AutoInfo Inc., a nonasset-based third-party logistics service provider, announced results of its operations for the year ended Dec. 31, 2009. The company reported gross revenues of $183.9 million as compared with $180.2 million for the prior year. Gross profit was $37.2 million as compared with $31.7 million. The company reported net income of $1.4 million as compared with $2.2 million.
“2009 was a most challenging year,” said Harry Wachtel, president of the Boca Raton, Fla.-based company. “The downturn in the economy impacted operating results. In 2009, we modified our contractual relationship with one of our significant independent agents, which had the effect of increasing commission expense offset by interest income and fees on advances and loans to this agent. Given an increase in shipping volume during the fourth quarter of 2009 and 2010 year to date, we are cautiously optimistic looking forward. We are poised to capitalize in an improved business environment, and we will continue our agent network expansion efforts and seek out strategic growth opportunities.”
Through 2008, AutoInfo Inc. operated in one business segment. During 2009, the company determined it operated in two business segments, nonasset-based transportation services and agent support services. The nonasset-based transportation services segment includes its brokerage and contract carrier services, which are provided through a network of independent sales agents throughout the United States and Canada. Revenue in this segment is generated from freight transportation transactions. The agent support services segment includes an array of services that the company provides to its agent network to support and encourage the expansion of agents’ businesses, primarily financial support through interest-bearing long-term loans and noninterest-bearing short-term loans, as well as other services including training, margin analysis, marketing assistance, industry and market segment data and business analysis tools. Revenue in this segment consists primarily of interest on interest-bearing loans. This segment also includes potential revenues related to profit participations and realization on options to acquire equity that the company may receive related to a loan or advance extended to an agent.
