Target Logistics, Inc. (AMEX: TLG), 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. Target Logistics, Inc. and
Subsidiaries Consolidated Statements of Operations (unaudited) �
Three months ended March 31, Nine months ended March 31, 2007�
2006� 2007� 2006� � Operating revenues $ 43,727,756� $ 37,114,144�
$ 134,726,385� $ 119,964,069� Cost of transportation � 30,552,567�
� 25,393,650� � 94,765,607� � 82,196,489� Gross profit 13,175,189�
11,720,494� 39,960,778� 37,767,580� � � Selling, general and
administrative expenses ("SG&A"): Target subsidiary (exclusive
forwarder commissions) 3,620,334� 3,306,961� 12,102,238�
12,092,788� SG&A - Target subsidiary 8,477,770� 6,807,242�
24,122,246� 20,475,522� SG&A - Corporate 250,222� 333,221�
823,129� 997,728� Depreciation and amortization � 212,880� �
165,888� � 613,955� � 446,724� Selling, general and administrative
expenses 12,561,206� 10,613,312� 37,661,568� 34,012,762� �
Operating income 613,983� 1,107,182� 2,299,210� 3,754,818� � Other
income (expense): Interest (expense) � (34,177) � (40,611) �
(118,291) � (118,519) � Income before taxes 579,806� 1,066,571�
2,180,919� 3,636,299� Provision for income taxes � 239,656� �
456,929� � 974,313� � 1,573,265� Net income $ 340,150� $ 609,642� $
1,206,606� $ 2,063,034� � Net Income per share attributable to
common shareholders: Basic $ 0.02� $ 0.04� $ 0.06� $ 0.12� Diluted
$ 0.02� $ 0.03� $ 0.06� $ 0.10� � Weighted average shares
outstanding: Basic � 18,076,735� � 16,692,679� � 18,043,341� �
16,203,763� Diluted � 21,480,385� � 21,490,385� � 21,480,385� �
21,490,361� Target Logistics, Inc. and Subsidiaries Selected
Balance Sheet Data � March 31, June 30, 2007� 2006� (unaudited)
(audited) � Cash and Cash Equivalents $ 4,782,002� $ 7,015,018� �
Total Current Assets $ 31,665,215� $ 29,797,740� � Total Assets $
47,795,307� $ 45,250,881� � Current Liabilities $ 24,542,926� $
23,014,672� � Long Term Liabilities $ 309,660� $ 555,199� � Working
Capital $ 7,122,289� $ 6,783,068� � Shareholders' Equity $
22,942,721� $ 21,681,010� � Credit Line Availability $ 11,300,996�
$ 11,274,357�
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