SOURCE: Janel World Trade, Ltd.

Janel World Trade Ltd. Reports Fiscal Year End 2013 Results

Company Focused on Core Transportation Logistics and Returning to Profitability

JAMAICA, NY, Jan 14, 2014 -  Janel World Trade, Ltd. (OTCQB: JLWT), a full-service global provider of integrated transportation logistics, announced today the financial results for its quarter ended September 30, 2013.

 

Fourth Quarter Results

 

For the three months ended September 30, 2013, Janel reported revenue of $12,841,886 a decrease of $1,605,724 or 11.1% compared to the three months ended September 30, 2012.

 

For the three months ended September 30, 2013 the Company reported a net profit from continuing operations before income taxes of $28,612, down by $6,490 when compared to the prior year reported net profit from continuing operations before income taxes of $35,102.

 

For the three months ended September 30, 2013 and after losses from discontinued operations the Company reported a net loss of $(1,447,256) or $(0.06) per fully diluted share, compared to the prior year reported net loss of $(1,818,861), or $(0.08) per fully diluted share. Included in the prior year is an income tax expense of $1,785,919 mainly to fully provide for a valuation allowance against the deferred tax asset.

 

Year-To-Date 2013 Results

 

For the fiscal year ended September 30, 2013, Janel reported revenue of $44,744,518 a decrease of $5,092,943 or 10.2% compared to the fiscal year ended September 30, 2012.

 

For the fiscal year ended September 30, 2013 the Company reported a net loss from continuing operations before income taxes of $(314,106), down by $249,077 when compared to the prior year reported net loss from continuing operations before income taxes of $(65,029).

 

For the fiscal year ended September 30, 2013 and after losses from discontinued operations the Company reported a net loss of $(2,158,234) or $(0.09) per fully diluted share, compared to the prior year reported net loss of $(2,678,716), or $(0.12) per fully diluted share. Included in the prior year is an income tax expense of $1,221,304 mainly to fully provide for a valuation allowance against the deferred tax asset.

 

Review and Outlook

 

"During the fourth quarter we have made strides in getting back to our core business," said William J. Lally, President and Chief Executive Officer. "We divested ourselves of our New Jersey business at the end of August and have further reduced expenses in our core business which can be seen where our SG&A is down for the quarter by $141,082 when compared to the same quarter last year. Although we have made strides in reducing our expenses during the quarter, revenue for the three months when compared to the prior year is down because of lower ocean shipping activity."

 

Lally continued, "We are focused on returning the company to profitability and growing our sales. During the month of September, Steve Cesarski, our retired President, came back to the company to spearhead sales growth in the Northeast and in late October we raised additional capital from a new investor which will help support our initiatives."

 

Lally concluded, "We are committed to turning Janel around and returning value to our shareholders."

 

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, 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 OTCQB 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.

 

 

 

 

 

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

 

 

 

 

THREE MONTHS ENDED

 

 

TWELVE MONTHS ENDED

 

 

 

September 30,

 

 

September 30,

 

 

 

2013

 

 

2012

 

 

2013

 

 

2012

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(audited)

 

 

(audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

12,841,886

 

 

$

14,447,610

 

 

$

44,744,518

 

 

$

49,837,461

 

COST AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forwarding expenses

 

 

11,223,840

 

 

 

12,685,082

 

 

 

38,479,974

 

 

 

43,018,066

 

 

Selling, general and administrative

 

 

1,549,924

 

 

 

1,691,006

 

 

 

6,433,722

 

 

 

6,757,816

 

 

Depreciation and amortization

 

 

4,855

 

 

 

8,476

 

 

 

19,191

 

 

 

31,154

 

 

 

TOTAL COSTS AND EXPENSES

 

 

12,778,619

 

 

 

14,384,564

 

 

 

44,932,887

 

 

 

49,807,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

63,267

 

 

 

63,046

 

 

 

(188,369

)

 

 

30,425

 

OTHER ITEMS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net of interest and dividend income

 

 

(29,939

)

 

 

(27,944

)

 

 

(121,021

)

 

 

(95,454

)

 

Realized loss from available for sale securities

 

 

(4,716

)

 

 

-

 

 

 

(4,716

)

 

 

-

 

 

 

TOTAL OTHER ITEMS

 

 

(34,655

)

 

 

(27,944

)

 

 

(125,737

)

 

 

(95,454

)

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

28,612

 

 

 

35,102

 

 

 

(314,106

)

 

 

(65,029

)

Income taxes

 

 

6,000

 

 

 

1,785,919

 

 

 

17,000

 

 

 

1,221,304

 

NET LOSS FROM CONTINUING OPERATIONS

 

$

22,612

 

 

$

(1,750,817

)

 

$

(331,106

)

 

$

(1,286,333

)

Income (Loss) from discontinued operations, net of loss on sale of discontinued operations of $1,351,795 in 2013

 

 

(1,469,868

)

 

 

(68,044

)

 

 

(1,827,128

)

 

 

(1,392,383

)

NET LOSS

 

$

(1,447,256

)

 

$

(1,818,861

)

 

$

(2,158,234

)

 

$

(2,678,716

)

Preferred stock dividends

 

 

3,750

 

 

 

3,750

 

 

 

15,000

 

 

 

15,000

 

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS

 

$

(1,451,006

)

 

$

(1,822,611

)

 

$

(2,173,234

)

 

$

(2,693,716

)

OTHER COMPREHENSIVE LOSS NET OF TAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain from available for sale securities

 

$

-

 

 

$

(2,149

)

 

$

1,063

 

 

$

10,788

 

COMPREHENSIVE LOSS

 

$

(1,451,006

)

 

$

(1,824,760

)

 

$

(2,172,171

)

 

$

(2,682,928

)

Basic earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

-

 

 

$

(0.08

)

 

$

(0.02

)

 

$

(0.06

)

 

Discontinued operations

 

$

(0.07

)

 

$

-

 

 

$

(0.08

)

 

$

(0.06

)

 

 

Total

 

$

(0.07

)

 

$

(0.08

)

 

$

(0.10

)

 

$

(0.12

)

Diluted earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

-

 

 

$

(0.08

)

 

$

(0.01

)

 

$

(0.06

)

 

Discontinued operations

 

$

(0.06

)

 

$

-

 

 

$

(0.08

)

 

$

(0.06

)

 

 

Total

 

$

(0.06

)

 

$

(0.08

)

 

$

(0.09

)

 

$

(0.12

)

Basic weighted average number of shares outstanding

 

 

21,117,285

 

 

 

21,732,192

 

 

 

21,577,202

 

 

 

21,705,553

 

Fully diuted weighted average number of shares outstanding

 

 

22,752,535

 

 

 

23,367,442

 

 

 

23,212,452

 

 

 

23,340,803

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

September 30, 2013

 

 

September 30, 2012

 

 

(audited)

 

 

(audited)

ASSETS

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

625,584

 

 

$

773,868

 

Accounts receivable, net of allowance for doubtful accounts of $394,294 and $325,335, respectively

 

 

3,615,302

 

 

 

4,578,006

 

Marketable securities

 

 

-

 

 

 

65,568

 

Loans receivable - other

 

 

42,276

 

 

 

-

 

Prepaid expenses and sundry current assets

 

 

74,871

 

 

 

78,316

 

Prepaid expenses and sundry current assets

 

 

305,454

 

 

 

3,508,034

 

 

TOTAL CURRENT ASSETS

 

 

4,663,487

 

 

 

9,003,792

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

21,922

 

 

 

38,196

OTHER ASSETS:

 

 

 

 

 

 

 

 

Security deposits

 

 

60,724

 

 

 

57,049

 

 

TOTAL OTHER ASSETS

 

 

60,724

 

 

 

57,049

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

4,746,133

 

 

$

9,099,037

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Note payable - bank

 

$

1,431,336

 

 

$

1,601,336

 

Accounts payable - trade

 

 

3,031,135

 

 

 

3,924,901

 

Accrued expenses and other current liabilities

 

 

311,369

 

 

 

313,869

 

Liabilities of discontinued operations

 

 

72,985

 

 

 

1,187,452

 

 

TOTAL CURRENT LIABILITIES

 

 

4,846,825

 

 

 

7,027,558

 

 

 

 

 

 

 

 

DEFERRED COMPENSATION

 

 

78,568

 

 

 

78,568

 

 

TOTAL OTHER LIABILITIES

 

 

78,568

 

 

 

78,568

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

(179,260

)

 

 

1,992,911

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

 

$

4,746,133

 

 

$

9,099,037

 

 

 

 

 

 

 

 

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

 

Contact:
Investor Relations
Janel World Trade
(718) 527-3800
IR@janelgroup.net

 

 

SOURCE: Janel World Trade, Ltd.