Unique Logistics International Reports Financial Results for Fiscal Quarter ended August 31, 2022


NEW YORK, Oct. 12, 2022 /PRNewswire/ — Unique Logistics International, Inc. (OTCMKTS: UNQL) (“Unique” or the “Company”), a global logistics and freight forwarding company, today announced results for its fiscal quarter ended August 31, 2022.

Financial Results

(in millions)





For the Three Months Ended August 31


2022


2021









Net Revenue

$                        136.5


$                          189.8

Adjusted EBITDA

$                            5.1


$                              3.4






 As of


August 31, 2022


May 31, 2022





Total Assets

$                        111.7


$                          124.9

Total Stockholders’ Equity

$                            9.2


$                              5.8

 

  • The company improved gross margins and finished August 31, 2022, with EBITDA at 3.8% of revenue vs. 1.7% during the same period a year ago, despite top-line revenue falling 28% YoY due to reductions in shipping prices and market activity.
  • Adjusted EBITDA increased 50% year over year.

CEO, Sunandan Ray commented on the financial results, “The prevailing market conditions, as expected, have resulted in a drop in our Revenue. Freight rates are significantly lower than a year ago and USA retailers have reduced shipping as inventory levels adjust. We have, however, made significant progress executing our procurement strategy in the August quarter, allowing us to contain costs and increase adjusted EBITDA by 50%. Shipping markets slowed during the August quarter as the post-COVID bounce faded, and macro factors started to weigh on pricing power. We entered the quarter focusing on operational efficiency.  We continue to work to close the previously announced acquisitions which will aid our efficiency efforts and help us achieve scale.”

Business Outlook

Mr. Ray stated, “We continue to approach the remainder of the year cautiously optimistic about the Company’s growth prospects. We are confident our sales efforts will continue to bear fruit, and management will implement processes to increase profitability and EBITDA by building on the value additions in our service and operational efficiency.”

About Unique Logistics International, Inc.

Unique Logistics International, Inc. (OTC Markets: 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.

For more information on UNQL and its businesses, please visit www.unique-usa.com.

About Non-GAAP Financial Measures (Adjusted EBITDA)

We define adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization, factoring fees, other income, net, stock-based compensation and expenses, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.

Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplement to net income from operations as an indicator of operating performance. We use adjusted EBITDA as a financial metric to measure the financial performance of the business because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.

We believe that adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income from continuing operations and adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to income from operations or net income from operations 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. We do 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 our condensed consolidated financial statements prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

Although we believe that the expectations reflected in these forward-looking statements such as the growth in revenues, along with the statements under the heading Business Outlook are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended May 31, 2022. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

UNIQUE LOGISTICS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



















For the Three Months

Ended


For the Three Months

Ended


August 31, 2022

August 31, 2021

Revenues:








Airfreight services


$

29,934,037


$

52,162,641


Ocean freight and ocean services



88,254,730



123,300,758


Contract logistics



768,714



722,664


Customs brokerage and other services



17,551,391



13,585,797


Total revenues



136,508,872



189,771,860










Costs and operating expenses:








Airfreight services



27,549,841



51,625,775


Ocean freight and ocean services



81,937,860



116,587,742


Contract logistics



312,892



390,400


Customs brokerage and other services



16,644,743



12,925,092


Salaries and related costs



3,284,382



2,751,380


Professional fees



763,304



293,867


Rent and occupancy



529,110



480,209


Selling and promotion



100,854



1,033,128


Depreciation and amortization



200,674



193,799


Other



332,947



295,120


Total costs and operating expenses



131,656,607



186,576,512










Income from operations



4,852,265



3,195,348










Other income (expenses)








Interest expense



(1,357,685)



(1,290,279)


Amortization of debt discount





(385,480)


Gain on forgiveness of promissory note





358,236


Change in fair value of derivative liabilities



618,948




Gain on extinguishment of convertible note





780,050


Total other income (expenses)



(738,737)



(537,473)










Net income before income taxes



4,113,528



2,657,875










Income tax expense



792,187



634,459










Net income



3,321,341



2,023,416


 

UNIQUE LOGISTICS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS












August 31, 2022



August 31, 2021




(Unaudited)





ASSETS









Current Assets:









Cash and cash equivalents


$

270,802



$

1,422,393


Accounts receivable, net



64,118,815




74,746,036


Contract assets



28,179,436




30,970,581


Other prepaid expenses and current assets



2,340,290




1,404,021


Total current assets



94,909,343




108,543,031











Property and equipment, net



233,572




188,889











Other long-term assets:









Goodwill



4,463,129




4,463,129


Intangible assets, net



7,160,918




7,337,704


Operating lease right-of-use assets, net



2,421,792




2,408,098


Deferred tax asset, net



918,618




942,748


Deposits



1,591,926




1,028,336


Other long-term assets



16,556,383




16,180,015


Total assets


$

111,699,298



$

124,911,935











Liabilities and Stockholders’ Equity









Current Liabilities:









Accounts payable


$

41,663,853



$

49,028,862


Accrued expenses and other current liabilities



5,200,815




5,666,159


Accrued freight



3,056,146




9,240,650


Contract Liabilities






468,209


Revolving credit facility



36,785,256




38,141,451


Current portion of notes payable, net of discount



608,333




608,333


Current portion of long-term debt due to related parties



369,979




301,308


Current portion of operating lease liability



720,096




912,618


Total current liabilities



88,404,478




104,367,590











Other long-term liabilities



211,998




282,666


Long-term-debt due to related parties, net of current portion



301,308




397,968


Derivative liabilities



11,819,046




12,437,994


Operating lease liability, net of current portion



1,809,283




1,593,873


Total long-term liabilities



14.141.635




14,712,501











Total liabilities



102,546,113




119,080,091











Commitments and contingencies
















Stockholders’ Equity:









Preferred Stock, $0.001 par value: 5,000,000 shares authorized









Series A Convertible Preferred stock, $0.001 par value; 120,065 and 130,000, issued and outstanding as of August 31, 2022 and May 31, 2022, respectively. Liquidation preference $12 on August 31, 2022.



120




130


Series B Convertible Preferred stock, $0.001 par value; 820,800 shares issued and outstanding as of August 31, 2022 and May 31, 2022. Liquidation preference $82 on August 31, 2022.



821




821


Series C Convertible Preferred stock, $0.001 par value; 195 shares, issued and outstanding as of August 31, 2022 and May 31, 2022 Liquidation preference $15.9 million on August 31, 2022







Series D Convertible Preferred stock, $0.001 par value; 182 and 187, issued and outstanding as of August 31, 2022 and May 31, 2022, respectively. Liquidation preference $14.9 million on August 31, 2022







Preferred stock, value









Common stock $0.001 par value; 800,000,000 shares authorized.



799,142




687,197


799,141,770 and 687,196,478 common shares issued and outstanding as of August 31, 2022 and May 31, 2022, respectively

Additional paid-in capital



180,220




292,155


Retained earnings



8,172,882




4,851,541


Total Stockholders’ Equity



9,153,185




5,831,844


Total Liabilities and Stockholders’ Equity


$

111,699,298



$

124,911,935


 

UNIQUE LOGISTICS INTERNATIONAL, INC.

ADJUSTED EBITDA (Non GAAP Measure)





















For the Three Months

Ended



For the Three Months

Ended




August 31, 2022

August 31, 2021

Net income available to common shareholders


$

3,321,341



$

2,023,416











Add Back:









Income tax expense



792,187




634,459


Depreciation and amortization



200,674




193,799


Gain on forgiveness of promissory notes






(358,236)


Gain on extinguishment of convertible notes






(780,050)


Change in fair value of derivative liability



(618,948)





Factoring fees






27,000


Interest expense



1,357,685




1,675,759











Adjusted EBITDA


$

5,052,939



$

3,416,147


 

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SOURCE Unique Logistics International, Inc.

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