Integrated Freight Announces Fiscal Year 2011 Financial Results

Record Revenues Driven by Successful Acquisition and Integration Strategy

SARASOTA, FL--(Marketwire - Jul 19, 2011) - Integrated Freight Corporation ( (OTCBB: IFCR) (OTCQB: IFCR), announced today its financial results for the 2011 fiscal year ended March 31, 2011.

Fiscal 2011 Highlights

  • Full year fiscal 2011 revenues increased 8.6% to a record $18.8 million
  • Finalized acquisition of Cross Creek Trucking ($28mm 2010 revenue; $4mm EBITDA) for an April 1, 2011 close
  • Launched new freight brokerage service, Integrated Freight Services (IFS)
  • Appointed transportation industry veteran, Hank Hoffman, President and COO
  • Executed LOI agreements with multiple target companies

Paul Henley, CEO of Integrated Freight, commented, "Our top-line results for the year reflect the successful execution of our strategy in building our revenues and infrastructure. We made significant progress in 2010 and 2011 as we moved towards adding our fourth acquisition - Cross Creek Trucking - and executed new LOI agreements with multiple target companies. Our appointment of Hank Hoffman as President and COO, a 25-year trucking and freight industry veteran, underlies our commitment to putting the executive leadership in place necessary to assist IFC in delivering on its goals. The collective experience of our executive team will be invaluable as we move forward with our nationwide expansion plans."

Fiscal Year 2011 Results

Revenues for fiscal year ended March 31, 2011 increased 8.6% to a record $18.8 million from $17.3 million for the fiscal year ended March 31, 2010. This change is due to the increase in freight revenue in correlation to the improving U.S. economy, the application of fuel surcharges and rate increases by the Company, and organic growth within the fleet.

Operating expenses for the fiscal year ended March 31, 2011 increased 13% to $22.8 million compared to $19.6 million for the fiscal year ended March 31, 2010. The increase was primarily due to higher fuel and fuel taxes combined with higher general and administrative costs. General and administrative costs increased 111.2% to $4.0 million in fiscal 2011 from $1.9 million for the fiscal year ended March 31, 2011. This rise resulted primarily from a $2.4 million increase in non-cash compensation and non-cash professional services expenses paid in the form of stock, options, and warrants related to financing activities.

The Company reported a net loss of $7.7 million for the fiscal year ended March 31, 2011 compared to a net loss of $3.1 million for the fiscal year ended March 31, 2010. The increase in the net loss was primarily attributable to the higher general and administration costs described above as well as a non-cash reserve of $1.8 million to cover any potential liabilities related to the discontinuation of one of its operations during the fiscal year.

Financial Condition

As of March 31, 2011, the Company had cash and cash equivalents of $54,158 versus cash and cash equivalents of $48,101 as of March 31, 2010. Net cash used in operating activities for the twelve months ended March 31, 2011 was $296,195, down from $694,386 for the twelve months ended March 31, 2010. Total liabilities and stockholders' deficit was $7.8 million as of March 31, 2011 versus total liabilities and stockholders' deficit of $9.3 million for the period ended March 31, 2010.

Business Outlook

"We are excited to move forward and execute our growth and integration strategy," stated Mr. Henley. "Notwithstanding our operating losses for the year, we continue to increase our revenue run rate and are working to achieve increased cost savings through elimination of overlapping lanes and equipment, reducing our SG&A costs by streamlining redundant tasks and lowering overall fleet maintenance expenses through nationwide service contracts. We have invested in state-of-the-art technology systems that allow our network of companies to become strong together, helping us to become even more efficient and lower costs. In addition, the launch of our new freight brokerage service in March, Integrated Fright Services (IFC), is allowing us to increase our revenue capture and effective carrier capacity by connecting customers and outside shipping partners. This is an exciting time in our industry. The increase in demand we are experiencing from the recovery in the U.S. economy bodes well for the fundamentals of our business. Pricing is firming up and improvements in freight shipments from the resumption in business and consumer activity are taking place as capacity in our industry remains fairly tight. We are continuing to maintain and increase our positions in consolidating markets to take advantage of this backdrop and acquiring quality transportation companies at deep discounts as we position and grow the business."

About Integrated Freight Corporation

Integrated Freight Corporation (OTCBB: IFCR) is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry and refrigerated truckload services, operating primarily in well-established traffic lanes in the Upper Midwest, Pacific Northwest, Texas, California and the Atlantic seaboard. Integrated Freight was formed for the purpose of acquiring and consolidating operating motor freight companies and incorporated in the state of Florida in 2008. Integrated Freight's mission is to build a safe, reliable, high-quality national freight carrier and customized logistics service with a diverse customer base that is well-positioned in growing profitable markets. For more information, please visit

Safe Harbor Statement

The foregoing press release contains forward-looking statements, including statements regarding the company's expectation of its future business and earnings, subject to the safe-harbor provisions for forward-looking statements provided in the Securities Exchange Act and the regulations there under. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the company's control. Actual results could differ materially from these forward-looking statements. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.


Consolidated Balance Sheets
March 31, 2011 March 31, 2010
Current assets:
Cash $ 54,158 $ 48,101
Accounts receivables, net of allowance for doubtful accounts of $50,000 2,564,352 2,306,738
Prepaid expenses and other assets 545,930 336,127
Total current assets 3,164,440 2,690,966
Property and equipment, net of accumulated depreciation 4,141,068 5,679,610
Intangible assets, net of accumulated amortization 268,785 913,868
Assets of discontinued operations 236,279 -
Total assets $ 7,810,572 $ 9,284,444
Liabilities and Stockholders' Deficit
Current liabilities:
Bank overdraft $ 214,303 $ 166,966
Accounts payable 1,151,337 447,752
Accrued expenses and other liabilities 1,112,778 885,613
Line of credit 895,153 755,044
Notes payable - related parties 1,180,987 1,441,740
Current portion of notes payable 2,709,111 4,066,928
Total current liabilities 7,263,669 7,764,043
Derivative liability 513,471 -
Notes payable - related parties 120,000 210,000
Notes payable, net of current portion and debt discount 4,235,242 4,496,292
Total liabilities of discontinued operations 1,765,313 -
Total long-term liabilities 6,634,026 4,706,292
Total liabilities 13,897,695 12,470,335
Stockholders' deficit:
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 31,574,883 and 21,089,333 shares issued and outstanding



Additional paid-in capital 6,013,911 1,171,790
Accumulated deficit (12,475,539 ) (4,714,339 )
Total Integrated Freight Corporation stockholders' deficit (6,430,053 ) (3,521,460 )
Non controlling interest 342,930 335,569
Total stockholders' deficit (6,087,123 ) (3,185,891 )
Total liabilities and stockholders' deficit $ 7,810,572 $ 9,284,444

Consolidated Statements of Operations
Year Ended
March 31,
2011 2010
Revenue $ 18,827,367 $ 17,330,079
Operating Expenses
Rents and transportation 4,301,760 4,900,107
Wages, salaries and benefits 5,591,171 5,364,224
Fuel and fuel taxes 5,526,923 4,310,349
Depreciation and amortization 2,179,827 2,234,234
Impairment of intangible asset 336,861 -
Insurance and claims 725,995 745,308
Operating taxes and licenses 198,853 142,786
General and administrative 4,020,941 1,913,765
Total Operating Expenses 22,882,331 19,610,773
Loss from continuing operations (4,054,964 ) (2,280,694 )
Loss from discontinued operations (1,529,034 ) -
Other Income (Expense)
Gain/(loss) on change of fair value of derivative liability (513,471 ) -
Interest (1,536,646 ) (941,992 )
Interest - related parties (351,031 ) (110,438 )
Other income (expense) 216,585 224,877
Total Other Income (Expense) (2,184,563 ) (827,553 )
Net loss before noncontrolling interest (7,768,561 ) (3,108,247 )
Noncontrolling interest share of subsidiary net income (loss) 7,361 (32,176 )
Net loss $ (7,761,200 ) $ (3,140,423 )
Net loss per share - basic and diluted
Loss from continuing operations $ (0.25 ) $ (0.15 )
Loss from discontinued operations (0.06 ) -
Net loss per common share-basic and diluted $ (0.31 ) $ (0.15 )
Weighted average common shares outstanding - basic and diluted 24,662,809 21,089,333

Consolidated Statements of Cash Flows
Year Ended
March 31,
2011 2010
Cash flows from operating activities:
Net loss $ (7,761,200 ) $ (3,140,423 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 2,179,827 2,234,234
Debt discount amortization 258,682 45,828
Deferred finance cost amortization - 135,220
Impairment of intangible assets 336,861 -
Loss on asset dispositions 50,255 109,083
Minority interest in earnings of subsidiary 7,361 32,176
Stock issued for stock based compensation 177,000 -
Warrants issued for services performed 318,750 -
Stock and warrants issued for debt 873,519 -
Stock issued for services 746,346 -
Loss from discountinued operations 1,529,034 -
Increases/decreases in operating assets and liabilities -
Accounts receivable (257,614 ) (245,441 )
Prepaid expenses and other assets (199,237 ) 109,899
Accounts payable 703,585 (220,642 )
Warrant liability 513,471 -
Accrued and other liabilities 227,165 245,680
Net cash (used) in/provided by operating activities (296,195 ) (694,386 )
Cash flows from investing activities:
Purchase of property and equipment (68,311 ) -
Purchase of discontinued operations-Triple C (100,000 ) -
Net cash used in investing activities (168,311 ) -
Cash flows from financing activities:
Repayments of notes payable (1,478,123 ) (582,987 )
Proceeds of long term debt 906,240 1,042,180
Net proceeds/(repayments) from line of credit 140,109 124,852
Bank overdraft 47,337 -
Proceeds from sale of common stock 855,000 -
Net cash (used) in/provided by financing activities 470,563 584,045
Net change in cash 6,057 (110,341 )
Cash, beginning of period 48,101 158,442
Cash, end of period $ 54,158 $ 48,101
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes $ - $ -
Interest $ 510,623- $ 720,112
Schedule of noncash investing and financing transactions:
Common stock issued for acquisition of subsidiaries
Common stock issued in purchase $ 200,000- $ -
Notes payable issued in purchase 250,000- -
Less: assets received in purchase, net of cash (595,879)- -
Plus: liabilities assumed during purchase 145,879- -
Minority interest - $ -
Net cash received at purchase - -
Common stock issued for stock based compensation $ 177,000 $ -
Common stock and warrants issued for deferred finance costs, extension of loans and with notes payable $ 133,500- $ -
Common stock issued for conversion of debentures $ 1,566,567 $ 42,500

Contact Information:

Integrated Freight Corporation Investor Relations
941-907-8372 x 6

Investor Relations Contact:
The Eversull Group, Inc.
Jack Eversull
214-469-2361 (fax)