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): August 11, 2010

EXPRESS-1 EXPEDITED SOLUTIONS, INC.

(Exact Name of Registrant as Specified in Its Charter)

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

3399 Lakeshore Drive, Suite 225, Saint Joseph, Michigan, 49085
(Address of principal executive offices — zip code)
(269) 429-9761
(Registrant’s telephone number, including area code)
Not applicable
(former name or former address, if changed since last report)

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, 2010, Express-1 Expedited Solutions, Inc. issued a press release reporting its financial results for the quarter ended June 30, 2010. 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 August 11, 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.
Mike Welch
269-429-9761
Mike.Welch@xpocorporate.com

XPO REVENUES INCREASE BY 81% IN SECOND QUARTER

SAINT JOSEPH, Mich. — August 11, 2010 — Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the second quarter ended June 30, 2010.

For the quarter, revenue from continuing operations increased by 81% to $40.3 million compared to $22.2 million in the second quarter of 2009. Additionally, year over year revenues increased by 70.1% to $72.0 million compared to $42.3 million in the initial six months of 2009.

For the quarter, net income improved by $1.2 million to $1.5 million, or $.05 per fully diluted share compared to income of $288,000 in the second quarter of 2009. Year to date net income improved by $2.0 million to $2.3 million or $.07 per fully diluted share compared to net income of $293,000 in the comparable period in 2009.

“I am extremely pleased with our second quarter results. This is a great accomplishment for our team who has been instrumental in delivering quality solutions to our customers. Obviously, we are very excited about the remainder of the year and look forward to a strong finish in the second half of 2010.” commented Mike Welch, the Company’s CEO.

“I continue to be impressed with Mike and his team’s ability to thrive in this economic environment, and produce these outstanding results,” stated James Martell, Chairman of XPO.

Investor Conference Call

Management will conduct a conference call on Thursday, August 12, 2010 at 10:00 a.m. EDT to discuss the Company’s second quarter financial results. 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 19, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 355058. Those interested in accessing a live or archived Webcast of the call should visit http://www.investorcalendar.com under Express-1 Expedited Solutions, Inc.

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 units, Express-1, Inc. (Buchanan, Michigan), Concert Group Logistics, Inc. (CGL) (Downers Grove, Illinois), and Bounce Logistics, Inc. (South Bend, Indiana). These business units are focused on premium services that include same-day, time-sensitive transportation and domestic and international freight forwarding. Serving

more than 4,000 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. 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.xpocorporate.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

		(Unaudited)
		June 30, 2010				December 31, 2009
ASSETS
Current assets:
Cash		$	280,000			$	495,000
Accounts receivable, net of allowances of $225,000 and $225,000, respectively			23,314,000				17,569,000
Prepaid expenses			472,000				158,000
Deferred tax asset, current			129,000				353,000
Other current assets			459,000				459,000
Total current assets			24,654,000				19,034,000
Property and equipment, net of $2,956,000 and $2,651,000 in accumulated depreciation, respectively			2,642,000				2,797,000
Goodwill			16,959,000				16,959,000
Identifiable intangible assets, net of $2,512,000 and $2,198,000 in accumulated amortization, respectively			8,861,000				9,175,000
Loans and advances			173,000				30,000
Other long-term assets			820,000				1,044,000
Total long term assets			29,455,000				30,005,000
Total assets		$	54,109,000			$	49,039,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	8,874,000			$	6,769,000
Accrued salaries and wages			869,000				310,000
Accrued expenses, other			3,590,000				2,272,000
Line of credit			—				6,530,000
Current maturities of notes payable and capital leases			1,674,000				1,215,000
Other current liabilities			473,000				968,000
Total current liabilities			15,480,000				18,064,000
Line of credit			2,089,000				—
Notes payable and capital leases, net of current maturities			2,929,000				213,000
Deferred tax liability, long-term			1,559,000				1,156,000
Other long-term liabilities			808,000				1,202,000
Total long-term liabilities			7,385,000				2,571,000
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; 32,541,884 and 32,215,218 shares issued, respectively; and 32,361,884 and 32,035,218 shares outstanding, respectively			33,000				32,000
Additional paid-in capital			26,989,000				26,488,000
Treasury stock, at cost, 180,000 shares held			(107,000	)			(107,000	)
Accumulated earnings			4,329,000				1,991,000
Total stockholders’ equity			31,244,000				28,404,000
Total liabilities and stockholders’ equity		$	54,109,000			$	49,039,000

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

		Three Months Ended								Six Months Ended
		June 30, 2010				June 30, 2009				June 30, 2010				June 30, 2009
Revenues
Operating revenue		$	40,340,000			$	22,243,000			$	71,982,000			$	42,315,000
Expenses
Direct expense			33,101,000				18,606,000				59,144,000				35,462,000
Gross margin			7,239,000				3,637,000				12,838,000				6,853,000
Sales general and administrative expense			4,598,000				3,006,000				8,673,000				6,249,000
Operating income from continuing operations			2,641,000				631,000				4,165,000				604,000
Other expense			34,000				19,000				54,000				9,000
Interest expense			88,000				26,000				108,000				48,000
Income from continuing operations before income tax			2,519,000				586,000				4,003,000				547,000
Income tax provision			1,015,000				273,000				1,665,000				259,000
Income from continuing operations			1,504,000				313,000				2,338,000				288,000
Income (loss) from discontinued operations, net of tax			—				(25,000	)			—				5,000
Net income		$	1,504,000			$	288,000			$	2,338,000			$	293,000
Basic income per share
Income from continuing operations		$	0.05			$	0.01			$	0.07			$	0.01
Income from discontinued operations			—				—				—				—
Net income			0.05				0.01				0.07				0.01
Diluted income per share
Income from continuing operations			0.05				0.01				0.07				0.01
Income from discontinued operations			—				—				—				—
Net income		$	0.05			$	0.01			$	0.07			$	0.01
Weighted average common shares outstanding
Basic weighted average common shares outstanding			32,044,116				32,035,218				32,039,706				32,035,218
Diluted weighted average common shares outstanding			32,645,399				32,147,648				32,602,367				32,139,842

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
		2010				2009				In Dollars				In Percentage				2010				2009
Revenues
Express-1		$	20,557,000			$	10,090,000			$	10,467,000				103.7	%			51.0	%			45.4	%
Concert Group Logistics			16,074,000				10,155,000				5,919,000				58.3	%			39.8	%			45.7	%
Bounce Logistics			4,675,000				2,232,000				2,443,000				109.5	%			11.6	%			10.0	%
Intercompany eliminations			(966,000	)			(234,000	)			(732,000	)			-312.8	%			-2.4	%			-1.1	%
Total revenues			40,340,000				22,243,000				18,097,000				81.4	%			100.0	%			100.0	%
Direct expenses
Express-1			15,720,000				7,793,000				7,927,000				101.7	%			76.5	%			77.2	%
Concert Group Logistics			14,426,000				9,174,000				5,252,000				57.2	%			89.7	%			90.3	%
Bounce Logistics			3,921,000				1,873,000				2,048,000				109.3	%			83.9	%			83.9	%
Intercompany eliminations			(966,000	)			(234,000	)			(732,000	)			-312.8	%			100.0	%			100.0	%
Total direct expenses			33,101,000				18,606,000				14,495,000				77.9	%			82.1	%			83.6	%
Gross margin
Express-1			4,837,000				2,297,000				2,540,000				110.6	%			23.5	%			22.8	%
Concert Group Logistics			1,648,000				981,000				667,000				68.0	%			10.3	%			9.7	%
Bounce Logistics			754,000				359,000				395,000				110.0	%			16.1	%			16.1	%
Total gross margin			7,239,000				3,637,000				3,602,000				99.0	%			17.9	%			16.4	%
Selling, general & administrative
Express-1			2,355,000				1,600,000				755,000				47.2	%			11.5	%			15.9	%
Concert Group Logistics			1,093,000				630,000				463,000				73.5	%			6.8	%			6.2	%
Bounce Logistics			613,000				273,000				340,000				124.5	%			13.1	%			12.2	%
Corporate			537,000				503,000				34,000				6.8	%			1.3	%			2.3	%
Total selling, general & administrative			4,598,000				3,006,000				1,592,000				53.0	%			11.4	%			13.5	%
Operating income from continuing operations
Express-1			2,482,000				697,000				1,785,000				256.1	%			12.1	%			6.9	%
Concert Group Logistics			555,000				351,000				204,000				58.1	%			3.5	%			3.5	%
Bounce Logistics			141,000				86,000				55,000				64.0	%			3.0	%			3.9	%
Corporate			(537,000	)			(503,000	)			(34,000	)			-6.8	%			-1.3	%			-2.3	%
Operating income from continuing operations			2,641,000				631,000				2,010,000				318.5	%			6.5	%			2.8	%
Interest expense			88,000				26,000				62,000				238.5	%			0.2	%			0.1	%
Other expense			34,000				19,000				15,000				78.9	%			0.1	%			0.1	%
Income from continuing operations before tax			2,519,000				586,000				1,933,000				329.9	%			6.2	%			2.6	%
Tax provision			1,015,000				273,000				742,000				-271.8	%			2.5	%			1.2	%
Income from continuing operations			1,504,000				313,000				1,191,000				-380.5	%			3.7	%			1.4	%
Loss from discontinued operations, net of tax			—				(25,000	)			25,000				-100.0	%			0.0	%			-0.1	%
Net income		$	1,504,000			$	288,000			$	1,216,000				422.2	%			3.7	%			1.3	%

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
		2010				2009				In Dollars				In Percentage				2010				2009
Revenues
Express-1		$	36,769,000			$	18,978,000			$	17,791,000				93.7	%			51.1	%			44.8	%
Concert Group Logistics			29,012,000				19,794,000				9,218,000				46.6	%			40.3	%			46.8	%
Bounce Logistics			7,798,000				4,012,000				3,786,000				94.4	%			10.8	%			9.5	%
Intercompany eliminations			(1,597,000	)			(469,000	)			(1,128,000	)			-240.5	%			-2.2	%			-1.1	%
Total revenues			71,982,000				42,315,000				29,667,000				70.1	%			100.0	%			100.0	%
Direct expenses
Express-1			28,262,000				14,669,000				13,593,000				92.7	%			76.9	%			77.3	%
Concert Group Logistics			25,954,000				17,926,000				8,028,000				44.8	%			89.5	%			90.6	%
Bounce Logistics			6,525,000				3,336,000				3,189,000				95.6	%			83.7	%			83.2	%
Intercompany eliminations			(1,597,000	)			(469,000	)			(1,128,000	)			-240.5	%			100.0	%			100.0	%
Total direct expenses			59,144,000				35,462,000				23,682,000				66.8	%			82.2	%			83.8	%
Gross margin
Express-1			8,507,000				4,309,000				4,198,000				97.4	%			23.1	%			22.7	%
Concert Group Logistics			3,058,000				1,868,000				1,190,000				63.7	%			10.5	%			9.4	%
Bounce Logistics			1,273,000				676,000				597,000				88.3	%			16.3	%			16.8	%
Total gross margin			12,838,000				6,853,000				5,985,000				87.3	%			17.8	%			16.2	%
Selling, general & administrative
Express-1			4,376,000				3,452,000				924,000				26.8	%			11.9	%			18.2	%
Concert Group Logistics			2,247,000				1,317,000				930,000				70.6	%			7.7	%			6.7	%
Bounce Logistics			1,035,000				549,000				486,000				88.5	%			13.3	%			13.7	%
Corporate			1,015,000				931,000				84,000				9.0	%			1.4	%			2.2	%
Total selling, general & administrative			8,673,000				6,249,000				2,424,000				38.8	%			12.0	%			14.8	%
Operating income from continuing operations
Express-1			4,131,000				857,000				3,274,000				382.0	%			11.2	%			4.5	%
Concert Group Logistics			811,000				551,000				260,000				47.2	%			2.8	%			2.8	%
Bounce Logistics			238,000				127,000				111,000				87.4	%			3.1	%			3.2	%
Corporate			(1,015,000	)			(931,000	)			(84,000	)			-9.0	%			-1.4	%			-2.2	%
Operating income from continuing operations			4,165,000				604,000				3,561,000				589.6	%			5.8	%			1.4	%
Interest expense			108,000				48,000				60,000				125.0	%			0.2	%			0.1	%
Other expense			54,000				9,000				45,000				500.0	%			0.1	%			0.0	%
Income from continuing operations before tax			4,003,000				547,000				3,456,000				631.8	%			5.6	%			1.3	%
Tax provision			1,665,000				259,000				1,406,000				542.9	%			2.3	%			0.6	%
Income from continuing operations			2,338,000				288,000				2,050,000				711.8	%			3.2	%			0.7	%
Income from discontinued operations, net of tax			—				5,000				(5,000	)			-100.0	%			0.0	%			0.0	%
Net income		$	2,338,000			$	293,000			$	2,045,000				698.0	%			3.2	%			0.7	%