Radiant Logistics Announces Results For The Fourth Fiscal Quarter And Year Ended June 30, 2019

Edited 14/09/19

BELLEVUE, Wash., Sept. 12, 2019 /PRNewswire/ — Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and twelve months ended June 30, 2019.

Fiscal Year Financial Highlights (Year Ended June 30, 2019)

  • Revenues increased to a record $890.5 million for the fiscal year ended June 30, 2019, up $48.1 million or 5.7%, compared to revenues of $842.4 million for the comparable prior year period.
  • Net revenues increased to a record $230.1 million for the fiscal year ended June 30, 2019, up $30.0 million or 15.0%, compared to net revenues of $200.1 million for the comparable prior year period.
  • Net income attributable to common stockholders increased to $13.7 million, or $0.28 per basic and $0.27 per fully diluted share, compared to net income attributable to common stockholders of $8.1 million, or $0.17 per basic and $0.16 per fully diluted share for the comparable prior year period.
  • Adjusted net income attributable to common stockholders, a non-GAAP financial measure, increased to a record $26.6 million, or $0.54 per basic and $0.52 per fully diluted share for the fiscal year ended June 30, 2019, compared to adjusted net income attributable to common stockholders of $14.8 million, or $0.30 per basic and $0.29 per 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% for the year ended June 30, 2019 and 31.0% for the comparable prior year period and excluding other items not considered part of regular operating activities.
  • Adjusted EBITDA increased to a record $40.8 million for the fiscal year ended June 30, 2019, up $11.6 million or 39.7%, compared to adjusted EBITDA of $29.2 million for the comparable prior year period.
  • Adjusted EBITDA margin (expressed as a function of net revenues) increased 310 basis points to a record 17.7% for the fiscal year ended June 30, 2019, compared to Adjusted EBITDA margin of 14.6% for the comparable prior year period.

CEO Comments

“We are very pleased to report another year of solid financial results for fiscal 2019”, said Bohn Crain, Founder and CEO. “We set new records across several key financial metrics including record revenues of $890.5 million, up $48.1 million or 5.7%, record net revenues of $230.1 million up $30.0 million or 15.0%, record net income attributable to common stockholders of $13.7 million, up $5.6 million or 69.1%, record adjusted net income attributable to common stockholders of $26.6 million, up $11.8 million or 79.7%, and record  Adjusted EBITDA of $40.8 million, up $11.6 million or 39.7%.  In addition, we also set a new record in terms of our Adjusted EBITDA margins increased 310 basis points to 17.7% up from 14.6% over the comparable prior year period. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further expansion in our Adjusted EBITDA margins as we continue to scale the business and leverage the benefits of our on-going technology investments.

In the U.S., for our fiscal year ended June 30, 2019 we reported revenues of $779.7 million, up $44.3 million or 6.0% and net revenues of $198.1 million, up $23.4 million or 13.4% over the comparable prior year period. U.S. transportation net revenues of $193.8 million were up $21.9 million or 12.7% from the comparable prior year period. U.S. value added services net revenues of $4.3 million were up $1.5 million or 53.6%. In Canada we reported revenues of $111.3 million, up $3.0 million or 2.8% and net revenues of $32.0 million, up $6.6 million or 26.0% over the comparable prior year period. Canada’s transportation net revenues of $19.7 million were up $2.8 million or 16.6% from the comparable prior year period. Canada’s value added services net revenues of $12.3 million were up $3.8 million or 44.7%.”

Crain continued: “We are also pleased with our results for the fourth fiscal quarter ended June 30, 2019 given what was generally recognized as a softer freight environment,” said Bohn Crain, Founder and CEO, “Although we saw a reduction in revenues during the quarter, the economic impact to the company was generally off-set by improving net revenue margins, up 354 basis points, and a reduction of $1.2 million in operating partner commissions, which resulted in Adjusted EBITDA of $11.0 million, up $1.1 million or 11.1% over the comparable prior year period on relatively flat net revenues. In addition, we also saw improvement in our Adjusted EBITDA margins, which increased 189 basis points to a record 18.8% from 16.9% for the comparable prior year period. In addition, we also reported net income attributable to common stockholders of $4.5 million, up $0.2 million and adjusted net income attributable to common shareholders of $7.5 million, up $1.8 million or 31.6% for the comparable prior year period.

The business also continues to deliver strong cashflows generating $6.3 million in cash from operations from the three months ended June 30, 2019 and generating $39.8 million in cash from operations for the year ended June 30, 2019.

Having retired the $21.0 million preferred stock last December, we continue to pay down debt and as of the quarter ended June 30, 2019 we had approximately $13.8 million drawn on the Company’s $75.0 million credit facility and total net debt of approximately $31.2 million, less than one times our trailing twelve month adjusted EBITDA of $40.8 million.

Our now more than 10-year first market advantage in executing our multi-brand strategy in consolidating agent-based forwarding networks, ongoing investment in technology and low leverage on our balance sheet puts us in a unique position to support further consolidation in the marketplace. We are patiently persistent in the pursuit of this long-term vision which we believe, over time, will deliver meaningful value for shareholders, our operating partners and the end customers that we serve.”

Fourth Fiscal Quarter Ended June 30, 2019 – Financial Results

For the three months ended June 30, 2019, Radiant reported net income attributable to common stockholders of $4.5 million on $204.6 million of revenues, or $0.09 per basic and fully diluted share. For the three months ended June 30, 2018, Radiant reported net income attributable to common stockholders of $4.3 million on $233.8 million of revenues, or $0.09 per basic and fully diluted share.

For the three months ended June 30, 2019, Radiant reported adjusted net income attributable to common stockholders of $7.5 million, or $0.15 per basic and fully diluted share. For the three months ended June 30, 2018, Radiant reported adjusted net income attributable to common stockholders of $5.7  million, or $0.11 per basic and fully diluted share.

For the three months ended June 30, 2019, Radiant reported Adjusted EBITDA of $11.0 million, compared to $9.9 million for the comparable prior year period.

Year Ended June 30, 2019 – Financial Results

For the twelve months ended June 30, 2019, Radiant reporting net income attributable to common stockholders of $13.7 million (including a charge of $1.7 million related to the redemption of the Company’s preferred stock) on $890.5 million of revenues, or $0.28 per basic and $0.27 per fully diluted share. For the twelve months ended June 30, 2018, Radiant reported net income attributable to common stockholders of $8.1 million on $842.4 million of revenues, or $0.17 per basic and $0.16 per fully diluted share.

For the twelve months ended June 30, 2019, Radiant reported adjusted net income attributable to common stockholders of $26.6 million, or $0.54 per basic and $0.52 per fully diluted share. For the twelve months ended June 30, 2018, Radiant reported adjusted net income attributable to common stockholders of $14.8 million or $0.30 per basic and $0.29 per fully diluted share. 

For the twelve months ended June 30, 2019, Radiant reported Adjusted EBITDA of $40.8 million, compared to $29.2 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Thursday, September 12, 2019 at 4:30 PM Eastern to discuss the contents of this release. The conference call is open to all interested parties, including individual investors and press. Bohn Crain, Founder and CEO will host the call.

Conference Call Details

DATE/TIME:  

Thursday, September 12, 2019 at 4:30 PM Eastern

DIAL-IN        

US (844) 602-0380; Intl. (862) 298-0970

REPLAY      

September 13, 2019 at 9:30 AM Eastern to September 26, 2019 at 4:30 PM Eastern, US (877)
481-4010; Intl. (919) 882-2331 (Replay ID number: 53596)

Webcast Details

This call is also being webcast and may be accessed via Radiant’s web site at www.radiantdelivers.com or at https://www.investornetwork.com/event/presentation/53596.

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party logistics and multimodal transportation services company delivering advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management’s expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to: trends in the domestic and global economy; our ability to attract new and retain existing agency relationships; acquisitions and integration of acquired entities; availability of capital to support our acquisition strategy; our ability to maintain and improve back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations; the ability of the Wheels operation to maintain and grow its revenues and operating margins in a manner consistent with recent operating results and trends; our ability to maintain positive relationships with our third-party transportation providers, suppliers and customers; outcomes of legal proceedings; competition; management of growth; potential fluctuations in operating results; and government regulation. More information about factors that potentially could affect our financial results is included Radiant Logistics, Inc.’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

 

RADIANT LOGISTICS, INC.

Condensed Consolidated Balance Sheets

 (In thousands, except share and per share data)

June 30,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

5,420

$

6,992

Accounts receivable, net of allowance of $1,887 and $1,703, respectively

93,123

137,578

Contract assets

17,777

Income tax receivable

506

2,105

Prepaid expenses and other current assets

8,066

6,599

Total current assets

124,892

153,274

Technology and equipment, net

20,127

18,566

Goodwill

65,389

65,389

Intangible assets, net

55,742

65,264

Deposits and other assets

1,560

2,945

Total other long-term assets

122,691

133,598

Total assets

$

267,710

$

305,438

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

74,097

$

90,153

Operating partner commissions payable

12,891

14,322

Accrued expenses

6,224

5,404

Current portion of notes payable

4,088

3,726

Current portion of contingent consideration

375

960

Current portion of transition and lease termination liability

215

1,385

Other current liabilities

532

295

Total current liabilities

98,422

116,245

Notes payable, net of current portion

32,500

43,197

Contingent consideration, net of current portion

1,615

Transition and lease termination liability, net of current portion

47

Deferred rent liability

862

1,020

Deferred income taxes

7,838

8,665

Other long-term liabilities

761

1,082

Total long-term liabilities

42,008

55,579

Total liabilities

140,430

171,824

Stockholders’ equity:

Preferred stock, $0.001 par value, 5,000,000 shares authorized; nil and 839,200 shares issued 
     and outstanding, respectively

1

Common stock, $0.001 par value, 100,000,000 shares authorized; 49,678,262 and 49,511,907
     
shares issued, and 49,586,464 and 49,420,109 shares outstanding, respectively

31

31

Additional paid-in capital

100,186

117,968

Treasury stock, at cost, 91,798 shares

(253)

(253)

Retained earnings

26,883

15,539

Accumulated other comprehensive income

187

186

Total Radiant Logistics, Inc. stockholders’ equity

127,034

133,472

Non-controlling interest

246

142

Total equity

127,280

133,614

Total liabilities and equity

$

267,710

$

305,438

 

 

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Comprehensive Income

 (In thousands, except share and per share data)

Three Months Ended June 30,

Year Ended June 30,

2019

2018

2019

2018

Revenues

$

204,648

$

233,805

$

890,517

$

842,417

Operating expenses:

Cost of transportation and other services

146,123

175,223

660,416

642,272

Operating partner commissions

26,245

27,430

102,553

88,844

Personnel costs

15,119

14,993

60,375

58,566

Selling, general and administrative expenses

7,005

6,914

28,463

26,165

Depreciation and amortization

3,914

3,606

15,209

14,389

Transition and lease termination costs

69

(11)

176

Change in fair value of contingent consideration

(25)

(1,101)

(1,207)

(1,176)

Total operating expenses

198,381

227,134

865,798

829,236

Income from operations

6,267

6,671

24,719

13,181

Other income (expense):

Interest income

13

8

50

34

Interest expense

(678)

(772)

(3,023)

(3,109)

Foreign currency transaction gains (losses)

(9)

125

160

(8)

Other

17

80

274

408

Total other expense

(657)

(559)

(2,539)

(2,675)

Income before income taxes

5,610

6,112

22,180

10,506

Income tax expense

(1,007)

(1,164)

(4,800)

(73)

Net income

4,603

4,948

17,380

10,433

Less: net income attributable to non-controlling interest

(142)

(107)

(1,034)

(245)

Net income attributable to Radiant Logistics, Inc.

4,461

4,841

16,346

10,188

Less: preferred stock dividends

(511)

(956)

(2,046)

Less: issuance costs for preferred stock redemption

(1,659)

Net income attributable to common stockholders

$

4,461

$

4,330

$

13,731

$

8,142

Other comprehensive income:

Foreign currency translation gain

(214)

270

1

121

Comprehensive income

$

4,389

$

5,218

$

17,381

$

10,554

Income per share attributable to common stockholders:

Basic

$

0.09

$

0.09

$

0.28

$

0.17

Diluted

$

0.09

$

0.09

$

0.27

$

0.16

Weighted average common shares outstanding:

Basic

49,572,399

49,368,292

49,497,007

49,239,870

Diluted

51,391,691

50,557,716

51,082,652

50,634,671

 

Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Income Attributable to Common Stockholders
to Adjusted Net Income, EBITDA and Adjusted EBITDA
(unaudited)

As used in this report, Net Revenues, Adjusted Net Income, EBITDA, and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles (“GAAP”). Adjusted Net Income, EBITDA, and Adjusted EBITDA are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant’s business. For Adjusted Net Income, management uses a 24.5% tax rate for the three and year ended June 30, 2019 and a 31% tax rate for the three and year ended June 30, 2018 to calculate the provision for income taxes before preferred dividend requirement to normalize Radiant’s tax rate to that of its competitors and to compare Radiant’s reporting periods with different effective tax rates. In addition, in arriving at Adjusted Net Income, the Company adjusts for certain non-cash charges and significant items that are not part of regular operating activities. These adjustments include depreciation and amortization, income taxes, change in contingent consideration, amortization of loan fees, write-off of loan fees, impairment of acquired intangible assets, acquisition related costs, transition costs, lease termination costs, litigation costs and non-recurring costs.

We commonly refer to the term “net revenues” when commenting about our Company and the results of operations. Net revenues are a Non-GAAP measure calculated as revenues less directly related operations and expenses attributed to the Company’s services. We believe net revenues are a better measurement than are total revenues when analyzing and discussing the effectiveness of our business and is used as a portion of a key metric the Company uses to discuss its progress.

EBITDA is a non-GAAP measure of income and does not include the effects of preferred stock dividends, redemption of preferred stock, interest and taxes, and excludes the “non-cash” effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to technology and equipment, and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, transition and lease termination costs, foreign currency transaction gains and losses, extraordinary items, share-based compensation expense, litigation expenses unrelated to our core operations, MM&D start-up costs and other non-cash charges. While management considers EBITDA, and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our consolidated financial statements.

We believe that these non-GAAP financial measures, as presented, represent a useful method of assessing the performance of our operating activities, as they reflect our earnings trends without the impact of certain non-cash charges and other non-recurring charges. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations to allow a comparison to other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. However, these non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. Net Revenues, Adjusted Net Income, EBITDA, and Adjusted EBITDA should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Radiant’s operating performance or liquidity.

 

 (In thousands)

Three Months Ended June 30,

Year Ended June 30,

Net Revenues (Non-GAAP measure)

2019

2018

2019

2018

Total revenues

$

204,648

$

233,805

$

890,517

$

842,417

Cost of transportation and other services

146,123

175,223

660,416

642,272

Net revenues

$

58,525

$

58,582

$

230,101

$

200,145

Net revenues margin

28.6

%

25.1

%

25.8

%

23.8

%

 

 (In thousands)

Three Months Ended June 30,

Year Ended June 30,

Reconciliation of GAAP net income to adjusted EBITDA

2019

2018

2019

2018

GAAP net income attributable to common stockholders

$

4,461

$

4,330

$

13,731

$

8,142

Preferred stock dividends

511

956

2,046

Issuance costs for preferred stock redemption

1,659

GAAP net income attributable to Radiant Logistics, Inc.

4,461

4,841

16,346

10,188

Income tax expense

1,007

1,164

4,800

73

Depreciation and amortization

3,914

3,606

15,209

14,389

Net interest expense

665

764

2,973

3,075

EBITDA

10,047

10,375

39,328

27,725

Share-based compensation

408

398

1,612

1,514

Change in fair value of contingent consideration

(25)

(1,101)

(1,207)

(1,176)

Acquisition related costs

223

86

316

239

Litigation costs

221

214

754

346

Non-recurring costs

128

128

Transition and lease termination costs

69

(11)

176

MM&D start-up costs

410

Foreign currency transaction loss (gain)

9

(125)

(160)

8

Adjusted EBITDA

$

11,011

$

9,916

$

40,760

$

29,242

Adjusted EBITDA as a % of Net Revenues

18.8

%

16.9

%

17.7

%

14.6

%

 

 

 (In thousands, except share and per share data)

Three Months Ended June 30,

Year Ended June 30,

Reconciliation of GAAP net income to adjusted net income:

2019

2018

2019

2018

GAAP net income attributable to common stockholders

$

4,461

$

4,330

$

13,731

$

8,142

Adjustments to net income:

Income tax expense

1,007

1,164

4,800

73

Depreciation and amortization

3,914

3,606

15,209

14,389

Change in fair value of contingent consideration

(25)

(1,101)

(1,207)

(1,176)

Transition and lease termination costs

69

(11)

176

Acquisition related costs

223

86

316

239

Litigation costs

221

214

754

346

Non-recurring costs

128

128

Amortization of debt issuance costs

55

59

226

243

Issuance costs for preferred stock redemption

1,659

Adjusted net income attributable to common stockholders

    before income taxes

9,984

8,427

35,605

22,432

Provision for income taxes at 24.5% and 31.0% before preferred

    dividend requirement, respectively

(2,446)

(2,771)

(8,957)

(7,588)

Adjusted net income attributable to common stockholders

$

7,538

$

5,656

$

26,648

$

14,844

Adjusted net income per common share:

Basic

$

0.15

$

0.11

$

0.54

$

0.30

Diluted

$

0.15

$

0.11

$

0.52

$

0.29

Weighted average common shares outstanding:

Basic

49,572,399

49,368,292

49,497,007

49,239,870

Diluted

51,391,691

50,557,716

51,082,652

50,634,671

 

 

 

 

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SOURCE Radiant Logistics, Inc.

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