Last Mile Logistics Group, Inc. (OTCBB: LMLG) reported an increase of 37% in revenues for the first quarter of 2008. This prosperous increase follows last year’s increase of 47% compared to the fourth quarter of 2006. Although fuel costs have increased dramatically in the past couple of months, the company’s gross margin also increased in the first quarter of 2008 by 26%, totaling $230,207. This increase is attributed to the growth in revenue and fuel surcharge agreements with customers to offset these cost increases.
Increases in revenue are attributed to business from a major new client for the home delivery of cabinets, as well as several other new customers in 2007. Despite an economic slowdown, the company has benefited from the continued outsourcing by companies to reduce their cost structure, combined with continued online purchasing of goods and electrics, which is dependent on a distribution channel that includes regional “last mile” specialized services.
“As we continue to focus on providing quality last mile services and marketing these capabilities, we are seeing a significant improvement in revenue as companies continue to look to outsource their logistics requirements to dependable last mile providers in order to better service their customers’ home delivery needs,” stated Regina Flood, CEO of Last Mile Logistics Group.
Last Mile provides envelope and small package courier services along with services in the mid-Atlantic region of the United States. Specific services include door-to-door delivery of merchandise, including furniture, electronics, entertainment equipment, and the assembly and installation of products.
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