UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

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 incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

(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 November 15, 2010, Express-1 Expedited Solutions, Inc. issued a press release reporting its financial results for the quarter ended September 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 November 15, 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 70% IN THIRD QUARTER

SAINT JOSEPH, Mich. — November 15, 2010 — Express-1 Expedited Solutions, Inc. (XPO) today reported its earnings for the third quarter ended September 30, 2010.

For the quarter, revenue from continuing operations increased by 70% to $44.4 million compared to $26.2 million in the third quarter of 2009. Additionally, year over year revenues also increased by 70% to $116.4 million compared to $68.5 million in the initial nine months of 2009.

For the quarter, net income improved by $919,000 to $1.7 million, or $.05 per fully diluted share compared to income of $811,000 in the third quarter of 2009. Year to date net income improved by $3.0 million to $4.1 million or $.12 per fully diluted share compared to net income of $1.1 million in the comparable period in 2009.

“2010 continues to be a breakout year for Express-1 Expedited Solutions and I couldn’t be happier about our strong financial results in what we consider very unsure economic times. We continue to believe that we are well positioned as we look to the immediate future. Again, I would like to thank our employees for their leadership and hard work as we continue to proactively meet and respond to the challenges in our industry.” commented Mike Welch, the Company’s CEO.

“Express-1’s numbers continue to speak for themselves in 2010. Mike and his team have much to be excited about as we continue to emerge from the recession” stated James Martell, Chairman of XPO.

Investor Conference Call

Management will conduct a conference call on Monday, November 15, 2010 at 10:00 a.m. EDT to discuss the Company’s third 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 November 19, 2010. To listen to the playback, please call 877-660-6853. Use account number 286 and conference ID number 360349. 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 six operations centers; Buchanan, Michigan; South Bend, Indiana; Downers Grove, Illinois; Rochester Hills, Michigan; Tampa, Florida, and Miami 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)
		September 30, 2010				December 31, 2009
ASSETS
Current assets:
Cash		$	951,000			$	495,000
Accounts receivable, net of allowances of $302,000 and $225,000, respectively			26,282,000				17,569,000
Prepaid expenses			430,000				158,000
Deferred tax asset, current			169,000				353,000
Other current assets			554,000				459,000
Total current assets			28,386,000				19,034,000
Property and equipment, net of $3,116,000 and $2,651,000 in accumulated depreciation, respectively			2,806,000				2,797,000
Goodwill			16,959,000				16,959,000
Identifiable intangible assets, net of $2,669,000 and $2,198,000 in accumulated amortization, respectively			8,704,000				9,175,000
Loans and advances			162,000				30,000
Other long-term assets			735,000				1,044,000
Total long-term assets			29,366,000				30,005,000
Total assets		$	57,752,000			$	49,039,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	8,780,000			$	6,769,000
Accrued salaries and wages			1,218,000				310,000
Accrued expenses, other			3,469,000				2,272,000
Line of credit			—				6,530,000
Current maturities of notes payable and capital leases			1,671,000				1,215,000
Other current liabilities			495,000				968,000
Total current liabilities			15,633,000				18,064,000
Line of credit			4,073,000				—
Notes payable and capital leases, net of current maturities			2,513,000				213,000
Deferred tax liability, long-term			1,630,000				1,156,000
Other long-term liabilities			841,000				1,202,000
Total long-term liabilities			9,057,000				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; 32,562,522 and 32,215,218 shares issued, respectively; and 32,382,522 and 32,035,218 shares outstanding, respectively			33,000				32,000
Additional paid-in capital			27,077,000				26,488,000
Treasury stock, at cost, 180,000 shares held			(107,000	)			(107,000	)
Accumulated earnings			6,059,000				1,991,000
Total stockholders’ equity			33,062,000				28,404,000
Total liabilities and stockholders’ equity		$	57,752,000			$	49,039,000

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

		Three Months Ended								Nine Months Ended
		September 30, 2010				September 30, 2009				September 30, 2010				September 30, 2009
Revenues
Operating revenue		$	44,448,000			$	26,211,000			$	116,430,000			$	68,526,000
Expenses
Direct expense			36,309,000				21,482,000				95,453,000				56,944,000
Gross margin			8,139,000				4,729,000				20,977,000				11,582,000
Sales general and administrative expense			5,219,000				3,284,000				13,892,000				9,533,000
Operating income from continuing operations			2,920,000				1,445,000				7,085,000				2,049,000
Other expense			48,000				19,000				102,000				28,000
Interest expense			32,000				26,000				140,000				74,000
Income from continuing operations before income tax			2,840,000				1,400,000				6,843,000				1,947,000
Income tax provision			1,110,000				599,000				2,775,000				858,000
Income from continuing operations			1,730,000				801,000				4,068,000				1,089,000
Income from discontinued operations, net of tax			—				10,000				—				15,000
Net income		$	1,730,000			$	811,000			$	4,068,000			$	1,104,000
Basic income per share
Income from continuing operations		$	0.05			$	0.03			$	0.13			$	0.03
Income from discontinued operations			—				—				—				—
Net income			0.05				0.03				0.13				0.03
Diluted income per share
Income from continuing operations			0.05				0.03				0.12				0.03
Income from discontinued operations			—				—				—				—
Net income		$	0.05			$	0.03			$	0.12			$	0.03
Weighted average common shares outstanding
Basic weighted average common shares outstanding			32,381,502				32,035,218				32,154,890				32,035,218
Diluted weighted average common shares outstanding			33,008,742				32,138,885				32,741,822				32,142,150

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Three Months Ended September 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		$	21,407,000			$	14,704,000			$	6,703,000				45.6	%			48.2	%			56.1	%
Concert Group Logistics			18,586,000				8,945,000				9,641,000				107.8	%			41.8	%			34.1	%
Bounce Logistics			5,696,000				3,077,000				2,619,000				85.1	%			12.8	%			11.7	%
Intercompany eliminations			(1,241,000	)			(515,000	)			(726,000	)			-141.0	%			-2.8	%			-1.9	%
Total revenues			44,448,000				26,211,000				18,237,000				69.6	%			100.0	%			100.0	%
Direct expenses
Express-1			16,096,000				11,430,000				4,666,000				40.8	%			75.2	%			77.7	%
Concert Group Logistics			16,699,000				8,026,000				8,673,000				108.1	%			89.8	%			89.7	%
Bounce Logistics			4,755,000				2,541,000				2,214,000				87.1	%			83.5	%			82.6	%
Intercompany eliminations			(1,241,000	)			(515,000	)			(726,000	)			-141.0	%			100.0	%			100.0	%
Total direct expenses			36,309,000				21,482,000				14,827,000				69.0	%			81.7	%			82.0	%
Gross margin
Express-1			5,311,000				3,274,000				2,037,000				62.2	%			24.8	%			22.3	%
Concert Group Logistics			1,887,000				919,000				968,000				105.3	%			10.2	%			10.3	%
Bounce Logistics			941,000				536,000				405,000				75.6	%			16.5	%			17.4	%
Total gross margin			8,139,000				4,729,000				3,410,000				72.1	%			18.3	%			18.0	%
Selling, general & administrative
Express-1			2,779,000				1,867,000				912,000				48.8	%			13.0	%			12.7	%
Concert Group Logistics			1,335,000				632,000				703,000				111.2	%			7.2	%			7.1	%
Bounce Logistics			661,000				355,000				306,000				86.2	%			11.6	%			11.5	%
Corporate			444,000				430,000				14,000				3.3	%			1.0	%			1.6	%
Total selling, general & administrative			5,219,000				3,284,000				1,935,000				58.9	%			11.7	%			12.5	%
Operating income from continuing operations
Express-1			2,532,000				1,407,000				1,125,000				80.0	%			11.8	%			9.6	%
Concert Group Logistics			552,000				287,000				265,000				92.3	%			3.0	%			3.2	%
Bounce Logistics			280,000				181,000				99,000				54.7	%			4.9	%			5.9	%
Corporate			(444,000	)			(430,000	)			(14,000	)			-3.3	%			-1.0	%			-1.6	%
Operating income from continuing operations			2,920,000				1,445,000				1,475,000				102.1	%			6.6	%			5.5	%
Interest expense			32,000				26,000				6,000				23.1	%			0.1	%			0.1	%
Other expense			48,000				19,000				29,000				152.6	%			0.1	%			0.1	%
Income from continuing operations before tax			2,840,000				1,400,000				1,440,000				102.9	%			6.4	%			5.3	%
Tax provision			1,110,000				599,000				511,000				85.3	%			2.5	%			2.3	%
Income from continuing operations			1,730,000				801,000				929,000				116.0	%			3.9	%			3.1	%
Loss from discontinued operations, net of tax			—				10,000				(10,000	)			-100.0	%			0.0	%			0.0	%
Net income		$	1,730,000			$	811,000			$	919,000				113.3	%			3.9	%			3.1	%

Express-1 Expedited Solutions, Inc.
Summary Financial Table
For the Nine Months Ended September 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		$	58,176,000			$	33,682,000			$	24,494,000				72.7	%			50.0	%			49.2	%
Concert Group Logistics			47,598,000				28,739,000				18,859,000				65.6	%			40.9	%			41.9	%
Bounce Logistics			13,494,000				7,089,000				6,405,000				90.4	%			11.6	%			10.3	%
Intercompany eliminations			(2,838,000	)			(984,000	)			(1,854,000	)			-188.4	%			-2.5	%			-1.4	%
Total revenues			116,430,000				68,526,000				47,904,000				69.9	%			100.0	%			100.0	%
Direct expenses
Express-1			44,358,000				26,099,000				18,259,000				70.0	%			76.2	%			77.5	%
Concert Group Logistics			42,653,000				25,952,000				16,701,000				64.4	%			89.6	%			90.3	%
Bounce Logistics			11,280,000				5,877,000				5,403,000				91.9	%			83.6	%			82.9	%
Intercompany eliminations			(2,838,000	)			(984,000	)			(1,854,000	)			-188.4	%			100.0	%			100.0	%
Total direct expenses			95,453,000				56,944,000				38,509,000				67.6	%			82.0	%			83.1	%
Gross margin
Express-1			13,818,000				7,583,000				6,235,000				82.2	%			23.8	%			22.5	%
Concert Group Logistics			4,945,000				2,787,000				2,158,000				77.4	%			10.4	%			9.7	%
Bounce Logistics			2,214,000				1,212,000				1,002,000				82.7	%			16.4	%			17.1	%
Total gross margin			20,977,000				11,582,000				9,395,000				81.1	%			18.0	%			16.9	%
Selling, general & administrative
Express-1			7,155,000				5,319,000				1,836,000				34.5	%			12.3	%			15.8	%
Concert Group Logistics			3,582,000				1,949,000				1,633,000				83.8	%			7.5	%			6.8	%
Bounce Logistics			1,696,000				904,000				792,000				87.6	%			12.6	%			12.8	%
Corporate			1,459,000				1,361,000				98,000				7.2	%			1.3	%			2.0	%
Total selling, general & administrative			13,892,000				9,533,000				4,359,000				45.7	%			11.9	%			13.9	%
Operating income from continuing operations
Express-1			6,663,000				2,264,000				4,399,000				194.3	%			11.5	%			6.7	%
Concert Group Logistics			1,363,000				838,000				525,000				62.6	%			2.9	%			2.9	%
Bounce Logistics			518,000				308,000				210,000				68.2	%			3.8	%			4.3	%
Corporate			(1,459,000	)			(1,361,000	)			(98,000	)			-7.2	%			-1.3	%			-2.0	%
Operating income from continuing operations			7,085,000				2,049,000				5,036,000				245.8	%			6.1	%			3.0	%
Interest expense			140,000				74,000				66,000				89.2	%			0.1	%			0.1	%
Other expense			102,000				28,000				74,000				264.3	%			0.1	%			0.0	%
Income from continuing operations before tax			6,843,000				1,947,000				4,896,000				251.5	%			5.9	%			2.8	%
Tax provision			2,775,000				858,000				1,917,000				223.4	%			2.4	%			1.3	%
Income from continuing operations			4,068,000				1,089,000				2,979,000				273.6	%			3.5	%			1.6	%
Income from discontinued operations, net of tax			—				15,000				(15,000	)			-100.0	%			0.0	%			0.0	%
Net income		$	4,068,000			$	1,104,000			$	2,964,000				268.5	%			3.5	%			1.6	%