Stonepath Group Continues Restructuring, Sells Air Plus Limited Division
January 29 2007 - 1:06PM
PR Newswire (US)
SEATTLE, Jan. 29 /PRNewswire-FirstCall/ -- Stonepath Group
(AMEX:STG), a global logistics services organization, today
announced it has sold Air Plus for $1.3 million to Logistics
International, LLC. Initial cash proceeds were $1.1 million, plus
another $200,000 has been placed in escrow to secure potential
indemnification claims, and will be additional consideration
assuming there are no such claims. Air Plus, which provides a full
range of logistics and transportation services, is based near
Minneapolis in Shakopee, Minnesota. "This divestiture represents
another critical step in our efforts to return Stonepath Group to
profitability," stated Bob Arovas, Chief Executive Officer.
"Logistics International is acquiring some fixed assets, but is
primarily purchasing a business stream from customers serviced out
of Shakopee. We wrote down the value of Air Plus substantially last
year, so I do not expect that we will show a major gain or loss
from this transaction." "We will use the proceeds from the sale to
lessen our debt, which remains burdensome," Arovas said. "We are
constantly looking for ways to improve our capital and liquidity
position, and divesting business lines is a key component of our
strategy. Domestically, our Automotive and Government Services
units continue to generate solid profits, and we are committed to
growing our successful Asian operations as well. We continue to
seek ways to reduce or restructure our debt to remain a viable
business, and the sale of Air Plus gets us a little closer to our
goal." Logistics International is a privately-owned business,
headquartered in Lakeville, Minnesota. Logistics International
intends to operate and grow the business and to continue to build
upon the history of excellent customer service provided by the
employees of the Air Plus business unit. The senior management team
of the Air Plus business will continue in the operation of the
business for Logistics International. About Stonepath Group
Stonepath Group is a global, third-party logistics organization
providing a full range of transportation and distribution solutions
to multinational and local businesses including a diverse client
mix of retail leaders, automotive and technology concerns,
government agencies, and defense contractors. This Press Release
includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, regarding future
results, levels of activity, events, trends or plans. We have based
these forward- looking statements on our current expectations and
projections about such future results, levels of activity, events,
trends or plans. These forward- looking statements are not
guarantees and are subject to known and unknown risks,
uncertainties and assumptions about us that may cause our actual
results, levels of activity, events, trends or plans to be
materially different from any future results, levels of activity,
events, trends or plans expressed or implied by such
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as "guidance,"
"may," "will," "should," "could," "would," "expect," "plan,"
"anticipate," "believe," "estimate," "continue" or the negative of
such terms or other similar expressions. Although it is impossible
to identify all of the factors that may cause our actual results,
levels of activity, events, trends or plans to differ materially
from those set forth in such forward-looking statements, such
factors include the inherent risks associated with: (i) our ability
to sustain an annual growth rate in revenue consistent with recent
results, (ii) our ability to achieve our targeted operating
margins, (iii) our ability to compute our restructuring efforts
within the costs we now expect, (iv) our ability to realize the
planned benefits from our restructuring efforts, (v) our dependence
on certain large customers, (vi) our dependence upon certain key
personnel, (vii) an unexpected adverse result in any legal
proceeding, (viii) competition in the freight forwarding, logistics
and supply chain management industry, (ix) the impact of current
and future laws affecting the Company's operations, (x) adverse
changes in general economic conditions as well as economic
conditions affecting the specific industries and customers we
serve, and (xi) regional disruptions in transportation. Other
factors that might cause or contribute to such a discrepancy
between expected and actual results include, but are not limited
to, those factors identified in our Securities and Exchange
Commission filings (including our Annual Report on Form 10-K for
2005), other public documents and recent press releases, which can
be found on our corporate web site, http://www.stonepath.com/.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date made.
We undertake no obligation to publicly release the result of any
revision of these forward-looking statements to reflect events or
circumstances after the date they are made or to reflect the
occurrence of unanticipated events. DATASOURCE: Stonepath Group
CONTACT: Jeff Meston of The Cereghino Group for Stonepath Group,
+1-206-802-3927 Web site: http://www.stonepath.com/
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