XPO Logistics (XPO) 8-K Express-1 Expedited Solutions Reports Second Quarter 2011 Results

Exhibit 99.1

Express-1 Expedited Solutions Reports Second Quarter 2011 Results

SAINT JOSEPH, Mich. — August 15, 2011 —Express-1 Expedited Solutions, Inc. (NYSE Amex: XPO) (“Express-1” or the “Company”) today announced its financial results for the second quarter of 2011. Total revenue from continuing operations for the second quarter was $44.1 million, a 9.3% increase from the same period in 2010.

Net income from continuing operations for the second quarter was $914,000, or $.03 diluted earnings per share, compared with $1,504,000, or $.05 diluted earnings per share, for the same period in 2010. Gross margin of $7,180,000 declined 1.6 percentage points year-over-year to 16.3% for the quarter, reflecting a choppy environment for the Company’s Express-1 business unit, partially offset by gains in other operating segments.

Mike Welch, chief executive officer, said, “While our revenue growth in the quarter was solid, we experienced margin pressure within our Express-1 unit, including a greater reliance on high-volume, lower-rate customers, and the strategic expansion of our cross-border business. In addition, we drove 43% revenue growth in Bounce Logistics, a business model that generates a lower margin. Non-operational impacts on results included expenses related to the proposed equity investment led by Jacobs Private Equity, and a modification to the revenue recognition policy for our CGL unit that reduced both our top line and our profitability.

“Domestic demand began to strengthen late in the quarter, as reflected in our June gross margin of 16.9%. In addition, we are continuing to see significant growth in our business with Mexico, where Express-1’s expertise in border logistics is a competitive advantage. We anticipate that our overall operating environment will continue to become more favorable through the balance of the year as Japan’s export production recovers from the tsunami and seasonal retail activity develops.”

Welch continued, “Our board has recommended the proposed investment in Express-1 led by Jacobs Private Equity. This is a tremendous opportunity for the company to carve out a major position under the new banner of XPO Logistics in three areas where we already excel: expedited transportation solutions, domestic and international freight forwarding, and premium truckload brokerage. We look forward to the stockholder vote on September 1.”

Conference Call

In light of the pending equity investment, the Company’s next earnings conference call will be held after the reporting of third quarter 2011 results.

About Express-1 Expedited Solutions, Inc.

Founded in 1989, Express-1 is a non-asset-based, third-party logistics services provider that uses a network of relationships with ground, sea and air carriers to find the best transportation solutions for its customers. The Company offers its services through three distinct business units: Express-1, Inc. (expedited transportation solutions), the fifth largest U.S. expedited

freight service provider, according toThe Journal of Commerce; Concert Group Logistics, Inc. (domestic and international freight forwarding); and Bounce Logistics, Inc. (premium truckload brokerage). The Company serves more than 4,000 retail, commercial, manufacturing and industrial customers through six U.S. operations centers and 23 agent locations. www.xpocorporate.com

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others: uncertainties as to the timing of the proposed equity investment; the possibility that competing transaction proposals will be made; the possibility that various closing conditions for the proposed equity investment may not be satisfied or waived; the possibility that the warrants contemplated by the proposed equity investment, if issued, will not be exercised; the potential inability to identify and consummate acquisitions and arrange adequate financing; 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; the general risks associated with our businesses; general economic and business conditions; and other factors. Readers are cautioned not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date hereof. Neither the Company nor any other person undertakes any obligation to update any of these statements in light of new information or future events.

Contact:

Express-1 Expedited Solutions, Inc.
Mike Welch, 269-429-9761
Mike.Welch@xpocorporate.com

Express-1 Expedited Solutions, Inc.
Consolidated Balance Sheets

	(Unaudited)
	June 30, 2011			December 31, 2010
ASSETS
Current assets:
Cash	$	647,000		$	561,000
Accounts receivable, net of allowances of $137,000 and $136,000, respectively		24,533,000			24,272,000
Prepaid expenses		601,000			257,000
Deferred tax asset, current		0			314,000
Income tax receivable		859,000			1,348,000
Other current assets		251,000			813,000
Total current assets		26,891,000			27,565,000
Property and equipment, net of $3,611,000 and $3,290,000 in accumulated depreciation, respectively		2,865,000			2,960,000
Goodwill		16,959,000			16,959,000
Identifiable intangible assets, net of $3,094,000 and $2,827,000 in accumulated amortization, respectively		8,280,000			8,546,000
Loans and advances		120,000			126,000
Other long-term assets		481,000			516,000
Total long-term assets		28,705,000			29,107,000
Total assets	$	55,596,000		$	56,672,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,890,000		$	8,756,000
Accrued salaries and wages		402,000			1,165,000
Accrued expenses, other		2,945,000			2,877,000
Deferred tax liabilities, current		80,000			0
Current maturities of long-term debt and capital leases		1,667,000			1,680,000
Other current liabilities		646,000			773,000
Total current liabilities		14,630,000			15,251,000
Line of credit		0			2,749,000
Long-term debt and capital leases, net of current maturities		1,250,000			2,083,000
Deferred tax liability, long-term		2,338,000			2,032,000
Other long-term liabilities		426,000			544,000
Total long-term liabilities		4,014,000			7,408,000
Stockholders’ equity:
Preferred stock, $.001 par value; 10,000,000 shares; no shares issued or outstanding		0			0
Common stock, $.001 par value; 100,000,000 shares authorized; 33,191,561 and 32,687,522 shares issued, respectively; and 33,011,561 and 32,507,522 shares outstanding, respectively		33,000			33,000
Additional paid-in capital		28,116,000			27,208,000
Treasury stock, at cost, 180,000 shares held		(107,000	)		(107,000	)
Accumulated earnings		8,910,000			6,879,000
Total stockholders’ equity		36,952,000			34,013,000
Total liabilities and stockholders’ equity	$	55,596,000		$	56,672,000

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

	Three Months Ended				Six Months Ended
	June 30, 2011		June 30, 2010		June 30, 2011		June 30, 2010
Revenues
Operating revenue	$	44,094,000	$	40,340,000	$	85,602,000	$	71,982,000
Expenses
Direct expense		36,914,000		33,101,000		71,215,000		59,144,000
Gross margin		7,180,000		7,239,000		14,387,000		12,838,000
Selling, general and administrative expense		5,537,000		4,598,000		10,744,000		8,673,000
Operating income		1,643,000		2,641,000		3,643,000		4,165,000
Other expense		33,000		34,000		62,000		54,000
Interest expense		47,000		88,000		96,000		108,000
Income before income tax provision		1,563,000		2,519,000		3,485,000		4,003,000
Income tax provision		649,000		1,015,000		1,454,000		1,665,000
Net income	$	914,000	$	1,504,000	$	2,031,000	$	2,338,000
Basic earnings per common share
Net income	$	0.03	$	0.05	$	0.06	$	0.07
Diluted earnings per common share
Net income	$	0.03	$	0.05	$	0.06	$	0.07
Weighted average common shares outstanding
Basic weighted average common shares outstanding		33,010,881		32,044,116		32,857,654		32,039,706
Diluted weighted average common shares outstanding		34,333,656		32,645,399		34,211,517		32,602,367

Express-1 Expedited Solutions, Inc.

Summary Financial Table

For the Three Months Ended June 30, 2011 and 2010

(Unaudited)

													Percent of
	Three Months Ended June 30,						Quarter to Quarter Change						Business Unit Revenue
	2011			2010			In Dollars			In Percentage			2011			2010
Revenues
Express-1	$	23,060,000		$	20,557,000		$	2,503,000			12.2	%		52.2	%		51.0	%
CGL		15,722,000			16,074,000			(352,000	)		-2.2	%		35.7	%		39.8	%
Bounce		6,687,000			4,675,000			2,012,000			43.0	%		15.2	%		11.6	%
Intercompany eliminations		(1,375,000	)		(966,000	)		(409,000	)		42.3	%		-3.1	%		-2.4	%
Total revenues		44,094,000			40,340,000			3,754,000			9.3	%		100.0	%		100.0	%
Direct expenses
Express-1		18,573,000			15,720,000			2,853,000			18.1	%		80.5	%		76.5	%
CGL		14,051,000			14,426,000			(375,000	)		-2.6	%		89.4	%		89.7	%
Bounce		5,665,000			3,921,000			1,744,000			44.5	%		84.7	%		83.9	%
Intercompany eliminations		(1,375,000	)		(966,000	)		(409,000	)		42.3	%		100.0	%		100.0	%
Total direct expenses		36,914,000			33,101,000			3,813,000			11.5	%		83.7	%		82.1	%
Gross margin
Express-1		4,487,000			4,837,000			(350,000	)		-7.2	%		19.5	%		23.5	%
CGL		1,671,000			1,648,000			23,000			1.4	%		10.6	%		10.3	%
Bounce		1,022,000			754,000			268,000			35.5	%		15.3	%		16.1	%
Total gross margin		7,180,000			7,239,000			(59,000	)		-0.8	%		16.3	%		17.9	%
Selling, general & administrative
Express-1		2,473,000			2,355,000			118,000			5.0	%		10.7	%		11.5	%
CGL		1,272,000			1,093,000			179,000			16.4	%		8.1	%		6.8	%
Bounce		850,000			613,000			237,000			38.7	%		12.7	%		13.1	%
Corporate		942,000			537,000			405,000			75.4	%		2.1	%		1.3	%
Total selling, general & administrative		5,537,000			4,598,000			939,000			20.4	%		12.6	%		11.4	%
Operating income
Express-1		2,014,000			2,482,000			(468,000	)		-18.9	%		8.7	%		12.1	%
CGL		399,000			555,000			(156,000	)		-28.1	%		2.5	%		3.5	%
Bounce		172,000			141,000			31,000			22.0	%		2.6	%		3.0	%
Corporate		(942,000	)		(537,000	)		(405,000	)		-75.4	%		-2.1	%		-1.3	%
Operating income		1,643,000			2,641,000			(998,000	)		-37.8	%		3.7	%		6.5	%
Interest expense		47,000			88,000			(41,000	)		-46.6	%		0.1	%		0.2	%
Other expense		33,000			34,000			(1,000	)		-2.9	%		0.1	%		0.1	%
Income before tax		1,563,000			2,519,000			(956,000	)		-38.0	%		3.5	%		6.2	%
Tax provision		649,000			1,015,000			(366,000	)		-36.1	%		1.5	%		2.5	%
Net income	$	914,000		$	1,504,000		$	(590,000	)		-39.2	%		2.0	%		3.7	%

Express-1 Expedited Solutions, Inc.

Summary Financial Table

For the Six Months Ended June 30, 2011 and 2010

(Unaudited)

													Percent of
	Six Months Ended June 30,						Year to Year Change						Business Unit Revenue
	2011			2010			In Dollars			In Percentage			2011			2010
Revenues
Express-1	$	43,802,000		$	36,769,000		$	7,033,000			19.1	%		51.1	%		51.1	%
CGL		31,461,000			29,012,000			2,449,000			8.4	%		36.8	%		40.3	%
Bounce		12,670,000			7,798,000			4,872,000			62.5	%		14.8	%		10.8	%
Intercompany eliminations		(2,331,000	)		(1,597,000	)		(734,000	)		46.0	%		-2.7	%		-2.2	%
Total revenues		85,602,000			71,982,000			13,620,000			18.9	%		100.0	%		100.0	%
Direct expenses
Express-1		34,762,000			28,262,000			6,500,000			23.0	%		79.4	%		76.9	%
CGL		28,064,000			25,954,000			2,110,000			8.1	%		89.2	%		89.5	%
Bounce		10,720,000			6,525,000			4,195,000			64.3	%		84.6	%		83.7	%
Intercompany eliminations		(2,331,000	)		(1,597,000	)		(734,000	)		46.0	%		100.0	%		100.0	%
Total Direct expenses		71,215,000			59,144,000			12,071,000			20.4	%		83.2	%		82.2	%
Gross margin
Express-1		9,040,000			8,507,000			533,000			6.3	%		20.6	%		23.1	%
CGL		3,397,000			3,058,000			339,000			11.1	%		10.8	%		10.5	%
Bounce		1,950,000			1,273,000			677,000			53.2	%		15.4	%		16.3	%
Total gross margin		14,387,000			12,838,000			1,549,000			12.1	%		16.8	%		17.8	%
Selling, general & administrative
Express-1		5,125,000			4,376,000			749,000			17.1	%		11.7	%		11.9	%
CGL		2,526,000			2,247,000			279,000			12.4	%		8.0	%		7.7	%
Bounce		1,640,000			1,035,000			605,000			58.5	%		12.9	%		13.3	%
Corporate		1,453,000			1,015,000			438,000			43.2	%		1.7	%		1.4	%
Total selling, general & administrative		10,744,000			8,673,000			2,071,000			23.9	%		12.6	%		12.0	%
Operating income
Express-1		3,915,000			4,131,000			(216,000	)		-5.2	%		8.9	%		11.2	%
CGL		871,000			811,000			60,000			7.4	%		2.8	%		2.8	%
Bounce		310,000			238,000			72,000			30.3	%		2.4	%		3.1	%
Corporate		(1,453,000	)		(1,015,000	)		(438,000	)		-43.2	%		-1.7	%		-1.4	%
Operating income		3,643,000			4,165,000			(522,000	)		-12.5	%		4.2	%		5.8	%
Interest expense		96,000			108,000			(12,000	)		-11.1	%		0.1	%		0.2	%
Other expense		62,000			54,000			8,000			14.8	%		0.1	%		0.1	%
Income before tax		3,485,000			4,003,000			(518,000	)		-12.9	%		4.0	%		5.5	%
Tax provision		1,454,000			1,665,000			(211,000	)		-12.7	%		1.7	%		2.3	%
Net income	$	2,031,000		$	2,338,000		$	(307,000	)		-13.1	%		2.3	%		3.2	%