Express-1 Expedited Solutions (AMEX:XPO) Reports Continued Growth in the Fourth Quarter of 2006."Achieves 2006 Guidance" BUCHANAN, Mich. -- Eighth graph, first sentence should read: Management will conduct a conference call at 11 a.m. ET on Thursday, February 22, 2007 to discuss the Company's fourth-quarter financial results (sted Management will conduct a conference call this morning at 10:00 a.m. ET to discuss the Company's fourth-quarter financial results). The corrected release reads: EXPRESS-1 EXPEDITED SOLUTIONS (AMEX AMEX See: American Stock Exchange :XPO XPO Exportin XPO Executive Petty Officer (US Coast Guard) XPO Operations Plans Officer (Wing) XPO Express Persistent Objects ) REPORTS CONTINUED GROWTH IN THE FOURTH QUARTER OF 2006 "ACHIEVES 2006 GUIDANCE" Express-1 Expedited Solutions, Inc. (Express-1, or the Company) (AMEX:XPO) today announced its financial results for the fourth quarter ended December 31, 2006 and fiscal year ended December 31, 2006. Express-1, one of the nation's top 10 providers of ground expedited services for the manufacturing, logistics, service, automotive and other industries, reported net income of $3.9 million, or $0.15 per diluted share, on revenues of approximately $42.2 million for the 2006 fiscal year ended December 31, compared with a net loss of approximately $5.8 million, or a loss of $0.22 per diluted share, on revenues of approximately $39.8 million for the prior year. For the fourth quarter of 2006, revenues increased to $10.7 million from $9.7 million in the fourth quarter of 2005. The Company's GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income for the fourth quarter of 2006 was $1,595,000, or $0.06 per share. This compares with a GAAP net income of $597,000, or $0.02 per share, for the fourth quarter last year. The 2006 number includes approximately $1.1 million in one-time tax benefits. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the fourth quarter of 2006 was $815,000, compared with $910,000 for the year-ago quarter. Please refer to Table 1 for a reconciliation of net income, as reported, to EBITDA. "Express-1 continued to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. industry this quarter on the top line and in other key areas including growth in fleet size and loaded miles," said Michael Welch, the Company's president and chief executive officer. "We continued to execute successfully on our strategy during the quarter, increasing our capacity by further expanding the size of our fleet, and growing our market share through new accounts and additional business from existing accounts. As a result, our Express-1 average fleet size increased 29% from the fourth quarter of 2005, utilization remained strong, and our core Express-1 business generated a 12% increase in revenue compared to the fourth quarter of 2005. At the same time, our Evansville contract dedicated operations remained revenue neutral in the fourth quarter of 2006 compared to the fourth quarter of 2005. With all of 2006 now complete, we are pleased that we were able to achieve our guidance for the full year." The Company's Chief Financial Officer Mark Patterson Mark Patterson may refer to:
A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. this quarter. We continue to be cautious about adding employees and careful in our spending, and our reliance on independent contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. supplemented by brokerage through third-party carriers maximizes our operational efficiency. Gross margin came in at 25% for the fourth quarter of 2006. In combination with improved SG&A leverage, this enabled us to deliver another quarter of strong EBITDA and net income for the quarter." Outlook and Financial Guidance "Looking ahead to 2007, we believe the momentum we have generated with our additional fleet capacity and with our customers will drive further growth in our business," Welch said. "Our immediate goal is to be one of the largest ground expediters in the country. In order to accomplish our goal we will drive growth by adding to our customer base and recruiting additional sales force. We are confident in our business model and believe that, by remaining conservative and goal-focused in our approach, we will be able to continue delivering on our targets for growth and profitability." Express-1 announced its anticipated guidance for the full year of 2007. The Company expects full-year revenue for 2007 will be in the range of $48 million to $52 million, representing approximately 15% to 23% growth in the Company's expedited operations. The Company expects full-year net income in the range of $0.07 to $0.09 per share based on its current shares outstanding. For the full year of 2007, EBITDA is expected to be between $4.0 million and $5.0 million, based upon current estimates. Conference Call/Webcast Information Management will conduct a conference call at 11 a.m. ET on Thursday, February 22, 2007 to discuss the Company's fourth-quarter financial results. Those interested in accessing a live or archived webcast of the call should visit the Company's website at www.express-1.com. Those wishing to take part in the live teleconference call can dial 201-689-8049 (international) or 877-407-9210. A playback will be available through midnight on March 1, 2007. To listen to the playback, please call 201-612-7415 (international) or 877-660-6853. Use account number 286 and conference ID number 228677. About Express-1 Expedited Solutions, Inc. Offering same-day, time - sensitive, and dedicated transportation to over 1500 customers, Express-1 is one of the largest ground expedite companies in the country. The company's premium transportation service is provided through its 24/7 operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. , by its experienced inside sales staff that uses the latest in vehicle tracking and dispatch software. Express-1 covers the 48 states and Canada and has outside sales staff that covers the Midwest and Southeast. Express-1 utilizes an asset light operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. working with independent contractors that live throughout the country. Express-1 Expedited Solutions, Inc. is publicly traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol XPO. For more information about the Company, visit www.express-1.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and other future or expected performance, are subject to the following risks: that our recent reorganization fails to result in projected operating efficiencies; the acquisition of businesses or the launch of new lines of business, which could increase operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and dilute operating margins; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with customers, whether due to competition or other factors; the inability to comply with regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. governing our business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets ; and to the general risks associated with our businesses. In addition to the risks and uncertainties discussed above you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Use of GAAP and Non-GAAP Measures In addition to results presented in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), the Company has included "EBITDA", a non-GAAP financial measure. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Divisions of a business that have been sold or written off and that no longer are maintained by the business. , and the impact of restructuring and certain other charges, and includes in the EBITDA calculation selected financial data related to various Company acquisitions. A reconciliation of EBITDA to the most directly comparable GAAP financial measure is set forth herein. Management believes the use of non-GAAP financial measures provides useful information to investors to assist them in understanding the underlying operational performance of the Company. Specifically, management believes EBITDA is a useful measure of operating performance before the impact of investing and financing transactions, making comparisons between companies' earnings power more meaningful and providing consistent period-over-period comparisons of the Company's performance. The Company uses these non-GAAP financial measures internally to measure its ongoing business performance and in reports to bankers to permit monitoring of the Company's ability to pay outstanding liabilities. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] The selected financial data above represents "reporting units" within the Company. The subtotal subtotal /sub·to·tal/ (sub-to´t'l) less than, but often almost, complete. entitled "Core Business" represents the expedited operations remaining after the completion of the restructuring plan, and is intended only to give the reader the ability to view what are now our ongoing operations, exclusive of the closed operations. The column entitled "Other" represents services or location revenue and expenses that have primarily been eliminated based on the restructuring plan implemented in the fourth quarter of 2004. Remaining expense items reflected within this column include adjustments to real estate leases, equipment termination costs and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges associated with equipment and property no longer in use. None of our reporting units met the quantitative criteria required for segment reporting segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four . For purposes of the selected financial tables above, we have included Interest Expense and Other Expense within the line item Sales, General and Administrative Expenses. |
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