NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Clark Holdings Inc. (Amex: GLA; GLA.U; GLA.WS), a non-asset-based provider of mission-critical supply chain solutions, today announced financial results for the second quarter and six months ended June 28, 2008.
The results of operations for the quarters and six month periods ended June 28, 2008 and June 30, 2007 are presented for comparative purposes as if the business combination of Global Logistics Acquisition Corporation and The Clark Group, Inc. took place on January 1, 2007.
Summarized non-GAAP (pro forma) financial results for the quarter and six month periods ended June 28, 2008 and June 30, 2007 are as follows (dollars in thousands):
(unaudited) Quarter Quarter Six Months Six Months Ended Ended Ended Ended June 28, June 30, % June 28, June 30, % 2008 2007 Change 2008 2007 Change Gross revenues Domestic $17,507 16,065 9.0% 33,666 31,280 7.6% International 3,706 3,096 19.7% 6,846 6,210 10.2% Consolidated 21,213 19,160 10.7% 40,512 37,490 8.1% Gross profit Domestic $5,987 5,959 0.5% 11,893 11,489 3.5% International 1,344 1,391 (3.4%) 2,649 2,799 (5.3%) Consolidated 7,331 7,350 (0.3%) 14,542 14,288 1.7% Income from operations before interest and taxes Consolidated 695 1,046 1,615 987 Interest Income/ (Expense) (net) (46) (126) 181 (232) Income before taxes and adjustment 649 920 1,796 755 Less Clark Group Inc. Income from 12/30/2007 to 2/11/2008 - - (834) - Income before income taxes 649 920 962 755 Taxes (295) (460) (443) (378) Net Income 354 460 519 377 Shares Outstanding 10,861 14,317 11,781 14,317 Earnings per share (fully diluted) 0.03 0.03 0.04 0.03 Pro forma adjusted Earnings per share (fully diluted) 0.07(1) 0.06(2) 0.15(3) 0.10(4)
(1) Excludes one-time acquisition related expenses totaling $3,000, amortization of intangibles totaling $610,000, a one-time correction of vacation accrual totaling $56,000 and non-recurring severance expenses totaling $64,000.
(2) Excludes one-time acquisition expenses totaling $43,000, amortization of intangibles totaling $610,000, less public company costs of $512,000.
(3) Excludes one-time acquisition related expenses totaling $98,000, amortization of intangibles totaling $931,000, a one-time correction of vacation accrual totaling $181,000, and non-recurring severance expenses totaling $64,000.
(4) Excludes one-time acquisition expenses totaling $43,000, amortization of intangibles totaling $1,220,000, non-recurring severance expenses totaling $280,000, non-cash compensation paid to a consultant totaling $570,000, less public company costs of $849,000.
Second Quarter and Six Months Financial Highlights
-- Gross revenues increased 10.7% during the second quarter, driven by a 9.0% increase in domestic revenues and a 19.7% increase in international revenues.
-- Second quarter 2008 pro-forma adjusted EPS was $0.07 compared to pro-forma adjusted EPS of $0.06 for the second quarter of 2007.
-- Operating cash flow during the second quarter of 2008 was $1.3 million compared to $1.0 million during the second quarter of 2007.
-- Consolidated gross profit for the six month period increased 1.7%, driven by 3.5% growth in domestic gross profit.
-- Pro-forma adjusted EPS for the six month period was $0.15 compared to pro-forma adjusted EPS of $0.10 for the 2007 six month period.
"We generated strong revenue growth and flat gross profit during the second quarter of 2008 despite a difficult operating environment driven by higher fuel prices," said Tim Teagan Chief Executive Officer of Clark Holdings. "We have worked diligently over the past six months to optimize our international operations for future growth. During the second quarter, we began to see the benefits of our efforts, highlighted by 19.7% revenue growth which resulted from new customer wins as well as deepening relationships with existing customers. In our domestic business, we remain committed to strengthening our market position through a combination of organic growth and potential tuck-in acquisitions."
Second Quarter Results
Clark Holdings reported gross revenues of $21.2 million in the second quarter of 2008, up 10.7% compared to gross revenues of $19.2 million in the same period last year. Domestic gross revenue increased 9.0% while international gross revenue increased 19.7%.
During the second quarter of 2008, consolidated gross profit margin decreased to 34.6% from 38.4% during the second quarter of 2007. Domestic gross profit for the second quarter of 2008 was $6.0 million, up 0.5% compared to domestic gross profit in the same period last year. Domestic gross profit margin decreased to 34.2% from 37.1%. International gross profit for the second quarter of 2008 was $1.3 million, down slightly compared to international gross profit of $1.4 million in the same period last year.
Second quarter operating income was $695,000, compared to $1.0 million in the same period last year which did not include any public company costs. Net income in the second quarter of 2008 was $354,000 or $0.03 per share, compared to net income of $460,000, or $0.03 per share in the second quarter of 2007.
Pro-forma adjusted EPS was $0.07 in the second quarter of 2008 compared to pro-forma adjusted EPS of $0.06 in the second quarter of 2007. Pro-forma adjusted EPS for both periods excludes the impact of several one-time items.
Six Month Results
Clark Holdings reported gross revenues of $40.5 million for the six months ended June 28, 2008, up 8.1% compared to gross revenues of $37.5 million in the same period last year. Domestic gross revenue increased 7.6% while international gross revenue increased 10.2%.
Consolidated gross profit margin during the six month period decreased to 35.9% from 38.1% in the prior year period. Domestic gross profit for the six month period of was $11.9 million, up 3.5% compared to domestic gross profit of $11.5 million in the same period last year. Domestic gross profit margin decreased to 35.3% from 36.7%. International gross profit during the six month period was $2.6 million compared to international gross profit of $2.8 million in the same period last year.
Operating income was $1.6 million for the first six months of 2008, compared to operating income of $987,000 during the same period last year. Net income for the first six months of 2008 was $519,000 or $0.04 per share, compared to net income of $377,000, or $0.03 per share for the same period last year.
Pro-forma adjusted EPS was $0.15 for the first six months of 2008 compared to pro-forma adjusted EPS of $0.10 for the same period in 2007. Pro-forma adjusted EPS for both periods excludes the impact of several one-time items.
2008 Outlook
Due to the impact of higher operating expenses, particularly fuel, and also a higher effective tax rate during the first half of 2008 than previously anticipated, Clark Holdings currently expects its 2008 EPS to be at the lower end of its previously announced range of $0.32 to $0.42 per diluted share. The Company also expects to lower its effective tax rate to approximately 41% in 2008.
Filing of Restated First Quarter Form 10-Q
Clark also announced that it has filed an amended Form 10-Q for the first quarter of 2008. The amended 10-Q reflects the restatement of accrued compensation expenses to include certain management bonuses. As a result of these restatements, the Company reported net income of $165,000, or $0.01 per share for the first quarter of 2008 compared to previously reported net income of $227,000 or $0.02 per share.
About Clark
Over its 30-year history, Clark has built a position as the leading independent provider of value-added distribution, transportation management, and international air and ocean freight forwarding services to the print media industry.
This press release may contain certain forward-looking statements including statements with regard to the future performance of Clark Holdings. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties that are detailed in Clark Holdings' filings with the Securities and Exchange Commission. Clark Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CLARK HOLDINGS INC. CONSOLIDATED BALANCE SHEETS (In Thousands) (UNAUDITED) June 28, 2008 December 31, 2007 ASSETS CURRENT ASSETS: Cash and cash equivalents $3,009 $133 Accounts receivable 7,255 - Other receivables 289 - Prepaid expenses 1,116 159 Deferred tax assets-current 1,265 Current assets of discontinued operations 110 - Total current assets 13,044 292 Investments in marketable securities held in trust account - 88,423 Deferred acquisition costs - 874 Deferred tax assets-non-current 774 811 PROPERTY AND EQUIPMENT, net of accumulated depreciation 1,430 - Intangible assets, net of accumulated amortization of $931,000 25,643 - Goodwill 60,500 - Other assets - - Total assets $101,391 $90,400 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 6,794 $ - Accrued expenses and other payables 2,096 537 Notes payable and accrued interest-related party - 348 Deferred underwriting fees - 2,640 Current portion of long term debt 947 - Deferred tax liabilities-current 170 - Current liabilities of discontinued operations 161 - Total current liabilities 10,168 3,525 COMMITMENTS AND CONTINGENCIES Common stock subject to conversion 2,199,999 shares - 16,896 Interest attributable to common stock, subject to possible conversion, (net of taxes of $658,163 and $313,349, respectively) - 789 Long term debt 3,786 - Deferred tax liabilities-non-current 11,548 - STOCKHOLDERS' EQUITY Preferred stock-$.0001 par value; 1,000,000 shares authorized; none issued and outstanding - - Common stock-$.0001 par value; 400,000,000 shares authorized; 13,500,000 issued and outstanding at December 31, 2007 1 1 and 10,859,385 issued and outstanding at June 28, 2008 Additional paid-in capital 73,354 67,174 Retained earnings 2,534 2,015 Total stockholders' equity 75,889 69,190 Total liabilities and stockholders' equity $101,391 $90,400 CLARK HOLDINGS INC. Consolidated Adjusted Pro Forma (Non-GAAP) Statement of Operations (UNAUDITED) (In Thousands) 13 Weeks 13 Weeks 26 Weeks 26 Weeks Ended Ended Ended Ended June 28, June 30, June 28, June 30, 2008 2007 2008 2007 Gross Revenues 21,213 19,160 40,512 37,490 Freight Expense (13,882) (11,810) (25,970) (23,202) Gross Profit 7,331 7,350 14,542 14,288 Depreciation and Amortization (662) (691) (1,032) (1,387) Selling, Operating And Administrative Expenses (5,974) (5,613) (11,895) (11,914) Income from Operations 695 1,046 1,615 987 Interest income (expense) (46) (126) 181 (232) Income before incomes taxes and adjustments 649 920 1,796 755 Less: Clark Group Inc. Income from 12/30/2007 to 02/11/2008 - - (834) - Income before income taxes 649 920 962 755 Income tax expense (295) (460) (443) (378) Net income (loss) 354 460 519 377 Earnings per share Basic 0.03 0.04 0.04 0.03 Diluted 0.03 0.03 0.04 0.03 Weighted average number of shares Outstanding Basic 10,859 11,300 11,774 11,300 Diluted 10,861 14,317 11,781 14,317 Pro Forma Reconciliation Income before incomes taxes and adjustments 649 920 1,796 755 Plus Acquisition Related Expenses 3 43 98 43 Plus Amortization of Intangibles 610 610 931 1,220 Plus Interim Vacation Accrual 56 - 181 - Less Additional Public Company Costs-1st Q '07 - - - (337) Plus non-recurring severance expense 64 - 64 280 Plus Non Cash Compensation Paid to Consultant - - - 570 1,382 1,573 3,070 2,531 Income Tax Expense (608) (692) (1,351) (1,114) Net Income 774 881 1,719 1,417 Net income per share amount Basic 0.07 0.08 0.15 0.13 Diluted 0.07 0.06 0.15 0.10 Weighted Average Number of Shares Outstanding: Basic 10,859 11,300 11,774 11,300 Diluted 10,861 14,317 11,781 14,317
