CD&L Reports First Quarter Results

** Revenue Increases 15% ** 


SOUTH HACKENSACK, N.J., May 16  /PRNewswire-FirstCall/ -- CD&L, Inc. (AMEX:CDV), the leading provider of time critical delivery and logistics services in the United States announced 2006 1st Quarter revenues of $60.4 million, an increase of $8.1 million or 15.4% above that reported revenue for the first three months of 2005.  During the first Quarter of this year, the Company expanded operations in on the West Coast and Pennsylvania and Tennessee, which contributed to the above revenue growth. Net income for the first three months of 2006 was $189,000, or $.02 per basic common share, compared to net income for the same period in 2005 of $428,000 or $.05 per basic common share.  On a fully diluted basis, the net income per diluted share for the first three months of 2006 was $.01 compared to $.03 per diluted share in 2005 first three months.

The Company's gross margin declined to 18.5% of revenue in the first three months of 2006 as compared to 19.7% for the same time period in 2005.  The reduction in the Company's gross profit margin as a percentage of revenue was due primarily to new business start-up costs, continued rate pressures, and fuel costs.  Mr. Brannan, the Company's COO, commented that, "The Company's pricing decisions in order to extend and renew existing customers as well as attract new business have not kept pace with the upward pressure in the Company's delivery costs."

At the same time, the Company's general and administrative expenses as a percent of revenue declined in the 2006 first quarter compared to the same time period in 2005, although these expenses were $1.3 million higher than last year's quarter.  Michael Brooks, the Company's Group President, commented that, "The increase of revenue both from existing and new customers in new terminal locations and certain same store terminals resulted in increased Company overheads, premises costs, computer costs and certain legal costs incurred as a result of certain business initiatives."

CD&L, Inc. operates from 114 locations in 23 states, including operations in 28 customer owned facilities, providing last mile delivery solutions to various industries.  The company has over 1,500 employees and utilizes approximately 3,000 independent contractor drivers to provide time-sensitive delivery services to thousands of customers across the country.

Certain statements in this release may be "forward-looking statements" within the meaning of Section 27A of the Securities and Exchange Act of 1933. These forward-looking statements include comments on projected revenue growth and improved margins and net income. Statements regarding future developments are based on current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements. Potential risks include the risk that CD&L will be unable to generate revenue growth, better profit margins, or improved net income. Certain of such risks and uncertainties are more fully described in the Company's filings with the SEC, including the risk factors in its Form 10- K for the year ended December 31, 2005.

                       CD&L, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                 (In thousands, except share information)

                                                  March 31,   December 31,
                                                      2006           2005
                                                 (Unaudited)

  ASSETS

  CURRENT ASSETS:
   Cash and cash equivalents                          $777           $837
   Accounts receivable, net                         26,991         26,376
   Prepaid expenses and other current assets         3,329          4,048
    Total current assets                            31,097         31,261

  EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net          3,449          3,438
  GOODWILL, net                                     11,531         11,531
  OTHER INTANGIBLE ASSETS AND DEFERRED
   FINANCING COSTS, net                              1,176          1,185
  OTHER ASSETS                                         945            932
   Total assets                                    $48,198        $48,347

  LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
   Short-term borrowings                            $8,829         $8,921
   Current maturities of long-term debt                532            552
   Accounts payable, accrued liabilities and
    bank overdrafts                                 15,247         15,423
     Total current liabilities                      24,608         24,896

  LONG-TERM DEBT, net of current maturities          5,154          5,292
  OTHER LONG-TERM LIABILITIES                        1,766          1,775
   Total liabilities                                31,528         31,963

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
   Preferred stock, $.001 par value;
   2,000,000 shares authorized;
   393,701 shares issued and outstanding at
   March 31, 2006 and December 31,2005               4,000          4,000
  Common stock, $.001 par value; 30,000,000 shares
   authorized; 10,046,846 and 10,041,846 shares
   issued at March 31, 2006 and
   December 31, 2005, respectively                      10             10
  Additional paid-in capital                        15,689         15,592
  Treasury stock, 29,367 shares at cost               (162)          (162)
  Accumulated deficit                               (2,867)        (3,056)
   Total stockholders' equity                       16,670         16,384
   Total liabilities and stockholders' equity      $48,198        $48,347


                       CD&L, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                               (Unaudited)


                                                  For the Three Months Ended
                                                            March 31,
                                                      2006           2005

  Revenue                                          $60,439        $52,355

  Cost of revenue                                   49,233         42,046

   Gross profit                                     11,206         10,309

  Costs and Expenses:

  Selling, general, and administrative expenses     10,192          8,880
  Depreciation and amortization                        318            274
  Other income, net                                    (16)            (1)
  Interest expense                                     356            391

   Total Costs and Expenses                         10,850          9,544

  Income before provision for income taxes             356            765

  Provision for income taxes                           167            337

   Net income                                         $189           $428

  Net income per share:
   Basic                                              $.02           $.05
   Diluted                                            $.01           $.03

  Basic weighted average common shares
   outstanding                                      10,014          9,356

  Diluted weighted average common shares
   outstanding                                      19,775         20,253


DATASOURCE: CD&L, Inc.



CONTACT:  Russell Reardon, CFO of CD&L, Inc., [phone]

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