ELKRIDGE, Md., Nov. 13, 2007 (PRIME NEWSWIRE) -- Last Mile Logistics Group, Inc. (OTCBB:LMLG), a leading provider of consumer goods delivery and related services in the Mid-Atlantic market, today reported record net revenue for the third quarter of 2007.
Revenue for the third quarter of 2007 was $502,639, a 19% increase over the third quarter revenue of $422,864 in 2006. The Company attributes this increase primarily to sales initiatives that have resulted in the addition of several new customers in 2007, ranging from local retailers outsourcing their delivery services to national freight companies contracting for regional "last mile" specialized services. Revenue for the nine months ended September 2007 amounted to $1,341,388, an increase of $44,097 over the same period in 2006.
Gross margin for the third quarter of 2007 was $223,712, a 33% increase over the gross margin of $167,954 in the third quarter of 2006. In addition to the increase in revenue, the Company attributes this gross margin improvement to management's focus on operating cost efficiencies. Gross margin for the nine months ended September 2007 amounted to $582,654, an increase of $87,471 over the same period in 2006, as this focus on improved efficiencies with drivers and vehicle routes generated benefits throughout the year.
Selling, general and administrative expenses for the third quarter of 2007 was $320,341, compared to $279,065 in the third quarter of 2006, with the increase due primarily to an increase in salaries for key personnel. For the nine months ended September 2007, selling, general and administrative expenses were $931,455, compared to $741,016 for the same period in 2006, an increase of $190,439. Increased rent from the new facility lease in July 2006 and the higher salaries for key personnel are the primary reasons for this increase.
Net loss for the third quarter of 2007 was $115,089, down from the net loss of $129,634 in the third quarter of 2006. Net loss for the nine months ended September 2007 was $416,437, compared to a net loss of $295,065 for the same period in 2006, an increase of $121,372. These losses are a reflection of the investment in personnel and resources necessary to manage and continue development of new business dedicated to providing quality "last mile" delivery solutions.
Brian Flood, President of Last Mile Logistics Group, commented that "even during an economic downturn, we are seeing a significant improvement in revenue as companies continue to look to outsource their logistics requirements. We also believe that we benefit from our focus on last mile solutions for heavy consumer goods, as retailers continue to seek high quality providers that can service their customers' home delivery needs."
About LMLG
Last Mile Logistics Group, Inc. (LMLG) focuses on the "last mile" of delivery and related services for consumer goods, and conducts all its business operations in the Mid-Atlantic market through its subsidiary, Chesapeake Logistics LLC (http://www.cheslogistics.com). From its facility in Elkridge, Maryland, Chesapeake Logistics handles all aspects of the delivery process, including customer scheduling, delivery, assembly, and packaging removal. By outsourcing its customer delivery process to Last Mile Logistics, companies can improve their customer service, reduce their logistics costs, and focus on core competencies.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.