Message #13 From:
Stock News Bot Date: November 2, 2005 02:00:00 AM
JLWT News Janel World Trade Expects Income before Taxes to Increase by over 50% for Fiscal Year Ending September 30, 2005; Revenue Guidance of $65-72 Million Expected to Be Exceeded
JAMAICA, N.Y.--(BUSINESS WIRE)--Nov. 2, 2005--Janel World Trade, Ltd. (OTCBB: JLWT) today announced that it expects (subject to final audit) to experience strong revenue growth for the fourth quarter of 2005 with revenues of between $22.8 million and $23.5 million, or an increase of 18% over the fourth quarter of 2004. This represents the highest forth quarter revenues in the Company's history. New, higher margin accounts, particularly in the food and retail sectors, and increased shipping activity by existing customers, have contributed to this acceleration in revenue. Net income before tax for the quarter is expected to grow approximately $135,000, or a 40% increase over 2004. On a year-end basis, this strong revenue activity is expected to provide total revenue exceeding $72 million, which will exceed the previous guidance provided by the Company in September.
In light of the change in the industry mix provided by the new accounts, the Company expects income before tax in 2005 to increase by more than 50% versus fiscal 2004.
Mr. James Jannello, Chief Executive Officer, commented, "Our shareholders are now benefiting from our previously implemented strategy of adding to our highly seasoned sales force, investing in our logistics technology, and making the necessary investment in our Asian presence. These steps have allowed the Company to achieve increased annual sales at higher operating margins. This growth was achieved at the same time that the Company disposed of approximately $11 million of lower margin business. We expect this internal growth to continue in the current quarter and have embarked upon an acquisition strategy that we expect to provide an even higher quality of service level to our clients, and even higher margin opportunities to Janel.
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.
