Unique Logistics International Reports Financial Results for Fiscal 2022 Highlighted by 173% Growth in Revenue and 94% Growth in Adjusted EBITDA

NEW YORK, Sept. 14, 2022 /PRNewswire/ — Unique Logistics International, Inc. (OTCMKTS: UNQL) (“Unique” or the “Company”), a global logistics and freight forwarding company, today announced results for its fiscal year ended May 31, 2022.

Fiscal 2022 Financial Highlights

(in millions)

For the Year Ended May 31

2022

2021

Net Revenue

$        1,014.5

$           371.9

Adjusted EBITDA

$             17.3

$               8.9

 As of 

May 31, 2022

May 31, 2021

Total Assets

$           124.9

$             69.5

Total Stockholders’ Equity

$               5.8

$               6.6

Revenue increased 173% year over year
Adjusted EBITDA increased 94% year over year.

CEO Sunandan Ray commented on these results, “2022 was a pivotal year in the evolution of Unique Logistics since the acquisition of our operating subsidiaries in May 2020. Our focus has been on consolidating operations, continuing to build out our management team, and growing revenue by adding strategic corporate accounts.”

“We are proud to present our second year consolidated financial results and believe we continue to prove the promise we knew was there when we first embarked on this endeavor.  We are confident that our efforts to execute for our customers, build management expertise and evolve our ownership structure will result in a company that is poised to accelerate into the future.”

Business Outlook

Mr. Ray stated, “For the fiscal year 2023 we are cautious, but optimistic about the Company’s growth prospects. We believe the customer base will continue to grow strongly and management will seek to improve profitability and increase EBITDA by building on the value additions in our service as well as operational efficiency. The Company will be focused on completing the acquisitions previously announced.”

ABOUT UNIQUE LOGISTICS INTERNATIONAL, INC.

Unique Logistics International, Inc. (OTC Markets: UNQL) through its wholly owned operating subsidiaries, is a global logistics and freight forwarding company providing a range of international logistics services that enable its customers to outsource to the Company sections of their supply chain process. The services provided are seamlessly managed by its network of trained employees and integrated information systems. We enable our customers to share data regarding their international vendors and purchase orders with us, execute the flow of goods and information under their operating instructions, provide visibility to the flow of goods from factory to distribution center or store and when required, update their inventory records.

For more information on UNQL and its businesses, please visit www.unique-usa.com.

About Non-GAAP Financial Measures

The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the cloud communications industry to evaluate companies on the basis of operating performance and leverage. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and expenses associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as changes in fair value of the Company’s derivative liabilities and stock-based compensation. The Company also believes that Adjusted EBITDA provides investors with a measure of the Company’s operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions.

EBITDA and Adjusted EBITDA are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Income (loss) from Operations to EBITDA and Adjusted EBITDA” in the financial tables included in this press release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

Although we believe that the expectations reflected in these forward-looking statements such as the growth in revenues, along with the statements under the heading Business Outlook are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission (“SEC”), including in our Annual Report on Form 10-K for the fiscal year ended May 31, 2022. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

UNIQUE LOGISTICS INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Year Ended

For the Year Ended

31-May-22

31-May-21

Revenues:

Airfreight services

$

499,024,643

$

137,055,903

Ocean freight and ocean services

446,977,162

196,041,832

Contract logistics

3,491,489

3,093,626

Customs brokerage and other services

64,993,386

35,695,911

Total revenues

1,014,486,680

371,887,272

Costs and operating expenses:

Airfreight services

496,918,427

130,564,578

Ocean freight and ocean services

418,552,477

179,759,763

Contract logistics

1,771,415

1,267,360

Customs brokerage and other services

54,368,332

33,766,727

Salaries and related costs

11,736,610

9,184,390

Professional fees

1,079,819

1,350,369

Rent and occupancy

2,022,396

1,815,194

Selling and promotion

6,653,335

4,535,373

Depreciation and amortization

782,351

765,532

Fees on factoring agreements

27,000

4,471,540

Bad debt expense

2,541,676

240,000

Other

1,508,425

637,458

Total costs and operating expenses

997,962,263

368,358,284

Income from operations

16,524,417

3,528,988

Other income (expenses)

Interest expense

(5,632,551)

(431,439)

Amortization of debt discount

(776,515)

(1,350,389)

Gain on forgiveness of promissory note

358,236

1,646,062

Change in fair value of derivative liabilities

(4,020,698)

Loss on extinguishment of convertible note

(564,037)

(1,147,856

Other income

60,000

Total other income (expenses)

(10,575,565)

(1,283,622)

Net income before income taxes

5,948,852

2,245,366

Income tax expense

2,414,298

519,869

Net income

3,534,554

1,725,497

Deemed Dividend

(4,565,725)

Net (loss) income available for common shareholders

$

(1,031,171)

$

1,725,497

UNIQUE LOGISTICS INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

31-May-22

31-May-21

ASSETS

Current Assets:

Cash and cash equivalents

$

1,422,393

$

252,615

Accounts receivable, net

74,746,036

20,369,747

Contract assets

30,970,581

23,423,314

Factoring reserve

7,593,665

Other prepaid expenses and current assets

1,404,021

761,458

Total current assets

108,543,031

52,400,799

Property and equipment, net

188,889

192,092

Other long-term assets:

Goodwill

4,463,129

4,463,129

Intangible assets, net

7,337,704

8,044,853

Operating lease right-of-use assets, net

2,408,098

3,797,527

Deferred tax asset, net

942,748

263,221

Deposits

1,028,336

292,141

Other long-term assets

16,180,015

16,860,871

Total assets

$

124,911,935

$

69,453,762

Liabilities and Stockholders’ Equity

Current Liabilities:

Accounts payable

$

49,028,862

$

38,992,846

Accrued expenses and other current liabilities

5,666,159

2,383,915

Accrued freight

9,240,650

10,403,430

Contract Liabilities

468,209

Revolving credit facility

38,141,451

Current portion of notes payable, net of discount

608,333

2,285,367

Current portion of long-term debt due to related parties

301,308

397,975

Current portion of operating lease liability

912,618

1,466,409

Total current liabilities

104,367,590

55,929,942

Other long-term liabilities

282,666

565,338

Long-term-debt due to related parties, net of current portion

397,968

715,948

Notes payable, net of current portion, net of discount

3,193,306

Derivative liabilities

12,437,994

Operating lease liability, net of current portion

1,593,873

2,431,144

Total long-term liabilities

14,712,501

6,905,736

Total liabilities

119,080,091

62,835,678

Commitments and contingencies

Stockholders’ Equity:

Preferred Stock, $.001 par value: 5,000,000 shares authorized

Series A Convertible Preferred stock, $0.001 par value; 130,000 issued and outstanding as of May 31, 2022 and 2021

130

130

Series B Convertible Preferred stock, $0.001 par value; 820,800 and 840,000 shares issued and outstanding as of May 31, 2022 and 2021, respectively

821

840

Series C Convertible Preferred stock, $0.001 par value; 195 and none, issued and outstanding as of May 31, 2022 and 2021, respectively

Series D Convertible Preferred stock, $0.001 par value; 187 and none, issued and outstanding as of May 31, 2022 and 2021, respectively

Preferred Stock, Value

Common stock, $0.001 par value; 800,000,000 shares authorized; 687,196,478 and 393,742,663 shares issued and outstanding as of May 31, 2022 and 2021, respectively

687,197

393,743

Additional paid-in capital

292,155

4,906,384

Retained earnings

4,851,541

1,316,987

Total Stockholders’ Equity

5,831,844

6,618,084

Total Liabilities and Stockholders’ Equity

$

124,911,935

$

69,453,762

UNIQUE LOGISTICS INTERNATIONAL, INC.

ADJUSTED EBITDA (Non GAAP Measure)

For the Year Ended

For the Year Ended

31-May-22

31-May-21

Net income (loss)

$

(1,031,171)

$

1,725,497

Add Back:

Deemed dividend

4,565,725

Income tax expense

2,414,298

519,869

Depreciation and amortization

782,352

765,532

Stock-based compensation

91,666

Gain on forgiveness of promissory notes

(358,236)

1,147,856

Loss on extinguishment of convertible notes

564,037

(1,646,062)

Change in derivative liability

4,020,698

Factoring fees

27,000

4,471,540

Interest expense (including accretion of debt discount)

6,349,066

1,781,828

Adjusted EBITDA

$

17,333,769

$

8,857,726

SOURCE Unique Logistics International, Inc.


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