Unique Logistics International, Inc. Reports Financial Results for the Second Quarter ended November 30, 2021

Rhea-AI Summary

Unique Logistics International (UNQL) reported record financial results for Q2 and the first half of the fiscal year, with net sales reaching $405.4 million, a 225% increase from the previous year. Income from operations rose to $8.7 million, up 190% YoY, while net income also grew to $4.5 million. Adjusted EBITDA increased by 89% to $8.9 million. The company eliminated $5.9 million of debt, resulting in a 103% rise in stockholders' equity. The results reflect strong organic growth and demand in the logistics sector.

Positive

• Net sales increased by $280.8 million, or 225%, totaling $405.4 million for Q2.
• Income from operations rose to $8.7 million, a 190% YoY increase.
• Net income climbed to $4.5 million, up from $1.4 million the previous year.
• Adjusted EBITDA improved by 89%, reaching $8.9 million.
• Elimination of $5.9 million of debt enhanced the balance sheet.
• Stockholders' equity grew by 103% to $13.4 million.

Negative

• Seasonal factors could negatively impact shipping volumes for the remainder of the fiscal year.

NEW YORK, Jan. 14, 2022 /PRNewswire/ -- Unique Logistics International, Inc. ("UNQL or the Company") (OTC Markets: UNQL) a rapidly growing global logistics and freight forwarding company, today announced the filing of its Current Report on Form 10-Q (the "Current Report") reporting record financial results (unaudited) for the second quarter and the first six months of its current fiscal year.

• Second quarter net sales increased $280.8 million, or 225% versus the second quarter of prior year to $405.4 million
• Second quarter Income from Operations, up $5.7 million, or 190%, versus the second quarter of prior year
• Adjusted EBITDA for the second quarter is up $4.2 million, or 89%, versus the second quarter of prior year

 

Key Results (unaudited)
(in millions)
	Second Quarter Ended November 30			First Six Months Ended November 30
	2021	2020		2021	2020
Net Revenue	$                       405.4	$                       124.6		$                     595.2	$                      182.1
Income from Operations	8.7	3.0		11.9	2.5
Net Income	$                          4.5	$                          1.4		$                         6.5	$                          0.8
Adjusted EBITDA	$                          8.9	$                          4.7		$                       12.3	$                          4.8
	As of
	November 30, 2021	May 31, 2021
Total Assets	$                       210.7	$                        69.4
Total Stockholders' Equity	$                        13.4	$                          6.6

"With this record quarter, UNQL remains firmly on track to achieve and exceed our goals for Fiscal Year 2022. The successful organic growth of our business has positioned us strongly to complete strategic acquisitions, integrate them into our organization and expand our business for the future," said Sunandan Ray, Chief Executive Officer.

"Our 225% revenue growth over the second quarter of prior year is a testament to this team's successful capacity management for existing customers as well as the addition of new customers, particularly during these unique but challenging peak shipping periods. This organic growth has positioned us to continue making judicious strategic acquisitions and expanding our capacity for new and recurring customers."

Key Business Highlights:

Revenue Environment:

• Demand for international logistics services remains strong. Seasonal factors will undoubtedly impact shipping volumes in the remainder of the Fiscal Year, but the overall trends are positive; and the Company is in a favorable position.
• The reported revenue growth reflects the continuing success of the Company in achieving organic growth and increased market share by acquiring new customers in a challenging logistics market, through critical procurement and marketing strategies.

Cost Performance:

• The quarter ended November 30, 2021, was the peak shipping period for USA imports. The Company's procurement strategy utilizing chartered air cargo capacity as well as long term relationships with shipping lines and airlines resulted in the successful execution of increased shipping demand.
• The Company is constantly seeking cost saving opportunities throughout all levels of its business. Total cost and operating expenses for the period was contained at a level where the Company was able to deliver $8.7 million in Operating Income, while maintaining competitive rates for its customers, predominantly United States based importers facing increased supply chain costs and various supply chain problems. The Company has been able to deliver consistent cost performance as we seek cost-saving opportunities at all levels of the business.

Subsequent Event/ Reduction of Debt:

• The Company has undertaken continued efforts to strengthen its balance sheet. As disclosed in an 8-K filing on December 13, 2021, the Company reached agreement, effective December 10, 2021, with its convertible debt holders for an exchange of debt and warrants of $ 3.9 million into equity. As a result, the Company eliminated all convertible debt in its balance sheet.
• As disclosed in another 8-K filing, dated January 10, 2022, on January 7, 2022, the Company repaid, early, $2 million of non-convertible debt to two of its noteholders.
• The above actions resulted in the elimination of $5.9 million of debt in the Company's balance sheet. The Company's Stockholder's Equity of $13.4 million grew 103% during the current Fiscal Year.
  Further details can be found in the Company's Form 10-Q filed January 14, 2022.

Non-GAAP Measurement of Business Performance:

This press release includes certain financial information not prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), including Adjusted EBITDA. 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.

Forward-Looking Statements

This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the "safe harbor" created by hose sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. All statements other than statements of historical facts included in this news release regarding our strategies, prospects, financial condition, operations, costs, plans, and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our services; the acceptance of our services by customers; our continued ability to pay operating costs and ability to meet demand for our services; the amount and nature of competition from other logistics service providers; the effects of changes in the logistics market; our ability to comply with applicable regulations; and the other risks and uncertainties described in our prior filings with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
			November 30, 2021				May 31, 2021
			(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	840,756			$	252,615
Accounts receivable – trade, net			142,577,549				20,369,747
Contract assets			50,004,259				23,423,314
Factoring reserve			-				7,593,665
Other prepaid expenses and current assets			980,779				761,458
Total current assets			194,403,343				52,400,799
Property and equipment – net			200,721				192,092
Other long-term assets:
Goodwill			4,463,129				4,463,129
Intangible assets – net			7,691,279				8,044,853
Operating lease right-of-use assets – net			3,087,387				3,797,527
Deposits and other assets			879,362				555,362
Other long-term assets			16,121,157				16,860,871
Total assets		$	210,725,221			$	69,453,762
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable – trade		$	75,885,954			$	38,992,846
Accrued expenses and other current liabilities			10,710,006				2,383,915
Accrued freight			49,337,707				10,403,430
Contract liabilities			20,331,879				-
Revolving credit facility			29,833,248				-
Current portion of notes payable – net of discount			3,918,339				2,285,367
Current portion of long-term debt due to related parties			198,933				397,975
Current portion of operating lease liability			1,399,186				1,466,409
Total current liabilities			191,615,252				55,929,942
Other long-term liabilities			424,002				565,338
Long-term-debt due to related parties, net of current portion			699,334				715,948
Notes payable, net of current portion – net of discount			2,812,704				3,193,306
Operating lease liability, net of current portion			1,799,273				2,431,144
Total long-term liabilities			5,735,313				6,905,736
Total liabilities			197,350,565				62,835,678
Commitments and contingencies (Note 9)			-				-
Stockholders' Equity:
Preferred Stock, $0.001 par value: 5,000,000 shares authorized
Series A Convertible Preferred stock, $0.001 par value; 130,000 issued and outstanding as of November 30, 2021 and May 31, 2021			130				130
Series B Convertible Preferred stock, $0.001 par value; 820,800 and 840,000 shares issued and outstanding as of November 30, 2021 and May 31, 2021, respectively			821				840
Preferred Stock, Value
Common stock, $0.001 par value; 800,000,000 shares authorized; 655,781,078 and 393,742,663 shares issued and outstanding as of November 30, 2021 and May 31, 2021, respectively			655,782				393,743
Additional paid-in capital			4,889,295				4,906,384
Retained earnings			7,828,628				1,316,987
Total Stockholders' Equity			13,374,656				6,618,084
Total Liabilities and Stockholders' Equity		$	210,725,221			$	69,453,762

 

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
		For the Three Months Ended						For the Six Months Ended
		November 30,						November 30,
		2021			2020			2021				2020
Revenues:
Airfreight services		$	275,070,204		$	72,388,144		$	327,232,845			$	89,887,028
Ocean freight and ocean services			115,421,970			42,601,314			238,722,728				73,254,180
Contract logistics			1,211,056			838,853			1,933,720				1,527,563
Customs brokerage and other services			13,727,459			8,811,109			27,313,256				17,385,916
Total revenues			405,430,689			124,639,420			595,202,549				182,054,687
Costs and operating expenses:
Airfreight services			269,019,226			68,891,139			320,645,001				85,628,080
Ocean freight and ocean services			107,173,955			38,726,139			223,761,697				66,592,372
Contract logistics			679,426			297,758			1,069,826				561,826
Customs brokerage and other services			12,393,603			8,357,835			25,318,695				16,502,717
Salaries and related costs			2,817,938			2,191,247			5,569,318				4,292,136
Professional fees			184,459			228,739			478,326				658,480
Rent and occupancy			489,770			442,605			969,979				901,116
Selling and promotion			2,659,490			846,883			3,692,618				1,898,311
Depreciation and amortization			194,875			191,398			388,672				382,311
Fees on factoring agreements			-			1,410,203			27,000				1,884,263
Other			1,154,945			16,190			1,423,067				238,889
Total costs and operating expenses			396,767,687			121,600,136			583,344,199				179,540,407
Income from operations			8,663,002			3,039,284			11,858,350				2,514,280
Other income (expenses)
Interest expense, net			(1,881,201)			(28,474			(3,171,480)				(60,913)
Amortization of debt discount			(391,035)			(175,266			(776,515)				(175,266)
Gain (loss) on extinguishment of convertible notes payable			-			(1,147,856			780,050				(1,147,856)
Gain on forgiveness of promissory note			-			-			358,236				-
Total other income (expenses)			(2,272,236)			(1,351,596			(2,809,709)				(1,384,035)
Net income before income tax provision			6,390,766			1,687,688			9,048,641				1,130,245
Income tax provision			1,902,541			290,505			2,537,000				307,199
Net income		$	4,488,225		$	1,397,183		$	6,511,641			$	823,046

 

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
Adjusted EBITDA
		For the Three				For the Three
		Months Ended				Months Ended
		November 30, 2021				November 30, 2020
Net income (loss)		$	4,488,225			$	1,397,183
Add Back:
Income tax expense			1,902,541				290,505
Depreciation and amortization			194,875				191,398
Stock-based compensation			-				50,000
(Gain) loss on extinguishment of convertible notes			-				1,147,856
Factoring fees			-				1,410,203
Interest expense (including accretion of debt discount)			2,272,236				203,740
Adjusted EBITDA		$	8,857,887			$	4,690,885
		For the Six				For the Six
		Months Ended				Months Ended
		November 30, 2021				November 30, 2020
Net income (loss)		$	6,511,641			$	823,046
Add Back:
Income tax expense			2,537,000				307,199
Depreciation and amortization			388,672				382,217
Stock-based compensation			-				50,000
Gain on forgiveness of promissory notes			(358,236)				-
(Gain) loss on extinguishment of convertible notes			(780,050)				1,147,856
Factoring fees			27,000				1,884,263
Interest expense (including accretion of debt discount)			3,947,995				236,179
Adjusted EBITDA		$	12,274,022			$	4,830,760

 

 

 

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SOURCE Unique Logistics International, Inc.

FAQ

What were Unique Logistics International's Q2 earnings results for 2022?

In Q2 2022, Unique Logistics reported net sales of $405.4 million, a 225% increase from the previous year. Income from operations was $8.7 million and net income reached $4.5 million.

How much debt did Unique Logistics eliminate in 2022?

Unique Logistics eliminated $5.9 million of debt in December 2021, improving its financial position.

What is the outlook for Unique Logistics' revenue growth in FY 2022?

Unique Logistics is on track to exceed its growth goals for FY 2022, driven by strong demand for international logistics services.

What is the Adjusted EBITDA for Unique Logistics in Q2 2022?

Unique Logistics reported an Adjusted EBITDA of $8.9 million for Q2 2022, reflecting an 89% increase year-over-year.