Exhibit 99.1
[CD&L LOGO]
Contacts: Russell Reardon, CFO
CD&L, Inc.
(201) 487-7740
FOR IMMEDIATE RELEASE
CD&L Reports Net Income Improvement For Full Year 2003
* 2003 Full Year Net Income Six Times That of 2002*
SOUTH HACKENSACK, N.J., April 15, 2004 - CD&L, Inc. (Amex:CDV), one of the
nation's leading providers of customized, time-critical delivery services
announced 2003 full year net income of $1,682,833, or $.22 per basic share,
compared to a 2002 full year net income of $285,103, or $.04 per basic share.
The Company's full year revenue for 2003 reflected an approximate 5.6% increase
over the 2002 fiscal year resulting in a reported revenue of $166,083,264, or
$8,850,981 higher than the twelve months ending December 31, 2002.
The Company's Chairman and CEO, Al Van Ness, said, "The CD&L team has
worked extremely hard to improve the Company's operating performance, to
identify and win new customers, to rationalize the Company's cost model and to
support leading edge delivery technology services." Mr. Van Ness went on to say,
"Our growth strategies, supported by the launch of a business development
program which focuses on applying the Company's delivery logistical solutions in
targeted markets is gathering momentum at the local, regional, and national
level." Mr. Van Ness added, "We, at CD&L, remain committed to provide our
customers with the highest level of delivery logistics solutions combined with
technology offerings that best meet their needs."
The Company's CFO, Russ Reardon reported that "CD&L's cost of revenue
as a percentage of revenue has been reduced from 80.9% in 2002 to 80.3% in 2003.
These cost margin improvements were the result of an increase in the use of
independent contractors, and were offset by an SGA increase in the Company's bad
debt reserves, legal accruals and additional premises rent for new facilities as
a result of the expanded Company customer base." Mr. Reardon also commented that
"the pace of new customers partnering with CD&L - which began in earnest in
early 2003 - has the Company's current revenue run rate at 11% higher than the
year just completed."
Separately, Mr. Reardon indicated that "the Company's liquidity
position has been positively impacted by the just completed debt restructuring
which will be announced in a separate news release."
CD&L, Inc. operates 67 facilities in 21 states providing last mile
delivery solutions to various industries. The Company has over 1,400 employees
and utilizes approximately 2,450 independent contractors to provide
time-sensitive delivery services to thousands of customers across the country.
Certain statements in this news release may be "forward-looking statements"
within the meaning of Section 27A of the Securities and Exchange Act of 1933.
These forward-looking statements include comments on the Company's improved
operating performance, business development program, and increased revenues.
Statements regarding future developments are based upon current expectations and
involve certain risks and uncertainties that could cause actual results and
developments to differ materially from the forward-looking statements. Potential
risks include the risk that the Company's operating performance will not
improve, or that its business development program will be unsuccessful, or that
revenues will decrease as well as other risks specified in the Company's SEC
filings.
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CD&L, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
ASSETS
December 31,
--------------------
2003 2002
-------- --------
CURRENT ASSETS:
Cash and cash equivalents $ 1,697 $ 1,452
Accounts receivable, less allowance
for doubtful accounts of $872
and $492 in 2003 and 2002, respectively 18,786 14,909
Deferred income taxes 1,542 1,535
Prepaid expenses and other current assets 2,526 584
-------- --------
Total current assets 24,551 18,480
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net 1,446 1,233
GOODWILL, net 11,531 11,531
DEFERRED FINANCING COSTS, net 437 661
NOTE RECEIVABLE FROM STOCKHOLDER,
less allowance of $2,800 in 2002 -- --
NOTE RECEIVABLE AND SECURITY DEPOSITS 2,235 1,878
DEFERRED INCOME TAXES 152 38
-------- --------
Total assets $ 40,352 $ 33,821
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 5,767 $ --
Current maturities of long-term debt 2,585 3,442
Accounts payable and bank overdrafts
(bank overdrafts totaled $2,649 and $1,632
in 2003 and 2002, respectively) 2,649 2,644
Accrued expenses and other current liabilities 11,743 9,525
-------- --------
Total current liabilities 22,744 15,611
LONG-TERM DEBT, net of current maturities 11,785 14,041
OTHER LONG-TERM LIABILITIES 240 269
-------- --------
Total liabilities 34,769 29,921
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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 in 2003 and 2002 8 8
Additional paid-in capital 12,883 12,883
Treasury stock, 29,367 shares at cost (162) (162)
Accumulated deficit (7,146) (8,829)
-------- --------
Total stockholders' equity 5,583 3,900
-------- --------
Total liabilities and stockholders' equity $ 40,352 $ 33,821
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CD&L, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
For the Years Ended December 31,
-----------------------------------------
2003 2002 2001
--------- --------- ---------
Revenue $ 166,083 $ 157,232 $ 160,544
Cost of revenue (exclusive of depreciation and
amortization) 133,348 127,152 127,840
--------- --------- ---------
Gross profit 32,735 30,080 32,704
--------- --------- ---------
Selling, general and administrative expenses 28,136 25,492 26,881
Goodwill impairment -- 3,349
Depreciation and amortization 756 1,173 2,476
Other (income) expense, net (1,496) 206 4,685
Interest expense 2,534 2,734 2,897
--------- --------- ---------
29,930 29,605 40,288
--------- --------- ---------
Income (loss) from continuing operations before
provision (benefit) for income taxes 2,805 475 (7,584)
Provision (benefit) for income taxes
1,122 190 (1,780)
--------- --------- ---------
Income (loss) from continuing operations $ 1,683 285 (5,804)
--------- --------- ---------
Discontinued operations
Provision for loss on disposal of assets, net of
benefit for income taxes of $0, $0 and $240,
respectively -- -- (465)
--------- --------- ---------
Loss from discontinued operations -- -- (465)
--------- --------- ---------
Net income (loss) $ 1,683 $ 285 ($ 6,269)
========= ========= =========
Basic income (loss) per share :
Continuing operations $ .22 $ .04 ($ .76)
Discontinued operations .00 .00 (.06)
--------- --------- ---------
Net income (loss) per share $ .22 $ .04 ($ .82)
========= ========= =========
Diluted income (loss) per share :
Continuing operations $ .21 $ .03 ($ .76)
Discontinued operations .00 .00 (.06)
--------- --------- ---------
Net income (loss) per share $ .21 $ .03 ($ .82)
========= ========= =========
Basic weighted average common
shares outstanding 7,659 7,659 7,659
========= ========= =========
Diluted weighted average common
shares outstanding 8,174 8,167 7,659
========= ========= =========
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