scubavol
18 years ago
Target Logistics, Inc. Announces 2007 Third Quarter Results
Wednesday May 2, 8:30 am ET
BALTIMORE--(BUSINESS WIRE)--Target Logistics, Inc. (AMEX: TLG - News), a domestic and international freight forwarder and logistics provider, today announced net income for the third quarter of FY 2007, ended March 31, 2007 of $340,150 or $.02 per diluted and basic share, compared to $609,642, or $.03 per diluted and $.04 per basic share reported in the third quarter ended March 31, 2006. Third quarter revenue increased 17.8% to $43.7 million, compared to the $37.1 million reported in the comparable 2006 fiscal period.
Operating income for the FY 2007 third quarter was $613,983 compared to the $1,107,182 reported in the comparable FY 2006 third quarter.
For the nine month period ended March 31, 2007, net income was $1.207 million or, $0.06 per basic and diluted share compared to $2.063 million, or $.10 per diluted and $.12 per basic share for the nine month period ended March 31, 2006. Nine month revenue increased 12.3% to $134.7 million from the $119.9 million reported in the comparable FY 2006 period.
Operating income for the nine month period of FY 2007 was $2,299,210 compared to the $3,754,818 reported in the FY 2006 comparable nine month period.
"Despite achieving our 18th consecutive profitable quarter, third quarter net income was disappointing, primarily because of continued losses by our New York City station following our Discovery acquisition last year, and less than anticipated gross profit margin improvement as a result of sluggish value-added services growth," said Stuart Hettleman, President and CEO. "We have taken the appropriate steps to right size the New York operations and expect to achieve profitability at this station in the fourth quarter.
"We had projected a strong 2nd half for fiscal 2007 during our second quarter conference call. Although our results for the 3rd quarter are significantly less than we expected, we are still very optimistic for the future. We do still expect a solid 4th quarter, but we do not believe that we will be able to overcome the shortfall in our 3rd quarter results to achieve our current goals. As a result, while we still believe that we will achieve the lower end of our revenue guidance of a 15% to 22% increase over fiscal 2006, we are lowering our earnings guidance for fiscal 2007 to $.08 to $.10 per share on a fully diluted basis.
"Our Company remains focused on executing its proven strategy - Consistent year on year revenue increases driven by internal sales growth and accretive acquisitions, while further reducing SG&A as a percentage of revenue and improving our gross profit margins," concluded Mr. Hettleman.
Philip Dubato, Chief Financial Officer of Target Logistics, added, "We are pleased that our new Wells Fargo credit facility is in place and at March 31, 2007 we had over $16.1 million in cash and available credit to support our strategies for internal growth and our ability to make strategic acquisitions."
Target Logistics will hold a conference call at 4:00 PM. ET on Wednesday, May 2, 2007. Interested parties are invited to listen to the call live, over the Internet at www.targetlogistics.com. The live call may also be accessed at http://phx.corporate-ir.net/playerlink.zhtml?c=62341&s=wm&e=1539271. The call will also be available by dialing (800) 510-9834, or for international callers, (617) 614-3669 and by using the confirmation code 32625245. A replay of the teleconference will be available until June 2, 2007 at www.targetlogistics.com. A replay will also be available by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) and by using confirmation code 22699898.
Target Logistics, Inc. provides domestic and international time definite freight forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services, Inc. Target has a network of offices in 35 cities throughout the United States and a worldwide agent network with coverage in over 70 countries. Its freight forwarding services include arranging for the total transport of customers' freight, including providing door to door service, distributions and reverse logistics.
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Although Target Logistics believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projections.
scubavol
18 years ago
>lol -- I'm no TA guy!
Oh- I figgered with all them fancy Ross Perot charts on the board masthead... :)
>I think it must be a "pay service".
I think so. It was free in my Ameritrade account. Looks like the Readers Digest version is here:
http://ratings.thestreet.com/tools/basic/ratings.html?s=tlg
Lets see what I can do with the high points from the pdf --
RECOMMENDATION
We rate TARGET LOGISTICS INC (TLG) a BUY. This is driven by some important positives, which we believe
should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel
these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
HIGHLIGHTS
Despite its growing revenue, the company underperformed as compared with the industry average of 5.3%.
Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue does not
appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Although TLG's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average.
Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which
illustrates the ability to avoid short-term cash problems.
TARGET LOGISTICS INC's earnings per share declined by 40.0% in the most recent quarter compared to the
same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely
to report a decline in earnings in the coming year. During the past fiscal year, TARGET LOGISTICS INC
increased its bottom line by earning $0.13 versus $0.07 in the prior year. This year, the market expects
earnings to be in line with last year ($0.13 versus $0.13).
Net operating cash flow has declined marginally to $3.62 million or 7.56% when compared to the same quarter
last year. Despite a decrease in cash flow TARGET LOGISTICS INC is still fairing well by exceeding its
industry average cash flow growth rate of -55.77%.
In its most recent trading session, TLG has closed at a price level that was not very different from its closing
price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors.
Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its
earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this
company displays offset this slight negative.
INDUSTRY ANALYSIS
The Air Freight and Logistics industry provides insight into and is a great indicator of the strength of the U.S.
Economy like no other industry. National security risks and global terrorism add volatility to the Air Freight
Transport and Logistics industry and these media-driven events can overshadow industry fundamentals. A
slow recovery from troubled times appears to be occurring in this line of business. Two of the major players
in this industry are UPS and FedEx.
Some of the difficulties that remain for those companies in the Air Freight and Logistics industry are the
continued fuel price level and volatility, which make costs uncertain and with oil prices hitting the $70 a barrel
level, profits could become strained. The high cost of fuel drives the industry’s retirement of old inefficient
aircraft as it creates increased demand for new, more fuel efficient aircraft. Further challenges for this
industry may continue to exist if more terrorist-related events occur and security costs become a more
prevalent issue for the U.S. economy.
The increase in globalization is driving industry growth in the near term and should continue to experience
high levels of trade related shipments through the distant future. The major trend that has been rising in this
industry is the growth in air freight due to increased exports from the Asian, African, and Middle Eastern
regions to North America and Western Europe. One of the most significant driving forces behind the increase
in global air freight is China. Not only does China account for a healthy portion of the westbound
trans-pacific traffic. It also accounts for close to half of the eastbound trans-pacific traffic, further displaying
its importance in the growth of this industry. These new and growing relationships push this industry forward
by allowing those companies in this industry to succeed despite the higher fuel prices and other challenges.
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of TLG shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR SCORE
Growth out of 5 stars 3.5
Measures the growth of both the company's income statement and
cash flow. On this factor, TLG has a growth score better than 60% of the
stocks we rate.
weak strong
Total Return out of 5 stars 2.5
Measures the historical price movement of the stock. The stock
performance of this company has beaten 40% of the companies we
cover.
weak strong
Efficiency out of 5 stars 3.5
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 60% of the companies we review.
weak strong
Price volatility out of 5 stars 3.0
Measures the volatility of the company's stock price historically. The
stock is less volatile than 50% of the stocks we monitor.
weak strong
Solvency out of 5 stars 2.0
Measures the solvency of the company based on several ratios. The
company is more solvent than 30% of the companies we analyze.
weak strong
Income out of 5 stars 0.5
Measures dividend yield and payouts to shareholders. This company
pays no dividends.
weak strong
THESTREET.COM RATINGS RESEARCH METHODOLOGY
TheStreet.com Ratings' stock model projects a stock's total return potential over a 12-month period including
both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
FINANCIAL ANALYSIS
TARGET LOGISTICS INC's gross profit margin for the second quarter of its fiscal year 2007 is essentially
unchanged when compared to the same period a year ago. Even though sales increased, the net income has
decreased. TARGET LOGISTICS INC has average liquidity. Currently, the Quick Ratio is 1.18 which shows that
technically this company has the ability to cover short-term cash needs. The company's liquidity has
increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 10.33% from the same quarter last
year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face
financial difficulties in the near future.
VALUATION
BUY. TARGET LOGISTICS INC's P/E ratio indicates a premium compared to an average of 21.23 for the Air
Freight & Logistics industry and a premium compared to the S&P 500 average of 17.87. To use another
comparison, its price-to-book ratio of 1.91 indicates a discount versus the S&P 500 average of 2.83 and a
significant discount versus the industry average of 4.86. The price-to-sales ratio is well below both the S&P
500 average and the industry average, indicating a discount.
slow_feet
18 years ago
Target Logistics, Inc. Announces 2007 Second Quarter Results
BALTIMORE--(Business Wire)--Target Logistics, Inc. (Amex: TLG), a domestic and international freight forwarder and logistics provider, today announced net income for the second quarter of FY 2007, ended December 31, 2006, of $589,504 or $.03 per diluted and basic share, compared to $976,314 or $.05 per diluted and basic share reported in the second quarter ended December 31, 2005. Second quarter revenue was $47.6 million, compared to the $46.7 million reported in the comparable 2006 fiscal period.
Operating income for the FY 2007 second quarter was $1,115,275 compared to the $1,767,117 reported in the comparable FY 2006 second quarter.
For the six month period ended December 31, 2006, net income was $866,456 or, $0.04 per basic and diluted share compared to $1.453 million, or $.07 per diluted share ($0.08 per basic share) for the six month period ended December 31, 2005. Six month revenue increased 10% to $91.0 million from the $82.8 million reported in the comparable FY 2006 period.
Operating income for the six month period of FY 2007 was $1,685,227 compared to the $2,647,636 reported in the FY 2006 comparable six month period.
"Although we had indicated that the first half of FY 2007 would be challenging, it was more so, given the absence of the normal peak season in the second quarter, which occurred throughout our industry," said Stuart Hettleman, President and CEO. "Coupled with a difficult comparison with Q2 FY 2006 -- a very strong period for Target -- revenue for the quarter rose only 2%.
"Despite our disappointing first six months, management views the second half of FY '07 as a much stronger period for Target. This outlook is based on a number of factors: We have gained a number of new accounts, have a number of important new accounts pending and are expecting an increase in freight volume from existing clients. In addition, the acquisition we made in July of 2006 in our New York City station -- whose performance had negatively impacted gross margins and net income and whose improvement I had indicated was an important priority -- turned profitable in December. The performance of this important Target station should progress further for the remainder of the year. Finally, Target's October 2006 acquisition in Albany, New York, has been fully integrated and was accretive to earnings during its first quarter of operations.
"Accordingly, we are reaffirming our guidance for FY 2007," concluded Mr. Hettleman. "We expect revenue to grow 15-22% for the year, and fully diluted earnings per share of $0.12 to $0.15."
Philip Dubato, Chief Financial Officer of Target Logistics said, "As of December 31, 2006, we had over $16.9 million in cash and available credit to support our plans for growth. Our credit facility comes up for renewal this March and due to our 17 consecutive profitable quarters and the continual improvement to our balance sheet over the past 3 years, we are confident that we will be able to obtain more favorable terms and provide greater flexibility to our credit facility which will further support our strategies for internal growth and ability to make additional strategic acquisitions."
Target Logistics will hold a conference call at 4:00 PM. ET on Thursday, February 1, 2007. Interested parties are invited to listen to the call live, over the Internet at www.targetlogistics.com. The live call may also be accessed at http://phx.corporate-ir.net/playerlink.zhtml?c=62341&s=wm&e=1465749. The call will also be available by dialing (800) 561-2718, or for international callers, (617) 614-3525 and by using the confirmation code 59842221. A replay of the teleconference will be available until February 14, 2007 at www.targetlogistics.com. A replay will also be available by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) and by using confirmation code 18159204.
Target Logistics, Inc. provides domestic and international time definite freight forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services, Inc. Target has a network of offices in 35 cities throughout the United States and a worldwide agent network with coverage in over 70 countries. Its freight forwarding services include arranging for the total transport of customers' freight, including providing door to door service, distributions and reverse logistics.
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Although Target Logistics believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projections.
-0- *T
Target Logistics, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three months ended Six months ended
December 31, December 31,
---------------------------------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Operating revenues $47,550,567 $46,704,140 $90,998,629 $82,849,925
Cost of
transportation 33,644,422 32,497,640 64,213,040 56,802,839
------------ ------------ ------------ ------------
Gross profit 13,906,145 14,206,500 26,785,589 26,047,086
Selling, general
and
administrative
expenses
("SG&A"): Target subsidiary
(exclusive
forwarder
commissions) 4,241,084 4,887,904 8,481,904 8,785,827
SG&A - Target
subsidiary 8,027,904 7,016,417 15,644,476 13,668,280
SG&A - Corporate 297,190 376,348 572,907 664,507
Depreciation and
amortization 224,692 158,714 401,075 280,836
------------ ------------ ------------ ------------
Selling,
general and
administrative
expenses 12,790,870 12,439,383 25,100,362 23,399,450
Operating income 1,115,275 1,767,117 1,685,227 2,647,636
Other income
(expense):
Interest
(expense) (50,865) (43,825) (84,114) (77,908)
------------ ------------ ------------ ------------
Income before
taxes 1,064,410 1,723,292 1,601,113 2,569,728
Provision for
income taxes 474,906 746,978 734,657 1,116,336
------------ ------------ ------------ ------------
Net income $ 589,504 $ 976,314 $ 866,456 $ 1,453,392
------------ ------------ ------------ ------------
Preferred stock
dividends 62,145 103,902 62,145 231,079
------------ ------------ ------------ ------------
Net income
applicable to
common
shareholders $ 527,359 $ 872,412 $ 804,311 $ 1,222,313
------------ ------------ ------------ ------------
Net Income per
share
attributable to
common
shareholders:
Basic $ 0.03 $ 0.05 $ 0.04 $ 0.08
------------ ------------ ------------ ------------
Diluted $ 0.03 $ 0.05 $ 0.04 $ 0.07
------------ ------------ ------------ ------------
Weighted average
shares
outstanding:
Basic 18,076,735 16,070,811 18,027,007 15,964,619
------------ ------------ ------------ ------------
Diluted 21,480,385 21,490,385 21,480,385 21,490,343
------------ ------------ ------------ ------------ *T
-0- *T
Target Logistics, Inc. and Subsidiaries
Selected Balance Sheet Data
December 31, June 30,
2006 2006
---------------- ----------------
(unaudited) (audited)
Cash and Cash Equivalents $ 8,164,724 $ 7,015,018
Total Current Assets $ 37,287,565 $ 29,797,740
Total Assets $ 53,414,232 $ 45,250,881
Current Liabilities $ 30,467,054 $ 23,014,672
Long Term Liabilities $ 344,607 $ 555,199
Working Capital $ 6,820,511 $ 6,783,068
Shareholders' Equity $ 22,602,571 $ 21,681,010
Credit Line Availability $ 8,778,871 $ 11,274,357 *T
slow_feet
18 years ago
10/17/06 -- CAFTA Non-starter Despite Growth in Central American Trade
MIAMI, OCTOBER 17: Trade between the U.S. and Central America is showing a modicum of growth although the new CAFTA agreement between the U.S. and seven Central American nations is providing no impetus at present to this modest rise in volume.
"CAFTA tpday is more smoke and mirrors than a genuine contribution to U.S.-Central American trade," stated William Casas, District Manager at the Miami office of Target Logistic Services, a leading freight forwarder serving the Central American market. "Other factors are stimulating this small rise in cargo activity including a slowly rising standard of living in the seven nations making up Central America and early stages of industrialization to complement Central America's humongous agricultural base," he asserted.
To participate in this rise in U.S.-Central American trade activity, Target has embarked jointly on an ambitious program to increase its business south of the border. It is coordinating activities with a Central American-based partner, Arce Campos; a leading freight forwarder with headquarters in San Jose, Costa Rica. Target and Arce Campos are winning business by creating cost effective supply chain solutions to shippers both in the U.S. and Central America.
Casas believes the CAFTA agreement, in time, will generate more business between the U.S. and Central America. "But like everything else south of the border, things move slowly," he stated. "There is any number of obstacles to overcome," he said. "Reducing tariffs and simplifying customs regulations is only part of the problem," continued Casas.
He pointed to poverty, still endemic in much of Central America's population despite a modest growth in GDP among the seven nations. "The countries comprising Central America total some 34 million people, slightly more than California's," he said. "Yet, their per capita income is less than one tenth of the Golden State. The region remains overwhelmingly agricultural although the governments in Central America are making concerted efforts to attract industries to their countries." Casas reported that factories making paint, inexpensive apparel, detergents, tires, paper, fertilizers and insecticides have been established in or near urban areas. "These efforts are starting to bear fruit and increased shipments of locally produced industrial goods are beginning to flow northward," stated the Target district manager.
Panama stands somewhat apart from the other six nations of Central America. Principal reason; the Panama Canal. Marine parts and supplies often are required in a hurry for cruise ships and freighters traversing the Canal. Casas notes that a specialty of Target's Miami office is marine shipments--often on an emergency basis. "It is not unusual for our Miami office to receive a phone call at 2 AM from the traffic manager of a cruise line to send 'like yesterday' items needed for one of its ships about to pass through the Canal. These items may consist of anything from multi-ton parts for the ship's propulsion gear to cartons of dishwasher detergent to clean 3,000 piece of cutlery."
Most of the growth in Central American trade is via ocean, with air freight volume generally flat. Target's partner, Arce Campos, reports that volume out of its Limon office, Costa Rica's largest port, is showing solid growth in ocean freight.
Interestingly, air freight volume is more dependent on the service airlines provide rather than strictly economic trends. Because Central America is a relatively small market for passenger traffic, air freight gets relatively short shrift from the combination carriers serving Honduras, El Salvador, Nicaragua, Belize, Panama, Guatemala and Costa Rica. Continental Airlines, the U.S. carrier with the most flights into and out of Central America, flies only narrow bodied 737s and MD-80s with very little space allotted to cargo. Indeed, comments Casas, there often is more cargo stowed in the passenger bins of the airplanes than in their cargo holds. Central Americans returning from the U.S. load up on all types of consumer goods from television sets to toothpaste, he reported.
Central America also is served by a number of all-cargo airlines operating primarily from Miami. These include Tampa Airlines and Amerijet, but these and other carriers, often consigned to "cockroach alley" at Miami Airport, are small, often inadequately capitalized and prone to bankruptcy. They generally fly aircraft including early model 727s and DC-10s that are obsolescent by U.S. airline standards. "They get the job done, however," affirmed Casas.
Target is aided greatly in its Latin American operations by the partnership arrangement with Arce Campos. The San Jose-based forwarder, with more than 100 employees and offices throughout Central America, is a giant in that region's world of freight forwarding. In addition to freight forwarding, Arce Campos acts as a customs broker, does warehousing and inventory control for a number of Target customers. Jointly, the two companies have sufficient forces to generate new business, particularly in the auto parts field. Target recently snagged Mobis Corporation, exclusive distributors in Latin America for Hyundi and Kia auto parts.
While CAFTA currently is generating more attention in political circles rather than on the freight dock, Casas believes the law's intent of stimulating trade between the U.S. and the seven nations of Central America will have a beneficial effect in the not too distant future. "There is reason for optimism," claims the Target district manager. "Our partner, Arce Campos, reports that Central American governments and currencies are more stable than in the past. They tell us there is a growing partnership between governments and private interests to modernize their nations and make them part of the global economy."
Target Logistic Services plans to expand its Miami office to handle increased business both in Central and South America.
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