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TLSS Chairman Issues Shareholder Update

Wednesday, 27 April 2022 08:00 AM

Transportation & Logistics Systems

JUPITER, FL / ACCESSWIRE / April 27, 2022 / Transportation and Logistics Systems, Inc. (OTCQB:TLSS), ("TLSS" or the "Company"), a logistics service provider, is pleased to issue the following quarterly update to its stakeholders from its Chairman and Chief Executive Officer, Mr. Sebastian Giordano, exactly three months after his initial letter dated January 27, 2022.

Dear Valued Stockholders and Investors,

Introduction

One month into the second fiscal quarter of 2022, our purpose in this communication is to provide you, as loyal supporters of the Company, with an update on the progress of our 2022 strategic plan. Coupled with that, I will address concerns expressed directly to me, via email and telephonically, by a number of you, with regard to the recent volatility and pricing pressure on the Company's stock price.

Recap

First, I want to reiterate the first part of my statement regarding the financial results recently reported in the Company's Form 10-K for the calendar year 2021 filed on March 31, 2022, where I stated:

"Undoubtedly, the highlight of this filing is that the Company received an unqualified audit opinion. Our significantly improved financial position was further evidenced by the fact that between December 31, 2020, and December 31, 2021, the Company reduced its liabilities by 95% from $20 million to $1 million; increased its shareholder equity by $24.5 million from a deficit of $16 million to equity of $8.5 million; and turned a $16.6 million working capital deficit into a positive working capital of $5.7 million, the latter a major contributing factor in resolving prior going concern issues..."

The Company has come a very, very long way. So, I wanted to reinforce the extent to which the Company's balance sheet, financial viability and liquidity have drastically improved. However, we are most certainly not done. In fact, we are actually just getting started.

Second, I think equally important is the second section of the quotation:

"Finally, during the first quarter of 2022, we took decisive actions to rectify internal control procedure issues through the efforts of our new CFO and established proper corporate governance with the addition of two new independent board members and the formation of the appropriate board committees. In our opinion, these factors clearly demonstrate the Company's ability and resolve to properly position the Company for growth."

No question remains in my mind that we need to, not only keep the Company on solid financial footing, but ensure absolute credibility, integrity and confidence in our systems, reporting and governance. In addition to the abovementioned steps taken in that direction, our new CFO, James Giordano, has been working tirelessly, since joining the Company, to evaluate and secure, new and upgraded operating and financial reporting systems ahead of anticipated acquisitions. The Company must be able to seamlessly integrate any new acquisitions into its financial system and to analyze operational performance and metrics on a detailed level to maximize asset utilization and profitability. Absent these systems, it would be a challenge to effectively leverage acquisitions and optimize potential integration cost savings.

Third, we set certain goals for Q1 and have completed all but one of those 90-day objectives, the development of a talent acquisition plan. This project was underway; however, we found it necessary to re-evaluate our human resource function, given changes stemming from our rapidly evolving operational environment. We expect to resume this initiative later this quarter.

M&A Activities

One of the central statements I made in my initial letter in January was that "the balance of 2022 will be driven, to a large degree, by what transpires in Q1 related to acquisitions…"

To clarify, this statement was not that the Company expected to close acquisitions in the first quarter, but that activities related to the sourcing, evaluation and negotiating of acquisition opportunities during the first quarter would dictate how the remainder of 2022 would unfold. We have repeatedly stated that the Company will formally announce only the signing of definitive agreements and/or the closing of any M&A transactions if, after full due diligence, they can be structured and consummated in the best interests of the Company. Nor, since we are engaged with many potential sellers, will we prematurely comment on any specific situation, as disclosing such could negatively affect our negotiating posture with these targets. What I can tell you unequivocally is that the majority of my time currently is focused on the pursuit and investigation of acquisition opportunities. We have a very significant potential deal-flow pipeline and are aggressively assessing each and every one of them. The M&A process is generally lengthy, where negotiations, drafting letters of intent and contracts, due diligence, securing financing, obtaining consents, etc. can take an inordinate amount of time, even under the best of circumstances. Even so, I am optimistic that the Company will see substantive progress on the M&A front in due course.

What's Ahead in Q2

The business objectives for the second quarter are straight-forward:

  • enter into definitive agreements on acquisition opportunities, where appropriate;
  • implement our new, upgraded operating and financial reporting systems;
  • resolve the warehouse space needs for our Cougar Express subsidiary;
  • continue to favorably resolve outstanding claims and litigation; and
  • improve operating margins.

Current Stock Price

Like you, the Company is unsure as to why the Company's stock has been hovering at, or just below, $0.01 since on, or about, April 12, 2022, or why it has declined in the past six months from approximately $0.02. Absent a few higher volume trading days, April 12, 2022 in particular, the average trading volume has been much lower during the most recent six months as compared to the immediately prior six months, and we have no information as to the cause or effect of this reduced volume. The Company was recently given a favorable outlook in one recent independent analyst's report. Such report, however, does not guarantee that the Company's stock will perform accordingly or that, as the implementation of the Company's go-forward business plan develops, the share price of its stock will rebound.

Simultaneously, the Company is keenly monitoring the situation as it relates to its OTCQB listing status and is working diligently to maintain it.

Concluding Thoughts

The Board and management remain highly optimistic about the Company's ability to meet its core objectives for 2022, which it believes will ultimately set the stage for achieving its longer-term aspirational goals. We will continue to update you as things progress.

Finally, on behalf of the Board of Directors and management, we extend our sincere appreciation to all of our shareholders and look forward to your continued support.

Respectfully yours,

Sebastian Giordano

Chairman and Chief Executive Officer

About Transportation and Logistics Systems, Inc.

TLSS, through its wholly owned operating subsidiaries, Cougar Express, Inc and Shyp FX, Inc., operates as a full-service logistics and transportation company.

For more information, visit the Company's website, www.tlss-inc.com.

Forward-Looking Statements

Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not directly or exclusively relate to historical facts. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "intend," "plan," "goal," "seek," "strategy," "future," "likely," "believes," "estimates," "projects," "forecasts," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology. These include, but are not limited to, statements relating to future events or our future financial and operating results, plans, objectives, expectations, and intentions. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these expectations may not be achieved. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our intentions, plans, expectations, assumptions, and beliefs about future events and are subject to known and unknown risks, uncertainties and other factors outside of our control that could cause our actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In addition to the risks described above, these risks and uncertainties include: our ability to successfully execute our business strategies, including integration of acquisitions and the future acquisition of other businesses to grow our company; customers' cancellation on short notice of master service agreements from which we derive a significant portion of our revenue or our failure to renew such master service agreements on favorable terms or at all; our ability to attract and retain key personnel and skilled labor to meet the requirements of our labor-intensive business or labor difficulties which could have an effect on our ability to bid for and successfully complete contracts; the ultimate geographic spread, duration and severity of the coronavirus outbreak and the effectiveness of actions taken, or actions that may be taken, by governmental authorities to contain the outbreak or ameliorate its effects; our failure to compete effectively in our highly competitive industry could reduce the number of new contracts awarded to us or adversely affect our market share and harm our financial performance; our ability to adopt and master new technologies and adjust certain fixed costs and expenses to adapt to our industry's and customers' evolving demands; our history of losses, deficiency in working capital and stockholders' equity and our ability to achieve sustained profitability; remaining weaknesses in our internal control over financial reporting and our ability to maintain effective controls over financial reporting in the future; our remaining liabilities and indebtedness could adversely affect our business, financial condition and results of operations and our ability to meet our payment obligations; unanticipated and materially adverse developments in our few remaining litigations; the impact of new or changed laws, regulations or other industry standards that could adversely affect our ability to conduct our business; and changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural or man-made disasters.

These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this letter. Given these uncertainties, you should not place undue reliance on these forward-looking statements and should consider various factors, including the risks described, among other places, in our most recent Annual Report on Form 10-K and in our Quarterly Reports on Form 10-Q, as well as any amendments thereto, filed with the Securities and Exchange Commission.

Investor Relations:

Landon Capital
Keith Pinder
(404) 995-6671
[email protected]
www.landoncapital.net

SOURCE: Transportation & Logistics Systems

Topic:
Company Update
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