WESTPORT, Conn.--Velocity Express Corporation, the nation's largest provider of time definite regional delivery solutions, announced unaudited operating results for the fourth quarter and year ended June 28, 2008.

Revenue for the quarter ended June 28, 2008 was $79.3 million compared to $82.2 million in the March quarter of 2008 and $98.6 million in the June quarter of 2007. The Company reported gross profit for the quarter of $22.3 million, or 28.2% of sales, compared to gross profit of $20.5 million, or 25.0%, in the March quarter of 2008 and $26.4 million, or 26.8% of sales for the same quarter last year. Operating expenses before goodwill impairment were $21.6 million compared to $24.2 million in the March quarter and $26.6 million in the same quarter last year. During the quarter, the Company reported a goodwill impairment of $52.5 million related to a revaluation of the Company’s goodwill asset, principally related to the CD&L acquisition. Total operating loss for the quarter, including the goodwill impairment charge, was $51.8 million compared to a loss of $182,000 in the same quarter last year. Adjusted EBITDA was $2.1 million compared to a loss of $1.7 million in the March 2008 quarter and $2.8 million for the same quarter last year which included a purchase accounting benefit of $1.5 million.

Revenue for the year ended June 28, 2008 was $340.9 million compared to $410.1 million last year. The Company reported gross profit for the year of $86.0 million, or 25.2% of sales, compared to gross profit of $98.0 million, or 23.9% of sales, last year. Operating expenses before goodwill impairment was $95.5 million compared to $117.6 million last year. Adjusted EBITDA was a loss of $1.2 million compared to a loss of $1.7 million last year. Total operating loss for the year, including the $52.5 million goodwill impairment, was $61.9 million compared to $19.6 million last year.

Vincent A. Wasik, Velocity's Chairman and Chief Executive Officer, stated, “We were pleased to achieve positive adjusted EBITDA for the quarter despite the current recessionary environment which has reduced shipping volumes from continuing customers and increased pressure on pricing. With the award in June and start-up in July of a multi-year agreement to provide retail store replenishment and vendor in-bound delivery services to Stage Stores, we made progress in positioning the Company for enhanced growth in the retail segment and long-term profitability. Our gross margins improved sequentially due to the re-alignment of driver settlements with prevailing market rates and renegotiation or exit from unfavorable fuel indexing provisions. In addition, we reduced operating expenses during the quarter in line with lower revenue.”

Mr. Wasik concluded, “We continue to phase out unfavorable low margin contracts and focus on building a pipeline of profitable opportunities in the retail and healthcare sectors, now totaling $170 million. However, we are very concerned about effect of the current economic climate on our delivery volumes.”

Company Files Form 12b-25

Velocity also announced that it has filed for a 15-day extension for filing its Annual Report on Form 10-K for the period ended June 28, 2008 as the company is not able to file the Form 10-K by the prescribed filing date without unreasonable effort and expense.

Damage to the Company’s financial operations center in Houston, TX caused by Hurricane Ike has made it difficult to access some of the Company’s financial records needed to provide information to its independent auditors to permit them to complete certain audit procedures. In addition, management has been involved in negotiating a new senior secured loan facility with a new lender, to replace its existing facility with Wells Fargo Foothill. While no assurances can be given, we believe we will be able to complete the remaining audit procedures, reach a mutually satisfactory new loan agreement and file our Form 10-K on or before October 13, 2008.

Conference Call

Velocity will host a conference call on Tuesday, October 14 at 9:00 a.m. ET to discuss the company’s fourth quarter and year end results. To participate in the call by phone, dial 1-866-585-6398 approximately five minutes prior to the scheduled start time. International callers please dial 416-849-9626. A webcast will be available at www.velocityexpress.com as well as at www.InvestorCalendar.com. A replay of the webcast can be heard by visiting the investor relations section of the Velocity Express website. A replay of the teleconference will be available for 14 days after the call and may be accessed domestically by dialing 866-245-6755 and international callers may dial 416-915-1035. Callers should use passcode 462657.

About Velocity Express

Velocity Express has one of the largest time definite nationwide delivery networks, providing a national footprint for customers desiring sameday service throughout the United States. The Company's services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation and logistics systems, including a proprietary package tracking system that enables customers to view the status of any package via a flexible web reporting system.

Amsterdam/Ratingen -- TNT Post in principle welcomes the fact that the German Federal Government is revising the VAT regulation in the postal market. This is a necessary step because the current VAT exemption for Deutsche Post AG is contrary to EU law and impedes competition. However the present draft bill will not encourage competition in the postal market.

Inexact phrasing that is open to various interpretations enables Deutsche Post AG to maintain its VAT exemption. Through this VAT exemption, the German State has foregone tax revenues of up to EUR 500 million per year. There is no substantive reason for the long transitional period up to 1 January 2010.

Although the draft bill is a step in the right direction, it will not encourage fair competition conditions. TNT Post therefore calls upon the legislature to make improvements to the draft bill.

Mario Frusch, CEO of TNT Post Germany comments: “The best solution would be a uniform system whereby all postal service providers would be required to charge the full VAT rate. Optionally, single consignments sent by private consumers – fewer than 50 items – could continue to be exempt from VAT. The law must not leave any room for interpretation. It needs to be improved. Deutsche Post AG must not be given any scope for circumventing charging VAT on business mail.”

The current VAT exemption for Deutsche Post AG protects half the total volume of mail in its favour and thus distorts competition. The European Commission already opened an infringement procedure against the German State in early 2006. Together with the excessive minimum wage for postal services (a cost increase of over 20%) and the lack of price control (Deutsche Post AG discounts of up to 26%), the VAT disadvantage suffered by the new postal service providers (a cost disadvantage of 19%) prevents fair competition in the postal market.

TNT provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in Amsterdam, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximise its network performance. TNT serves more than 200 countries and employs more than 161,500 people

Expanded International Express Network Strengthens TNT’s Leading Position in China-Europe Services

Amsterdam/Shanghai - TNT, the global express company, today announced that it will add eight new branches to its international express network in China by the end of the year. The expansion, which forms part of TNT’s investment in China to strengthen its international express network, will bring the total number of TNT International Express branches in China to 34. In addition to its extensive international express network, TNT, through its wholly-owned subsidiary Tiandi-Hoau, also operates China’s largest private domestic road network, which consists of 1,250 depots.

The eight new branches, most of which will be located in the Pearl River Delta area and the Yangtze River Delta area – China’s key manufacturing and export hubs, will not only enable TNT to better capture the business opportunities in China’s fastest-growing economic regions, it will also bring the company closer to its customers, especially those in the high-tech industries.

The TNT International Express branches at Dongguan and Zhongshan will begin their operations in the end of September 2008. This follows the opening of two earlier branches in Foshan, which opened on 1 August 2008 and in Shunde, which started operations on 1 September 2008. In addition, another four TNT International Express branches will be set up in Nanning, Wenzhou, Kunshan and Shanghai Pudong by the end of the year.

"This expansion builds on TNT China's focused approach on customers and our current success in the China market,” said Michael Drake, Managing Director, TNT Greater China. “The set up of the eight new branches is in line with our long term ambitions in this market and those in the south region will further support the expansion of the TNT Asia Road Network into and out of China. We will continue to leverage on our strong European position to expand our international express market share and to strengthen our leadership position in the Sino-Europe international express sector.”

As the leading provider of international express services between China and Europe, TNT is continuously developing its network and expanding its international express services in China so as to tap on the growing bilateral trade volume between the European Union and China. With a dedicated TNT Boeing 747-400ERF aircraft that flies four times a week between Shanghai and TNT’s super-hub in Europe, TNT links its extensive network in China to its market leading European network in the shortest possible time. The establishment of the new TNT International Express branches in the Pearl River Delta region and Nanning will also strengthen TNT’s reliable, cost effective, and secure scheduled road transportation solutions, via the Asia Road Network, between China and the rest of Southeast Asia.

ORLANDO, Fla.--TMW Systems TransForum 2008 User Conference and Exhibition attracted more than 1,300 trucking and transportation services professionals who participated in 280 learning sessions, heard from 10 featured speakers, engaged with 46 industry exhibitors and networked with employees and leaders from over 430 TMW customers across North America and Europe. The user conference, held this year at the Marriott Orlando World Center in Orlando, Fla., is one of the largest events dedicated to helping trucking companies, logistics service providers and other fleet operators harness the power of information and technology for greater profitability.

Of all the transportation events to attend, TMW's TransForum is absolutely the best," said John Erik Albrechtsen, assistant general manager and fleet executive manager of operations for Paul’s Hauling, Ltd., based out of Winnipeg, Manitoba, Canada.

Attendees represented all business functions and included executives, finance and accounting, IT, sales, logistics specialists, fleet operations and fleet maintenance personnel.

I have been coming to TransForum for seven years and each year I have been able to take something new and apply it to our operations, Dennis Morgan, chief operations officer for Baltimore, Md.-based Cowan Systems, said. This user conference gives my management team a great opportunity to learn how to better utilize the programs they use every day.

The DistTech Team found TMW's TransForum excellent on every level and discipline. It is a must for transportation leaders," said Newbury, Ohio-based DistTech Chief Operating Officer, John Rakoczy.

TMW President and Chief Executive Officer David W. Wangler opened the three-day event Monday morning with his keynote speech. Wangler urged the capacity crowd to move beyond traditional thinking and view the current economic climate as an opportunity to innovate. During his highly charged, 50-minute address, he cited the freight industry's historical cycles of economic downturns and renewed prosperity, noted emerging societal and technological trends, and challenged the audience to seek out and engage in the fresh thinking, intensive learning and bold action that can transform companies and individuals for the better during difficult times.

Ten featured speakers contributed management insight and fed strategic thinking for executives at the conference, among them were: Dr. Michael J. Economides, chairman of the board of XGAS and Paleon Oil and Gas; Mike Moran, author of the acclaimed book on Internet marketing, Do It Wrong Quickly Jon A. Langenfield, CFA and director and senior research analyst at R.W. Baird Associates; and John A. Gentle, DLP, a designated Distinguished Logistics Professional by the American Society of Transportation and Logistics and a Logistics Rainmaker by DC Velocity magazine. Political strategists Michael E. Murphy and Mary Beth Cahill appeared together on stage during Monday's lunch for a rousing and insightful discussion about the coming election, the political and economic firestorms facing each presidential candidate, and the potential impacts for the American voter.

All TMW lines of business were included in the hands-on training, new developments review and best practices discussion throughout the event, including the Enterprise Transportation Software systems TruckMate, TL2000 and TMWSuite; TMW Optimization software IDSC Netwise and IDSC ExpertFuel; and TMW Asset Maintenance software TMT Fleet Maintenance and the new TMT ServiceCenter, launched at this year's event. Technologies represented were Microsoft client/server and IBM System i software as well as .NET developments, Java ME and web-browser-based products.

It's one thing to read about new trends in technology, but it's quite another to see those technologies demonstrated in person and explained in depth, commented Christy Murray, chief operating officer for All Pro Freight Systems, Inc. We uncovered advanced features already in the TMW software that we rely on for brokerage operations and we are eager to put them to use.

TMW Systems 2009 conference is scheduled for September 19-23, 2009, at the Gaylord Opryland Resort & Convention Center, Nashville, Tenn.

TMW Systems corporate contact:
Monica Truelsch, 216-831-6606

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