Attached files
| file | filename |
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| 10-Q - JANEL CORP | v222630_10q.htm |
| EX-31.3 - JANEL CORP | v222630_ex31-3.htm |
| EX-31.2 - JANEL CORP | v222630_ex31-2.htm |
| EX-31.1 - JANEL CORP | v222630_ex31-1.htm |
| EX-32.1 - JANEL CORP | v222630_ex32-1.htm |
Exhibit 99.1
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For Immediate Release
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Contact: Investor Relations at
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Janel World Trade
(404) 261-1196
IR_Janelgroup.net
JANEL WORLD TRADE LTD. REPORTS SECOND QUARTER REVENUE OF $22.7M AN 18% INCREASE VS. PRIOR YEAR SECOND QUARTER
REVENUE INCREASES TO $49M FOR THE SIX MONTHS - UP 35.5% - WHEN COMPARED TO THE PRIOR YEAR
JAMAICA, NY – May 16, 2011 -- Janel World Trade, Ltd. (OTC BB: JLWT), a full-service global provider of integrated transportation logistics and vertically integrated supply chain services in the food industry, announced today financial results for the three and six months ending March 31, 2011.
Second Quarter Results
For the three months ending March 31, 2011, Janel reported revenue of $22,701,632, an increase of $3,430,677 or up 17.8% compared to the three months ended March 31, 2010.
For the three months ending March 31, 2011, the Company reported a net loss available to common shareholders of $(144,021) or $(0.006) per fully diluted share, down from the prior year reported net income available to common shareholders of $102,334, or $0.006 per fully diluted share.
Fiscal Year to Date Six Month Results
For the six months ending March 31, 2011, Janel reported revenue of $49,135,626, an increase of $12,866,739 or up 35.5% compared to the six months ended March 31, 2010.
For the six months ending March 31, 2011, the Company reported a net loss available to common shareholders of $(139,201) or $(0.006) per fully diluted share, down from the prior year reported net income available to common shareholders of $48,547, or $0.003 per fully diluted share.
Review and Outlook
“Taking into account that our first and second quarters are historically the weakest due to seasonal factors, the results were disappointing for the quarter ended March 31, 2011” said James N. Jannello, Executive Vice President and Chief Executive Officer. “We experienced slightly higher freight volumes from most of our customers when compared to the prior year, and the bulk of the increase in volume that we did see was from our larger customers but it was at a higher cost of sales than the prior year so the net impact of the revenue increase to us did not fall to our bottom line. Prior to this quarter’s earnings we had four consecutive quarters reflecting record quarterly revenue and positive earnings. In addition, during the quarter we prepared for the launch of our new operating division which is focused on vertical integrated supply chain services primarily in the food industry and, as previously announced, the division has already signed a long term agreement with its first customer to handle all supply chain services. We expect this new division to substantially contribute to our overall gross profit margins.”
Jannello continued, “Looking ahead, our expectation is for improvement in our financial results for 2011 and exceeding $100 million in annual revenue. Our new operating division focused on vertical supply chain services, our recent asset acquisition of Ferrara International Logistics and our core logistics business units performing in a recovering economy, along with our anticipation that our customers will continue to report improvement in their respective businesses and the addition of 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 excited about the significant profit potential in our new operating division catering to the food industry. By being involved from the production to the selling of food products, Janel will be realizing higher gross profit margins than just capturing the logistics portion of the distribution channel. We look forward to working closely with our first client, Paul Sorvino Foods, Inc.”
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.
Contact:
Investor Relations
Janel World Trade
(404) 261-1196
IR_Janelgroup.net
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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THREE MONTHS ENDED
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SIX MONTHS ENDED
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March 31,
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March 31,
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2011
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2010
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2011
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2010
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REVENUES
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$ | 22,701,632 | $ | 19,270,955 | $ | 49,135,626 | $ | 36,268,887 | ||||||||
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COST AND EXPENSES:
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Forwarding expenses
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20,364,643 | 17,196,205 | 44,198,680 | 32,280,020 | ||||||||||||
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Selling, general and administrative
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2,456,266 | 1,839,712 | 4,897,451 | 3,721,104 | ||||||||||||
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Depreciation and amortization
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95,563 | 60,954 | 179,598 | 121,695 | ||||||||||||
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TOTAL COSTS AND EXPENSES
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22,916,472 | 19,096,871 | 49,275,729 | 36,122,819 | ||||||||||||
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OPERATING (LOSS) INCOME
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(214,840 | ) | 174,084 | (140,103 | ) | 146,068 | ||||||||||
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OTHER ITEMS:
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Interest and dividend income
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934 | 1,137 | 2,187 | 2,806 | ||||||||||||
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Interest expense
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(25,742 | ) | (32,537 | ) | (72,785 | ) | (54,827 | ) | ||||||||
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TOTAL OTHER ITEMS
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(24,808 | ) | (31,400 | ) | (70,598 | ) | (52,021 | ) | ||||||||
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(LOSS) INCOME BEFORE INCOME TAXES
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(239,648 | ) | 142,684 | (210,701 | ) | 94,047 | ||||||||||
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Income taxes (credits)
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(99,377 | ) | 36,600 | (79,000 | ) | 38,000 | ||||||||||
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NET (LOSS) INCOME
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$ | (140,271 | ) | $ | 106,084 | $ | (131,701 | ) | $ | 56,047 | ||||||
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Preferred stock dividends
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3,750 | 3,750 | 7,500 | 7,500 | ||||||||||||
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NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS
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$ | (144,021 | ) | $ | 102,334 | $ | (139,201 | ) | $ | 48,547 | ||||||
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OTHER COMPREHENSIVE INCOME NET OF TAX:
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Unrealized gain (loss) from available for sale securities
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$ | 2,869 | $ | 3,120 | $ | 8,429 | $ | 4,272 | ||||||||
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Basic earnings (loss) per share
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$ | (0.007 | ) | $ | 0.006 | $ | (0.007 | ) | $ | 0.003 | ||||||
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Fully diluted earnings (loss) per share
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$ | (0.006 | ) | $ | 0.006 | $ | (0.006 | ) | $ | 0.003 | ||||||
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Basic weighted average shares outstanding
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21,048,729 | 18,013,332 | 20,801,652 | 18,013,332 | ||||||||||||
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Fully diuted weighted average shares outstanding
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22,704,285 | 18,453,332 | 22,850,528 | 18,453,332 | ||||||||||||
See notes to these consolidated financial statements included in the Company’s Form 10-Q
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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March 31,
2011
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September 30,
2010
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(unaudited)
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(audited)
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 732,225 | $ | 1,354,912 | ||||
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Accounts receivable, net of allowance for doubtful accounts of $163,375 and $106,987, respectively
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5,304,737 | 6,841,607 | ||||||
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Marketable securities
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63,499 | 54,748 | ||||||
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Loans receivable - officers
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94,219 | 97,092 | ||||||
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- other
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- | 583 | ||||||
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Prepaid expenses and sundry current assets
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145,293 | 96,608 | ||||||
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TOTAL CURRENT ASSETS
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6,339,973 | 8,445,550 | ||||||
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PROPERTY AND EQUIPMENT, NET
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121,969 | 111,478 | ||||||
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OTHER ASSETS:
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Intangible assets, net
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3,413,175 | 1,714,702 | ||||||
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Security deposits
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58,588 | 53,688 | ||||||
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Deferred income taxes
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1,078,000 | 1,017,000 | ||||||
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TOTAL OTHER ASSETS
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4,549,763 | 2,785,390 | ||||||
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TOTAL ASSETS
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$ | 11,011,705 | $ | 11,342,418 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Note payable - bank
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$ | 951,335 | $ | 951,335 | ||||
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Accounts payable - trade
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3,265,273 | 4,516,547 | ||||||
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Accrued expenses and taxes payable
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284,362 | 564,386 | ||||||
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Current portion of long-term debt
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97,223 | 581,019 | ||||||
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Note payable - related party
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431,111 | - | ||||||
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TOTAL CURRENT LIABILITIES
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5,029,304 | 6,613,287 | ||||||
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LONG-TERM DEBT
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835,556 | 13,889 | ||||||
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DEFERRED COMPENSATION
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78,568 | 78,568 | ||||||
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TOTAL OTHER LIABILITIES
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914,124 | 92,457 | ||||||
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STOCKHOLDERS’ EQUITY
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5,068,277 | 4,636,674 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 11,011,705 | $ | 11,342,418 | ||||
See notes to these consolidated financial statements included in the Company’s Form 10-Q
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
EBITDA RECONCILIATION WITH GAAP
(UNAUDITED)
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THREE MONTHS ENDED
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SIX MONTHS ENDED
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March 31,
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March 31,
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2011
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2010
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2011
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2010
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Net (loss) income per financial statement
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$ | (140,271 | ) | $ | 106,084 | $ | (131,701 | ) | $ | 56,047 | ||||||
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Interest expense
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25,742 | 32,537 | 72,785 | 54,827 | ||||||||||||
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Interest and dividend (income)
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(934 | ) | (1,137 | ) | (2,187 | ) | (2,806 | ) | ||||||||
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Income tax expense (credits)
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(99,377 | ) | 36,600 | (79,000 | ) | 38,000 | ||||||||||
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Depreciation
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24,800 | 20,691 | 38,072 | 41,169 | ||||||||||||
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Amortization
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70,763 | 40,263 | 141,526 | 80,526 | ||||||||||||
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EBITDA (Earnings before interest, taxes depreciation and amortization)
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$ | (119,277 | ) | $ | 235,038 | $ | 39,495 | $ | 267,763 | |||||||