XPO Logistics, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - CURRENT REPORT - XPO Logistics, Inc.	express_8k-022311.htm

Exhibit 99.1

Contact:

Express-1 Expedited Solutions, Inc.

Mike Welch

269-429-9761

Mike.Welch@xpocorporate.com

XPO REPORTS SOLID FOURTH QUARTER REVENUE GROWTH OF 31%

SAINT JOSEPH, Mich. – February 23, 2011 – Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the fourth quarter ended December 31, 2010.

For the year, revenues from continuing operations increased by 58% to approximately $158 million during fiscal 2010 compared to $100 million in fiscal 2009. During the same period, net income improved by 187% to $4,888,000 or $0.15 per fully diluted share compared to $1,705,000 or $0.05 per fully diluted share during 2009.

Additionally, in the fourth quarter, revenue from continuing operations increased by 31% to $41.6 million compared to $31.6 million in the fourth quarter of 2009. During the same period, net income improved 36% to $820,000 or $0.02 per fully diluted share compared to $601,000 or $0.02 per diluted share for the fourth quarter of 2009.

Michael R. Welch, the Company’s CEO commented, “2010 was a banner year for XPO in which we made solid gains in both growth and profitability. We continue to believe that our integrated asset-light platform is well positioned for anything the economy can throw at us in 2011. We look forward to increased revenue and bottom line growth in 2011.”

“Our management team has continued to execute on its growth strategy in 2010 and we are excited about the possibilities in 2011,” stated Board Chairman, Jim Martell.

Updated final earnings announcement date

Management will conduct a conference call Thursday, February 24, 2011 at 10:00 a.m. EST to discuss the Company’s fourth quarter financial results. Those interested in accessing a live or archived Webcast of the call should visit the Company’s Website at www.express-1.com. Those wishing to take part in the live teleconference call can dial 877-407-0782 with international participants dialing 201-689-8567. A playback will be available until midnight on March 3, 2011. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 367218.

About Express-1 Expedited Solutions, Inc.

Express-1 Expedited Solutions, Inc. is a non-asset based services organization focused on premium transportation through its business units, Express-1, Inc. (Buchanan, Michigan), Concert Group Logistics, Inc. (CGL) (Downers Grove, Illinois), and Bounce Logistics, Inc. (South Bend, Indiana). These business units are focused on premium services that include same-day, time-sensitive transportation and domestic and international freight forwarding. Serving more than 4,000 customers, the Company’s premium transportation offerings are provided through one of six operations centers; Buchanan, Michigan; South Bend, Indiana; Downers Grove, Illinois; Rochester Hills, Michigan; Tampa, Florida, and Miami, Florida. Express-1 Expedited Solutions, Inc. is publicly traded on the NYSE AMEX Equities Exchange under the symbol XPO. For more information about the Company, visit www.xpocorporate.com

Forward-Looking Statements

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs, as well as assumptions made by and information currently available to management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance are subject to risks. These risks include: the acquisition of businesses or the launch of new lines of business could increase operating expenses and dilute operating margins; increased competition could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with customers, whether due to competition or other factors; the inability to comply with regulatory requirements governing our business operations; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above, you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

Express-1 Expedited Solutions, Inc.
Consolidated Balance Sheets

	December 31,			December 31,
	2010			2009
Assets
Current assets:
Cash	$	561,000		$	495,000
Accounts receivable, net of allowances of $136,000 and $225,000, respectively		24,272,000			17,569,000
Prepaid expenses		257,000			158,000
Deferred tax asset, current		314,000			353,000
Income Tax Receivable		1,348,000			-
Other current assets		813,000			459,000
Total current assets		27,565,000			19,034,000

Property and equipment, net of $3,290,000 and $2,651,000 in accumulated depreciation, respectively		2,960,000			2,797,000
Goodwill		16,959,000			16,959,000
Identified intangible assets, net of $2,827,000 and $2,198,000 in accumulated amortization, respectively		8,546,000			9,175,000
Loans and advances		126,000			30,000
Other long-term assets		516,000			1,044,000
Total long-term assets		29,107,000			30,005,000
Total assets	$	56,672,000		$	49,039,000

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	8,756,000		$	6,769,000
Accrued salaries and wages		1,165,000			310,000
Accrued expenses, other		2,877,000			2,272,000
Line of credit		-			6,530,000
Current maturities of long-term debt		1,680,000			1,215,000
Other current liabilities		773,000			968,000
Total current liabilities		15,251,000			18,064,000

Line of credit		2,749,000			-
Notes payable and capital leases, net of current maturities		2,083,000			213,000
Deferred tax liability, long-term		2,032,000			1,156,000
Other long-term liabilities		544,000			1,202,000
Total long-term liabilities		7,408,000			2,571,000

Stockholders’ equity:
Preferred stock, $.001 par value; 10,000,000 shares, no shares issued or outstanding		-			-
Common stock, $.001 par value; 100,000,000 shares authorized; 32,687,522 and 32,215,218 shares issued, respectively; and 32,507,522 and 32,035,218 shares outstanding, respectively		33,000			32,000
Additional paid-in capital		27,208,000			26,488,000
Treasury stock, at cost, 180,000 shares held		(107,000	)		(107,000	)
Accumulated earnings		6,879,000			1,991,000
Total stockholders’ equity		34,013,000			28,404,000
Total liabilities and stockholders' equity	$	56,672,000		$	49,039,000

Express-1 Expedited Solutions, Inc.
Consolidated Statements of Operations

	Three Months Ended				Twelve Months Ended
	December 31,		December 31,		December 31,		December 31,
	2010		2009		2010		2009
Revenues
Operating revenue	$	41,557,000	$	31,610,000	$	157,987,000	$	100,136,000
Expenses
Direct expense		35,134,000		26,452,000		130,587,000		83,396,000
Gross margin		6,423,000		5,158,000		27,400,000		16,740,000
Sales, general and administrative expense		5,062,000		4,036,000		18,954,000		13,569,000
Operating income from continuing operations		1,361,000		1,122,000		8,446,000		3,171,000
Other expense		38,000		23,000		140,000		51,000
Interest expense		65,000		31,000		205,000		105,000
Income from continuing operations before income tax		1,258,000		1,068,000		8,101,000		3,015,000
Income tax provision		438,000		467,000		3,213,000		1,325,000
Income from continuing operations		820,000		601,000		4,888,000		1,690,000
Income from discontinued operations, net of tax		-		-		-		15,000
Net income	$	820,000	$	601,000	$	4,888,000	$	1,705,000

Basic income per share
Income from continuing operations	$	0.03	$	0.02	$	0.15	$	0.05
Income from discontinued operations		-		-		-		-
Net income		0.03		0.02		0.15		0.05

Diluted income per share
Income from continuing operations		0.02		0.02		0.15		0.05
Income from discontinued operations		-		-		-		-
Net income	$	0.02	$	0.02	$	0.15	$	0.05

Weighted average common shares outstanding
Basic weighted average common shares outstanding		32,498,040		32,035,218		32,241,383		32,035,218
Diluted weighted average common shares outstanding		34,025,726		32,270,463		33,115,981		32,167,447

Express-1 Expedited Solutions, Inc.
Comparative Financial Table
For the Twelve Months Ended December 31,

							Year to Year Change						Percent of Revenue
	2010			2009			In Dollars			In Percentage			2010			2009
Revenues
Express-1	$	76,644,000		$	50,642,000		$	26,002,000			51.3	%		48.5	%		50.6	%
Concert Group Logistics		65,222,000			41,162,000			24,060,000			58.5	%		41.3	%		41.1	%
Bounce Logistics		19,994,000			10,425,000			9,569,000			91.8	%		12.7	%		10.4	%
Intercompany Eliminations		(3,873,000	)		(2,093,000	)		(1,780,000	)		-85.0	%		-2.5	%		-2.1	%
Total Revenues		157,987,000			100,136,000			57,851,000			57.8	%		100.0	%		100.0	%

Direct Expenses
Express-1		59,226,000			39,874,000			19,352,000			48.5	%		77.3	%		78.7	%
Concert Group Logistics		58,549,000			36,979,000			21,570,000			58.3	%		89.8	%		89.8	%
Bounce Logistics		16,685,000			8,636,000			8,049,000			93.2	%		83.5	%		82.8	%
Intercompany Eliminations		(3,873,000	)		(2,093,000	)		(1,780,000	)		-85.0	%		100.0	%		100.0	%
Total Direct Expenses		130,587,000			83,396,000			47,191,000			56.6	%		82.7	%		83.3	%
Gross Margin
Express-1		17,418,000			10,768,000			6,650,000			61.8	%		22.7	%		21.3	%
Concert Group Logistics		6,673,000			4,183,000			2,490,000			59.5	%		10.2	%		10.2	%
Bounce Logistics		3,309,000			1,789,000			1,520,000			85.0	%		16.5	%		17.2	%
Total Gross Margin		27,400,000			16,740,000			10,660,000			63.7	%		17.3	%		16.7	%
Selling, General & Administrative
Express-1		9,812,000			7,322,000			2,490,000			34.0	%		12.8	%		14.5	%
Concert Group Logistics		4,791,000			3,062,000			1,729,000			56.5	%		7.3	%		7.4	%
Bounce Logistics		2,444,000			1,331,000			1,113,000			83.6	%		12.2	%		12.8	%
Corporate		1,907,000			1,854,000			53,000			2.9	%		1.2	%		1.9	%
Total Selling, General & Administrative		18,954,000			13,569,000			5,385,000			39.7	%		12.0	%		13.6	%
Operating Income from Continuing Operations
Express-1		7,606,000			3,446,000			4,160,000			120.7	%		9.9	%		6.8	%
Concert Group Logistics		1,882,000			1,121,000			761,000			67.9	%		2.9	%		2.7	%
Bounce Logistics		865,000			458,000			407,000			88.9	%		4.3	%		4.4	%
Corporate		(1,907,000	)		(1,854,000	)		(53,000	)		-2.9	%		-1.2	%		-1.9	%
Operating Income from Continuing Operations		8,446,000			3,171,000			5,275,000			166.4	%		5.3	%		3.2	%
Interest Expense		205,000			105,000			100,000			95.2	%		0.1	%		0.1	%
Other Expense		140,000			51,000			89,000			174.5	%		0.1	%		0.1	%
Income from Continuing Operations Before Tax		8,101,000			3,015,000			5,086,000			168.7	%		5.1	%		3.0	%
Tax Provision		3,213,000			1,325,000			1,888,000			142.5	%		2.0	%		1.3	%
Income from Continuing Operations		4,888,000			1,690,000			3,198,000			189.2	%		3.1	%		1.7	%
Income from Discontinued Operations, Net of Tax		-			15,000			(15,000	)		-100.0	%		0.0	%		0.0	%
Net Income	$	4,888,000		$	1,705,000		$	3,183,000			186.7	%		3.1	%		1.7	%

Express-1 Expedited Solutions, Inc.
Comparative Financial Table
For the Three Months Ended December 31,

							Quarter to Quarter Change						Percent of Revenue
	2010			2009			In Dollars			In Percentage			2010			2009
Revenues
Express-1	$	18,468,000		$	16,960,000		$	1,508,000			8.9	%		44.4	%		53.7	%
Concert Group Logistics		17,624,000			12,423,000			5,201,000			41.9	%		42.4	%		39.3	%
Bounce Logistics		6,500,000			3,336,000			3,164,000			94.8	%		15.6	%		10.6	%
Intercompany Eliminations		(1,035,000	)		(1,109,000	)		74,000			6.7	%		-2.4	%		-3.6	%
Total Revenues		41,557,000			31,610,000			9,947,000			31.5	%		100.0	%		100.0	%

Direct Expenses
Express-1		14,868,000			13,775,000			1,093,000			7.9	%		80.5	%		81.2	%
Concert Group Logistics		15,896,000			11,027,000			4,869,000			44.2	%		90.2	%		88.8	%
Bounce Logistics		5,405,000			2,759,000			2,646,000			95.9	%		83.2	%		82.7	%
Intercompany Eliminations		(1,035,000	)		(1,109,000	)		74,000			6.7	%		100.0	%		100.0	%
Total Direct Expenses		35,134,000			26,452,000			8,682,000			32.8	%		84.5	%		83.7	%
Gross Margin
Express-1		3,600,000			3,185,000			415,000			13.0	%		19.5	%		18.8	%
Concert Group Logistics		1,728,000			1,396,000			332,000			23.8	%		9.8	%		11.2	%
Bounce Logistics		1,095,000			577,000			518,000			89.8	%		16.8	%		17.3	%
Total Gross Margin		6,423,000			5,158,000			1,265,000			24.5	%		15.5	%		16.3	%
Selling, General & Administrative
Express-1		2,657,000			2,003,000			654,000			32.7	%		14.4	%		11.8	%
Concert Group Logistics		1,209,000			1,113,000			96,000			8.6	%		6.9	%		9.0	%
Bounce Logistics		748,000			427,000			321,000			75.2	%		11.5	%		12.8	%
Corporate		448,000			493,000			(45,000	)		-9.1	%		1.1	%		1.6	%
Total Selling, General & Administrative		5,062,000			4,036,000			1,026,000			25.4	%		12.2	%		12.8	%
Operating Income from Continuing Operations
Express-1		943,000			1,182,000			(239,000	)		-20.2	%		5.1	%		7.0	%
Concert Group Logistics		519,000			283,000			236,000			83.4	%		2.9	%		2.3	%
Bounce Logistics		347,000			150,000			197,000			131.3	%		5.3	%		4.5	%
Corporate		(448,000	)		(493,000	)		45,000			9.7	%		-1.1	%		-1.6	%
Operating Income from Continuing Operations		1,361,000			1,122,000			239,000			21.3	%		3.3	%		3.5	%
Other Expense		38,000			23,000			15,000			65.2	%		0.1	%		0.1	%
Interest Expense		65,000			31,000			34,000			109.7	%		0.2	%		0.1	%
Income from Continuing Operations Before Tax		1,258,000			1,068,000			190,000			17.8	%		3.0	%		3.4	%
Tax Provision		438,000			467,000			(29,000	)		-6.2	%		1.1	%		1.5	%
Net Income	$	820,000		$	601,000		$	219,000			36.4	%		2.0	%		1.9	%

XPO Logistics, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE - February 23, 2011

Attached files

XPO Logistics, Inc. Reports