Press Releases

Unedited news and product information from vendors.

Janel World Trade, Ltd. Announces First Quarter Operating Results
Feb 20, 2008 (08:02 AM EST)


JAMAICA, N.Y., Feb. 20 /PRNewswire-FirstCall/ -- Janel World Trade, Ltd. , a full-service global provider of integrated logistics services, today announced its operating results for the first quarter of FY2008.

For the three months ended December 31, 2007, the Company's total revenue increased 20% to approximately $20.1 million, compared with approximately $16.7 million in the first quarter of the previous fiscal year. Net revenue (revenue minus forwarding expenses) rose 31% to a record $2,518,883 in the first quarter of FY2008, versus $1,923,615 in the three months ended December 31, 2006. Net income available to common shareholders declined to $18,299, or $0.001 per diluted share, in the most recent quarter, compared with $52,198, or $0.003 per diluted share, in the first quarter of FY2007. The decrease in net income was primarily due to a $161,812 increase in non-cash amortization of intangible assets, a $33,636 increase in interest expense, and $3,750 in preferred stock dividends. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 142% to $266,921 in the three months ended December 31, 2007, versus $110,272 in the corresponding period of the previous fiscal year. (Note: See table at end of this release for a reconciliation of EBITDA with GAAP information).

"From an operating perspective, the first quarter of Fiscal 2008 was an outstanding period for Janel World Trade," stated James N. Jannello, Chief Executive Officer of the Company. "Demand for our traditional transportation logistics services strengthened considerably when compared with the prior-year period, and we recognized just over two months of software and information technology solutions revenue from our wholly-owned Order Logistics, Inc. subsidiary. Order Logistics expands our capabilities with its Internet-based supply chain technology solution Solve (IT)2, which enables customers to collaborate in the planning, execution, management and tracking of orders and shipments, financial settlement, procurement and quality control activities on a worldwide basis. Our first quarter EBITDA, which excludes amortization and interest expenses associated with the acquisition, was up an impressive 142% when compared with the first quarter of the previous fiscal year."

"We announced a number of contracts that were awarded to our Order Logistics subsidiary during the most recent quarter, and the pipeline of prospective contracts for information technology solutions continues to expand," continued Jannello. "With the establishment of our Order Logistics subsidiary, and in concert with our strategic partner Premier Resources International, the Company has differentiated itself from most competitors through its ability to provide end-to-end global sourcing, information management and logistics solutions. We believe this strategic positioning will deliver great value to our shareholders in coming years."

About Order Logistics, Inc.

Order Logistics, Inc., a wholly-owned subsidiary of Janel World Trade, Ltd. that is based in Champaign, Illinois, provides solutions that allow companies to more effectively discover, manage, and execute global supply chain strategies. The Order Logistics team, technology, strategies, solutions and dedicated transportation resources allow organizations to access world-class visibility, information and controls without disrupting existing plans, processes, partnerships and information systems. By leveraging technology, business solutions, operational expertise and a centralized capacity network of transportation providers to take advantage of logistical opportunities, Order Logistics provides end-to-end solutions to its customers. This allows each customer to better control its unique distribution network and utilize existing information systems to their full capacity. For additional information, visit http://www.orderlogistics.com .

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics services, including domestic and international freight forwarding via multi-modal carriers, customs brokerage, warehousing and distribution, and other transportation-related services. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong, Shanghai, and Shenzhen), the Company provides the comprehensive services necessary to handle its customers' shipping needs throughout the world. Cargo can be transported via air, sea or land, and Janel's national network of locations can manage the shipment and/or receipt of cargo into or out of any location in the United States. Janel is registered as an Ocean Transportation Intermediary and licensed as a NVOCC (non-vessel operating common carrier) by the Federal Maritime Commission.

Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York, adjacent to the JFK International Airport, and its common stock is listed on the OTC Bulletin Board under the symbol "JLWT". Additional information on the Company is available on its website at http://www.janelgroup.net .

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's dependence upon conditions in the air, ocean and land-based freight forwarding industry, the size and resources of many competitors, the need for the Company to effectively integrate acquired businesses and to successfully deliver its primary services, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission, including its most recent Form 8-K, Form 10-Q and Form 10-K filings. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, please contact: RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or

via e-mail at info@rjfalkner.com (Financial Highlights Follow) JANEL WORLD TRADE LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, SEPTEMBER 30, 2007 2007 (Unaudited) (Audited) ASSETS CURRENT ASSETS: Cash and cash equivalents $2,005,135 $2,469,727 Accounts receivable, net of allowance for doubtful accounts of $52,139 at December 31, 2007 and $42,600 at September 30, 2007 5,596,679 5,343,958 Marketable securities 70,310 70,880 Loans receivable - officers 143,727 142,440 - related party 113,455 111,700 - other 24,907 21,994 Prepaid expenses and sundry 65,266 156,802 current assets TOTAL CURRENT ASSETS 8,019,479 8,317,501 PROPERTY AND EQUIPMENT, NET 200,839 217,528 OTHER ASSETS: Intangible assets, net 3,718,361 - Security deposits 49,035 49,035 Deferred income taxes 44,900 - TOTAL OTHER ASSETS 3,812,296 49,035 TOTAL ASSETS $12,032,614 $8,584,064 CURRENT LIABILITIES: Note payable - bank $1,700,000 $- - other 125,000 - Accounts payable 3,502,587 3,822,677 Accrued expenses and taxes payable 213,850 205,555 Current portion of long-term debt 31,573 3,795 TOTAL CURRENT LIABILITIES 5,573,010 4,032,027 OTHER LIABILITIES: Long-term debt 473,826 2,550 Deferred compensation 78,568 78,568 TOTAL OTHER LIABILITIES 552,394 81,118 STOCKHOLDERS' EQUITY 5,907,210 4,470,919 TOTAL LIABILITIES AND $12,032,614 $8,584,064 STOCKHOLDERS' EQUITY JANEL WORLD TRADE LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE MONTHS ENDED DECEMBER 31, 2007 2006 REVENUES $20,067,346 $16,727,869 COSTS AND EXPENSES: Forwarding expenses 17,548,463 14,804,254 Selling, general and administrative 2,300,540 1,844,358 Amortization of intangible assets 161,812 - 20,010,815 16,648,612 INCOME FROM OPERATIONS 56,531 79,257 OTHER ITEMS: Interest and dividend income 17,254 12,941 Interest expense (33,636) - TOTAL OTHER ITEMS (16,382) 12,941 INCOME BEFORE INCOME TAXES 40,149 92,198 Income taxes 18,100 40,000 NET INCOME 22,049 52,198 Preferred stock dividends 3,750 - NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $18,299 $52,198 OTHER COMPREHENSIVE INCOME, NET OF TAX: Unrealized gain (loss) from available for sale securities $(7,008) $697 Basic earnings per share $.0011 $.00306 Fully diluted earnings per share $.0011 $.00299 Basic weighted number of shares outstanding 16,906,000 17,036,457 Fully diluted weighted number of shares outstanding 17,306,000 17,436,457 JANEL WORLD TRADE, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) THREE MONTHS ENDED DECEMBER 31, 2007 2006 OPERATING ACTIVITIES: Net income $22,049 $52,198 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 193,136 18,074 Deferred income taxes (44,900) - Changes in operating assets and liabilities: Accounts receivable (252,721) (404,090) Loans receivable (5,955) 6,310 Prepaid expenses and sundry current assets 91,536 78,696 Accounts payable and accrued expenses (315,545) 234,878 NET CASH USED IN OPERATING ACTIVITIES (312,400) (13,934) INVESTING ACTIVITIES: Acquisition of intangible assets (2,173,312) - Acquisition of property and equipment, net (171,496) (5,781) Purchase of marketable securities (6,438) (2,722) NET CASH USED IN INVESTING ACTIVITIES (2,351,246) (8,503) FINANCING ACTIVITIES: Proceeds received from bank loan 1,700,000 - Issuance of long-term debt 500,000 - Repayment of long-term debt (946) (2,097) Issuance of loans receivable - (1,240) Repurchase of treasury stock - (8,501) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,199,054 (11,838) DECREASE IN CASH AND CASH EQUIVALENTS (464,592) (34,275) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 2,469,727 1,341,952 CASH AND CASH EQUIVALENTS - END OF PERIOD $2,005,135 $1,307,677 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $20,747 $182 Income taxes $30,988 $57,854 Non-cash financing activities: Unrealized gain (loss) on $(7,008) $697 marketable securities Dividends declared to preferred stockholders $(3,750) $- Issuance of convertible preferred stock and note payable issued in connection with business acquisition $1,550,000 $- JANEL WORLD TRADE, LTD. AND SUBSIDIARIES RECONCILIATION OF EBITDA WITH GAAP THREE MONTHS ENDED DECEMBER 31, 2007 2006 EBITDA (Earnings before interest, taxes depreciation And amortization) $266,921 $110,272 INTEREST EXPENSE 33,636 0 INCOME TAX EXPENSE 18,100 40,000 DEPRECIATION EXPENSE 31,324 18,074 AMORTIZATION EXPENSE 161,812 0 NET INCOME PER FINANCIAL STATEMENT (GAAP) $22,049 $52,198

CONTACT: Investor Relations Counsel of RJ Falkner & Company, Inc., info@rjfalkner.com1-800-377-9893, , for Janel World Trade, Ltd.

Web site: http://www.janelgroup.net/ http://www.orderlogistics.com/