CDV CD & L S2

CD&L Reports 15% Year Over Year Revenue Growth * EBITDA Up by More Than 40% * SOUTH HACKENSACK, N.J., May 20 /PRNewswire-FirstCall/ -- CD&L, Inc. , announced first quarter 2004 revenue of $46,482,000, which is $6.2 million higher than the same three months in 2003. Net income was $169,000 or $.02 per basic common share compared to net income for the same 2003 period of $606,000 or $.08 per basic common share. The 2003 net income included a $1,034,000 pre-tax gain on the sale of the Sureway note receivable. The Company's Group President, Michael Brooks, said "CD&L's cost of goods sold as a percentage of revenue had improved resulting in a gross profit margin of 18.5% for the three months just ended compared to the 2003 first quarter gross margin of 18.0%. Our Company's SG&A expense increased partially as a result of the Company's increased revenue, but remained flat at 16.2% of revenue." Russ Reardon, the Company's CFO, stated that "the Company's earnings before interest, depreciation, amortization and taxes ("EBITDA") reached $1,063,000 in the first quarter 2004 versus the same quarter of 2003 of $736,000 representing an improvement of 44.4%." CD&L, Inc. operates 70 facilities in 21 states providing last mile delivery solutions to various industries. The Company has over 1,493 employees and utilizes approximately 2,450 independent contractors to provide time-sensitive delivery services to thousands of customers across the country. Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities and Exchange Act of 1933. These forward-looking statements include comments on the Company's improved operating performance, business development program, and increased revenues and earnings. Statements regarding future developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statements. Potential risks include the risk that the Company's operating performance will not improve, or that its business development program will be unsuccessful, or that revenues or earnings will decrease as well as other risks specified in the Company's SEC filings. CD&L, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) For the Three Months Ended March 31, 2004 2003 Revenue $46,482 $40,307 Cost of revenue 37,884 33,043 Gross profit 8,598 7,264 Costs and Expenses: Selling, general, and administrative expenses 7,535 6,528 Depreciation and amortization 221 217 Other (income), net (11) (1,101) Interest expense 571 610 Total Costs and Expenses 8,316 6,254 Income before provision for income taxes 282 1,010 Provision for income taxes 113 404 Net income $169 $606 Net income per share: Basic $.02 $.08 Diluted $.02 $.07 Basic weighted average common shares outstanding 7,659 7,659 Diluted weighted average common shares outstanding 8,238 8,170 CD&L, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share information) March 31, December 31, 2004 2003 (Unaudited) (Note 1) ASSETS CURRENT ASSETS: Cash and cash equivalents $697 $1,697 Accounts receivable, net 18,738 18,786 Prepaid expenses and other current assets 2,940 4,068 Total current assets 22,375 24,551 EQUIPMENT AND LEASEHOLD IMPROVEMENTS, net 1,279 1,446 GOODWILL, net 11,531 11,531 INTANGIBLE ASSETS AND DEFERRED FINANCING COSTS, net 1,956 437 OTHER ASSETS 1,062 2,387 Total assets $38,203 $40,352 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings $3,799 $5,767 Current maturities of long-term debt 2,043 2,585 Accounts payable, accrued liabilities and bank overdrafts 14,981 14,392 Total current liabilities 20,823 22,744 LONG-TERM DEBT, net of current maturities 11,395 11,785 OTHER LONG-TERM LIABILITIES 233 240 Total liabilities 32,451 34,769 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value; 2,000,000 shares authorized; no shares issued and outstanding - - Common stock, $.001 par value; 30,000,000 shares authorized; 7,688,027 shares issued at March 31, 2004 and December 31, 2003 8 8 Additional paid-in capital 12,883 12,883 Treasury stock, 29,367 shares at cost (162) (162) Accumulated deficit (6,977) (7,146) Total stockholders' equity 5,752 5,583 Total liabilities and stockholders' equity $38,203 $40,352 DATASOURCE: CD&L, Inc. CONTACT: Russell Reardon, CFO, CD&L, Inc., +1-201-487-7740

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