SOURCE: myFreightWorld Technologies Inc.

November 17, 2010 13:22 ET

myFreightWorld Technologies Reports Third Quarter Financial Results

Non-Contractual Revenue Increases 225%; EBITDA Improves on New Business Strategy

OVERLAND PARK, KS--(Marketwire - November 17, 2010) - myFreightWorld Technologies Inc. (PINKSHEETS: MYFT) (www.myfreightworld.com) announced today its unaudited financial results for the third quarter ended September 30, 2010. Full details are available at www.pinksheets.com.

During the quarter, myFreightWorld continued to focus on increasing its non-contractual revenue, while reducing its contractual revenue. Contractual revenue is defined by collecting revenues from the end user (customer) and then paying carriers under contract. Non-contractual revenue is defined by providing software and services to customers for a fee and without a contract, and the customer pays the carrier.

"In 2010, we made a strategic move toward higher margin revenue streams, primarily from our non-contracted business, which greatly reduces our working capital requirements as compared to our contracted business," said president and CEO of myFreightWorld, J. Michael Head. "As a result, our non-contractual revenues posted a gain of 225% year-over-year in the third quarter of 2010, and increased by nearly 120% year-to-date compared to the same period of last year. This growth is attributed to establishing a new customer base as well as converting some of our contractual customers into non-contractual users."

"The fact that we were able to maintain our net margins, and general and administrative costs, resulted in a 5% increase in our Earnings Before Income Taxes, Depreciation and Amortization (EBITDA) in the third quarter of 2010. We were able to control costs, despite growing our non-contracted business at such a fast pace. This demonstrates the scalability and success of our new business model. We are positioned to continue our top-line growth from non-contractual revenues, and should continue to grow EBITDA in 2011. We may also evaluate a return to contractual revenue should market trends change or a new growth opportunity arises," added Head.

The Company's third quarter of 2010 results included the acquisition of All Modes Transportation, Inc. on September 1, 2010, which added $370,000 in revenue, $67,000 in gross margin, and reduced EBITDA and net income by a total of $1,909. "We experienced higher interest costs due to the completion of our acquisition, but intend to raise capital in the near future to pay this off in full," added Head. "All Modes is our second acquisition to-date, and we continue to combine our retail division with their operations. This integration will allow us to substantially reduce our overhead and provide a more cost-efficient operating platform to attract future acquisitions and continue our strong, internal growth."

The Company plans to host a conference call to discuss its third quarter 2010 financial results shortly following the Thanksgiving holiday. Details of the call will be issued in a forthcoming press release.

About myFreightWorld Technologies, Inc.

myFreightWorld Technologies Inc. is a business services firm that specializes in providing technology, transportation and supply chain management services to third party logistics managers (3PLs) and transportation intermediaries (TIs), primarily in the United States. Leveraging its proprietary Web-based software platform, the Company provides its 3PL and Motor Carrier customers with a customer relationship management (CRM) information pipeline that provides complete visibility to shippers, consignees and other interested parties of shipments during the entire Shipment Life Cycle. For more information, see www.myfreightworld.com.

Notice on Forward-Looking Statements

myFreightWorld's vision is to realize shareholder value and wealth through monetization of its projects and potential discoveries through partnerships with significant players with ready capital and production expertise. The matters set forth in this press release may contain forward-looking statements regarding myFreightWorld and its business within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date on which they are made and myFreightWorld undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the OTC Pinksheets including the company's Annual Report, Quarterly Reports and other periodic filings.

(financial table follows)

myFreightWorld Technologies Inc. Income Statement for the Three- and Nine-Months Ended September 30 (Figures include All Modes Transportation, Inc.)  
                         
      Q3   Q3   %     YTD   YTD   %  
      2009   2010   Change     2009   2010   Change  
                               
Contracted Revenue   $ 4,274,269   $ 2,245,672   -47.5 %   $ 12,704,699   $ 7,532,323   -40.7 %
Non-Contracted Revenue   $ 2,245,672   $ 7,308,382   225.4 %   $ 7,788,737   $ 17,109,015   119.7 %
                                       
Managed Revenue   $ 6,519,941   $ 9,554,054   46.5 %   $ 20,493,436   $ 24,641,338   20.2 %
                                       
Gross Revenue   $ 4,274,269   $ 2,245,672   -47.5 %   $ 12,704,699   $ 7,532,323   -40.7 %
Gross Margin   $ 754,308   $ 568,265   -24.6 %   $ 2,188,806   $ 1,623,985   -25.80 %
Commissions   $ 326,834   $ 148,938   -54.43 %   $ 1,058,869   $ 442,923   -58.17 %
Net Margin   $ 427,474   $ 419,327   -1.91 %   $ 1,129,937   $ 1,181,062   4.52 %
G & A Expenses   $ 346,629   $ 334,625   -3.46 %   $ 1,019,326   $ 1,070,513   5.02 %
EBITDA     $ 80,845   $ 84,702   4.77 %   $ 110,611   $ 110,549   -0.06 %
Interest and Depreciation   $ 16,602   $ 112,352   576.74 %   $ 46,499   $ 316,622   580.92 %
Net Income   $ 23,000     -$27,650   -220.22 %   $ 64,112     -$206,073   -421.43 %

Contact Information

  • Contact:
    J. Michael Head
    CEO
    myFreightWorld Technologies Inc.
    Tel: 877-549-9438
    Email Contact