Naples, FL | February 15, 2023 07:24 PM Eastern Standard Time
The logistics industry remains the backbone of most forms of commerce in the world and hence, companies involved in that sector often attract attention from investors in a big way. A company involved in the sector that has been doing stellar work for quite a while is Transportation and Logistics Systems Inc (OTC:TLSS).
As the name suggests, it is a transpiration and logistics firm it operates in the United States. The company conducts most of its operations through its subsidiary units. The company offers a wide range of services, which include two-person home delivery, last-mile delivery, e-commerce fulfillment, pickup and warehousing services, and mid-mile and long-mile services. At the end of the 2021 calendar year, the company owned a total of 17 vehicles. It is based out of Jupiter in Florida.
On February 6, Transportation and Logistics Systems announced that its fully owned subsidiary unit TLSS-STI Inc had managed to complete the acquisition of the entirety of the outstanding stock in Severance Trucking Co Inc, McGrath Trailer Leasing Inc, and Severance Warehousing Inc. The companies collectively form Severance and are based out of Dracut in Massachusetts.
The Chief Executive Officer of Transportation and Logistics Systems, Sebastian Giordano, spoke about the latest acquisition as well. He noted that over the course of more than a hundred years, several generations of a single family had managed to build Severance into a company of impeccable reputation. He went on to note that he was thrilled at the possibility of many members of the Severance family are going to remain and joining hands so as to grow the combined business.
The total cost of the acquisition stood at $2,250,000 and also included closing expenses to the tune of $10,747. At the closing of the transaction, TLSS-STI paid $365,613 in the form of cash, took over and paid off vehicle debt worth $152,748, and got into a secured promissory note with the seller bearing the value of $1,572,939.
The promissory note is going to carry an annual interest rate of 12%. The entirety of the unpaid principal of the promissory note is supposed to be paid off in three installments on August 1, 2023, February 1, 2024, and August 1, 2024.
Back on January 26, 2023, Giordano provided an update to the stakeholders of Transportation and Logistics Systems. Some of the highlights from the list of updates include the expansion of the board of directors and enhanced corporate governance.
The company further strengthened its executive team in the fields of human resources, operations, and finance. The company also managed to complete the acquisitions of Freight Connections and JFK Cartage. It was also noted that Transportation and Logistics Systems was in negotiations for two more acquisitions.
Last November, Transportation, and Logistics Systems announced its financial results for the three-month and nine-month periods, both of which ended on September 30, 2022. The revenues came in at $1,700,000 and that reflected a year-on-year rise of as much as 40.9%. The company noted at the time that such a change of fortunes was primarily driven by the acquisitions of Freight Connections and JFK Cartage.
The losses suffered in the quarter stood at $1,016,000, which was actually a significant drop from the losses of $1,896,000 suffered in the prior year period.
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