Integrated Freight Corp. on Wednesday, Aug. 24, said revenues for the fiscal first quarter ended June 30 increased 172.7 percent to a record $13.0 million from $4.8 million in the same quarter last year. The increase is due primarily to the acquisition of Cross Creek Trucking Inc. on April 1, positive effects from the company’s brokerage operations and an increase in freight revenue in correlation to the U.S. economy.
The Sarasota, Fla.-based company reported a net loss of $2.9 million compared to a net loss of $329,388, an increase of $2.5 million. The increase was due primarily to fuel cost increases, higher expenses associated with the acquisition of Cross Creek and higher operating and interest expenses.
“We made significant progress in the first quarter and positioned the business for further growth,” said Paul Henley, chief executive officer. “We achieved strong top-line results as we completed our fourth acquisition and saw increases in freight revenue along with greater revenue capture from the launch of our new freight brokerage in March, Integrated Freight Services. This has allowed us to increase our effective carrier capacity by connecting customers and outside shipping partners. We saw continued profitability of all operating segments of the company. In addition, we strengthened our mergers and acquisitions and financial reporting functions.”
Henley said the company experienced strong revenue in the first quarter, positive cash flows and improvements in its working capital positions at the subsidiary level compared to the same quarter in 2010.
“We are achieving cost savings and efficiencies through the elimination of overlapping lanes and better customer utilization, and through lowering our fleet maintenance cost through bulk buying and nationwide service contracts,” he said. “Our network companies are benefitting from a state-of-the-art technology platform that helps them to grow stronger together. Going forward, we expect the truckload freight market to continue to improve. We see solid opportunities to acquire niche players with loyal customer bases and integrate these businesses successfully and grow organically as the market for freight shipments improves.”