SOURCE: Janel World Trade, Ltd.

Janel World Trade, Ltd.

February 14, 2012 16:05 ET

Janel World Trade Ltd. Reports Fiscal First Quarter 2012 Results

Company Continues Investment in Higher Margin Vertically Integrated Food Division

JAMAICA, NY--(Marketwire - Feb 14, 2012) - Janel World Trade, Ltd. (OTCBB: JLWT), a full-service global provider of integrated transportation logistics and vertically integrated supply chain services in the food industry, announced today the financial results for its three months ending December 31, 2011.

First Quarter 2012 Results

For the three months ending December 31, 2011, Janel reported revenue of $23,585,132 a decrease of $2,848,862 or down 10.8% compared to the three months ended December 31, 2010.

For the three months ending December 31, 2011, the Company reported a net loss of $(246,912) or $(0.01) per fully diluted share, compared to the prior year reported net income of $8,570, or $0.00 per fully diluted share.

Review and Outlook

"The results were disappointing for the quarter ended December 31, 2011," said James N. Jannello, Executive Vice President and Chief Executive Officer. We experienced weaker than expected freight volumes from our top customers within our transportation logistics segment when compared to the prior year and within our food industry segment (which began in April 2011) we incurred a $226,221 operating loss primarily the result of the payment and charge against revenue of $190,900 of slotting fees for the positioning of retail store shelf space in order to place product on the shelves of two major supermarket chains.

Jannello continued, "Looking ahead, we expect improvement in our financial results for fiscal 2012 within our transportation logistics business segment as the economy improves and we plan to continue the expansion of our new operating division focused on vertical supply chain services. During fiscal 2011 we invested $400,000 in our New Jersey operation and constructed a 15,000 square foot walk/drive-in freezer for our traditional freight forwarding and logistics business. The construction was completed at the end of January 2012 and we expect this new warehouse revenue, with higher gross profit margins, to kick in during the March 2012 quarter."

Jannello concluded, "We are focused on significantly improving the results of our core logistics business and moving ahead with the expansion of our new operating division catering to the food industry. We will not be satisfied until we return our core business to profitability and realize the attractive gross profit margins that we expect from our food distribution network."

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; 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; and a provider of vertically integrated supply chain services in the food industry. 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
THREE MONTHS ENDED
December 31,
2011 2010
(unaudited) (unaudited)
REVENUES $ 23,585,132 $ 26,433,994
COST AND EXPENSES:
Cost of sales 21,245,534 23,834,037
Selling, general and administrative 2,636,146 2,425,544
Depreciation and amortization 79,931 79,142
TOTAL COSTS AND EXPENSES 23,961,611 26,338,723
(LOSS) INCOME FROM OPERATIONS (376,479 ) 95,271
OTHER ITEMS:
Interest and dividend income 1,200 1,253
Interest expense (39,633 ) (47,043 )
TOTAL OTHER ITEMS (38,433 ) (45,790 )
(LOSS) INCOME BEFORE INCOME TAXES (414,912 ) 49,481
Income taxes (credits) (168,000 ) 27,359
NET (LOSS) INCOME FROM CONTINUING OPERATIONS $ (246,912 ) $ 22,122
Loss from discontinued operations, net of tax - (13,552 )
NET (LOSS) INCOME $ (246,912 ) $ 8,570
OTHER COMPREHENSIVE INCOME NET OF TAX:
Unrealized gain (loss) from available for sale securities $ 4,078 $ 5,561
TOTAL COMPREHENSIVE (LOSS) INCOME $ (242,834 ) $ 14,131
Basic earnings (loss) per share:
Continuing operations $ (0.01 ) $ -
Discontinued operations $ - $ -
Total $ (0.01 ) $ -
Diluted earnings (loss) per share:
Continuing operations $ (0.01 ) $ -
Discontinued operations $ - $ -
Total $ (0.01 ) $ -
Basic weighted average number of shares outstanding 21,626,214 20,559,946
Fully diuted weighted average number of shares outstanding 23,261,464 22,993,592
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, 2011 September 30, 2011
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 491,022 $ 504,829
Accounts receivable, net of allowance for doubtful accounts of $297,418 and $289,547, respectively 6,143,811 5,886,255
Inventories 705,710 415,934
Marketable securities 56,699 52,352
Loans receivable - officers 92,817 92,817
Prepaid expenses and sundry current assets 94,353 279,835
Tax refund receivable 148,000 148,000
TOTAL CURRENT ASSETS 7,732,412 7,380,022
PROPERTY AND EQUIPMENT, NET 483,719 459,850
OTHER ASSETS:
Intangible assets, net 3,200,886 3,271,649
Security deposits 168,799 97,299
Deferred income taxes 1,307,003 1,184,003
TOTAL OTHER ASSETS 4,676,688 4,552,951
TOTAL ASSETS $ 12,892,819 $ 12,392,823
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable - bank $ 1,301,335 $ 951,335
Note payable - other 100,000 100,000
Accounts payable - trade 5,089,787 4,858,344
Accrued expenses and taxes payable 452,997 419,649
Current portion of long-term debt - bank 73,618 86,360
Current portion of long-term debt - related party 262,984 249,618
TOTAL CURRENT LIABILITIES 7,280,721 6,665,306
LONG-TERM DEBT - BANK 279,790 298,625
LONG-TERM DEBT - RELATED PARTY 826,666 826,666
DEFERRED COMPENSATION 78,568 78,568
TOTAL OTHER LIABILITIES 1,185,024 1,203,859
STOCKHOLDERS' EQUITY 4,427,074 4,523,658
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 12,892,819 $ 12,392,823
See notes to these consolidated financial statements included in the Company's Form 10-Q

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