Segmentz Inc is a provider of expedited transportation and logistics management services to its target client base ranging from mid-sized to Fortune 100 companies. Their services include regional outsourced trucking time definite transportation dedicated delivery and supply chain management services. They operate a network of terminals in the Southeast and Midwest United States. Express1 Expedited Solutions Inc has a market cap of $27.8 million; its shares were traded at around $0.87 with a P/E ratio of 10.8 and P/S ratio of 0.2. Highlight of Business Operations: We have reported all revenue and expenses, including income tax expense for Express-1 Dedicated as discontinued operations as the reporting unit lost its primary operating contract in the fourth quarter of 2008. Express-1 Dedicated disbanded all operations in February 2009 resulting in a loss of $25,000 in the second quarter of 2009 compared to a gain of $33,000 in the second quarter of 2008.
Net income for the quarter ended June 30, 2009 totaled $288,000 compared to $774,000 for the same quarter in 2008. The continued economic recession and related slowdown in demand for transportation services contributed to the reduction in overall profitability compared to 2008, however, we do anticipate continued profitability for the remainder of the year due to the Companys expense reductions and our belief that transportation volumes will make a modest recovery for the remainder of the year.
For the quarter ended June 30, 2009, Express-1 generated income from operations before tax of $697,000 compared to $1,441,000 in the same quarter in 2008. Management is cautiously optimistic about the remainder of the year and is committed to avoiding long-term, low margin solutions that would jeopardize future profitability as the economy and Company recovers from the recession.
Although CGL isnt dependent on the auto industry, it continues to feel the impact of the overall economic recession. Revenue for CGL was $10.2 million for the second quarter of 2009, compared to $14.5 million in the same period in 2008. Management continues to develop the international freight forwarding market with revenue derived from international shipments increasing from 23% of total revenue in the second quarter of 2008 to 30% for the second quarter of 2009. The Company continues to emphasize training designed to retain its independent station owners and take advantage of opportunities in the international freight forwarding markets.
The above items have resulted in Bounce generating operating income of $86,000 in the second quarter of 2009 compared to losing $67,000 in the same period in 2008. Management continues to be optimistic regarding the future growth and profitability potential of Bounce moving forward in 2009.
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