Unique Logistics International Reports Second Quarter Fiscal 2021 Earnings (Quarter ending November 30, 2020 and the six months ending November 30, 2020)
NEW YORK, Feb. 8, 2021 /PRNewswire/ -- Unique Logistics International, Inc. (formerly Innocap, Inc.) a global logistics and freight forwarding company, today announced the filing of its Current Report on Form 10-Q (the "Current Report") which included financial results for the three month and six-month period ending November 30, 2020.
Key Financial Results:
Three Months
Six months ended
ended
November 30,
November 30, 2020
2020
Total revenues
$124.6 million
$182.1 million
Income from operations (note 1)
$3.0 million
$2.5 million
Net income
$1.4 million
$0.8 million
Adjusted EBITDA
$4.7 million
$4.8 million
Note 1: 12 months ended May 31, 2020
Pro-forma Loss from operations $1.4
million.
As of
As of
November 30,
May 31, 2020
2020
Total Assets
$69.7 million
$34.0 million
Total Stockholders' Equity
$3.9 million
$1.1 million
Key Business Highlights:
1. First 10-Q since the Company's Reverse Merger with Unique Logistics
Holdings, Inc. and subsidiaries (the "Acquired Business").
2. Management has successfully integrated the Acquired Business, achieved
synergies and continues to seek further synergies while expanding our
business.
3. An increase in pro-forma revenue from $115.1 million for the 12-month
period ended May 31, 2020 (pro forma revenue in the 8K/A as filed on
January 26, 2021) to $182.1 million for the six months period ended
November 30, 2020.
4. As evidenced by the revenue increase above, we have successfully
increased our per customer revenues.
"We have made significant progress with the integration of the Acquired Business in the last quarter. We continue to explore options to grow our business organically as well as through acquisitions", said Sunandan Ray, the Company's Chief Executive Officer. "We look forward to updating shareholders of our progress, regularly."
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 accounting principles generally accepted in the United States of America ("GAAP") to Adjusted EBITDA. Adjusted EBITDA is not a measurement of financial performance under 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 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. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of loss from continuing operations calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP") to Adjusted EBITDA. Adjusted EBITDA is not a measurement of financial performance under 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 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 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 loss 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 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 income taxes that can affect cash flows. 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 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 GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP income taxes that can affect cash flows. 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 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 GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
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.
Important Cautions Regarding Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to Conversion Labs, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
November 30, May 31,
2020 2020
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $
3,532,960 $
1,349,363
Accounts receivable - trade, net 27,427,464 7,932,310
Contract assets 12,199,516 4,837,008
Factoring reserve 8,255,173 970,724
Other prepaid expenses and current assets 82,005 91,671
Total current assets 51,497,118 15,181,076
Property and equipment - net 185,371 198,988
Other long-term assets:
Goodwill 4,773,584 4,773,584
Intangible assets - net 8,398,426 8,752,000
Operating lease right-of-use assets - net 4,300,118 4,770,280
Deposits and other assets 512,362 292,404
Total other long-term assets 17,984,490 18,588,268
Total assets $
69,666,979 $
33,968,332
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable - trade $
37,120,279 $
9,591,780
Accrued expenses and other current liabilities 1,688,745 3,619,216
Accrued Freight 10,358,076 3,477,380
Current portion of notes payable 858,333 858,333
Current portion of long-term debt due to related parties 6,385,311 6,380,975
Current portion of promissory notes 1,169,916 618,309
Convertible notes payable, net 1,273,212
Current portion of operating lease liability 1,383,251 1,288,216
Total current liabilities 60,237,123 25,834,209
Other long-term liabilities 706,674 848,010
Long-term-debt due to related parties, net of current portion 144,992 193,328
Notes payable, net of current portion 1,037,502 1,466,667
Promissory notes, net of current portion 626,146 1,027,753
Operating lease liability, net of current portion 2,970,933 3,482,064
Total long-term liabilities 5,486,247 7,017,822
Total liabilities 65,723,370 32,852,031
Commitments and contingencies
Stockholders' Equity:
Series A Convertible Preferred stock, $0.001 par value; 130,000 shares authorized; 130 130
130,000 issued and outstanding as of November 30, 2020 and May 31, 2020
Series B Convertible Preferred stock, $0.001 par value; 870,000 shares authorized; 840 870
840,000 and
870,000 issued and outstanding as of November 30, 2020 and May 31, 2020,
respectively
Common stock, $0.001 par value; 500,000,000 shares authorized; 357,829,365 and 357,830
0 shares issued and outstanding as of November 30, 2020 and May 31, 2020,
respectively
Additional paid-in capital 3,170,273 1,523,811
Retained earnings (accumulated deficit) 414,536 (408,510)
Total Stockholders' Equity 3,943,609 1,116,301
Total Liabilities and Stockholders' Equity $
69,666,979 $
33,968,332
UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three
For the Six For the Period
Months Ended
Months Ended
October 28,
November 30,
November 30, 2019
2020 2020
(inception)
Through
November 30,
2019
Revenues:
Airfreight services $
72,388,144 $
89,887,028
$
Ocean freight and ocean services 42,601,314 73,254,180
Contract logistics 838,853 1,527,563
Customs brokerage and other services 8,811,109 17,385,916
Total revenues 124,639,420 182,054,687
Costs and operating expenses:
Airfreight services 68,891,139 85,628,080
Ocean freight and ocean services 38,726,139 66,592,372
Contract logistics 297,758 561,826
Customs brokerage and other services 8,357,835 16,502,717
Salaries and related costs 2,191,247 4,292,136
Professional fees 228,739 658,480
Rent and occupancy 442,605 901,116
Selling and promotion 846,883 1,898,311
Depreciation and amortization 191,398 382,217
Fees on factoring agreements 1,410,203 1,884,263
Other 16,190 238,889 15
Total costs and operating expenses 121,600,136 179,540,407 15
Income (loss) from operations 3,039,284 2,514,280 (15)
Other expenses
Interest (203,740) (236,179)
Loss on extinguishment of convertible note (1,147,856) (1,147,856)
Total other expenses (1,351,596) (1,384,035)
Net income (loss) before income taxes 1,687,688 1,130,245 (15)
Income tax expense 290,505 307,199
Net income (loss) $
1,397,183 $
823,046 $
(15)
Net income (loss) per common share
- basic $
0.01 $
0.01 $
(0.00)
- diluted $
0.00 $
0.00 $
(0.00)
Weighted average common shares outstanding
- basic 252,603,584 167,748,635
- diluted 8,646,523,725 9,180,134,802
Adjusted EBITDA
Following is the reconciliation of our consolidated net income to Adjusted EBITDA:
For the Three For the Six
Months Ended Months Ended
November 30, November 30,
2020 2020
Net income $
1,400,038 825,901
Add Back:
Income tax expense 290,505 307,199
Depreciation and amortization 191,398 382,217
Stock- based compensation 50,000 50,000
Loss on extinguishment of convertible notes 1,147,856 1,147,856
Factoring fees 1,410,203 1,884,263
Interest expense (including accretion of debt discount) 203,740 236,179
3,293,702 4,007,714
Adjusted EBITDA 4,690,885 4,830,760
SOURCE Unique Logistics International, Inc.
