EX-99.1 6 v310922_ex99-1.htm PRESS RELEASE

 

Exhibit 99.1

 

 

 

 

 

For Immediate Release Contact: Investor Relations at
    Janel World Trade
    (404) 261-1196
    IR_Janelgroup.net

 

 

Janel World Trade Ltd. REPORTS Fiscal Second QUARTER 2012 RESULTS

 

COMPANY TO DISCONTINUE FOOD SEGMENT and FOCUS ON TRANSPORTATION LOGISTICS

 

JAMAICA, NY – May 15, 2012 -- Janel World Trade, Ltd. (OTC BB:  JLWT), a full-service global provider of integrated transportation logistics, announced today the financial results for its three and six months ending March 31, 2012.

 

Second Quarter Results

 

For the three months ending March 31, 2012, Janel reported revenue of $22,268,568 a decrease of $453,077 or down 2.0% compared to the three months ended March 31, 2011.

 

For the three months ending March 31, 2012, the Company reported a net loss of $(397,831) or $(0.02) per fully diluted share, compared to the prior year reported net loss of $(140,271), or $(0.01) per fully diluted share.

 

Fiscal Year to Date Six Month Results

 

For the six months ending March 31, 2012, Janel reported revenue of $45,853,700 a decrease of $3,301,939 or down 6.7% compared to the six months ended March 31, 2011.

 

For the six months ending March 31, 2012, the Company reported a net loss of $(644,743) or $(0.03) per fully diluted share, compared to the prior year reported net loss of $(131,701), or $(0.01) per fully diluted share.

 

Review and Outlook

 

 “For the quarter ended March 31, 2012, the results were extremely disappointing” said James N. Jannello, Executive Vice President and Chief Executive Officer. “We experienced weaker than expected freight volumes from our customers within our transportation logistics segment when compared to the prior year, resulting in a $417,012 operating loss for the three months in this segment. And within our food industry segment we incurred a $201,828 operating loss primarily due to the sale of inventory at a discount in order to reduce inventory levels and the ongoing operating expenses.”           

         

 

 

Jannello continued, “The Company expanded into the food segment which offered higher gross profit margins after significant investment at the same time that the logistics industry as a whole was weakening. We have made the strategic decision to cut our operating losses in the food segment which would have continued to require more capital investment in order to focus all of management’s attention on our core transportation and logistics segment. On a positive note, one of the areas within the transportation logistics segment that is contributing positively to our results is the investment we made last year to build the 15,000 square foot drive-in freezer in our New Jersey operation where we have attracted new warehouse revenue with higher gross profit margins. Looking ahead, and in the short term, we are seeking to raise additional capital in order to grow the transportation logistics segment to profitability.”

 

Jannello concluded, “We are focused on the above short term efforts of returning our core transportation logistics segment to profitability, raising additional capital to grow this core segment, and divesting ourselves of the food segment that negatively impacted our results.”

 

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

 

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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

 

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JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

   THREE MONTHS ENDED   SIX MONTHS ENDED 
   March 31,    March 31, 
   2012   2011   2012   2011 
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
                     
REVENUES  $22,268,568   $22,721,645   $45,853,700   $49,155,639 
COST AND EXPENSES:                    
  Cost of sales   20,077,801    20,364,643    41,323,335    44,198,680 
  Selling, general and administrative   2,704,997    2,419,085    5,341,143    4,844,629 
  Depreciation and amortization   104,610    80,880    184,541    160,022 
    TOTAL COSTS AND EXPENSES   22,887,408    22,864,608    46,849,019    49,203,331 
                     
LOSS FROM OPERATIONS   (618,840)   (142,963)   (995,319)   (47,692)
OTHER ITEMS:                    
  Interest and dividend income   444    934    1,644    2,187 
  Interest expense   (44,050)   (25,742)   (83,683)   (72,785)
    TOTAL OTHER ITEMS   (43,606)   (24,808)   (82,039)   (70,598)
                     
LOSS BEFORE INCOME TAXES   (662,446)   (167,771)   (1,077,358)   (118,290)
Income taxes (credits)   (264,615)   (74,939)   (432,615)   (47,580)
NET LOSS FROM CONTINUING                    
    OPERATIONS  $(397,831)  $(92,832)  $(644,743)  $(70,710)
Loss from discontinued operations, net of tax   -    (47,439)   -    (60,991)
NET LOSS  $(397,831)  $(140,271)  $(644,743)  $(131,701)
OTHER COMPREHENSIVE INCOME NET OF TAX:                    
Unrealized gain (loss) from available for sale securities  $8,857   $2,869   $12,935   $8,429 
TOTAL COMPREHENSIVE LOSS  $(388,974)  $(137,402)  $(631,808)  $(123,272)
Basic earnings (loss) per share:                    
    Continuing operations  $(0.02)  $-   $(0.03)  $- 
    Discontinued operations  $-   $-   $-   $- 
         Total  $(0.02)  $(0.01)  $(0.03)  $(0.01)
Diluted earnings (loss) per share:                    
    Continuing operations  $(0.01)  $-   $(0.01)  $- 
    Discontinued operations  $-   $-   $-   $- 
         Total  $(0.01)  $-   $(0.01)  $- 
                     
Basic weighted average number of shares outstanding   21,626,214    20,559,946    21,626,214    20,559,946 
Fully diluted weighted average number of shares outstanding   23,261,464    22,993,592    23,261,464    22,993,592 

 

               

  See notes to these consolidated financial statements included in the Company's Form 10-Q

 

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  JANEL WORLD TRADE LTD. AND SUBSIDIARIES

  CONSOLIDATED BALANCE SHEETS

 

 

         

 

   March 31, 2012   September 30, 2011 
   (unaudited)   (audited) 
ASSETS 
CURRENT ASSETS:          
  Cash and cash equivalents  $238,931   $504,829 
  Accounts receivable, net of allowance for doubtful          
        accounts of $281,109 and $289,547, respectively   5,711,767    5,886,255 
  Inventories   773,448    415,934 
  Marketable securities   65,532    52,352 
  Loans receivable - officers   44,928    92,817 
  Prepaid expenses and sundry current assets   127,207    279,835 
  Tax refund receivable   148,000    148,000 
         TOTAL CURRENT ASSETS   7,109,813    7,380,022 
           
PROPERTY AND EQUIPMENT, NET   544,735    459,850 
           
OTHER ASSETS:          
  Intangible assets, net   3,130,123    3,271,649 
  Security deposits   170,299    97,299 
  Deferred income taxes   1,431,003    1,184,003 
         TOTAL OTHER ASSETS   4,731,425    4,552,951 
           
TOTAL ASSETS  $12,385,973   $12,392,823 
LIABILITIES AND SHAREHOLDERS' EQUITY 
CURRENT LIABILITIES:          
  Note payable - bank  $1,301,335   $951,335 
  Note payable - other   100,000    100,000 
  Accounts payable - trade   5,067,290    4,858,344 
  Accrued expenses and taxes payable   366,043    419,649 
  Current portion of long-term debt - bank   74,768    86,360 
  Current portion of long-term debt - related party   276,317    249,618 
         TOTAL CURRENT LIABILITIES   7,185,753    6,665,306 
           
LONG-TERM DEBT - BANK   260,635    298,625 
LONG-TERM DEBT - RELATED PARTY   826,666    826,666 
DEFERRED COMPENSATION   78,568    78,568 
         TOTAL OTHER LIABILITIES   1,165,869    1,203,859 
           
STOCKHOLDERS' EQUITY   4,034,351    4,523,658 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $12,385,973   $12,392,823 

          

See notes to these consolidated financial statements included in the Company's Form 10-Q

 

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