Company Anticipates Progress on M&A Front During Second Quarter
JUPITER, FL / ACCESSWIRE / May 13, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), ('TLSS', or the 'Company'), a logistics service provider, announced that today, May 13, 2022, the Company filed its Form 10-Q, Quarterly Report for the first quarter ended March 31, 2022.
Sebastian Giordano, Chairman and CEO of TLSS, commented, 'While Q1 showed a loss of $2.1 million, of which $1.2 million related to non-cash adjustments and a one-time litigation settlement accrual, these results were absolutely in line with management's budgeted expectations for the period. With roughly $6 million in cash and no debt, we are very encouraged by how the Company is positioned right now, as we are poised to accelerate the Company's growth trajectory and path to profitability, that we believe, will start to become evident as Q2 unfolds.'
Financial Results for the First Quarter Ended March 31, 2022
Revenue for the three months ended March 31, 2022 decreased $233,000, or 15.6%, to $1,259,000, as compared to $1,492,000, for the same period last year. This decrease was primarily the result of decreases in revenue attributable to the Company's former subsidiary Shypdirect's mid-mile and long-haul business with Amazon of $1,155,000 and from other customers of $37,000, as Shypdirect was no longer in operations during the same period this year. These decreases were partially offset by revenue increases of $37,000 from Shyp FX and $923,000 from Cougar Express, which were businesses the Company acquired in January 2021 and March 2021, respectively, and which were both in operations the entire first quarter of 2022.
The Company generated a net loss attributable to common shareholders for the three months ended March 31, 2022 of $2,146,000, as compared to a net loss attributable to common shareholders of $3,099,000 for the same period last year. This quarter's results comprised: (i) a loss from operations of $1,801,000, including $836,000 in non-cash stock-based compensation; (ii) one-time settlement expense of $229,000; (iii) non-cash deemed dividends related to dividends accrued on Series E and Series G preferred stock of $109,000; and (iv) interest expense of $7,800.
About Transportation and Logistics Systems, Inc.
TLSS, through its wholly owned operating subsidiaries, Cougar Express, Inc and Shyp FX, Inc., operates as a full-service logistics and transportation company. For more information, visit the Company's website, www.tlss-inc.com.
Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'intend,' 'plan,' 'goal,' 'seek,' 'strategy,' 'future,' 'likely,' 'believes,' 'estimates,' 'projects,' 'forecasts,' 'predicts,' 'potential,' or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations, and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers' cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry's and customers' evolving demands; our history of losses, deficiency in working capital and stockholders' equity and our ability to achieve sustained profitability; remaining weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our remaining liabilities and indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; unanticipated and materially adverse developments in our few remaining litigations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.
These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.
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SOURCE: Transportation & Logistics Systems
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