Janel World Trade, Ltd. Announces Record Net Revenue and 448% Earnings Increase for...

Janel World Trade, Ltd. Announces Record Net Revenue and 448% Earnings
Increase for FY2007

JAMAICA, N.Y., Jan. 15 /PRNewswire-FirstCall/ -- Janel World Trade, Ltd.
(OTC Bulletin Board: JLWT), a full-service global provider of integrated
logistics services, today announced its operating results for the fiscal year
ended September 30, 2007.
For the twelve months ended September 30, 2007, the Company's total
revenue declined 2.9% to approximately $74.9 million, compared with
approximately $77.2 million in the previous fiscal year. Net revenue (revenue
minus forwarding expenses) improved 1.5% in FY2007 to a record $8,172,364,
versus $8,052,822 in FY2006. Net income available to common shareholders
increased 448% to $312,146, or $0.018 per diluted share, compared with
$56,995, or $0.003 per diluted share, in the fiscal year ended September 30,
2006. The improvement in net income was primarily due to a sharp reduction in
stock-based compensation expense and a lower effective income tax rate in
FY2007 when compared with FY2006 results.
"The slight decrease in total revenue during Fiscal 2007 was primarily due
to a generally quieter overall environment in international trade in all of
the principal industry sectors served by the Company, which include apparel,
footwear, household appliances and electronics, and sporting goods and
accessories," stated James N. Jannello, Chief Executive Officer of Janel World
Trade, Ltd. "Revenue was also negatively affected by the continuing
substitution, when possible, of lower-priced ocean freight versus airfreight
by many of our customers. I am pleased to report, however, that despite a
soft logistics industry environment, Janel essentially maintained its overall
business activities with existing clients and added several new clients to its
customer base. While total revenue declined for the year, net revenue
increased to a new record, and our pretax and net income recovered
significantly from Fiscal 2006 levels."
"Looking forward, the most strategically important development in 2007
occurred shortly after the end of our fiscal year, when Janel acquired the
business assets of Order Logistics, Inc.," continued Jannello. "The
acquisition included the Internet-based supply chain technology solution Solve
(IT)2, which enables customers to collaborate in the planning, execution,
management and tracking of orders and shipments, financial settlement,
procurement and quality control activities on a worldwide basis. We are now
well-positioned as a value-added provider of end-to-end global supply chain
solutions. Our mission was to differentiate the Janel companies from other
logistics providers in our markets, and we have more than accomplished that
mission."
"Several key market dynamics should enable Janel to leverage its position
in the logistics industry and to accelerate the Company's future growth in
revenue and earnings. Logistics costs, as a percent of US gross domestic
product (GDP), continue to rise, and supply chains are becoming more global
and complex. International trade volumes are doubling every five to seven
years, global sourcing is growing rapidly, and many mid-sized companies are
finding it difficult to compete with major global sourcing organizations.
Janel is uniquely positioned to become the logistics provider of choice for
such companies, with its capability to design custom supply chain solutions,
deliver the benefits of high-end technology, and allow corporate executives to
manage, track and control the status of international orders and shipments in
a "real-time" environment at any point in the procurement process."
"During the current fiscal year, we will increase our sales and marketing
efforts to boost revenue in our higher margin business segments, and we have
negotiated strategic alliances to expand our global sourcing channels,"
continued Jannello. "We will invest in product enhancements to maintain our
competitive advantages in supply chain technology solutions and other
value-added services. By combining Janel's traditional logistics capabilities
with Order Logistics' technology and data solutions, we believe our Company is
well-positioned to increase market share and satisfy far-reaching changes in
government mandates for cargo security and customs clearance standards. As
evidenced by recent contract announcements and business trends during the
first quarter, we are optimistic that Fiscal 2008 will be an exciting year for
Janel World Trade and its shareholders."
"Our balance sheet continued to strengthen during Fiscal 2007, with
significant improvements noted in liquidity and shareholders' equity. Cash
and cash equivalents totaled $2,469,727 as of September 30, 2007, which
represented an 84% increase when compared with $1,341,952 at the end of the
previous fiscal year. Meanwhile, shareholders' equity increased 19% during
Fiscal 2007 to a record $4,470,919. Our strong financial condition at the end
of September allowed the Company to take on $2.2 million in long-term debt
when we purchased the business assets of Order Logistics in October,"
concluded Jannello.
About Order Logistics, Inc.
Order Logistics, Inc., a wholly-owned subsidiary of Janel World Trade,
Ltd. that is based in Champaign, Illinois, provides solutions that allow
companies to more effectively discover, manage, and execute global supply
chain strategies. The Order Logistics team, technology, strategies, solutions
and dedicated transportation resources allow organizations to access
world-class visibility, information and controls without disrupting existing
plans, processes, partnerships and information systems. By leveraging
technology, business solutions, operational expertise and a centralized
capacity network of transportation providers to take advantage of logistical
opportunities, Order Logistics provides end-to-end solutions to its customers.
This allows each customer to better control its unique distribution network
and utilize existing information systems to their full capacity. For
additional information, visit http://www.orderlogistics.com.
About Janel World Trade, Ltd.
Janel World Trade, Ltd. is a global provider of integrated logistics
services, including domestic and international freight forwarding via
multi-modal carriers, customs brokerage, warehousing and distribution, and
other transportation-related services. With offices throughout the U.S.
(New York, Chicago, Los Angeles, and Atlanta) and the Far East (Hong Kong,
Shanghai, and Shenzhen), the Company provides the comprehensive services
necessary to handle its customers' shipping needs throughout the world. Cargo
can be transported via air, sea or land, and Janel's national network of
locations can manage the shipment and/or receipt of cargo into or out of any
location in the United States. Janel is registered as an Ocean Transportation
Intermediary and licensed as a NVOCC (non-vessel operating common carrier) by
the Federal Maritime Commission.
Janel World Trade, Ltd.'s headquarters is located in Jamaica, New York,
adjacent to the JFK International Airport, and its common stock is listed on
the OTC Bulletin Board under the symbol "JLWT". Additional information on the
Company is available on its website at http://www.janelgroup.net.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "intend," "expect" or similar expressions. These
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not limited to, the
Company's dependence upon conditions in the air, ocean and land-based freight
forwarding industry, the size and resources of many competitors, the need for
the Company to effectively integrate acquired businesses and to successfully
deliver its primary services, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission, including
its most recent Form 8-K, Form 10-Q and Form 10-K filings. By making these
forward-looking statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of this release.
For further information, please contact:
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
via e-mail at info@rjfalkner.com

(Financial Highlights Follow)

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30,
2007 2006

ASSETS
CURRENT ASSETS
Cash and cash equivalents $2,469,727 $1,341,952
Accounts receivable, net of allowance for
doubtful accounts of $42,600 in 2007 and
$28,350 in 2006 5,343,958 4,809,324
Marketable securities 70,880 59,222
Loans receivable -- officers 142,440 144,530
-- related party 111,700 -
-- other 21,994 33,868
Prepaid expenses and sundry current assets 156,802 126,678
TOTAL CURRENT ASSETS 8,317,501 6,515,574

Property and equipment, net 217,528 178,099

Security deposits 49,035 49,418

TOTAL ASSETS $8,584,064 $6,743,091

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $3,822,677 $2,714,086
Accrued expenses and taxes payable 205,555 185,563
Current portion of long-term debt 3,795 7,244
TOTAL CURRENT LIABILITIES 4,032,027 2,906,893

OTHER LIABILITIES:
Long-term debt 2,550 6,337
Deferred compensation 78,568 78,568
TOTAL OTHER LIABILITIES 81,118 84,905

STOCKHOLDERS' EQUITY 4,470,919 3,751,293

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,584,064 $6,743,091

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

YEAR ENDED SEPTEMBER 30,
2007 2006 2005

REVENUES (Note 1) $74,947,442 $77,220,070 $73,484,334

COSTS AND EXPENSES:
Forwarding expenses 66,775,078 69,167,248 65,873,673
Selling, general and
administrative 7,624,360 7,299,039 6,778,569
Stock based compensation - 452,360 -
TOTAL COSTS AND EXPENSES 74,399,438 76,918,647 72,652,242

INCOME BEFORE OTHER ITEMS 548,004 301,423 832,092

OTHER ITEMS:
Costs related to abandoned
business acquisitions - - (50,098)
Interest and dividend income 59,175 28,212 14,494
Interest expense (500) (1,140) (21,619)
TOTAL OTHER ITEMS 58,675 27,072 (57,223)

INCOME BEFORE INCOME TAXES 606,679 328,495 774,869

Income taxes 283,700 271,500 344,850

NET INCOME 322,979 56,995 430,019

Preferred stock dividends 10,833 - -

NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS $312,146 $56,995 $430,019

OTHER COMPREHENSIVE INCOME
NET OF TAX:
Unrealized gain from available
for sale securities $8,897 $1,147 $7,859
Basic earnings per share $.0184 $.0034 $.02553
Fully diluted earnings per share $.0180 $.0033 $.02553
Basic weighted number of shares
outstanding 16,978,142 16,955,329 16,843,000
Fully diluted weighted number of
shares outstanding 17,378,142 17,179,986 16,843,000

JANEL WORLD TRADE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEAR ENDED SEPTEMBER 30,
2007 2006 2005

OPERATING ACTIVITIES:
Net income $322,979 $56,995 $430,019
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 99,415 107,649 96,866
Stock based compensation - 452,360 -
Changes in operating assets and
liabilities:
Accounts receivable (534,634) 524,990 (53,879)
Prepaid expenses and sundry
current assets (30,124) (50,558) (8,596)
Security deposits 383 - 510
Accounts payable and accrued
expenses 1,117,750 (490,156) 71,152
NET CASH PROVIDED BY OPERATING 975,769 601,280 536,072
ACTIVITIES

INVESTING ACTIVITIES:
Acquisition of property and
equipment, net (138,844) (43,478) (227,320)
Purchase of marketable
securities (2,761) (2,333) (1,746)
NET CASH USED IN INVESTING (141,605) (45,811) (229,066)
ACTIVITIES

FINANCING ACTIVITIES:
Decrease (increase) in loans
receivable (97,736) 1,629 7,115
Repayment of long-term debt, net (7,236) (8,384) (8,390)
Proceeds from sale of preferred
stock, net of related expenses
of $35,605 464,395
Repayment of bank borrowings - - (800,000)
Purchase of treasury stock (65,812)
NET CASH PROVIDED BY (USED IN) 293,611 (6,755) (801,275)

FINANCING ACTIVITIES

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 1,127,775 548,714 (494,269)

CASH AND CASH EQUIVALENTS -
BEGINNING OF YEAR 1,341,952 793,238 1,287,507

CASH AND CASH EQUIVALENTS -
END OF YEAR $2,469,727 $1,341,952 $793,238

SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid during the year for:
Interest $ 500 $ 1,140 $ 21,619
Income taxes $ 294,429 $ 332,164 $286,994
Non-cash investing activities:
Unrealized gain on
marketable securities $ 8,897 $ 1,147 $ 1,616

Dividends declared to
preferred shareholders $ 10,833 $ - $ -

SOURCE Janel World Trade, Ltd.

Investor Relations Counsel of RJ Falkner & Company, Inc., 1-800-377-9893,
info@rjfalkner.com, for Janel World Trade, Ltd.