RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE SECOND FISCAL QUARTER ENDED DECEMBER 31, 2023
Continues to deliver solid financial results in face of continued market headwinds;
Generated
Debt free and well positioned for further growth
Financial Highlights – Three Months Ended
- Revenues decreased to
$201.1 million for the second fiscal quarter endedDecember 31, 2023 , down$77.0 million or 27.7%, compared to revenues of$278.1 million for the comparable prior year period. - Gross profit decreased to
$58.8 million for the second fiscal quarter endedDecember 31, 2023 , down$11.8 million or 16.7%, compared to gross profit of$70.6 million for the comparable prior year period. - Adjusted gross profit, a non-GAAP financial measure, decreased to
$62.0 million for the second fiscal quarter endedDecember 31, 2023 , down$12.0 million or 16.2%, compared to adjusted gross profit of$74.0 million for the comparable prior year period. - Net income attributable to
Radiant Logistics, Inc. decreased to$1.0 million , or$0.02 per basic and fully diluted share for the second fiscal quarter endedDecember 31, 2023 , down$3.8 million or 79.2%, compared to$4.8 million , or$0.10 per basic and fully diluted share for the comparable prior year period. - Adjusted net income, a non-GAAP financial measure, decreased to
$5.5 million , or$0.12 per basic and$0.11 per fully diluted share for the second fiscal quarter endedDecember 31, 2023 , down$5.6 million or 50.5%, compared to adjusted net income of$11.1 million , or$0.23 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 EBITDA, a non-GAAP financial measure, decreased to
$7.7 million for the second fiscal quarter endedDecember 31, 2023 , down$8.5 million or 52.5%, compared to adjusted EBITDA of$16.2 million for the comparable prior year period. - Adjusted EBITDA margin (adjusted EBITDA expressed as a percentage of adjusted gross profit), a non-GAAP financial measure, decreased to 12.4% or 950 basis points, for the second fiscal quarter ended
December 31, 2023 , compared to adjusted EBITDA margin of 21.9% for the comparable prior year period.
Acquisition Update
Effective
On
Stock Buy-Back
We purchased 532,401 shares of our common stock at an average cost of
As of
CEO Bohn Crain Comments on Results
"Our results for the quarter ended
As previously discussed, we believe we are well positioned to navigate through these slower freight markets as we find our way back to more normalized market conditions. At the same time, we remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully re-levering our balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buy-backs. Through this approach we believe, over time, will continue to deliver meaningful value for our shareholders, operating partners, and the end customers that we serve. In this regard, we are very excited about our recent agent station conversions with the acquisition of Daleray and the Select businesses, which will combine to solidify our offering in support of the cruise line industry in
Second Fiscal Quarter Ended
For the three months ended
For the three months ended
For the three months ended
Six Months Ended
For the six months ended
For the six months ended
For the six months ended
Earnings Call and Webcast Access Information
Conference Call Details
DATE/TIME: |
|
DIAL-IN |
US (888) 506-0062; Intl. (973) 528-0011 (Participant Access Code: 241021) |
REPLAY |
Intl. (919) 882-2331 (Replay ID number: 49820) |
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/2191/49820.
About
This report contains "forward-looking statements" within the meaning set forth in
Condensed Consolidated Balance Sheets |
|
|||||||
|
|
|||||||
|
|
|
|
|
|
|
||
(In thousands, except share and per share data) |
|
2023 |
|
|
2023 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
32,883 |
|
|
$ |
32,456 |
|
Accounts receivable, net of allowance of |
|
|
106,297 |
|
|
|
126,725 |
|
Contract assets |
|
|
7,227 |
|
|
|
6,180 |
|
Income tax receivable |
|
|
2,139 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
12,799 |
|
|
|
15,211 |
|
Total current assets |
|
|
161,345 |
|
|
|
180,572 |
|
|
|
|
|
|
|
|
||
Property, technology, and equipment, net |
|
|
26,327 |
|
|
|
25,389 |
|
|
|
|
|
|
|
|
||
|
|
|
89,251 |
|
|
|
89,203 |
|
Intangible assets, net |
|
|
31,746 |
|
|
|
36,641 |
|
Operating lease right-of-use assets |
|
|
50,042 |
|
|
|
56,773 |
|
Deposits and other assets |
|
|
4,333 |
|
|
|
5,163 |
|
Total other long-term assets |
|
|
175,372 |
|
|
|
187,780 |
|
Total assets |
|
$ |
363,044 |
|
|
$ |
393,741 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
71,213 |
|
|
$ |
84,561 |
|
Operating partner commissions payable |
|
|
14,476 |
|
|
|
18,360 |
|
Accrued expenses |
|
|
8,625 |
|
|
|
8,739 |
|
Income tax payable |
|
|
— |
|
|
|
369 |
|
Current portion of notes payable |
|
|
1,826 |
|
|
|
4,107 |
|
Current portion of operating lease liabilities |
|
|
10,535 |
|
|
|
11,273 |
|
Current portion of finance lease liabilities |
|
|
583 |
|
|
|
620 |
|
Current portion of contingent consideration |
|
|
— |
|
|
|
3,886 |
|
Other current liabilities |
|
|
300 |
|
|
|
258 |
|
Total current liabilities |
|
|
107,558 |
|
|
|
132,173 |
|
|
|
|
|
|
|
|
||
Operating lease liabilities, net of current portion |
|
|
46,119 |
|
|
|
52,120 |
|
Finance lease liabilities, net of current portion |
|
|
704 |
|
|
|
1,121 |
|
Contingent consideration, net of current portion |
|
|
90 |
|
|
|
287 |
|
Deferred tax liabilities |
|
|
1,456 |
|
|
|
2,944 |
|
Total long-term liabilities |
|
|
48,369 |
|
|
|
56,472 |
|
Total liabilities |
|
|
155,927 |
|
|
|
188,645 |
|
|
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
33 |
|
|
|
33 |
|
Additional paid-in capital |
|
|
109,728 |
|
|
|
108,516 |
|
|
|
|
(30,148) |
|
|
|
(27,067) |
|
Retained earnings |
|
|
129,200 |
|
|
|
125,593 |
|
Accumulated other comprehensive loss |
|
|
(1,936) |
|
|
|
(2,205) |
|
|
|
|
206,877 |
|
|
|
204,870 |
|
Non-controlling interest |
|
|
240 |
|
|
|
226 |
|
Total equity |
|
|
207,117 |
|
|
|
205,096 |
|
Total liabilities and equity |
|
$ |
363,044 |
|
|
$ |
393,741 |
|
Condensed Consolidated Statements of Comprehensive Income (unaudited) |
|
||||||||||||||
|
|
||||||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
(In thousands, except share and per share data) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues |
$ |
201,082 |
|
|
$ |
278,119 |
|
|
$ |
411,880 |
|
|
$ |
609,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of transportation and other services |
|
139,085 |
|
|
|
204,091 |
|
|
|
289,057 |
|
|
|
458,582 |
|
Operating partner commissions |
|
25,818 |
|
|
|
30,512 |
|
|
|
49,601 |
|
|
|
60,617 |
|
Personnel costs |
|
19,760 |
|
|
|
20,641 |
|
|
|
39,387 |
|
|
|
40,412 |
|
Selling, general and administrative expenses |
|
10,595 |
|
|
|
8,667 |
|
|
|
20,069 |
|
|
|
17,437 |
|
Depreciation and amortization |
|
4,364 |
|
|
|
6,914 |
|
|
|
8,890 |
|
|
|
13,693 |
|
Change in fair value of contingent consideration |
|
(204) |
|
|
|
150 |
|
|
|
(450) |
|
|
|
310 |
|
Total operating expenses |
|
199,418 |
|
|
|
270,975 |
|
|
|
406,554 |
|
|
|
591,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from operations |
|
1,664 |
|
|
|
7,144 |
|
|
|
5,326 |
|
|
|
18,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
621 |
|
|
|
59 |
|
|
|
1,207 |
|
|
|
98 |
|
Interest expense |
|
(291) |
|
|
|
(742) |
|
|
|
(593) |
|
|
|
(1,563) |
|
Foreign currency transaction gain (loss) |
|
(79) |
|
|
|
4 |
|
|
|
15 |
|
|
|
471 |
|
Change in fair value of interest rate swap contracts |
|
(531) |
|
|
|
(104) |
|
|
|
(733) |
|
|
|
587 |
|
Other |
|
135 |
|
|
|
24 |
|
|
|
162 |
|
|
|
29 |
|
Total other income (expense) |
|
(145) |
|
|
|
(759) |
|
|
|
58 |
|
|
|
(378) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
1,519 |
|
|
|
6,385 |
|
|
|
5,384 |
|
|
|
17,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
(404) |
|
|
|
(1,460) |
|
|
|
(1,418) |
|
|
|
(4,224) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
1,115 |
|
|
|
4,925 |
|
|
|
3,966 |
|
|
|
13,437 |
|
Less: net income attributable to non-controlling interest |
|
(130) |
|
|
|
(89) |
|
|
|
(359) |
|
|
|
(168) |
|
Net income attributable to |
$ |
985 |
|
|
$ |
4,836 |
|
|
$ |
3,607 |
|
|
$ |
13,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation gain (loss) |
|
1,397 |
|
|
|
901 |
|
|
|
269 |
|
|
|
(2,577) |
|
Comprehensive income |
$ |
2,512 |
|
|
$ |
5,826 |
|
|
$ |
4,235 |
|
|
$ |
10,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.02 |
|
|
$ |
0.10 |
|
|
$ |
0.08 |
|
|
$ |
0.27 |
|
Diluted |
$ |
0.02 |
|
|
$ |
0.10 |
|
|
$ |
0.07 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
46,990,818 |
|
|
|
48,243,204 |
|
|
|
47,144,388 |
|
|
|
48,494,260 |
|
Diluted |
|
48,907,452 |
|
|
|
49,427,420 |
|
|
|
48,991,819 |
|
|
|
49,865,216 |
|
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit to Adjusted Gross Profit, Net Income Attributable to
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 share-based compensation expense, changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, ransomware incident related costs, changes in fair value of interest rate swap contracts, restatement costs, transition and lease termination costs, foreign currency transaction gains and losses, extraordinary items, 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 condensed 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 condensed 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 |
|
|
Six Months Ended |
|
||||||||||
Reconciliation of adjusted gross profit to GAAP gross profit |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues |
$ |
201,082 |
|
|
$ |
278,119 |
|
|
$ |
411,880 |
|
|
$ |
609,090 |
|
Cost of transportation and other services (exclusive of depreciation |
|
(139,085) |
|
|
|
(204,091) |
|
|
|
(289,057) |
|
|
|
(458,582) |
|
Depreciation and amortization |
|
(3,205) |
|
|
|
(3,469) |
|
|
|
(6,538) |
|
|
|
(6,816) |
|
GAAP gross profit |
$ |
58,792 |
|
|
$ |
70,559 |
|
|
$ |
116,285 |
|
|
$ |
143,692 |
|
Depreciation and amortization |
|
3,205 |
|
|
|
3,469 |
|
|
|
6,538 |
|
|
|
6,816 |
|
Adjusted gross profit |
$ |
61,997 |
|
|
$ |
74,028 |
|
|
$ |
122,823 |
|
|
$ |
150,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP gross margin (GAAP gross profit as a percentage of revenues) |
|
29.2 |
% |
|
|
25.4 |
% |
|
|
28.2 |
% |
|
|
23.6 |
% |
Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues) |
|
30.8 |
% |
|
|
26.6 |
% |
|
|
29.8 |
% |
|
|
24.7 |
% |
(In thousands) |
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
Reconciliation of GAAP net income to adjusted EBITDA |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net income attributable to |
$ |
985 |
|
|
$ |
4,836 |
|
|
$ |
3,607 |
|
|
$ |
13,269 |
|
Income tax expense |
|
404 |
|
|
|
1,460 |
|
|
|
1,418 |
|
|
|
4,224 |
|
Depreciation and amortization (1) |
|
4,479 |
|
|
|
7,142 |
|
|
|
9,118 |
|
|
|
13,921 |
|
Net interest expense |
|
(330) |
|
|
|
683 |
|
|
|
(614) |
|
|
|
1,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EBITDA |
|
5,538 |
|
|
|
14,121 |
|
|
|
13,529 |
|
|
|
32,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Share-based compensation |
|
695 |
|
|
|
679 |
|
|
|
1,575 |
|
|
|
1,288 |
|
Change in fair value of contingent consideration |
|
(204) |
|
|
|
150 |
|
|
|
(450) |
|
|
|
310 |
|
Acquisition related costs |
|
252 |
|
|
|
22 |
|
|
|
321 |
|
|
|
49 |
|
Litigation costs |
|
741 |
|
|
|
247 |
|
|
|
1,105 |
|
|
|
366 |
|
Transition, lease termination, and other costs |
|
76 |
|
|
|
30 |
|
|
|
76 |
|
|
|
30 |
|
Change in fair value of interest rate swap contracts |
|
531 |
|
|
|
104 |
|
|
|
733 |
|
|
|
(587) |
|
Restatement costs |
|
— |
|
|
|
854 |
|
|
|
— |
|
|
|
1,007 |
|
Foreign currency transaction loss (gain) |
|
79 |
|
|
|
(4) |
|
|
|
(16) |
|
|
|
(471) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
7,708 |
|
|
$ |
16,203 |
|
|
$ |
16,873 |
|
|
$ |
34,871 |
|
Adjusted EBITDA margin (adjusted EBITDA as a % of adjusted gross profit) |
|
12.4 |
% |
|
|
21.9 |
% |
|
|
13.7 |
% |
|
|
23.2 |
% |
(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. |
(In thousands, except share and per share data) |
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
Reconciliation of GAAP net income to adjusted net income |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP net income attributable to |
$ |
985 |
|
|
$ |
4,836 |
|
|
$ |
3,607 |
|
|
$ |
13,269 |
|
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
404 |
|
|
|
1,460 |
|
|
|
1,418 |
|
|
|
4,224 |
|
Depreciation and amortization |
|
4,364 |
|
|
|
6,914 |
|
|
|
8,890 |
|
|
|
13,693 |
|
Change in fair value of contingent consideration |
|
(204) |
|
|
|
150 |
|
|
|
(450) |
|
|
|
310 |
|
Acquisition related costs |
|
252 |
|
|
|
22 |
|
|
|
321 |
|
|
|
49 |
|
Litigation costs |
|
741 |
|
|
|
247 |
|
|
|
1,105 |
|
|
|
366 |
|
Transition, lease termination, and other costs |
|
76 |
|
|
|
30 |
|
|
|
76 |
|
|
|
30 |
|
Change in fair value of interest rate swap contracts |
|
531 |
|
|
|
104 |
|
|
|
733 |
|
|
|
(587) |
|
Restatement costs |
|
— |
|
|
|
854 |
|
|
|
— |
|
|
|
1,007 |
|
Amortization of debt issuance costs |
|
130 |
|
|
|
140 |
|
|
|
255 |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income before income taxes |
|
7,279 |
|
|
|
14,757 |
|
|
|
15,955 |
|
|
|
32,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes at 24.5% |
|
(1,783) |
|
|
|
(3,615) |
|
|
|
(3,909) |
|
|
|
(7,990) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income |
$ |
5,496 |
|
|
$ |
11,142 |
|
|
$ |
12,046 |
|
|
$ |
24,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
0.12 |
|
|
$ |
0.23 |
|
|
$ |
0.26 |
|
|
$ |
0.51 |
|
Diluted |
$ |
0.11 |
|
|
$ |
0.23 |
|
|
$ |
0.25 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
46,990,818 |
|
|
|
48,243,204 |
|
|
|
47,144,388 |
|
|
|
48,494,260 |
|
Diluted |
|
48,907,452 |
|
|
|
49,427,420 |
|
|
|
48,991,819 |
|
|
|
49,865,216 |
|
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