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Radiant Logistics Sees Record F4Q Results, Delays Filing And Earnings Call

Radiant Logistics Sees Record F4Q Results, Delays Filing And Earnings Call

In an abbreviated fiscal fourth-quarter update, third-party logistics and multimodal transportation provider Radiant Logistics Inc. (NYSE: RLGT) said it expects to report record adjusted net income of $8.9 million, 18 cents per share, for the period that ended June 30.

The Bellevue, Washington-based company said it filed for a 15-day extension for filing its annual form 10-k with the U.S. Securities and Exchange Commission. The press release stated that the company "was unable to timely finalize its financial results without unreasonable expense or effort" due to COVID-19-related delays and "associated work-from-home strategies." The preliminary results in the press release have not been audited and are subject to change.

The 18 cent preliminary result for Radiant's fiscal quarter outpaced adjusted net income per share of 15 cents in the year-ago period and the consensus estimate of 2 cents per share.

"I'm very proud of the Radiant Network and our collective response to challenges presented by the COVID pandemic," said Radiant founder and CEO Bohn Crain.

Revenue is estimated to be $276 million for the quarter, up 35% year-over-year and 71% higher than analysts' forecasts. However, net revenue margin contribution declined more than 1,000 basis points as a percentage of revenue to $50 million. Significantly higher purchased transportation expense, including higher truckload spot rates, likely led to the decline.  

When Radiant reported fiscal third-quarter results on May 11, management said they had taken a variety of cost-reduction actions – workforce reductions and cuts to compensation for management and the board – to offset declining gross margins. Additionally, management said they were tabling acquisitions and suspending share repurchases to preserve liquidity.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 19% year-over-year to $13 million, a more than 700-basis-point improvement as a percentage of net revenue from the comparable 2019 period.

"We are working hard and expect to complete our filing within the time provided with the 12b-25 extension and will hold our quarterly earnings call concurrent with the ultimate filing of our 10-K," continued Crain.

Shares of RLGT are up 4% in midday trading, compared to the S&P 500, which is up 1%.

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