully diluted earnings (loss) per
     share                                $          (.01) $         .0011
                                          ===============  ===============
    Basic weighted number of shares
     outstanding                               17,514,738       16,906,000
                                          ===============  ===============
    Fully diluted weighted number of
     shares outstanding                        17,914,738       17,306,000
                                          ===============  ===============

                     See notes to financial statements

                                                  YEAR ENDED DECEMBER 31,
                                                    2008          2007
                                                -----------   ------------

NET INCOME (LOSS) PER FINANCIAL STATEMENT          (115,490)        22,049

INTEREST EXPENSE                                     58,262         33,636

INCOME TAX EXPENSE (CREDIT)                         (35,000)        18,100

DEPRECIATION EXPENSE                                 26,948         31,324

AMORTIZATION EXPENSE                                107,931        161,812
                                                -----------   ------------

EBITDA (Earnings before interest, taxes,
 depreciation and amortization)                      42,651        266,921

OLI OPERATING LOSS (INCOME)                          84,163        (40,344)
                                                -----------   ------------

Earnings before interest, taxes, depreciation,
 amortization and OLI-related operating
 loss/(income)                                      126,814        226,577
                                                ===========   ============

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