Integrated Freight Announces Fiscal First Quarter 2012 Financial Results

SARASOTA, FL--(Marketwire - Aug 24, 2011) - Integrated Freight Corporation ("Integrated Freight" or the "Company") (OTCQB: IFCR) (OTCBB: IFCR) a rapidly growing motor freight company providing long-haul, regional and local service to its customers in the U.S., today announced its financial results for its first quarter ended June 30, 2011.

First Quarter Fiscal 2012 Highlights

• First quarter fiscal 2012 revenues increased 172.7% to a record $13.0 million
• Completed acquisition of Cross Creek Trucking, an Oregon-based refrigerated freight hauler ($28mm 2010 revenue; $4mm EBITDA)
• Load ratio reached all time high during quarter
• Continued profitability of all operating segments of the Company
• Added to M&A and financial reporting staff by appointing Matthew Veal as Vice President and Treasurer

"We made significant progress in the first quarter and positioned the business for further growth," stated Paul Henley, Chief Executive Officer of Integrated Freight. "We achieved strong top line results as we completed our fourth acquisition, Cross Creek Trucking, and saw increases in freight revenue along with greater revenue capture from the launch of our new freight brokerage in March, called Integrated Freight Services. This has allowed us to increase our effective carrier capacity by connecting customers and outside shipping partners. We saw continued profitability of all operating segments of the Company. In addition, we strengthened our mergers and acquisitions and financial reporting functions by appointing Matthew Veal as Vice President and Treasurer. We believe we have assembled a proven team with the experience necessary to drive our acquisition and integration strategy and to achieve solid organic growth."

Fiscal First Quarter 2012 Results

Revenues for the fiscal first quarter ended June 30, 2011, increase 172.7% to a record $13.0 million from $4.8 million in the same quarter last year. The increase is due primarily to the acquisition of Cross Creek Trucking, Inc. on April 1, 2011, positive effects from the Company's brokerage operations, and an increase in freight revenue in correlation to the U.S. economy.

Operating expenses for the fiscal first quarter ended June 30, 2011 increased 194.2% to $14.8 million compared to $5 million for the three months ended June 30, 2010. The increase is due to increased fuel costs and purchase price amortization in connection with the acquisition of Cross Creek Trucking and approximately $800,000 of additional transactions costs from the acquisition of Cross Creek Trucking, Inc. General and administrative expenses (including transaction costs) for the three months ended June 30, 2011 increased 304% to $1.9 million compared to $475,207 for the same period a year ago. Fuel and fuel taxes for the three months ended June 30, 2011 increased 237.6% to $4.9 million, compared to $1.5 million for the three months ended June 30, 2010. Wages, salaries and benefits increased 202.9% to $4 million for the three months ended June 30, 2011 compared to $1.3 million for the same period last year. Loss from discontinued operations was $420,756.

The Company reported a net loss of $2.9 million for the fiscal first quarter ended June 30, 2011, or $0.08 per diluted share, compared to a net loss of $329,388, or $0.02 per diluted share, for the three months ended June 30, 2010, an increase of $2.5 million. The increase was primarily due to fuel cost increases, higher expenses associated with the acquisition of Cross Creek Trucking, Inc. and higher operating and interest expenses. Net cash used in operating activities for the three months ended June 30, 2011 was $130,519 compared to net cash provided by operating activities of $109,430 for the three months ended June 30, 2010.

Financial Condition

As of June 30, 2011, the Company had cash and cash equivalents of $131,386 versus cash and cash equivalents of $54,158 as of March 31, 2011. Total liabilities and stockholders' deficit was $21.4 million as of June 30, 2011 versus total liabilities and stockholders' deficit of $7.8 million for the period ended March 31, 2011.

Business Outlook

"We are excited by the outlook for our business going forward," stated Paul Henley, CEO of Integrated Freight. "Notwithstanding our operating losses for the period, we experienced strong revenue in the first quarter, positive cash flows and improvements in our working capital positions at the subsidiary level compared to the same quarter in 2010. We are achieving cost savings and efficiencies through the elimination of overlapping lanes and better customer utilization and through lowering our fleet maintenance cost through bulk buying and nationwide service contracts. Our network companies are benefitting from a state-of-the-art technology platform that helps them to grow stronger together." Mr. Henley added, "Going forward, we expect the truckload freight market to continue to improve. We see solid opportunities to acquire niche players with loyal customer bases and integrate these businesses successfully and grow organically as the market for freight shipments improves."

About Integrated Freight Corporation

Integrated Freight Corporation (OTCQB: IFCR) (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 http://www.integrated-freight.com.

To be added to the Company's email distribution for future news releases, please send your request to andrew@hamptongrowth.com.

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 www.sec.gov.

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.

-- FINANCIAL TABLES FOLLOW --

INTEGRATED FREIGHT CORPORATION
Consolidated Statements of Operations
			(Unaudited)
			Three Months Ended June 30,
			2011				2010
Revenue			$	13,036,079			$	4,781,048
Operating Expenses
	Rents and transportation			2,029,481				1,035,787
	Wages, salaries and benefits			4,015,553				1,325,899
	Fuel and fuel taxes			4,923,539				1,458,551
	Depreciation and amortization			1,261,335				518,274
	Insurance and claims			279,572				191,621
	Operating taxes and licenses			418,403				40,903
	General and administrative			1,919,862				475,207
Total Operating Expenses				14,847,745				5,046,242
Loss from continuing operations				(1,811,666	)			(265,194	)
(Loss)/Gain from discontinued operations				(420,756	)			2,348
Other Income (Expense)
	Gain/(loss) on change of fair value of derivative liability			(26,817	)			-
	Interest			(797,003	)			(143,659	)
	Interest - related parties			(19,848	)			(39,898	)
	Other income (expense)			198,879				111,054
Total Other Income (Expense)				(644,789	)			(72,503	)
Net loss before noncontrolling interest				(2,877,211	)			(335,349	)
Noncontrolling interest share of subsidiary net income (loss)				9,443				5,961
Net loss			$	(2,867,768	)		$	(329,388	)
Net loss per share - basic and diluted
	Loss from continuing operations		$	(0.07	)		$	(0.02	)
	Loss from discontinued operations			(0.01	)			0.00
	Net loss per common share-basic and diluted		$	(0.08	)		$	(0.02	)
Weighted average common shares outstanding - basic and diluted				36,332,331				21,089,749

INTEGRATED FREIGHT CORPORATION
Consolidated Balance Sheets
			June 30, 2011				March 31, 2011
			(Unaudited)
Assets
Current assets:
	Cash		$	131,386			$	54,158
	Accounts receivables, net of allowance for doubtful accounts of $50,000			5,042,981				2,564,352
	Prepaid expenses and other assets			614,900				545,930
Total current assets				5,789,267				3,164,440
Property and equipment, net of accumulated depreciation				14,108,393				4,141,068
Intangible assets, net of accumulated amortization				1,522,627				268,785
Assets of discontinued operations				28,469				236,279
Total assets			$	21,448,756			$	7,810,572
Liabilities and Stockholders' Deficit
Current liabilities:
	Bank overdraft		$	386,311			$	214,303
	Accounts payable			2,578,937				1,151,337
	Accrued expenses and other liabilities			2,329,209				1,112,778
	Line of credit			2,476,343				895,153
	Notes payable - related parties			996,697				1,180,987
	Current portion of notes payable			6,631,397				2,709,111
Total current liabilities				15,398,894				7,263,669
	Derivative liability			332,288				513,471
	Notes payable - related parties			4,127,140				120,000
	Notes payable, net of current portion and debt discount			6,271,057				4,235,242
	Liabilities of discontinued operations			1,893,269				1,765,313
Total long-term liabilities				12,623,754				6,634,026
Total liabilities				28,022,648				13,897,695
Stockholders' deficit:
	Common stock, $0.001 par value, 2,000,000,000 shares authorized, 37,642,089 and 31,574,883 shares issued and outstanding at June 30, 2011 and March 31, 2011, respectively			37,641				31,575
	Additional paid-in capital			8,388,844				6,013,911
	Accumulated deficit			(15,352,750	)			(12,475,539	)
Total Integrated Freight Corporation stockholders' deficit				(6,926,265	)			(6,430,053	)
	Non controlling interest			352,373				342,930
Total stockholders' deficit				(6,573,892	)			(6,087,123	)
Total liabilities and stockholders' deficit			$	21,448,756			$	7,810,572

INTEGRATED FREIGHT CORPORATION
Consolidated Statements of Cash Flows
					Three Months Ended
					June 30,
Cash flows from operating activities:					2011				2010
	Net loss				$	(2,877,211	)		$	(329,658	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
		Depreciation and amortization				1,261,335				518,273
		Debt discount amortization				97,417				-
		Common stock issued in payment of derivative				208,000				-
		Warrants issued for interest				101,280				-
		Loss on asset dispositions				(1,833	)			-
		Minority interest in earnings of subsidiary				9,443				(5,691	)
		Stock issued for stock based compensation				-				1,000
		Warrants issued for services performed				79,600				-
		Stock issued for interest				197,120				-
		Stock issued for services				322,500				-
		Loss from discountinued operations				335,765				-
		Increases/decreases in operating assets and liabilities								-
			Accounts receivable			(383,531	)			(315,282	)
			Prepaid expenses and other assets			693,547				(120,114	)
			Accounts payable			-				148,911
			Derivative liability			(181,183	)			-
			Accrued and other liabilities			7,232				211,991
	Net cash (used) in/provided by operating activities					(130,519	)			109,430
Cash flows from investing activities:
	Purchase of property and equipment					-				(6,674	)
	Purchase of discontinued operations-Triple C					-				(100,000	)
	Net cash used in investing activities					-				(106,674	)
Cash flows from financing activities:
	Repayments of notes payable					(661,946	)			(464,029	)
	Proceeds of long term debt					-				388,000
	Net proceeds/(repayments) from line of credit					665,185				150,899
	Bank overdraft					172,008				-
	Proceeds from exercise of warrants					32,500				-
	Net cash (used) in/provided by financing activities					207,747				74,870
	Net change in cash					77,228				77,626
Cash, beginning of period						54,158				48,101
Cash, end of period					$	131,386			$	125,727