Radiant Logistics Announces Results For The Fourth Fiscal Quarter And Year Ended June 30, 2014

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Posts record quarterly results with Adjusted EBITDA of $4.5 Million---Up $1.1 Million and 34.3%; Margin Expansion with Adjusted EBITDA as a Percentage of Net Revenues Up 170 bps at 16.2%; and

Posts record annual results with Adjusted EBITDA of $14.8 Million---Up $3.8 Million and 34.1%; Margin Expansion with Adjusted EBITDA as a Percentage of Net Revenues Up 250 bps at 14.9%

 

BELLEVUE, Wash., Sept. 24, 2014 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today reported financial results for the three and twelve months ended June 30, 2014.

Fourth fiscal quarter Financial Highlights (Quarter Ended June 30, 2014)

  • Net income attributable to common shareholders was approximately $1.6 million, on $102.3 million of revenues, or $0.05 per basic and $0.04 per fully diluted share, for the fourth fiscal quarter of 2014, compared to net income of $2.4 million on $80.7 million of revenues, or $0.07 per basic and fully diluted share, for the comparable prior year period.
  • Adjusted net income attributable to common shareholders was $2.0 million, or $0.06 per basic and fully diluted share, for the fourth fiscal quarter of 2014, compared to adjusted net income attributable to common shareholders of $1.7 million, or $0.05 per basic and fully diluted share, for the comparable prior year period. Both periods are calculated by applying a normalized tax rate of 40% and excluding other items not considered part of regular operating activities.
  • Adjusted EBITDA increased 34.3% to $4,496,000 for the fourth fiscal quarter of 2014, compared to adjusted EBITDA of $3,347,000 in the comparable prior year period.
  • Adjusted EBITDA margin (expressed as a function of net revenues) increased 170 basis points to 16.2% for the fourth fiscal quarter of 2014, compared to Adjusted EBITDA margin of 14.5% in the comparable prior year period.

CEO Comments

"We are very pleased to report record results for the quarter and our continuing trend of margin expansion and earnings growth," said Bohn Crain, Founder and CEO. "We posted Adjusted EBITDA of $4.5 million for the quarter ended June 30, 2014, up approximately $1.1 million and 34.3% over the comparable prior year period. Consistent with past quarters, we also continue to make good progress in leveraging our scalable business model to drive margin expansion. For the quarter ended June 30, 2014, our Adjusted EBITDA expressed as a function of net revenues increased 170 basis points, up from 14.5% to 16.2% for the comparable prior year period.

"We also posted record results for the full fiscal year ended June 30, 2014, with Adjusted EBITDA of $14.8, up approximately $3.8 million and 34.1% over the comparable prior year period. Our Adjusted EBTIDA expressed as a function of net revenues increased 250 basis points, up from 12.4% to 14.9% for the comparable prior year period. As a reminder, these results only include 9 months of contribution from our acquisition of On Time Express which we completed effective October 1, 2013. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further margin expansion as we continue to scale the business and look for ways to drive operating efficiencies in our non-asset based business model."

Crain continued: "We remain very bullish on the growth platform we have created at Radiant, our expanding opportunities within the agent-based forwarding community and beyond and the scalability of our non-asset based business model. Organically, we continue to focus on improving the tools available to our existing network to win new business as well as expanding the network itself by on-boarding new operating partners that recognize the benefit of our platform. In addition, we continue to enjoy significant financial flexibility to accelerate our growth via acquisitions which may include the acquisition of existing operating partners, the acquisition of agent stations participating in competing networks and given the opportunity, the acquisition of other competing networks.  In addition, we also have an interest in pursuing other non-asset based acquisition opportunities that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. We have developed a very robust pipeline of growth opportunities meeting these criteria and we looking forward to sharing additional information as things develop."

Crain concluded: "We are providing guidance for the upcoming quarter ending September 30, 2014 and excluding the impact of any further acquisitions, gain on litigation, or other unusual items, we are projecting adjusted EBITDA in the range of $3.7 - $4.3 million on approximately $95.0 - $100.0 million in revenues which equates to adjusted net income available to common shareholders in the range of $1.5 - $1.9 million, or $0.04 - $0.05 per basic and fully diluted share. As with our previous communications, we would also like to remind investors that our free cash flow is generally higher than our net income because we have significant non-cash depreciation and amortization expenses flowing through our financial statements as a result of the mechanics of accounting for acquisitions and the fact that we have minimal maintenance capital expenditure requirements."

Fourth Fiscal Quarter ended June 30, 2014 – Financial Results

For the three months ended June 30, 2014, Radiant reported net income attributable to common shareholders of $1,604,000 on $102.3 million of revenues, or $0.05 per basic and $0.04 per fully diluted share. For the three months ended June 30, 2013, Radiant reported net income attributable to common shareholders of $2,352,000 on $80.7 million of revenues, or $0.07 per basic and fully diluted share.

For the three months ended June 30, 2014, Radiant reported adjusted net income attributable to common shareholders of $2,029,000, or $0.06 per basic and fully diluted share. For the three months endedJune 30, 2013, Radiant reported adjusted net income attributable to common shareholders of $1,707,000, or $0.05 per basic and fully diluted share.

The Company also reported adjusted EBITDA of $4,496,000 for the three months ended June 30, 2014, compared to adjusted EBITDA of $3,347,000 for the three months ended June 30, 2013.

In addition, the Company also reported adjusted EBITDA margin (expressed as a function of net revenues) of 16.2% for the three months ended June 30, 2014, compared to adjusted EBITDA margin of 14.5% in the comparable prior period.

A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the three months ending June 30, 2014 and 2013 appears at the end of this release.

Twelve Months ended June 30, 2014 – Financial Results

For the twelve months ended June 30, 2014, Radiant reported net income attributable to common shareholders of $4,027,000 on $349.1 million of revenues, or $0.12 per basic and $0.11 per fully diluted share, including a loss on write-off of debt discount of $1,238,000. For the twelve months ended June 30, 2013, Radiant reported net income attributable to common shareholders of $3,657,000 on $310.8 million of revenues, or $0.11 per basic and $0.10 per fully diluted share, including transition and lease termination costs of $1,544,000.

For the twelve months ended June 30, 2014, Radiant reported adjusted net income attributable to common shareholders of $6,769,000, or $0.20 per basic and $0.19 per fully diluted share. For the twelve months ended June 30, 2013, Radiant reported adjusted net income attributable to common shareholders of $5,409,000, or $0.16 per basic and $0.15 per fully diluted share.

The Company also reported adjusted EBITDA of $14,750,000 for the twelve months ended June 30, 2014, compared to adjusted EBITDA of $10,998,000 for the twelve months ended June 30, 2013.

In addition, the Company also reported adjusted EBITDA margin (expressed as a function of net revenues) of 14.9% for the twelve months ended June 30, 2014, compared to adjusted EBITDA margin of 12.4% in the comparable prior period.

 A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the twelve months ending June 30, 2014 and 2013 appears at the end of this release.

Network Expansion – Issaquah, WA

Effective September 1, 2014, the Company acquired Trans-NET, Inc. ("Trans-NET"). Trans-NET is an Issaquah, Washington-based, privately held company with extensive experience in providing integrated project logistics solutions in key Russian oil, gas, mining and infrastructure development markets.  The transaction was structured as a purchase of assets and includes an option to purchase the assets of Trans-NET's Russian affiliate, Trans-NET International Logistics, LLC ("TNIL") with operations in Sakhalin Island, Vladivostok and Moscow.

Reconciliation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under the Securities Exchange Commission ("SEC") rules such as adjusted net income, adjusted net income per share and earnings before interest, taxes, depreciation and amortization ("EBITDA"). We believe that supplemental disclosure of these amounts are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business that eliminates depreciation, amortization and certain other non-cash costs and other significant items that are not part of regular operating activities. A reconciliation of adjusted net income, adjusted net income per share and adjusted EBITDA for the outlook period ending September 30, 2014 is as follows:

(in thousands, except for earnings per share)

 



Outlook
Fiscal Quarter Ending
September 30, 2014


Net income attributable to Radiant Logistics, Inc.


$

1,094 - $1,418


Less: Preferred Dividend Requirement


$

(511)


Net income attributable to common shareholders


$

583 - $907


 

Net income per common share





Basic and Diluted


$

0.02 – 0.03


Weighted average shares outstanding:





Basic shares



34,500,000


Diluted shares



36,150,000







Reconciliation of net income to adjusted net income:





Net income attributable to common shareholders


$

582 – $907


 

Adjustments to net income:





Income tax expense


$

749 - $966


Non-recurring legal and other


$

225


Depreciation and amortization


$

1,333


Adjusted net income before taxes


$

2,889 - $3,431


Less: Provision for income taxes at 40% before preferred dividend requirement of $511


$

(1,360) – (1,577)


 

Adjusted net income


$

1,529 - $1,854


 

Adjusted net income per common share:





Basic


$

0.04 - $0.05


Diluted


$

0.04 - $0.05


 

Reconciliation of net income to adjusted EBITDA:


Outlook
Fiscal Quarter Ending
September  30, 2014


Net Income attributable to common shareholders


$

583 – $907


Preferred dividends


$

511


Net income attributable to Radiant Logistics, Inc.


$

1,094 – $1,418


 

Adjustments to net income:





Income tax expense


$

749 - $966


Depreciation and amortization


$

1,333


Net interest expense


$

100


 

EBITDA


$

3,276 -$3,817


 

Share-based compensation


$

201


Non-recurring legal and other


$

225


Change in contingent consideration


$

44


 

Adjusted EBITDA


$

3,746 - $4,287


This supplemental financial information is presented for informational purposes only and is not a substitute for the financial information presented in accordance with accounting principles generally accepted in the United States.

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Thursday, September 25, 2014 at 4:00 pm, ET to discuss the contents of this release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using account number 286 and conference ID number 13582279. This call is also being webcast and may be accessed via Radiant's web site at www.radiantdelivers.com

About Radiant Logistics (NYSE MKT: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics services company providing domestic and international freight forwarding services and truck brokerage services through a network of Company-owned and strategic operating partner locations operating under the Radiant, Airgroup, Adcom, DBA and On Time network brands located throughout North America and an integrated service partner network serving other markets around the globe. We also offer an expanding array of value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing.

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, outcomes of legal proceedings, competition, management of growth, potential fluctuations in operating results, and government regulation. More information about factors that potentially could affect Radiant Logistics, Inc. 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.

Consolidated Balance Sheets



June 30,



2014



2013


ASSETS








Current assets:








Cash and cash equivalents

$

2,880,205



$

1,024,192


Accounts receivable, net of allowance of $1,034,934 and $1,445,646,
   respectively


67,856,337




52,131,462


Current portion of employee and other receivables


232,791




328,123


Prepaid expenses and other current assets


2,926,431




2,477,904


Deferred tax asset


925,208




908,564


Total current assets


74,820,972




56,870,245










Furniture and equipment, net


1,265,107




1,289,818










Acquired intangibles, net


15,041,988




9,231,163


Goodwill


28,247,003




15,952,544


Employee and other receivables, net of current portion


22,070




72,433


Deposits and other assets


617,093




336,613


Total long-term assets


43,928,154




25,592,753


Total assets

$

120,014,233



$

83,752,816










LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:








Accounts payable and accrued transportation costs

$

48,299,922



$

35,767,785


Commissions payable


5,569,671




6,086,324


Other accrued costs


2,517,415




2,176,567


Income taxes payable


436,328




361,571


Current portion of notes payable





767,091


Current portion of contingent consideration


1,541,000




305,000


Current portion of lease termination liability


319,826




305,496


Total current liabilities


58,684,162




45,769,834










Notes payable and other long-term debt, net of current portion and debt

   discount


7,243,371




17,213,424


Contingent consideration, net of current portion


9,626,000




3,720,000


Lease termination liability, net of current portion


198,502




505,353


Deferred rent liability


560,248




583,401


Deferred tax liability


2,774,506




73,433


Other long-term liabilities


2,610




2,610


Total long-term liabilities


20,405,237




22,098,221


Total liabilities


79,089,399




67,868,055










Stockholders' equity:








Preferred stock, $0.001 par value, 5,000,000 shares authorized;
   839,200 and 0 shares issued and outstanding, respectively, liquidation
   preference of $20,980,000


839





Common stock, $0.001 par value, 100,000,000 shares authorized;
   34,326,308 and 33,348,166 shares issued and outstanding, respectively


15,781




14,803


Additional paid-in capital


34,558,785




13,873,157


Deferred compensation


(9,209)




(14,252)


Retained earnings


6,317,473




1,943,530


Total Radiant Logistics, Inc. stockholders' equity


40,883,669




15,817,238


Non-controlling interest


41,165




67,523


Total stockholders' equity


40,924,834




15,884,761


Total liabilities and stockholders' equity

$

120,014,233



$

83,752,816


 

 

RADIANT LOGISTICS, INC.

Consolidated Statements of Operations




Three Months Ended June 30,



Twelve Months Ended June 30,





2014




2013




2014




2013


Revenues


$

102,254,964



$

80,718,576



$

349,133,058



$

310,835,104


Cost of transportation



74,478,185




57,656,531




249,897,847




222,402,301


Net revenues



27,776,779




23,062,045




99,235,211




88,432,803



















Operating partner commissions



14,246,080




13,508,383




53,654,531




52,465,832


Personnel costs



6,552,772




4,627,384




21,836,922




17,441,054


Selling, general and administrative expenses



3,079,025




1,893,395




10,728,131




8,440,603


Depreciation and amortization



1,227,778




876,650




4,532,135




3,943,795


Transition and lease termination costs












1,544,454


Change in contingent consideration



(683,000)




(1,875,000)




(2,040,567)




(2,825,000)


Total operating expenses



24,422,655




19,030,812




88,711,152




81,010,738



















Income from operations



3,354,124




4,031,233




10,524,059




7,422,065



















Other income (expense):

















Interest income



1,498




3,009




8,091




15,688


Interest expense



(88,960)




(515,509)




(1,194,303)




(2,015,944)


Loss on write-off of debt discount









(1,238,409)





Gain on litigation settlement, net












368,162


Other



55,154




108,587




164,382




346,617


Total other expense



(32,308)




(403,913)




(2,260,239)




(1,285,477)



















Income before income tax expense



3,321,816




3,627,320




8,263,820




6,136,588



















Income tax expense



(1,192,606)




(1,261,883)




(3,081,865)




(2,371,158)



















Net income



2,129,210




2,365,437




5,181,955




3,765,430


Less: Net income attributable to non-controlling interest



(14,321)




(13,722)




(63,642)




(107,972)



















Net income attributable to Radiant Logistics, Inc.



2,114,889




2,351,715




5,118,313




3,657,458


Less: Preferred stock dividends



(511,388)







(1,091,275)






















Net income attributable to common stockholders


$

1,603,501



$

2,351,715



$

4,027,038



$

3,657,458



















Net income per common share:

















Basic


$

0.05



$

0.07



$

0.12



$

0.11


Diluted


$

0.04



$

0.07



$

0.11



$

0.10



















Weighted average shares outstanding:

















Basic shares



34,209,601




33,337,362




33,716,367




33,120,767


Diluted shares



35,755,520




35,151,988




35,458,401




34,910,911



RADIANT LOGISTICS, INC.
Reconciliation of Net Income to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Reconciliation of Net
Income per share to Adjusted Net Income per share
(unaudited)

As used in this report, Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA 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, management uses a 40% tax rate for calculating 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 difference effective tax rates. In addition, in arriving at Adjusted Net Income and Adjusted Net Income per Share, the Company adjusts for significant items that are not part of regular operating activities. These adjustments include acquisition costs, transition, severance and lease termination costs, non-recurring litigation expenses as well as depreciation and amortization and certain other non-cash charges.

Adjusted EBITDA means earnings before preferred stock dividends, interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration, expenses specifically attributable to acquisitions, severance and lease termination costs, extraordinary items, share based compensation expense, non-recurring litigation expenses and other non-cash charges. We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges and other non-recurring charges. We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Adjusted Net Income and Adjusted Net income per Share, EBITDA and Adjusted EBITDA 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.

 




Three Months Ended



Twelve Months Ended




June 30,



June 30,





2014




2013




2014




2013


Net income attributable to common stockholders


$

1,603,501



$

2,351,715



$

4,027,038



$

3,657,458



















Net income per common share:

















Basic


$

0.05



$

0.07



$

0.12



$

0.11


Diluted


$

0.04



$

0.07



$

0.11



$

0.10



















Weighted average shares outstanding:

















Basic shares



34,209,601




33,337,362




33,716,367




33,120,767


Diluted shares



35,755,520




35,151,988




35,458,401




34,910,911



















Reconciliation of net income to adjusted net income:

















Net income attributable to common stockholders


$

1,603,501



$

2,351,715



$

4,027,038



$

3,657,458


Adjustments to net income:

















Income tax expense



1,192,606




1,261,883




3,081,865




2,371,158


Depreciation and amortization



1,227,778




876,650




4,532,135




3,943,795


Change in contingent consideration



(683,000)




(1,875,000)




(2,040,567)




(2,825,000)


Gain on litigation settlement, net












(368,162)


Lease termination costs












1,439,018


Acquisition related costs



45,136




51,891




352,805




104,834


Severance and transition costs associated with acquisitions












105,436


Non-recurring legal costs



321,465




103,687




614,614




305,677


Amortization of loan fees and OID



15,296




74,501




203,003




280,790


Loss on write-off of debt discount










1,238,409






















Adjusted Net Income before income taxes



3,722,782




2,845,327




12,009,302




9,015,004



















Provision for income taxes at 40% before preferred

     dividend requirement



(1,693,668)




(1,138,132)




(5,240,231)




(3,606,002)



















Adjusted net income


$

2,029,114



$

1,707,195



$

6,769,071



$

5,409,002



















Adjusted net income per common share:

















Basic


$

0.06



$

0.05



$

0.20



$

0.16


Diluted


$

0.06



$

0.05



$

0.19



$

0.15


 

 



Three Months Ended



Twelve Months Ended




June 30,



June 30,


Reconciliation of net income to adjusted EBITDA



2014




2013




2014




2013



















Net income attributable to common stockholders


$

1,603,501



$

2,351,715



$

4,027,038



$

3,657,458


Preferred stock dividends



511,388







1,091,275






















Net income attributable to Radiant Logistics, Inc.



2,114,889




2,351,715




5,118,313




3,657,458


Income tax expense



1,192,606




1,261,883




3,081,865




2,371,158


Depreciation and amortization



1,227,778




876,650




4,532,135




3,943,795


Net interest expense



87,462




512,500




1,186,212




2,000,256



















EBITDA



4,622,735




5,002,748




13,918,525




11,972,667



















Share-based compensation



189,170




63,593




666,098




369,351


Change in contingent consideration



(683,000)




(1,875,000)




(2,040,567)




(2,825,000)


Acquisition related costs



45,136




51,891




352,805




104,834


Non-recurring legal costs



321,465




103,687




614,614




305,677


Lease termination costs












1,439,018


Loss on write-off of debt discount









1,238,409





Gain on litigation settlement, net












(368,162)



















Adjusted EBITDA


$

4,495,506



$

3,346,919



$

14,749,884



$

10,998,385


As a % of Net Revenues



16.2

%



14.5

%



14.9

%



12.4

%

 

 

 

SOURCE Radiant Logistics, Inc.

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