Velocity Express ‘pleased’ with 4Q results

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Velocity Express Corp., a provider of time-definite regional delivery solutions, announced operating results for its quarter ended Dec. 27. Revenue was $65.7 million compared to $72.6 million in the September quarter of 2008 and $86.1 million in the December quarter of 2007. The company reported gross profit before depreciation for the quarter of $18.5 million, or 28.1 percent of sales, compared to $19.7 million, or 27.2 percent, in the September quarter of 2008 and $20.6 million, or 23.9 percent, for the same quarter last year.

Operating expenses included in adjusted EBITDA were $16.5 million, or 25.2 percent of sales, compared to $18.3 million (25.2 percent) in the September quarter and $22.4 million (26.0 percent) in the same quarter last year. Adjusted EBITDA was $1.9 million compared to $1.4 million in the September 2008 quarter and a $1.8 million loss for the December quarter last year. The operating loss for the December quarter was $33,000 compared to a loss of $316,000 in the September quarter and $3.9 million in the December 2007 quarter.

“We are pleased to have achieved our third consecutive quarter of positive adjusted EBITDA despite the dramatic economic slowdown,” said Vincent A. Wasik, chairman and chief executive officer of Westport, Conn.-based Velocity Express. “Gross margin continued to improve from year to year, and we continued to manage all other operating expenses in line with revenue.”