Janel World Trade Reports Record Revenues for Second Quarter of 2006
Monday May 22, 12:04 pm ET
An Increase of 26% in Year over Year Quarterly Revenues to $18.8M
JAMAICA, N.Y.--(BUSINESS WIRE)--May 22, 2006--Janel World Trade, Ltd., (OTCBB: JLWT.OB - News), a global provider of integrated transport logistics services, reported financial results for its second fiscal quarter ended March 31, 2006.
Second Fiscal Quarter 2006 Results
For the second fiscal quarter of 2006, Janel reported total revenue of $18,791,602 compared to $14,950,685 for the same period of the prior year, an increase of 26%. The increase resulted both from increased shipping activity by existing customers and the activities of newly engaged clients, particularly in the food industry sector.
Net revenue (revenue excluding forwarding expenses) for the period was $1,870,756, as compared to net revenue of $1,601,139 in the second quarter of fiscal 2005, an increase of 16.8%.
SG&A for the quarter increased to $1,835,411, as compared to $1,651,103 in the second quarter of fiscal 2005, but improved from 11.04% of total revenue in the second quarter last year to 9.77% of total revenue in the second quarter this year. The dollar increase is related to increased commissions due to the increased revenues and professional expenses associated with being a public company as well as the hiring additional administrative-related personnel.
The (Loss) Before Taxes increased to ($187,276) in the second quarter of fiscal 2006, from ($54,376) in the second quarter of fiscal 2005. The principal reason for the increased loss was the inclusion of a non-cash charge for stock based consultant compensation in the amount of $226,180, combined with the dollar increase in SG&A expense. The level of stock-based compensation expense included in the 2006 first six months accounted for more than the total year-over-year dollar decline in pretax profitability.
Net loss for the second quarter of fiscal 2006 was ($160,190) or ($0.00943) per diluted share, as compared to a net loss of ($30,976), or ($0.00184) per diluted share, in the second quarter of fiscal 2005.
First Six Months of Fiscal 2006
For the first half of fiscal 2006 ended March 31, 2006, Janel reported total revenue of $37,572,917 compared to $29,973,687 for the same period of fiscal 2005, an increase of 25%.
Net revenue (revenue excluding forwarding expenses) for the period was $3,813,324, as compared to net revenue of $3,269,147 in the same period of fiscal 2005.
SG&A for the period was $3,625,156, as compared to $3,187,593 in the same period of fiscal 2005. The Company reported a (Loss) Before Taxes of ($31,821) for the six months ended March 31, 2006, as compared to income before taxes of $70,647 for the six months ended March 31, 2005.
Net loss for the six months of fiscal 2006 was ($71,535) or ($0.00423) per diluted share, as compared to net income of $40,247, or $0.00239 per diluted share, for the six months of fiscal 2005.
According to James N. Jannello, Chief Executive Officer of Janel, "The second quarter results reaffirm our belief that we will more than meet our earlier sales guidance target for 2006 fiscal year of over $80 million and will have a profitable fiscal year. This is our 15th consecutive quarter of revenue growth, and we have great confidence in our growth momentum." We were particularly pleased with the sales results in light of the fact that the second quarter- the three months is following the Christmas season- is typically a slower quarter for the logistics industry as a whole."
"We are very excited with our expansion in China, since it is a focal point looking at all of Southeast Asia going forward. China-related activities have become important to the Company both in terms of export from China, and domestic business in China, which is a rapidly growing sector for the Company."
"We continue to implement our business strategy to increase revenues and profitability by developing higher margin revenue opportunities, seeking to hire additional commission-only sales representatives with established customer bases, and growth through developing strategic relationships with logistics businesses that complement the services we currently provide..." added Mr. Jannello. |
