Organic Initiatives and COVID-19 Spur Growth
WEST PALM BEACH, FLORIDA, April 28, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Transportation and Logistics Systems, Inc. (OTC:TLSS), (“TLSS", or the “Company”), a leading eCommerce fulfillment service provider, announced today that its preliminary first quarter revenues for the period ended March 31, 2020 increased by approximately $2.8 million, or 49%, to approximately $8.6 million, compared to $5.8 million in revenue reported in the same period in 2019. The Company advises that these numbers have not yet been reviewed by its auditors due to the pandemic and may be subject to adjustment.
John Mercadante, TLSS Chairman and CEO, indicated that “the increase in revenues was primarily attributable to:
- the Company’s expansion into new markets in Florida, Georgia, Ohio and Tennessee during the Fall of 2019;
- securing new sales opportunities;
- a full quarter of its box-truck line of business that commenced in February 2019; and,
- greater demand for the Company’s services due to the increase in online ordering as a result of the COVID-19 pandemic.
Mr. Mercadante added, “As the Company continues its aggressive restructuring efforts to reduce debt and streamline its overhead, our highly talented operations team, that has extensive eCommerce experience, is keenly focused on generating new, higher margin revenue. Moreover, we believe that the Company has successfully built an operational flexibility to quickly respond to new organic growth opportunities and is well-positioned to capitalize on the growing eCommerce revolution, as evidenced by its:
- one-stop shopping through our last-mile, mid-mile and line-haul capabilities which we believe is a very attractive portfolio offering to new potential customers;
- three (3) warehouse facilities located squarely in the middle of the most densely populated portion of the country in the New York metropolitan area. This affords TLSS with significant warehousing and third-party logistics opportunities, especially since, as delivery speeds increase, distribution is moving closer and closer to the end user; and,
- a hybrid employment structure which affords TLSS the ability to scale rapidly during seasonal spikes in volume, without incurring excessive costs commonly associated with a short-term ramp up. The Company accomplishes this by strategically utilizing employed drivers to fulfill our daily commitments and independent contractors to flex up and back down during seasonal spikes in volume.”
The Company’s final financial results for the first quarter ended March 31, 2020 are expected to be announced in mid-May 2020 and will be filed in its quarterly 10Q filing with the SEC.
About Transportation and Logistics Systems, Inc.
TLSS operates as a leading logistics and transportation company specializing in eCommerce fulfillment, last mile, two-person home delivery and line haul services for the world’s leading online retailers through its wholly-owned operating subsidiaries, PrimeEFS, LLC and ShypDirect, LLC. For more information about the Company and its subsidiaries visit the Company’s website, www.tlssinc.com, or public filings at SEC.gov.
Forward Looking Statements
Statements in this presentation regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “intend,” “plan,” “goal,” “seek,” “strategy,” “future,” “likely,” “believes,” “estimates,” “projects,” “forecasts,” “predicts,” “potential,” or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers’ cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry’s and customers’ evolving demands; our history of losses, deficiency in working capital and a stockholders’ deficit and our ability to achieve sustained profitability; material weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our substantial indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.
These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.
Contact:
PCG Advisory
Jeff Ramson
(646) 762-4518
jramson@pcgadvisory.com