Express1 Expedited Solutions Inc Reports Operating Results (10-Q)
Express1 Expedited Solutions Inc has a market cap of $48.7 million; its shares were traded at around $1.52 with a P/E ratio of 25.3 and P/S ratio of 0.5.
Highlight of Business Operations: Net income for the quarter ended March 31, 2010 totaled $834,000 compared to $5,000 for the same quarters in 2009. This positive trend reflects the overall improvement in the economy in addition to efficiencies garnered during the economic downturn. This positive trend also reflects positive impacts due to acquisition activity over the past two years.
For the quarter ended March 31, 2010, Express-1 generated income from operations before tax of $1,649,000 compared to $160,000 in the same quarter in 2009. Management remains optimistic about the remainder of the year as the economy appears to be improving.
CGLs first quarter revenues reflected a healthy rebound from 2009 levels and also represented a healthy increase from 2008 first quarter levels. Revenues of $12.9 compared favorably to revenues of $9.6 million and $10.5 million in 2009 and 2008, respectively. The purchase of certain assets and liabilities of LRG International in October of 2009 contributed to the healthy revenues and related margins in the first quarter.
As of March 31, 2010, we had $6.5 million of working capital with associated cash of $920,000 compared with working capital of $970,000 and cash of $495,000 as of December 31, 2009. This represents an increase of $5.6 million or 573% in working capital during the three-month period. The Company renewed its credit facility with PNC Bank formerly National City Bank on March 31, 2010. The renewal of the Companys credit facility had a positive impact of approximately $4.9 million on its working capital by converting the classification of both its term debt and line of credit to long term obligations based on the terms of the new agreement.
During the three months ended March 31, 2010, $1,887,000 in cash was generated from operations. The primary source of cash for the three month period was net income of $834,000 and an increase of $446,000 in accounts payable and $1.5 million in accrued expenses. The primary use of cash for the quarter was an increase of $322,000 in prepaid expenses representing the renewal of insurance policies in the first quarter and a decrease in other liabilities of $947,000. During the same period in 2009, $109,000 in cash was used in operating activities. The primary factors contributing to the use of cash were a decrease in accounts payable and other current liabilities of $1.1 million and an increase in other current assets of $539,000. The primary source of cash for the quarter was a reduction of $1.3 million in accounts receivable partly due to the 2009 economic recession.
Investing activities required approximately $49,000 during the three months ended March 31, 2010. During this period, cash was used to purchase $49,000 in fixed assets. During the same period in 2009 we required $1.3 million. During 2009 the cash was used to: 1) satisfy earn-out payments of $1.1 million to the former o
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