Unique Logistics International Reports Financial Results for Fiscal Quarter ended November 30, 2022

NEW YORK, Jan. 17, 2023 /PRNewswire/ — Unique Logistics International, Inc. (OTCMKTS: UNQL) (“Unique” or the “Company”), a global logistics and freight forwarding company, today announced results for its second fiscal quarter ended November 30, 2022.

Financial Highlights

	For the Three Months Ended November 30				For the Six Months Ended November 30
	2022		2021		2022	2021
Revenue	nbsp;                      88.8		nbsp;                      405.4		nbsp;                      225.3	nbsp;                   595.2
Net Income	3.3		4.5		6.6	6.5
Adjusted EBITDA	nbsp;                        5.2		nbsp;                          8.9		nbsp;                        10.2	nbsp;                    12.3
	As of
	November 30, 2022		May 31, 2022
Total Assets	nbsp;                      93.5		nbsp;                      124.9
Total Stockholders’ Equity	nbsp;                      12.4		nbsp;                          5.8

• The current quarter and year to date reflect changes in market conditions in the post covid economy. The volume and price surge from the comparative period of 2021 has dissipated and the logistics market has returned to conditions more similar to 2019, prior to the covid pandemic.
• While revenue declined in comparison with the boom experienced in the corresponding period in the prior year, the Company successfully increased its margins on the business as reflected in net income declining by 27% for the quarter (and increasing 2% year to date) in comparison with revenue declining by 78% for the quarter (and 62% year to date). In relation to Revenue our Net Income margin increased from 1% to 4% in the current quarter compared to the corresponding quarter in the prior year and our adjusted EBITDA margin from 2% to 6% in the same period.

CEO Sunandan Ray commented on the financial results, “Market activity in the current quarter and year to date reflects the normalization of logistics following the boom in 2021 when markets returned post-Covid. There is still some short term concern about excessive inventory level held by retailers. However, the consistent pace of consumer demand we are seeing will soon require increased shipping to meet demand. The decline in shipping costs and volumes compared with 2021 has restored relative stability to the logistics market in terms of capacity supply and demand and this has helped with increased margin in our business. We are seeing encouraging signs on the sales front with an increase in our total number of customers and the increased shipping volumes of our top 25 customers.”

Business Outlook

Mr. Ray stated, “We continue to approach the remainder of the fiscal year optimistic about the Company’s progress and growth prospects. We remain confident in our sales efforts as our customer count has grown, and management will continue implementing processes to increase profitability and EBITDA by building on the value additions in our service and operational efficiency. Lastly, we are now close to completing the acquisitions we planned.”

About Unique Logistics International, Inc.

Unique Logistics International, Inc. (OTC Markets: 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.

For more information on UNQL and its businesses, please visit www.unique-usa.com.

About Non-GAAP Financial Measures (Adjusted EBITDA)

We define adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization and other non-recurring income or expenses.

Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplement to net income from operations as an indicator of operating performance. For this reason, we believe adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.

We believe that adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income from continuing operations and adjusted EBITDA has been provided in ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS as part of our form 10-Q.  Adjusted EBITDA should not be considered as an alternative to income from operations or net income from operations 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. We do 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 our condensed consolidated financial statements prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

Although we believe that the expectations reflected in these forward-looking statements such as the growth in revenues, along with the statements under the heading Business Outlook are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended May 31, 2022. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
(Unaudited)
		For the			For the				For the			For the
		Three Months Ended			Three Months Ended				Six Months Ended			Six Months Ended
		30-Nov-22			30-Nov-21				30-Nov-22			30-Nov-21
Revenues:
Airfreight services		$	21,581,667		$	275,070,204			$	51,515,704		$	327,232,845
Ocean freight and ocean services			47,930,347			115,421,970				136,185,077			238,722,728
Contract logistics			975,711			1,211,056				1,744,425			1,933,720
Customs brokerage and other services			18,349,508			13,727,459				35,900,899			27,313,256
Total revenues			88,837,233			405,430,689				225,346,105			595,202,549
Costs and operating expenses:
Airfreight services			19,950,949			269,019,226				47,500,790			320,645,001
Ocean freight and ocean services			41,145,915			107,173,955				123,083,775			223,761,697
Contract logistics			318,089			679,426				630,981			1,069,826
Customs brokerage and other services			16,731,183			12,393,603				33,375,926			25,318,695
Salaries and related costs			3,675,597			2,817,938				6,959,979			5,569,318
Professional fees			411,421			184,459				1,174,725			478,326
Rent and occupancy			613,572			489,770				1,142,682			969,979
Selling and promotion			461,578			2,659,490				562,432			3,692,618
Depreciation and amortization			201,966			194,875				402,640			388,672
Other			336,814			1,154,945				669,761			1,423,067
Total costs and operating expenses			83,847,084			396,767,687				215,503,691			583,317,199
Income from operations			4,990,149			8,663,002				9,842,414			11,858,350
Other income (expenses)
Interest expense			(972,300)			(1,881,201)				(2,329,985)			(3,198,480)
Amortization of debt discount			–			(391,035)				–			(776,515)
Gain on forgiveness of promissory note			–			–				–			358,236
Change in fair value of derivative liabilities			125,708			–				744,656			–
Gain on extinguishment of convertible note			–			–				–			780,050
Total other income (expenses)			(846,592)			(2,272,236)				(1,585,329)			(2,836,709)
Net income before income taxes			4,143,557			6,390,766				8,257,085			9,048,641
Income tax expense			871,860			1,902,541				1,664,047			2,537,000
Net income		$	3,271,697		$	4,488,225			$	6,593,038		$	6,511,641

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
		30-Nov-22				31-May-22
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	1,244,044			$	1,422,393
Accounts receivable, net			51,348,532				74,746,036
Contract assets			13,804,866				30,970,581
Other prepaid expenses and current assets			2,260,969				1,404,021
Total current assets			68,658,411				108,543,031
Property and equipment, net			223,757				188,889
Other long-term assets:
Goodwill			4,463,129				4,463,129
Intangible assets, net			6,984,131				7,337,704
Operating lease right-of-use assets, net			10,579,787				2,408,098
Deferred tax asset, net			987,648				942,748
Deposits			1,596,926				1,028,336
Total other long-term assets			24,611,621				16,180,015
Total assets		$	93,493,789			$	124,911,935
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	30,955,523			$	49,028,862
Accrued expenses and other current liabilities			4,898,633				5,666,159
Accrued freight			1,195,946				9,240,650
Contract Liabilities			–				468,209
Revolving credit facility			20,691,815				38,141,451
Current portion of notes payable, net of discount			304,167				608,333
Current portion of long-term debt due to related parties			349,631				301,308
Current portion of operating lease liability			1,796,663				912,618
Total current liabilities			60,192,378				104,367,590
Other long-term liabilities			141,330				282,666
Long-term-debt due to related parties, net of current portion			150,655				397,968
Derivative liabilities			11,693,338				12,437,994
Operating lease liability, net of current portion			8,891,206				1,593,873
Total long-term liabilities			20,876,529				14,712,501
Total liabilities			81,068,907				119,080,091
Commitments and contingencies			–				–
Stockholders’ Equity:
Preferred Stock, $0.001 par value: 5,000,000 shares authorized
Series A Convertible Preferred stock, $0.001 par value; 120,065 and 130,000, issued and outstanding as of November 30, 2022 and May 31, 2022, respectively. Liquidation preference $120 on November 30, 2022.			120				130
Series B Convertible Preferred stock, $0.001 par value; 820,800 shares issued and outstanding as of November 30, 2022 and May 31, 2022. Liquidation preference $821 on November 30, 2022.			821				821
Series C Convertible Preferred stock, $0.001 par value; 195 shares, issued and outstanding as of November 30, 2022 and May 31, 2022 Liquidation preference $30.1 million on November 30, 2022			–				–
Series D Convertible Preferred stock, $0.001 par value; 180 and 187, issued and outstanding as of November 30, 2022 and May 31, 2022, respectively. Liquidation preference $28.3 million on November 30, 2022			–				–
Preferred stock, value			–				–
Common stock $0.001 par value; 800,000,000 shares authorized.			799,142				687,197
799,141,770 and 687,196,478 common shares issued and outstanding as of November 30, 2022 and May 31, 2022, respectively
Additional paid-in capital			180,220				292,155
Retained earnings			11,444,579				4,851,541
Total Stockholders’ Equity			12,424,882				5,831,844
Total Liabilities and Stockholders’ Equity		$	93,493,789			$	124,911,935

 

UNIQUE LOGISTICS INTERNATIONAL, INC.
Adjusted EBITDA
		For the				For the
		Three Months Ended				Three Months ended
		November 30, 2022				November 30, 2021
Net income available to common shareholders		$	3,271,697			$	4,488,225
Add Back:
Income tax expense			871,860				1,902,541
Depreciation and amortization			201,966				194,875
Change in fair value of derivative liability			(125,708)				–
Interest expense (including accretion of debt discount)			972,300				2,272,236
Adjusted EBITDA		$	5,192,115			$	8,857,877
		For the				For the
		Six Months Ended				Six Months Ended
		November 30, 2022				November 30, 2021
Net income available to common shareholders		$	6,593,038			$	6,511,641
Add Back:
Income tax expense			1,664,047				2,537,000
Depreciation and amortization			402,640				388,672
Gain on forgiveness of promissory notes			–				(358,236)
Gain on extinguishment of convertible notes			–				(780,050)
Change in fair value of derivative liability			(744,656)				–
Interest expense (including accretion of debt discount)			2,329,985				3,974,995
Adjusted EBITDA		$	10,245,054			$	12,274,022

 

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