Integrated Freight Corp. on Wednesday, Feb. 23, announced that gross revenue for its fiscal third quarter ended Dec. 31, 2010, increased 135.5 percent to $10.34 million from $4.39 million for the same period in 2009. Net loss was $1.68 million, up from $0.86 million.
For the previous nine months, gross revenue increased 94.4 percent to $25.71 million from $13.22 million for the same nine-month period in 2009, due to two primary factors: the acquisition of Triple C Transportation in May 2010 and the increase in freight revenue in correlation to the U.S. economy. Net loss was $2.53 million, up from $2.43 million, a result of increased sales and lower operating expenses as a percentage of sales offset by increased corporate level general and administrative expenses.
We had a successful quarter, achieving high growth rates with respect to revenue and infrastructure,” said Paul Henley, chief executive officer of Integrated Freight, based in Sarasota, Fla. “As we continue to work towards reaching critical revenue volume, we expect the benefits of our integration model to fully appear, improving the net results for the company in the quarters ahead.”
The company says it has experienced positive cash flows and improvements in its working capital positions at the subsidiary level during the most recent quarter, and that as it begins to consolidate the duplicated functions among its subsidiaries, it is expected to achieve further savings that will be reflected in improved cash flows and working capital positions. The company says expenses associated with maintaining its reporting under the Securities Exchange Act at the parent level has contributed to consolidated negative cash flow and working capital positions.
Integrated Freight says it does not expect a positive change in these factors until it completes additional acquisitions, if any, which will enable the company to spread the parent’s expenses that are associated with being a publicly traded and reporting company and costs of future acquisition over a larger revenue and cash flow base. The company says it is optimistic about the economic recovery, but adds the transportation industry is generally cash lean with overleveraged balance sheets. The company says it intends to invest more heavily as demand for truckload services improves and that it believes it is well-positioned to grow its business as the recovery continues to develop.