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.)

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 February 24, 2010, Express-1 Expedited Solutions, Inc. issued a press release reporting its financial results for the quarter ended December 31, 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 February 24, 2010.

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.
David Yoder
269-695-4947
Dave.Yoder@xpocorporate.com

XPO POSITIONED FOR CONTINUED GROWTH IN 2010

SAINT JOSEPH, Mich. – February 24, 2010 – Express-1 Expedited Solutions, Inc. (XPO) today reported its audited earnings for the fourth quarter ended December 31, 2009.

In the fourth quarter, revenue from continuing operations increased by 27% to $31.6 million compared to $25.0 million in the fourth quarter of 2008. The acquisition of LRG International, Inc. on October 1, 2009 contributed $1.9 million to revenue for the quarter.

During the same period, income from continuing operations improved 17% to $601,000 or $0.02 per fully diluted share compared to $514,000 or $0.02 per diluted share for the fourth quarter of 2008. The fourth quarter results of 2009 include a charge of $400,000 for claims expense that exceeded the Company’s insurance limit, a first time occurrence in the Company’s history.

“The Company was able to adapt to the extremely weak economy during the first half of the year. As business improved, we strategically added key personnel to help us grow in 2010 and beyond.” commented Michael R. Welch, the Company’s CEO.

Investor Conference Call

Management will conduct a conference call Thursday, February 25, 2010 at 10:00 a.m. EST to discuss the Company’s fourth 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 March 4, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 344752.

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). These segments are focused on premium services that include same-day, time-sensitive transportation and domestic and international freight forwarding. Serving more than 2,000 customers, the Company’s premium transportation offerings are provided through one of five operations centers; Buchanan, Michigan; South Bend, Indiana; Downers Grove, Illinois; Rochester Hills, Michigan and Tampa, Florida. The operations are handled by experienced inside

sales staff using the latest operational software. The Company’s expedited ground coverage includes all of North America. The Company provides freight forwarding services with global coverage including air and ocean container freight services. The Company’s operating model can be described as non-asset or asset light, as independent contractors and capacity 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 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 could increase operating expenses and dilute operating margins; increased competition 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

		December 31, 2009				December 31, 2008
Assets
Current assets:
Cash		$	495,000			$	1,107,000
Accounts receivable, net of allowances of $225,000 and $133,000, respectively			17,569,000				12,202,000
Prepaid expenses			158,000				372,000
Deferred tax asset, current			353,000				493,000
Other current assets			459,000				650,000
Total current assets			19,034,000				14,824,000
Property and equipment, net of $2,651,000 and $2,220,000 in accumulated depreciation, respectively			2,797,000				3,141,000
Goodwill			16,959,000				14,915,000
Identified intangible assets, net of $2,198,000 and $1,682,000 in accumulated amortization, respectively			9,175,000				7,631,000
Loans and advances			30,000				63,000
Other long-term assets			1,044,000				1,108,000
Total long-term assets			30,005,000				26,858,000
Total assets		$	49,039,000			$	41,682,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	6,769,000			$	6,578,000
Accrued salaries and wages			310,000				691,000
Accrued expenses, other			2,272,000				862,000
Line of credit			6,530,000				—
Current maturities of long-term debt			1,215,000				1,235,000
Other current liabilities			968,000				1,030,000
Total current liabilities			18,064,000				10,396,000
Line of credit			—				2,320,000
Notes payable and capital leases, net of current maturities			213,000				1,400,000
Deferred tax liability, long-term			1,156,000				583,000
Other long-term liabilities			1,202,000				456,000
Total long-term liabilities			2,571,000				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 shares issued; and 32,035,218 shares outstanding			32,000				32,000
Additional paid-in capital			26,488,000				26,316,000
Treasury stock, at cost, 180,000 shares held			(107,000	)			(107,000	)
Accumulated earnings			1,991,000				286,000
Total stockholders’ equity			28,404,000				26,527,000
Total liabilities and stockholders’ equity		$	49,039,000			$	41,682,000

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

		Three Months Ended Unaudited								Twelve Months Ended
		December 31, 2009				December 31, 2008				December 31, 2009				December 31, 2008
Revenues
Operating revenue		$	31,610,000			$	24,954,000			$	100,136,000			$	109,462,000
Expenses
Direct expense			26,452,000				20,933,000				83,396,000				91,628,000
Gross margin			5,158,000				4,021,000				16,740,000				17,834,000
Sales general and administrative expense			4,036,000				2,977,000				13,569,000				12,664,000
Operating income from continuing operations			1,122,000				1,044,000				3,171,000				5,170,000
Other expense			23,000				69,000				51,000				105,000
Interest expense			31,000				81,000				105,000				354,000
Income from continuing operations before income tax			1,068,000				894,000				3,015,000				4,711,000
Income tax provision			467,000				380,000				1,325,000				1,894,000
Income from continuing operations			601,000				514,000				1,690,000				2,817,000
Income from discontinued operations, net of tax			—				73,000				15,000				339,000
Net income		$	601,000			$	587,000			$	1,705,000			$	3,156,000
Basic income per share
Income from continuing operations			0.02				0.02				0.05				0.09
Income from discontinued operations			0.00				0.00				0.00				0.01
Net income			0.02				0.02				0.05				0.10
Diluted income per share
Income from continuing operations			0.02				0.02				0.05				0.09
Income from discontinued operations			0.00				0.00				0.00				0.01
Net income			0.02				0.02				0.05				0.10
Weighted average common shares outstanding
Basic weighted average common shares outstanding			32,035,218				32,035,247				32,035,218				31,453,765
Diluted weighted average common shares outstanding			32,270,463				32,212,725				32,167,447				31,757,164

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended December 31, 2009 and 2008 — Unaudited

		Quarter to Date								Quarter to Quarter Change								Percent of Revenue
		2009				2008				Change				% Change				2009				2008
Revenues
Express-1		$	16,960,000			$	10,675,000			$	6,285,000				58.9	%			53.7	%			42.8	%
Concert Group Logisitcs			12,423,000				11,832,000				591,000				5.0	%			39.3	%			47.4	%
Bounce Logistics			3,336,000				2,770,000				566,000				20.4	%			10.6	%			11.1	%
Intercompany eliminations			(1,109,000	)			(323,000	)			(786,000	)			-243.3	%			-3.6	%			-1.3	%
Total revenues			31,610,000				24,954,000				6,656,000				26.7	%			100.0	%			100.0	%
Direct expenses
Express-1			13,775,000				8,263,000				5,512,000				66.7	%			81.2	%			77.4	%
Concert Group Logisitcs			11,027,000				10,735,000				292,000				2.7	%			88.8	%			90.7	%
Bounce Logistics			2,759,000				2,258,000				501,000				22.2	%			82.7	%			81.5	%
Intercompany eliminations			(1,109,000	)			(323,000	)			(786,000	)			-243.3	%			100.0	%			100.0	%
Total Direct expenses			26,452,000				20,933,000				5,519,000				26.4	%			83.7	%			83.9	%
Gross margin
Express-1			3,185,000				2,412,000				773,000				32.0	%			18.8	%			22.6	%
Concert Group Logisitcs			1,396,000				1,097,000				299,000				27.3	%			11.2	%			9.3	%
Bounce Logistics			577,000				512,000				65,000				12.7	%			17.3	%			18.5	%
Total gross margin			5,158,000				4,021,000				1,137,000				28.3	%			16.3	%			16.1	%
Selling, general & administrative
Express-1			2,003,000				1,728,000				275,000				15.9	%			11.8	%			16.2	%
Concert Group Logisitcs			1,113,000				525,000				588,000				112.0	%			9.0	%			4.4	%
Bounce Logistics			427,000				355,000				72,000				20.3	%			12.8	%			12.8	%
Corporate			493,000				369,000				124,000				33.6	%			1.6	%			1.5	%
Total selling, general & administrative			4,036,000				2,977,000				1,059,000				35.6	%			12.8	%			11.9	%
Operating income from continuing operations
Express-1			1,182,000				684,000				498,000				72.8	%			7.0	%			6.4	%
Concert Group Logisitcs			283,000				572,000				(289,000	)			-50.5	%			2.3	%			4.8	%
Bounce Logistics			150,000				157,000				(7,000	)			-4.5	%			4.5	%			5.7	%
Corporate			(493,000	)			(369,000	)			(124,000	)			-33.6	%			-1.6	%			-1.5	%
Operating income from continuing operations			1,122,000				1,044,000				78,000				7.5	%			3.5	%			4.2	%
Interest expense			31,000				81,000				(50,000	)			-61.7	%			0.1	%			0.3	%
Other expense			23,000				69,000				(46,000	)			-66.7	%			0.0	%			0.3	%
Income from continuing operations before tax			1,068,000				894,000				174,000				19.5	%			3.4	%			3.6	%
Tax provision			467,000				380,000				87,000				22.9	%			1.5	%			1.5	%
Income from continuing operations			601,000				514,000				87,000				16.9	%			1.9	%			2.1	%
Income from discontinued operations, net of tax			—				73,000				(73,000	)			-100.0	%			0.0	%			0.3	%
Net income		$	601,000			$	587,000			$	14,000				2.4	%			1.9	%			2.4	%

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Twelve Months Ended December 31, 2009 and 2008

		Year to Date								Year to Year Change								Percent of Revenue
		2009				2008				Change				% Change				2009				2008
Revenues
Express-1		$	50,642,000			$	52,639,000			$	(1,997,000	)			-3.8	%			50.6	%			48.1	%
Concert Group Logisitcs			41,162,000				51,136,000				(9,974,000	)			-19.5	%			41.1	%			46.7	%
Bounce Logistics			10,425,000				7,011,000				3,414,000				48.7	%			10.4	%			6.4	%
Intercompany eliminations			(2,093,000	)			(1,324,000	)			(769,000	)			-58.1	%			-2.1	%			-1.2	%
Total revenues			100,136,000				109,462,000				(9,326,000	)			-8.5	%			100.0	%			100.0	%
Direct expenses
Express-1			39,874,000				40,408,000				(534,000	)			-1.3	%			78.7	%			76.8	%
Concert Group Logisitcs			36,979,000				46,578,000				(9,599,000	)			-20.6	%			89.8	%			91.1	%
Bounce Logistics			8,636,000				5,966,000				2,670,000				44.8	%			82.8	%			85.1	%
Intercompany eliminations			(2,093,000	)			(1,324,000	)			(769,000	)			-58.1	%			100.0	%			100.0	%
Total Direct expenses			83,396,000				91,628,000				(8,232,000	)			-9.0	%			83.3	%			83.7	%
Gross margin
Express-1			10,768,000				12,231,000				(1,463,000	)			-12.0	%			21.3	%			23.2	%
Concert Group Logisitcs			4,183,000				4,558,000				(375,000	)			-8.2	%			10.2	%			8.9	%
Bounce Logistics			1,789,000				1,045,000				744,000				71.2	%			17.2	%			14.9	%
Total gross margin			16,740,000				17,834,000				(1,094,000	)			-6.1	%			16.7	%			16.3	%
Selling, general & administrative
Express-1			7,322,000				7,116,000				206,000				2.9	%			14.5	%			13.5	%
Concert Group Logisitcs			3,062,000				2,847,000				215,000				7.6	%			7.4	%			5.6	%
Bounce Logistics			1,331,000				1,079,000				252,000				23.4	%			12.8	%			15.4	%
Corporate			1,854,000				1,622,000				232,000				14.3	%			1.9	%			1.5	%
Total selling, general & administrative			13,569,000				12,664,000				905,000				7.1	%			13.5	%			11.6	%
Operating income from continuing operations
Express-1			3,446,000				5,115,000				(1,669,000	)			-32.6	%			6.8	%			9.7	%
Concert Group Logisitcs			1,121,000				1,711,000				(590,000	)			-34.5	%			2.7	%			3.3	%
Bounce Logistics			458,000				(34,000	)			492,000				1447.1	%			4.4	%			-0.5	%
Corporate			(1,854,000	)			(1,622,000	)			(232,000	)			-14.3	%			-1.9	%			-1.5	%
Operating income from continuing operations			3,171,000				5,170,000				(1,999,000	)			-38.7	%			3.2	%			4.7	%
Interest expense			105,000				354,000				(249,000	)			-70.3	%			0.1	%			0.3	%
Other expense			51,000				105,000				(54,000	)			-51.4	%			0.1	%			0.1	%
Income from continuing operations before tax			3,015,000				4,711,000				(1,696,000	)			-36.0	%			3.0	%			4.3	%
Tax provision			1,325,000				1,894,000				(569,000	)			-30.0	%			1.3	%			1.7	%
Income from continuing operations			1,690,000				2,817,000				(1,127,000	)			-40.0	%			1.7	%			2.6	%
Income from discontinued operations, net of tax			15,000				339,000				(324,000	)			-95.6	%			0.0	%			0.3	%
Net income		$	1,705,000			$	3,156,000			$	(1,451,000	)			-46.0	%			1.7	%			2.9	%