Janel World Trade Ltd. Reports Second Quarter Revenue of $22.7M an 18% Increase vs. Prior Year Second Quarter

May 16, 2011

JAMAICA, NY--(Marketwire - 05/16/11) - Janel World Trade, Ltd. (OTC.BB:JLWT - News), a full-service global provider of integrated transportation logistics and vertically integrated supply chain services in the food industry, announced today financial results for the three and six months ending March 31, 2011.Second Quarter ResultsFor the three months ending March 31, 2011, Janel reported revenue of $22,701,632, an increase of $3,430,677 or up 17.8% compared to the three months ended March 31, 2010.For the three months ending March 31, 2011, the Company reported a net loss available to common shareholders of $(144,021) or $(0.006) per fully diluted share, down from the prior year reported net income available to common shareholders of $102,334, or $0.006 per fully diluted share.Fiscal Year to Date Six Month ResultsFor the six months ending March 31, 2011, Janel reported revenue of $49,135,626, an increase of $12,866,739 or up 35.5% compared to the six months ended March 31, 2010.For the six months ending March 31, 2011, the Company reported a net loss available to common shareholders of $(139,201) or $(0.006) per fully diluted share, down from the prior year reported net income available to common shareholders of $48,547, or $0.003 per fully diluted share.Review and Outlook"Taking into account that our first and second quarters are historically the weakest due to seasonal factors, the results were disappointing for the quarter ended March 31, 2011," said James N. Jannello, Executive Vice President and Chief Executive Officer. "We experienced slightly higher freight volumes from most of our customers when compared to the prior year, and the bulk of the increase in volume that we did see was from our larger customers but it was at a higher cost of sales than the prior year so the net impact of the revenue increase to us did not fall to our bottom line. Prior to this quarter's earnings we had four consecutive quarters reflecting record quarterly revenue and positive earnings. In addition, during the quarter we prepared for the launch of our new operating division which is focused on vertical integrated supply chain services primarily in the food industry and, as previously announced, the division has already signed a long term agreement with its first customer to handle all supply chain services. We expect this new division to substantially contribute to our overall gross profit margins."Jannello continued, "Looking ahead, our expectation is for improvement in our financial results for 2011 and exceeding $100 million in annual revenue. Our new operating division focused on vertical supply chain services, our recent asset acquisition of Ferrara International Logistics and our core logistics business units performing in a recovering economy, along with our anticipation that our customers will continue to report improvement in their respective businesses and the addition of new customers, leads us to the expectation that we can finish fiscal year 2011 with another record revenue year and increased net income."Jannello concluded, "We are excited about the significant profit potential in our new operating division catering to the food industry. By being involved from the production to the selling of food products, Janel will be realizing higher gross profit margins than just capturing the logistics portion of the distribution channel. We look forward to working closely with our first client, Paul Sorvino Foods, Inc."To be included in Janel's database for Corporate Press Releases and industry updates, investors are invited to send their e-mail address to: IRInfo@janelgroup.net.About Janel World Trade, Ltd.Janel World Trade, Ltd. is a global provider of integrated logistics; including domestic and international freight forwarding via multi-modal carriers, leading-edge, end-to-end, supply-chain technology, customs brokerage, warehousing and distribution, and other transportation-related services; and a provider of vertically integrated supply chain services in the food industry. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and a network of independent international agents in approximately 52 countries, the Company provides the comprehensive logistics services and technology necessary to handle its customers' shipping needs throughout the world. Cargo can be transported via air, sea or land, and Janel's national network of locations can manage the shipment and/or receipt of cargo into or out of any location in the United States. Janel is registered as an Ocean Transportation Intermediary and licensed as a FMC Licensed Freight Forwarder by the Federal Maritime Commission.Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York, adjacent to the JFK International Airport, and its common stock is listed on the OTC Bulletin Board under the symbol "JLWT". Additional information on the Company is available on its website at http://www.janelgroup.netForward-Looking StatementsThis press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's dependence upon conditions in the air, ocean and land-based freight forwarding industry, the size and resources of many competitors, the need for the Company to effectively integrate acquired businesses and to successfully deliver its primary services, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission, including its most recent Form 8-K, Form 10-Q and Form 10-K filings. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

 
JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)


THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
------------------ ------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------

REVENUES $ 22,701,632 $ 19,270,955 $ 49,135,626 $ 36,268,887

COST AND EXPENSES:
Forwarding
expenses 20,364,643 17,196,205 44,198,680 32,280,020
Selling, general
and
administrative 2,456,266 1,839,712 4,897,451 3,721,104
Depreciation and
amortization 95,563 60,954 179,598 121,695
------------ ------------ ------------ ------------
TOTAL COSTS
AND EXPENSES 22,916,472 19,096,871 49,275,729 36,122,819
------------ ------------ ------------ ------------

OPERATING (LOSS)
INCOME (214,840) 174,084 (140,103) 146,068
------------ ------------ ------------ ------------

OTHER ITEMS:
Interest and
dividend income 934 1,137 2,187 2,806
Interest expense (25,742) (32,537) (72,785) (54,827)
------------ ------------ ------------ ------------
TOTAL OTHER
ITEMS (24,808) (31,400) (70,598) (52,021)
------------ ------------ ------------ ------------

(LOSS) INCOME
BEFORE INCOME
TAXES (239,648) 142,684 (210,701) 94,047

Income taxes
(credits) (99,377) 36,600 (79,000) 38,000
------------ ------------ ------------ ------------

NET (LOSS) INCOME $ (140,271) $ 106,084 $ (131,701) $ 56,047

Preferred stock
dividends 3,750 3,750 7,500 7,500
------------ ------------ ------------ ------------

NET (LOSS) INCOME
AVAILABLE TO
COMMON
SHAREHOLDERS $ (144,021) $ 102,334 $ (139,201) $ 48,547
------------ ------------ ------------ ------------

OTHER COMPREHENSIVE
INCOME NET OF TAX:
Unrealized gain
(loss) from
available for
sale securities $ 2,869 $ 3,120 $ 8,429 $ 4,272
============ ============ ============ ============

Basic earnings
(loss) per share $ (0.007) $ 0.006 $ (0.007) $ 0.003
============ ============ ============ ============
Fully diluted
earnings (loss)
per share $ (0.006) $ 0.006 $ (0.006) $ 0.003
============ ============ ============ ============
Basic weighted
average shares
outstanding 21,048,729 18,013,332 20,801,652 18,013,332
============ ============ ============ ============
Fully diuted
weighted average
shares outstanding 22,704,285 18,453,332 22,850,528 18,453,332
============ ============ ============ ============

See notes to these consolidated financial statements included in the
Company's Form 10-Q





JANEL WORLD TRADE LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


March 31, September
2011 30, 2010
------------ ------------
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 732,225 $ 1,354,912
Accounts receivable, net of allowance for
doubtful accounts of $163,375 and $106,987,
respectively 5,304,737 6,841,607
Marketable securities 63,499 54,748
Loans receivable - officers 94,219 97,092
- other - 583
Prepaid expenses and sundry current assets 145,293 96,608
------------ ------------
TOTAL CURRENT ASSETS 6,339,973 8,445,550
------------ ------------

PROPERTY AND EQUIPMENT, NET 121,969 111,478

OTHER ASSETS:
Intangible assets, net 3,413,175 1,714,702
Security deposits 58,588 53,688
Deferred income taxes 1,078,000 1,017,000
------------ ------------
TOTAL OTHER ASSETS 4,549,763 2,785,390
------------ ------------

TOTAL ASSETS $ 11,011,705 $ 11,342,418
============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Note payable - bank $ 951,335 $ 951,335
Accounts payable - trade 3,265,273 4,516,547
Accrued expenses and taxes payable 284,362 564,386
Current portion of long-term debt 97,223 581,019
Note payable - related party 431,111 -
------------ ------------
TOTAL CURRENT LIABILITIES 5,029,304 6,613,287
------------ ------------

LONG-TERM DEBT 835,556 13,889
DEFERRED COMPENSATION 78,568 78,568
------------ ------------
TOTAL OTHER LIABILITIES 914,124 92,457
------------ ------------

STOCKHOLDERS' EQUITY 5,068,277 4,636,674
------------ ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,011,705 $ 11,342,418
============ ============

See notes to these consolidated financial statements included in the
Company's Form 10-Q






JANEL WORLD TRADE LTD. AND SUBSIDIARIES
EBITDA RECONCILIATION WITH GAAP
(UNAUDITED)



THREE MONTHS ENDED SIX MONTHS ENDED
March 31, March 31,
------------------ ------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------

Net (loss) income per
financial statement $ (140,271) $ 106,084 $ (131,701) $ 56,047
Interest expense 25,742 32,537 72,785 54,827
Interest and dividend
(income) (934) (1,137) (2,187) (2,806)
Income tax expense
(credits) (99,377) 36,600 (79,000) 38,000
Depreciation 24,800 20,691 38,072 41,169
Amortization 70,763 40,263 141,526 80,526
---------- ---------- ---------- ----------

EBITDA (Earnings before
interest, taxes
depreciation and
amortization) $ (119,277) $ 235,038 $ 39,495 $ 267,763
========== ========== ========== ==========