CD&L Reports Full Year 2005

* Full Year Revenue Up by 12.2%/Net Income Up 58% * 


SOUTH HACKENSACK, N.J., April 7  /PRNewswire-FirstCall/ -- CD&L, Inc. (AMEX:CDV), the leading U.S. provider of same day customized time critical delivery and logistics services announced its 2005 full year results.

The Company reported full year 2005 revenue of $221.9 million, an increase of $24.2 million, or a 12.2% increase over the twelve months ended December 31, 2004.  At the same time, the Company's gross profit for full year 2005 improved to 19.6% versus 18.9% in 2004.

The Company's net income for the twelve months ended December 31, 2005 was $2.5 million, or $.26 per basic share versus full year 2004 of $1.6 million, or $.20 per basic share.  On a fully diluted basis, the net income per diluted share for the full year 2005 was $.15 compared to $.13 per fully diluted share in 2004.

Bill Brannan, the Company's COO and Michael Brooks, the Company's Group President, jointly stated that, "Our CD&L team continues to be pleased with our strong market share growth across all of our U.S. markets.  It is anticipated that given the Company's organic growth with its current Fortune 500 customer base as well as new accounts being added that significant revenue improvement will continue in 2006."

The Company's Chairman and CEO, Al Van Ness, said, "It is very rewarding to witness the Company's revenue achievements coupled with both better gross margins and net income improvement at the time the Company celebrates its ten year anniversary."

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
                       CONSOLIDATED BALANCE SHEETS
             (in thousands, except share and per share data)


                        ASSETS
                                                            December 31,
                                                          2005        2004
  CURRENT ASSETS:
   Cash and cash equivalents                              $837        $617
   Accounts receivable, less allowance for
    doubtful accounts of $542 and $1,330 in
    2005 and 2004, respectively                         26,376      21,548
      Deferred income taxes                                157       1,248
   Prepaid expenses and other current assets             3,891       3,606
     Total current assets                               31,261      27,019

  EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net              3,438       1,946
  GOODWILL, net                                         11,531      11,531
  OTHER INTANGIBLE ASSETS AND DEFERRED
   FINANCING COSTS, net                                  1,185       1,737
  SECURITY DEPOSITS                                        932         509
     Total assets                                      $48,347     $42,742


            LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES:
   Short-term borrowings                                $8,921      $4,809
   Current maturities of long-term debt                    552         487
   Accounts payable and bank overdrafts                  6,946       4,200
   Accrued expenses and other current liabilities        8,477       9,460
     Total current liabilities                          24,896      18,956


  LONG-TERM DEBT, net of current maturities              5,292       9,812
  DEFERRED INCOME TAXES                                  1,361       1,100
  OTHER LONG-TERM LIABILITIES                              414         270
     Total liabilities                                  31,963      30,138

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
   Preferred stock, $.001 par value; 2,000,000
    shares authorized; 393,701 shares issued
    and outstanding in 2005 and 2004                     4,000       4,000
   Common stock, $.001 par value; 30,000,000 shares
    authorized, 10,041,846 and 9,385,678 shares
    issued in 2005 and 2004, respectively                   10           9
   Additional paid-in capital                           15,592      14,320
   Treasury stock, 29,367 shares at cost                  (162)       (162)
   Accumulated deficit                                  (3,056)     (5,563)
     Total stockholders' equity                         16,384      12,604
       Total liabilities and stockholders' equity      $48,347     $42,742


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


                                           For the Years Ended December 31,
                                            2005        2004          2003

  Revenue                               $221,883     $197,724     $166,083
  Cost of revenue (exclusive of
   depreciation and amortization)        178,292      160,270      133,348

   Gross profit                           43,591       37,454       32,735


  Selling, general and administrative
   expenses                               36,809       31,105       28,136
  Depreciation and amortization            1,115        1,051          756
  Other (income) expense, net                (31)         601       (1,496)
  Interest expense                         1,529        1,859        2,534
                                          39,422       34,616       29,930

  Income before provision for income
   taxes                                   4,169        2,838        2,805


  Provision for income taxes               1,662        1,255        1,122
    Net income                            $2,507       $1,583       $1,683

  Net income per share:
    Basic                                   $.26         $.20         $.22
    Diluted                                 $.15         $.13         $.21

  Basic weighted average common shares
   outstanding                             9,465        7,737        7,659
  Diluted weighted average common shares
   outstanding                            20,082       14,513        8,174


DATASOURCE: CD&L, Inc.



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

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