Domestic EBIT Increases 28.2% in Fourth Quarter and 24.0% for the
Full Year NEW YORK, March 5 /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 its fourth quarter and year ended
December 29, 2007. Summarized financial results for the quarter and
year ended December 29, 2007 are as follows (dollars in thousands):
(unaudited) 13 Weeks 13 Weeks % Year Year % Ended Ended Change
Ended Ended Change December December December December 29, 2007 30,
2006 29, 2007 30, 2006 Gross profit Domestic $5,650 5,447 3.7%
23,137 21,755 6.4% International 1,309 1,602 (18.3%) 5,635 6,869
(18.0%) Consolidated 6,959 7,049 (1.3%) 28,772 28,624 0.5%
Pro-forma income from operations before interest and taxes Domestic
1,244 970 28.2% 7,592 6,123 24.0% International (117) 284 (141.2%)
422 1,443 (70.8%) Consolidated $1,127(1) 1,254 (10.1%) 8,014(2)
7,566 5.9% (1) Excludes one-time acquisition related expenses
totaling $300,000 and a one-time correction of payroll accrual of
$77,000. (2) Excludes one-time acquisition related expenses
totaling $609,000, a one-time correction of payroll accrual of
$77,000, and a one-time, non-recurring severance expense of
$280,000. Fourth Quarter Financial Highlights -- Fourth quarter
domestic gross profit increased 3.7% to $5.7 million compared to
$5.4 million last year -- Domestic operating income, excluding
transaction costs, increased 28.2% to $1.2 million in 4Q07 --
Fourth quarter gross profit margin was stable at 36.6% compared
with 36.5% a year ago "We experienced strong growth in our domestic
operations in 2007, with gross profit and EBIT increasing 6.4% and
24.0%, respectively," said Tim Teagan Chief Executive Officer of
Clark Holdings. "Our overall performance in the fourth quarter was
solid despite the current economic climate and a negative
comparison due to our decision to discontinue our international
operations and focus resources on expanding our domestic business.
In 2008, we expect to build on the robust gross profit and EBIT
performance of our domestic business through the execution of an
accelerated growth strategy that includes acquisition opportunities
as well as numerous organic initiatives such as expanding our
geographic footprint and customer base, entering new industry
verticals, and creating additional service offerings." Fourth
Quarter Results The Clark Group reported gross revenues of $19.0
million in the fourth quarter of 2007, compared to gross revenues
of $19.3 million in the same period last year. Domestic gross
revenue was unchanged while international gross revenue declined as
Clark continued to reposition the international business for future
growth. Gross profit margin increased slightly to 36.6% from 36.5%
despite the impact of higher fuel costs, as the company was able to
capitalize on a softer freight environment. The domestic business
continued to drive growth at Clark, with domestic gross profit for
the fourth quarter of 2007 up 3.7% to $5.7 million compared to
domestic gross profit of $5.4 million in the same period last year.
International gross profit for the fourth quarter of 2007 was $1.3
million, an 18.3% decline compared to the same period last year.
Total gross revenue declined slightly to $19.0 million from $19.3
million. Fourth quarter operating income, excluding $300,000 of
transaction expenses and $77,000 of a one time correction to a
payroll accrual, declined 10.1% to $1.1 million in the fourth
quarter of 2007, compared with $1.3 million in the same period last
year. Domestic operating income increased 28.2% and offset much of
the decline in international operating income in the fourth
quarter. Overall corporate margin decreased to 16.2% from 17.8% due
to the decline in international gross margin. 2007 Full Year
Results Gross revenues were $75.8 million in 2007, compared to
revenues of $76.6 million in the same period last year. Domestic
gross revenue increased 2.3% while international gross revenue
declined 14.9% due to the closing of the company's UK operations
and the subsequent repositioning of the international business.
Full year gross profit for 2007 was $28.8 million, compared to
gross profit of $28.6 million in the same period last year.
Domestic gross profit for 2007 was $23.1 million, up 6.4% compared
to domestic gross profit of $21.8 million in 2006. International
gross profit for 2007 was $5.6 million, an 18.0% decline compared
to 2006. Pro-forma EBIT for 2007 was $8.0 million, an increase of
5.9% compared to $7.6 million in 2006. Pro-forma domestic EBIT for
2007 was $7.6 million, up 24.0% compared to $6.1 million in 2006.
Clark's domestic margins benefited from a softer overall
transportation market and stable shipper demand. Pro- forma
international EBIT for 2007 was $0.4 million, a 70.8% decline
compared to $1.4 million in 2006. 2008 Outlook Clark Holdings
expects 2008 EPS to be within the range of $0.32 to $0.42 per
diluted share. The guidance is based on our economic assumption for
2008 GDP growth in the range of -1% to +2% for 2008, continued
market share gains in the domestic market and some improvement in
international results by the third quarter. The outlook assumes
lower operating margins in 2008 from public company costs and
investments in various growth initiatives. The company expects its
effective tax rate to be approximately 40% in 2008. Warrant
Repurchase Program The Board of Directors announced that it has
established a warrant repurchase program and authorized a maximum
of $3 million for the purchase of Clark Holdings warrants.
Repurchases will be made from time to time in the open market and
through privately negotiated transactions, subject to market
conditions. No minimum number of warrants to be repurchased has
been fixed. There is no timeframe to complete the repurchase
program and it is expected that warrant repurchases will be paid
using existing and future cash generated by operations. 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
UNAUDITED (In Thousands) December 29 December 30, 2007 2006 ASSETS
(Unaudited) CURRENT ASSETS: Cash $1,472 $4,075 Accounts receivable
6,362 6,229 Other receivables 358 106 Prepaid expenses 947 952
Current assets of discontinued operations 437 784 Total current
assets 9,576 12,146 PROPERTY AND EQUIPMENT, net of accumulated
depreciation 1,413 1,705 Goodwill 10,871 10,871 Other Assets 11 46
Total assets $21,871 $24,768 LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: Accounts payable $6,785 $7,246 Accrued
expenses and other payables 1,442 2,098 Current liabilities of
discontinued operations 126 556 Total current liabilities 8,353
9,900 Commitments and Contingencies STOCKHOLDERS' EQUITY Voting
common stock par value $1, 2,500 shares authorized, 910 shares
issued at December 31, 2007 and December 31, 2006, respectively 1 1
Non-voting common stock par value $1, 22,500 shares authorized,
8,190 shares issued at December 31, 2007 and December 31, 2006,
respectively 8 8 Additional paid in capital 1,041 1,041 Retained
earnings 12,468 13,818 Total stockholders' equity 13,518 14,868
Total liabilities and stockholders' equity $21,871 $24,768 CLARK
HOLDINGS INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In
Thousands) 13 Weeks 13 Weeks 52 Weeks 52 Weeks Ended Ended Ended
Ended December December December December 29, 2007 30, 2006 29 2007
30, 2006 GROSS REVENUES $19,012 $19,332 $75,804 $76,603 FREIGHT
EXPENSE $(12,053) $(12,283) $(47,032) $(47,979) Gross Profit 6,959
7,049 28,772 28,624 SELLING, OPERATING AND ADMINISTRATIVE EXPENSES
$(6,209) $(5,795) $(21,724) $(21,058) Income from operations 750
1,254 7,048 7,566 INTEREST INCOME 9 34 32 71 INTEREST EXPENSE (1)
(4) (38) (30) Income before income taxes 758 1,284 7,042 7,607
INCOME TAX EXPENSE (48) (135) (48) (135) INCOME FROM CONTINUING
OPERATIONS 710 1,149 6,994 7,472 LOSS FROM DISCONTINUED OPERATIONS
(2) (128) (2,044) (435) NET INCOME $708 $1,021 $4,950 $7,037 Pro
Forma Reconciliation Income From Operations 750 1,254 7,048 7,566
Plus one-time acquisition expenses-3rd & 4th quarters 300 609
Plus one-time correction of payroll accrual 77 77 Plus one-time non
recurring severance expense-1st quarter - 280 Adjusted Income from
continuing operations before interest & taxes--Consolidated
1,127 1,254 8,014 7,566 DATASOURCE: Clark Holdings Inc. CONTACT:
Timothy Teagan, President, CEO, Clark Holdings Inc.,
+1-609-396-1100; or Investors, Jeff Majtyka or Brad Edwards, or
Media, Jenna Focarino, all of Brainerd Communicators, Inc.,
+1-212-986-6667, for Clark Holdings Inc.
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