EX-99.1 6 v330123_ex99-1.htm EXHIBIT 99.1

 

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 YEAR END 2012 RESULTS

 

COMPANY FOCUSED ON CORE TRANSPORTATION LOGISTICS AND RETURNING TO PROFITABILITY

 

JAMAICA, NY – January 7, 2013 -- Janel World Trade, Ltd. (OTC BB:  JLWT), a full-service global provider of integrated transportation logistics, announced today the financial results for its quarter and fiscal year ended September 30, 2012.

 

Fourth Quarter Results

 

For the three months ended September 30, 2012, Janel reported revenue of $29,250,331 an increase of $2,455,909 or 9.2% compared to the three months ended September 30, 2011.

 

For the three months ended September 30, 2012, and after an income tax expense of $1,559,028 mainly to fully provide for a valuation allowance against the deferred tax asset for the quarter, the Company reported a net loss of $(1,818,861) or $(0.08) per fully diluted share, compared to the prior year reported net loss of $(278,373), or $(0.01) per fully diluted share. The loss from continuing operations before income taxes for the three months ending September 30, 2012 was $(32,942), an improvement of $182,008 or 85% when compared to the prior year net loss from continuing operations before income taxes of $(214,950).

 

Fiscal Year End Results

 

For the fiscal year ended September 30, 2012, Janel reported revenue of $98,702,647 an increase of $306,030 or 0.3% compared to fiscal year ended September 30, 2011.

 

For the fiscal year ended September 30, 2012, and after an income tax expense of $1,221,304 mainly to fully provide for a valuation allowance against the deferred tax asset (net of tax credits recorded during the fiscal year), the Company reported a net loss of $(2,678,716) or $(0.12) per fully diluted share, compared to the prior year reported net loss of $(657,697), or $(0.03) per fully diluted share. The loss from continuing operations before income taxes for the fiscal year ending September 30, 2012 was $(790,086) compared to the prior year net loss from continuing operations before income taxes of $(573,300).

 

 
 

 

Review and Outlook

 

 “We are encouraged with our results for the quarter ended September 30, 2012” said James N. Jannello, Executive Vice President and Chief Executive Officer. “For the three months, income from continuing operations, excluding the one-time income pick-up associated with the change in the fair value of contingent consideration, was $51,537 an improvement of $235,675 compared to a loss from continuing operations of $(184,138) in the prior year. This is the second consecutive quarter where we have seen improvement in our transportation logistics operations over the corresponding prior fiscal year periods, and we plan to continue to build on our financial turnaround as we move forward.”

 

Jannello concluded, “With the recent investments in our freezer and cold storage capabilities, we anticipate a healthy expansion in warehouse business with our current customers as well as attracting new customers. Looking ahead, and in the very short term, we are working to raise additional capital in order to grow the transportation logistics segment to profitability.”

 

To be included in Janel’s database for Corporate Press Releases and industry updates, investors are invited to send their e-mail address to: IR@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. With offices throughout the U.S. (New York, New Jersey, 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 AND COMPREHENSIVE INCOME            

               

 

  

   THREE MONTHS ENDED   YEAR ENDED 
   September 30,   September 30, 
   2012   2011   2012   2011 
   (unaudited)   (unaudited)   (audited)   (audited) 
                 
REVENUES  $29,250,331   $26,794,422   $98,702,647   $98,396,617 
COST AND EXPENSES:                    
  Forwarding expenses   26,526,103    24,563,406    88,776,713    88,868,466 
  Selling, general and administrative   2,566,446    2,320,194    10,114,204    9,630,818 
  Depreciation and amortization   106,245    94,960    392,837    337,707 
  Change in fair value of contingent consideration   (1,129,650)   -    (1,129,650)   - 
    TOTAL COSTS AND EXPENSES   28,069,144    26,978,560    98,154,104    98,836,991 
                     
INCOME (LOSS) FROM CONTINUING OPERATIONS   1,181,187    (184,138)   548,543    (440,374)
OTHER ITEMS:                    
  Impairment loss   (1,167,070)   -    (1,167,070)   - 
  Interest and dividend income   3    957    1,647    4,089 
  Interest expense   (47,062)   (31,769)   (173,206)   (137,015)
    TOTAL OTHER ITEMS   (1,214,129)   (30,812)   (1,338,629)   (132,926)
LOSS FROM CONTINUING OPERATIONS                    
  BEFORE INCOME TAXES   (32,942)   (214,950)   (790,086)   (573,300)
Income taxes (credits)   1,559,028    (85,356)   1,221,304    (228,045)
NET LOSS FROM CONTINUING OPERATIONS  $(1,591,970)  $(129,594)  $(2,011,390)  $(345,255)
Loss from discontinued operations, net of tax   (226,891)   (148,779)   (667,326)   (312,442)
NET LOSS  $(1,818,861)  $(278,373)  $(2,678,716)  $(657,697)
Preferred stock dividends   3,750    3,750    15,000    15,000 
NET LOSS AVAILABLE TO COMMON                    
  SHAREHOLDERS  $(1,822,611)  $(282,123)  $(2,693,716)  $(672,697)
OTHER COMPREHENSIVE INCOME NET OF TAX:                    
Unrealized gain (loss) from available for sale securities  $2,180   $(11,220)  $12,968   $(2,694)
TOTAL COMPREHENSIVE LOSS  $(1,820,431)  $(293,343)  $(2,680,748)  $(675,391)
Basic earnings (loss) per share:                    
    Continuing operations  $(0.07)  $-   $(0.09)  $(0.02)
    Discontinued operations  $(0.01)  $(0.01)  $(0.03)  $(0.01)
         Total  $(0.08)  $(0.01)  $(0.12)  $(0.03)
Diluted earnings (loss) per share:                    
    Continuing operations  $(0.07)  $-   $(0.09)  $(0.02)
    Discontinued operations  $(0.01)  $(0.01)  $(0.03)  $(0.01)
         Total  $(0.08)  $(0.01)  $(0.12)  $(0.03)
Basic weighted average number of shares outstanding   21,732,192    20,982,192    21,705,553    20,884,602 
Fully diuted weighted average number of shares outstanding   23,367,442    22,617,442    23,340,803    22,726,099 

 

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

 

 
 

  

  CONSOLIDATED BALANCE SHEETS

         

 

 

   June 30, 2012   September 30, 2011 
   (unaudited)   (audited) 
ASSETS
CURRENT ASSETS:          
  Cash and cash equivalents  $773,868   $474,755 
  Accounts receivable, net of allowance for doubtful          
        accounts of $325,335 and $289,547, respectively   5,631,413    5,861,779 
  Marketable securities   65,568    52,352 
  Loans receivable - officers   -    92,817 
  Prepaid expenses and sundry current assets   128,210    114,835 
  Tax refund receivable   -    148,000 
  Assets in discontinued operations   -    635,484 
         TOTAL CURRENT ASSETS   6,599,059    7,380,022 
           
PROPERTY AND EQUIPMENT, NET   511,403    459,850 
OTHER ASSETS:          
  Intangible assets, net   1,821,526    3,271,649 
  Security deposits   167,049    97,299 
  Deferred income taxes   -    1,184,003 
         TOTAL OTHER ASSETS   1,988,575    4,552,951 
           
TOTAL ASSETS  $9,099,037   $12,392,823 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:          
  Note payable - bank  $1,601,336   $951,335 
  Note payable - other   -    100,000 
  Accounts payable - trade   4,450,252    4,536,815 
  Accrued expenses and other current liabilities   670,070    415,577 
  Current portion of long-term debt - bank   84,280    86,360 
  Current portion of long-term debt - related party   -    249,618 
  Liabilities in discontinued operations   -    325,601 
         TOTAL CURRENT LIABILITIES   6,805,938    6,665,306 
           
LONG-TERM DEBT - BANK   221,620    298,625 
LONG-TERM DEBT - RELATED PARTY   -    826,666 
DEFERRED COMPENSATION   78,568    78,568 
         TOTAL OTHER LIABILITIES   300,188    1,203,859 
           
STOCKHOLDERS' EQUITY   1,992,911    4,523,658 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $9,099,037   $12,392,823 

          

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