CD&L Reports Second Quarter and First Half 2004 Results

CD&L Reports Second Quarter and First Half 2004 Results
* Year over Year Revenue Up By 18% * 


SOUTH HACKENSACK, N.J., Aug. 17  /PRNewswire-FirstCall/ -- CD&L, Inc.
(AMEX:CDV), announced first half 2004 revenues of $95.7 million, an increase of
$14.6 million compared to the same period last year. "The revenue growth
reflects the successful launch of the Company's nationwide business development
program which has helped to expand into new markets with its existing customer
base," said Bill Brannan, the Company's President and COO.

Separately, Russ Reardon, the Company's CFO stated that "the 2004 second
quarter results were reduced by a non-cash $627,000 pre-tax write-off related
to the previously announced April 14, 2004 financial restructuring.  The $4.0
million management-led cash infusion, which encouraged the Company's senior
subordinated note holder to convert $4.0 million of debt to preferred shares
and to modify the terms and conditions of the original senior subordinated
note, required the Company to take this pre-tax non-cash charge for the write
off of the original issue discount and deferred financing costs created by the
original senior subordination transaction in early 1999."

After the aforementioned write off, the Company reported net income of
$177,000, or $.02 per basic share for the six months ended June 30, 2004
compared to net income in the 2003 comparable period of $.11 per basic share
which included a pre-tax one-time benefit of approximately $1,000,000 for
forgiveness of a prior seller note.

For the three months ended June 30, 2004, revenue increased by $8.4 million, or
20.5%, to $49.3 million from $40.9 million for the three months ended June 30,
2003.  Including the   non-cash write-off, the Company reported net income of
$8,000 or $.00 per basic share for the three months ended June 30, 2004, as
compared to $.03 per basic share in for the comparable period in 2003.

CD&L, Inc. operates from 64 locations in 22 states providing last mile delivery
solutions to various industries.  The company has over 1,400 employees and
utilizes approximately 2,700 independent contract drivers to provide
time-sensitive delivery services to thousands of customers across the country.

Certain statements in this new release may be "forward-looking statements"
within the meaning of Section 27A of the Securities and Exchange Act of 1933.
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.

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

                                                    June 30,    December 31,
                                                      2004          2003
                                                  (Unaudited)     (Note 1)
                      ASSETS
  CURRENT ASSETS:
    Cash and cash equivalents                        $2,298        $1,697
    Accounts receivable, net                         19,603        18,786
    Prepaid expenses and other current assets         1,993         4,068
      Total current assets                           23,894        24,551

  EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net           1,300         1,446
  GOODWILL                                           11,531        11,531
  INTANGIBLE ASSETS AND
   DEFERRED FINANCING COSTS, net                      1,845           437
  OTHER ASSETS                                        1,110         2,387
      Total assets                                  $39,680       $40,352

       LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES:
    Short-term borrowings                            $5,220        $5,767
    Current maturities of long-term debt                471         2,585
    Accounts payable, accrued liabilities
     and bank overdrafts                             14,092        14,392
      Total current liabilities                      19,783        22,744

  LONG-TERM DEBT, net of current maturities          10,070        11,785
  OTHER LONG-TERM LIABILITIES                           222           240
      Total liabilities                              30,075        34,769

  COMMITMENTS AND CONTINGENCIES

  STOCKHOLDERS' EQUITY:
   Preferred stock, $.001 par value;
    2,000,000 shares authorized;
    393,701 shares issued and outstanding             4,000             -

   Common stock, $.001 par value;
    30,000,000 shares authorized;
    7,688,027 shares issued at
    June 30, 2004 and December 31, 2003                   8             8

   Additional paid-in capital                        12,728        12,883
   Treasury stock, 29,367 shares at cost               (162)         (162)
   Accumulated deficit                               (6,969)       (7,146)
      Total stockholders' equity                      9,605         5,583
      Total liabilities and stockholders' equity    $39,680       $40,352



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

                                      For the                 For the
                                Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                  2004       2003         2004       2003

  Revenue                       $49,257    $40,887      $95,739    $81,194

  Cost of revenue                39,894     33,149       77,779     66,192

    Gross profit                  9,363      7,738       17,960     15,002

  Costs and Expenses:

  Selling, general and
   administrative expenses        8,000      6,607       15,535     13,135
  Depreciation and
   amortization                     274        189          494        406
  Other expense (income), net       623        (65)         612     (1,166)
  Interest expense                  453        637        1,024      1,247

  Total Costs and Expenses        9,350      7,368       17,665     13,622

  Income before provision
   for income taxes                 370      1,380           13        295

  Provision for income taxes          5        148          118        552

    Net income                       $8       $222         $177       $828

  Net income per share:
    Basic                          $.00       $.03         $.02       $.11
    Diluted                        $.00       $.03         $.01       $.10

  Basic weighted average
   common shares outstanding      7,659      7,659        7,659      7,659
  Diluted weighted average
   common shares outstanding     12,570      8,165       10,404      8,167


DATASOURCE: CD&L, Inc.



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



Web site:  http://www.cdl.net/ 

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