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Velocity Express Announces Unaudited Fourth Quarter and Fiscal
2008 Year End Results
WESTPORT, Conn. September 26, 2008 Velocity Express Corporation (NASDAQ: VEXPNews), the nations largest provider of time definite regional delivery solutions, announced unaudited operating results for the fourth quarter and year ended June 28, 2008.
|($ thousands)||June 28, 2008||March 29, 2008||June 30, 2007 (a)|
Gross Profit Margin %
Income / (Loss) from Operations before Goodwill Impairment (see Exhibit A)
Income / (Loss) from Operations
Adjusted EBITDA (see Exhibit A)
|(a)||As previously disclosed, June 2007 Revenue, Income / (Loss) from Operations and Adjusted EBITDA benefited from the non-cash amortization into revenue of $1.5 million of unfavorable contracts assumed with the CD&L merger.|
Revenue for the quarter ended June 28, 2008 was $79.3 million compared to $82.2 million in the March quarter of 2008 and $98.6 million in the June quarter of 2007. The Company reported gross profit for the quarter of $22.3 million, or 28.2% of sales, compared to gross profit of $20.5 million, or 25.0%, in the March quarter of 2008 and $26.4 million, or 26.8% of sales for the same quarter last year. Operating expenses before goodwill impairment were $21.6 million compared to $24.2 million in the March quarter and $26.6 million in the same quarter last year. During the quarter, the Company reported a goodwill impairment of $52.5 million related to a revaluation of the Companys goodwill asset, principally related to the CD&L acquisition. Total operating loss for the quarter, including the goodwill impairment charge, was $51.8 million compared to a loss of $182,000 in the same quarter last year. Adjusted EBITDA was $2.1 million compared to a loss of $1.7 million in the March 2008 quarter and $2.8 million for the same quarter last year which included a purchase accounting benefit of $1.5 million.
Revenue for the year ended June 28, 2008 was $340.9 million compared to $410.1 million last year. The Company reported gross profit for the year of $86.0 million, or 25.2% of sales, compared to gross profit of $98.0 million, or 23.9% of sales, last year. Operating expenses before goodwill impairment was $95.5 million compared to $117.6 million last year. Adjusted EBITDA was a loss of $1.2 million compared to a loss of $1.7 million last year. Total operating loss for the year, including the $52.5 million goodwill impairment, was $61.9 million compared to $19.6 million last year.
Vincent A. Wasik, Velocitys Chairman and Chief Executive Officer, stated, We were pleased to achieve positive adjusted EBITDA for the quarter despite the current recessionary environment which has reduced shipping volumes from continuing customers and increased pressure on pricing. With the award in June and start-up in July of a multi-year agreement to provide retail store replenishment and vendor in-bound delivery services to Stage Stores, we made progress in positioning the Company for enhanced growth in the retail segment and long-term profitability. Our gross margins improved sequentially due to the re-alignment of driver settlements with prevailing market rates and renegotiation or exit from unfavorable fuel indexing provisions. In addition, we reduced operating expenses during the quarter in line with lower revenue.
Mr. Wasik concluded, We continue to phase out unfavorable low margin contracts and focus on building a pipeline of profitable opportunities in the retail and healthcare sectors, now totaling $170 million. However, we are very concerned about effect of the current economic climate on our delivery volumes.
The following information was filed by Velocity Express Corp on Monday, September 29, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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