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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Janel Corporation (PK) | USOTC:JANL | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 42.00 | 30.00 | 40.00 | 17 | 21:20:17 |
Nevada
|
86-1005291
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
80 Eighth Avenue | ||
New York, New York
|
10011
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading symbols(s)
|
Name of each exchange
on which registered
|
||
None
|
None
|
None
|
Large accelerated filer ☐
|
Accelerated filer
|
☐ |
Non-accelerated filer ☐
|
Smaller reporting company
|
☒ |
Emerging growth company
|
☐ |
Page
|
|||
3
|
|||
Item 1.
|
3
|
||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
Item 2.
|
18
|
||
Item 4.
|
26
|
||
27
|
|||
Item 1.
|
27
|
||
Item 1A.
|
27
|
||
Item 2.
|
27
|
||
Item 6.
|
27
|
||
28
|
ITEM 1. |
FINANCIAL STATEMENTS
|
March 31,
2023 |
September 30,
2022
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash
|
$
|
2,313
|
$
|
6,591
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
30,342
|
57,077
|
||||||
Inventory, net
|
5,237
|
4,802
|
||||||
Prepaid expenses and other current assets
|
5,152
|
3,423
|
||||||
Total current assets
|
43,044
|
71,893
|
||||||
Property and Equipment, net
|
5,005
|
5,044
|
||||||
Other Assets:
|
||||||||
Intangible assets, net
|
24,048
|
22,420
|
||||||
Goodwill
|
19,766
|
18,622
|
||||||
Investment in marketable securities at fair value | 1,861 | 2,371 | ||||||
Operating lease right of use asset
|
5,177
|
5,660
|
||||||
Security deposits and other long-term assets
|
638
|
522
|
||||||
Total other assets
|
51,490
|
49,595
|
||||||
Total assets
|
$
|
99,539
|
$
|
126,532
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Lines of credit
|
$
|
18,732
|
$
|
26,396
|
||||
Accounts payable - trade
|
27,708
|
44,960
|
||||||
Accrued expenses and other current liabilities
|
6,906
|
7,194
|
||||||
Dividends payable
|
1,886
|
1,745
|
||||||
Current portion of earnout
|
1,324
|
1,664
|
||||||
Current portion of long-term debt
|
641
|
639
|
||||||
Current portion of deferred acquisition payments
|
191
|
188
|
||||||
Current portion of subordinated promissory note-related party
|
788
|
425
|
||||||
Current portion of operating lease liabilities
|
1,700
|
1,825
|
||||||
Total current liabilities
|
59,876
|
85,036
|
||||||
Other Liabilities:
|
||||||||
Long-term debt
|
6,801
|
7,519
|
||||||
Long-term portion of earnout
|
2,163
|
2,916
|
||||||
Subordinated promissory notes-related party
|
4,808
|
5,382
|
||||||
Mandatorily redeemable non-controlling interest
|
430
|
430
|
||||||
Deferred income taxes
|
2,517
|
2,541
|
||||||
Long-term operating lease liabilities
|
3,678
|
4,001
|
||||||
Other liabilities
|
399
|
380
|
||||||
Total other liabilities
|
20,796
|
23,169
|
||||||
Total liabilities
|
80,672
|
108,205
|
||||||
Stockholders’ Equity:
|
||||||||
Preferred Stock, $0.001 par value; 100,000 shares authorized
|
||||||||
Series C 30,000 shares authorized and 11,368 shares issued and outstanding at March 31, 2023 and September 30, 2022, liquidation value of $7,570 and $7,429 at March 31,
2023 and September 30, 2022, respectively
|
—
|
—
|
||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 1,206,354
issued and 1,186,354 outstanding as of March 31, 2023 and September 30, 2022, respectively
|
1
|
1
|
||||||
Paid-in capital
|
17,146
|
17,184
|
||||||
Common treasury stock, at cost, 20,000 shares
|
(240
|
)
|
(240
|
)
|
||||
Accumulated earnings
|
1,960
|
1,382
|
||||||
Total stockholders’ equity
|
18,867
|
18,327
|
||||||
Total liabilities and stockholders’ equity
|
$
|
99,539
|
$
|
126,532
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenue
|
$
|
45,378
|
$
|
80,851
|
$
|
102,422
|
$
|
164,165
|
||||||||
Forwarding expenses and cost of revenue
|
31,629
|
64,342
|
73,756
|
132,167
|
||||||||||||
Gross profit
|
13,749
|
16,509
|
28,666
|
31,998
|
||||||||||||
Cost and Expenses:
|
||||||||||||||||
Selling, general and administrative
|
12,302
|
13,875
|
25,313
|
26,213
|
||||||||||||
Amortization of intangible assets
|
543
|
487
|
1,069
|
996
|
||||||||||||
Total Costs and Expenses
|
12,845
|
14,362
|
26,382
|
27,209
|
||||||||||||
Income from Operations
|
904
|
2,147
|
2,284
|
4,789
|
||||||||||||
Other Items:
|
||||||||||||||||
Interest expense
|
(474
|
)
|
(269
|
)
|
(948
|
)
|
(548
|
)
|
||||||||
Unrealized loss on marketable securities
|
(111
|
)
|
—
|
(510 | ) | — | ||||||||||
Income Before Income Taxes
|
319
|
1,878
|
826
|
4,241
|
||||||||||||
Income tax expense
|
(101
|
)
|
(605
|
)
|
(248
|
)
|
(1,280
|
)
|
||||||||
Net Income
|
218
|
1,273
|
578
|
2,961
|
||||||||||||
Preferred stock dividends
|
(70
|
)
|
(233
|
)
|
(142
|
)
|
(444
|
)
|
||||||||
Non-controlling interest dividends
|
— | (61 | ) | — | (61 | ) | ||||||||||
Net Income Available to Common Stockholders
|
$
|
148
|
$
|
979
|
$
|
436
|
$
|
2,456
|
||||||||
Net income per share
|
||||||||||||||||
Basic
|
$
|
0.18
|
$
|
1.30
|
$
|
0.49
|
$
|
3.06
|
||||||||
Diluted
|
$
|
0.18
|
$
|
1.23
|
$
|
0.48
|
$
|
2.89
|
||||||||
Net income per share attributable to common stockholders:
|
||||||||||||||||
Basic
|
$
|
0.12
|
$
|
1.00
|
$
|
0.37
|
$
|
2.54
|
||||||||
Diluted
|
$
|
0.12
|
$
|
0.95
|
$
|
0.36
|
$
|
2.40
|
||||||||
Weighted average number of shares outstanding:
|
||||||||||||||||
Basic
|
1,186.4
|
973.9
|
1,186.4
|
966.5
|
||||||||||||
Diluted
|
1,206.1
|
1,031.2
|
1,207.2
|
1,024.5
|
PREFERRED STOCK
|
COMMON STOCK
|
PAID-IN CAPITAL
|
COMMON
TREASURY STOCK
|
ACCUMULATED EARNINGS
|
TOTAL EQUITY
|
||||||||||||||||||||||||||||||
SHARES
|
$ |
SHARES
|
$ |
$ |
SHARES
|
$ |
$ |
$ |
|||||||||||||||||||||||||||
Balance - September 30, 2022
|
11,368
|
—
|
1,206,354
|
$
|
1
|
$
|
17,184
|
20,000
|
$
|
(240
|
)
|
$
|
1,382
|
$
|
18,327
|
||||||||||||||||||||
Net Income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
360
|
360
|
||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
—
|
—
|
—
|
(72
|
)
|
—
|
—
|
—
|
(72
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
—
|
—
|
—
|
—
|
51
|
—
|
—
|
—
|
51
|
||||||||||||||||||||||||||
Balance - December 31, 2022
|
11,368
|
—
|
1,206,354
|
1
|
17,163
|
20,000
|
(240
|
)
|
1,742
|
18,666
|
|||||||||||||||||||||||||
Net Income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
218
|
218
|
||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
—
|
—
|
—
|
(70
|
)
|
—
|
—
|
—
|
(70
|
)
|
||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 53 | — | — | — | 53 | ||||||||||||||||||||||||||
Balance - March 31, 2023
|
11,368
|
$ |
—
|
1,206,354
|
$
|
1
|
$
|
17,146
|
20,000
|
$
|
(240
|
)
|
$
|
1,960
|
$
|
18,867
|
PREFERRED STOCK
|
COMMON STOCK
|
PAID-IN CAPITAL
|
COMMON
TREASURY STOCK
|
ACCUMULATED EARNINGS
|
TOTAL EQUITY
|
||||||||||||||||||||||||||||||
SHARES
|
$ |
SHARES
|
$ |
$ |
SHARES
|
$ |
$ |
$
|
|||||||||||||||||||||||||||
Balance - September 30, 2021
|
20,991
|
—
|
962,207
|
$
|
1
|
$
|
14,838
|
20,000
|
$
|
(240
|
)
|
$
|
3,520
|
$
|
18,119
|
||||||||||||||||||||
Net Income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1,688
|
1,688
|
||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
—
|
—
|
—
|
(211
|
)
|
—
|
—
|
—
|
(211
|
)
|
||||||||||||||||||||||||
Stock-based compensation
|
—
|
—
|
—
|
—
|
29
|
—
|
—
|
—
|
29
|
||||||||||||||||||||||||||
Stock options exercise
|
—
|
—
|
17,500
|
—
|
85
|
—
|
—
|
—
|
85
|
||||||||||||||||||||||||||
Balance - December 31, 2021
|
20,991
|
—
|
979,707
|
1
|
14,741
|
20,000
|
(240
|
)
|
5,208
|
19,710
|
|||||||||||||||||||||||||
Net Income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1,273
|
1,273
|
||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
—
|
—
|
—
|
(233
|
)
|
—
|
—
|
—
|
(233
|
)
|
||||||||||||||||||||||||
Dividend to non-controlling interest
|
— | — | — | — | (61 | ) | — | — | — | (61 | ) | ||||||||||||||||||||||||
Preferred C shares purchased |
(4,687 | ) | — | — | — | (1,731 | ) | — | — | — | (1,731 | ) | |||||||||||||||||||||||
Preferred C shares converted |
(4,905 | ) | — | 65,205 | — | — | — | — | — | — | |||||||||||||||||||||||||
Preferred B shares converted |
(31 | ) | — | 306 | — | — | — | — | — | — | |||||||||||||||||||||||||
Stock based compensation
|
—
|
—
|
15,000
|
—
|
718
|
—
|
—
|
—
|
718
|
||||||||||||||||||||||||||
Stock options exercise |
— | — | 17,500 | — | 76 | — | — | — | 76 | ||||||||||||||||||||||||||
Balance - March 31, 2022
|
11,368
|
$
|
—
|
1,077,718
|
$
|
1
|
$
|
13,510
|
20,000
|
$
|
(240
|
)
|
$
|
6,481
|
$
|
19,752
|
Six Months Ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
578
|
$
|
2,961
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
(Recovery of) provision for uncollectible accounts
|
(237
|
)
|
417
|
|||||
Depreciation
|
243
|
225
|
||||||
Deferred income tax provision
|
(23
|
)
|
76
|
|||||
Amortization of intangible assets
|
1,069
|
996
|
||||||
Amortization of acquired inventory valuation
|
217
|
263
|
||||||
Amortization of loan costs
|
8
|
5
|
||||||
Stock-based compensation
|
123
|
768
|
||||||
Unrealized loss on marketable securities |
510 | — |
||||||
Change in fair value of mandatorily redeemable noncontrolling interest
|
—
|
58
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
||||||||
Accounts receivable
|
27,112
|
(13,307
|
)
|
|||||
Inventory
|
(145
|
)
|
(1,043
|
)
|
||||
Prepaid expenses and other current assets
|
(1,729
|
)
|
(1,236
|
)
|
||||
Security deposits and other long-term assets
|
(116
|
)
|
65
|
|||||
Accounts payable and accrued expenses
|
(17,563
|
)
|
15,728
|
|||||
Other liabilities
|
53
|
15
|
||||||
Net cash provided by operating activities
|
10,100
|
5,991
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Acquisition of property and equipment, net of disposals
|
(178
|
)
|
(270
|
)
|
||||
Earnout payment
|
(1,693 | ) | — | |||||
Acquisitions
|
(3,911
|
)
|
(112
|
)
|
||||
Net cash used in investing activities
|
(5,782
|
)
|
(382
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Repayments of term loan
|
(725
|
)
|
(510
|
)
|
||||
Proceeds from stock option exercise
|
—
|
161
|
||||||
Lines of credit payments, net
|
(7,663
|
)
|
(4,975
|
)
|
||||
Repayment of subordinated promissory notes
|
(208
|
)
|
(24
|
)
|
||||
Dividends paid to minority shareholders
|
— | (61 | ) | |||||
Dividends paid to preferred stockholders
|
— | (657 | ) | |||||
Repurchase of Series C Preferred Stock
|
— | (2,343 | ) | |||||
Net cash used in financing activities
|
(8,596
|
)
|
(8,409
|
)
|
||||
Net decrease in cash
|
(4,278
|
)
|
(2,800
|
)
|
||||
Cash at beginning of the period
|
6,591
|
6,234
|
||||||
Cash at end of period
|
$
|
2,313
|
$
|
3,434
|
||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
781
|
$
|
387
|
||||
Income taxes
|
$
|
1,047
|
$
|
829
|
||||
Non-cash operating activities:
|
||||||||
Contingent earnout acquisition
|
$ | 600 | $ | — | ||||
Due to former owner
|
$ | 455 | $ | — | ||||
Non-cash investing activities: |
||||||||
Purchase price adjustments
|
$ |
— | $ |
112 | ||||
Non-cash financing activities:
|
||||||||
Dividends declared to preferred stockholders
|
$
|
142
|
$
|
444
|
1. |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
|
Three Months Ended
March 31,
|
Six
Months Ended
March 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Service Type
|
||||||||||||||||
Trucking
|
$
|
19,596
|
$
|
23,539
|
$
|
42,357
|
$
|
45,349
|
||||||||
Ocean
|
9,240 | 32,285 | 27,406 | 66,180 | ||||||||||||
Air
|
5,219
|
13,063
|
11,458
|
27,347
|
||||||||||||
Other | 3,665 | 3,115 | 5,865 | 6,927 | ||||||||||||
Customs Brokerage
|
2,158
|
3,071
|
4,592
|
6,826
|
||||||||||||
Total
|
$
|
39,878
|
$
|
75,073
|
$
|
91,678
|
$
|
152,629
|
2. |
ACQUISITIONS
|
3. |
INVENTORY
|
March 31,
2023
|
September 30,
2022
|
|||||||
Finished goods
|
$
|
1,822
|
$
|
1,823
|
||||
Work-in-process
|
1,085
|
763
|
||||||
Raw materials
|
2,377
|
2,260
|
||||||
Gross inventory
|
5,284
|
4,846
|
||||||
Less – reserve for inventory valuation
|
(47
|
)
|
(44
|
)
|
||||
Inventory net
|
$
|
5,237
|
$
|
4,802
|
4. |
INTANGIBLE ASSETS
|
March 31,
2023
|
September 30,
2022
|
Life
|
|||||||
Customer relationships
|
$
|
25,796
|
$
|
23,625
|
12-24 Years
|
||||
Trademarks/names
|
4,661
|
4,539
|
1-20 Years
|
||||||
Trademarks/names
|
521
|
521
|
Indefinite
|
||||||
Other
|
1,584
|
1,180
|
2-22 Years
|
||||||
32,562
|
29,865
|
||||||||
Less: Accumulated Amortization
|
(8,514
|
)
|
(7,445
|
)
|
|||||
Intangible assets, net
|
$
|
24,048
|
$
|
22,420
|
March 31,
2023
|
September 30,
2022
|
|||||||
Logistics
|
$
|
18,174
|
$
|
18,174
|
||||
Life Sciences | 6,688 | 3,991 | ||||||
Manufacturing
|
7,700
|
7,700
|
||||||
32,562
|
29,865
|
|||||||
Less: Accumulated Amortization
|
(8,514
|
)
|
(7,445
|
)
|
||||
Intangible assets, net
|
$
|
24,048
|
$
|
22,420
|
5. |
GOODWILL
|
March 31,
2023
|
September 30,
2022
|
|||||||
Logistics
|
$
|
9,175
|
$
|
9,175
|
||||
Life Sciences | 5,545 | 4,401 | ||||||
Manufacturing
|
5,046
|
5,046
|
||||||
Total |
$
|
19,766
|
$
|
18,622
|
6. |
NOTES PAYABLE – BANKS
|
(A) |
Santander Bank Facility
|
(B) |
First Merchants Bank Credit Facility
|
(in thousands) |
March 31,
2023
|
September 30,
2022
|
||||||
Total Debt*
|
$
|
5,367
|
$
|
6,051
|
||||
Less Current Portion
|
(574
|
)
|
(574
|
)
|
||||
Long-term Portion |
$
|
4,793
|
$
|
5,477
|
* |
Note:
Term Loan is due in monthly installments of $46 plus monthly interest, at SOFR plus 2.75% to 3.5% per annum, and the mortgage loan is due in monthly installments of $4, including interest at 4.19%. The credit facilities are collateralized by all of Indco’s assets and guaranteed by Janel.
|
(C) |
First Northern Bank of Dixon
|
(in thousands) |
March 31,
2023
|
September 30,
2022
|
||||||
Total Debt*
|
$
|
2,075
|
$
|
2,107
|
||||
Less Current Portion
|
(67
|
)
|
(65
|
)
|
||||
Long-term Portion |
$
|
2,008
|
$
|
2,042
|
* |
Long-term debt under the First Northern Loan Agreement is due in monthly installments of $12
plus monthly interest, at 4.18%
per annum for five years.
|
7. |
SUBORDINATED PROMISSORY NOTES - RELATED PARTY
|
(in thousands) |
March 31,
2023
|
September 30,
2022
|
||||||
Total subordinated promissory notes
|
$
|
5,596
|
$
|
5,807
|
||||
Less current portion of subordinated promissory notes
|
(788
|
)
|
(425
|
)
|
||||
Long term portion of subordinated promissory notes
|
$
|
4,808
|
$
|
5,382
|
8. |
STOCKHOLDERS’ EQUITY
|
Preferred Stock
|
9. |
STOCK-BASED COMPENSATION
|
|
(in thousands, except share and per share data)
|
(A) |
Stock Options
|
• |
Risk-free interest rate - We determine the risk-free interest rate by using a weighted
average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.
|
• |
Expected term - We estimate the expected term of our options on the average of the
vesting date and term of the option.
|
•
|
Expected volatility - We estimate expected volatility using daily
historical trading data of a peer group.
|
• |
Dividend yield - We have never paid dividends on our common stock and currently have no
plans to do so; therefore, no dividend yield is applied.
|
Six
Months Ended
March 31, 2023 |
||||
Risk-free interest rate
|
3.98
|
%
|
||
Expected option term in years
|
5.5 - 6.5
|
|||
Expected volatility
|
93.6
|
%
|
||
Dividend yield |
— | % | ||
Weighted average grant date fair value
|
$
|
30.06 - $41.24
|
Number
of Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (in years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||||||||||
Outstanding balance at September 30, 2022
|
30,993
|
$
|
12.68
|
6.8
|
$
|
1,251.45
|
||||||||||
Granted
|
10,000
|
$
|
53.06
|
9.7
|
$
|
—
|
||||||||||
Outstanding balance at March 31, 2023
|
40,993
|
$
|
22.53
|
7.0
|
$
|
567.72
|
||||||||||
Exercisable at March 31, 2023
|
21,831
|
$
|
9.96
|
5.4
|
$
|
459.43
|
Six
Months Ended
March 31, 2023 |
||||
Risk-free interest rate
|
3.98
|
%
|
||
Expected option term in years
|
4.5 - 5.5
|
|||
Expected volatility
|
44
|
%
|
||
Dividend yield |
— | % | ||
Weighted average grant date fair value
|
$
|
3.96 - $6.68
|
Number
of Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (in years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||||||||||
Outstanding balance at September 30, 2022
|
35,607
|
$
|
12.22
|
6.70
|
$
|
175.98
|
||||||||||
Granted
|
7,018
|
$
|
15.20
|
9.80
|
$
|
—
|
||||||||||
Outstanding balance at March 31, 2023
|
42,625
|
$
|
12.71
|
6.80
|
$
|
119.94
|
||||||||||
Exercisable at March 31, 2023
|
28,613
|
$
|
11.40
|
5.80
|
$
|
113.20
|
10. |
INCOME PER COMMON SHARE
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
(in thousands, except per share data)
|
2023 |
2022
|
2023 |
2022
|
||||||||||||
Income:
|
||||||||||||||||
Net income
|
$
|
218
|
$
|
1,273
|
$
|
578
|
$
|
2,961
|
||||||||
Preferred stock dividends
|
(70
|
)
|
(233
|
)
|
(142
|
)
|
(444
|
)
|
||||||||
Non-controlling interest dividends
|
— | (61 | ) | — | (61 | ) | ||||||||||
Net Income available to common stockholders
|
$
|
148
|
$
|
979
|
$
|
436
|
$
|
2,456
|
||||||||
Common Shares:
|
||||||||||||||||
Basic - weighted average common shares
|
1,186.4
|
973.9
|
1,186.4
|
966.5
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Stock options
|
19.7
|
57.3
|
20.8
|
57.9
|
||||||||||||
Convertible preferred stock
|
—
|
—
|
—
|
0.1
|
||||||||||||
Diluted - weighted average common stock
|
1,206.1
|
1,031.2
|
1,207.2
|
1,024.5
|
||||||||||||
Income per Common Share:
|
||||||||||||||||
Basic -
|
||||||||||||||||
Net income
|
$
|
0.18
|
$
|
1.30
|
$
|
0.49
|
$
|
3.06
|
||||||||
Preferred stock dividends
|
(0.06
|
)
|
(0.24
|
)
|
(0.12
|
)
|
(0.46
|
)
|
||||||||
Non-controlling interest dividends |
— | (0.06 | ) | — | (0.06 | ) | ||||||||||
Net Income available to common stockholders
|
$
|
0.12
|
$
|
1.00
|
$
|
0.37
|
$
|
2.54
|
||||||||
Diluted -
|
||||||||||||||||
Net income
|
$
|
0.18
|
$
|
1.23
|
$
|
0.48
|
$
|
2.89
|
||||||||
Preferred stock dividends
|
(0.06
|
)
|
(0.22
|
)
|
(0.12
|
)
|
(0.43
|
)
|
||||||||
Non-controlling interest dividends |
— | (0.06 | ) | — | (0.06 | ) | ||||||||||
Net income available to common stockholders
|
$
|
0.12
|
$
|
0.95
|
$
|
0.36
|
$
|
2.40
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
2023
|
2022
|
2023 |
2022 | |||||||||||||
Employee stock options (Note 9)
|
41
|
74
|
41 | 74 |
11. |
INCOME TAXES
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
2023 | 2022 |
2023 |
2022 |
|||||||||||||
Federal taxes at statutory rates
|
$
|
(67
|
)
|
$
|
(394
|
)
|
$
|
(174
|
)
|
$
|
(890
|
)
|
||||
Permanent differences
|
(35
|
)
|
10
|
(36
|
)
|
—
|
||||||||||
State and local taxes, net of Federal benefit
|
1
|
(221
|
)
|
(38
|
)
|
(390
|
)
|
|||||||||
Total
|
$
|
(101
|
)
|
$
|
(605
|
)
|
$
|
(248
|
)
|
$
|
(1,280
|
)
|
12. |
BUSINESS SEGMENT INFORMATION
|
For the three months ended March 31, 2023
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenue
|
$
|
45,378
|
$
|
39,878
|
$
|
3,068
|
$
|
2,432
|
$
|
—
|
||||||||||
Forwarding expenses and cost of revenue
|
31,629
|
29,831
|
627
|
1,171
|
—
|
|||||||||||||||
Gross profit
|
13,749
|
10,047
|
2,441
|
1,261
|
—
|
|||||||||||||||
Selling, general and administrative
|
12,302
|
8,734
|
1,570
|
776
|
1,222
|
|||||||||||||||
Amortization of intangible assets
|
543
|
—
|
—
|
—
|
543
|
|||||||||||||||
Income (loss) from operations
|
904
|
1,313
|
871
|
485
|
(1,765
|
)
|
||||||||||||||
Interest expense
|
474
|
325
|
42
|
107
|
—
|
|||||||||||||||
Identifiable assets
|
99,539
|
36,726
|
11,402
|
4,305
|
47,106
|
|||||||||||||||
Capital expenditures, net of disposals
|
|
98
|
|
35
|
|
63
|
|
—
|
|
—
|
For the six months ended March 31, 2023
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenue
|
$
|
102,422
|
$
|
91,678
|
$
|
5,906
|
$
|
4,838
|
$
|
—
|
||||||||||
Forwarding expenses and cost of revenue
|
73,756
|
70,098
|
1,355
|
2,303
|
—
|
|||||||||||||||
Gross profit
|
28,666
|
21,580
|
4,551
|
2,535
|
—
|
|||||||||||||||
Selling, general and administrative
|
25,313
|
18,262
|
3,080
|
1,550
|
2,421
|
|||||||||||||||
Amortization of intangible assets
|
1,069
|
—
|
—
|
—
|
1,069
|
|||||||||||||||
Income (loss) from operations
|
2,284
|
3,318
|
1,471
|
985
|
(3,490
|
)
|
||||||||||||||
Interest expense
|
948
|
659
|
79
|
210
|
—
|
|||||||||||||||
Identifiable assets
|
99,539
|
36,726
|
11,402
|
4,305
|
47,106
|
|||||||||||||||
Capital expenditures, net of disposals
|
|
178
|
|
103
|
|
73
|
|
2
|
|
—
|
For the three months ended March 31, 2022
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenue
|
$
|
80,851
|
$
|
75,073
|
$
|
3,275
|
$
|
2,503
|
$
|
—
|
||||||||||
Forwarding expenses and cost of revenue
|
64,342
|
62,281
|
867
|
1,194
|
—
|
|||||||||||||||
Gross profit
|
16,509
|
12,792
|
2,408
|
1,309
|
—
|
|||||||||||||||
Selling, general and administrative
|
13,875
|
10,066
|
1,283
|
765
|
1,761
|
|||||||||||||||
Amortization of intangible assets
|
487
|
—
|
—
|
—
|
487
|
|||||||||||||||
Income (loss) from operations
|
2,147
|
2,726
|
1,125
|
544
|
(2,248
|
)
|
||||||||||||||
Interest expense
|
269
|
217
|
28
|
24
|
—
|
|||||||||||||||
Identifiable assets
|
130,112
|
71,721
|
11,587
|
4,021
|
42,783
|
|||||||||||||||
Capital expenditures, net of disposals
|
|
101
|
|
24
|
|
56
|
|
21
|
|
—
|
For the six months ended March 31, 2022
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenue
|
$
|
164,165
|
$
|
152,629
|
$
|
6,519
|
$
|
5,017
|
$
|
—
|
||||||||||
Forwarding expenses and cost of revenue
|
132,167
|
127,891
|
1,868
|
2,408
|
—
|
|||||||||||||||
Gross profit
|
31,998
|
24,738
|
4,651
|
2,609
|
—
|
|||||||||||||||
Selling, general and administrative
|
26,213
|
19,415
|
2,533
|
1,494
|
2,771
|
|||||||||||||||
Amortization of intangible assets
|
996
|
—
|
—
|
—
|
996
|
|||||||||||||||
Income (loss) from operations
|
4,789
|
5,323
|
2,118
|
1,115
|
(3,767
|
)
|
||||||||||||||
Interest expense
|
548
|
441
|
57
|
50
|
—
|
|||||||||||||||
Identifiable assets
|
130,112
|
71,721
|
11,587
|
4,021
|
42,783
|
|||||||||||||||
Capital expenditures, net of disposals
|
|
270
|
|
89
|
|
158
|
|
23
|
|
—
|
13.
|
FAIR VALUE MEASUREMENTS
|
Level 1
|
March 31,
2023 |
September 30,
2022
|
||||||
Investment in Rubicon at fair value
|
$
|
1,861
|
$
|
2,371
|
March 31,
2023
|
September 30,
2022
|
|||||||
Balance beginning of period
|
$
|
2,371
|
$
|
—
|
||||
Purchase of Rubicon Investment
|
—
|
22,160
|
||||||
Fair value adjustment to Rubicon investment
|
(510
|
)
|
(19,789
|
)
|
||||
Balance end of period
|
$
|
1,861
|
$
|
2,371
|
Level 3
|
March 31,
2023
|
September 30,
2022
|
||||||
Contingent earnout liabilities
|
$
|
3,487
|
$
|
4,580
|
March 31,
2023
|
September 30,
2022
|
|||||||
Balance beginning of period
|
$
|
4,580
|
$
|
3,600
|
||||
Fair value of contingent consideration recorded in connection with business combinations
|
600
|
980
|
||||||
Earnout payment-ELFS |
(1,693 | ) | — | |||||
Balance end of period
|
$
|
3,487
|
$
|
4,580
|
14. |
LEASES
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Operating lease cost
|
$
|
466
|
$
|
340
|
$
|
1,017
|
$
|
820
|
||||||||
Short-term lease cost
|
113
|
228
|
133
|
380
|
||||||||||||
Total lease cost
|
$
|
579
|
$
|
568
|
$
|
1,150
|
$
|
1,200
|
2024
|
$
|
1,729
|
||
2025
|
1,316
|
|||
2026
|
858
|
|||
2027 |
712
|
|||
2028
|
727
|
|||
Thereafter |
383 | |||
Total undiscounted lease obligations
|
5,725
|
|||
Less: Imputed interest
|
(347
|
)
|
||
Total lease obligation
|
$
|
5,378
|
15. | SUBSEQUENT EVENTS |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(in thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Revenue
|
$
|
45,378
|
$
|
80,851
|
$
|
102,422
|
$
|
164,165
|
||||||||
Forwarding expenses and cost of revenue
|
31,629
|
64,342
|
73,756
|
132,167
|
||||||||||||
Gross profit
|
13,749
|
16,509
|
28,666
|
31,998
|
||||||||||||
Operating expenses
|
12,845
|
14,362
|
26,382
|
27,209
|
||||||||||||
Income from operations
|
904
|
2,147
|
2,284
|
4,789
|
||||||||||||
Net income
|
218
|
1,273
|
578
|
2,961
|
||||||||||||
Adjusted operating income
|
$
|
1,636
|
$
|
3,454
|
$
|
3,693
|
$
|
6,816
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(in thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Income from operations
|
$
|
904
|
$
|
2,147
|
$
|
2,284
|
$
|
4,789
|
||||||||
Amortization of intangible assets
|
543
|
487
|
1,069
|
996
|
||||||||||||
Stock-based compensation
|
62
|
728
|
123
|
768
|
||||||||||||
Cost recognized on sale of acquired inventory
|
127
|
92
|
217
|
263
|
||||||||||||
Adjusted operating income
|
$
|
1,636
|
$
|
3,454
|
$
|
3,693
|
$
|
6,816
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(in thousands)
|
||||||||||||||||
Revenue
|
$
|
39,878
|
$
|
75,073
|
$
|
91,678
|
$
|
152,629
|
||||||||
Forwarding expenses
|
29,831
|
62,281
|
70,098
|
127,891
|
||||||||||||
Gross profit
|
10,047
|
12,792
|
21,580
|
24,738
|
||||||||||||
Gross profit margin
|
25.2
|
%
|
17.0
|
%
|
23.5
|
%
|
16.2
|
%
|
||||||||
Selling, general & administrative
|
8,734
|
10,066
|
18,262
|
19,415
|
||||||||||||
Income from operations
|
$
|
1,313
|
$
|
2,726
|
$
|
3,318
|
$
|
5,323
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(in thousands)
|
||||||||||||||||
Revenue
|
$
|
3,068
|
$
|
3,275
|
$
|
5,906
|
$
|
6,519
|
||||||||
Cost of sales
|
500
|
775
|
1,138
|
1,605
|
||||||||||||
Cost recognized upon sales of acquired inventory
|
127
|
92
|
217
|
263
|
||||||||||||
Gross profit
|
2,441
|
2,408
|
4,551
|
4,651
|
||||||||||||
Gross profit margin
|
79.6
|
%
|
73.5
|
%
|
77.1
|
%
|
71.3
|
%
|
||||||||
Selling, general and administrative
|
1,570
|
1,283
|
3,080
|
2,533
|
||||||||||||
Income from operations
|
$
|
871
|
$
|
1,125
|
$
|
1,471
|
$
|
2,118
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
(in thousands)
|
||||||||||||||||
Revenue
|
$
|
2,432
|
$
|
2,503
|
$
|
4,838
|
$
|
5,017
|
||||||||
Cost of sales
|
1,171
|
1,194
|
2,303
|
2,408
|
||||||||||||
Gross profit
|
1,261
|
1,309
|
2,535
|
2,609
|
||||||||||||
Gross profit margin
|
51.9
|
%
|
52.3
|
%
|
52.4
|
%
|
52.0
|
%
|
||||||||
Selling, general and administrative
|
776
|
765
|
1,550
|
1,494
|
||||||||||||
Income from operations
|
$
|
485
|
$
|
544
|
$
|
985
|
$
|
1,115
|
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||
(in thousands)
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
Total income from operating segments
|
$
|
2,669
|
$
|
4,395
|
$
|
5,774
|
$
|
8,556
|
||||||||
Corporate expenses
|
(1,160
|
)
|
(1,033
|
)
|
(2,298
|
)
|
(2,003
|
)
|
||||||||
Amortization expense
|
(543
|
)
|
(487
|
)
|
(1,069
|
)
|
(996
|
)
|
||||||||
Stock-based compensation
|
(62
|
)
|
(728
|
)
|
(123
|
)
|
(768
|
)
|
||||||||
Total corporate expenses
|
(1,765
|
)
|
(2,248
|
)
|
(3,490
|
)
|
(3,767
|
)
|
||||||||
Interest expense
|
(474
|
)
|
(269
|
)
|
(948
|
)
|
(548
|
)
|
||||||||
Unrealized loss on marketable securities
|
(111
|
)
|
-
|
(510
|
)
|
—
|
||||||||||
Net income before taxes
|
319
|
1,878
|
826
|
4,241
|
||||||||||||
Income tax expense
|
(101
|
)
|
(605
|
)
|
(248
|
)
|
(1,280
|
)
|
||||||||
Net income
|
218
|
1,273
|
578
|
2,961
|
||||||||||||
Preferred stock dividends
|
(70
|
)
|
(233
|
)
|
(142
|
)
|
(444
|
)
|
||||||||
Non-controlling interest dividends
|
—
|
(61
|
)
|
—
|
(61
|
)
|
||||||||||
Net Income Available to Common Stockholders
|
$
|
$ 148
|
$
|
979
|
$
|
436
|
$
|
2,456
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 6. |
EXHIBIT INDEX
|
Third Amendment to Amended and Restated Loan and Security Agreement, by and among Santander Bank, N.A., as lender, and Janel Group, Inc., Expedited Logistics and Freight Services, LLC, a Texas
limited liability company, and ELFS Brokerage, LLC (collectively as borrowers) and Janel Corporation and Expedited Logistics and Freight Services, LLC, an Oklahoma limited liability company, as loan party obligors dated January 30, 2023
(incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 3, 2023)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer (filed herewith)
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer (filed herewith)
|
|
Section 1350 Certification of Principal Executive Officer (filed herewith)
|
|
Section 1350 Certification of Principal Financial Officer (filed herewith)
|
|
101
|
Interactive data files providing financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 for the three and six months ended March 31, 2023
and 2022 in Inline XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022, (ii) Condensed Consolidated Statements of
Operations for the three and six months ended March 31, 2023 and 2022, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three and six months March 31, 2023 and 2022, (iv) Condensed Consolidated Statements of
Cash Flows for the six months ended March 31, 2023 and 2022, and (v) Notes to Condensed Consolidated Financial Statements.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibit 101) (filed herewith)
|
Dated:
|
May 5, 2023 |
JANEL CORPORATION
|
Registrant
|
||
/s/ Darren C. Seirer
|
||
Darren C. Seirer
|
||
Chairman, President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
Dated:
|
May 5, 2023 |
JANEL CORPORATION
|
Registrant
|
||
/s/ Vincent A. Verde
|
||
Vincent A. Verde
|
||
Principal Financial Officer, Treasurer and Secretary
|
1 Year Janel (PK) Chart |
1 Month Janel (PK) Chart |
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