BELLEVUE, Wash., Nov. 12, 2019 /PRNewswire/ -- Radiant
Logistics, Inc. (NYSE American: RLGT), a third-party logistics and
multimodal transportation services company, today reported
financial results for the three months ended September 30, 2019.
First Fiscal Quarter Financial Highlights (Quarter Ended
September 30, 2019)
- Revenues decreased to $200.5
million for the first fiscal quarter ended September 30, 2019, down $18.4 million or 8.4%, compared to revenues of
$218.9 million for the comparable
prior year period.
- Net revenues increased to $55.5
million for the first fiscal quarter ended September 30, 2019, up $0.6 million or 1.1%, compared to net revenues of
$54.9 million for the comparable
prior year period.
- Net income attributable to common stockholders increased to
$3.2 million, or $0.07 per basic and $0.06 per fully diluted share, compared to net
income attributable to common stockholders of $2.6 million, or $0.05 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 $6.5 million, or $0.13 per basic and fully diluted share for the
first fiscal quarter ended September 30,
2019, compared to adjusted net income attributable to common
stockholders of $5.4 million, or
$0.11 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.
- Adjusted EBITDA increased to $9.7
million for the first fiscal quarter ended September 30, 2019, up $0.9 million or 10.2%, compared to adjusted
EBITDA of $8.8 million for the
comparable prior year period. Adjusted EBITDA margin (expressed as
a function of net revenues) increased 137 basis points to 17.4% for
the first fiscal quarter ended September 30,
2019, compared to Adjusted EBITDA margin of 16.1% for the
comparable prior year period.
CEO Comments
"We are very pleased to report another quarter of solid
financial results for the first quarter ended September 30, 2019", said Bohn Crain, Founder and CEO. "We posted revenues
of $200.5 million, down $18.4 million or 8.4% over the comparable prior
year period. A number of factors contributed to our reduction in
revenues, including (1) our decision to exit certain lower margin
business earlier in the year, (2) non-recurring disaster relief
project work reported in the year ago period, 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 reported net revenues of $55.5 million, up $0.6
million or 1.1%.
For our fiscal quarter ended September
30, 2019, in the U.S., we reported revenues of $175.9 million, down $15.3
million or 8.0%; and net revenues of $48.2 million, up $1.1
million or 2.3% over the comparable prior year period. U.S.
transportation net revenues of $46.7
million were up $0.3 million
or 0.6% from the comparable prior year period. U.S. value added
services net revenues of $1.5 million
were up $0.8 million or 114.3%. In
Canada we reported revenues of
$24.8 million, down $2.9 million or 10.5%; and net revenues of
$7.3 million, down $0.4 million or 5.2% over the comparable prior
year period. Canada's
transportation net revenues of $3.9
million were down $1.1 million
or 22.0% from the comparable prior year period. Canada's value added services net revenues of
$3.4 million were up $0.7 million or 25.9%.
We are also pleased with how our non-asset based business model
continues to perform in what is generally recognized as a softer
freight environment. Although we saw a reduction in revenues during
the quarter compared to the comparable prior year period, the
economic impact to the company was generally off-set by improving
net revenue margins, up 262 basis points, and a reduction of
$0.6 million in operating partner
commissions, which resulted in net income attributable to common
stockholders of $3.2 million, up
$0.6 million or 23.1%; adjusted net
income attributable to common shareholders of $6.5 million, up $1.1
million or 20.4%; and adjusted EBITDA of $9.7 million, up $0.9
million or 10.2% over the comparable prior year period. In
addition, we also saw improvement in our adjusted EBITDA margins,
which increased 137 basis points to 17.4% from 16.1% for the
comparable prior year period."
Crain continued: "While we are pleased with our results for this
most recent quarter, the outlook for the upcoming quarter looks
relatively flat on a sequential basis as we are not seeing the
traditional peak season trade flows that we would generally expect
heading into the holidays. As an industry, we continue to work
through the market uncertainties associated with global trade,
tariffs and the prospect of impeachment along with digesting excess
truck capacity and inventory build ups that are part of the current
landscape.
In any event, we believe our success over this past year in
delivering profitability, continuing to invest in our scalable
back-office infrastructure and de-levering our balance sheet leaves
us very well positioned to take advantage of incremental organic
and acquisition growth opportunities as they present
themselves."
First Fiscal Quarter Ended September
30, 2019 – Financial Results
For the three months ended September 30,
2019, Radiant reported net income attributable to common
stockholders of $3.2 million on
$200.5 million of revenues, or
$0.07 per basic and $0.06 per fully diluted share. For the three
months ended September 30, 2018,
Radiant reported net income attributable to common stockholders of
$2.6 million on $218.9 million of revenues, or $0.05 per basic and fully diluted share.
For the three months ended September 30,
2019, Radiant reported adjusted net income attributable to
common stockholders of $6.5 million,
or $0.13 per basic and fully diluted
share. For the three months ended September
30, 2018, Radiant reported adjusted net income attributable
to common stockholders of $5.4
million, or $0.11 per basic and fully
diluted share.
For the three months ended September 30,
2019, Radiant reported Adjusted EBITDA of $9.7 million, compared to $8.8 million for the comparable prior year
period.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on
Tuesday, November 12, 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:
|
Tuesday, November 12,
2019 at 4:30 PM Eastern
|
|
|
DIAL-IN
|
US (844)
369-8774; Intl. (862) 298-0844
|
|
|
REPLAY
|
November 13, 2019 at
9:30 AM Eastern to November 26, 2019 at 4:30 PM Eastern, US
(877) 481-4010; Intl. (919) 882-2331 (Replay ID number:
56571)
|
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/56571.
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 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
|
|
|
|
September
30,
|
|
|
June 30,
|
|
|
|
2019
|
|
|
2019
|
|
(In thousands, except
share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,218
|
|
|
$
|
5,420
|
|
Accounts receivable,
net of allowance of $1,882 and $1,887, respectively
|
|
|
96,642
|
|
|
|
93,123
|
|
Contract
assets
|
|
|
22,099
|
|
|
|
17,777
|
|
Income tax
receivable
|
|
|
1,435
|
|
|
|
506
|
|
Prepaid expenses and
other current assets
|
|
|
8,373
|
|
|
|
8,066
|
|
Total current
assets
|
|
|
137,767
|
|
|
|
124,892
|
|
|
|
|
|
|
|
|
|
|
Technology and
equipment, net
|
|
|
20,327
|
|
|
|
20,127
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
65,389
|
|
|
|
65,389
|
|
Intangible assets,
net
|
|
|
53,112
|
|
|
|
55,742
|
|
Operating lease
right-of-use assets
|
|
|
14,912
|
|
|
|
—
|
|
Deposits and other
assets
|
|
|
1,570
|
|
|
|
1,560
|
|
Total other long-term
assets
|
|
|
134,983
|
|
|
|
122,691
|
|
Total
assets
|
|
$
|
293,077
|
|
|
$
|
267,710
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
77,087
|
|
|
$
|
74,097
|
|
Operating partner
commissions payable
|
|
|
11,538
|
|
|
|
12,891
|
|
Accrued
expenses
|
|
|
6,783
|
|
|
|
6,224
|
|
Current portion of
notes payable
|
|
|
3,707
|
|
|
|
3,687
|
|
Current portion of
operating lease liability
|
|
|
6,605
|
|
|
|
-
|
|
Current portion of
finance lease liability
|
|
|
681
|
|
|
|
683
|
|
Other current
liabilities
|
|
|
794
|
|
|
|
840
|
|
Total current
liabilities
|
|
|
107,195
|
|
|
|
98,422
|
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
current portion
|
|
|
35,505
|
|
|
|
30,047
|
|
Operating lease
liability, net of current portion
|
|
|
9,137
|
|
|
|
—
|
|
Finance lease
liability, net of current portion
|
|
|
2,998
|
|
|
|
3,161
|
|
Deferred income
taxes
|
|
|
7,609
|
|
|
|
7,838
|
|
Deferred rent
liability
|
|
|
—
|
|
|
|
862
|
|
Other long-term
liabilities
|
|
|
118
|
|
|
|
100
|
|
Total long-term
liabilities
|
|
|
55,367
|
|
|
|
42,008
|
|
Total
liabilities
|
|
|
162,562
|
|
|
|
140,430
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized; 49,899,036 and
49,678,262
shares
issued, and 49,807,238 and 49,586,464 shares outstanding,
respectively
|
|
|
31
|
|
|
|
31
|
|
Additional paid-in
capital
|
|
|
100,156
|
|
|
|
100,186
|
|
Treasury stock, at
cost, 91,798 shares
|
|
|
(253)
|
|
|
|
(253)
|
|
Retained
earnings
|
|
|
30,118
|
|
|
|
26,883
|
|
Accumulated other
comprehensive income
|
|
|
301
|
|
|
|
187
|
|
Total Radiant
Logistics, Inc. stockholders' equity
|
|
|
130,353
|
|
|
|
127,034
|
|
Non-controlling
interest
|
|
|
162
|
|
|
|
246
|
|
Total
equity
|
|
|
130,515
|
|
|
|
127,280
|
|
Total liabilities and
equity
|
|
$
|
293,077
|
|
|
$
|
267,710
|
|
RADIANT LOGISTICS,
INC. Condensed Consolidated Statements of Comprehensive
Income
|
|
|
Three Months Ended
September 30,
|
|
(In thousands, except
share and per share data)
|
2019
|
|
|
2018
|
|
Revenues
|
$
|
200,543
|
|
|
$
|
218,883
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of transportation
and other services
|
|
145,010
|
|
|
|
164,015
|
|
Operating partner
commissions
|
|
24,178
|
|
|
|
24,828
|
|
Personnel
costs
|
|
14,847
|
|
|
|
14,545
|
|
Selling, general and
administrative expenses
|
|
7,664
|
|
|
|
7,124
|
|
Depreciation and
amortization
|
|
4,036
|
|
|
|
3,633
|
|
Transition and lease
termination costs
|
|
(9)
|
|
|
|
—
|
|
Change in fair value
of contingent consideration
|
|
15
|
|
|
|
(95)
|
|
Total operating
expenses
|
|
195,741
|
|
|
|
214,050
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
4,802
|
|
|
|
4,833
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
|
15
|
|
|
|
12
|
|
Interest
expense
|
|
(707)
|
|
|
|
(789)
|
|
Foreign currency
transaction gains (losses)
|
|
(23)
|
|
|
|
34
|
|
Other
|
|
31
|
|
|
|
150
|
|
Total other
expense
|
|
(684)
|
|
|
|
(593)
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
4,118
|
|
|
|
4,240
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(787)
|
|
|
|
(977)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
3,331
|
|
|
|
3,263
|
|
Less: net income
attributable to non-controlling interest
|
|
(96)
|
|
|
|
(180)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Radiant Logistics, Inc.
|
|
3,235
|
|
|
|
3,083
|
|
Less: preferred stock
dividends
|
|
—
|
|
|
|
(511)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
3,235
|
|
|
$
|
2,572
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
|
114
|
|
|
|
(305)
|
|
Comprehensive
income
|
$
|
3,445
|
|
|
$
|
2,958
|
|
|
|
|
|
|
|
|
|
Income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
|
$
|
0.05
|
|
Diluted
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
49,662,540
|
|
|
|
49,437,930
|
|
Diluted
|
|
51,428,013
|
|
|
|
50,705,434
|
|
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"). Net Revenues, 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 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 fair value of contingent
consideration, amortization of loan fees, write-off of debt
issuance costs, 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, 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, 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
September 30,
|
|
Net Revenues
(Non-GAAP measure)
|
2019
|
|
|
2018
|
|
Total
revenues
|
$
|
200,543
|
|
|
$
|
218,883
|
|
Cost of
transportation and other services
|
|
145,010
|
|
|
|
164,015
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
55,533
|
|
|
$
|
54,868
|
|
Net revenues
margin
|
|
27.7
|
%
|
|
|
25.1
|
%
|
|
|
(In
thousands)
|
Three Months Ended
September 30,
|
|
Reconciliation of
GAAP net income to adjusted EBITDA
|
2019
|
|
|
2018
|
|
GAAP net income
attributable to common stockholders
|
$
|
3,235
|
|
|
$
|
2,572
|
|
Preferred stock
dividends
|
|
—
|
|
|
|
511
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Radiant Logistics, Inc.
|
|
3,235
|
|
|
|
3,083
|
|
Income tax
expense
|
|
787
|
|
|
|
977
|
|
Depreciation and
amortization
|
|
4,036
|
|
|
|
3,633
|
|
Net interest
expense
|
|
692
|
|
|
|
777
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
8,750
|
|
|
|
8,470
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
430
|
|
|
|
331
|
|
Change in fair value
of contingent consideration
|
|
15
|
|
|
|
(95)
|
|
Acquisition related
costs
|
|
285
|
|
|
|
4
|
|
Litigation
costs
|
|
184
|
|
|
|
137
|
|
Transition and lease
termination costs
|
|
(9)
|
|
|
|
—
|
|
Foreign currency
transaction loss (gain)
|
|
23
|
|
|
|
(34)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
9,678
|
|
|
$
|
8,813
|
|
Adjusted EBITDA as a %
of Net Revenues
|
|
17.4
|
%
|
|
|
16.1
|
%
|
|
|
(In thousands,
except share and per share data)
|
Three Months Ended
September 30,
|
|
Reconciliation of
GAAP net income to adjusted net income:
|
2019
|
|
|
2018
|
|
GAAP net income
attributable to common stockholders
|
$
|
3,235
|
|
|
$
|
2,572
|
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
Income tax
expense
|
|
787
|
|
|
|
977
|
|
Depreciation and
amortization
|
|
4,036
|
|
|
|
3,633
|
|
Change in fair value
of contingent consideration
|
|
15
|
|
|
|
(95)
|
|
Transition and lease
termination costs
|
|
(9)
|
|
|
|
—
|
|
Acquisition related
costs
|
|
285
|
|
|
|
4
|
|
Litigation
costs
|
|
184
|
|
|
|
137
|
|
Amortization of debt
issuance costs
|
|
55
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common stockholders
before income taxes
|
|
8,588
|
|
|
|
7,287
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes at 24.5% before preferred
dividend requirement
|
|
(2,104)
|
|
|
|
(1,911)
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common stockholders
|
$
|
6,484
|
|
|
$
|
5,376
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per common share - basic and diluted
|
$
|
0.13
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
49,662,540
|
|
|
|
49,437,930
|
|
Diluted
|
|
51,428,013
|
|
|
|
50,705,434
|
|
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SOURCE Radiant Logistics, Inc.