Market Overview

Radiant Logistics Announces Results For The Second Fiscal Quarter Ended December 31, 2018

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BELLEVUE, Wash., Feb. 11, 2019 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE:RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and six months ended December 31, 2018.

Second Fiscal Quarter Financial Highlights (Quarter Ended December 31, 2018)

  • Revenues increased to a record $260.9 million for the second fiscal quarter ended December 31, 2018, up $54.2 million or 26.2%, compared to revenues of $206.7 million for the comparable prior year period.
  • Net revenues increased to a record $64.0 million for the second fiscal quarter ended December 31, 2018, up $16.6 million or 35.0%, compared to net revenues of $47.4 million for the comparable prior year period.
  • Net income allocable to common stockholders increased to $3.8 million (including a charge of $1.7 million related to the redemption of the Company's preferred stock), or $0.08 per basic and $0.07 per fully diluted share, compared to net income of $3.3 million, or $0.07 per basic and fully diluted share for the comparable prior year period.
  • Adjusted net income allocable to common stockholders, a non-GAAP financial measure, increased to a record $8.2 million, or $0.16 per basic and fully diluted share for the second fiscal quarter ended December 31, 2018, compared to adjusted net income allocable to common stockholders of $3.6 million, or $0.07 per basic and fully diluted share for the comparable prior year period. Adjusted net income allocable to common stockholders is calculated by applying a normalized tax rate of 24.5% for the three months ended December 31, 2018 and 31.0% for the comparable prior year period and excluding other items not considered part of regular operating activities.
  • Adjusted EBITDA increased to a record $12.5 million for the second fiscal quarter ended December 31, 2018, up $5.4 million or 76.1%, compared to adjusted EBITDA of $7.1 million for the comparable prior year period.
  • Adjusted EBITDA margin (expressed as a function of net revenues) increased 440 basis points to a record 19.5% for the second fiscal quarter ended December 31, 2018, compared to Adjusted EBITDA margin of 15.1% for the comparable prior year period.

Redemption of Preferred Stock

On December 21, 2018, the Company exercised its option to redeem all 839,200 outstanding shares of its 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock at a par value of $25.00 per share plus accrued and unpaid dividends. The Company paid $21.0 million in cash and recorded a charge of $1.7 million related to the redemption of the preferred stock. The redemption of the preferred stock was funded by a combination of cash on hand and the Company's $75.0 million senior credit facility and eliminates approximately $2.0 million in future annual dividends.

$100 Million Universal Shelf Registration Statement Declared Effective

On February 4, 2019, the Securities and Exchange Commission declared effective the Company's $100 million universal shelf registration statement on Form S-3. The registration statement replaces the Company's previous $100 million universal shelf registration that recently expired and provides the Company continued financial flexibility to access capital to support and accelerate the Company's growth strategy should the opportunity present itself.

CEO Comments

"We are pleased to report record results and the continued broad-based improvement in our financial performance for the second fiscal quarter ended December 31, 2018," said Bohn Crain, Founder and CEO, "We posted record revenues of $260.9 million, up $54.2 million or 26.2%; record net revenues of $64.0 million, up $16.6 million or 35.0%; net income allocable to common stockholders of $3.8 million, up $0.5 million; record adjusted net income allocable to common shareholders of $8.2 million, up $4.6 million or 127.8%; and record Adjusted EBITDA of $12.5 million, up $5.4 million or 76.1% over the comparable prior year period. Our net revenue margins also improved, up 160 basis points to 24.5% from 22.9% for the comparable prior year period. In addition, we also saw improvement in our Adjusted EBITDA margins, which increased 440 basis points to a record 19.5%, from 15.1% for the comparable prior year period.

"Our positive trend of solid organic growth continued both in terms of geography and service offering. In the U.S. we reported revenues of $231.8 million, up $52.3 million and 29.1% and net revenues of $55.5 million, up $14.7 million or 36.0% over the comparable prior year period. Transportation net revenues of $54.4 million were up $14.2 million or 35.3% from the comparable prior year period. Value added services net revenues of $1.1 million were up $0.5 million or 83.3%. In Canada we reported revenues of $29.3 million, up $1.7 million and 6.2% and net revenues of $8.5 million, up $1.9 million or 28.8% over the comparable prior year period. Transportation net revenues of $5.1 million were up $1.0 million or 24.4% from the comparable prior year period. Value added services net revenues of $3.4 million were up $0.9 million or 36.0%.

"These positive results are also delivering strong cash flows for the business. Through the six months ended December 31, 2018, we generated a record $16.4 million in cash from operations. With the benefit of these strong results, in December we were able to redeem our $21.0 million preferred stock through a combination of cash on hand and the Company's $75.0 million credit facility eliminating approximately $2.0 million in future annual dividend payments.

"As of December 31, 2018 (and after funding the redemption of the preferred stock) we have approximately $36.0 million in availability under our existing facility, not including access to an additional $50.0 million accordion feature to support our future M&A activities under that same facility. In addition, we also recently took the opportunity to refresh our $100 million equity shelf registration, which provides us with continued financial flexibility to access capital to support and accelerate our growth strategy should the opportunity present itself."

Crain continued: "We are encouraged by our continued strong financial performance with trailing twelve month adjusted EBITDA through December 31, 2018 of $36.9 million and remain committed to our long-standing strategy to deliver profitable growth through a combination of organic and acquisition growth initiatives. Our now more than 10-year first market advantage in executing our multi-brand strategy in consolidating agent-based forwarding networks, ongoing investment in technology and low leverage on our balance sheet puts us in a unique position to support further consolidation in the marketplace. We are patiently persistent in the pursuit of this long-term vision which we believe, over time, will deliver meaningful value for shareholders, our operating partners and the end customers that we serve."

Second Fiscal Quarter Ended December 31, 2018 – Financial Results

For the three months ended December 31, 2018, Radiant reported net income allocable to common stockholders of $3.8 million (including a charge of $1.7 million related to the redemption of the Company's preferred stock) 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, 2017, Radiant reported net income allocable to common stockholders of $3.3 million on $206.7 million of revenues, or $0.07 per basic and fully diluted share.

For the three months ended December 31, 2018, Radiant reported adjusted net income allocable to common stockholders of $8.2 million, or $0.16 per basic and fully diluted share. For the three months ended December 31, 2017, Radiant reported adjusted net income allocable to common stockholders of $3.6 million, or $0.07 per basic and fully diluted share.

For the three months ended December 31, 2018, Radiant reported Adjusted EBITDA of $12.5 million, compared to $7.1 million for the comparable prior year period.

Six Months Ended December 31, 2018 – Financial Results

For the six months ended December 31, 2018, Radiant reporting net income attributable to common stockholders of $6.3 million (including a charge of $1.7 million related to the redemption of the Company's preferred stock) 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, 2017, Radiant reported net income attributable to common stockholders of $3.6 million on $404.7 million of revenues, or $0.07 per basic and fully diluted share.

For the six months ended December 31, 2018, Radiant reported adjusted net income allocable to common stockholders of $13.5 million, or $0.27 per basic and fully diluted share. For the six months ended December 31, 2017, Radiant reported adjusted net income attributable to common stockholders of $6.5 million or $0.13 per basic and fully diluted share. 

For the six months ended December 31, 2018, Radiant reported Adjusted EBITDA of $21.3 million, compared to $13.6 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Monday, February 11, 2019 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 11, 2019 at 4:30 PM Eastern

DIAL-IN
US (866) 682-6100; Intl. (862) 298-0702

REPLAY
February 12, 2019 at 9:30 AM Eastern to February 25, 2019 at 4:30 PM Eastern, US (877) 481-4010; Intl. (919) 882-2331 (Replay ID number: 43037)

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.investornetwork.com/event/presentation/43037.

About Radiant Logistics (NYSE: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 the Wheels operation to maintain and grow its 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





 (In thousands, except share and per share data)

December 31,


June 30,


2018


2018


(unaudited)




ASSETS






Current assets:






Cash and cash equivalents

$

11,913


$

6,992

Accounts receivable, net of allowance of $2,375 and $1,703, respectively


107,457



137,578

Contract assets


24,259



Income tax receivable




2,105

Prepaid expenses and other current assets


11,175



6,599

Total current assets


154,804



153,274







Technology and equipment, net


18,847



18,566







Goodwill


65,389



65,389

Intangible assets, net


60,554



65,264

Deposits and other assets


1,267



2,945

Total other long-term assets


127,210



133,598

Total assets

$

300,861


$

305,438







LIABILITIES AND EQUITY






Current liabilities:






Accounts payable

$

88,240


$

90,153

Operating partner commissions payable


14,395



14,322

Accrued expenses


6,429



5,404

Income tax payable


572



Current portion of notes payable


3,817



3,726

Current portion of contingent consideration


309



960

Transition and lease termination liability


882



1,385

Other current liabilities


408



295

Total current liabilities


115,052



116,245







Notes payable, net of current portion


55,848



43,197

Contingent consideration, net of current portion


905



1,615

Deferred rent liability


978



1,020

Deferred income taxes


7,921



8,665

Other long-term liabilities


318



1,082

Total long-term liabilities


65,970



55,579

Total liabilities


181,022



171,824







Stockholders' equity:






Preferred stock, $0.001 par value, 5,000,000 shares authorized; nil and 839,200 shares issued and outstanding, respectively




1

Common stock, $0.001 par value, 100,000,000 shares authorized; 49,561,374 and 49,511,907 shares issued, and 49,469,576 and 49,420,109 shares outstanding, respectively


31



31

Additional paid-in capital


99,346



117,968

Treasury stock, at cost, 91,798 shares


(253)



(253)

Retained earnings


19,490



15,539

Accumulated other comprehensive income


679



186

Total Radiant Logistics, Inc. stockholders' equity


119,293



133,472

Non-controlling interest


546



142

Total equity


119,839



133,614

Total liabilities and equity

$

300,861


$

305,438

 

 

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)





 (In thousands, except share and per share data)

Three Months Ended December 31,


Six Months Ended December 31,


2018



2017


2018



2017

Revenues

$

260,938



$

206,714


$

479,821



$

404,691















Operating expenses:














Cost of transportation and other services


196,977




159,350



360,992




311,724

Operating partner commissions


28,355




19,528



53,183




39,220

Personnel costs


15,906




14,909



30,451




28,902

Selling, general and administrative expenses


7,522




6,352



14,646




12,655

Depreciation and amortization


3,815




3,567



7,448




7,142

Transition and lease termination costs


(11)






(11)




107

Change in fair value of contingent consideration


(476)




190



(571)




(110)

Total operating expenses


252,088




203,896



466,138




399,640















Income from operations


8,850




2,818



13,683




5,051















Other income (expense):














Interest income


13




9



24




16

Interest expense


(873)




(811)



(1,661)




(1,582)

Foreign currency transaction gains (losses)


159




(55)



193




(139)

Other


59




96



209




226

Total other expense


(642)




(761)



(1,235)




(1,479)















Income before income taxes


8,208




2,057



12,448




3,572















Income tax benefit (expense)


(1,874)




1,840



(2,851)




1,214















Net income


6,334




3,897



9,597




4,786

Less: net income attributable to non-controlling interest


(464)




(56)



(644)




(117)















Net income attributable to Radiant Logistics, Inc.


5,870




3,841



8,953




4,669

Less: preferred stock dividends


(445)




(511)



(956)




(1,023)

Less: issuance costs for preferred stock redemption


(1,659)






(1,659)


















Net income allocable to common stockholders

$

3,766



$

3,330


$

6,338



$

3,646















Other comprehensive income:














Foreign currency translation gain (loss)


798




210



493




(595)

Comprehensive income

$

7,132



$

4,107


$

10,090



$

4,191















Income per share allocable to common stockholders:














Basic

$

0.08



$

0.07


$

0.13



$

0.07

Diluted

$

0.07



$

0.07


$

0.12



$

0.07















Weighted average common shares outstanding:














Basic


49,461,982




49,174,789



49,449,956




49,130,167

Diluted


51,064,163




50,711,153



50,884,799




50,677,053

 

Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Income Allocable to Common Stockholders
to Adjusted Net Income, EBITDA and Adjusted EBITDA
(unaudited)

As used in this report, Net Revenues, Adjusted Net Income, EBITDA, and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income, 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 24.5% tax rate for the three and six months ended December 31, 2018 and a 31% tax rate for the three and six months ended December 31, 2017 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, the Company adjusts for certain non-cash charges and significant items that are not part of regular operating activities. These adjustments include depreciation and amortization, income taxes, change in contingent consideration, amortization of loan fees, write-off of loan fees, impairment of acquired intangible assets, acquisition related costs, transition costs, lease termination costs, litigation costs and non-recurring costs.

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, 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, 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.

Net Revenues (Non-GAAP measure)

 (In thousands)

Three Months Ended December 31,



Six Months Ended December 31,



2018



2017



2018



2017


Total revenues

$

260,938



$

206,714



$

479,821



$

404,691


Cost of transportation and other services


196,977




159,350




360,992




311,724


















Net revenues

$

63,961



$

47,364



$

118,829



$

92,967


Net revenues margin


24.5

%



22.9

%



24.8

%



23.0

%

















 (In thousands)

Three Months Ended December 31,



Six Months Ended December 31,


Reconciliation of GAAP net income to adjusted EBITDA

2018



2017



2018



2017


GAAP net income attributable to common stockholders

$

3,766



$

3,330



$

6,338



$

3,646


Preferred stock dividends


445




511




956




1,023


Issuance costs for preferred stock redemption


1,659







1,659





















GAAP net income attributable to Radiant Logistics, Inc.


5,870




3,841




8,953




4,669


Income tax expense (benefit)


1,874




(1,840)




2,851




(1,214)


Depreciation and amortization


3,815




3,567




7,448




7,142


Net interest expense


860




802




1,637




1,566


















EBITDA


12,419




6,370




20,889




12,163


















Share-based compensation


464




380




795




730


Change in fair value of contingent consideration


(476)




190




(571)




(110)


Acquisition related costs


14




20




18




98


Litigation costs


248




54




385




79


Transition and lease termination costs


(11)







(11)




107


MM&D start-up costs





63







410


Foreign exchange loss (gain)


(159)




55




(193)




139


















Adjusted EBITDA

$

12,499



$

7,132



$

21,312



$

13,616


Adjusted EBITDA as a % of Net Revenues


19.5

%



15.1

%



17.9

%



14.6

%

















 (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:

2018



2017



2018



2017


GAAP net income attributable to common stockholders

$

3,766



$

3,330



$

6,338



$

3,646


Adjustments to net income:
















Income tax expense (benefit)


1,874




(1,840)




2,851




(1,214)


Depreciation and amortization


3,815




3,567




7,448




7,142


Change in fair value of contingent consideration


(476)




190




(571)




(110)


Transition and lease termination costs


(11)







(11)




107


Acquisition related costs


14




20




18




98


Litigation costs


248




54




385




79


Amortization of loan fees


56




61




115




123


Issuance costs for preferred stock redemption


1,659







1,659





















Adjusted net income attributable to common stockholders

    before income taxes


10,945




5,382




18,232




9,871


















Provision for income taxes at 24.5% and 31.0% before preferred

    dividend requirement, respectively


(2,791)




(1,827)




(4,701)




(3,377)


















Adjusted net income attributable to common stockholders

$

8,154



$

3,555



$

13,531



$

6,494


















Adjusted net income per common share - basic and diluted

$

0.16



$

0.07



$

0.27



$

0.13


















Weighted average common shares outstanding:
















Basic


49,461,982




49,174,789




49,449,956




49,130,167


Diluted


51,064,163




50,711,153




50,884,799




50,677,053


















 
















 (In thousands)

Trailing twelve months adjusted EBITDA (1):

Three months

ended

December 31,

2018


Three months

ended

September 30,

2018


Three months

ended

June 30,

2018


Three months

ended

March 31,

2018


Twelve months

ended

December 31,

2018

GAAP net income attributable to common stockholders

$

3,766


$

2,572


$

4,331


$

167


$

10,836

Preferred stock dividends


445



511



511



511



1,978

Issuance costs for preferred stock redemption


1,659









1,659
















GAAP net income attributable to Radiant Logistics, Inc.


5,870



3,083



4,842



678



14,473

Income tax expense


1,874



977



1,164



123



4,138

Depreciation and amortization


3,815



3,633



3,606



3,640



14,694

Net interest expense


860



777



764



745



3,146
















EBITDA


12,419



8,470



10,376



5,186



36,451
















Share-based compensation


464



331



398



386



1,579

Change in fair value of contingent consideration


(476)



(95)



(1,101)



35



(1,637)

Acquisition related costs


14



4



86



57



161

Litigation costs


248



137



214



53



652

Transition and lease termination costs


(11)





69





58

Foreign exchange gain


(159)



(34)



(125)



(7)



(325)
















Adjusted EBITDA

$

12,499


$

8,813


$

9,917


$

5,710


$

36,939

 

(1)

The Company adopted new revenue recognition policies in accordance with ASC 606 for periods on and after July 1, 2018. Results for the three months ended September 30, 2018 and December 31, 2018 are presented under the new revenue recognition policies in accordance with ASC 606.  Results for the three months ended March 31, 2018 and June 30, 2018 have not been adjusted and continue to be reported under the Company's historical revenue recognition policies in accordance with ASC 605.

 

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

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/radiant-logistics-announces-results-for-the-second-fiscal-quarter-ended-december-31-2018-300793423.html

SOURCE Radiant Logistics, Inc.

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