Market Overview

Radiant Logistics Announces Results For The Third Fiscal Quarter Ended March 31, 2019

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BELLEVUE, Wash., May 9, 2019 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE:RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and nine months ended March 31, 2019.

Third Fiscal Quarter Financial Highlights (Quarter Ended March 31, 2019)

  • Revenues increased to a record $206.0 million for the third fiscal quarter ended March 31, 2019, up $2.1 million or 1.0%, compared to revenues of $203.9 million for the comparable prior year period.
  • Net revenues increased to a record $52.7 million for the third fiscal quarter ended March 31, 2019, up $4.1 million or 8.4%, compared to net revenues of $48.6 million for the comparable prior year period.
  • Net income attributable to common stockholders increased to a record $2.9 million, or $0.06 per basic and fully diluted share, compared to net income of $0.2 million, or $0.00 per basic and fully diluted share for the comparable prior year period.
  • Adjusted net income attributable to common stockholders, a non-GAAP financial measure, increased to a record $5.6 million, or $0.11 per basic and fully diluted share for the third fiscal quarter ended March 31, 2019, compared to adjusted net income attributable to common stockholders of $2.7 million, or $0.05 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% for the three months ended March 31, 2019 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 $8.4 million for the third fiscal quarter ended March 31, 2019, up $2.7 million or 47.4%, compared to adjusted EBITDA of $5.7 million for the comparable prior year period.
  • Adjusted EBITDA margin (expressed as a function of net revenues) increased 425 basis points to a record 16.0% for the third fiscal quarter ended March 31, 2019, compared to Adjusted EBITDA margin of 11.8% for the comparable prior year period.

CEO Comments

"We are pleased to report another quarter of record results for the third fiscal quarter ended March 31, 2019, highlighted by continued margin expansion along with strong cashflows," said Bohn Crain, Founder and CEO, "We posted record results for the March quarter with revenues of $206.0 million, up $2.1 million or 1.0%; net revenues of $52.7 million, up $4.1 million or 8.4%; and also saw our net revenue margins up 177 basis points to 25.6% from 23.8% for the comparable prior year period. We also reported record net income attributable to common stockholders of $2.9 million, up $2.7 million; adjusted net income attributable to common shareholders of $5.6 million, up $2.9 million or 107.4%; and Adjusted EBITDA of $8.4 million, up $2.7 million or 47.4% over the comparable prior year period. In addition, we also saw improvement in our Adjusted EBITDA margins, which increased 425 basis points to a record 16.0%, from 11.8% for the comparable prior year period.

In the U.S. we reported revenues of $179.1 million, up $1.9 million or 1.1% and net revenues of $45.4 million, up $2.9 million or 6.8% over the comparable prior year period. U.S. transportation net revenues of $44.2 million were up $2.6 million or 6.3% from the comparable prior year period. U.S. value added services net revenues of $1.1 million were up $0.2 million or 22.2%. In Canada we reported revenues of $27.1 million, up $0.1 million or 0.4% and net revenues of $7.4 million, up $1.3 million or 21.3% over the comparable prior year period. Canada's transportation net revenues of $4.4 million were up $0.2 million or 4.8% from the comparable prior year period. Canada's value added services net revenues of $3.0 million were up $1.1 million or 57.9%.

The business also continues to deliver strong cashflows generating $17.1 million in cash from operations from the three months ended March 31, 2019 and generating $33.5 million in cash from operations for the nine months ended March 31, 2019."

Crain continued: "We are encouraged by our continued strong financial performance with trailing twelve month adjusted EBITDA through March 31, 2019 of $39.7 million. Having retired the $21.0 million preferred stock in December, we continue to pay down debt and as of the end of the quarter we had approximately $16.9 million drawn on the Company's $75.0 million credit facility and total net debt of approximately $34.7 million, less than one times our trailing twelve month adjusted EBITDA.

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."

Third Fiscal Quarter Ended March 31, 2019 – Financial Results

For the three months ended March 31, 2019, Radiant reported net income attributable to common stockholders of $2.9 million on $206.0 million of revenues, or $0.06 per basic and fully diluted share. For the three months ended March 31, 2018, Radiant reported net income attributable to common stockholders of $0.2 million on $203.9 million of revenues, or $0.00 per basic and fully diluted share.

For the three months ended March 31, 2019, Radiant reported adjusted net income attributable to common stockholders of $5.6 million, or $0.11 per basic and fully diluted share. For the three months ended March 31, 2018, Radiant reported adjusted net income attributable to common stockholders of $2.7  million, or $0.05 per basic and fully diluted share.

For the three months ended March 31, 2019, Radiant reported Adjusted EBITDA of $8.4 million, compared to $5.7 million for the comparable prior year period.

Nine Months Ended March 31, 2019 – Financial Results

For the nine months ended March 31, 2019, Radiant reporting net income attributable to common stockholders of $9.3 million (including a charge of $1.7 million related to the redemption of the Company's preferred stock) on $685.9 million of revenues, or $0.19 per basic and 0.18 per fully diluted share. For the nine months ended March 31, 2018, Radiant reported net income attributable to common stockholders of $3.8 million on $608.6 million of revenues, or $0.08 per basic and fully diluted share.

For the nine months ended March 31, 2019, Radiant reported adjusted net income attributable to common stockholders of $19.1 million, or $0.39 per basic and 0.37 per fully diluted share. For the nine months ended March 31, 2018, Radiant reported adjusted net income attributable to common stockholders of $9.2 million or $0.19 per basic and 0.18 per fully diluted share. 

For the nine months ended March 31, 2019, Radiant reported Adjusted EBITDA of $29.7 million, compared to $19.3 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Thursday, May 9, 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:  

Thursday, May 9, 2019 at 4:30 PM Eastern



DIAL-IN           

US (877) 407-8031; Intl. (201) 689-8031



REPLAY          

May 10, 2019 at 9:30 AM Eastern to May 23, 2019 at 4:30 PM Eastern, US (877) 481-4010;


Intl. (919) 882-2331 (Replay ID number: 48252)

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/48252.

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)


March 31,



June 30,




2019



2018




(unaudited)






ASSETS









Current assets:









Cash and cash equivalents


$

5,484



$

6,992


Accounts receivable, net of allowance of $2,539 and $1,703, respectively



90,728




137,578


Contract assets



20,691





Income tax receivable



309




2,105


Prepaid expenses and other current assets



9,569




6,599


Total current assets



126,781




153,274











Technology and equipment, net



19,983




18,566











Goodwill



65,389




65,389


Intangible assets, net



58,035




65,264


Deposits and other assets



1,266




2,945


Total other long-term assets



124,690




133,598


Total assets


$

271,454



$

305,438











LIABILITIES AND EQUITY









Current liabilities:









Accounts payable


$

78,148



$

90,153


Operating partner commissions payable



13,286




14,322


Accrued expenses



6,076




5,404


Current portion of notes payable



3,953




3,726


Current portion of contingent consideration



110




960


Transition and lease termination liability



399




1,385


Other current liabilities



607




295


Total current liabilities



102,579




116,245











Notes payable, net of current portion



36,232




43,197


Contingent consideration, net of current portion



290




1,615


Deferred rent liability



923




1,020


Deferred income taxes



7,873




8,665


Other long-term liabilities



701




1,082


Total long-term liabilities



46,019




55,579


Total liabilities



148,598




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; 49,630,506 and 49,511,907
    
shares issued, and 49,538,708 and 49,420,109 shares outstanding, respectively



31




31


Additional paid-in capital



99,882




117,968


Treasury stock, at cost, 91,798 shares



(253)




(253)


Retained earnings



22,422




15,539


Accumulated other comprehensive income



401




186


Total Radiant Logistics, Inc. stockholders' equity



122,483




133,472


Non-controlling interest



373




142


Total equity



122,856




133,614


Total liabilities and equity


$

271,454



$

305,438


 

 

 

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)



 (In thousands, except share and per share data)

Three Months Ended March 31,



Nine Months Ended March 31,




2019




2018



2019



2018


Revenues

$

206,048



$

203,921



$

685,868



$

608,612


















Operating expenses:
















Cost of transportation and other services


153,302




155,327




514,293




467,050


Operating partner commissions


23,125




22,194




76,309




61,414


Personnel costs


14,806




14,671




45,256




43,573


Selling, general and administrative expenses


6,812




6,596




21,458




19,250


Depreciation and amortization


3,847




3,640




11,295




10,783


Transition and lease termination costs








(11)




107


Change in fair value of contingent consideration


(611)




35




(1,182)




(75)


Total operating expenses


201,281




202,463




667,418




602,102


















Income from operations


4,767




1,458




18,450




6,510


















Other income (expense):
















Interest income


13




10




37




26


Interest expense


(684)




(755)




(2,345)




(2,338)


Foreign currency transaction gains (losses)


(24)




7




169




(132)


Other


49




103




258




329


Total other expense


(646)




(635)




(1,881)




(2,115)


















Income before income taxes


4,121




823




16,569




4,395


















Income tax benefit (expense)


(942)




(123)




(3,793)




1,091


















Net income


3,179




700




12,776




5,486


Less: net income attributable to non-controlling interest


(247)




(22)




(891)




(139)


















Net income attributable to Radiant Logistics, Inc.


2,932




678




11,885




5,347


Less: preferred stock dividends





(511)




(956)




(1,534)


Less: issuance costs for preferred stock redemption








(1,659)





















Net income attributable to common stockholders

$

2,932



$

167



$

9,270



$

3,813


















Other comprehensive income:
















Foreign currency translation gain (loss)


(278)




446




215




(149)


Comprehensive income

$

2,901



$

1,146



$

12,991



$

5,337


















Income per share attributable to common stockholders:
















Basic

$

0.06



$



$

0.19



$

0.08


Diluted

$

0.06



$



$

0.18



$

0.08


















Weighted average common shares outstanding:
















Basic


49,515,717




49,334,300




49,471,556




49,197,218


Diluted


51,169,321




50,630,307




50,979,319




50,660,478


 

 

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, 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 nine months ended March 31, 2019 and a 31% tax rate for the three and nine months ended March 31, 2018 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.

 

 

 (In thousands)

Three Months Ended March 31,



Nine Months Ended March 31,


Net Revenues (Non-GAAP measure)

2019



2018



2019



2018


Total revenues

$

206,048



$

203,921



$

685,868



$

608,612


Cost of transportation and other services


153,302




155,327




514,293




467,050


















Net revenues

$

52,746



$

48,594



$

171,575



$

141,562


Net revenues margin


25.6

%



23.8

%



25.0

%



23.3

%



















 (In thousands)

Three Months Ended March 31,



Nine Months Ended March 31,


Reconciliation of GAAP net income to adjusted EBITDA

2019



2018



2019



2018


GAAP net income attributable to common stockholders

$

2,932



$

167



$

9,270



$

3,813


Preferred stock dividends





511




956




1,534


Issuance costs for preferred stock redemption








1,659





















GAAP net income attributable to Radiant Logistics, Inc.


2,932




678




11,885




5,347


Income tax expense (benefit)


942




123




3,793




(1,091)


Depreciation and amortization


3,847




3,640




11,295




10,783


Net interest expense


671




745




2,308




2,312


















EBITDA


8,392




5,186




29,281




17,351


















Share-based compensation


409




386




1,204




1,116


Change in fair value of contingent consideration


(611)




35




(1,182)




(75)


Acquisition related costs


75




57




93




154


Litigation costs


148




53




533




132


Transition and lease termination costs








(11)




107


MM&D start-up costs











410


Foreign currency transaction loss (gain)


24




(7)




(169)




132


















Adjusted EBITDA

$

8,437



$

5,710



$

29,749



$

19,327


Adjusted EBITDA as a % of Net Revenues


16.0

%



11.8

%



17.3

%



13.7

%



















 (In thousands, except share and per share data)

Three Months Ended March 31,



Nine Months Ended March 31,


Reconciliation of GAAP net income to adjusted net income:

2019



2018



2019



2018


GAAP net income attributable to common stockholders

$

2,932



$

167



$

9,270



$

3,813


Adjustments to net income:
















Income tax expense (benefit)


942




123




3,793




(1,091)


Depreciation and amortization


3,847




3,640




11,295




10,783


Change in fair value of contingent consideration


(611)




35




(1,182)




(75)


Transition and lease termination costs








(11)




107


Acquisition related costs


75




57




93




154


Litigation costs


148




53




533




132


Amortization of debt issuance costs


56




60




171




184


Issuance costs for preferred stock redemption








1,659





















Adjusted net income attributable to common stockholders

    before income taxes


7,389




4,135




25,621




14,007


















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

    dividend requirement, respectively


(1,810)




(1,440)




(6,511)




(4,818)


















Adjusted net income attributable to common stockholders

$

5,579



$

2,695



$

19,110



$

9,189


















Adjusted net income per common share:
















Basic

$

0.11



$

0.05



$

0.39



$

0.19


Diluted

$

0.11



$

0.05



$

0.37



$

0.18


















Weighted average common shares outstanding:
















Basic


49,515,717




49,334,300




49,471,556




49,197,218


Diluted


51,169,321




50,630,307




50,979,319




50,660,478


 

 

 (In thousands)

Trailing twelve months adjusted EBITDA (1):

Three months

ended

March 31,

2019



Three months

ended

December 31,

2018



Three months

ended

September 30,

2018



Three months

ended

June 30,

2018



Twelve months

ended

March 31,

2019


GAAP net income attributable to common stockholders

$

2,932



$

3,766



$

2,572



$

4,331



$

13,601


Preferred stock dividends





445




511




511




1,467


Issuance costs for preferred stock redemption





1,659










1,659






















GAAP net income attributable to Radiant Logistics, Inc.


2,932




5,870




3,083




4,842




16,727


Income tax expense


942




1,874




977




1,164




4,957


Depreciation and amortization


3,847




3,815




3,633




3,606




14,901


Net interest expense


671




860




777




764




3,072






















EBITDA


8,392




12,419




8,470




10,376




39,657






















Share-based compensation


409




464




331




398




1,602


Change in fair value of contingent consideration


(611)




(476)




(95)




(1,101)




(2,283)


Acquisition related costs


75




14




4




86




179


Litigation costs


148




248




137




214




747


Transition and lease termination costs





(11)







69




58


Foreign exchange gain


24




(159)




(34)




(125)




(294)






















Adjusted EBITDA

$

8,437



$

12,499



$

8,813



$

9,917



$

39,666






(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, December 31, 2018 and March 31, 2019 are presented under the new revenue recognition policies in accordance with ASC 606.  Results for the three months ended 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.)

 

 

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SOURCE Radiant Logistics, Inc.

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