Janel Corp (JLWTD)

[2nd Mil]

Janel World Trade, Ltd. Reports Fiscal 2009 First Quarter Operating Results: Record Total Revenue Up 6%, Including Transportation Logistics Gain
Thursday February 19, 8:00 am ET


JAMAICA, NY--(MARKET WIRE)--Feb 19, 2009 -- Janel World Trade, Ltd. (OTC BB:JLWT.OB - News), a full-service global provider of integrated transportation logistics services, today announced financial results for its fiscal year first quarter ended December 31, 2008.




For the three months ended December 31, 2008, the Company reported record revenue of $21,266,128, up 6% or $1,198,782, as compared to fiscal 2008 fiscal first quarter revenue of $20,067,346.

First quarter 2009 net revenue (revenue minus forwarding expenses) was $2,289,440, down from the prior year's level of $2,518,883. [Forwarding expense primarily comprises fees paid by Janel directly to cargo carriers to handle and transport its actual freight shipments on behalf of its customers between initial and final terminal points.] The decline in net revenue is primarily attributable to a higher proportion of transportation logistics revenue generated in the 2009 quarter from ocean freight (which carries a lower average profit margin than airfreight).

The overall revenue gain was the result of increased shipping activity, particularly ocean imports, by existing customers throughout the quarter and across most of the principal industry sectors served by the Company. The revenue gain of $1,331,007, or 7%, in the Company's transportation logistics segment was partially offset by a year-over-year decrease of $132,225, or 52%, over the period in the Company's computer software business. Significantly, as well, quarterly expenses related to both SG&A and amortization of intangible results declined year-over-year by $22,927 and $53,881, respectively.

James N. Jannello, Chief Executive Officer of the Company, stated, "Despite the continuing business problems facing most of our clients during the ongoing slowdown in the U.S. economy, we are most gratified that our transportation logistics revenue has managed to show continuing year-over-year gains. We are confident that this positive revenue trend is the result of our intensive efforts to both retain and expand our customer base has paid dividends. In addition, our fiscal 2008 acquisition of Ferrara has already substantially bolstered the ocean freight portion of our business in the past two quarters."

Mr. Jannello continued, "As we discussed in our full year earnings release last month, the lawsuit we filed in February 2008 against World Logistics Services, Inc. (from which we acquired the OLI business) is ongoing. And, as seen in the lower year-to-year results we have reported in our computer software segment, OLI's business potential has continued to fall short of our original acquisition-based forecasts."

"Accordingly, we believe it is more indicative of the core strength of our business to calculate our results adjusted for the OLI effect. Thus, on a non-GAAP basis, making the normal EBITDA adjustments and also excluding the OLI-related operating loss, Janel would have registered FY 2009 first quarter operating income of $126,814, as contrasted, on a GAAP basis, with our reported a net loss for the first quarter of $(115,490), more than all of which is attributable to the OLI results."

Mr. Jannello concluded, "We are particularly pleased that our first quarter results demonstrate the progress we are making in controlling our operating expenses and in mitigating the disappointing shortfall effects of the OLI acquisition. We are continuing to monitor the OLI business closely and will evaluate all available alternatives with respect to its ongoing effect on Janel's overall results. Nonetheless, we remain confident that the first quarter performance we have reported keeps us on track to produce the overall revenue and earnings gains we have earlier projected for the Company for the full fiscal 2009."

About Order Logistics, Inc.

Order Logistics, Inc., a wholly owned subsidiary of Janel World Trade, Ltd. that is based in Champaign, Illinois, provides solutions that allow companies to more effectively discover, manage, and execute global supply chain strategies. The Order Logistics team, technology, strategies, solutions and dedicated transportation resources allow organizations to access world-class visibility, information and controls without disrupting existing plans, processes, partnerships and information systems. By leveraging technology, business solutions, operational expertise and a centralized capacity network of transportation providers to take advantage of logistical opportunities, Order Logistics provides end-to-end solutions to its customers. This allows each customer to better control its unique distribution network and utilize existing information systems to their full capacity. For additional information, visit www.orderlogistics.com.

About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics services, including domestic and international freight forwarding via multi-modal carriers, customs brokerage, warehousing and distribution, and other transportation-related services. With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong, Shanghai, and Shenzhen), the Company provides the comprehensive services 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 NVOCC (non-vessel operating common carrier) by the Federal Maritime Commission.

Janel World Trade, Ltd.'s headquarters are 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 www.janelgroup.net.

This 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.

(Financial Highlights Follow)



JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


DECEMBER 31, 2008 SEPTEMBER 30, 2008
------------------ ------------------
(Unaudited) (Audited)

ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,531,702 $ 2,428,098
Accounts receivable, net of
allowance for doubtful accounts of
$89,495 at December 31, 2008 and
$129,953 at September 30, 2008 5,941,065 6,102,205
Marketable securities 41,435 52,044
Loans receivable - officers 144,383 142,574
- other 24,817 25,632
Prepaid expenses and sundry current
assets 208,915 228,664
Tax refund receivable 83,000 83,000
------------------ ------------------
TOTAL CURRENT ASSETS 7,975,317 9,062,217
------------------ ------------------

PROPERTY AND EQUIPMENT, NET 275,146 303,855
------------------ ------------------

OTHER ASSETS:
Intangible assets, net 3,210,587 3,300,119
Security deposits 50,801 50,801
Deferred income taxes 810,000 754,000
------------------ ------------------
TOTAL OTHER ASSETS 4,071,388 4,104,920
------------------ ------------------

TOTAL ASSETS $ 12,321,851 $ 13,470,992
================== ==================


CURRENT LIABILITIES:
Convertible promissory note $ 400,000 $ 400,000
Note payable - bank 750,000 750,000
- other 125,000 125,000
Accounts payable - trade 3,249,255 3,902,719
- related party 1,653 143,422
Accrued expenses and taxes payable 166,105 303,659
Current portion of long-term debt 804,083 786,308
------------------ ------------------
TOTAL CURRENT LIABILITIES 5,496,096 6,411,108
------------------ ------------------

OTHER LIABILITIES:
Long-term debt 2,014,738 2,110,237
Deferred compensation 78,568 78,568
------------------ ------------------
TOTAL OTHER LIABILITIES 2,093,306 2,188,805
------------------ ------------------

STOCKHOLDERS’ EQUITY 4,732,449 4,871,079
------------------ ------------------

TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY $ 12,321,851 $ 13,470,992
================== ==================

See notes to financial statements




JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)


THREE MONTHS ENDED DECEMBER 31,
--------------------------------
2008 2007



REVENUES $ 21,266,128 $ 20,067,346
--------------- ---------------

COSTS AND EXPENSES:
Forwarding expenses 18,976,688 17,548,463
Selling, general and administrative 2,277,613 2,300,540
Amortization of intangible assets 107,931 161,812
--------------- ---------------
21,362,232 20,010,815
--------------- ---------------

OPERATING INCOME (LOSS) (96,104) 56,531
--------------- ---------------

OTHER ITEMS:
Interest and dividend income 3,876 17,254
Interest expense (58,262) (33,636)
--------------- ---------------
TOTAL OTHER ITEMS (54,386) (16,382)
--------------- ---------------


INCOME (LOSS) BEFORE INCOME TAXES (150,490) 40,149

Income taxes (credit) (35,000) 18,100
--------------- ---------------


NET INCOME (LOSS) (115,490) 22,049

Preferred stock dividends 3,750 3,750
--------------- ---------------

NET INCOME (LOSS) AVAILABLE TO
COMMON STOCKHOLDERS $ (119,240) $ 18,299
=============== ===============


OTHER COMPREHENSIVE INCOME, NET OF TAX:
Unrealized loss from available for
sale securities $ (10,867) $ (7,008)
=============== ===============
Basic earnings (loss) per share $ (.01) $ .0011
=============== ===============
Fully diluted earnings (loss) per
share $ (.01) $ .0011
=============== ===============
Basic weighted number of shares
outstanding 17,514,738 16,906,000
=============== ===============
Fully diluted weighted number of
shares outstanding 17,914,738 17,306,000
=============== ===============

See notes to financial statements




JANEL WORLD TRADE, LTD. AND SUBSIDIARIES
RECONCILIATION OF EBITDA AND OLI-RELATED
OPERATING LOSS/(INCOME) WITH GAAP
YEAR ENDED DECEMBER 31,
2008 2007
----------- ------------

NET INCOME (LOSS) PER FINANCIAL STATEMENT (115,490) 22,049

INTEREST EXPENSE 58,262 33,636

INCOME TAX EXPENSE (CREDIT) (35,000) 18,100

DEPRECIATION EXPENSE 26,948 31,324

AMORTIZATION EXPENSE 107,931 161,812
----------- ------------

EBITDA (Earnings before interest, taxes,
depreciation and amortization) 42,651 266,921

OLI OPERATING LOSS (INCOME) 84,163 (40,344)
----------- ------------

Earnings before interest, taxes, depreciation,
amortization and OLI-related operating
loss/(income) 126,814 226,577
=========== ============



Contact:
CONTACTS:
Consulting for Strategic Growth 1
Investor Relations:
Stan Wunderlich
CEO
1-646-205-7765
Email: Email Contact

Media Contact:
Meryl Orshan
1-800-625-2236, ext. 7770
Email: Email Contact
http://www.cfsg1.com