Unique Logistics International Reports 83.4% Revenue Growth, Net Loss of $2.1 Million for Quarter Ended August 31, 2024

Unique Logistics International, Inc. reported significant financial performance improvements for the three months ended August 31, 2024, with total revenues reaching $115.2 million, a 83.4% increase from $62.9 million in the same period last year. The company's airfreight services generated $47.2 million, up from $19.1 million, while ocean freight services saw revenues of $57.1 million, compared to $30.7 million in the prior year. Despite these gains, the company recorded a net loss of $2.1 million, slightly improved from a net loss of $2.3 million in the previous year.

The financial results reflect a substantial increase in accounts receivable, which rose to $61.2 million from $38.6 million, indicating a ramp-up in sales. Contract assets also increased significantly, from $4.0 million to $9.4 million. The company's total assets grew to $133.5 million, up from $103.3 million, driven by higher current assets and goodwill, which increased to $23.8 million from $20.5 million. However, total liabilities also rose sharply to $125.1 million from $92.9 million, primarily due to increased accounts payable and a revolving credit facility that expanded to $22.8 million from $13.1 million.

Strategically, Unique Logistics has been focusing on expanding its service offerings and geographic reach. The company reported a notable increase in revenues from key regions, with China, Hong Kong, and Taiwan contributing $31.4 million, up from $18.6 million, and the India subcontinent generating $28.2 million, compared to $6.7 million in the previous year. This geographic expansion is part of the company's strategy to enhance its market share in the global logistics sector.

Operationally, Unique Logistics is navigating challenges related to cash flow, as evidenced by a net cash used in operating activities of $10.2 million during the quarter. The company is actively exploring various strategies to improve its liquidity position, including potential equity financing and extending the terms of existing debt. As of August 31, 2024, the company had approximately $3.5 million in cash and $2.2 million available under its TBK Facility, which was temporarily increased to $30 million to support operations.

Looking ahead, Unique Logistics remains cautious about its financial outlook. The company acknowledges substantial doubt about its ability to continue as a going concern without securing additional capital. Management is evaluating multiple strategies to enhance liquidity and is optimistic that current cash reserves and available credit will support operations for at least the next 12 months. However, the success of these strategies is uncertain, and the company may need to take further actions to ensure its financial stability.