SkyPostal Networks, Inc. Announces second quarter results
SkyPostal announced financial results for the second quarter of 2008. Net income was USD 378,487 principally due to nonrecurring credits resulting from the reversal of excess of value of put options over estimated fair value of the company’s shares.
The results include sales of USD 2,091,313 versus the previous year’s second quarter revenues of USD 2,143,959. For the 6 months ended June 30, 2008, sales totaled USD 4,532,113 or a 16.5pct increase over the same 6 month period ended June 30, 2007. After producing a 39.7pct increase in sales in the first quarter over the same period 2007, the second quarter results indicate a softening in the growth of international mail resulting from the overall US economic slowdown.
Total tonnage handled increased by 20pct for the 6 months ended June 30, 2008 versus the same period ended June 30, 2007.
Gross margin decreased from 23.9pct in the first half of 2007 to 17.2pct in the first half of 2008. Margins were principally affected by a 29pct increase in air transport costs resulting from the current fuel surcharge increases passed along by the airlines. “As with all international mail operators, the high fuel surcharges imposed by the airlines during the second quarter could not be immediately passed along to our contracted mail clients,” states Albert P. Hernandez, SkyPostal’s President and CEO. “With the increase in fuel surcharges upwards of 30pct , we are exploring ways to recover some of these incredibly high surcharges which have been unprecedented in our industry.”
Although financial results reflected increased tonnage and revenue for the six months ended June 30, 2008, net loss for the first half 2008 totaled USD 641,234 or USD .02 per share. The net loss increase was in part due to nonrecurring and noncash expenses.
The opening up of a sort facility at Newark Airport coupled with the Company’s recently signed agreement with DHL Global Mail will permit SkyPostal to expand its mail delivery service to Europe. In addition, the company is introducing a service targeted at US internet marketers that will permit them to market their products to upscale LAC consumers by eliminating the costly risks of shipping by parcel post via the public UPU Public Postal Network.
SkyPostal anticipates continued growth in the balance of the year, expecting to increase its market share of the nontime critical mail delivery segment through several acquisition opportunities.
Mr. Hernandez adds, “We anticipate being able to substantially grow SkyPostal in the second half through several targeted acquisitions, introduction of service to Europe, introduction of new mailing solutions to LAC for internet marketers and the roll out of our GPS-PDA units, which will provide SkyPostal with a decidedly unique advantage over the state-owned public postal networks by offering automatic confirmation of delivery on mail at a fraction of the cost charged by Express operators.”
