Dynamex 8-K Dynamex Announces Second Quarter Fiscal Year 2008 Results

Exhibit 99.1

For immediate release

For further information contact:
Ray Schmitz (214) 560-9308
ray.schmitz@dynamex.com

DYNAMEX ANNOUNCES SECOND QUARTER
FISCAL YEAR 2008 RESULTS

Second Quarter Highlights:

• Sales increase 10.9% to $112 million.

• Gross margin improvement fuels 25% increase in operating income.

• Five new franchise locations signed.

• Company affirms FY 2008 outlook of $1.45 to $1.55 earnings per share.

March 5, 2008 — Dallas, Texas— Dynamex Inc. (NASDAQ: DDMX), the leading provider of same-day delivery and logistics services in the United States and Canada, today announced net income of $3.4 million or $0.33 fully diluted net income per share for the FY 2008 second quarter compared to $3.7 million or $0.35 per fully diluted share in the prior year. The prior year quarter includes a one-time, after tax benefit of $1.0 million from interest and foreign exchange gains from the resolution of prior year cross-border transfer pricing issues between Canada and the U.S. Excluding this one-time benefit, last year’s net income would have been $2.8 million or $0.26 per fully diluted share.

Sales increased 10.9% to $112 million this quarter compared to the prior year. The exchange rate between the Canadian dollar and the U.S. dollar was approximately 16% higher this quarter than the same quarter last year. The Company estimates that higher fuel surcharges account for approximately 2.7% of the increase in sales. The core growth rate, the rate excluding the impact of the stronger Canadian dollar and higher fuel surcharges, was approximately 2.2%. The core growth rate was negatively impacted by one and a half less business days this year due to the Christmas and New Year’s holidays falling on Tuesday. On a sales per day basis, the core growth rate was 4.9%. The prior year quarter includes approximately $2.0 million in sales for services provided on an interim basis to one customer in Canada. Excluding those sales, the core growth rate per day was approximately 7.0%.

Selling, general and administrative (“SG&A”) expenses increased 11.7% to $23.9 million compared to the same quarter last year. As a percentage of sales, SG & A expenses were 21.3% in the current year compared to 21.2% in the prior year quarter. The current year percentage includes the impact of one and one half less business days than the prior year. Normal wage increases as well as additional personnel required to manage and operate new business started

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Dynamex — Second Quarter Fiscal Year 2008
March 5, 2008
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over the last year contributed to the increase in SG&A expenses. As the core growth rate accelerates above the current level, management expects to realize additional leverage from its relatively fixed cost infrastructure.

Operating income increased 25% compared to the prior year quarter on a 10.9% increase in sales and a reduction in cost of sales from 74.1% last year to 73.3% in the current year. Purchased transportation costs, the largest component of cost of sales represented 65.7% of sales in the current year quarter, compared to 65.5% in the prior year reflecting the change in business mix as on demand sales declined slightly as a percentage of total sales. Other direct cost of sales declined from 8.6% last year to 7.6% in the current year quarter.

Income tax expense was $2.0 million, 36.6% of income before taxes in the current year quarter compared to $2.0 million, 34.8% of income before taxes in the prior year. The current year benefited from the reduction in the Canadian tax rate. The prior year rate was impacted by the settlement of cross border transfer pricing issues. We expect the effective tax rate to be in the 37% to 38% range for the remainder of the 2008 fiscal year.

Second Quarter Highlights
“The second quarter was another positive period for our business,” said Dynamex Chairman and CEO, Rick McClelland. “Top line growth was 10.9% while earnings per share grew 30% excluding the year ago one-time benefit. We expect year-over-year sales growth for the remainder of the 2008 fiscal year to be in the 10% to 12% range.

“The higher costs associated with the unprecedented new business activity and delivery model changes we experienced in fiscal 2007 have also normalized and are now providing the bottom-line benefits we expected,” McClelland continued. “During the quarter, we continued to expand our franchise program adding five quality locations in the United States. New business activity remains strong and we continue to focus on expanding relationships with our existing customer base. The financial benefits of our outsourced distribution model versus running an in-house distribution fleet becomes more compelling to potential customers given the current economic conditions. And as the economy has softened, we have also seen an increase in the number of opportunities to acquire customer lists.

“Our outlook remains positive for the remainder of the year,” concluded McClelland. “Our balance sheet is extremely strong with zero long-term debt. Margins remain within our targeted range and both our top and bottom lines continue to grow. We continue to believe we have a significant opportunity for continued growth and profitability that will result in solid returns for our shareholders.”

Long-Term Debt
Long-term debt was zero at January 31, 2008. Cash flow generated from operations was sufficient to fund operations and capital expenditures.

Margins
The gross margin was 26.7% of sales in the current quarter, in-line with our stated target range for FY 2008 of 26.5% to 27.0%, and higher than the 25.9% in the same quarter last year.

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March 5, 2008
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Management expects the gross margin percentage for each of the remaining quarters of this fiscal year will be above the comparable quarters in the prior year.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $6.1 million, 5.5% of sales in the current quarter compared to $6.4 million or 6.4% of sales in the same quarter last year (see Reconciliation of Non-GAAP Financial Measures on page 7 of this release). The prior year included $1.4 million of pre-tax gains from the settlement of prior year cross border transfer pricing issues. Excluding these one-time benefits, EBITDA was $5.1 million or 5.0% of sales.

Cash Flow from Operations
Net cash provided by operating activities was $1.0 million compared to $6.2 million in the prior year. The reduction in cash provided by operating activities this year is principally attributable to higher cash taxes, the increase in working capital to finance the increase in accounts receivable and the payment in August 2007 for stock repurchase transactions consummated in FY 2007 while the prior year included the benefit of lessor financed leasehold improvements and higher rent abatements. The increase in accounts receivable, although higher than the FY 2007 yearend balance after considering the growth in sales and changes in the Canadian dollar, is in line with the increase for the same period last year. We believe this is temporary and that days sales outstanding at the end of our next quarter will be more in-line with the prior year.

Depreciation and Amortization
Depreciation and amortization (“D&A”) increased to $702,000 in this quarter from $596,000 in the second quarter last year due principally to the higher level of capital additions in FY 2007, due, in large part, to lessor-financed leasehold improvements last year related to the lease for the corporate headquarters in Dallas. As a percent of sales, D&A was 0.6%, unchanged from the prior year period.

Interest Expense
Interest expense for the three months ended October 31, 2007 was $54,000, $62,000 below the prior year period. The current year had a lower average level of outstanding debt than the prior year.

Outlook
The following outlook for FY 2008 is provided in connection with Regulation FD and to ensure that all investors continue to have equal access to information.The following outlook contains forward-looking statements that involve assumptions regarding Company operations and future prospects. Caution should be taken that the actual results could differ materially from those stated or implied in this and other Company communications.

The Company expects year-over-year sales growth of between 10% and 12% for FY 2008.

The Company continues to expect FY 2008 net income to range from $1.45 to $1.55 per fully diluted share.

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March 5, 2008
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Investor Call
The Company will host an investor conference call on Thursday, March 6, 2008 at 10:00 a.m. Central Standard Time. All interested parties may access the call Toll-Free at 1-877-407-9039. A participant will need the following information to access the conference call: Company name — “Dynamex”. A telephone replay of the conference call will be available through March 13, 2008 at, Toll-Free, 1-877-660-6853, enter Account Number 3055 and Conference ID Number 273171.

The conference call will also be available on the Internet through Thomson’s website, located at www.earnings.com, and the link is also available through the Company’s website at www.dynamex.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call for 30 days.

* * *

Dynamex is the leading provider of same-day delivery and logistics services in the United States and Canada. Additional press releases and investor relations information as well as the Company’s Internet e-commerce services package, dxNow™, is available at www.dynamex.com.

This release contains forward-looking statements that involve assumptions regarding Company operations and future prospects. Although the Company believes its expectations are based on reasonable assumptions, such statements are subject to risk and uncertainty, including, among other things, the effect of changing economic conditions, acquisition strategy, competition, foreign exchange, the ability to meet the terms of current borrowing arrangements, and risks associated with the local delivery industry. These and other risks are mentioned from time to time in the Company’s filings with the Securities and Exchange Commission. In light of such risks and uncertainties, the Company’s actual results could differ materially from such forward-looking statements. The Company does not undertake any obligation to publicly release any revision to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.

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March 5, 2008
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DYNAMEX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except per share data)

	January 31,		July 31,
	2008		2007
	(Unaudited)
ASSETS
CURRENT
Cash and cash equivalents	$	8,572	$	8,857
Accounts receivable (net of allowance for doubtful accounts of $849 and $866, respectively)		50,746		42,649
Income taxes receivable		1,681		1,092
Prepaid and other current assets		2,182		3,559
Deferred income taxes		3,425		3,136
Total current assets		66,606		59,293
Property and equipment — net		8,730		8,495
Goodwill		48,357		47,613
Intangibles — net		902		326
Deferred income taxes		535		1,398
Other assets		4,500		3,915
Total assets	$	129,630	$	121,040
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable trade	$	11,454	$	15,426
Accrued liabilities		23,938		21,679
Total current liabilities		35,392		37,105
Long-term debt		—		—
Other long-term liabilities		2,421		2,526
Total liabilities		37,813		39,631
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock; $0.01 par value, 10,000 shares authorized; none outstanding		—		—
Common stock; $0.01 par value, 50,000 shares authorized; 10,239 and 10,145 outstanding, respectively		102		101
Additional paid-in capital		47,318		45,671
Retained earnings		38,535		31,122
Unrealized foreign currency translation adjustment		5,862		4,515
Total stockholders’ equity		91,817		81,409
Total liabilities and stockholders’ equity	$	129,630	$	121,040

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March 5, 2008
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DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in thousands except per share data)
(Unaudited)

	Three months ended						Six months ended
	January 31,						January 31,
	2008			2007			2008			2007
Sales	$	111,957		$	100,988		$	223,709		$	201,603
Cost of sales:
Purchased transportation		73,596			66,138			147,517			132,005
Other direct costs		8,528			8,675			16,654			16,495
		82,124			74,813			164,171			148,500
Gross profit		29,833			26,175			59,538			53,103
Selling, general and administrative
Expenses:
Salaries and employee benefits		16,967			14,583			33,041			28,665
Other		6,929			6,810			13,515			13,257
		23,896			21,393			46,556			41,922
Depreciation and amortization		702			596			1,373			1,188
(Gain) loss on disposal of property and equipment		(7	)		(2	)		(16	)		6
Operating income		5,242			4,188			11,625			9,987
Interest expense		54			116			132			228
Other income, net		(204	)		(1,640	)		(304	)		(1,732	)
Income before taxes		5,392			5,712			11,797			11,491
Income tax expense		1,973			1,990			4,384			4,121
Net income	$	3,419		$	3,722		$	7,413		$	7,370
Basic earnings per common share:	$	0.33		$	0.35		$	0.73		$	0.70
Diluted earnings per common share:	$	0.33		$	0.35		$	0.72		$	0.68
Weighted average shares:
Common shares outstanding		10,232			10,602			10,203			10,601
Adjusted common shares — assuming exercise of stock options		10,342			10,783			10,309			10,767

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DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(in thousands except percentage data)
(Unaudited) Continued

								Three months ended						Six months ended
								January 31,						January 31,
							2008			2007			2008			2007
Selected items as a percentage of sales:
Sales								100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales:
Purchased transportation								65.7	%		65.5	%		65.9	%		65.5	%
Other direct costs								7.6	%		8.6	%		7.5	%		8.2	%
								73.3	%		74.1	%		73.4	%		73.7	%
Gross profit								26.7	%		25.9	%		26.6	%		26.3	%
Selling, general and administrative expenses:
Salaries and employee benefits								15.1	%		14.5	%		14.8	%		14.2	%
Other								6.2	%		6.7	%		6.0	%		6.6	%
								21.3	%		21.2	%		20.8	%		20.8	%
Depreciation and amortization								0.6	%		0.6	%		0.6	%		0.6	%
(Gain) loss on disposal of property and equipment								0.0	%		0.0	%		0.0	%		0.0	%
Operating income								4.8	%		4.1	%		5.2	%		4.9	%
EBITDA Margin								5.5	%		6.4	%		5.9	%		6.4	%
EBITDA							$	6,148		$	6,424		$	13,302		$	12,907
Reconciliation of Non-GAAP Financial Measures:
Net income							$	3,419		$	3,722		$	7,413		$	7,370
Income tax expense								1,973			1,990			4,384			4,121
Interest expense								54			116			132			228
Depreciation and amortization								702			596			1,373			1,188
EBITDA							$	6,148		$	6,424		$	13,302		$	12,907
Sales by Service Type
On Demand	$	36,840	32.9	%	$	32,810		32.5	%	$	74,100			33.1	%	$	69,335		34.4	%
Scheduled/Distribution		36,570	32.7	%		36,203		35.8	%		73,063			32.7	%		67,860		33.7	%
Outsourcing		38,547	34.4	%		31,975		31.7	%		76,546			34.2	%		64,408		31.9	%
Total Sales	$	111,957	100.0	%	$	100,988		100.0	%	$	223,709			100.0	%	$	201,603		100.0	%
Sales by Country
United States	$	68,157	60.9	%	$	63,709		63.1	%	$	137,640			61.5	%	$	127,671		63.3	%
Canada		43,800	39.1	%		37,279		36.9	%		86,069			38.5	%		73,932		36.7	%
Total Sales	$	111,957	100.0	%	$	100,988		100.0	%	$	223,709			100.0	%	$	201,603		100.0	%

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DYNAMEX INC.
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(in thousands)

	Six months ended
	January 31,
	2008			2007
OPERATING ACTIVITIES
Net income	$	7,413		$	7,370
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,373			1,188
Amortization of deferred bank financing fees		10			14
Provision for losses on accounts receivable		217			322
Stock option compensation		607			526
Deferred income taxes		574			1,402
Lessor financed leasehold improvements		—			1,989
Non-cash rent expense		23			532
(Gain) Loss on disposal of property and equipment		(16	)		6
Changes in current operating assets and liabilities:
Accounts receivable		(8,314	)		(7,974	)
Prepaids and other assets		787			790
Accounts payable and accrued liabilities		(1,713	)		(12	)
Net cash provided by operating activities		961			6,153
INVESTING ACTIVITIES
Purchase of property and equipment		(1,470	)		(2,732	)
Acquisition of customer lists		(657	)		—
Purchase of deferred compensation investments		(261	)		(230	)
Net cash used in investing activities		(2,388	)		(2,962	)
FINANCING ACTIVITIES
Principal payments on long-term debt		—			(2	)
Net payments under line of credit		—			(900	)
Net proceeds from sale of common stock		893			159
Tax benefit realized on exercise of stock options		148			83
Purchase and retirement of treasury stock		—			(1,094	)
Other assets and deferred offering costs		(340	)		(1,132	)
Net cash used in financing activities		701			(2,886	)
EFFECT OF EXCHANGE RATES ON CASH FLOW INFORMATION		441			(1,423	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(285	)		(1,118	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		8,857			6,058
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	8,572		$	4,940
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	$	86		$	206
Cash paid for taxes	$	4,268		$	2,100

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