UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 8, 2007

EXPRESS-1 EXPEDITED SOLUTIONS, INC.

Delaware		001-32172		03-0450326
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 

 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 8, 2007, Express-1 Expedited Solutions, Inc., issued a press release reporting its financial results for the quarter ended September 30, 2007. A copy of the release is furnished as Exhibit 99.1.

The information furnished herein, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates them by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No.		Exhibit Description
99.1		Press Release dated November 8, 2007.

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT 99.1

Contact:
Express-1 Expedited Solutions, Inc.
Jeff Curry
269-695-4955
Jeff.Curry@express-1.com

EXPRESS-1 EXPEDITED SOLUTIONS (AMEX:XPO) CONTINUES DRIVING
MOMENTUM FOR EIGHTH CONSECUTIVE QUARTER

“REVENUES UP 23%”

BUCHANAN, Mich. — November 8, 2007 — Express-1 Expedited Solutions, Inc. today reported its earnings for the third quarter, ended September 30, 2007.

Express-1, one of the nation’s top providers of ground expedited services for the automotive, manufacturing, logistics, service, and other industries, reported a 23.1% increase in revenue in the third quarter of 2007. Revenues increased to $13.4 million compared to $10.9 million in the third quarter of 2006. The Company continues to grow at a rapid pace, even in the face of a weakened transportation market.

During the same period, income from operations (income before income tax provision) decreased by 11.8% to $798,000 versus $905,000 for the same period in 2006. Net income was $499,000 or $0.02 per diluted share for the third quarter of 2007 compared to $905,000 or $0.03 per diluted share for the third quarter of 2006. Most of the decline is related to the recording of a provision for current taxes during the 2007 period. The Company did not record a current provision for taxes during the third quarter of 2006, and estimates its net operating loss carry-forwards (NOL’s) have been reduced to approximately $5.5 million as of September 30, 2007. At the start of 2007, the Company had net operating loss carry forwards of approximately $8.3 million, which are reduced by current taxable earnings. The Company does not anticipate paying a significant amount of cash for income taxes until its net operating losses are exhausted.

“Express-1 continues to build on its success, and now has completed eight consecutive quarters of strong top-line growth. We continue to gain market share as reflected by our increases in revenue, and remain focused on our earnings. Our fleet of value providers (“VP’s”) as we call them, has steadily increased and we are focused on giving them more miles and enhancing their quality of life,” said Michael Welch, the Company’s Chief Executive Officer. Jeff Curry, President of the Company’s primary operating segment, Express-1, Inc. commented, “Within Express-1 we increased revenues by gaining market share in the face of significant rate pressures. While our margin percentages reflected this rate pressure, our overall gross margin improved due to our growth efforts. We are focused on cost containment and successfully reduced our SG&A as a percentage of revenues, within Express-1, Inc. Our average fleet of VP’s increased by 46% during the period.” Mr. Welch added further, “At the same time, our Evansville segment showed a slight increase in revenue, and most importantly was awarded the rates and assurances we needed to deliver the results we wanted from that location. We remain focused on pushing our momentum as we close out 2007 and plan for 2008.”

Chief Financial Officer Mark Patterson said, “The Company continues to demonstrate the operating leverage we’ve spoken of in the past. Our SG&A declined by a full percentage over the prior year. In the face of a soft transportation economy, it will remain important for us to continue to expand our revenue base and control our back office cost. We’re committed to this model, and believe it gives us more strength and flexibility in periods of weakened demand. We’re pleased with these results and proud of the commitment from our team.”

Outlook

“Looking towards the end of 2007, we continue to be focused on adding to our fleet capacity and on further developing of our customer base. These are two of the primary keys of our successful organic growth,” Welch said. “With rate compression like we saw at the start of the third quarter, fleet growth and market expansion are critical to continuing to expand gross margin dollars. Our business model has proven itself over many years and in all types of economic climate. We remain on target to deliver the results we committed to deliver at the start of 2007. By remaining focused on our model and our goals, we should be able to continue growing our company and our profits.”

Conference Call/Webcast Information

Management will conduct a conference call November 8^th at 11:00 a.m. Eastern to discuss the Company’s third quarter financial results. Those interested in accessing a live or archived Webcast of the call should visit the Company’s Website at www.express-1.com. Those wishing to take part in the live teleconference call can dial 201-689-8031 (International) or 877-407-8031. A playback will be available through midnight on November 15, 2007. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 258506.

About Express-1 Expedited Solutions, Inc.

Offering same-day, time — sensitive, and dedicated transportation to more than 1500 customers, Express-1 is one of the largest ground expedite companies in the country. The company’s premium transportation service is provided through its 24/7 operations center, by experienced inside sales staff using the latest in vehicle tracking and dispatch software. Express-1 services customers in the 48 states and portions of Canada and Mexico. Express-1 utilizes an asset light operating model working with independent contractors that live throughout the Country. Express-1 Expedited Solutions, Inc. is publicly traded on the American Stock Exchange under the symbol XPO. For more information about the Company, visit www.express-1.com.

Forward-Looking Statements

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected

performance, are subject to the following risks: that our recent reorganization fails to result in projected operating efficiencies; the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with customers, whether due to competition or other factors; the inability to comply with regulatory requirements governing our business operations; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

Express-1 Expedited Solutions, Inc.
Consolidated Balance Sheets
(Unaudited)

		September 30,				December 31,
		2007				2006
Assets
Current assets:
Cash and cash equivalents		$	108,000			$	79,000
Accounts receivable, net of allowances of $63,000 and $77,000, respectively			6,251,000				5,354,000
Prepaid expenses			207,000				265,000
Other current assets			266,000				181,000
Deferred tax asset, current			1,069,000				1,069,000
Total current assets			7,901,000				6,948,000
Property and equipment, net of $1,667,000 and $1,410,000 in accumulated depreciation, respectively			2,398,000				2,488,000
Goodwill			5,527,000				5,527,000
Identified intangible assets, net of $1,221,000 and $1,004,000 in accumulated amortization, respectively			4,008,000				4,225,000
Loans and advances			119,000				143,000
Deferred tax asset, long term			1,035,000				2,069,000
Other long term assets			459,000				209,000
		$	21,447,000			$	21,609,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	714,000			$	1,034,000
Accrued salaries and wages			639,000				724,000
Accrued acquisition earnouts			0				1,960,000
Accrued expenses, other			1,532,000				740,000
Current maturities of long term debt			113,000				117,000
Other current liabilities			197,000				295,000
Total current liabilities			3,195,000				4,870,000
Line of credit			103,000				1,159,000
Notes payable and capital leases, net of current maturities			10,000				127,000
Other long-term liabilities			543,000				115,000
Total long-term liabilities			656,000				1,401,000
Stockholders’ equity:
Preferred stock, $.001 par value; 10,000,000 shares no shares issued or outstanding			—				—
Common stock, $.001 par value; 100,000,000 shares authorized; 26,918,768 and 26,516,037 shares issued and 26,738,768 and 26,336,037 shares outstanding			27,000				27,000
Additional paid-in capital			21,003,000				20,459,000
Accumulated deficit			(3,327,000	)			(5,041,000	)
Treasury stock, at cost, 180,000 shares held			(107,000	)			(107,000	)
Total stockholders’ equity			17,596,000				15,338,000
		$	21,447,000			$	21,609,000

Express-1 Expedited Solutions, Inc.
Consolidated Statements of Operations
(Unaudited)

		Three Months Ended								Nine Months Ended
		September 30,				September 30,				September 30,				September 30,
		2007				2006				2007				2006
Revenues
Operating revenue		$	13,359,000			$	10,851,000			$	38,694,000			$	31,526,000
Expenses
Direct expenses			10,310,000				8,005,000				29,111,000				23,391,000
Gross margin			3,049,000				2,846,000				9,583,000				8,135,000
Sales, general and administrative expense			2,271,000				1,861,000				6,763,000				5,505,000
Other expense			(33,000	)			26,000				1,000				158,000
Interest Expense			13,000				54,000				71,000				162,000
Income before income tax provision			798,000				905,000				2,748,000				2,310,000
Income tax provision			299,000				—				1,034,000				—
Net income		$	499,000			$	905,000			$	1,714,000			$	2,310,000
Earnings per common share
Basic income per common share			0.02				0.03				0.06				0.09
Diluted income per common share			0.02				0.03				0.06				0.09
Weighted average common shares outstanding
Basic weighted average common shares outstanding			26,737,547				26,285,241				26,629,119				26,285,104
Diluted weighted average common shares outstanding			27,321,640				26,714,541				27,349,458				26,441,175

Included within the expenses above are depreciation and amortization of $198,000 and $236,000 for the three months ended September 30, 2007 and 2006, respectively; and $649,000 and $749,000 for the nine months ended September 30, 2007 and 2006, respectively.