Velocity Express Corp., a provider of time-definite regional delivery solutions, announced a loss of $13.7 million for its third fiscal quarter ended March 28 compared with a loss of $10.6 million during the year-ago period. Revenue declined to $60.8 million from $82.2 million.
“We are pleased to have achieved our fourth consecutive quarter of positive Adjusted EBITDA despite the dramatic economic slowdown,” said Vincent A. Wasik, chairman and chief executive officer of the Westport, Conn.-based company. “Gross margin continued to improve from year to year, and we continued to manage all other operating expenses in line with revenue.”
Wasik said lower revenue was driven by lower delivery volumes from continuing customers and lower fuel surcharge revenue because of the economic downturn and the continued migration of bank customers to Check 21 scanning technology. “In addition, our managed exit from unfavorable contracts acquired with CD&L contributed to lower revenue in the March quarter of 2009 compared to the March quarter of 2008,” he said.