Exhibit 99.1
[CD&L Logo]
Contacts: Russell Reardon, CFO
CD&L, Inc.
(201) 487-7740
FOR IMMEDIATE RELEASE
CD & L Reports A Near Five Percent Revenue Gain In Quarter
2003 First Quarter Net Income Increased by $600,000 vs. First Quarter 2002
SOUTH HACKENSACK, N.J., May 22, 2003 - CD&L, Inc. (Amex:CDV), one of the
nation's leading providers of customized, time-critical delivery services
announced today its First Quarter 2003 results along with the filing of the
Company's Quarterly Report on Form 10-Q.
Revenue for the three months ended March 31, 2003 increased by $1.8
million, or 4.7%, to $40.3 million from $38.5 million for the three months ended
March 31, 2002. Net income for the three months ended March 31, 2003 increased
by $600,000 to $606,000, or $.08 per basic share, from $6,000 for the three
months ended March 31, 2002.
The improvement in net income was primarily due to an approximately
$1.1 million gain on the effective exchange of a note payable for a note
receivable that had been written off in 2001, a reduction in interest expense
and depreciation of about $185,000 and a reduction of the Company's overhead of
$426,000. Severe weather in the Mid-Atlantic and Northeast regions, as well as
higher than anticipated start-up costs for the Company's new revenue resulted in
a net $664,000 increase in cost of revenue after taking into effect the above
mentioned revenue increase. Additionally, the Company recorded an increase in
its tax provisions of $400,000 over last year.
CD&L, Inc., based in South Hackensack, NJ operates 57 facilities in 21
states, with annual revenues of approximately $160,000,000. The Company has over
1,400 employees and utilizes approximately 2,200 independent contractors to
provide time-sensitive delivery services to thousands of customers across the
country.
# # #
CD&L, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
March 31, December 31,
2003 2002
----------------- ------------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,741 $1,452
Accounts receivable, net 16,001 14,909
Prepaid expenses and other current assets 2,262 2,119
----------------- ------------------
Total current assets 20,004 18,480
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net 1,069 1,233
GOODWILL, net 11,531 11,531
INTANGIBLE ASSETS AND DEFERRED FINANCING COSTS, net
605 661
NOTE RECEIVABLE FROM STOCKHOLDER, net - -
OTHER ASSETS 2,038 1,916
----------------- ------------------
Total assets $35,247 $33,821
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $1,575 $ -
Current maturities of long-term debt 2,968 3,442
Accounts payable, accrued liabilities and bank overdrafts
12,998 12,169
----------------- ------------------
Total current liabilities 17,541 15,611
LONG-TERM DEBT 12,939 14,041
OTHER LONG-TERM LIABILITIES 261 269
----------------- ------------------
Total liabilities 30,741 29,921
----------------- ------------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value; 2,000,000 shares
authorized; no shares issued and outstanding - -
Common stock, $.001 par value; 30,000,000 shares
authorized; 7,688,027 shares issued at March 31, 2003 and
December 31, 2002 8 8
Additional paid-in capital 12,883 12,883
Treasury stock, 29,367 shares at cost (162) (162)
Accumulated deficit (8,223) (8,829)
----------------- ------------------
Total stockholders' equity 4,506 3,900
----------------- ------------------
Total liabilities and stockholders' equity $35,247 $33,821
================= ==================
80 Wesley Street, South Hackensack, NJ 07606
Phone: (201) 487-7740 Fax: (201) 489-6974
CD&L, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
March 31,
-----------------------------------
2003 2002
---------------- ---------------
Revenue $40,307 $38,549
Cost of revenue 33,043 30,621
---------------- ---------------
Gross profit 7,264 7,928
---------------- ---------------
Costs and Expenses:
Selling, general, and administrative expenses 6,528 6,954
Depreciation and amortization 217 299
Other (income), net (1,101) (50)
Interest expense 610 715
---------------- ---------------
Total Costs and Expenses 6,254 7,918
---------------- ---------------
Income before provision for income taxes 1,010 10
Provision for income taxes 404 4
---------------- ---------------
Net income $606 $6
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Net income per share:
Basic $.08 $.00
================ ===============
Diluted $.07 $.00
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Basic weighted average common shares outstanding 7,659 7,659
================ ===============
Diluted weighted average common shares outstanding 8,170 8,167
================ ===============
80 Wesley Street, South Hackensack, NJ 07606
Phone: (201) 487-7740 Fax: (201) 489-6974