myFreightWorld Technologies Announces Net Loss of $373 Thousand for Third Quarter; Revenue Increases 23% Over Prior Year; Outlook Improves
(firmenpresse) - OVERLAND PARK, KS -- (Marketwire) -- 11/08/11 -- myFreightWorld Technologies, Inc. (PINKSHEETS: MYFT) announced third quarter losses of $373,000 vs. net profit of $83,000 in the prior-year quarter. For the nine months ended September 30, MYFT reported a net loss of $775,000 vs. a loss of $208,000 in the prior-year period. Comparisons between the two years are affected by the inclusion in 2011 of results for Informed Logistics Technologies, LLC and MFW Holdings LLC, which had the effect of reducing reported third quarter earnings in 2011.
Revenues for the three months ended September 30, 2011 were $3.4 million vs. $2.6 million in the year-earlier quarter, an increase of 29%. Net margin increased for the quarter from $477,000 to $840,000, an increase of 76%.
"We have seen a significant improvement in our continuing operations during the third quarter of 2011," said Kevin C. Childress, President and Chief Executive Officer. "Our basic business metrics such as daily loads, net margins and cash SG&A expenses show significant improvement both year over year and quarter over quarter. In addition, we expect our current trajectory to produce profitability on an EBITDA basis by the second half of next year and to produce net profits within two to three quarters thereafter."
In addition, MFW announced the retention of Weaver Martin & Samyn of Kansas City, Missouri to perform its year-end 2011 audit. The audit and 2011 results will be completed and released on or before March 31, 2012.
A conference call with management to discuss results and prospects for the Company will be held today at 4:30 PM Eastern Standard Time. Please dial 888-395-3227 and enter the passcode 5024269.
myFreightWorld Technologies Inc. is a business services firm that specializes in providing technology, transportation and supply chain management services to third-party logistics managers (3PLs) and transportation intermediaries (TIs), primarily in the United States. Leveraging its proprietary Web-based software platform, the Company provides its 3PL and Motor Carrier customers with a Customer Relationship Management (CRM) information pipeline that provides complete visibility to shippers, consignees and other interested suppliers of shipments during the entire Shipment Life Cycle. For more information, see .
The matters set forth in this press release may contain forward-looking statements regarding myFreightWorld and its business within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date on which they are made and myFreightWorld undertakes no obligation to publicly update or revise any forward-looking statement, whether as a consequence of new information, future events, or otherwise. Statements are subject to risks and uncertainties that may cause actual outcomes to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the OTC Pinksheets including the company's Annual Report, Quarterly Reports and other periodic filings.
Notes to Consolidated Financial Statements
For the nine months ended September 30, 2011 and 2010
Myfreightworld Technologies, Inc. (Company) is a Nevada corporation having originally incorporated as Cable Advertising System, Inc. followed by several other name changes and is publicly traded on the OTC Pink Sheets under the symbol MYFT. The most recent name change was from Anything Brands Online, Inc on February 16, 2010. Since its inception, it has never been a shell company.
On March 31, 2009, the Company purchased the Contract Management Division (CMD) of myFreightWorld.com, LLC for 1,000,000 preferred series B shares that can be converted into 10,000,000 common shares and a note for $2,000,000. See Note 6, "Related Party Transactions."
In March 2010, the Company further amended the agreement to purchase CMD. The amendment resulted in the issuance to designees of the Company 3,900,000 shares of Class A Preferred and 20,112,909 shares of Class B Preferred. Further amendment allows any combination of Class A and Class B Preferred shares up to a total of 24,012,909 shares.
On September 1, 2010, the Company purchased All Modes Transport Limited (All Modes), a Kansas Corporation, in exchange for 25 million common shares of the Company and an estimated $300,000, dependent on the earnings of All Modes, to be paid in quarterly installments over the next thirteen months.
On July 20, 2011, the company acquired Informed Logistics Technologies, LLC (ILT) and all of their issued and outstanding shares in the company. ILT is the founding information technology company that is the basis of all of the company's operating systems and software innovations. ILT has been fully consolidated into the company's financial statements and has valued its software technology at its estimated fair value. The transaction required MYFT to issue shares equivalent to 32% of the company. This transaction required the company to increase the total authorized shares.
The unaudited financial statements included herein were prepared from the records of the Company and adjusted for comparative purposes. These financial statements reflect all adjustments, which are, in the opinion of management, necessary to provide the results of operations and financial position for the interim periods ended September 30, 2011 and 2010. Significant adjustments may be required upon the financial statements being audited to be in conformity with Generally Accepted Accounting Principles.
The Company's financial statements are consolidated with Myfreightworld Carrier Management, Inc. (MYCM), a Nevada corporation, since January 1, 2009 that include the CMD acquired from Myfreightworld.com, LLC. Effective September 1, 2010, the Company's financial statements are consolidated with All Modes and effective July 20, 2011 the Company's financial statements are consolidated with Informed Logistics Technologies, LLC.
The financial statements of Anything Green Online, Inc. are not consolidated in the financial statements because they are immaterial to that of MYCM. Any activity has been eliminated from historical financial statements for comparative purposes.
The unaudited financial statements include estimates of value when an objective source for valuation was not available.
The company's policy is to consider cash and cash equivalents to consist of checking accounts, money market accounts or certificates of deposits having maturity dates of 180 days or less.
Financial instruments consist primarily of cash and obligations under accounts payable and accrued expenses. The carrying value of cash, accounts payable and accrued expenses approximate fair value because of the short-term maturity of those instruments.
On September 29, 2008, which was later modified on October 27, 2008, the Company entered into a strategic cross marketing and equity exchange agreement with Mediatechnics Corporation whose stock trades over the counter under the symbol MEDT. The agreement expired on October 26, 2010. The transaction resulted in the company receiving 10,000,000 common shares of MEDT. The Company also issued 20,000,000 of its common shares to MEDT under the agreement. The Company has recorded a carrying value for the MEDT shares at $100,000.
On June 7, 2010 the Company sold ABOL, Inc. to Anything Technologies Media, Inc., "EXMT," in a share for share exchange. The Company received 30,000,000 shares of EXMT and declared a dividend for shareholders of record at May 6, 2010 and estimates its dividend to shareholders to total around 25,000,000 shares of EXMT. The Company's cost basis in ABOL, Inc. was approximately $900,000 or $.03 per share which is the value attributed to the EXMT shares received. The carrying value of the investment in EXMT is represented by the number of shares held by the Company valued at $.03 per share. The carrying value was reduced to $324,000 as a result of a dividend.
The company owns operating systems and software innovations through its wholly owned subsidiary Informed Logistics Technologies, LLC that was acquired on July 20, 2011 and capitalized at its estimated fair value of $6,000,000. The transaction required MYFT to issue shares equivalent to 32% of the company. This transaction required the company to increase the total authorized shares.
The software and systems will be amortized over 15 years and improvements will be capitalized and amortized over their respective useful lives. The net value of the intellectual property was calculated as follows:
On April 4, 2011, the Company paid off its $2,000,000 note to Myfreightworld.com, LLC that was due in a balloon payment by March 31, 2011 by issuing 9,659,259 Preferred Series B shares.
The company has a line of credit with a financial institution for $2,455,000 that is secured by all of the accounts receivable and other assets of the Company. The outstanding balance on the line at September 30, 2011 was $1,824,053.
At September 30, 2011, the company also has a bridge loan outstanding for $455,590.
The company has an authorized capitalization of 700,000,000 shares of common stock with a par value of $.001. At September 30, 2011 there were 304,891,586 shares issued and outstanding.
During the first quarter of 2011, the company issued 700,000 restricted common shares valued at $14,000 for financial consulting services performed during the fourth quarter of 2010. In addition there were 4,000,000 common shares issued as a result of the conversion of 400,000 shares of Preferred Series A stock.
During the second quarter of 2011, 4,000,000 shares of Preferred Series A stock were converted into 40,000,000 common shares and 1,200,000 shares of Preferred Series B stock were converted into 12,000,000 common shares.
During the third quarter of 2011, the company issued 700,000 restricted common shares valued at $14,000 for financial consulting services performed during the first quarter of the year. The company also issued 5,000,000 restricted common shares for business and marketing consulting valued at $50,000. Also during the third quarter of 2011, 500,000 shares of Preferred Series A stock were converted into 5,000,000 common shares and 1,000,000 shares of Preferred Series B stock were converted into 10,000,000 common shares.
During the third quarter the Board authorized an increase in the number of authorized shares of common stock and preferred stock from 700,000,000 shares and 40,000,000 shares, respectively, to 2,000,000,000 shares and 70,000,000 shares respectively. The authorization requires a majority vote of the existing shareholders. The company believes it has obtained the necessary votes required for authorization and will have the vote finalized in the coming weeks.
The company has an authorized capitalization of 40,000,000 shares of preferred stock with a par value of $.001. There are 16,000,000 authorized shares of Class A Preferred Stock and 24,000,000 authorized shares of Class B Preferred Stock.
Each share issued of Class A Preferred Stock is convertible at the will of the Holder into 10 common shares of the Company at any time prior to December 31, 2015. Each share of Class A Preferred Stock is entitled to vote 10 common shares on all matters brought before shareholders and is entitled to receive dividends of the company in the same ratio as its conversion feature.
The Class B Preferred Stock has the same rights and privileges as the Class A Preferred Stock except that it is not entitled to participate in stock dividends from spinoff transactions unless specific amendments are made to the designations.
During the first quarter of 2011, the Company set up a Class C Preferred Stock in order to raise $1.875 million to formally acquire the Intellectual Property that drives CMD. The Company is in the process of documenting the approval of over 50% of the Preferred Series A and B stockholders to authorize the new Series. It is anticipated that the new Series C will be junior to the Preferred A and B in liquidation preference and be convertible into common stock at a ratio of 20 common shares for 1 share of Series C Preferred with voting rights equal to its conversion ratio.
During the first quarter of 2011, the Company issued 1,000,000 shares of Preferred Series B stock and 2,299,337 shares of Preferred Series C stock to accredited investors for $659,867 in cash.
During the second quarter of 2011, the Company issued 4,085,000 shares of Preferred Series C stock to accredited investors for $817,600 in cash. Also 4,000,000 Preferred A shares and 1,200,000 shares of Preferred B were converted to common shares.
During the third quarter of 2011, the Company issued 12,135,336 shares of Preferred Series C stock to accredited investors for $1,213,534 in cash. Also 500,000 Preferred A shares and 1,000,000 shares of Preferred B were converted to common shares.
At September 30, 2011, the following Preferred shares were outstanding:
During the third quarter the Board authorized an increase in the number of authorized shares of common stock and preferred stock from 700,000,000 shares and 40,000,000 shares, respectively, to 2,000,000,000 shares and 70,000,000 shares respectively. The authorization requires a majority vote of the existing shareholders. The company believes it has obtained the necessary votes required for authorization and will have the vote finalized in the coming weeks.
During January of 2009, the Company, entered into a Letter of Intent (LOI) to acquire the Client Management Department division (CMD) of myFreightWorld.com, LLC domiciled in Kansas and on March 31, 2009 the Company completed the acquisition. At the time of the closing, the CEO of the Company, Michael Head, owned approximately 12% of myFreightWorld.com, LLC.
Prior to the closing, myFreightWorld.com, LLC transferred its CMD to a Nevada corporation named MyFreightWorld Carrier Management Inc. (MFCM). Additionally, a group of accredited investors agreed to invest through subscription agreements an additional $2 million cash. The Company received all of MFCM's outstanding voting stock in consideration for agreeing to issue 1,000,000 of its newly designated preferred class B shares and a note for $2 million to myFreightWorld.com, LLC. On April 4, 2011, the Company paid off its $2,000,000 note to Myfreightworld.com, LLC that was due in a balloon payment by March 31, 2011 by issuing 9,659,259 Preferred Series B shares.
On July 20, 2011, the company acquired Informed Logistics Technologies, LLC (ILT) and all of their issued and outstanding shares in the company. ILT is the founding information technology company that is the basis of all of the company's operating systems and software innovations. The transaction required MYFT to issue shares equivalent to 32% of the company. This transaction required the company to increase the total authorized shares. ILT has been fully consolidated into the Company's financial statements and has valued its software technology at its estimated fair value.
Contact:
myFreightWorld Investor Relations
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Datum: 08.11.2011 - 21:01 Uhr
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News-ID 85491
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