01—Abstract
Summary
Summary of the 10-K filed March 26, 2010. Cited figures are marked; the original filing is the authoritative source.
Express-1 Expedited Solutions, Inc. reported consolidated revenue of $100.1 milliona for 2009, down from $109.5 million in 2008, while net income fell to $1.705 million from $3.156 million.
Consolidated gross margin improved to 16.7% from 16.3%, but SG&A rose to $13.6 millionb from $12.7 million, reducing operating income from continuing operations to $3.17 million from $5.17 million. The company describes 2009 as a difficult year under economic recession conditions, noting a strong fourth quarter in which revenue rose $6.7 million, or 27%, compared to the fourth quarter of 2008, driven partly by the LRG International acquisition. The company operates three non-asset based business units: Express-1 (expedited transportation, about 50% of 2009 revenue), Concert Group Logistics (freight forwarding, about 40%), and Bounce Logistics (premium truckload brokerage, about 10%).
Express-1 Dedicated was discontinued in February 2009 after losing an automotive contract. Liquidity tightened over the year: cash used in operations was $99,000c versus $7.0 million provided in 2008, working capital fell to $970,000, and the $11.0 million receivables-based credit facility, which matures May 31, 2010, had a $6.53 million outstanding balance at year-end. Management reports that internal controls were effective as of December 31, 2009.
The company's common stock trades on the NYSE AMEX under the symbol "XPO" (now XPO, Inc.), and it has never paid cash dividends. Approximately 3,600 holders of record were reported as of March 12, 2010.
02—Key points
Key Highlights
- Consolidated revenue declined to $100.1 million in 2009 from $109.5 million in 2008, while the gross margin percentage improved to 16.7% from 16.3%.
- Net income was $1.705 million, or $0.05 per diluted share, down from $3.156 million, or $0.10 per diluted share, in 2008.
- Operating income from continuing operations fell to $3.17 million from $5.17 million as SG&A rose to $13.6 million from $12.7 million, largely from the First Class and LRG acquisitions.
- Cash used by operations was $99,000 in 2009, compared with cash provided of $7.05 million in 2008, and working capital dropped to $970,000 from $4.43 million.
- The line of credit balance was $6.53 million at December 31, 2009, with about $4.1 million of available capacity, and the facility matures May 31, 2010; management said it was negotiating a new facility.
- Express-1 Dedicated was discontinued in February 2009 after losing an automotive contract, and its results are reported as discontinued operations.
- The fourth quarter of 2009 showed revenue growth of 27% over the prior-year quarter, including $1.9 million from the LRG International acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Xpo kept $0.02.
- Revenue$100.1M100.0%
- Cost of revenue−$83.4M83.3%
- Gross profit$16.7M16.7%
- Operating costs−$13.6M13.6%
- Operating income$3.2M3.2%
- Interest, other & tax−$1.5M1.5%
- Net income$1.7M1.7%
Where FY2009 revenue went
$100.1M- Cost of revenue: $83.4M, 83% of revenue
- Operating costs: $13.6M, 14% of revenue
- Net income: $1.7M, 1.7% of revenue
- Interest, other & tax: $1.5M, 1.5% of revenue
Kept 1.7% as net incomeNet income $1.7M · 1.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed March 26, 2010Financial Statements
| Revenue | $100.14M |
| Gross Profit | $16.74M |
| Operating Income | $3.17M |
| Interest Expense | $105K |
| Net Income | $1.71M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 8.01M |
| Shares Outstanding (Diluted) | 8.04M |
05—Questions
Frequently Asked Questions
How did revenue and profitability change in 2009?
Total revenue fell to $100.1 million from $109.5 million, and net income declined to $1.705 million from $3.156 million. Gross margin rose to 16.7% from 16.3%, but higher SG&A reduced operating income from continuing operations to $3.17 million from $5.17 million.
What are the company's three business units and their share of revenue?
Express-1 (expedited ground transportation) accounted for about 50% of 2009 consolidated revenue, Concert Group Logistics (freight forwarding through independent stations) about 40%, and Bounce Logistics (premium truckload brokerage) about 10%.
How is the company's liquidity position at year-end 2009?
Cash was $495,000 and working capital was $970,000, compared with $1.107 million in cash and $4.428 million in working capital a year earlier. The receivables-based credit facility had a $6.53 million outstanding balance, and the company was in compliance with its covenants.
Does the company pay dividends, and where does its stock trade?
The company has never paid cash dividends and intends to retain earnings to retire debt and finance expansion. Its common stock trades on the NYSE AMEX under the symbol XPO, and there were approximately 3,600 holders as of March 12, 2010.
What acquisitions did the company complete in 2009?
The company bought certain assets of First Class Expediting for $250,000 in January 2009 and certain assets of LRG International in October 2009 for $2 million in cash, with a further $500,000 due in one year and up to $900,000 in potential earn-outs over 2010 and 2011.
06—Continue