RADIANT LOGISTICS ANNOUNCES SELECT PRELIMINARY UNAUDITED FINANCIAL RESULTS FOR FIRST FISCAL QUARTER ENDED SEPTEMBER 30, 2022
Record Results of Operation Estimated for First Fiscal Quarter
SEC Filings Expected to be Brought Current by Calendar Year End
CEO
The financial results presented below for the quarterly period ended
To keep its stockholders and the public informed on its current operations, the Company has determined to report on its preliminary management prepared unaudited results for the Company's first fiscal quarter ended
Financial Highlights – Three Months Ended
- Revenues increased to a record
$331.0 million for the first fiscal quarter endedSeptember 30, 2022 , up compared to revenues for the comparable prior year period. - Net revenues, a non-GAAP financial measure, increased to a record
$76.5 million for the first fiscal quarter endedSeptember 30, 2022 , up compared to net revenues for the comparable prior year period. - Net income attributable to
Radiant Logistics, Inc. increased to a record$8.0 million for the first fiscal quarter endedSeptember 30, 2022 , or$0.17 per basic and$0.16 per fully diluted share, up compared to net income per basic and fully diluted share for the comparable prior year period. - Adjusted net income, a non-GAAP financial measure, increased to a record
$13.4 million , or$0.27 per basic and fully diluted share for the first fiscal quarter endedSeptember 30, 2022 , up compared to adjusted net income 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, increased to a record
$18.5 million for the first fiscal quarter endedSeptember 30, 2022 , up compared to adjusted EBITDA for the comparable prior year period. - Adjusted EBITDA margin (adjusted EBITDA expressed as a percentage of net revenues), a non-GAAP financial measure, increased to a record 24.2% for the first fiscal quarter ended
September 30, 2022 , up compared to adjusted EBITDA margin for the comparable prior year period.
Acquisition Update
On
Stock Buy-back
The Company purchased 219,517 shares of its common stock at an average cost of
CEO
"We are very pleased to share our preliminary results for the September quarter, which reflects our continued trend of solid financial performance and solid gains as compared to our comparable prior year results, as we currently estimate our prior year results, subject to the completion of our prior year financial statements for the Restatement Periods" said
In addition, we continue to make good progress in our balanced approach to capital allocation through a combination of our strategic acquisition and stock buy-back initiatives. We completed the acquisition of our long-time strategic operating partner,
As we have previously discussed, while we remain very optimistic about our prospects for fiscal 2023 and beyond, we are beginning to see signs of a slowing economy and expect operations to return to more normalized levels and growth rates in coming quarters. We believe we are well positioned with a durable, diverse service offering and strong balance sheet to support our customers and continue to execute against our broader strategic initiatives."
Crain continued: "Notwithstanding our continued strong results, the Board and leadership team remain hyper-focused on bringing our filings current with the
As previously disclosed, on
Based on our work to date, the Company still believes the net effect of the restatements to fully diluted earnings per share during the Restatement Periods will be relatively modest as compared to our originally reported results. This reflects our best estimate of the adjustments that will flow though our financial statements and remain subject to further adjustment pending the completion of our work with the auditors to finalize the restated amounts. In any event, it is worth re-enforcing that, irrespective of the restatement process, we expect to report record results in terms of revenue and earnings for fiscal 2022 while maintaining historically low leverage on our balance sheet and enjoy good financial flexibility to continue to execute our strategy moving forward. I would characterize the work to be done around accruing for in-transit revenues as unfortunate growing pains, but we remain very optimistic about our prospects and opportunities to continue to leverage our best-in-class technology, robust North American footprint, extensive global network of service partners and recent acquisition of Navegate to continue to build on the great platform we have created here at Radiant."
About
This announcement contains "forward-looking statements" within the meaning set forth in
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Condensed Consolidated Balance Sheet |
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(preliminary) |
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(In thousands, except share and per share data) |
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2022 |
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ASSETS |
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Current assets: |
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|
|
|
Cash and cash equivalents |
|
$ |
26,544 |
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Accounts receivable, net of allowance of |
|
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164,439 |
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Contract assets |
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49,967 |
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Prepaid expenses and other current assets |
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15,327 |
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Total current assets |
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256,277 |
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Property, technology, and equipment, net |
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22,890 |
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|
|
|
|
|
|
|
|
86,751 |
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Intangible assets, net |
|
|
43,000 |
|
Operating lease right-of-use assets |
|
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44,143 |
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Deposits and other assets |
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5,660 |
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Long-term restricted cash |
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|
625 |
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Total other long-term assets |
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180,179 |
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Total assets |
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$ |
459,346 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
127,084 |
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Operating partner commissions payable |
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17,021 |
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Accrued expenses |
|
|
9,387 |
|
Income tax payable |
|
|
711 |
|
Current portion of notes payable |
|
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4,331 |
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Current portion of operating lease liability |
|
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10,027 |
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Current portion of finance lease liability |
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|
538 |
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Current portion of contingent consideration |
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2,600 |
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Other current liabilities |
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|
297 |
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Total current liabilities |
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171,996 |
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Notes payable, net of current portion |
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40,300 |
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Operating lease liability, net of current portion |
|
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38,712 |
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Finance lease liability, net of current portion |
|
|
1,084 |
|
Contingent consideration, net of current portion |
|
|
3,090 |
|
Deferred income taxes |
|
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6,207 |
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Total long-term liabilities |
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89,393 |
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Total liabilities |
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261,389 |
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Equity: |
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Common stock, |
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33 |
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Additional paid-in capital |
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106,314 |
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(17,344) |
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Retained earnings |
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|
113,044 |
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Accumulated other comprehensive loss |
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(4,274) |
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197,773 |
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Non-controlling interest |
|
|
184 |
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Total equity |
|
|
197,957 |
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Total liabilities and equity |
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$ |
459,346 |
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Condensed Consolidated Statement of Comprehensive Income |
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(preliminary) |
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Three Months Ended |
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(In thousands, except share and per share data) |
2022 |
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Revenues |
$ |
330,971 |
|
|
|
|
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Operating expenses: |
|
|
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Cost of transportation and other services |
|
254,491 |
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Operating partner commissions |
|
30,106 |
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Personnel costs |
|
19,771 |
|
Selling, general and administrative expenses |
|
8,769 |
|
Depreciation and amortization |
|
6,778 |
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Change in fair value of contingent consideration |
|
160 |
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Total operating expenses |
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320,075 |
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|
|
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Income from operations |
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10,896 |
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|
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Other income (expense) |
|
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Interest income |
|
40 |
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Interest expense |
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(821) |
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Foreign currency transaction gain |
|
467 |
|
Change in fair value of interest rate swap contracts |
|
690 |
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Other |
|
5 |
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Total other income (expense) |
|
381 |
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|
|
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Income before income taxes |
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11,277 |
|
|
|
|
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Income tax expense |
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(3,152) |
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|
|
|
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Net income |
|
8,125 |
|
Less: net income attributable to non-controlling interest |
|
(79) |
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|
|
|
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Net income attributable to |
$ |
8,046 |
|
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|
|
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Other comprehensive loss: |
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Foreign currency translation loss |
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(3,478) |
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Comprehensive income |
$ |
4,647 |
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Income per share: |
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Basic |
$ |
0.17 |
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Diluted |
$ |
0.16 |
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|
|
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Weighted average common shares outstanding: |
|
|
|
Basic |
|
48,745,317 |
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Diluted |
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50,303,117 |
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Reconciliation of Non-GAAP Measures
Reconciliation of Total Revenues to Net Revenues, Net Income Attributable to
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
(Preliminary)
As used in this report, Net Revenues, 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"). Net Revenues, 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, change in fair value of contingent consideration, transition costs, lease termination costs, acquisition related costs, litigation costs, amortization of debt issuance costs, change in fair value of interest rate swap contracts, and gain on forgiveness of debt.
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 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, gain on forgiveness of debt, 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, 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 |
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|
|
2022 |
|
|
Net Revenues (Non-GAAP measure) |
Preliminary |
|
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Total revenues |
$ |
330,971 |
|
Cost of transportation and other services |
|
254,491 |
|
|
|
|
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Net revenues |
$ |
76,480 |
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Net margin |
|
23.1 |
% |
(In thousands) |
Three Months Ended |
|
|
|
2022 |
|
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Reconciliation of GAAP net income to adjusted EBITDA |
Preliminary |
|
|
Net income attributable to |
$ |
8,046 |
|
Income tax expense |
|
3,152 |
|
Depreciation and amortization |
|
6,778 |
|
Net interest expense |
|
781 |
|
|
|
|
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EBITDA |
|
18,757 |
|
|
|
|
|
Share-based compensation |
|
609 |
|
Change in fair value of contingent consideration |
|
160 |
|
Acquisition related costs |
|
27 |
|
Litigation costs |
|
120 |
|
Change in fair value of interest rate swap contracts |
|
(690) |
|
Foreign currency transaction gain |
|
(467) |
|
|
|
|
|
Adjusted EBITDA |
$ |
18,516 |
|
Adjusted EBITDA margin (Adjusted EBITDA as a % of Net Revenues) |
|
24.2 |
% |
(In thousands, except share and per share data) |
Three Months Ended |
|
|
|
2022 |
|
|
Reconciliation of GAAP net income to adjusted net income |
Preliminary |
|
|
GAAP net income attributable to |
$ |
8,046 |
|
Adjustments to net income: |
|
|
|
Income tax expense |
|
3,152 |
|
Depreciation and amortization |
|
6,778 |
|
Change in fair value of contingent consideration |
|
160 |
|
Acquisition related costs |
|
27 |
|
Litigation costs |
|
120 |
|
Change in fair value of interest rate swap contracts |
|
(690) |
|
Amortization of debt issuance costs |
|
110 |
|
|
|
|
|
Adjusted net income before income taxes |
|
17,703 |
|
|
|
|
|
Provision for income taxes at 24.5% |
|
(4,337) |
|
|
|
|
|
Adjusted net income |
$ |
13,366 |
|
|
|
|
|
Adjusted net income per common share: |
|
|
|
Basic |
$ |
0.27 |
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Diluted |
$ |
0.27 |
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|
|
|
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Weighted average common shares outstanding: |
|
|
|
Basic |
|
48,745,317 |
|
Diluted |
|
50,303,117 |
|
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