Clark Holdings Inc. Announces Preliminary Fourth Quarter and 2009 Year End Results
NEW YORK, March 1 /PRNewswire-FirstCall/ -- Clark Holdings Inc. ("Clark")(NYSE Amex: GLA; GLA.U; GLA.WS), a non-asset-based provider of mission-critical supply chain solutions, today announced preliminary unaudited financial results for the fourth quarter and fiscal year ended January 2, 2010.
Net loss attributable to Clark's common stockholders for the 13 weeks ended January 2, 2010 was $497,000 ($0.05 per diluted common share) and net loss for the 14 weeks ended January 3, 2009 was $64,270,000 ($5.92 per diluted common share). Clark incurred several non-recurring expenses during the 13 weeks ended January 2, 2010 that, in aggregate, reduced income by $680,000. During the quarter, Clark entered into severance and non-compete agreements with three members of management at a total cost of $466,000. The company incurred $214,000 in legal and professional fees to reach an agreement with the sellers of the Clark Group, Inc that reduced the original purchase price paid by Clark by $1,275,000.
Net loss attributable to Clark's common stockholders for the 52 weeks ended January 2, 2010 was $1,530,000 ($0.14 per diluted common share) and net loss for the 53 weeks ended January 3, 2009 was and $63,661,000 ($5.63 per diluted common share).
Clark also announced that it has obtained a commitment letter from Cole Taylor Bank for a new $6,000,000 revolving credit facility and an extension until March 9, 2010 of its existing credit arrangements with Bank of America, N.A. Clark expects to close the new revolving facility prior to such date.
Summarized preliminary unaudited financial results of Clark for the quarter and fiscal year ended January 2, 2010 and January 3, 2009 are as follows (dollars in thousands):
CLARK HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In Thousands)
13 Weeks Ended 14 Weeks Ended 52 Weeks Ended 52 Weeks Ended
January 2, 2010 January 3, 2009 January 2, 2010 January 3, 2009
--------------- --------------- --------------- ---------------
Gross revenues $15,054 $21,337 $66,170 $84,167
Freight expense (9,574) (13,974) (41,584) (54,702)
Gross profit/
Net Revenue 5,480 7,363 24,586 29,465
Depreciation and
amortization (443) 242 (1,715) (1,451)
Impairment of
goodwill and
intangible assets (66,568) (66,568)
Selling, operating
and administrative
expenses (5,807) (6,741) (25,216) (24,722)
Income (loss)
from operations (770) (65,704) (2,345) (63,276)
Interest income-trust 0 - 1 290
Interest expense (61) (10) (206) (167)
(Loss)income before
income taxes and
adjustments (831) (65,714) (2,550) (63,153)
Less: Clark Group Inc
Income from
12/30/2007 to
2/11/2008 - - - (834)
(Loss) income
before income tax (831) (65,714) (2,550) (63,987)
Income tax (expense)
benefit 334 1,444 1,020 326
Net income (loss) $(497) $(64,270) $(1,530) $(63,661)
Weighted average
number of shares
outstanding:
Basic 10,859 10,859 10,859 11,306
Diluted 10,859 10,859 10,859 11,306
Net income (loss)
per share:
Basic $(0.05) $(5.92) $(0.14) $(5.63)
Diluted (0.05) (5.92) (0.14) $(5.63)
See Notes to Consolidated Financial Statements
CLARK HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(UNAUDITED)
January 2, 2010 January 3, 2009
--------------- ---------------
ASSETS
CURRENT ASSETS:
Cash and equivalents $3,597 $3,915
Accounts receivable, net of allowance
for doubtful accounts of $369 and
$348, respectively 4,956 5,557
Other receivables (7) 62
Prepaid expenses 1,299 1,594
Deferred tax assets - current 746 718
Total current assets 10,591 11,846
PROPERTY AND EQUIPMENT, net of accumulated
depreciation 2,529 1,925
INTANGIBLE ASSETS, net of accumulated
amortization 14,045 16,746
Total assets $27,165 $30,517
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt $2,895 $1,184
Accounts payable 3,502 2,500
Accrued expenses and other payables 4,525 5,428
Total current liabilities 10,922 9,112
COMMITMENTS AND CONTINGENCIES
Long term debt - 3,076
Deferred tax liabilities - non-current 5,911 6,576
STOCKHOLDERS' EQUITY
Preferred stock-$.0001 par value;
1,000,000 shares authorized; none issued - -
Common stock-$.0001 par value; 400,000,000
shares authorized; 10,859,385 issued and
outstanding at January 3, 2010 and
January 3, 2009 1 1
Additional paid-in capital 73,507 73,398
Deficit (63,176) (61,646)
Total stockholders' equity 10,332 11,753
Total liabilities and stockholders'
equity $27,165 $30,517
See Notes to Consolidated Financial Statements
About Clark
Over its 30-year history, Clark has built a position as the leading independent provider of value-added distribution, transportation management, and international air and ocean freight forwarding services to the print media and other industries.
This press release may contain certain forward-looking statements including statements with regard to the future performance of Clark. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties that are detailed in Clark's filings with the Securities and Exchange Commission. Clark undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Clark Holdings Inc.
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