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

EXPRESS-1 EXPEDITED SOLUTIONS, INC.

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

(269) 429-9761

Not applicable

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 August 11, 2009, Express-1 Expedited Solutions, Inc. issued a press release reporting its financial results for the quarter ended June 30, 2009. 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 June 30, 2009.

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.
Michael R. Welch, CEO
269-429-9761
mike@xpocorporate.com

EXPRESS-1 EXPEDITING SOLUTIONS EXECUTES STRATEGY

SAINT JOSEPH, Mich. —August 11^th, 2009 — Express-1 Expedited Solutions, Inc. today reported its earnings for the second quarter, ended June 30, 2009.

During the second quarter of 2009, Express-1 Expedited Solutions, Inc. reported a net income of $288,000 compared to $774,000 for the same quarter in 2008. The Company’s performance was impacted by a soft economy that resulted in a 25% reduction in total revenue as compared to the same quarter in 2008. The net income generated in the quarter was primarily attributable to operating cost reductions put in place during the first quarter. Michael R. Welch, the Company’s CEO, shared these thoughts, “We are cautiously optimistic that both revenue and net income will increase for the remainder of the year as we are beginning to see increased freight volumes.”

Selling, General, and Administrative costs decreased by $383,000 in the second quarter of 2009 compared to the same quarter in 2008. The second quarter represented the first period in which the full impact of these cuts was recognized and reduced the Company’s overall SG&A expense from 16% of gross revenues in the first quarter of 2009 to 13.5% of gross revenues in the second quarter of 2009. “We anticipate this percentage being further reduced as the economy improves and we gain additional efficiencies. Our ability to manage our SG&A costs will continue to be a critical component of our financial strategy in 2009,” stated Welch.

Express-1 Expedited Solutions, Inc. continues to maintain a strong balance sheet by successfully administering its accounts receivables. “Our support team has done a tremendous job of managing our accounts receivables; we have not realized any major write-offs during the first 6 months of 2009,” said Welch. The Company’s concentration of risk also remains healthy as it doesn’t have any one customer that represents over 5% of its outstanding receivables. Additionally, the combined receivables of the Big Three automotive manufacturers represent only 4% of the Company’s outstanding accounts receivables as of June 30, 2009.

Overall, cash flow remains healthy as the Company has additional available capacity of $4.7 million on its line of credit and no immediate capital expenditure plans. The Company remains in compliance with all of its debt covenants as of June 30, 2009.

Conference Call/Webcast Information

Management will conduct a conference call Tuesday, August 11, 2009, at 10:00 a.m. Eastern to discuss the Company’s second 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 877-407-0782, with international participants dialing 201-689-8567. A playback will be available until midnight on August 18, 2009. To listen to the playback, please call 877-660-6853 or 201-612-7415 for international callers. Use account number 286 and conference ID number 329293. Additionally, the webcast will be available for 12 months on the corporate website under the Vcall caption.

About Express-1 Expedited Solutions, Inc.

Express-1 Expedited Solutions, Inc. is a non-asset based services organization focused on premium transportation through its business segments, Express-1, Inc. (Buchanan, Michigan), Concert Group Logistics, Inc. (CGL) (Downers Grove, Illinois), and Bounce Logistics, Inc. (South Bend, Indiana). Serving more than 2,000 customers, these business units are focused on premium services that include: same-day, time—sensitive transportation as well as domestic and international freight forwarding. The operations are handled by experienced inside sales staff using the latest in operational software. The Company’s operating model can be described as non-asset or asset light, as independent contractors and capacity obtained through brokerage agreements fulfill the trucking services for most of its shipments. Express-1 Expedited Solutions, Inc. is publicly traded on the NYSE AMEX Equities Exchange (formerly AMEX) 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 risks. These risks include: 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
Consolidated Balance Sheet

		(Unaudited)
		June 30, 2009				December 31, 2008
ASSETS
Current assets:
Cash		$	1,526,000			$	1,107,000
Accounts receivable, net of allowances of $195,000 and $133,000, respectively			12,340,000				12,202,000
Prepaid expenses			224,000				372,000
Deferred tax asset, current			518,000				493,000
Other current assets			472,000				650,000
Total current assets			15,080,000				14,824,000
Property and equipment, net of $2,369,000 and $2,220,000 in accumulated depreciation, respectively			2,931,000				3,141,000
Goodwill			15,602,000				14,915,000
Identifiable intangible assets, net of $1,906,000 and $1,682,000 in accumulated amortization, respectively			7,617,000				7,631,000
Loans and advances			45,000				63,000
Other long term assets			1,178,000				1,108,000
Total long term assets			27,373,000				26,858,000
Total assets		$	42,453,000			$	41,682,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	5,483,000			$	6,578,000
Accrued salaries and wages			296,000				691,000
Accrued expenses, other			1,753,000				862,000
Line of credit			4,715,000				—
Current maturities of long-term debt			1,215,000				1,235,000
Other current liabilities			415,000				1,030,000
Total current liabilities			13,877,000				10,396,000
Line of credit			—				2,320,000
Notes payable and capital leases, net of current maturities			820,000				1,400,000
Deferred tax liability, long-term			443,000				583,000
Other long-term liabilities			401,000				456,000
Total long-term liabilities			1,664,000				4,759,000
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; 32,215,218 and 32,215,218 shares issued; and 32,035,218 and 32,035,218 shares outstanding, respectively			32,000				32,000
Additional paid-in capital			26,408,000				26,316,000
Treasury stock, at cost, 180,000 shares held			(107,000	)			(107,000	)
Accumulated earnings			579,000				286,000
Total stockholders’ equity			26,912,000				26,527,000
		$	42,453,000			$	41,682,000

Express-1 Expedited Solutions
Consolidated Statements of Operation

		Three Months Ended								Six Months Ended
		June 30, 2009				June 30, 2008				June 30, 2009				June 30, 2008
Revenues
Operating revenue		$	22,243,000			$	29,675,000			$	42,315,000			$	53,391,000
Expenses
Direct expense			18,606,000				24,925,000				35,462,000				44,531,000
Gross margin			3,637,000				4,750,000				6,853,000				8,860,000
Sales general and administrative expense			3,006,000				3,389,000				6,249,000				6,539,000
Operating income from continuing operations			631,000				1,361,000				604,000				2,321,000
Other expense			19,000				12,000				9,000				15,000
Interest expense			26,000				99,000				48,000				179,000
Income from continuing operations before income tax			586,000				1,250,000				547,000				2,127,000
Income tax provision			273,000				509,000				259,000				856,000
Income from continuing operations			313,000				741,000				288,000				1,271,000
Income (loss) from discontinued operations, net of tax			(25,000	)			33,000				5,000				146,000
Net income		$	288,000			$	774,000			$	293,000			$	1,417,000
Basic income per share
Income from continuing operations		$	0.01			$	0.02			$	0.01			$	0.05
Income from discontinued operations			—				—				—				—
Net income			0.01				0.02				0.01				0.05
Diluted income per share
Income from continuing operations			0.01				0.02				0.01				0.05
Income from discontinued operations			—				—				—				—
Net income		$	0.01			$	0.02			$	0.01			$	0.05
Weighted average common shares outstanding
Basic weighted average common shares outstanding			32,035,218				31,723,787				32,035,218				30,883,946
Diluted weighted average common shares outstanding			32,147,648				32,067,972				32,139,842				31,225,376

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended June 30,
(Unaudited)

																		Percent of
		Quarter to Date								Quarter to Quarter Change								Business Unit Revenue
		2009				2008				In Dollars				In Percentage				2009				2008
Revenues
Express-1		$	10,090,000			$	14,609,000			$	(4,519,000	)			-30.9	%			45.4	%			49.2	%
Concert Group Logisitcs			10,155,000				14,492,000				(4,337,000	)			-29.9	%			45.7	%			48.8	%
Bounce Logistics			2,232,000				1,045,000				1,187,000				113.6	%			10.0	%			3.5	%
Intercompany eliminations			(234,000	)			(471,000	)			237,000				50.3	%			-1.1	%			-1.5	%
Total revenues			22,243,000				29,675,000				(7,432,000	)			-25.0	%			100.0	%			100.0	%
Direct expenses
Express-1			7,793,000				11,250,000				(3,457,000	)			-30.7	%			77.2	%			77.0	%
Concert Group Logisitcs			9,174,000				13,232,000				(4,058,000	)			-30.7	%			90.3	%			91.3	%
Bounce Logistics			1,873,000				914,000				959,000				104.9	%			83.9	%			87.5	%
Intercompany eliminations			(234,000	)			(471,000	)			237,000				50.3	%			100.0	%			100.0	%
Total direct expenses			18,606,000				24,925,000				(6,319,000	)			-25.4	%			83.6	%			84.0	%
Gross margin
Express-1			2,297,000				3,359,000				(1,062,000	)			-31.6	%			22.8	%			23.0	%
Concert Group Logisitcs			981,000				1,260,000				(279,000	)			-22.1	%			9.7	%			8.7	%
Bounce Logistics			359,000				131,000				228,000				174.0	%			16.1	%			12.5	%
Total gross margin			3,637,000				4,750,000				(1,113,000	)			-23.4	%			16.4	%			16.0	%
Selling, general & administrative
Express-1			1,600,000				1,918,000				(318,000	)			-16.6	%			15.9	%			13.1	%
Concert Group Logisitcs			630,000				866,000				(236,000	)			-27.3	%			6.2	%			6.0	%
Bounce Logistics			273,000				198,000				75,000				37.9	%			12.2	%			18.9	%
Corporate			503,000				407,000				96,000				23.6	%			2.3	%			1.4	%
Total selling, general & administrative			3,006,000				3,389,000				(383,000	)			-11.3	%			13.5	%			11.4	%
Operating income from continuing operations
Express-1			697,000				1,441,000				(744,000	)			-51.6	%			6.9	%			9.9	%
Concert Group Logisitcs			351,000				394,000				(43,000	)			-10.9	%			3.5	%			2.7	%
Bounce Logistics			86,000				(67,000	)			153,000				228.4	%			3.9	%			-6.4	%
Corporate			(503,000	)			(407,000	)			(96,000	)			-23.6	%			-2.3	%			-1.4	%
Operating income from continuing operations			631,000				1,361,000				(730,000	)			-53.6	%			2.8	%			4.6	%
Interest expense			26,000				99,000				(73,000	)			-73.7	%			0.1	%			0.3	%
Other expense			19,000				12,000				7,000				58.3	%			0.1	%			0.0	%
Income from continuing operations before tax			586,000				1,250,000				(664,000	)			-53.1	%			2.6	%			4.2	%
Tax provision			273,000				509,000				(236,000	)			-46.4	%			1.2	%			1.7	%
Income from continuing operations			313,000				741,000				(428,000	)			-57.8	%			1.4	%			2.5	%
Income (loss) from discontinued operations, net of tax			(25,000	)			33,000				(58,000	)			-175.8	%			-0.1	%			0.1	%
Net income		$	288,000			$	774,000			$	(486,000	)			-62.8	%			1.3	%			2.6	%

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Six Months Ended June 30,
(Unaudited)

																		Percent of
		Year to Date								Year to Year Change								Business Unit Revenue
		2009				2008				In Dollars				In Percentage				2009				2008
Revenues
Express-1		$	18,978,000			$	27,777,000			$	(8,799,000	)			-31.7	%			44.8	%			52.0	%
Concert Group Logisitcs			19,794,000				24,963,000				(5,169,000	)			-20.7	%			46.8	%			46.8	%
Bounce Logistics			4,012,000				1,228,000				2,784,000				226.7	%			9.5	%			2.3	%
Intercompany eliminations			(469,000	)			(577,000	)			108,000				18.7	%			-1.1	%			-1.1	%
Total revenues			42,315,000				53,391,000				(11,076,000	)			-20.7	%			100.0	%			100.0	%
Direct expenses
Express-1			14,669,000				21,305,000				(6,636,000	)			-31.1	%			77.3	%			76.7	%
Concert Group Logisitcs			17,926,000				22,716,000				(4,790,000	)			-21.1	%			90.6	%			91.0	%
Bounce Logistics			3,336,000				1,087,000				2,249,000				206.9	%			83.2	%			88.5	%
Intercompany eliminations			(469,000	)			(577,000	)			108,000				18.7	%			100.0	%			100.0	%
Total direct expenses			35,462,000				44,531,000				(9,069,000	)			-20.4	%			83.8	%			83.4	%
Gross margin
Express-1			4,309,000				6,472,000				(2,163,000	)			-33.4	%			22.7	%			23.3	%
Concert Group Logisitcs			1,868,000				2,247,000				(379,000	)			-16.9	%			9.4	%			9.0	%
Bounce Logistics			676,000				141,000				535,000				379.4	%			16.8	%			11.5	%
Total gross margin			6,853,000				8,860,000				(2,007,000	)			-22.7	%			16.2	%			16.6	%
Selling, general & administrative
Express-1			3,452,000				3,780,000				(328,000	)			-8.7	%			18.2	%			13.6	%
Concert Group Logisitcs			1,317,000				1,608,000				(291,000	)			-18.1	%			6.7	%			6.4	%
Bounce Logistics			549,000				334,000				215,000				64.4	%			13.7	%			27.2	%
Corporate			931,000				817,000				114,000				14.0	%			2.2	%			1.5	%
Total selling, general & administrative			6,249,000				6,539,000				(290,000	)			-4.4	%			14.8	%			12.2	%
Operating income from continuing operations
Express-1			857,000				2,692,000				(1,835,000	)			-68.2	%			4.5	%			9.7	%
Concert Group Logisitcs			551,000				639,000				(88,000	)			-13.8	%			2.8	%			2.6	%
Bounce Logistics			127,000				(193,000	)			320,000				165.8	%			3.2	%			-15.7	%
Corporate			(931,000	)			(817,000	)			(114,000	)			-14.0	%			-2.2	%			-1.5	%
Operating income from continuing operations			604,000				2,321,000				(1,717,000	)			-74.0	%			1.4	%			4.3	%
Interest expense			48,000				179,000				(131,000	)			-73.2	%			0.1	%			0.3	%
Other expense			9,000				15,000				(6,000	)			-40.0	%			0.0	%			0.0	%
Income from continuing operations before tax			547,000				2,127,000				(1,580,000	)			-74.3	%			1.3	%			4.0	%
Tax provision			259,000				856,000				(597,000	)			-69.7	%			0.6	%			1.6	%
Income from continuing operations			288,000				1,271,000				(983,000	)			-77.3	%			0.7	%			2.4	%
Income from discontinued operations, net of tax			5,000				146,000				(141,000	)			-96.6	%			0.0	%			0.3	%
Net income		$	293,000			$	1,417,000			$	(1,124,000	)			-79.3	%			0.7	%			2.7	%