Results impacted by macro-economic trends in
transportation industry but show improvement over
comparable pre-pandemic period
RENTON,
Wash., May 10, 2023 /PRNewswire/ -- Radiant
Logistics, Inc. (NYSE American: RLGT), a technology-enabled global
transportation and value-added logistics services company, today
reported financial results for the three and nine months ended
March 31, 2023.
Financial Highlights – Three Months Ended
March 31, 2023
- Revenues decreased to $244.2
million for the third fiscal quarter ended March 31, 2023, down $197.1 million or 44.7%, compared to revenues of
$441.3 million for the comparable
prior year period. Excluding $62.2
million in project charter business in the year ago period,
revenues were down $134.9 million or
35.6%. Revenue increased $38.2
million or 18.5% when compared to the quarter ended
March 31, 2019, the most recent
comparable pre-pandemic period.
- Gross profit decreased to $63.8
million for the third fiscal quarter ended March 31, 2023, down $16.3
million or 20.3%, compared to gross profit of $80.1 million for the comparable prior year
period. Gross profit increased $14.2
million or 28.6% when compared to the quarter ended
March 31, 2019, the most recent
comparable pre-pandemic period.
- Adjusted gross profit, a non-GAAP financial measure, decreased
to $67.0 million for the third fiscal
quarter ended March 31, 2023, down
$16.5 million or 19.8%, compared to
adjusted gross profit of $83.5
million for the comparable prior year period. Adjusted gross
profit increased $14.3 million or
27.1% when compared to the quarter ended March 31, 2019, the most recent comparable
pre-pandemic period.
- Net income attributable to Radiant Logistics, Inc. decreased to
$4.2 million, or $0.09 per basic and $0.08 per fully diluted share for the third
fiscal quarter ended March 31, 2023,
down $9.4 million or 69.1%, compared
to $13.6 million, or $0.27 per basic and fully diluted share for the
comparable prior year period. Net income attributable to Radiant
Logistics, Inc. increased $1.3
million or 44.8% when compared to the quarter ended
March 31, 2019, the most recent
comparable pre–pandemic period.
- Adjusted net income, a non-GAAP financial measure, decreased to
$8.2 million, or $0.17 per basic and fully diluted share for the
third fiscal quarter ended March 31,
2023, down $7.9 million or
49.1%, compared to adjusted net income of $16.1 million, or $0.32 per basic and fully diluted share for the
comparable prior year period. Adjusted net income is calculated by
applying a normalized tax rate of 24.5% and excluding other items
not considered part of regular operating activities. Adjusted net
income increased $2.6 million or
46.4% when compared to the quarter ended March 31, 2019, the most recent comparable
pre-pandemic period.
- Adjusted EBITDA, a non-GAAP financial measure, decreased to
$11.6 million for the third fiscal
quarter ended March 31, 2023, down
$11.0 million or 48.7%, compared to
adjusted EBITDA of $22.6 million for
the comparable prior year period. Adjusted EBITDA increased
$3.2 million or 38.1% when compared
to the quarter ended March 31, 2019,
the most recent comparable pre-pandemic period.
- Adjusted EBITDA margin (Adjusted EBITDA expressed as a
percentage of adjusted gross profit), a non-GAAP financial measure,
decreased to 17.2% or 980 basis points, for the third fiscal
quarter ended March 31, 2023,
compared to Adjusted EBITDA margin of 27.0% for the comparable
prior year period. Adjusted EBITDA margin increased 120 basis
points when compared to the quarter ended March 31, 2019, the most recent comparable
pre-pandemic period.
Stock Buy-back
We purchased 839,864 shares of our common stock at an average
cost of $5.95 per share for an
aggregate cost of $5.0 million during
the nine months ended March 31, 2023. Under the terms of
our outstanding Rule 10b5-1 Repurchase Plan, we have purchased an
additional 651,917 shares of common stock subsequent to
March 31, 2023 and through May 5,
2023 for a total cost of $4.2
million inclusive of transaction costs, bringing the total
common stock repurchased under the plan to 2,243,840 shares.
As of March 31, 2023, the Company had 48,181,256
shares outstanding.
CEO Bohn Crain Comments on Results
"Our results for the March quarter were heavily impacted by the
rapid softening of the freight markets that has occurred in recent
months. These quickly evolving market conditions have negatively
impacted not only our results, but also the year-over-year
comparison to our record results for prior year period." said
Bohn Crain, Founder and CEO of
Radiant Logistics.
"The volatility that we have seen in the market as we have come
through the pandemic is unprecedented. While our core domestic
forwarding services has been relatively durable, our ocean imports
and intermodal/truck brokerage operations have been particularly
hard hit as a result of the dramatic fall-off from the robust
operating environment that was experienced last year. The
confluence of shippers continuing to manage through elevated
inventories, reduced imports and slowing economic growth, is having
a cascading effect across virtually every mode of transportation
where the balance of supply and demand has shifted from a tight
market a year ago to one that is now oversupplied. We believe we
are at or near the bottom of this cycle and would expect markets to
begin to find their way to more sustainable and normalized levels
over the balance of calendar year 2023."
Mr. Crain continued, "While our comparative year-over-year
numbers are down significantly from the historically strong freight
market created by the pandemic and associated supply chain
disruptions, our results for the quarter ended March continued to
trend meaningfully ahead of our historical financial results from
the pre-pandemic era. Our disciplined approach to capital
allocation and low leverage continues to serve us well and we
believe we are well positioned to navigate through this slower
period as shippers work through their remaining excess inventories
and we find our way back to more normalized market conditions. We
are in the strongest financial position in the history of the
Company and having generated over $76.1
million in cash from operations through the nine months
ended March 31, 2023, we remain virtually debt free
(negative net debt of $17.0 million
as of March 31, 2023), while continuing to make good
progress with our stock buy-back acquiring $5.0 million of our stock through the nine months
ended March 31, 2023, and $4.2
million subsequent to March 31, 2023 and through
May 5, 2023. Looking ahead, we expect
to continue our balanced approach to capital allocation through a
combination of agent station conversions, synergistic tuck–in
acquisitions, and stock buy–backs. Through this approach we will
continue to scale our business, leveraging our best–in–class
technology and extensive global network, which we believe, over
time, will deliver meaningful value for our shareholders, operating
partners, and the end customers that we serve."
Third Fiscal Quarter Ended March 31, 2023 –
Financial Results
For the three months ended March 31, 2023, Radiant
reported net income attributable to Radiant Logistics, Inc. of
$4.2 million on $244.2 million of revenues, or $0.09 per basic and $0.08 per fully diluted share. For the three
months ended March 31, 2022, Radiant reported net income
attributable to Radiant Logistics, Inc. of $13.6 million on $441.3
million of revenues, or $0.27
per basic and fully diluted share.
For the three months ended March 31, 2023, Radiant
reported adjusted net income, a non-GAAP financial measure, of
$8.2 million, or $0.17 per basic and fully diluted share. For the
three months ended March 31, 2022, Radiant reported
adjusted net income of $16.1 million,
or $0.32 per basic and fully diluted
share.
For the three months ended March 31, 2023, Radiant
reported Adjusted EBITDA, a non-GAAP financial measure, of
$11.6 million, compared to
$22.6 million for the comparable
prior year period.
Nine Months Ended March 31, 2023 – Financial
Results
For the nine months ended March 31, 2023, Radiant
reported net income attributable to Radiant Logistics, Inc. of
$17.5 million on $853.3 million of revenues, or $0.36 per basic and $0.35 per fully diluted share. For the nine
months ended March 31, 2022, Radiant reported net income
attributable to Radiant Logistics, Inc. of $27.7 million on $1,076.5
million of revenues, or $0.55
per basic and fully diluted share.
For the nine months ended March 31,
2023, Radiant reported adjusted net income, a non-GAAP
financial measure, of $32.8 million,
or $0.68 per basic and $0.66 per fully diluted share. For the nine
months ended March 31, 2022, Radiant
reported adjusted net income of $39.1
million, or $0.79 per basic
and $0.77 per fully diluted
share.
For the nine months ended March 31, 2023, Radiant
reported Adjusted EBITDA, a non-GAAP financial measure, of
$46.4 million, compared to
$54.5 million for the comparable
prior year period.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on
Wednesday, May 10, 2023 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:
|
Wednesday, May 10, 2023
at 4:30 PM Eastern
|
DIAL-IN
|
US (877) 545-0523;
Intl. (973) 528-0016 (Participant Access Code: 320004)
|
REPLAY
|
May 11, 2023 at 9:30 AM
Eastern to May 24, 2023 at 4:30 PM Eastern, US (877)
481-4010;
Intl. (919) 882-2331
(Replay ID number: 48355)
|
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/2191/48355
About Radiant Logistics (NYSE American: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) operates as a
third party logistics company, providing technology-enabled global
transportation and value-added logistics services primarily to
customers in the United States and
Canada. Through its comprehensive
service offerings, Radiant provides domestic and international
freight forwarding along with truck and rail brokerage services to
a diversified account base including manufacturers, distributors
and retailers, which it supports from an extensive network of
Radiant and agent-owned offices throughout North America and other key markets around the
world. Radiant's value-added logistics services include warehouse
and distribution, customs brokerage, order fulfillment, inventory
management and technology services.
This report 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 report. 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 larger strategic operating partners; our compliance with
financial and other covenants under our senior 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 or any other health pandemic or
environmental event on our operations and financial results;
continued disruptions in the global supply chain; higher
inflationary pressures particularly surrounding the costs of fuel;
potential adverse legal, reputational and financial effects on the
Company resulting from the ransomware incident or future cyber
incidents and the effectiveness of the Company's business
continuity plans in response to cyber incidents, like the
ransomware incident; the commercial, reputational and regulatory
risks to our business that may arise as a consequence of our need
to restate our financial statements; our longer-term relationship
with our senior lenders as a consequence of our need to restate our
financial statements; our temporary loss of the use of a
Registration Statement on Form S-3 to register securities in the
future; any disruption to our business that may occur on a
longer-term basis should we be unable to remediate during 2023
certain material weaknesses in our internal controls over financial
reporting, 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 Part 1 Item 1A of this report. 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,
|
|
(In thousands, except
share and per share data)
|
|
2023
|
|
|
2022
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
51,008
|
|
|
$
|
24,442
|
|
Accounts receivable,
net of allowance of $2,235 and $2,983, respectively
|
|
|
118,678
|
|
|
|
186,492
|
|
Contract
assets
|
|
|
33,327
|
|
|
|
61,154
|
|
Prepaid expenses and
other current assets
|
|
|
13,044
|
|
|
|
17,256
|
|
Total current
assets
|
|
|
216,057
|
|
|
|
289,344
|
|
|
|
|
|
|
|
|
Property, technology,
and equipment, net
|
|
|
25,252
|
|
|
|
24,823
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
88,969
|
|
|
|
88,199
|
|
Intangible assets,
net
|
|
|
39,159
|
|
|
|
48,545
|
|
Operating lease
right-of-use assets
|
|
|
58,307
|
|
|
|
41,111
|
|
Deposits and other
assets
|
|
|
5,591
|
|
|
|
4,704
|
|
Long-term restricted
cash
|
|
|
595
|
|
|
|
625
|
|
Total other long-term
assets
|
|
|
192,621
|
|
|
|
183,184
|
|
Total
assets
|
|
$
|
433,930
|
|
|
$
|
497,351
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
94,784
|
|
|
$
|
137,853
|
|
Operating partner
commissions payable
|
|
|
16,920
|
|
|
|
18,731
|
|
Accrued
expenses
|
|
|
7,183
|
|
|
|
11,349
|
|
Income tax
payable
|
|
|
2,639
|
|
|
|
4,035
|
|
Current portion of
notes payable
|
|
|
4,580
|
|
|
|
4,575
|
|
Current portion of
operating lease liabilities
|
|
|
11,184
|
|
|
|
7,641
|
|
Current portion of
finance lease liabilities
|
|
|
531
|
|
|
|
577
|
|
Current portion of
contingent consideration
|
|
|
3,874
|
|
|
|
2,600
|
|
Other current
liabilities
|
|
|
294
|
|
|
|
303
|
|
Total current
liabilities
|
|
|
141,989
|
|
|
|
187,664
|
|
|
|
|
|
|
|
|
Notes payable, net of
current portion
|
|
|
28,057
|
|
|
|
66,719
|
|
Operating lease
liabilities, net of current portion
|
|
|
53,593
|
|
|
|
37,776
|
|
Finance lease
liabilities, net of current portion
|
|
|
823
|
|
|
|
1,223
|
|
Contingent
consideration, net of current portion
|
|
|
756
|
|
|
|
2,930
|
|
Deferred income
taxes
|
|
|
2,304
|
|
|
|
6,482
|
|
Total long-term
liabilities
|
|
|
85,533
|
|
|
|
115,130
|
|
Total
liabilities
|
|
|
227,522
|
|
|
|
302,794
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized; 51,545,728 and
51,265,543
shares issued, and 48,181,256 and 48,740,935
shares outstanding, respectively
|
|
|
33
|
|
|
|
33
|
|
Additional paid-in
capital
|
|
|
107,711
|
|
|
|
106,146
|
|
Treasury stock, at
cost, 3,364,472 and 2,524,608 shares, respectively
|
|
|
(21,004)
|
|
|
|
(16,004)
|
|
Retained
earnings
|
|
|
122,450
|
|
|
|
104,998
|
|
Accumulated other
comprehensive loss
|
|
|
(3,251)
|
|
|
|
(796)
|
|
Total Radiant
Logistics, Inc. stockholders' equity
|
|
|
205,939
|
|
|
|
194,377
|
|
Non-controlling
interest
|
|
|
469
|
|
|
|
180
|
|
Total
equity
|
|
|
206,408
|
|
|
|
194,557
|
|
Total liabilities and
equity
|
|
$
|
433,930
|
|
|
$
|
497,351
|
|
RADIANT LOGISTICS,
INC.
Condensed
Consolidated Statements of Comprehensive Income
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
(In thousands, except
share and per share data)
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
(as
restated)
|
|
|
|
|
|
(as
restated)
|
|
Revenues
|
$
|
244,171
|
|
|
$
|
441,310
|
|
|
$
|
853,261
|
|
|
$
|
1,076,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of transportation
and other services
|
|
177,154
|
|
|
|
357,849
|
|
|
|
635,736
|
|
|
|
857,169
|
|
Operating partner
commissions
|
|
26,499
|
|
|
|
30,986
|
|
|
|
87,116
|
|
|
|
89,716
|
|
Personnel
costs
|
|
19,817
|
|
|
|
19,853
|
|
|
|
60,229
|
|
|
|
52,165
|
|
Selling, general and
administrative expenses
|
|
10,591
|
|
|
|
10,312
|
|
|
|
27,999
|
|
|
|
25,451
|
|
Depreciation and
amortization
|
|
4,549
|
|
|
|
4,684
|
|
|
|
18,242
|
|
|
|
13,386
|
|
Transition, lease
termination, and other costs
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
Change in fair value
of contingent consideration
|
|
(697)
|
|
|
|
152
|
|
|
|
(387)
|
|
|
|
607
|
|
Total operating
expenses
|
|
237,913
|
|
|
|
423,836
|
|
|
|
828,965
|
|
|
|
1,038,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
6,258
|
|
|
|
17,474
|
|
|
|
24,296
|
|
|
|
37,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
216
|
|
|
|
4
|
|
|
|
315
|
|
|
|
10
|
|
Interest
expense
|
|
(683)
|
|
|
|
(1,001)
|
|
|
|
(2,246)
|
|
|
|
(2,359)
|
|
Foreign currency
transaction gain
|
|
331
|
|
|
|
105
|
|
|
|
802
|
|
|
|
480
|
|
Change in fair value
of interest rate swap contracts
|
|
(355)
|
|
|
|
1,985
|
|
|
|
231
|
|
|
|
1,562
|
|
Other
|
|
123
|
|
|
|
32
|
|
|
|
153
|
|
|
|
139
|
|
Total other income
(expense)
|
|
(368)
|
|
|
|
1,125
|
|
|
|
(745)
|
|
|
|
(168)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,890
|
|
|
|
18,599
|
|
|
|
23,551
|
|
|
|
37,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(1,346)
|
|
|
|
(4,276)
|
|
|
|
(5,570)
|
|
|
|
(9,191)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
4,544
|
|
|
|
14,323
|
|
|
|
17,981
|
|
|
|
28,633
|
|
Less: net income
attributable to non-controlling interest
|
|
(361)
|
|
|
|
(756)
|
|
|
|
(529)
|
|
|
|
(918)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Radiant Logistics, Inc.
|
$
|
4,183
|
|
|
$
|
13,567
|
|
|
$
|
17,452
|
|
|
$
|
27,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
|
122
|
|
|
|
479
|
|
|
|
(2,455)
|
|
|
|
(443)
|
|
Comprehensive
income
|
$
|
4,666
|
|
|
$
|
14,802
|
|
|
$
|
15,526
|
|
|
$
|
28,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.09
|
|
|
$
|
0.27
|
|
|
$
|
0.36
|
|
|
$
|
0.55
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
0.27
|
|
|
$
|
0.35
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
48,180,834
|
|
|
|
49,443,267
|
|
|
|
48,391,310
|
|
|
|
49,675,642
|
|
Diluted
|
|
49,304,991
|
|
|
|
50,632,293
|
|
|
|
49,679,999
|
|
|
|
50,843,179
|
|
Reconciliation of Non-GAAP
Measures
RADIANT LOGISTICS, INC.
Reconciliation of Gross Profit to Adjusted
Gross Profit, Net Income Attributable to Radiant Logistics,
Inc.
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted
EBITDA Margin
(unaudited)
As used in this report adjusted gross profit, adjusted net
income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are not
measures of financial performance or liquidity under United States
Generally Accepted Accounting Principles ("GAAP"). Adjusted gross
profit, adjusted net income, 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, management uses a 24.5% tax rate to calculate
the provision for income taxes 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 income taxes,
depreciation and amortization, net interest expense, share-based
compensation, change in fair value of contingent consideration,
transition costs, lease termination costs, acquisition related
costs, ransomware related costs, litigation costs, change in fair
value of interest rate swap contracts, and gain on foreign currency
transaction.
We commonly refer to the term "adjusted gross profit" when
commenting about our Company and the results of operations.
Adjusted gross profit is a non-GAAP measure calculated as revenues
less directly related operations and expenses attributed to the
Company's services. Adjusted gross profit is calculated as GAAP
gross profit exclusive of depreciation and amortization, which are
reported separately. We believe adjusted gross profit is 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 interest, taxes, and 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 property, 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, 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. Adjusted
gross profit, adjusted net income, EBITDA, adjusted EBITDA, and
adjusted EBITDA margin should not be considered in isolation or as
a substitute for any of the consolidated statements of
comprehensive income 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,
|
|
Reconciliation of
adjusted gross profit to GAAP gross profit
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
(as
restated)
|
|
|
|
|
|
(as
restated)
|
|
Revenues
|
$
|
244,171
|
|
|
$
|
441,310
|
|
|
$
|
853,261
|
|
|
$
|
1,076,486
|
|
Cost of transportation
and other services (exclusive of depreciation and
amortization, shown separately below)
|
|
(177,154)
|
|
|
|
(357,849)
|
|
|
|
(635,736)
|
|
|
|
(857,169)
|
|
Depreciation and
amortization
|
|
(3,205)
|
|
|
|
(3,322)
|
|
|
|
(8,545)
|
|
|
|
(9,653)
|
|
GAAP gross
profit
|
$
|
63,812
|
|
|
$
|
80,139
|
|
|
$
|
208,980
|
|
|
$
|
209,664
|
|
Depreciation and
amortization
|
|
3,205
|
|
|
|
3,322
|
|
|
|
8,545
|
|
|
|
9,653
|
|
Adjusted gross
profit
|
$
|
67,017
|
|
|
$
|
83,461
|
|
|
$
|
217,525
|
|
|
$
|
219,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin (GAAP
gross profit as a percentage of revenues)
|
|
26.1
|
%
|
|
|
18.2
|
%
|
|
|
24.5
|
%
|
|
|
19.5
|
%
|
Adjusted gross profit
percentage (adjusted gross profit as a percentage of
revenues)
|
|
27.4
|
%
|
|
|
18.9
|
%
|
|
|
25.5
|
%
|
|
|
20.4
|
%
|
(In
thousands)
|
Three Months
Ended
|
|
Reconciliation of
adjusted gross profit to GAAP gross profit
|
March 31,
2019
|
|
Revenues
|
$
|
206,048
|
|
Cost of transportation
and other services (exclusive of depreciation and
amortization, shown separately below)
|
|
(153,302)
|
|
Depreciation and
amortization
|
|
(3,127)
|
|
GAAP gross
profit
|
$
|
49,619
|
|
Depreciation and
amortization
|
|
3,127
|
|
Adjusted gross
profit
|
$
|
52,746
|
|
|
|
|
GAAP gross margin (GAAP
gross profit as a percentage of revenues)
|
|
24.1
|
%
|
Adjusted gross profit
percentage (adjusted gross profit as a percentage of
revenues)
|
|
25.6
|
%
|
(In
thousands)
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
Reconciliation of
GAAP net income to adjusted EBITDA
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
(as
restated)
|
|
|
|
|
|
(as
restated)
|
|
Net income attributable
to Radiant Logistics, Inc.
|
$
|
4,183
|
|
|
$
|
13,567
|
|
|
$
|
17,452
|
|
|
$
|
27,715
|
|
Income tax
expense
|
|
1,346
|
|
|
|
4,276
|
|
|
|
5,570
|
|
|
|
9,191
|
|
Depreciation and
amortization (1)
|
|
4,663
|
|
|
|
4,684
|
|
|
|
18,585
|
|
|
|
13,386
|
|
Net interest
expense
|
|
467
|
|
|
|
997
|
|
|
|
1,931
|
|
|
|
2,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
10,659
|
|
|
|
23,524
|
|
|
|
43,538
|
|
|
|
52,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
543
|
|
|
|
539
|
|
|
|
1,832
|
|
|
|
1,311
|
|
Change in fair value
of contingent consideration
|
|
(697)
|
|
|
|
152
|
|
|
|
(387)
|
|
|
|
607
|
|
Acquisition related
costs
|
|
98
|
|
|
|
6
|
|
|
|
147
|
|
|
|
502
|
|
Ransomware incident
related costs, net
|
|
12
|
|
|
|
279
|
|
|
|
12
|
|
|
|
1,031
|
|
Litigation
costs
|
|
384
|
|
|
|
163
|
|
|
|
751
|
|
|
|
484
|
|
Transition, lease
termination, and other costs
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
Change in fair value
of interest rate swap contracts
|
|
355
|
|
|
|
(1,985)
|
|
|
|
(231)
|
|
|
|
(1,562)
|
|
Restatement costs
(2)
|
|
537
|
|
|
|
—
|
|
|
|
1,544
|
|
|
|
—
|
|
Foreign currency
transaction gain
|
|
(331)
|
|
|
|
(105)
|
|
|
|
(802)
|
|
|
|
(480)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
11,560
|
|
|
$
|
22,573
|
|
|
$
|
46,434
|
|
|
$
|
54,534
|
|
Adjusted EBITDA margin
(Adjusted EBITDA as a % of Adjusted
Gross Profit)
|
|
17.2
|
%
|
|
|
27.0
|
%
|
|
|
21.3
|
%
|
|
|
24.9
|
%
|
(1)
|
Depreciation and
amortization for the purposes of calculating Adjusted EBITDA, a
non-GAAP financial measure, includes depreciation
expenses recognized on certain computer software as a
service.
|
(2)
|
The restatement costs
for nine months ended March 31, 2023 included $1.0 million, which
was not previously included in the six months
ended December 31, 2022.
|
(In
thousands)
|
Three Months
Ended
|
|
Reconciliation of
GAAP net income to adjusted EBITDA
|
March 31,
2019
|
|
Net income attributable
to Radiant Logistics, Inc.
|
|
2,932
|
|
Income tax
expense
|
|
942
|
|
Depreciation and
amortization
|
|
3,847
|
|
Net interest
expense
|
|
671
|
|
|
|
|
EBITDA
|
|
8,392
|
|
|
|
|
Share-based
compensation
|
|
409
|
|
Change in fair value
of contingent consideration
|
|
(611)
|
|
Acquisition related
costs
|
|
75
|
|
Litigation
costs
|
|
148
|
|
Foreign currency
transaction loss
|
|
24
|
|
|
|
|
Adjusted
EBITDA
|
$
|
8,437
|
|
Adjusted EBITDA margin
(Adjusted EBITDA as a % of Adjusted Gross Profit)
|
|
16.0
|
%
|
(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
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
(as
restated)
|
|
|
|
|
|
(as
restated)
|
|
GAAP net income
attributable to Radiant Logistics, Inc.
|
$
|
4,183
|
|
|
$
|
13,567
|
|
|
$
|
17,452
|
|
|
$
|
27,715
|
|
Adjustments to net
income:
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
1,346
|
|
|
|
4,276
|
|
|
|
5,570
|
|
|
|
9,191
|
|
Depreciation and
amortization
|
|
4,549
|
|
|
|
4,684
|
|
|
|
18,242
|
|
|
|
13,386
|
|
Change in fair value
of contingent consideration
|
|
(697)
|
|
|
|
152
|
|
|
|
(387)
|
|
|
|
607
|
|
Acquisition related
costs
|
|
98
|
|
|
|
6
|
|
|
|
147
|
|
|
|
502
|
|
Ransomware incident
related costs, net
|
|
12
|
|
|
|
279
|
|
|
|
12
|
|
|
|
1,031
|
|
Litigation
costs
|
|
384
|
|
|
|
163
|
|
|
|
751
|
|
|
|
484
|
|
Transition, lease
termination, and other costs
|
|
—
|
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
Change in fair value
of interest rate swap contracts
|
|
355
|
|
|
|
(1,985)
|
|
|
|
(231)
|
|
|
|
(1,562)
|
|
Restatement
costs(1)
|
|
537
|
|
|
|
—
|
|
|
|
1,544
|
|
|
|
—
|
|
Amortization of debt
issuance costs
|
|
123
|
|
|
|
124
|
|
|
|
373
|
|
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
before income taxes
|
|
10,890
|
|
|
|
21,266
|
|
|
|
43,503
|
|
|
|
51,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes at 24.5%
|
|
(2,668)
|
|
|
|
(5,210)
|
|
|
|
(10,658)
|
|
|
|
(12,674)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$
|
8,222
|
|
|
$
|
16,056
|
|
|
$
|
32,845
|
|
|
$
|
39,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.17
|
|
|
$
|
0.32
|
|
|
$
|
0.68
|
|
|
$
|
0.79
|
|
Diluted
|
$
|
0.17
|
|
|
$
|
0.32
|
|
|
$
|
0.66
|
|
|
$
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
48,180,834
|
|
|
|
49,443,267
|
|
|
|
48,391,310
|
|
|
|
49,675,642
|
|
Diluted
|
|
49,304,991
|
|
|
|
50,632,293
|
|
|
|
49,679,999
|
|
|
|
50,843,179
|
|
(1)
|
The restatement costs
for nine months ended March 31, 2023 included $1.0 million, which
was not previously included in the six months
ended December 31, 2022.
|
(In thousands, except
share and per share data)
|
Three Months
Ended
|
|
Reconciliation of
GAAP net income to adjusted net income
|
March 31,
2019
|
|
GAAP net income
attributable to Radiant Logistics, Inc.
|
$
|
2,932
|
|
Adjustments to net
income:
|
|
|
Income tax
expense
|
|
942
|
|
Depreciation and
amortization
|
|
3,847
|
|
Change in fair value
of contingent consideration
|
|
(611)
|
|
Acquisition related
costs
|
|
75
|
|
Litigation
costs
|
|
148
|
|
Amortization of debt
issuance costs
|
|
56
|
|
|
|
|
Adjusted net income
before income taxes
|
|
7,389
|
|
|
|
|
Provision for income
taxes at 24.5%
|
|
(1,810)
|
|
|
|
|
Adjusted net
income
|
$
|
5,579
|
|
|
|
|
Adjusted net income per
common share - basic and diluted
|
$
|
0.11
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
Basic
|
|
49,515,717
|
|
Diluted
|
|
51,169,321
|
|
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SOURCE Radiant Logistics, Inc.