Janel World Trade Ltd. Reports Third Quarter Revenue of $22.5 Million - Up 7% From Third Quarter 2010

JAMAICA, N.Y., Aug. 15, 2011 /PRNewswire/ -- Janel World Trade, Ltd. (OTC BB:  JLWT), a full-service global provider of integrated transportation logistics and vertically integrated supply chain services in the food industry, announced today financial results for the three and nine months ending June 30, 2011.

Third Quarter Results

For the three months ending June 30, 2011, Janel reported revenue of $22,476,995, an increase of $1,472,292 or up 7.0% compared to the three months ended June 30, 2010.

For the three months ending June 30, 2011, the Company reported a net loss available to common shareholders of $(251,374) or $(0.011) per fully diluted share, down from the prior year reported net income available to common shareholders of $166,635, or $0.009 per fully diluted share.  

Fiscal Year to Date Nine Month Results

For the nine months ending June 30, 2011, Janel reported revenue of $71,612,621, an increase of $14,339,031 or up 25.0% compared to the nine months ended June 30, 2010.

For the nine months ending June 30, 2011, the Company reported a net loss available to common shareholders of $(390,575) or $(0.017) per fully diluted share, down from the prior year reported net income available to common shareholders of $215,182, or $0.012 per fully diluted share.

Review and Outlook

"Taking into account that our third quarter includes the start up costs of approximately $142,205 on a pre-tax basis associated with our new Food industry segment, the results were disappointing for the quarter ended June 30, 2011" said James N. Jannello, Executive Vice President and Chief Executive Officer. "We experienced weaker than expected freight volumes from most of our customers when compared to the prior year, and the bulk of the increase in volume that we did see was from our larger customers, but it was at a higher cost of sales than the prior year.  So the net impact of the revenue increase to us did not fall to our bottom line.  During the quarter we launched our new operating division which is focused on vertical integrated supply chain services primarily in the food industry.  As previously announced, the division has already signed a long term agreement with its first customer to handle all supply chain services.  We expect this new division to substantially contribute to our overall gross profit margins in the future."

Jannello continued, "Looking ahead, we expect improvement in our financial results for the last quarter and balance of 2011.  With our new operating division focused on vertical supply chain services, our recent asset acquisition of Ferrara International Logistics and our core logistics business units performing better as we enter the higher shipping season with our customers and our expectation that our customers will report improvement in their respective businesses and the addition of new customers, we expect to report improvement in both our revenues and bottom line."

Jannello concluded, "We are excited about the significant profit potential in our new operating division catering to the food industry.  By being involved from the production to the selling of food products, Janel will be realizing higher gross profit margins compared to just capturing the logistics portion of the distribution channel.  We look forward to returning our core business to profitability and building our food distribution network with the attractive gross profit margins."

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About Janel World Trade, Ltd.

Janel World Trade, Ltd. is a global provider of integrated logistics; including domestic and international freight forwarding via multi-modal carriers, leading-edge, end-to-end, supply-chain technology, customs brokerage, warehousing and distribution, and other transportation-related services; and a provider of vertically integrated supply chain services in the food industry.  With offices throughout the U.S. (New York, Chicago, Los Angeles, and Atlanta) and a network of independent international agents in approximately 52 countries, the Company provides the comprehensive logistics services and technology 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 FMC Licensed Freight Forwarder 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

Forward-Looking Statements

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.

Contact:
Investor Relations
Janel World Trade
(404) 261-1196
IR_Janelgroup.net

SOURCE Janel World Trade, Ltd.