Record Revenues Driven by Successful Acquisition and Integration Strategy
SARASOTA, FL--(Marketwire - Jul 19, 2011) - Integrated Freight Corporation (http://www.integrated-freight.com) (
Fiscal 2011 Highlights
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 (
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.
INTEGRATED FREIGHT CORPORATION Consolidated Balance Sheets |
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March 31, 2011 | March 31, 2010 | |||||||
Assets | ||||||||
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 | |
|
31,575 |
|
|
|
21,089 |
|
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 | ||||
INTEGRATED FREIGHT CORPORATION Consolidated Statements of Operations |
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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 | |||||||
INTEGRATED FREIGHT CORPORATION Consolidated Statements of Cash Flows |
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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
President
972-571-1624
214-469-2361 (fax)