BELLEVUE, Wash., May 11, 2020 /PRNewswire/ -- Radiant
Logistics, Inc. (NYSE American: RLGT), a third-party logistics and
multimodal transportation services company, today reported
financial results for the three and nine months ended March 31, 2020.
Financial Highlights – Three Months Ended March 31, 2020
- Revenues reported at $177.2
million for the third fiscal quarter ended March 31, 2020, compared to revenues of
$206.0 million for the comparable
prior year period.
- Net revenues reported at $47.8
million for the third fiscal quarter ended March 31, 2020, compared to net revenues of
$52.7 million for the comparable
prior year period.
- Net income attributable to common stockholders reported at
$0.1 million, or $0.00 per basic and fully diluted share, compared
to net income attributable to common stockholders of $2.9 million, or $0.06 per basic and fully diluted share for the
comparable prior year period.
- Adjusted net income attributable to common stockholders, a
non-GAAP financial measure, reported at $4.0
million, or $0.08 per basic
and fully diluted share for the third fiscal quarter ended
March 31, 2020, compared to adjusted
net income attributable to common stockholders of $5.6 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 reported at $6.1
million for the third fiscal quarter ended March 31, 2020, compared to adjusted EBITDA of
$8.4 million for the comparable prior
year period.
Financial Highlights - Nine Months Ended March 31, 2020
- Revenues reported at $579.7
million for the nine months ended March 31, 2020, compared to revenues of
$685.9 million for the comparable
prior year period.
- Net revenues reported at $159.3
million for the nine months ended March 31, 2020, compared to net revenues of
$171.6 million for the comparable
prior year period.
- Net income attributable to common stockholders reported at
$5.9 million, or $0.12 per basic and $0.11 per fully diluted share, compared to net
income attributable to common stockholders of $9.3 million, or $0.19 per basic and $0.18 per fully diluted share for the comparable
prior year period.
- Adjusted net income attributable to common stockholders, a
non-GAAP financial measure, reported at $16.7 million, or $0.34 per basic and $0.33 per fully diluted share, compared to
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 comparable
prior determination. 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 reported at $25.1
million for the nine months ended March 31, 2020, compared to $29.7 million for the comparable prior year
period.
CEO Bohn Crain comments on
results, including impact of COVID-19
"I'm very proud of the Radiant Network and our response to these
unprecedented times," said Bohn
Crain, Founder and CEO of Radiant Logistics. "We began the
quarter looking to make use of our recently expanded credit
facility to execute against a series of smaller strategic tuck-in
acquisitions, while accelerating our stock buy-back program and
bullishly looking for growth opportunities in which we could add
value to our loyal customers and dedicated network of strategic
operating partners. Unfortunately, as we came to recognize the true
magnitude of the COVID-19 pandemic, we had to quickly pivot to a
new set of priorities. Since late March, we shifted our focus to
delivering against four key objectives: ensuring the health and
safety of our employees; providing supply chain continuity for our
customers, operating partners and carriers; protecting the economic
security of our people to the greatest extent possible; and taking
the steps necessary to mitigate the impacts of the slowing economy
on our own business. Confronted with an eroding demand within the
global shipping community, during March we also had to make the
difficult decision to initiate a series of workforce reduction
measures impacting employees across our U.S. operations. This
included 20% salary reductions, reduction in hours, furloughs and
terminations. As part of this initiative, I initiated a 50%
reduction in my base salary and the balance of our U.S.-based
leadership team agreed to reduce their base salaries by 20%. In
addition, we all agreed to forgo any bonuses under the Company's
discretionary quarterly cash bonus plan. In support of these
initiatives, our Board of Directors has agreed to a 50% reduction
in their Board cash compensation. All of these concessions will
remain in effect until our senior leaders and Board conclude that
the adverse effects of COVID-19 have subsided and the Company
regains its pre-COVID financial trends. The impact of these cost
reductions, however, will not be more fully realized until the
quarter ending June 30, 2020 given
these initiatives were not launched until late March 2020."
Mr. Crain continued, "We have long espoused the benefits of our
variable-cost non-asset-based business model. Those benefits have
never been appreciated as much as they have during these past
months as the decentralized nature of our non-asset and agent-based
business model has provided a clear advantage in an environment
where social distancing can disrupt businesses that operate on a
more centralized basis. Even so, we have been exposed to an
unprecedented combination of global reduction in demand and output
that has nearly crippled many of our customers in the airline,
retail, tradeshow, hospitality and travel and leisure businesses
across the country. While others could shrink under these
pressures, our extraordinary team of associates across the Radiant
Network has continued to deliver for our customers. With mission
critical teammates reporting for duty to over 100 operating
locations across North America to
keep essential freight moving, we have been able to leverage our
industry leading technology to allow the majority of our 450
U.S.-based employees to work from home. This initiative has helped
to protect the health and well-being of our employees and their
families, reduced the risk of community spread and substantially
limited the potential for disruption to our operations. I could not
be more appreciative of the people that report to work each day
(whether in-person or remotely) and make this company that we
started some 14 years ago, a special place to work.
In addition, our business model has also shown its strength in
the diversity of our service offerings. Although the pandemic has
had a substantial negative impact on many of the industry verticals
and customers that we serve, the Radiant Network is proud to be
playing an active role in the fight against COVID-19: delivering
personal protective equipment ("PPE"), food and beverage, consumer
goods, technology and other essential products for our customers
across North America and around
the world. Notwithstanding this great effort by our team, we
anticipate the contraction in our business from the shelter-at-home
mandates, closing of manufacturing facilities and general global
economic slowdown will more than off-set any near term benefit from
our support of essential businesses. We are working hard to
mitigate the negative financial impacts of COVID-19 with a number
of initiatives. We have tabled any acquisition opportunities,
suspended our stock buy-back program, deferred discretionary
technology investments, reduced discretionary operating expenses
and in late March initiated a series of what we hope will be
temporary workforce reductions to mitigate our declining gross
margins until our business recovers.
At the same time, we have also taken steps to provide additional
support to our strategic operating partners and are intensely
focused on working with them to understand the underlying financial
health of our legacy customers in the face of COVID-19. We
anticipate providing our strategic operating partners with
additional financial support in connection with slow and non-paying
customers for which they are responsible. In addition, and in an
effort to encourage our on-going sales efforts, we have also
launched the Radiant SPARC (Securing Profitable Accounts at
Reasonable Credit) Program to provide our strategic operating
partners with a financial incentive to pursue new business while
taking a heightened interest in the underlying credit quality of
potential new accounts.
The impact of COVID-19 will likely continue to have an adverse
effect on our financial results for the foreseeable future.
However, all things considered, we are very fortunate to have been
disciplined in our allocation of capital over the years and entered
this economic downturn with very low leverage on our balance sheet.
Ultimately, the economy will recover. As this happens, we
believe this will create a great opportunity to support our
customers in bringing their supply chains back online. In the
interim, we will continue to work to keep our employees safe and
the essential freight moving, while giving our strategic operating
partners the support they need. At the same time, we will continue
to flex our non-asset based business model and remain focused on
the cost reduction initiatives that we have underway. We believe
that all these initiatives, when taken together, will ensure that
we emerge from the pandemic as a stronger more vibrant
competitor."
Third Fiscal Quarter Ended March 31,
2020 – Financial Results
For the three months ended March 31,
2020, Radiant reported net income attributable to common
stockholders of $0.1 million on
$177.2 million of revenues, or
$0.00 per basic and fully diluted
share. 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,
2020, Radiant reported adjusted net income attributable to
common stockholders of $4.0 million,
or $0.08 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,
2020, Radiant reported Adjusted EBITDA of $6.1 million, compared to $8.4 million for the comparable prior year
period.
Nine Months Ended March 31,
2020 – Financial Results
For the nine months ended March 31,
2020, Radiant reporting net income attributable to common
stockholders of $5.9 million on
$579.7 million of revenues, or
$0.12 per basic and $0.11 per fully diluted share. For the
nine months ended March 31,
2019, Radiant reported net income attributable to common
stockholders of $9.3 million 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, 2020, Radiant
reported adjusted net income attributable to common stockholders of
$16.7 million, or $0.34 per basic and $0.33 per 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,
2020, Radiant reported Adjusted EBITDA of $25.1 million, compared to $29.7 million for the comparable prior year
period.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on
Monday, May 11, 2020 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, May 11, 2020
at 4:30 PM Eastern
|
|
|
DIAL-IN
|
US (844) 407-9500;
Intl. (862) 298-0850
|
|
|
REPLAY
|
May 12, 2020 at 9:30
AM Eastern to May 25, 2020 at 4:30 PM Eastern, US (877)
481-4010;
|
|
Intl. (919) 882-2331
(Replay ID number: 34585)
|
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.webcaster4.com/Webcast/Page/2191/34585.
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 set forth in United
States securities laws and regulations – that is, statements
related to future, not past, events. In this context,
forward-looking statements often address our expected future
business, financial performance and financial condition, and often
contain words such as "anticipate," "believe," "estimates,"
"expect," "future," "intend," "may," "plan," "see," "seek,"
"strategy," or "will" or the negative thereof or any variation
thereon or similar terminology or expressions. These
forward-looking statements are not guarantees and are subject to
known and unknown risks, uncertainties and assumptions about us
that may cause our actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by such forward-looking statements. We have developed our
forward-looking statements based on management's beliefs and
assumptions, which in turn rely upon information available to them
at the time such statements were made. Such forward-looking
statements reflect our current perspectives on our business, future
performance, existing trends and information as of the date of this
announcement. These include, but are not limited to, our beliefs
about future revenue and expense levels, growth rates, prospects
related to our strategic initiatives and business strategies, along
with express or implied assumptions about, among other things: our
continued relationships with our strategic operating partners; the
performance of our historic business, as well as the businesses we
have recently acquired, at levels consistent with recent trends and
reflective of the synergies we believe will be available to us as a
result of such acquisitions; our ability to successfully integrate
our recently acquired businesses; our ability to locate suitable
acquisition opportunities and secure the financing necessary to
complete such acquisitions; transportation costs remaining in-line
with recent levels and expected trends; our ability to mitigate, to
the best extent possible, our dependence on current management and
certain of our larger strategic operating partners; our compliance
with financial and other covenants under our indebtedness; the
absence of any adverse laws or governmental regulations affecting
the transportation industry in general, and our operations in
particular; the impact of COVID-19 on our operations and financial
results; and such other factors that may be identified from time to
time in our Securities and Exchange Commission ("SEC") filings and
other public announcements, including those set forth under the
caption "Risk Factors" in our Form 10-K for the year ended
June 30, 2019 and our Form 10-Q for
the quarter ended March 31, 2020. In
addition, the global economic climate and additional or unforeseen
effects from the COVID-19 pandemic amplify many of these risks. All
subsequent written and oral forward-looking statements attributable
to us, or persons acting on our behalf, are expressly qualified in
their entirety by the foregoing. Readers are cautioned not to place
undue reliance on our forward-looking statements, as they speak
only as of the date made. We disclaim any obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
RADIANT LOGISTICS,
INC.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2020
|
|
|
2019
|
|
(In thousands, except
share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
16,697
|
|
|
$
|
5,420
|
|
Accounts receivable,
net of allowance of $1,683 and $1,887, respectively
|
|
|
93,021
|
|
|
|
93,123
|
|
Contract
assets
|
|
|
15,754
|
|
|
|
17,777
|
|
Income tax
receivable
|
|
|
806
|
|
|
|
506
|
|
Prepaid expenses and
other current assets
|
|
|
15,886
|
|
|
|
8,066
|
|
Total current
assets
|
|
|
142,164
|
|
|
|
124,892
|
|
|
|
|
|
|
|
|
|
|
Property, technology,
and equipment, net
|
|
|
19,684
|
|
|
|
20,127
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
72,078
|
|
|
|
65,389
|
|
Intangible assets,
net
|
|
|
53,845
|
|
|
|
55,742
|
|
Operating lease
right-of-use assets
|
|
|
12,610
|
|
|
|
—
|
|
Deposits and other
assets
|
|
|
4,004
|
|
|
|
1,560
|
|
Total other long-term
assets
|
|
|
142,537
|
|
|
|
122,691
|
|
Total
assets
|
|
$
|
304,385
|
|
|
$
|
267,710
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
66,687
|
|
|
$
|
74,097
|
|
Operating partner
commissions payable
|
|
|
10,391
|
|
|
|
12,891
|
|
Accrued
expenses
|
|
|
6,339
|
|
|
|
6,224
|
|
Current portion of
notes payable
|
|
|
3,609
|
|
|
|
3,687
|
|
Current portion of
operating lease liability
|
|
|
6,476
|
|
|
|
—
|
|
Current portion of
finance lease liability
|
|
|
686
|
|
|
|
683
|
|
Other current
liabilities
|
|
|
1,471
|
|
|
|
840
|
|
Total current
liabilities
|
|
|
95,659
|
|
|
|
98,422
|
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
current portion
|
|
|
58,619
|
|
|
|
30,047
|
|
Operating lease
liability, net of current portion
|
|
|
6,862
|
|
|
|
—
|
|
Finance lease
liability, net of current portion
|
|
|
2,668
|
|
|
|
3,161
|
|
Deferred income
taxes
|
|
|
6,301
|
|
|
|
7,838
|
|
Deferred rent
liability
|
|
|
—
|
|
|
|
862
|
|
Other long-term
liabilities
|
|
|
1,810
|
|
|
|
100
|
|
Total long-term
liabilities
|
|
|
76,260
|
|
|
|
42,008
|
|
Total
liabilities
|
|
|
171,919
|
|
|
|
140,430
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized; 50,028,486 and
49,678,262
shares issued, and 49,395,639 and 49,586,464 shares outstanding,
respectively
|
|
|
31
|
|
|
|
31
|
|
Additional paid-in
capital
|
|
|
101,324
|
|
|
|
100,186
|
|
Treasury stock, at
cost, 632,847 and 91,798 shares, respectively
|
|
|
(2,749)
|
|
|
|
(253)
|
|
Retained
earnings
|
|
|
32,758
|
|
|
|
26,883
|
|
Accumulated other
comprehensive income
|
|
|
864
|
|
|
|
187
|
|
Total Radiant
Logistics, Inc. stockholders' equity
|
|
|
132,228
|
|
|
|
127,034
|
|
Non-controlling
interest
|
|
|
238
|
|
|
|
246
|
|
Total
equity
|
|
|
132,466
|
|
|
|
127,280
|
|
Total liabilities and
equity
|
|
$
|
304,385
|
|
|
$
|
267,710
|
|
RADIANT LOGISTICS,
INC.
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
(In thousands, except
share and per share data)
|
|
2020
|
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Revenues
|
$
|
177,221
|
|
|
$
|
206,048
|
|
|
$
|
579,691
|
|
|
$
|
685,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of transportation
and other services
|
|
129,440
|
|
|
|
153,302
|
|
|
|
420,419
|
|
|
|
514,293
|
|
Operating partner
commissions
|
|
20,352
|
|
|
|
23,125
|
|
|
|
69,899
|
|
|
|
76,309
|
|
Personnel
costs
|
|
14,412
|
|
|
|
14,806
|
|
|
|
44,487
|
|
|
|
45,256
|
|
Selling, general and
administrative expenses
|
|
8,027
|
|
|
|
6,812
|
|
|
|
22,370
|
|
|
|
21,458
|
|
Depreciation and
amortization
|
|
4,282
|
|
|
|
3,847
|
|
|
|
12,413
|
|
|
|
11,295
|
|
Transition, lease
termination, and other costs
|
|
—
|
|
|
|
—
|
|
|
|
328
|
|
|
|
(11)
|
|
Change in fair value
of contingent consideration
|
|
3
|
|
|
|
(611)
|
|
|
|
52
|
|
|
|
(1,182)
|
|
Total operating
expenses
|
|
176,516
|
|
|
|
201,281
|
|
|
|
569,968
|
|
|
|
667,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
705
|
|
|
|
4,767
|
|
|
|
9,723
|
|
|
|
18,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
17
|
|
|
|
13
|
|
|
|
50
|
|
|
|
37
|
|
Interest
expense
|
|
(752)
|
|
|
|
(684)
|
|
|
|
(2,070)
|
|
|
|
(2,345)
|
|
Foreign currency
transaction gain (loss)
|
|
169
|
|
|
|
(24)
|
|
|
|
120
|
|
|
|
169
|
|
Other
|
|
89
|
|
|
|
49
|
|
|
|
164
|
|
|
|
258
|
|
Total other
expense
|
|
(477)
|
|
|
|
(646)
|
|
|
|
(1,736)
|
|
|
|
(1,881)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
228
|
|
|
|
4,121
|
|
|
|
7,987
|
|
|
|
16,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(102)
|
|
|
|
(942)
|
|
|
|
(1,850)
|
|
|
|
(3,793)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
126
|
|
|
|
3,179
|
|
|
|
6,137
|
|
|
|
12,776
|
|
Less: net income
attributable to non-controlling interest
|
|
(73)
|
|
|
|
(247)
|
|
|
|
(262)
|
|
|
|
(891)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Radiant Logistics, Inc.
|
|
53
|
|
|
|
2,932
|
|
|
|
5,875
|
|
|
|
11,885
|
|
Less: preferred stock
dividends
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(956)
|
|
Less: issuance costs
for preferred stock redemption
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,659)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
|
53
|
|
|
$
|
2,932
|
|
|
$
|
5,875
|
|
|
$
|
9,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
|
711
|
|
|
|
(278)
|
|
|
|
677
|
|
|
|
215
|
|
Comprehensive
income
|
$
|
837
|
|
|
$
|
2,901
|
|
|
$
|
6,814
|
|
|
$
|
12,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
—
|
|
|
$
|
0.06
|
|
|
$
|
0.12
|
|
|
$
|
0.19
|
|
Diluted
|
$
|
—
|
|
|
$
|
0.06
|
|
|
$
|
0.11
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
49,577,370
|
|
|
|
49,515,717
|
|
|
|
49,667,243
|
|
|
|
49,471,556
|
|
Diluted
|
|
50,974,994
|
|
|
|
51,169,321
|
|
|
|
51,266,348
|
|
|
|
50,979,319
|
|
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 Attributable to Common Stock, EBITDA, Adjusted
EBITDA, and Adjusted EBITDA Margin
(unaudited)
As used in this report, Net Revenues, Adjusted Net Income
Attributable to Common Stockholders, EBITDA, Adjusted EBITDA, and
Adjusted EBITDA Margin are not measures of financial performance or
liquidity under United States Generally Accepted Accounting
Principles ("GAAP"). Net Revenues, Adjusted Net Income Attributable
to Common Stockholders, EBITDA, Adjusted EBITDA, and Adjusted
EBITDA Margin 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 Attributable to Common Stockholders, 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 Attributable to Common
Stockholders, the Company adjusts for certain non-cash charges and
significant items that are not part of regular operating
activities. These adjustments include income taxes, depreciation
and amortization, change in fair value of contingent consideration,
transition costs, lease termination costs, acquisition related
costs, litigation costs, amortization of debt issuance costs, and
issuance costs for preferred stock redemption.
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 Attributable to Common Stockholders,
EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin 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)
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Total
revenues
|
$
|
177,221
|
|
|
$
|
206,048
|
|
|
$
|
579,691
|
|
|
$
|
685,868
|
|
Cost of
transportation and other services
|
|
129,440
|
|
|
|
153,302
|
|
|
|
420,419
|
|
|
|
514,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
|
47,781
|
|
|
$
|
52,746
|
|
|
$
|
159,272
|
|
|
$
|
171,575
|
|
Net revenues
margin
|
|
27.0
|
%
|
|
|
25.6
|
%
|
|
|
27.5
|
%
|
|
|
25.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
Reconciliation of
GAAP net income to adjusted EBITDA
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
GAAP net income
attributable to common stockholders
|
$
|
53
|
|
|
$
|
2,932
|
|
|
$
|
5,875
|
|
|
$
|
9,270
|
|
Preferred stock
dividends
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
956
|
|
Issuance costs for
preferred stock redemption
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Radiant Logistics, Inc.
|
|
53
|
|
|
|
2,932
|
|
|
|
5,875
|
|
|
|
11,885
|
|
Income tax
expense
|
|
102
|
|
|
|
942
|
|
|
|
1,850
|
|
|
|
3,793
|
|
Depreciation and
amortization
|
|
4,282
|
|
|
|
3,847
|
|
|
|
12,413
|
|
|
|
11,295
|
|
Net interest
expense
|
|
735
|
|
|
|
671
|
|
|
|
2,020
|
|
|
|
2,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
5,172
|
|
|
|
8,392
|
|
|
|
22,158
|
|
|
|
29,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
409
|
|
|
|
409
|
|
|
|
1,306
|
|
|
|
1,204
|
|
Change in fair value
of contingent consideration
|
|
3
|
|
|
|
(611)
|
|
|
|
52
|
|
|
|
(1,182)
|
|
Acquisition related
costs
|
|
183
|
|
|
|
75
|
|
|
|
495
|
|
|
|
93
|
|
Litigation
costs
|
|
400
|
|
|
|
148
|
|
|
|
832
|
|
|
|
533
|
|
Transition, lease
termination, and other costs
|
|
59
|
|
|
|
—
|
|
|
|
387
|
|
|
|
(11)
|
|
Foreign currency
transaction loss (gain)
|
|
(169)
|
|
|
|
24
|
|
|
|
(120)
|
|
|
|
(169)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
6,057
|
|
|
$
|
8,437
|
|
|
$
|
25,110
|
|
|
$
|
29,749
|
|
Adjusted EBITDA margin
(Adjusted EBITDA as a % of Net
Revenues)
|
|
12.7
|
%
|
|
|
16.0
|
%
|
|
|
15.8
|
%
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
attributable to common stockholders:
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
GAAP net income
attributable to common stockholders
|
$
|
53
|
|
|
$
|
2,932
|
|
|
$
|
5,875
|
|
|
$
|
9,270
|
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
102
|
|
|
|
942
|
|
|
|
1,850
|
|
|
|
3,793
|
|
Depreciation and
amortization
|
|
4,282
|
|
|
|
3,847
|
|
|
|
12,413
|
|
|
|
11,295
|
|
Change in fair value
of contingent consideration
|
|
3
|
|
|
|
(611)
|
|
|
|
52
|
|
|
|
(1,182)
|
|
Transition, lease
termination, and other costs
|
|
59
|
|
|
|
—
|
|
|
|
387
|
|
|
|
(11)
|
|
Acquisition related
costs
|
|
183
|
|
|
|
75
|
|
|
|
495
|
|
|
|
93
|
|
Litigation
costs
|
|
400
|
|
|
|
148
|
|
|
|
832
|
|
|
|
533
|
|
Amortization of debt
issuance costs
|
|
170
|
|
|
|
56
|
|
|
|
278
|
|
|
|
171
|
|
Issuance costs for
preferred stock redemption
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common stockholders
before income taxes
|
|
5,252
|
|
|
|
7,389
|
|
|
|
22,182
|
|
|
|
25,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes at 24.5% before preferred
dividend requirement
|
|
(1,287)
|
|
|
|
(1,810)
|
|
|
|
(5,435)
|
|
|
|
(6,511)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to common stockholders
|
$
|
3,965
|
|
|
$
|
5,579
|
|
|
$
|
16,747
|
|
|
$
|
19,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.08
|
|
|
$
|
0.11
|
|
|
$
|
0.34
|
|
|
$
|
0.39
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
0.11
|
|
|
$
|
0.33
|
|
|
$
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
49,577,370
|
|
|
|
49,515,717
|
|
|
|
49,667,243
|
|
|
|
49,471,556
|
|
Diluted
|
|
50,974,994
|
|
|
|
51,169,321
|
|
|
|
51,266,348
|
|
|
|
50,979,319
|
|
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SOURCE Radiant Logistics, Inc.