JLWT News Janel World Trade Reports Fiscal Third Quarter and Nine Months 2005 Results; Third Quarter Gross Revenue Highest in Company's History
JAMAICA, N.Y.--(BUSINESS WIRE)--Aug. 17, 2005--Janel World Trade, Ltd., (OTCBB: JLWT), a global provider of integrated transport logistics services, reported financial results for its third fiscal quarter and nine months ended June 30, 2005.
Fiscal Third Quarter 2005 Results
For the third fiscal quarter of 2005, Janel reported total revenue of $19,946,342 compared to $17,152,686 for the same period of the prior year, an increase of 16.3%. The increase was attributable to new customers and significantly greater shipping activity among existing customers. Net revenue for the period (total revenue minus forwarding expenses) was $1,934,287, compared to $1,731,931, an increase of 11.7%.
The company experienced an operating profit for the third fiscal quarter of $269,086, compared to an operating profit of $126,954 in the comparable period last year, an increase of 126%. The pretax profit margin on net revenue (total revenue less forwarding expenses) decreased by 4 basis points from 10.1% to 9.7% quarter over quarter due to higher freight forwarding expenses. SG&A increased 3.75% to $1,665,201 as a result of expenses associated with the hiring of three additional salespeople and related expenses, and an increase in professional expenses associated with being a public company.
The Company reported a net profit of $154,181, or $0.00915 per diluted share for the quarter versus income of $66,741, or $0.00396 per diluted share, in the third quarter of fiscal 2004.
Fiscal 2005 Nine Month Results
Janel reported total revenue of $49,920,029 for the first nine months of fiscal 2005, a year-over-year decrease of $285,000 or .57%. The decrease is attributable primarily to Janel's elimination of nine low margin customer accounts which accounted for $545,787 of revenue during the nine months ended June 30, 2005 as compared to $7,892,864 of revenue during the nine months ended June 30, 2004. The elimination of these accounts was offset by increased business activity attributable to both new customer accounts and increased shipping activity by existing customers. Net revenue for the period was $5,203,434 compared to $5,036,773, an increase of 3.3%.
Operating income for the nine-month period was $350,640, compared to $291,238 for the fiscal 2004 period, an increase of 27%. The pretax profit margin on net revenue increased by 39 basis points to 10.42% versus 10.03% for the comparable period in 2004.
The company reported net income of $194,428 or $0.01154 per diluted share, compared to $150,722 or $0.00895 per diluted share for the first nine months of 2004.
Management Review and Outlook
Mr. James Jannello, chief executive officer of Janel World Trade, commented, "We are pleased to report that our third quarter revenue was the highest in Janel's history. Since October 2004, we have been purging some of our low margin, and in many cases higher revenue business in favor of higher yielding accounts, with the knowledge of the potential for short-term revenue declines. While the slight decline in our nine month revenue reflects this, the healthy increase in third quarter revenue versus last year is an important milestone that exceeded our expectations, given the continued implementation of our overall plan. We are confident in our ability to deliver favorable quarterly comparisons going forward, as we take steps to add new revenue streams, increase operating efficiencies and pursue accretive acquisitions."
About Janel World Trade, Ltd.
Janel World Trade, Ltd. (OTCBB: JLWT) 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. Additional information on Janel World Trade is available on the Internet at www.janelgroup.com or www.janelgroup.net.
Forward-Looking Statements
The statements contained in this release that are not historical facts are forward-looking statements (as such term is defined in the Private Securities Litigation Act of 1995). Actual results may differ materially from those anticipated or implied in the forward-looking statements. These forward-looking statements involve risks and uncertainties, including competitive factors and pricing and supply pressures; the Company's dependence upon conditions in the air, ocean and land-based freight forwarding industry; the size and resources of many of the Company's competitors; and the need for the Company to effectively integrate acquired businesses and to successfully deliver its primary services. Additional information with respect to these and other factors that could materially affect the Company is included in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-Q filing.
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, SEPTEMBER 30,
2005 2004
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 846,008 $1,287,507
Accounts receivable, net of allowance for
doubtful accounts of $39,298 at June 30,
2005 and $31,413 at September 30, 2004 5,159,690 5,280,435
Marketable securities 54,141 46,137
Loans receivable - officers 162,718 160,989
- other 35,485 26,153
Prepaid expenses and sundry current assets 102,741 67,524
---------- ----------
TOTAL CURRENT ASSETS 6,360,783 6,868,745
PROPERTY AND EQUIPMENT, NET 241,221 111,816
SECURITY DEPOSITS 49,818 49,928
---------- ----------
TOTAL ASSETS $6,651,822 $7,030,489
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable - bank $ - $ 800,000
Accounts payable 3,410,669 3,164,933
Accrued expenses and taxes payable 134,915 153,720
Current portion of long-term debt 8,393 8,393
---------- ----------
TOTAL CURRENT LIABILITIES 3,553,977 4,127,046
---------- ----------
OTHER LIABILITIES:
Long-term debt 15,668 21,962
Deferred compensation 78,568 78,568
---------- ----------
TOTAL OTHER LIABILITIES 94,236 100,530
---------- ----------
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value
225,000,000 shares authorized
16,843,000 shares issued and outstanding
at June 30, 2005 and September 30, 2004 16,843 16,843
Additional paid-in capital 248,863 248,863
Retained earnings 2,737,903 2,537,207
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 3,003,609 2,802,913
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,651,822 $7,030,489
========== ==========
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
2005 2004 2005 2004
REVENUES $49,920,029 $50,205,032 $19,946,342 $17,152,686
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Forwarding
expenses 44,716,595 45,168,259 18,012,055 15,420,755
Selling, general
and
administrative 4,852,794 4,745,535 1,665,201 1,604,977
----------- ----------- ----------- -----------
TOTAL COSTS
AND EXPENSES 49,569,389 49,913,794 19,677,256 17,025,732
----------- ----------- ----------- -----------
INCOME FROM
OPERATIONS 350,640 291,238 269,086 126,954
----------- ----------- ----------- -----------
OTHER ITEMS:
Interest and
dividend income 11,847 10,865 2,878 3,381
Interest expense (21,059) (32,981) (1,183) (10,694)
----------- ----------- ----------- -----------
TOTAL OTHER ITEMS (9,212) (22,116) 1,695 (7,313)
----------- ----------- ----------- -----------
INCOME BEFORE
INCOME TAXES 341,428 269,122 270,781 119,641
----------- ----------- ----------- ----------
Income taxes 147,000 118,400 116,600 52,900
----------- ----------- ----------- -----------
NET INCOME $ 194,428 $ 150,722 $ 154,181 $ 66,741
=========== =========== =========== ===========
OTHER COMPREHENSIVE
INCOME
NET OF TAX:
Unrealized gain
from available
For sale
securities $ 6,268 $ 6,116 $ 1,831 $ 1,194
=========== =========== =========== ===========
Basic and diluted
earnings per
share $ .01154 $ .00895 $ .00915 $ .00396
=========== =========== =========== ===========
Weighted number of
shares outstanding 16,843,000 16,843,000 16,843,000 16,843,000
=========== =========== =========== ===========
