RLGT
$3.73
Radiant Logistics
$.15
4.19%
Earnings Details
2nd Quarter December 2019
Monday, February 10, 2020 4:01:00 PM
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Summary

Radiant Logistics (RLGT) Recent Earnings

Radiant Logistics (RLGT) reported 2nd Quarter December 2019 earnings of $0.12 per share on revenue of $201.9 million. on revenue of $204.6 million. Revenue fell 22.6% compared to the same quarter a year ago.

Radiant Logistics Inc is a transportation and logistics services company providing customers domestic and international freight forwarding services through a network of Company-owned and strategic operating partner locations.

Results
Reported Earnings
$0.12
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$201.9 Mil
Revenue Estimate
$204.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Radiant Logistics Announces Results For The Second Fiscal Quarter Ended December 31, 2019

BELLEVUE, Wash., Feb. 10, 2020 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and six months ended December 31, 2019.

Second Fiscal Quarter Financial Highlights (Quarter Ended December 31, 2019)

  • Revenues reported at $201.9 million for the second fiscal quarter ended December 31, 2019, compared to record revenues of $260.9 million for the comparable prior year period, which included approximately $29.9 million in non-recurring project revenues related to disaster relief efforts. Excluding this non-recurring project work in the year ago period, revenues would have been down $29.0 million or 12.6%. On a sequential basis, revenues of $201.9 million were up $1.4 million or 0.7%.
  • Net revenues reported at $56.0 million for the second fiscal quarter ended December 31, 2019, compared to record net revenues of $64.0 million for the comparable prior year period, which included approximately $3.6 million in non-recurring net revenues related to disaster relief efforts. Excluding this non-recurring project work in the year ago period, net revenues would have been down $4.4 million or 7.3%. On a sequential basis, net revenues were up $0.5 million or 0.9%.
  • Net income attributable to common stockholders reported at $2.6 million, or $0.05 per basic and fully diluted share, compared to net income attributable to common stockholders of $3.8 million, or $0.08 per basic and $0.07 per fully diluted share for the comparable prior year period. On a sequential basis, net income attributable to common shareholders was down $0.6 million or 18.8%.
  • Adjusted net income attributable to common stockholders, a non-GAAP financial measure, reported at $6.3 million, or $0.13 per basic and $0.12 per fully diluted share for the second fiscal quarter ended December 31, 2019, compared to adjusted net income attributable to common stockholders of $8.2 million, or $0.16 per basic and fully diluted share for the comparable prior year period. Adjusted net income attributable to common stockholders is calculated by applying a normalized tax rate of 24.5% and excluding other items not considered part of regular operating activities. On a sequential basis, adjusted net income attributable to common shareholders was down $0.2 million or 3.1%.
  • Adjusted EBITDA reported at $9.4 million for the second fiscal quarter ended December 31, 2019, compared to adjusted EBITDA of $12.5 million for the comparable prior year period, which included approximately $1.6 million in incremental adjusted EBITDA related to the non-recurring disaster relief efforts. Excluding this non-recurring project work in the year ago period, adjusted EBITDA would have been down $1.5 million or 13.8%. On a sequential basis, adjusted EBITDA was down $0.3 million or 3.1%.

Acquisition Update

Earlier today, the Company announced that it had purchased the assets and operations of two of its Adcom agency locations acquiring Alexandria, Virginia based Friedway Enterprises, Inc. ("Friedway") and Pittsburgh, Pennsylvania based CIC2, Inc. ("CIC2") through its wholly-owned subsidiary, Radiant Global Logistics, Inc. Friedway and CIC2 are expected to transition to the Radiant brand and will continue to provide a full range of domestic and international services from the mid-Atlantic region.

Stock Buy-back

For the quarter ended December 31, 2019, the Company spent $1.0 million repurchasing 189,558 shares of its common stock at an average price of $5.28 per share. On February 4, 2020, the Company announced the renewal of its stock buy-back program authorizing the repurchase of up to 5,000,000 shares of the Company's common stock through December 31, 2021. As of February 3, 2020, the Company had 49,676,263 shares outstanding.

CEO Comments

"We are very pleased to report another quarter of solid financial results for the second quarter ended December 31, 2019 in what was generally recognized as a tough economic environment," said Bohn Crain, Founder and CEO. "We posted Adjusted EBITDA of $9.4 million on revenues of $201.9 million, and net revenues of $56.0 million for the quarter ended December 31, 2019. As we had anticipated, our results were relatively flat on a sequential basis as we did not see the traditional peak season trade flows that we would generally expect for the calendar fourth quarter of the year. On a sequential quarterly comparison, revenues of $201.9 million were up $1.4 million or 0.7%; net revenues of $56.0 million were up $0.5 million or 0.9%; and adjusted EBITDA of $9.4 million was down $0.3 million or 3.2%, over the quarter ended September 30, 2019.

A number of factors contributed to difficult comparisons to our record results in the year ago period, including (1) the non-recurring disaster relief project work reported in the year ago period, (2) our decision to exit certain lower margin business earlier in calendar 2019, and (3) general market softness associated with slower global trade and margin pressures on our brokerage operations associated with excess truck capacity that exists in the marketplace. Notwithstanding these market headwinds, we saw our net revenue margins improve 320 basis points over the comparable prior year period, which helped us to deliver the $9.4 million in adjusted EBITDA and over $6.2 million in cash from operations for the quarter ended December 31, 2019."

Crain continued: "In addition, this last quarter we also took the opportunity to begin buying in our stock, and for the quarter ended December 31, 2019, we spent $1.0 million repurchasing 189,558 shares of our common stock at an average price of $5.28 per share. As we have previously discussed, we believe the current share price does not accurately reflect Radiant's long-term growth prospects and in that regard recently announced the renewal of our stock buy-back program authorizing the repurchase of up to 5,000,000 shares of our common stock through December 31, 2021.

We also made some very recent progress on the acquisition front and earlier today announced the purchase of two of our Adcom agency locations acquiring Alexandria, Virginia based Friedway Enterprises, Inc. and Pittsburgh, Pennsylvania based CIC2, Inc., both owned by our long-term operating partner Bonnie Knoedler. Supporting our operating partners in the transition to a company owned model remains a significant opportunity inherent in the Radiant Network.

Looking forward, we remain committed to our long-standing strategy to deliver profitable growth through a combination of organic and acquisition growth initiatives. We will continue to make investments in our technology platform and incremental sales resources to drive organic growth.  At the same time, we continue to enjoy low leverage on our balance sheet, strong free cashflow and continue our disciplined search for additional acquisition opportunities, which we believe, over time, will deliver meaningful value for our shareholders, our operating partners and the end customers that we serve. As we continue along this path, our stock buy-back program will remain an integral part of how we think about capital allocation, acquisition multiples and the use of our free cashflow."

Second Fiscal Quarter Ended December 31, 2019 – Financial Results

For the three months ended December 31, 2019, Radiant reported net income attributable to common stockholders of $2.6 million on $201.9 million of revenues, or $0.05 per basic and fully diluted share. For the three months ended December 31, 2018, Radiant reported net income attributable to common stockholders of $3.8 million on $260.9 million of revenues, or $0.08 per basic and $0.07 per fully diluted share.

For the three months ended December 31, 2019, Radiant reported adjusted net income attributable to common stockholders of $6.3 million, or $0.13 per basic and $0.12 per fully diluted share. For the three months ended December 31, 2018, Radiant reported adjusted net income attributable to common stockholders of $8.2 million, or $0.16 per basic and fully diluted share.

For the three months ended December 31, 2019, Radiant reported Adjusted EBITDA of $9.4 million, compared to $12.5 million for the comparable prior year period.

Six Months Ended December 31, 2019 – Financial Results

For the six months ended December 31, 2019, Radiant reporting net income attributable to common stockholders of $5.8 million on $402.5 million of revenues, or $0.12 per basic and $0.11 per fully diluted share. For the six months ended December 31, 2018, Radiant reported net income attributable to common stockholders of $6.3 million on $479.8 million of revenues, or $0.13 per basic and $0.12 per fully diluted share.

For the six months ended December 31, 2019, Radiant reported adjusted net income attributable to common stockholders of $12.8 million, or $0.26 per basic and $0.25 per fully diluted share. For the six months ended December 31, 2018, Radiant reported adjusted net income attributable to common stockholders of $13.5 million or $0.27 per basic and fully diluted share. 

For the six months ended December 31, 2019, Radiant reported Adjusted EBITDA of $19.1 million, compared to $21.3 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Monday, February 10, 2020 at 4:30 PM Eastern to discuss the contents of this release. The conference call is open to all interested parties, including individual investors and press. Bohn Crain, Founder and CEO will host the call.

Conference Call Details

DATE/TIME:

Monday, February 10, 2020 at 4:30 PM Eastern



DIAL-IN

US (844) 407-9500; Intl. (862) 298-0850



REPLAY

February 11, 2020 at 9:30 AM Eastern to February 17, 2020 at 4:30 PM Eastern, US (877) 481-4010;


Intl. (919) 882-2331 (Replay ID number: 57941)

Webcast Details

This call is also being webcast and may be accessed via Radiant's web site at www.radiantdelivers.com or at https://www.webcaster4.com/Webcast/Page/2191/32954.

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party logistics and multimodal transportation services company delivering advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to: trends in the domestic and global economy; our ability to attract new and retain existing agency relationships; acquisitions and integration of acquired entities; availability of capital to support our acquisition strategy; our ability to maintain and improve back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations; the ability of our recently acquired agency operations to maintain and grow their revenues and operating margins in a manner consistent with recent operating results and trends; our ability to maintain positive relationships with our third-party transportation providers, suppliers and customers; outcomes of legal proceedings; competition; management of growth; potential fluctuations in operating results; and government regulation. More information about factors that potentially could affect our financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

 

RADIANT LOGISTICS, INC.
Condensed Consolidated Balance Sheets




December 31,



June 30,




2019



2019


(In thousands, except share and per share data)


(unaudited)






ASSETS









Current assets:









Cash and cash equivalents


$

8,551



$

5,420


Accounts receivable, net of allowance of $1,547 and $1,887, respectively



95,419




93,123


Contract assets



20,310




17,777


Income tax receivable



1,699




506


Prepaid expenses and other current assets



8,798




8,066


Total current assets



134,777




124,892











Property, technology, and equipment, net



20,007




20,127











Goodwill



65,389




65,389


Intangible assets, net



50,514




55,742


Operating lease right-of-use assets



13,943





Deposits and other assets



2,519




1,560


Total other long-term assets



132,365




122,691


Total assets


$

287,149



$

267,710











LIABILITIES AND EQUITY









Current liabilities:









Accounts payable


$

72,089



$

74,097


Operating partner commissions payable



13,918




12,891


Accrued expenses



6,378




6,224


Current portion of notes payable



3,842




3,687


Current portion of operating lease liability



6,728





Current portion of finance lease liability



680




683


Other current liabilities



1,072




840


Total current liabilities



104,707




98,422











Notes payable, net of current portion



31,800




30,047


Operating lease liability, net of current portion



8,019





Finance lease liability, net of current portion



2,811




3,161


Deferred income taxes



7,121




7,838


Deferred rent liability






862


Other long-term liabilities



228




100


Total long-term liabilities



49,979




42,008


Total liabilities



154,686




140,430











Stockholders' equity:









Common stock, $0.001 par value, 100,000,000 shares authorized; 49,943,470 and 49,678,262

    shares issued, and 49,662,114 and 49,586,464 shares outstanding, respectively



31




31


Additional paid-in capital



100,662




100,186


Treasury stock, at cost, 281,356 and 91,798 shares, respectively



(1,253)




(253)


Retained earnings



32,705




26,883


Accumulated other comprehensive income



153




187


Total Radiant Logistics, Inc. stockholders' equity



132,298




127,034


Non-controlling interest



165




246


Total equity



132,463




127,280


Total liabilities and equity


$

287,149



$

267,710


 

RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Comprehensive Income



Three Months Ended December 31,



Six Months Ended December 31,


(In thousands, except share and per share data)


2019




2018



2019



2018


Revenues

$

201,927



$

260,938



$

402,470



$

479,821


















Operating expenses:
















Cost of transportation and other services


145,969




196,977




290,979




360,992


Operating partner commissions


25,370




28,355




49,548




53,183


Personnel costs


15,227




15,906




30,074




30,451


Selling, general and administrative expenses


6,680




7,522




14,343




14,646


Depreciation and amortization


4,095




3,815




8,132




7,448


Transition, lease termination, and other costs


337




(11)




328




(11)


Change in fair value of contingent consideration


33




(476)




48




(571)


Total operating expenses


197,711




252,088




393,452




466,138


















Income from operations


4,216




8,850




9,018




13,683


















Other income (expense):
















Interest income


18




13




33




24


Interest expense


(612)




(873)




(1,319)




(1,661)


Foreign currency transaction gain (loss)


(25)




159




(48)




193


Other


44




59




75




209


Total other expense


(575)




(642)




(1,259)




(1,235)


















Income before income taxes


3,641




8,208




7,759




12,448


















Income tax expense


(961)




(1,874)




(1,748)




(2,851)


















Net income


2,680




6,334




6,011




9,597


Less: net income attributable to non-controlling interest


(93)




(464)




(189)




(644)


















Net income attributable to Radiant Logistics, Inc.


2,587




5,870




5,822




8,953


Less: preferred stock dividends





(445)







(956)


Less: issuance costs for preferred stock redemption





(1,659)







(1,659)


















Net income attributable to common stockholders

$

2,587



$

3,766



$

5,822



$

6,338


















Other comprehensive income:
















Foreign currency translation gain (loss)


(148)




798




(34)




493


Comprehensive income

$

2,532



$

7,132



$

5,977



$

10,090


















Income per share attributable to common stockholders:
















Basic

$

0.05



$

0.08



$

0.12



$

0.13


Diluted

$

0.05



$

0.07



$

0.11



$

0.12


















Weighted average common shares outstanding:
















Basic


49,760,844




49,461,982




49,711,692




49,449,956


Diluted


51,395,063




51,064,163




51,411,538




50,884,799


 

Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Income Attributable to Common Stockholders to Adjusted Net Income Attributable to Common Stock, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

(unaudited)

As used in this report, Net Revenues, Adjusted Net Income Attributable to Common Stockholders, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Net Revenues, Adjusted Net Income Attributable to Common Stockholders, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business. For Adjusted Net Income Attributable to Common Stockholders, management uses a 24.5% tax rate to calculate the provision for income taxes before preferred dividend requirement to normalize Radiant's tax rate to that of its competitors and to compare Radiant's reporting periods with different effective tax rates. In addition, in arriving at Adjusted Net Income Attributable to Common Stockholders, the Company adjusts for certain non-cash charges and significant items that are not part of regular operating activities. These adjustments include income taxes, depreciation and amortization, change in fair value of contingent consideration, transition costs, lease termination costs, acquisition related costs, litigation costs, amortization of debt issuance costs, and issuance costs for preferred stock redemption.

We commonly refer to the term "net revenues" when commenting about our Company and the results of operations. Net revenues are a Non-GAAP measure calculated as revenues less directly related operations and expenses attributed to the Company's services. We believe net revenues are a better measurement than are total revenues when analyzing and discussing the effectiveness of our business and is used as a portion of a key metric the Company uses to discuss its progress.

EBITDA is a non-GAAP measure of income and does not include the effects of preferred stock dividends, redemption of preferred stock, interest and taxes, and excludes the "non-cash" effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to technology and equipment, and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, transition and lease termination costs, foreign currency transaction gains and losses, extraordinary items, share-based compensation expense, litigation expenses unrelated to our core operations, MM&D start-up costs and other non-cash charges. While management considers EBITDA, and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our consolidated financial statements.

We believe that these non-GAAP financial measures, as presented, represent a useful method of assessing the performance of our operating activities, as they reflect our earnings trends without the impact of certain non-cash charges and other non-recurring charges. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations to allow a comparison to other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. However, these non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. Net Revenues, Adjusted Net Income Attributable to Common Stockholders, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Radiant's operating performance or liquidity.

 

 (In thousands)

Three Months Ended December 31,



Six Months Ended December 31,


Net Revenues (Non-GAAP measure)

2019



2018



2019



2018


Total revenues

$

201,927



$

260,938



$

402,470



$

479,821


Cost of transportation and other services


145,969




196,977




290,979




360,992


















Net revenues

$

55,958



$

63,961



$

111,491



$

118,829


Net revenues margin


27.7

%



24.5

%



27.7

%



24.8

%


 (In thousands)

Three Months Ended December 31,



Six Months Ended December 31,


Reconciliation of GAAP net income to adjusted EBITDA

2019



2018



2019



2018


GAAP net income attributable to common stockholders

$

2,587



$

3,766



$

5,822



$

6,338


Preferred stock dividends





445







956


Issuance costs for preferred stock redemption





1,659







1,659


















GAAP net income attributable to Radiant Logistics, Inc.


2,587




5,870




5,822




8,953


Income tax expense


961




1,874




1,748




2,851


Depreciation and amortization


4,095




3,815




8,132




7,448


Net interest expense


594




860




1,286




1,637


















EBITDA


8,237




12,419




16,988




20,889


















Share-based compensation


467




464




897




795


Change in fair value of contingent consideration


33




(476)




48




(571)


Acquisition related costs


27




14




312




18


Litigation costs


248




248




432




385


Transition, lease termination, and other costs


337




(11)




328




(11)


Foreign currency transaction loss (gain)


25




(159)




48




(193)


















Adjusted EBITDA

$

9,374



$

12,499



$

19,053



$

21,312


Adjusted EBITDA margin (Adjusted EBITDA as a % of Net Revenues)


16.8

%



19.5

%



17.1

%



17.9

%


 (In thousands, except share and per share data)

Three Months Ended December 31,



Six Months Ended December 31,


Reconciliation of GAAP net income to adjusted net income
attributable to common stockholders:

2019



2018



2019



2018


GAAP net income attributable to common stockholders

$

2,587



$

3,766



$

5,822



$

6,338


Adjustments to net income:
















Income tax expense


961




1,874




1,748




2,851


Depreciation and amortization


4,095




3,815




8,132




7,448


Change in fair value of contingent consideration


33




(476)




48




(571)


Transition, lease termination, and other costs


337




(11)




328




(11)


Acquisition related costs


27




14




312




18


Litigation costs


248




248




432




385


Amortization of debt issuance costs


54




56




108




115


Issuance costs for preferred stock redemption





1,659







1,659


















Adjusted net income attributable to common stockholders

    before income taxes


8,342




10,945




16,930




18,232


















Provision for income taxes at 24.5% before preferred

    dividend requirement


(2,044)




(2,791)




(4,148)




(4,701)


















Adjusted net income attributable to common stockholders

$

6,298



$

8,154



$

12,782



$

13,531


















Adjusted net income per common share:
















Basic

$

0.13



$

0.16



$

0.26



$

0.27


Diluted

$

0.12



$

0.16



$

0.25



$

0.27


















Weighted average common shares outstanding:
















Basic


49,760,844




49,461,982




49,711,692




49,449,956


Diluted


51,395,063




51,064,163




51,411,538




50,884,799


 

 

Radiant Logistics, Inc. logo. (PRNewsFoto/Radiant Logistics, Inc.)

 

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SOURCE Radiant Logistics, Inc.