Integrated Freight Announces Fiscal Second Quarter 2012 Financial Results

SARASOTA, FL--(Marketwire - Nov 25, 2011) - Integrated Freight Corporation ("Integrated Freight" or the "Company") (OTCQB: IFCR) (OTCBB: IFCR), a rapidly growing motor freight company providing long-haul, regional and local service to its customers in the U.S., today announced its financial results for its fiscal second quarter and six months ended September 30, 2011.

Fiscal Second Quarter and Six Month Highlights

• Revenue for the second quarter increased 144.7% to $11.8 million
• Revenue for the six months ended September 30, 2011 increased 158.6% to $24.8 million
• Net cash provided by operating activities for the six months ended September 30, 2011 increased sharply to $946,485 versus $109,430 for the same period last year

"We achieved strong revenue growth for the second quarter and first half of the year as we better positioned the business for growth," stated Paul Henley, Chief Executive Officer of Integrated Freight. "Our net cash flow from operations increased significantly to $946,485 in the first half compared to $109,430 in the same period last year. Our strong cash flow from operations will allow us to finance our organic growth as we evaluate strategic acquisitions in our industry. During the first half of the year, we completed the acquisition of Cross Creek Trucking, our fourth subsidiary company, and saw increases in freight revenue and are encouraged by our profitability with Integrated Freight Services, our freight brokerage that we launched in March."

Fiscal Second Quarter Results

Revenues for the fiscal second quarter ended September 30, 2011 increased 144.7% to $11.8 million from $4.8 million in the same quarter last year. The increase is due primarily to the acquisition of Cross Creek Trucking, Inc. on April 1, 2011, positive effects from the Company's growing brokerage operations, and an increase in freight revenue in correlation to the U.S. economy.

Operating expenses for the fiscal second quarter ended September 30, 2011 increased 132.5% to $11.8 million compared to $5.1 million for the three months ended September 30, 2010. The increase was less than the increase in revenue for the quarter and is due to increased fuel costs and transaction costs in connection with the acquisition of Cross Creek Trucking as well as higher wages, salaries and benefits and General and Administrative expenses. General and administrative costs for the three months ended September 30, 2011 increased 147% to $1.2 million compared to $468,902 for the same period a year ago. Fuel and fuel taxes for the three months ended September 30, 2011 increased 227.1% to $4.0 million, compared to $1.2 million for the three months ended September 30, 2010. Wages, salaries and benefits increased 188.5% to $3.8 million for the three months ended September 30, 2011 compared to $1.3 million for the same period last year.

The Company reported a net loss of $1.4 million for the fiscal second quarter ended September 30, 2011, or $0.04 per diluted share, compared to a net loss of $ 301,795, or $0.01 per diluted share, for the three months ended September 30, 2010, an increase of $1.1 million. The increase was primarily due to fuel cost increases, higher expenses associated with the acquisition of Cross Creek Trucking, Inc. and higher operating and interest expenses.

Six Month Results

Revenue for six months ended September 30, 2011 increased 158.6% to $24.8 million from $9.6 million in the six months ended September 30, 2010. Operating expenses for the six months ended September 30, 2011 increased 162.6% to $26.7 million compared to $10.2 million for the six months ended September 30, 2010. Operating loss for the six months ended September 30, 2011 widened to $1.9 million from $566,342 for the six months ended September 30, 2010. The increase was due to the acquisition of Cross Creek Trucking, Inc. and included $795,000 of transactions costs related to the acquisition as well as an increase in fuel costs. The Company reported a net loss of $4.3 million for the six months ended September 30, 2011, or $0.12 per diluted share, compared to a net loss of $854,088, or $0.04 per diluted share, for the six months ended September 30, 2010, an increase of $3.4 million.

Financial Condition

As of September 30, 2011, the Company had no cash nor cash equivalents versus cash and cash equivalents of $54,158 as of March 31, 2011. Total liabilities and stockholders' deficit was $19.1 million as of September 30, 2011 versus total liabilities and stockholders' deficit of $7.8 million for the period ended March 31, 2011. Net cash provided by operating activities for the six months ended September 30, 2011 was $946,485 compared to $109,430 for the six months ended September 30, 2010.

Business Outlook

"We are confident about the prospects for our business for the remainder of the year as we execute our growth and integration strategy," stated Mr. Henley. "We made considerable strides in the first half of the year. We are achieving cost savings and efficiencies through the elimination of overlapping lanes, better customer utilization and lowering our fleet maintenance costs through bulk buying and nationwide service contracts. Our network of subsidiary companies is benefitting from our state-of-the-art trucking technology platform, which is helping us run more efficiently while controlling overhead. We are excited by the growth prospects for our business going forward and see solid opportunities to acquire additional niche trucking players and integrate them into our growing network."

About Integrated Freight Corporation

Integrated Freight Corporation (OTCBB: IFCR) is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry and refrigerated truckload services, operating primarily in well-established traffic lanes in the Upper Midwest, Pacific Northwest, Texas, California and the Atlantic seaboard. Integrated Freight was formed for the purpose of acquiring and consolidating operating motor freight companies and incorporated in the state of Florida in 2008. Integrated Freight's mission is to build a safe, reliable, high-quality national freight carrier and customized logistics service with a diverse customer base that is well-positioned in growing profitable markets. For more information, please visit http://www.integrated-freight.com.

To be added to the Company's email distribution for future news releases, please send your request to andrew@hamptongrowth.com.

Safe Harbor Statement

The foregoing press release contains forward-looking statements, including statements regarding the company's expectation of its future business and earnings, subject to the safe-harbor provisions for forward-looking statements provided in the Securities Exchange Act and the regulations there under. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the company's control. Actual results could differ materially from these forward-looking statements. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at www.sec.gov.

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.

INTEGRATED FREIGHT CORPORATION
Consolidated Statements of Operations
		(Unaudited)								(Unaudited)
		Three Months Ended								Six Months Ended
		September 30,								September 30,
		2011				2010				2011				2010
Revenue		$	11,788,506			$	4,817,249			$	24,824,586			$	9,598,297
Operating Expenses
	Rents and transportation		1,930,753				1,226,521				3,960,234				2,262,307
	Wages, salaries and benefits		3,795,945				1,315,857				7,811,498				2,641,756
	Fuel and fuel taxes		4,018,311				1,228,521				8,941,850				2,649,018
	Depreciation and amortization		546,246				600,959				1,807,582				1,181,739
	Insurance and claims		130,478				200,621				410,049				392,243
	Operating taxes and licenses		264,501				52,562				682,904				93,466
	General and administrative		1,158,311				468,902				3,078,177				944,110
Total Operating Expenses			11,844,545				5,093,943				26,692,294				10,164,639
Loss from continuing operations			(56,039	)			(276,694	)			(1,867,708	)			(566,342	)
(Loss)/Gain from discontinued operations			(0	)			130,938				(420,756	)			141,920
Other Income (Expense)
	Gain/(loss) on change of fair value of derivative liability		207,936				-				181,119				(60,000	)
	Interest		(1,196,127	)			(138,900	)			(2,129,945	)			(480,432	)
	Interest - related parties		(136,815	)			(47,329	)			(19,848	)			(87,227	)
	Other income (expense)		(220,614	)			20,851				(21,737	)			182,963
Total Other Income (Expense)			(1,345,620	)			(165,378	)			(1,990,411	)			(444,696	)
Net loss before noncontrolling interest			(1,401,659	)			(311,134	)			(4,278,875	)			(869,118	)
Noncontrolling interest share of subsidiary net income (loss)			3,804				9,339				13,247				15,030
Net loss		$	(1,397,855	)		$	(301,795	)		$	(4,265,628	)		$	(854,088	)
Net loss per share - basic and diluted
	Loss from continuing operations	$	(0.03	)		$	(0.00	)		$	(0.11	)		$	(0.05	)
	Loss from discontinued operations		(0.01	)			0.01				(0.01	)			0.01
	Net loss per common share-basic and diluted	$	(0.04	)		$	(0.01	)		$	(0.12	)		$	(0.04	)
Weighted average common shares outstanding - basic and diluted			37,935,422				22,166,759				36,332,331				21,089,749
	See notes to consolidated financial statements.

INTEGRATED FREIGHT CORPORATION
Consolidated Balance Sheets
		September 30, 2011(Unaudited)				March 31, 2011
Assets
Current assets:
	Cash	$	-		$	54,158
	Accounts receivables, net of allowance for doubtful accounts of $50,000		4,620,823			2,564,352
	Prepaid expenses and other assets		702,701			545,930
Total current assets			5,323,524			3,164,440
Property and equipment, net of accumulated depreciation			12,278,607			4,141,068
Intangible assets, net of accumulated amortization			1,425,093			268,785
Assets of discontinued operations			28,469			236,279
Total assets		$	19,055,693		$	7,810,572
Liabilities and Stockholders' Deficit
Current liabilities:
	Bank overdraft	$	453,941		$	214,303
	Accounts payable		1,991,360			1,151,337
	Accrued expenses and other liabilities		4,261,978			1,112,778
	Line of credit		2,237,565			895,153
	Notes payable - related parties		1,150,775			1,180,987
	Current portion of notes payable		5,846,300			2,709,111
Total current liabilities			15,941,919			7,263,669
	Derivative liability		124,352			513,471
	Notes payable - related parties		4,007,633			120,000
	Notes payable, net of current portion and debt discount		4,957,667			4,235,242
	Liabilities of discontinued operations		1,893,269			1,765,313
Total long-term liabilities			10,982,921			6,634,026
Total liabilities			26,924,840			13,897,695
Stockholders' deficit:
	Common stock, $0.001 par value, 2,000,000,000 shares authorized, 38,472,089 and 31,574,883 shares issued and outstanding at June 30, 2011 and March 31, 2011, respectively		38,471			31,575
	Additional paid-in capital		8,490,614			6,013,911
	Accumulated deficit		(16,754,409	)		(12,475,539	)
Total Integrated Freight Corporation stockholders' deficit			(8,225,324	)		(6,430,053	)
	Non controlling interest		356,177			342,930
Total stockholders' deficit			(7,869,147	)		(6,087,123	)
Total liabilities and stockholders' deficit		$	19,055,693		$	7,810,572
	See notes to consolidated financial statements.

INTEGRATED FREIGHT CORPORATION
Consolidated Statements of Cash Flows
						Six Months Ended
						September 30,
						(Unaudited)
Cash flows from operating activities:						2011				2010
		Net loss				$	(4,278,875	)		$	(854,088	)
		Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
			Depreciation and amortization				1,807,582				1,181,739
			Debt discount amortization				49,597				169,012
			Common stock issued in payment of derivative				208,000				-
			Derivative liability				(389,119	)			60,000
			Warrants issued for interest				101,280				-
			Loss on asset dispositions				449,982				6,744
			Noncontrolling interest in earnings of subsidiary				13,247				(15,030	)
			Stock issued for stock based compensation				6,500				5,746
			Warrants issued for services performed				79,600				-
			Stock issued for interest				293,219				-
			Stock issued for services				322,500				-
			Loss from discountinued operations				420,756				-
			Increases/decreases in operating assets and liabilities								-
				Accounts receivable			38,623				(330,013	)
				Prepaid expenses and other assets			(75,285	)			(26,842	)
				Accounts payable			(41,128	)			57,677
				Accrued and other liabilities			1,940,006				(41,093	)
	Net cash (used) in/provided by operating activities						946,485				213,852
Cash flows from investing activities:
	Trade-in of property and equipment						-				50,760
	Purchase of discontinued operations-Triple C						-				(100,000	)
	Net cash used in investing activities						-				(49,240	)
Cash flows from financing activities:
	Repayments of notes payable						(2,734,882	)			(715,374	)
	Proceeds of notes payable						796,916				559,000
	Net proceeds/(repayments) from line of credit						665,185				(5,143	)
	Bank overdraft						239,638				85,565
	Proceeds from exercise of warrants/sale of stock						32,500				5,000
	Net cash (used) in/provided by financing activities						(1,000,643	)			(70,952	)
	Net change in cash						(54,158	)			93,660
Cash, beginning of period							54,158				48,101
Cash, end of period						$	-			$	141,761
		See notes to consolidated financial statements.