Executive Summary

Q1 2019 preliminary, unaudited results: Revenue $22.091M and diluted EPS to common stockholders $0.34; operating margin improved to 3.4% from roughly breakeven in prior quarters . Gross margin expanded to ~28.9% vs 23.3% in Q3 2018 and 23.8% in Q2 2018, driven by mix and manufacturing strength .
Management completed analysis related to ASC 605-45 principal-agent considerations; anticipated non-cash adjustments are not expected to impact net income, EPS, cash flows, net revenues, or EBITA (non-GAAP) .
Auditor transition (Crowe LLP dismissed; Prager Metis appointed) and delayed 10-K/10-Q filings remain the near-term stock narrative; filing restated financials/timely reporting is the likely catalyst .
Liquidity usage rose: line of credit outstanding increased to $11.338M as of Dec 31, 2018 (from $7.994M at Jun 30, 2018 and $6.643M at Mar 31, 2018) amid working capital needs and acquisitions .

What Went Well and What Went Wrong

Gross margin strengthened (~28.9%) as forwarding expenses and manufacturing COGS scaled favorably; SG&A discipline kept operating income positive at $0.758M .
Manufacturing segment revenue rose to $3.521M (vs $2.431M in Q3 2018 and $2.175M in Q2 2018), reflecting portfolio accretion from Aves/Antibodies .
Management emphasized that restatement adjustments will be non-cash and “do not have any impact on net income, earnings per share or cash flows,” and “do not impact net revenues or EBITA,” supporting the underlying operating story .

Filing delays and restatements tied to ASC 605-45; prior periods no longer reliable until restated, which constrains investor visibility and may pressure sentiment .
Auditor turnover (Crowe LLP dismissed; Prager Metis appointed) adds process risk until audits complete .
Working capital deficit persisted; current liabilities exceeded current assets by ~$7.27M at Dec 31, 2018 (current assets $29.341M vs current liabilities $36.611M) .

Metric	Q2 2018 (Mar 31)	Q3 2018 (Jun 30)	Q1 2019 (Dec 31)
Revenue ($USD Millions)	$20.355	$22.499	$22.091
Diluted EPS to Common ($USD)	$0.17	$0.21	$0.34
Gross Margin ($USD Millions)	$4.842	$5.248	~$6.376 (calc from revenue, forwarding expenses, mfg COGS)
Gross Margin %	~23.8% (4.842/20.355)	~23.3% (5.248/22.499)	~28.9% (6.376/22.091)
Operating Income ($USD Millions)	$(0.140)	$0.016	$0.758
Operating Margin %	~−0.7%	~0.1%	~3.4%
SG&A ($USD Millions)	$4.781	$5.031	$5.410
SG&A as % of Revenue	~23.5% (4.781/20.355)	~22.4% (5.031/22.499)	~24.5% (5.410/22.091)

Segment revenue breakdown:

Segment Revenue	Q2 2018	Q3 2018	Q1 2019
Global Logistics Services ($USD Millions)	$18.180	$20.068	$18.570
Manufacturing ($USD Millions)	$2.175	$2.431	$3.521

Balance sheet snapshot:

Metric	Mar 31, 2018	Jun 30, 2018	Dec 31, 2018
Line of Credit ($USD Millions)	$6.643	$7.994	$11.338
Current Assets ($USD Millions)	$16.847	$20.475	$29.341
Current Liabilities ($USD Millions)	$23.698	$28.236	$36.611

Notes: Q1 2019 figures are preliminary unaudited and subject to change as audits complete .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 2019	Not provided	Not provided	Maintained (no formal guidance)
Margins (Gross/Operating)	FY/Q1 2019	Not provided	Not provided	Maintained (no formal guidance)
OpEx, OI&E, Tax Rate	FY/Q1 2019	Not provided	Not provided	Maintained (no formal guidance)
Dividends	FY/Q1 2019	Preferred dividends ongoing	Preferred dividends ongoing	Maintained

Company did not issue quantitative guidance in the period; disclosures focused on accounting remediation and auditor transition .

(No earnings call transcript filed for Q1 2019; themes drawn from filings.)

Topic	Previous Mentions (Q2 2018 and Q3 2018)	Current Period (Q1 2019)	Trend
Acquisition integration, marketing investments	Integration and marketing programs pressured near-term margins; SG&A up on integration and stock comp	Focus shifted to accounting review and auditor change; operations reported preliminarily	From operating integration to accounting remediation
Tax reform impact	One-time tax benefit recognized; lower corporate rate	No new tax items noted beyond normal provision	Stable
Internal controls and material weaknesses	Material weaknesses identified; remediation plan underway	Auditor change disclosed; prelim results not reviewed by new auditor yet	Remediation continuing; auditor transition
Liquidity/credit facilities	Santander facility amended; First Merchants/First Northern loans support segments	Line of credit usage increased; working capital tight	Higher revolver utilization
Revenue recognition (principal-agent)	Described segment revenue policies and non-GAAP focus on net revenue/gross margin	Completed analysis of ASC 605-45; restatements non-cash, no impact on net income/EPS/EBITA	Resolution nearing

“The expected non-cash adjustments do not relate to the Company's operating performance and do not have any impact on net income, earnings per share or cash flows. Additionally, the anticipated adjustments do not impact net revenues...or EBITA.”
“The Company dismissed its principal independent registered public accounting firm, Crowe LLP, and appointed… Prager Metis CPAs, LLC… the financial information… has not been reviewed… preliminary unaudited financial results… are subject to change…”
Forward-looking emphasis on remediation of weaknesses in internal controls and re-establishing timely financial reporting “as soon as practicable.”

(No call transcript filed; key clarifications from filings)

Restatement scope and timing: Prior quarters and fiscal years identified for restatement due to ASC 605-45 principal-agent considerations; timeline not certain, but analysis completed and adjustments determined .
Impact of adjustments: Management states adjustments are non-cash and will not affect net income, EPS, cash flows, net revenues, or EBITA (non-GAAP), reducing risk of underlying economic changes to model .
Auditor transition/financial review status: New auditor appointed; Q1 2019 preliminary numbers not yet reviewed, subject to change post audit completion .

Wall Street consensus (S&P Global) for Q1 2019 EPS and revenue was unavailable for JANL at the time of this analysis; no estimate comparison is presented. Values would be retrieved from S&P Global if available.*

Underlying operating performance improved: gross margin expansion to ~28.9% and positive operating income provide evidence of operating traction despite accounting review noise .
Manufacturing mix is an upside lever: segment revenue growth to $3.521M supports consolidated gross margin resilience and diversification benefits .
Near-term stock catalyst is process-driven: completion of audits, filing restated 10-K/10-Q, and reestablishing timely reporting should reduce uncertainty discounts .
Risk flag: working capital deficit and rising revolver utilization warrant monitoring until restatements are filed and collections normalize .
Non-GAAP frame intact: management explicitly states restatement adjustments will not affect net revenues/gross margin or EBITA, preserving key performance metrics used by the company .
Watch SG&A trajectory: investments in integration/marketing previously pressured margins; sustaining recent efficiency while supporting growth will be key .
Trading stance: headlines around restatement/auditor transition likely dominate; confirmation of “no impact” on earnings metrics through audited filings could be a positive inflection point .

Footnote: *S&P Global consensus unavailable for Q1 2019; attempted retrieval was unsuccessful.