Transportation and Logistics Systems, Inc., through its subsidiaries, provides a full suite of logistics and transportation services.
The company specializes in ecommerce fulfillment, last mile deliveries, two-person home delivery, mid-mile, and long-haul services. Its active wholly-owned operating subsidiaries include Cougar Express, Inc. (Cougar Express), Freight Connections, Inc. (Freight Connections), JFK Cartage, Inc. (JFK Cartage), and Severance Trucking Co., Inc. (acquired in 2023, along...
Transportation and Logistics Systems, Inc., through its subsidiaries, provides a full suite of logistics and transportation services.
The company specializes in ecommerce fulfillment, last mile deliveries, two-person home delivery, mid-mile, and long-haul services. Its active wholly-owned operating subsidiaries include Cougar Express, Inc. (Cougar Express), Freight Connections, Inc. (Freight Connections), JFK Cartage, Inc. (JFK Cartage), and Severance Trucking Co., Inc. (acquired in 2023, along with Severance Warehousing, Inc. and McGrath Leasing, Inc., together Severance Trucking). The company operates several warehouse locations located in New York, New Jersey, Connecticut, and Massachusetts. Inactive subsidiaries include TLSS Acquisition, Inc. (TLSSA), Shyp CX, Inc. (Shyp CX), TLSS-FC, Inc. (TLSS-FC), and TLSS-STI, Inc. (TLSS-STI).
The company is primarily an asset-based point-to-point delivery company. An asset-based delivery company, as compared to a non-asset-based delivery company, owns its own transportation equipment and employs its own drivers. As of December 31, 2022, through the company's active subsidiaries, it owned approximately 32 vehicles consisting of trucks, box trucks and vans, 14 trailers, and 15 forklifts, while employing approximately 23 drivers.
In addition, the company's operations utilize the services of independent contractors, who generally use their own vehicles, on an as needed basis.
Cougar Express, JFK Cartage, Freight Connections, and Severance Trucking use a suite of non-proprietary software programs and other technologies to manage dispatching of vehicles, employees, DOT compliance, vehicle maintenance, and scheduling.
E-Commerce Fulfillment Solutions
The company has built its delivery services to perform effectively in the on demand shipping environment that is part of the e-commerce fulfillment solutions system. The company is looking to offer the expertise and knowledge it has in this area to new customers.
Strategy
The company's strategy is to be a leader in the transportation industry by providing on-time, high-quality pick-up, transportation, and long-haul, mid-mile and last-mile delivery services.
The key elements of the company's strategy are to understand the various segments of the end-to-end solutions required to deliver goods rapidly and accurately between the various pick-up and delivery points in the delivery chain; aim to be the premier platform and partner of choice for its customers; pursue value-enhancing strategic acquisitions; build upon strong customer relationships to expand organically; and expand its operations to other regions of the U.S.
Customers and Markets
For the year ended December 31, 2022, two customers accounted for 22.8% of the company's total net revenues (11.9% and 10.9%, respectively).
Seasonality
All of the company's revenues are subject to seasonal variations, which are common in the trucking industry. Generally, most of the first quarter and the latter part of the fourth quarter (year ended December 31, 2022) are the seasonally weakest while the second and third quarters are the seasonally strongest, as customers tend to reduce shipments prior to and after the winter holiday season.
Acquisitions
On August 4, 2022, the company's wholly-owned subsidiary, Cougar Express, closed on its acquisition of all outstanding stock of JFK Cartage., a New York-based full-service logistics provider specializing in pickup, warehousing, and delivery services in the tri-state area.
On August 17, 2022, the company formed a wholly-owned subsidiary, TLSS-FC, under the laws of the state of Delaware.
Effective September 16, 2022, the company's newly formed wholly-owned subsidiary, TLSS-FC, closed on an acquisition of all outstanding stock of Freight Connections, a New Jersey-based company offering an array of transportation, warehousing, consolidating, distribution, and local cartage services throughout the New York tri-state area.
On January 27, 2023, the company formed a wholly-owned subsidiary, TLSS-STI, under the laws of the state of Delaware.
Effective February 3, 2023, the company's newly formed wholly-owned subsidiary, TLSS-STI, closed on an acquisition of all outstanding stock of Severance Trucking (Severance Trucking Co., Inc., Severance Warehousing, Inc. and McGrath Trailer Leasing, Inc.), which offers less-than-truckload (LTL) trucking services throughout New England, with an effective date as of the close of business on January 31, 2023.
One of the sellers also entered into a consulting agreement, including non-competition and non-solicitation provisions, to continue with Severance Trucking after the acquisition for a period of no less than three months and no more than one year.
Disposition
On June 21, 2022, the company sold substantially all of the assets of Shyp FX, Inc. (Shyp FX) comprising transportation equipment and other equipment and the business of Shyp FX in an all-cash transaction.
Regulation
In the United States, the company's subsidiaries that operate as motor carriers have motor carrier licenses issued by the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT). In addition, the company's subsidiaries acting as property brokers have property broker licenses issued by the FMCSA.
The company's motor carrier subsidiaries and the third-party motor carriers must comply with the safety and fitness regulations of the DOT, including those related to drug-testing, alcohol-testing, hours-of-service, records retention, vehicle inspection, driver qualification and minimum insurance requirements. Other agencies, such as the U.S. Environmental Protection Agency (EPA), the Food and Drug Administration (FDA), and the U.S. Department of Homeland Security (DHS), also regulate the company's equipment, operations, and independent contractor drivers.
History
The company was formerly known as PetroTerra Corp. and changed its name to Transportation and Logistics Systems, Inc. in 2018.
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