Express-1 Expedited Solutions today, Nov. 8, reported its earnings for the third quarter ended Sept. 30.
Express-1 Inc. — the company’s primary operating segment and a provider of ground expedited services for the automotive, manufacturing, logistics, service and other industries — reported a 23.1 percent increase in revenue in the third quarter of 2007. Revenues increased to $13.4 million compared to $10.9 million in the third quarter of 2006. The company reported rapid growth, even in the face of a weakened transportation market.
During the same period, income from operations (income before income tax provision) decreased by 11.8 percent to $798,000 versus $905,000 for the same period in 2006. Net income was $499,000 for the third quarter of 2007 compared to $905,000 for the third quarter of 2006.
Express-1 said most of the decline is related to the recording of a provision for current taxes during the 2007 period. The company did not record a current provision for taxes during the third quarter of 2006, and estimates its net operating loss carry-forwards (NOLs) have been reduced to about $5.2 million as of Sept. 30. At the start of 2007, the company had NOLs of about $8.3 million, which are reduced by current taxable earnings. The company said it does not anticipate paying a significant amount of cash for income taxes until its net operating losses are exhausted.
“Express-1 continues to build on its success, and now has completed eight consecutive quarters of strong top-line growth,” said Michael Welch, chief executive officer of the Buchanan, Mich.-based company. “We continue to gain market share as reflected by our increases in revenue, and remain focused on our earnings. Our fleet of value providers — ‘VP’s,’ as we call them — has steadily increased, and we are focused on giving them more miles and enhancing their quality of life.
“Looking toward the end of 2007, we continue to be focused on adding to our fleet capacity and on further developing of our customer base,” Welch said. “These are two of the primary keys of our successful organic growth. With rate compression like we saw at the start of the third quarter, fleet growth and market expansion are critical to continuing to expand gross margin dollars. Our business model has proven itself over many years and in all types of economic climate. We remain on target to deliver the results we committed to deliver at the start of 2007. By remaining focused on our model and our goals, we should be able to continue growing our company and our profits.”