Universal Express Announces Fiscal Second Quarter Results
THURSDAY , FEBRUARY 19, 2004 10:51 AM
NEW YORK, Feb 19, 2004 (BUSINESS WIRE) -- Universal Express, Inc. (OTCBB:USXP), announced results for the second quarter and six months ended December 31, 2003.
Revenue for the second quarter of 2003 was $14.9 million, compared to $498,000 in the second quarter of 2002. The increase in revenue for the quarter reflects the acquisition of Sub-Contracting Concepts, Inc. (SCI), which the company acquired on December 1, 2003. Results include the operations of SCI only from December 1, 2003 through December 31, 2003, which contributed $13.8 million in revenue. The unaudited proforma net sales, as if the acquisition of SCI had occurred at the beginning of the three-month period, would have been $45.8 million, compared to $29.8 million in the same period last year. Net loss for the second quarter was $2.1 million, or $0.00 per diluted share, compared to a loss of $2.1 million or $0.01 per diluted share in the second quarter of 2002.
Revenue for the first half of fiscal 2004 was $15.1 million, compared to $1.7 million for the same period in fiscal 2002. The increase in revenue for the first half also reflects the acquisition of SCI. The unaudited proforma net sales, as if the acquisition of SCI had occurred at the beginning of the six-month period, would have been $86.9 million, compared to $50.3 million in the same period last year. Net loss for the first half of fiscal 2004 was $4.1 million, or $0.01 per diluted share, compared to a net loss of $3.3 million or $0.01 per diluted share for 2002.
Richard Altomare, president and chief executive officer, stated, " During the second quarter, we achieved several important milestones. Foremost, we completed the acquisition of Sub-Contracting Concepts, Inc. The acquisition of SCI is accretive to earnings, will strengthen our luggage-delivery distribution system, and expand our association programs. As a result, our revenues have increased, while we controlled our operating expenses. Moreover, we now have over $1.7 million in cash, and are in a strong position to grow the business going forward."
Mr. Altomare continued, " Luggage Express, our luggage-free travel service, continued to gain traction during the quarter. Specifically, Crystal Cruises and Mastercard have joined our expanding network of strategic partners. Additionally, we acquired Bags To Go, Inc., which provides luggage check-in services for passengers at the Fort Lauderdale/Hollywood International Airport, and significantly expands our luggage-logistics capabilities. Lastly, we generated strong results in our capital-leasing division, which contributed to improvement in our balance sheet."
About Universal Express
Universal Express, Inc. owns and operates several subsidiaries including Universal Express Capital Corp. (USXP Cash Express Division), Universal Express Logistics (Luggage Express and the Virtual Bellhop, LLC), the WorldPost Network - private postal network, and SCI, our industry insurance company. These subsidiaries and divisions provide the private postal industry, customers, and couriers with value-added services and products, logistical services, equipment leasing, and cost-effective delivery of goods worldwide. For more information visit www.usxp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company`s control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company`s filings with the Securities and Exchange Commission.
UNIVERSAL EXPRESS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2003
ASSETS
--------
CURRENT ASSETS:
Cash $1,720,051
Accounts Receivable 1,287,011
Net Investment in Financing Direct Leases 896,442
Other Receivables 85,067
Other Current Assets 730,878
------------
Total Current Assets 4,719,448
------------
PROPERTY AND EQUIPMENT, net 152,530
------------
OTHER ASSETS:
Loan to Officer 802,153
Related Party Receivables 906,000
Goodwill 8,273,320
Net Investment in Direct Financing Leases 794,663
Net Investment in Operating Leases 746,300
Other Assets 15,155
------------
Total Other Assets 11,537,591
------------
------------
Total Assets $16,409,570
============
LIABILITIES AND STOCKHOLDERS` EQUITY
--------------------------------------
CURRENT LIABILITIES:
Accounts Payable $1,455,000
Accrued Expenses 297,306
Accrued Officers` Salary 1,186,969
Accrued Interest 214,405
Bank Line of Credit 150,247
Current Maturities of Long-Term Debt 3,325,728
Notes Payable 65,900
Convertible Debentures 100,000
------------
Total Current Liabilities 6,795,555
------------
Long-Term Debt, Net of Current Maturities 7,241,576
------------
------------
Total Liabilities 14,037,131
------------
STOCKHOLDERS` EQUITY:
Common Stock, $.005 par value; Authorized 750,000,000
Shares 650,181,232 Shares Issued,650,141,232 Shares
Outstanding 3,250,906
Class B Common Stock, $.005 par value; Authorized
3,000,000 shares 1,280,000 shares issued and outstanding 6,400
Additional Paid-in Capital 49,370,665
Accumulated Deficit (43,958,651)
Accumulated Other Comprehensive Income (119,700)
Stock Rights 6,602,962
Common Stock in Treasury, at cost, 40,000 shares (14,350)
Deferred Costs Related to Stock Issued for Services (8,845,793)
Stock Issued For Collateral (3,920,000)
------------
Total Stockholders` Equity 2,372,439
------------
TOTAL LIABILITIES & STOCKHOLDERS` EQUITY $16,409,570
============
UNIVERSAL EXPRESS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THREE AND SIX MONTHS ENDING DECEMBER 31, 2003 AND 2002
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
2003 2002 2003 2002
---- ---- ---- ----
Revenue $14,879,581 $497,596 $15,062,630 $1,721,886
Cost of
Goods Sold 14,640,078 495,003 14,802,564 1,702,823
----------- -------- ----------- ----------
Gross Profit 239,503 2,593 260,066 19,063
----------- -------- ----------- ----------
Selling, General and
Administrative 2,220,273 2,115,484 4,241,910 3,268,561
Depreciation 8,034 6,528 15,521 12,931
----------- --------- ----------- ----------
Total Operating
Expenses 2,228,307 2,122,012 4,257,431 3,281,492
----------- --------- ----------- ----------
LOSS FROM
OPERATIONS (1,988,804) (2,119,419) (3,997,365) (3,262,429)
Other Income (Expense)
Interest Expense (7,892) (7,737) (16,709) (15,695)
Interest Income 11,854 12,360 23,893 24,850
Income Before
Taxes (1,984,842) (2,114,796) (3,990,182) (3,253,274)
Taxes (69,562) - (69,562) -
------------ ---------- ------------ -----------
Net Income
(Loss) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
LOSS PER COMMON
SHARES $(0.00) $(0.01) $(0.01) $(0.01)
============ ============ ============ ===========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 573,527,478 314,238,819 614,123,950 279,316,938
============ ============ ============ ============
NET INCOME (LOSS) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
OTHER COMPREHENSIVE
INCOME (LOSS)
Unrealized loss of
marketable
securities - - - -
------------ ------------ ------------ ------------
COMPREHENSIVE
INCOME (LOSS) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
============ ============ ============ ===========
Universal Express Inc. and Subsidiaries
Consolidated Statements of Cash Flows - Unaudited
For the Six Months Ended December 31, 2003 and 2002
2003 2002
------ ------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(4,059,744)$(3,253,274)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 15,521 12,931
Amortization Of Deferred Compensation 1,635,994 1,764,718
Common shares issued for services 57,161 30,883
Write-down Officer Loan 16,907 42,487
Changes in assets and liabilities:
Accounts receivable 518,572 5,094
Other receivables (2,242) -
Other assets (688,046) (1,070)
Accounts payable and accrued expenses 173,506 241,584
-----------------------
Total adjustments 1,727,373 2,096,627
-----------------------
NET CASH USED IN OPERATING ACTIVITIES (2,332,371) (1,156,647)
------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Related Party Receivables - (14,576)
Acquisition of Goodwill (680,000)
Acquisition of cash 66,550
Acquisition of property and equipment (35,469) (10,654)
------------------------
Net Cash Used In Investing Activities (648,919) (25,230)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Bank Line of Credit (5,352) (7,335)
Repayments of Notes Payable (4,100) (1,000)
Repayment Long Term Debt - (22,226)
Proceeds from stock rights 3,608,000 1,231,960
Proceeds from sale of stocks 999,600
Repayment of Long term debt (138,844)
------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES $4,459,304 $1,201,399
------------------------
NET INCREASE (DECREASE) IN CASH 1,478,014 19,522
CASH - BEGINNING OF YEAR 242,037 31,342
------------------------
CASH - END OF PERIOD $1,720,051 $50,864
========================
SOURCE: Universal Express, Inc.
CONTACT: Lippert Heilshorn & Associates
Investor Relations:
David K. Waldman/Jody Burfening, 212-838-3777
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Copyright (C) 2004 Business Wire. All rights reserved.
-0-
KEYWORD: NEW YORK
INDUSTRY KEYWORD: PUBLISHING
INSURANCE
BANKING
TRAVEL
TRANSPORTATION
EARNINGS
STOCK SYMBOLS: [(usxp)]
Gru$
masteruz
THURSDAY , FEBRUARY 19, 2004 10:51 AM
NEW YORK, Feb 19, 2004 (BUSINESS WIRE) -- Universal Express, Inc. (OTCBB:USXP), announced results for the second quarter and six months ended December 31, 2003.
Revenue for the second quarter of 2003 was $14.9 million, compared to $498,000 in the second quarter of 2002. The increase in revenue for the quarter reflects the acquisition of Sub-Contracting Concepts, Inc. (SCI), which the company acquired on December 1, 2003. Results include the operations of SCI only from December 1, 2003 through December 31, 2003, which contributed $13.8 million in revenue. The unaudited proforma net sales, as if the acquisition of SCI had occurred at the beginning of the three-month period, would have been $45.8 million, compared to $29.8 million in the same period last year. Net loss for the second quarter was $2.1 million, or $0.00 per diluted share, compared to a loss of $2.1 million or $0.01 per diluted share in the second quarter of 2002.
Revenue for the first half of fiscal 2004 was $15.1 million, compared to $1.7 million for the same period in fiscal 2002. The increase in revenue for the first half also reflects the acquisition of SCI. The unaudited proforma net sales, as if the acquisition of SCI had occurred at the beginning of the six-month period, would have been $86.9 million, compared to $50.3 million in the same period last year. Net loss for the first half of fiscal 2004 was $4.1 million, or $0.01 per diluted share, compared to a net loss of $3.3 million or $0.01 per diluted share for 2002.
Richard Altomare, president and chief executive officer, stated, " During the second quarter, we achieved several important milestones. Foremost, we completed the acquisition of Sub-Contracting Concepts, Inc. The acquisition of SCI is accretive to earnings, will strengthen our luggage-delivery distribution system, and expand our association programs. As a result, our revenues have increased, while we controlled our operating expenses. Moreover, we now have over $1.7 million in cash, and are in a strong position to grow the business going forward."
Mr. Altomare continued, " Luggage Express, our luggage-free travel service, continued to gain traction during the quarter. Specifically, Crystal Cruises and Mastercard have joined our expanding network of strategic partners. Additionally, we acquired Bags To Go, Inc., which provides luggage check-in services for passengers at the Fort Lauderdale/Hollywood International Airport, and significantly expands our luggage-logistics capabilities. Lastly, we generated strong results in our capital-leasing division, which contributed to improvement in our balance sheet."
About Universal Express
Universal Express, Inc. owns and operates several subsidiaries including Universal Express Capital Corp. (USXP Cash Express Division), Universal Express Logistics (Luggage Express and the Virtual Bellhop, LLC), the WorldPost Network - private postal network, and SCI, our industry insurance company. These subsidiaries and divisions provide the private postal industry, customers, and couriers with value-added services and products, logistical services, equipment leasing, and cost-effective delivery of goods worldwide. For more information visit www.usxp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the Company`s control with respect to market acceptance of new technologies, products and services, delays in testing and evaluation of products and services, and other risks detailed from time to time in the Company`s filings with the Securities and Exchange Commission.
UNIVERSAL EXPRESS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2003
ASSETS
--------
CURRENT ASSETS:
Cash $1,720,051
Accounts Receivable 1,287,011
Net Investment in Financing Direct Leases 896,442
Other Receivables 85,067
Other Current Assets 730,878
------------
Total Current Assets 4,719,448
------------
PROPERTY AND EQUIPMENT, net 152,530
------------
OTHER ASSETS:
Loan to Officer 802,153
Related Party Receivables 906,000
Goodwill 8,273,320
Net Investment in Direct Financing Leases 794,663
Net Investment in Operating Leases 746,300
Other Assets 15,155
------------
Total Other Assets 11,537,591
------------
------------
Total Assets $16,409,570
============
LIABILITIES AND STOCKHOLDERS` EQUITY
--------------------------------------
CURRENT LIABILITIES:
Accounts Payable $1,455,000
Accrued Expenses 297,306
Accrued Officers` Salary 1,186,969
Accrued Interest 214,405
Bank Line of Credit 150,247
Current Maturities of Long-Term Debt 3,325,728
Notes Payable 65,900
Convertible Debentures 100,000
------------
Total Current Liabilities 6,795,555
------------
Long-Term Debt, Net of Current Maturities 7,241,576
------------
------------
Total Liabilities 14,037,131
------------
STOCKHOLDERS` EQUITY:
Common Stock, $.005 par value; Authorized 750,000,000
Shares 650,181,232 Shares Issued,650,141,232 Shares
Outstanding 3,250,906
Class B Common Stock, $.005 par value; Authorized
3,000,000 shares 1,280,000 shares issued and outstanding 6,400
Additional Paid-in Capital 49,370,665
Accumulated Deficit (43,958,651)
Accumulated Other Comprehensive Income (119,700)
Stock Rights 6,602,962
Common Stock in Treasury, at cost, 40,000 shares (14,350)
Deferred Costs Related to Stock Issued for Services (8,845,793)
Stock Issued For Collateral (3,920,000)
------------
Total Stockholders` Equity 2,372,439
------------
TOTAL LIABILITIES & STOCKHOLDERS` EQUITY $16,409,570
============
UNIVERSAL EXPRESS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THREE AND SIX MONTHS ENDING DECEMBER 31, 2003 AND 2002
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
2003 2002 2003 2002
---- ---- ---- ----
Revenue $14,879,581 $497,596 $15,062,630 $1,721,886
Cost of
Goods Sold 14,640,078 495,003 14,802,564 1,702,823
----------- -------- ----------- ----------
Gross Profit 239,503 2,593 260,066 19,063
----------- -------- ----------- ----------
Selling, General and
Administrative 2,220,273 2,115,484 4,241,910 3,268,561
Depreciation 8,034 6,528 15,521 12,931
----------- --------- ----------- ----------
Total Operating
Expenses 2,228,307 2,122,012 4,257,431 3,281,492
----------- --------- ----------- ----------
LOSS FROM
OPERATIONS (1,988,804) (2,119,419) (3,997,365) (3,262,429)
Other Income (Expense)
Interest Expense (7,892) (7,737) (16,709) (15,695)
Interest Income 11,854 12,360 23,893 24,850
Income Before
Taxes (1,984,842) (2,114,796) (3,990,182) (3,253,274)
Taxes (69,562) - (69,562) -
------------ ---------- ------------ -----------
Net Income
(Loss) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
LOSS PER COMMON
SHARES $(0.00) $(0.01) $(0.01) $(0.01)
============ ============ ============ ===========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 573,527,478 314,238,819 614,123,950 279,316,938
============ ============ ============ ============
NET INCOME (LOSS) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
OTHER COMPREHENSIVE
INCOME (LOSS)
Unrealized loss of
marketable
securities - - - -
------------ ------------ ------------ ------------
COMPREHENSIVE
INCOME (LOSS) $(2,054,404) $(2,114,796) $(4,059,744) $(3,253,274)
============ ============ ============ ===========
Universal Express Inc. and Subsidiaries
Consolidated Statements of Cash Flows - Unaudited
For the Six Months Ended December 31, 2003 and 2002
2003 2002
------ ------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(4,059,744)$(3,253,274)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 15,521 12,931
Amortization Of Deferred Compensation 1,635,994 1,764,718
Common shares issued for services 57,161 30,883
Write-down Officer Loan 16,907 42,487
Changes in assets and liabilities:
Accounts receivable 518,572 5,094
Other receivables (2,242) -
Other assets (688,046) (1,070)
Accounts payable and accrued expenses 173,506 241,584
-----------------------
Total adjustments 1,727,373 2,096,627
-----------------------
NET CASH USED IN OPERATING ACTIVITIES (2,332,371) (1,156,647)
------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Related Party Receivables - (14,576)
Acquisition of Goodwill (680,000)
Acquisition of cash 66,550
Acquisition of property and equipment (35,469) (10,654)
------------------------
Net Cash Used In Investing Activities (648,919) (25,230)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Bank Line of Credit (5,352) (7,335)
Repayments of Notes Payable (4,100) (1,000)
Repayment Long Term Debt - (22,226)
Proceeds from stock rights 3,608,000 1,231,960
Proceeds from sale of stocks 999,600
Repayment of Long term debt (138,844)
------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES $4,459,304 $1,201,399
------------------------
NET INCREASE (DECREASE) IN CASH 1,478,014 19,522
CASH - BEGINNING OF YEAR 242,037 31,342
------------------------
CASH - END OF PERIOD $1,720,051 $50,864
========================
SOURCE: Universal Express, Inc.
CONTACT: Lippert Heilshorn & Associates
Investor Relations:
David K. Waldman/Jody Burfening, 212-838-3777
Customize your Business Wire news & multimedia to match your needs.
Get breaking news from companies and organizations worldwide.
Logon for FREE today at www.BusinessWire.com.
Copyright (C) 2004 Business Wire. All rights reserved.
-0-
KEYWORD: NEW YORK
INDUSTRY KEYWORD: PUBLISHING
INSURANCE
BANKING
TRAVEL
TRANSPORTATION
EARNINGS
STOCK SYMBOLS: [(usxp)]
Gru$
masteruz
