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Radiant Logistics Announces Results For The Third Fiscal Quarter Ended March 31, 2021

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Reports record results for the March quarter across several key financial metrics;

Diversity of service offerings and low debt levels position the Company for continued success in scaling its non-asset based business model

BELLEVUE, Wash., May 10, 2021 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and nine months ended March 31, 2021.

Financial Highlights – Three Months Ended March 31, 2021

  • Revenues increased to a record $236.5 million for the third fiscal quarter ended March 31, 2021, up $59.3 million or 33.5%, compared to revenues of $177.2 million for the comparable prior year period.

  • Net revenues, a non-GAAP financial measure, increased to a record $56.8 million for the third fiscal quarter ended March 31, 2021, up $9.0 million or 18.8%, compared to net revenues of $47.8 million for the comparable prior year period.

  • Net income increased to a record $5.0 million, or $0.10 per basic and fully diluted share, up $4.9 million compared to net income of $0.1 million, or $0.00 per basic and fully diluted share for the comparable prior year period.

  • Adjusted net income, a non-GAAP financial measure, increased to a record $9.1 million, or $0.18 per basic and fully diluted share for the third fiscal quarter ended March 31, 2021, up $5.1 million or 127.5%, compared to adjusted net income of $4.0 million, or $0.08 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 $12.9 million for the third fiscal quarter ended March 31, 2021, up $6.8 million or 111.5%, compared to adjusted EBITDA of $6.1 million for the comparable prior year period.

  • Adjusted EBITDA Margin, a non-GAAP financial measure, increased to a record 22.7%, up 1,000 basis points, compared to 12.7% for the comparable prior year period.

CEO Bohn Crain comments on results

"We are very pleased to report another quarter of solid financial results including new records for the March quarter across a number of our key financial metrics," said Bohn Crain, Founder and CEO of Radiant Logistics. "We posted record revenues of $236.5 million, up $59.3 million or 33.5%; record net revenues of $56.8 million, up $9.0 million or 18.8%, record net income of $5.0 million, up $4.9 million; record adjusted net income of $9.1 million, up $5.1 million or 127.5%, and record adjusted EBITDA of $12.9 million, up $6.8 million or 111.5%. In addition, we also saw improvement in our adjusted EBITDA margins, which increased to a record 22.7% for the March quarter, up from 12.7% for the comparable prior year period. These results reflect the benefit of our scalable non-asset based business model, diversity of our service offerings, and our ability to quickly respond to changing market dynamics. In addition, we have been able to deliver these record results while maintaining very low leverage on our balance sheet."

Mr. Crain continued, "We are encouraged by our continued strong financial performance with trailing twelve month adjusted EBITDA through March 31, 2021 of $47.8 million. At the same time, we also believe that our current share price does not accurately reflect Radiant's intrinsic value or long-term growth prospects, particularly given our unlevered balance sheet, and therefore represents an excellent investment opportunity for both the Company and our shareholders. With the diversity of our customers, the strength of our balance sheet, the scalability of our technology, the commitment of our employees, and the eventual recovery of the business sectors that have been most adversely affected by COVID-19, we remain optimistic about the trajectory of the economy and the opportunities that it will present for Radiant. In the months ahead, we will continue to closely monitor how we and the economy are progressing and look forward to re-engaging in acquisition opportunities and/or our stock buy-back activities as the opportunities present themselves."

Third Fiscal Quarter Ended March 31, 2021 – Financial Results

For the three months ended March 31, 2021, Radiant reported net income of $5.0 million on $236.5 million of revenues, or $0.10 per basic and fully diluted share. For the three months ended March 31, 2020, Radiant reported net income of $0.1 million on $177.2 million of revenues, or $0.00 per basic and fully diluted share.

For the three months ended March 31, 2021, Radiant reported adjusted net income of $9.1 million, or $0.18 per basic and fully diluted share. For the three months ended March 31, 2020, Radiant reported adjusted net income of $4.0 million, or $0.08 per basic and fully diluted share.

For the three months ended March 31, 2021, Radiant reported Adjusted EBITDA of $12.9 million, compared to $6.1 million for the comparable prior year period.

Nine Months Ended March 31, 2021 – Financial Results

For the nine months ended March 31, 2021, Radiant reported net income of $11.9 million on $631.2 million of revenues, or $0.24 per basic and $0.23 per fully diluted share. For the nine months ended March 31, 2020, Radiant reported net income of $5.9 million on $579.7 million of revenues, or $0.12 per basic and $0.11 per fully diluted share.

For the nine months ended March 31, 2021, Radiant reported adjusted net income of $24.3 million, or $0.49 per basic and $0.48 per fully diluted share. For the nine months ended March 31, 2020, Radiant reported adjusted net income of $16.7 million or $0.34 per basic and $0.33 per fully diluted share.

For the nine months ended March 31, 2021, Radiant reported Adjusted EBITDA of $34.6 million, compared to $25.1 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Monday, May 10, 2021 at 4:30 PM Eastern to discuss the contents of this release. The conference call is open to all interested parties, including individual investors and press. Bohn Crain, Founder and CEO will host the call.

Conference Call Details

DATE/TIME:

Monday, May 10, 2021 at 4:30 PM Eastern

DIAL-IN

US (888) 506-0062; Intl. (973) 528-0011

REPLAY

May 11, 2021 at 9:30 AM Eastern to May 24, 2021 at 4:30 PM Eastern, US (877) 481-4010;

Intl. (919) 882-2331 (Replay ID number: 41149)

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/2191/41149.

About Radiant Logistics (NYSE American: RLGT)

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

This announcement contains "forward-looking statements" within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as "anticipate," "believe," "estimates," "expect," "future," "intend," "may," "plan," "see," "seek," "strategy," or "will" or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management's beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this announcement. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain of our larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; the impact of COVID-19 on our operations and financial results; and such other factors that may be identified from time to time in our Securities and Exchange Commission ("SEC") filings and other public announcements, including those set forth under the caption "Risk Factors" in our Form 10-K for the year ended June 30, 2020. In addition, the global economic climate and additional or unforeseen effects from the COVID-19 pandemic amplify many of these risks. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

RADIANT LOGISTICS, INC.

Condensed Consolidated Balance Sheets

(Unaudited)




March 31,



June 30,


(In thousands, except share and per share data)


2021



2020




(unaudited)





ASSETS







Current assets:







Cash and cash equivalents


$

4,215



$

34,841


Accounts receivable, net of allowance of $1,561 and $1,990, respectively



110,991




71,838


Contract assets



26,038




16,312


Income tax receivable






780


Prepaid expenses and other current assets



19,720




16,817


Total current assets



160,964




140,588









Property, technology, and equipment, net



21,918




18,712









Goodwill



72,298




72,199


Intangible assets, net



43,742




51,192


Operating lease right-of-use assets



25,722




12,580


Deposits and other assets



3,710




4,769


Total other long-term assets



145,472




140,740


Total assets


$

328,354



$

300,040









LIABILITIES AND EQUITY







Current liabilities:







Accounts payable


$

84,597



$

65,003


Operating partner commissions payable



12,294




9,131


Accrued expenses



7,705




6,538


Income tax payable



357





Current portion of notes payable



4,316




3,800


Current portion of operating lease liability



6,429




6,121


Current portion of finance lease liability



739




688


Current portion of contingent consideration



2,319




2,127


Other current liabilities



424




308


Total current liabilities



119,180




93,716









Notes payable, net of current portion



24,766




48,091


Operating lease liability, net of current portion



20,080




7,192


Finance lease liability, net of current portion



1,988




2,476


Contingent consideration, net of current portion



4,944




2,813


Deferred income taxes



6,312




7,484


Other long-term liabilities



61




93


Total long-term liabilities



58,151




68,149


Total liabilities



177,331




161,865









Stockholders' equity:







Common stock, $0.001 par value, 100,000,000 shares authorized; 50,751,454 and 50,188,486
shares issued, and 50,118,607 and 49,555,639 shares outstanding, respectively



32




32


Additional paid-in capital



103,671




102,214


Treasury stock, at cost, 632,847 shares



(2,749)




(2,749)


Retained earnings



49,308




37,424


Accumulated other comprehensive income



618




445


Total Radiant Logistics, Inc. stockholders' equity



150,880




137,366


Non-controlling interest



143




809


Total equity



151,023




138,175


Total liabilities and equity


$

328,354



$

300,040


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)

2021



2020



2021



2020


Revenues

$

236,532



$

177,221



$

631,214



$

579,691














Operating expenses:












Cost of transportation and other services


179,732




129,440




473,148




420,419


Operating partner commissions


23,761




20,352




66,386




69,899


Personnel costs


14,229




14,412




40,741




44,487


Selling, general and administrative expenses


6,688




8,027




17,910




22,370


Depreciation and amortization


4,174




4,282




12,418




12,413


Transition, lease termination, and other costs











328


Change in fair value of contingent consideration


2,500




3




4,350




52


Total operating expenses


231,084




176,516




614,953




569,968














Income from operations


5,448




705




16,261




9,723














Other income (expense):












Interest income


3




17




14




50


Interest expense


(611)




(752)




(1,919)




(2,070)


Foreign currency transaction gain (loss)


14




169




(158)




120


Change in fair value of interest rate swap contracts


(512)







(642)





Gain on forgiveness of debt


1,414







1,414





Other


281




89




663




164


Total other income (expense)


589




(477)




(628)




(1,736)














Income before income taxes


6,037




228




15,633




7,987














Income tax expense


(976)




(102)




(3,455)




(1,850)














Net income


5,061




126




12,178




6,137


Less: net income attributable to non-controlling interest


(77)




(73)




(294)




(262)














Net income attributable to Radiant Logistics, Inc.

$

4,984



$

53



$

11,884



$

5,875














Other comprehensive income:












Foreign currency translation gain


567




711




173




677


Comprehensive income

$

5,628



$

837



$

12,351



$

6,814














Income per share:












Basic

$

0.10



$



$

0.24



$

0.12


Diluted

$

0.10



$



$

0.23



$

0.11














Weighted average common shares outstanding:












Basic


50,034,950




49,577,370




49,807,932




49,667,243


Diluted


51,359,441




50,974,994




51,131,806




51,266,348


Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Income
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
(unaudited)

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 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, 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, 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,


Net Revenues (Non-GAAP measure)

2021



2020



2021



2020


Total revenues

$

236,532



$

177,221



$

631,214



$

579,691


Cost of transportation and other services


179,732




129,440




473,148




420,419














Net revenues

$

56,800



$

47,781



$

158,066



$

159,272


Net margin


24.0

%



27.0

%



25.0

%



27.5

%

(In thousands)

Three Months Ended March 31,



Nine Months Ended March 31,


Reconciliation of GAAP net income to adjusted EBITDA

2021



2020



2021



2020


Net income attributable to Radiant Logistics, Inc.

$

4,984



$

53



$

11,884



$

5,875


Income tax expense


976




102




3,455




1,850


Depreciation and amortization


4,174




4,282




12,418




12,413


Net interest expense


608




735




1,905




2,020














EBITDA


10,742




5,172




29,662




22,158














Share-based compensation


303




409




774




1,306


Change in fair value of contingent consideration


2,500




3




4,350




52


Acquisition related costs





183




35




495


Litigation costs


256




400




433




832


Transition, lease termination, and other costs





59







387


Change in fair value of interest rate swap contracts


512







642





Gain on forgiveness of debt


(1,414)







(1,414)





Foreign currency transaction loss (gain)


(14)




(169)




158




(120)














Adjusted EBITDA

$

12,885



$

6,057



$

34,640



$

25,110


Adjusted EBITDA margin (Adjusted EBITDA as a % of Net Revenues)


22.7

%



12.7

%



21.9

%



15.8

%

(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

2021



2020



2021



2020


GAAP net income attributable to Radiant Logistics, Inc.

$

4,984



$

53



$

11,884



$

5,875


Adjustments to net income:












Income tax expense


976




102




3,455




1,850


Depreciation and amortization


4,174




4,282




12,418




12,413


Change in fair value of contingent consideration


2,500




3




4,350




52


Acquisition related costs





183




35




495


Litigation costs


256




400




433




832


Transition, lease termination, and other costs





59







387


Change in fair value of interest rate swap contracts


512







642





Gain on forgiveness of debt


(1,414)







(1,414)





Amortization of debt issuance costs


129




170




393




278














Adjusted net income before income taxes


12,117




5,252




32,196




22,182














Provision for income taxes at 24.5%


(2,969)




(1,287)




(7,888)




(5,435)














Adjusted net income

$

9,148



$

3,965



$

24,308



$

16,747














Adjusted net income per common share:












Basic

$

0.18



$

0.08



$

0.49



$

0.34


Diluted

$

0.18



$

0.08



$

0.48



$

0.33














Weighted average common shares outstanding:












Basic


50,034,950




49,577,370




49,807,932




49,667,243


Diluted


51,359,441




50,974,994




51,131,806




51,266,348


(In thousands)
Trailing twelve months adjusted EBITDA:

Three months
ended
March 31,
2021



Three months
ended
December 31,
2020



Three months
ended
September 30,
2020



Three months
ended
June 30,
2020



Twelve months
ended
March 31,
2021


Net income attributable to Radiant Logistics, Inc.

$

4,984



$

3,812



$

3,088



$

4,665



$

16,549


Income tax expense


976




1,402




1,078




1,307




4,763


Depreciation and amortization


4,174




4,085




4,159




4,157




16,575


Net interest expense


608




725




571




806




2,710

















EBITDA


10,742




10,024




8,896




10,935




40,597

















Share-based compensation


303




327




144




358




1,132


Change in fair value of contingent consideration


2,500




1,850







1,700




6,050


Acquisition related costs





1




34




82




117


Litigation costs


256




26




151




229




662


Transition, lease termination, and other costs











199




199


Change in fair value of interest rate swap contracts


512




109




21




(600)




42


Gain on forgiveness of debt


(1,414)













(1,414)


Foreign exchange loss (gain)


(14)




193




(21)




245




403

















Adjusted EBITDA

$

12,885



$

12,530



$

9,225



$

13,148



$

47,788


Radiant Logistics, Inc. logo. (PRNewsFoto/Radiant Logistics, Inc.)
Radiant Logistics, Inc. logo. (PRNewsFoto/Radiant Logistics, Inc.)
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SOURCE Radiant Logistics, Inc.