CD&L Reports Revenue Growth of 11.3% in First Half 2005

- First Half Net Income Increases by $877,000 - 


SOUTH HACKENSACK, N.J., Aug. 16  /PRNewswire-FirstCall/ -- CD&L, Inc. (AMEX:CDV), announced first half 2005 revenues of $106.6 million, an increase of $10.8 million or 11.3% compared to the same period last year. At the same time, reported first half 2005 net income was $1,054,000 representing an increase of $877,000 over the first six months of 2004, which included a non- cash $627,000 pre-tax write-off related to the April 14, 2004 financial restructuring.

Russ Reardon, the Company's CFO stated that "as a result of the increased revenue and improved operating efficiencies, the 2005 first half gross profit increased by $3.2 million to $21.1 million.  As a percentage of revenue, gross profit increased to 19.9% from 18.8% in the same period last year.  For the last three months, gross profit was 20.0% of reported revenue versus 19.0% in the second quarter of 2004.

Second quarter 2005 revenue increased by $4.9 million, or 10.1% to $54.2 million from $49.3 million for the three months ended June 30, 2004.  Net income for the three months ended June 30, 2005 was $626,000 or $.07 per basic share as compared to net income of $8,000 or effectively $.00 per basic share for the same 2004 period. The 2004 period included the non-cash write-off related to the restructuring.  For the first six months of 2005, net income was $.11 per basic share compared to $.02 per basic share for the first half of 2004.

CD&L, Inc. operates from 94 locations in 22 states, including operations in 27 customer owned facilities, providing last mile delivery solutions to various industries.  The company has over 1,500 employees and utilizes approximately 2,900 independent contractor drivers to provide time-sensitive delivery services to thousands of customers across the country.

Certain statements in this news 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 the Company's improved operating performance, business development program, and increased revenues and earnings. Statements regarding future developments are based upon 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 the Company's operating performance will not improve, or that its business development program will be unsuccessful, or that revenues or earnings will decrease as well as other risks specified in the Company's SEC filings.

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

                                                  June 30,      December, 31
                                                    2005            2004
                                                 (Unaudited)

                      ASSETS

  CURRENT ASSETS:
    Cash and cash equivalents                        $1,826           $617
    Accounts receivable, net                         22,375         21,548
    Prepaid expenses and other
     current assets                                   3,497          4,854
      Total current assets                           27,698         27,019

  EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net           1,663          1,627
  GOODWILL, net                                      11,531         11,531
  INTANGIBLE ASSETS AND DEFERRED
   FINANCING COSTS, net                               1,521          1,737
  OTHER ASSETS                                        1,262            828
      Total assets                                  $43,675        $42,742

          LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Short-term borrowings                            $3,494         $4,809
    Current maturities of long-term  debt               505            487
    Accounts payable, accrued
     liabilities and bank overdrafts                 14,977         13,660
      Total current liabilities                      18,976         18,956

  LONG-TERM DEBT, net of current maturities           9,556          9,812

  OTHER LONG-TERM LIABILITIES                         1,485          1,370
      Total liabilities                              30,017         30,138

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
   Preferred stock, $.001 par value;
    2,000,000 shares authorized; 393,701 shares
    issued at June 30, 2005
    and December 31, 2004                             4,000          4,000
   Common stock, $.001 par value;
    30,000,000 shares
    authorized; 9,385,678 shares
    issued at June 30, 2005 and
    December 31, 2004                                     9              9
   Additional paid-in capital                        14,320         14,320
   Treasury stock, 29,367 shares at cost               (162)          (162)
   Accumulated deficit                               (4,509)        (5,563)
      Total stockholders' equity                     13,658         12,604
      Total liabilities and stockholders' equity    $43,675        $42,742



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

                                For the Three Months   For the Six Months
                                       Ended                 Ended
                                      June 30,              June 30,
                                 2005       2004        2005        2004

  Revenue                      $54,207     $49,257   $106,562     $95,739


  Cost of revenue               43,367     39,894      85,414      77,779

  Gross profit                  10,840      9,363      21,148      17,960

  Costs and Expenses:

  Selling, general and
   administrative expenses       9,088      8,000      17,968      15,535
  Depreciation and
   amortization                    277        274         550         494

  Other (income) expense, net       (9)       623          (9)        612

  Interest expense                 366        453         756       1,024

  Total Costs and Expenses       9,722      9,350      19,265      17,665

  Income before provision for
   income taxes                  1,118         13       1,883         295

  Provision for income taxes       492          5         829         118

    Net income                    $626         $8      $1,054        $177

  Net income per share:
    Basic                         $.07       $.00        $.11        $.02
    Diluted                       $.04       $.00        $.06        $.02

  Basic weighted average
   common shares outstanding     9,356      7,659       9,356       7,659

  Diluted weighted
  average common shares
  outstanding                   20,248     12,570      20,251      10,404




                       CD&L, INC. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                               (Unaudited)

                                                    For the Six Months Ended
                                                              June 30,
                                                          2005        2004

  CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                            $1,054        $177
  Adjustments to reconcile net income to
   net cash provided by operating activities -
    Gain on disposal of equipment and
     leasehold improvement                                  (5)         (6)
    Depreciation, amortization and deferred
     financing amortization                                606         621
    Deferred financing charge/OID write-off                  -         628
    Changes in operating assets and liabilities
     (Increase) decrease in -
    Accounts receivable, net                              (827)       (817)
    Prepaid expenses and other current assets            1,357       2,075
    Other assets                                          (434)       (350)
     (Decrease) increase in -
   Accounts payable, accrued liabilities and
    bank overdrafts                                      1,317        (300)
   Other long-term liabilities                             115         (18)
    Net cash provided by operating activities            3,183       2,010

  CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from sale of equipment and leasehold
    improvements                                            22           3
   Additions to equipment and leasehold improvements      (443)       (211)
    Net cash used in investing activities                 (421)       (208)

  CASH FLOWS FROM FINANCING ACTIVITIES:
     Repayments of short-term borrowings, net of
      proceeds                                          (1,315)       (547)
     Repayments of long-term debt                         (238)     (1,205)
     Proceeds from long-term debt                            -       1,000
     Deferred financing costs                                -        (449)
      Net cash used in financing activities             (1,553)     (1,201)

      Net increase in cash and cash equivalents          1,209         601

  CASH AND CASH EQUIVALENTS, beginning of period           617       1,697

  CASH AND CASH EQUIVALENTS, end of period              $1,826      $2,298


DATASOURCE: CD&L, Inc.



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

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