Unique Logistics International Announces First Quarter Fiscal 2022 Financial Results

(Quarter ending August 31, 2021)

News provided by

Unique Logistics International, Inc.

Oct 21, 2021, 07:30 ET

NEW YORK, Oct. 21, 2021 /PRNewswire/ -- Unique Logistics International, Inc. ("UNQL or the Company") (OTC Markets: UNQL) a global logistics and freight forwarding company, today announced the filing of its Current Report on Form 10-Q (the "Current Report") reporting results for the first quarter of Fiscal 2022.

Q1 Key Financial Results
($ in millions)
		For the Three Months Ended		For the Three Months Ended
		August 31, 2021		August 31, 2020		$ change	% change

GAAP
Total revenues	$	189.8	$	57.4	$	132.4	231%
Income (loss) from operations		3.2		(0.6)		3.8	N/A
Net income (loss)	$	2.0	$	(0.6)	$	2.6	N/A

Adjusted EBITDA	$	3.4	$	0.1	$	3.3	3300%

		August 31, 2021		May 31, 2021

Total assets	$	136.0	$	69.4	$	66.6	96%
Total Stockholders' Equity	$	8.8	$	6.6	$	2.2	33%

"We start the new Fiscal Year with solid revenue growth and on track to deliver UNQL's stated goals of organic growth combined with strategic acquisitions. Procurement strategies in a challenging logistics market have seen our market share increase and the 231% growth in revenue, based on organic growth, comprises both increased business with existing customers as well as the addition of significant new customers through our planned sales and marketing activities. This puts us in a strong position to execute on our stated acquisition strategy in the coming months with pinpoint precision," said Sunandan Ray, Chief Executive Officer.

Key Business Highlights:

Revenue Environment:

Management anticipates strong demand for international logistics services for the remainder of fiscal 2022 driven by the continuing recovery of the US economy.
The reported revenue for the three months ended August 31,2021 of approximately $189.8 million represents growth of 231% compared with the corresponding prior year period. The revenue growth reflects the continuing success of the Company in achieving organic growth and increased market share by acquiring new customers in a challenging logistics market.

Cost Performance:

The Company continues to execute its procurement strategies with airlines and shipping lines in order to secure additional capacities, including chartered air cargo capacity, to cater for the expected continuing growth in our business. Increasing domestic warehousing and distribution capabilities to support our international business is an integral part of the strategy as the Company prepares for the further growth that we will actively pursue in the months ahead.
The Company is constantly seeking cost saving opportunities throughout all levels of its business. Total cost and operating expenses for the period was contained at a level where the Company was able to deliver $3.2 million in Operating Income, versus a loss of $0.6 million in the comparative prior year period.

Non-GAAP Measurement of Business Performance:

This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States ("US GAAP"), including Adjusted EBITDA. Adjusted EBITDA is defined by the Company, for the periods presented, to be earnings before interest, factoring fees, taxes, depreciation and amortization, accretion of debt discounts, loss on debt extinguishments, stock-based compensation, and certain other items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of income from continuing operations calculated in accordance with US GAAP to Adjusted EBITDA. Adjusted EBITDA is not a measurement of financial performance under US GAAP and may not be comparable to other similarly titled measures of other companies. The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income as an indicator of operating performance. Management also believes that Adjusted EBITDA is an industry-wide financial measure that is useful both to management and investors when evaluating the Company's performance and comparing our performance with the performance of our competitors. Management also uses adjusted EBITDA for planning purposes, as well as to evaluate the Company's performance because it believes that adjusted EBITDA more accurately reflects the Company's results, as it excludes certain items, such as stock-based compensation charges, that management believes are not indicative of the Company's operating performance. The Company believes that Adjusted EBITDA is a performance measure and not a liquidity measure. Adjusted EBITDA should not be considered as an alternative to operating or net income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with US GAAP, or as a measure of liquidity. In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and Adjusted EBITDA is defined by the Company for the periods presented to be earnings before interest, factoring fees, taxes, depreciation and amortization, accretion of debt discounts, loss on debt extinguishments, stock-based compensation, and certain other items. The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net loss as an indicator of operating performance. Management also believes that Adjusted EBITDA is an industry-wide financial measure that is useful both to management and investors when evaluating the Company's performance and comparing our performance with the performance of our competitors. Management also uses adjusted EBITDA for planning purposes, as well as to evaluate the Company's performance because it believes that adjusted EBITDA more accurately reflects the Company's results, as it excludes certain items, such as stock-based compensation charges, that management believes are not indicative of the Company's operating performance.

The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the US GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with US GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with US GAAP income taxes that can affect cash flows.

About Unique Logistics International, Inc.

Unique Logistics International, Inc. (OTC: UNQL) through its wholly owned operating subsidiaries, is a global logistics and freight forwarding company providing a range of international logistics services that enable its customers to outsource to the Company sections of their supply chain process. The services provided are seamlessly managed by its network of trained employees and integrated information systems. We enable our customers to share data regarding their international vendors and purchase orders with us, execute the flow of goods and information under their operating instructions, provide visibility to the flow of goods from factory to distribution center or store and when required, update their inventory records.

Forward-Looking Statements

This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by hose sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. All statements other than statements of historical facts included in this news release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our services; the acceptance of our services by customers; our continued ability to pay operating costs and ability to meet demand for our services; the amount and nature of competition from other logistics service providers; the effects of changes in the logistics market; our ability to comply with applicable regulations; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	August 31, 2021		May 31, 2021
		(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	296,407	$	252,615
Accounts receivable – trade, net		70,183,018		20,369,747
Contract assets		48,464,151		23,423,314
Factoring reserve		-		7,593,665
Other prepaid expenses and current assets		632,210		761,458
Total current assets		119,575,786		52,400,799

Property and equipment – net		199,280		192,092

Other long-term assets:
Goodwill		4,463,129		4,463,129
Intangible assets – net		7,868,065		8,044,853
Operating lease right-of-use assets – net		3,435,326		3,797,527
Deposits and other assets		475,362		555,362
Other long-term assets		16,241,882		16,860,871
Total assets	$	136,016,948	$	69,453,762

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable – trade	$	45,030,631	$	38,992,846
Accrued expenses and other current liabilities		6,738,937		2,383,915
Accrued freight		25,136,944		10,403,430
Revolving credit facility		39,543,083		-
Current portion of notes payable – net of discount		2,963,874		2,285,367
Current portion of long-term debt due to related parties		392,975		397,975
Current portion of operating lease liability		1,481,602		1,466,409
Total current liabilities		121,288,046		55,929,942

Other long-term liabilities		494,670		565,338
Long-term-debt due to related parties, net of current portion		688,168		715,948
Notes payable, net of current portion – net of discount		2,689,885		3,193,306
Operating lease liability, net of current portion		2,064,121		2,431,144
Total long-term liabilities		5,936,844		6,905,736

Total liabilities		127,224,890		62,835,678

Commitments and contingencies (Note 9)		-		-

Stockholders' Equity:
Preferred Stock, $.001 par value: 5,000,000 shares authorized
Series A Convertible Preferred stock, $0.001 par value; 130,000 issued and outstanding as of August 31, 2021 and May 31, 2021		130		130
Series B Convertible Preferred stock, $0.001 par value; 820,800 and 840,000 shares issued and outstanding as of August 31, 2021 and May 31, 2021, respectively		821		840
Common stock, $0.001 par value; 800,000,000 shares authorized; 603,246,759 and 393,742,663 shares issued and outstanding as of August 31, 2021 and May 31, 2021, respectively		603,247		393,743
Additional paid-in capital		4,847,457		4,906,384
Retained earnings		3,340,403		1,316,987
Total Stockholders' Equity		8,792,058		6,618,084
Total Liabilities and Stockholders' Equity	$	136,016,948	$	69,453,762

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

	For the Three Months Ended		For the Three Months Ended
	August 31, 2021		August 31, 2020
Revenues:
Airfreight services	$	52,162,641		$	17,498,884
Ocean freight and ocean services		123,300,758			30,652,866
Contract logistics		722,664			688,710
Customs brokerage and other services		13,585,797			8,574,807
Total revenues		189,771,860			57,415,267

Costs and operating expenses:
Airfreight services		51,625,775			16,736,941
Ocean freight and ocean services		116,587,742			27,866,233
Contract logistics		390,400			264,068
Customs brokerage and other services		12,925,092			8,144,882
Salaries and related costs		2,751,380			2,100,889
Professional fees		293,867			418,616
Rent and occupancy		480,209			485,544
Selling and promotion		1,033,128			1,062,553
Depreciation and amortization		193,799			190,819
Fees on factoring agreements		27,000			474,060
Other		268,120			222,700
Total costs and operating expenses		186,576,512			57,967,305

Income (loss) from operations		3,195,348			(552,038

Other income (expenses)
Interest expense, net		(1,290,279)			(32,439)
Amortization of debt discount		(385,480)			-
Gain on extinguishment of convertible notes payable		780,050			-
Gain on forgiveness of promissory note		358,236)			-
Total other expenses		(537,473)			(32,439)

Net income (loss) before income taxes		2,657,875			(584,477

Income tax expense		634,459			16,694

Net income (loss)	$	2,023,416		$	(601,171)
Net income (loss)	$	1,725,497		$	(408,510)

UNIQUE LOGISTICS INTERNATIONAL, INC.
ADJUSTED EBITDA
	For the Three Months Ended		For the Three Months Ended
	August 31,		August 31,
	2021		2020
Net income (loss)	$	2,023,416	$	(601,171)

Add Back:
Income tax expense		634,459		16,694
Depreciation and amortization		193,797		190,819
Stock-based compensation		-		-
Gain on forgiveness of promissory notes		(358,236)		-
Gain on extinguishment of convertible notes		(780,050)		-
Factoring fees		27,000		474,060
Interest expense (including accretion of debt discount)		1,675,759		32,439

Adjusted EBITDA	$	3,416,145	$	112,841