Integrated Freight Corporation, a motor freight company that works alongside its subsidiaries to provide long haul, regional, and local services, has announced its financial results for its second fiscal quarter and six months ended September 30,2011.
Highlights for the fiscal second quarter and six-month include: Revenue for the second quarter grew 144.7% to $11.8 million; revenue for the six months ended September 30, 2011 experienced an increase of 158.6% to $24.8 million; net cash provided by operating activities for the six months ended September 30, 2011 grew sharply to $946,485, in comparison to the $109,430 seen for the corresponding period last year.
“We achieved strong revenue growth for the second quarter and first half of the year as we better positioned the business for growth,” stated Paul Henley, Chief Executive Officer of Integrated Freight. “Our net cash flow from operations increased significantly to $946,485 in the first half compared to $109,430 in the same period last year. Our strong cash flow from operations will allow us to finance our organic growth as we evaluate strategic acquisitions in our industry. During the first half of the year, we completed the acquisition of Cross Creek Trucking, our fourth subsidiary company, and saw increases in freight revenue and are encouraged by our profitability with Integrated Freight Services, our freight brokerage that we launched in March.”
Second Quarter Fiscal Results
Revenue for the fiscal second quarter, ended September 30, 2011, grew 144.7% to $11.8 million from the $4.8 million seen for the corresponding quarter last year. The growth is mainly due to the acquisition of Cross Creek Trucking, Inc. on April 1,2011, growth seen in freight revenue in correlation with the United State’s economy, and positive effects from the Company’s growing brokerage operations.
Operating expenses for the fiscal second quarter, ended September 30, 2011, increased by 132.5% to $11.8 million, in comparison to $5.1 million for the three months ended September 30, 2010. The increase was less than the increase seen for revenue due to the increase in fuel costs and transaction costs associated with the acquisition of Cross Creek Trucking, along with higher wages, benefits, salaries, and general and administrative costs. Administrative and general costs for the three months ended September 20, 2011 rose by 147% to $1.2 million, in comparison to the $468,902 for the same period last year. Fuel and fuel taxes for the three months ended September 30, 2011, rose by 227.1% to $4.0 million, in comparison to the $1.2 million seen for the three months ended September 30, 2010. Salaries, wages, and benefits rose 188.5% to $3.8 million for the three months ended September 30, 2011, compared to the $1.3 million for the corresponding period a year prior.
The Company has announced a net loss of $1.4 million for the fiscal second quarter ended September 30, 2011, or $0.04 per diluted share. For the three months ended September 30, 2010, a net loss of $301,795, or $0.01 per diluted share, was reported. The increase of $1.1 million was due to the increases in fuel costs, higher expenses in association with the acquisition of Cross Creek Trucking, Inc. and increased interest and operating expenses.
Six Month Results
Revenue for six months ended September 30, 2011 grew by 158.6% to $24.8 million from the $9.6 million reported in the six months ended September 30, 2010. Operating expenses for the six months ended September 30, 2011 experienced an increase of 162.6% to $26.7 million, in comparison to the reported $10.2 million for the six months ended September 30, 2010. Operating loss for the six months ended September 30, 2011 increased to $1.9 million from $566,342 for the six months ended September 30, 2010. The increase was caused by the acquisition of Cross Creek Trucking, Inc. and included $795,000 of transactions costs associated with the acquisition as well as an increase in fuel costs. The Company has reported a net loss of $4.3 million for the six months ended September 30, 2011, or $0.12 per diluted share, in comparison to a net loss of $854,088, or $0.04 per diluted share, for the six months ended September 30, 2010, an increase of $3.4 million.
Financial Conditions
As of September 30, 2011, the Company had no cash nor cash equivalents versus cash and cash equivalents of $54,158 as of March 31, 2011. Total liabilities and stockholders’ deficit was reported at $19.1 million as of September 30, 2011, compared to the total liabilities and stockholders’ deficit of $7.8 million for the period ended March 31, 2011. Net cash provided by operating activities for the six months ended September 30, 2011 was $946,485, in comparison to $109,430 for the six months ended September 30, 2010.
“We are confident about the prospects for our business for the remainder of the year as we execute our growth and integration strategy,” stated Mr. Henley. “We made considerable strides in the first half of the year. We are achieving cost savings and efficiencies through the elimination of overlapping lanes, better customer utilization and lowering our fleet maintenance costs through bulk buying and nationwide service contracts. Our network of subsidiary companies is benefitting from our state-of-the-art trucking technology platform, which is helping us run more efficiently while controlling overhead. We are excited by the growth prospects for our business going forward and see solid opportunities to acquire additional niche trucking players and integrate them into our growing network.”
For more information on the Company, visit http://www.integrated-freight.com
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