Transportation & Logistics Systems (OTCQB:TLSS)
ATLANTA , GA, UNITED STATES , April 25, 2022 /EINPresswire.com/ — Transportation & Logistics Systems, Inc., a logistics industry-focused company, seeks to accelerate its revenue and profit growth primarily through strategic acquisitions. With a current revenue run rate of $5 million, TLSS specializes in pickup, warehousing, and delivery, servicing approximately 50 commercial accounts, utilizing its own fleet and third-party providers, as needed. Although the segment of the transport and logistics industry served by the Company is growing rapidly due to increases in online commerce, the Company expects significant growth in 2022 to be driven in large part by acquisitions.
The Company underwent a major restructuring starting in 2020, led by Sebastian Giordano, who recently joined the Company as its CEO in January 2022. Giordano has already positioned the Company for long-term growth, having eliminated nearly $30 million of debt and liabilities over the last two years and now has the Company debt-free. Moreover, Giordano has developed an aggressive growth-through-acquisition strategy that is currently being pursued, evidenced by a substantial potential pipeline of acquisition opportunities in various stages of evaluation and discussion. Cash on hand is adequate to last until mid-2023, excluding any future deals currently in the works.
TLSS has reached an inflection point and should have a positive growth rate year over year by Q4 of this year. Even if the Company posts losses until Q4 2023, the discounted future earnings are still expected to generate EPS by 2028. This is a conservative projection. TLSS seeks to achieve profitability in 2022, with aspirational goals of a $100 million revenue run rate by the end of 2022 and a market cap of $200 million in 3-5 years. Potential roadblocks include access to deal flow (although the transportation market is rebounding), and potential difficulties filling empty driver positions.
TLSS’s MC/sales and EV/sales are at a 32% and 7% premium, respectively. The stock currently trades at a 7% premium relative to its competitors, and yet its share price is still undervalued.
Litchfield forecasts double or triple-digit quarterly growth for the remainder of 2022 and into 2023 and believes that 4Q21 was a turning point. TLSS’s current financial position, combined with a highly qualified independent board and strong management team, including the recent addition of new Chief Executive Officer Giordano and a CFO with significant industry experience, suggests that the company will achieve transformational growth.
While the Company’s stock has experienced a significant amount of volatility and pricing pressure in the market as of late, we do not believe that this is an accurate reflection of the Company’s current state or future prospects. In our opinion, having handled investor relations for many microcap and small cap companies, we at Landon Capital believe that there are great things on the horizon for this Company and for you, the supportive shareholders of TLSS.
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Safe Harbor Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Landon Capital received no direct compensation related to this release, although Landon Capital does hold a position in the company covered above, and as noted, is a paid advisor to the company. This release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. We assume no obligation to update the information included in this press release, whether because of new information, future events or otherwise. Forward-looking statements in this release based on information available to us as of the date hereof. Actual results may differ materially from those stated or implied in such forward-looking statements. Some of the risks and circumstances that may cause actual results to differ from those stated or implied above are set forth in the Risk Factors section of the company’s Annual Report 10-K for the 2021.