RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE FIRST FISCAL QUARTER ENDED SEPTEMBER 30, 2022, AND SECOND FISCAL QUARTER ENDED DECEMBER 31, 2022

Rhea-AI Summary

Radiant Logistics (RLGT) has filed its quarterly reports with the SEC, bringing its filings current. For the six months ending December 31, 2022, revenues totaled $609.1 million, down 4.1%, while gross profit rose 12.1% to $145.2 million. Despite a decline in Q2 revenues to $278.1 million, gross profits increased 3.8% to $70.4 million. Net income decreased to $4.8 million in Q2, reflecting challenges in the market. The company continued capital allocation initiatives, including a $5 million stock buy-back program and the acquisition of Cascade Enterprises. As of March 20, 2023, RLGT had no net debt and $62 million in cash.

Positive

• Record gross profit of $74.7 million for Q1 2022, up 21.1% year-over-year.
• Adjusted EBITDA for six months at $33.9 million, up 5.9%.
• Successful acquisition of Cascade Enterprises, enhancing strategic growth.
• Stock buy-backs totaling $5 million at favorable pricing.
• No net debt as of March 20, 2023, with $62 million in cash.

Negative

• Q2 revenues decreased by 17.2% to $278.1 million.
• Net income down 26.2% in Q2 compared to prior year.
• Adjusted net income for Q2 declined by 11.8%.

Brings Its Filings Current with the SEC;  
Continues Trend with Strong Results through the Six Months Ended December 31, 2022

RENTON, Wash., March 27, 2023 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a technology-enabled global transportation and value-added logistics services company, announced today the filing of its quarterly reports on Form 10-Q for the quarters ended September 30, 2022 and December 31, 2022. With the filing of these two quarterly reports the Company is now current in its filings with the Securities and Exchange Commission ("SEC").

Financial Highlights – Three Months Ended September 30, 2022

• Revenues increased to a record $331.0 million for the first fiscal quarter ended September 30, 2022, up $31.6 million or 10.6%, compared to revenues of $299.4 million for the comparable prior year period.
• Gross profit increased to a record $74.7 million for the first fiscal quarter ended September 30, 2022, up $13.0 million or 21.1%, compared to gross profit of $61.7 million for the comparable prior year period.
• Adjusted gross profit, a non-GAAP financial measure, increased to a record $76.5 million for the first fiscal quarter ended September 30, 2022, up $11.8 million or 18.2%, compared to adjusted gross profit of $64.7 million for the comparable prior year period.
• Net income attributable to Radiant Logistics, Inc. increased to a record $8.4 million, or $0.17 per basic and fully diluted share up $0.8 million or 10.5% compared to $7.6 million, or $0.15 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 ended September 30, 2022, up $2.3 million or 20.7%, compared to adjusted net income of $11.1 million, or $0.22 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 ended September 30, 2022, up $3.3 million or 21.7%, compared to adjusted EBITDA of $15.2 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, increased to a record 24.2% for the first fiscal quarter ended September 30, 2022, up 60 basis points, compared to adjusted EBITDA margin of 23.6% for the comparable prior year period.

Financial Highlights – Three Months Ended December 31, 2022

• Revenues decreased to $278.1 million for the second fiscal quarter ended December 31, 2022, down $57.7 million or 17.2%, compared to revenues of $335.8 million for the comparable prior year period.
• Gross profit increased to $70.4 million for the second fiscal quarter ended December 31, 2022, up $2.6 million or 3.8%, compared to gross profit of $67.8 million for the comparable prior year period.
• Adjusted gross profit, a non-GAAP financial measure, increased to $74.0 million for the second fiscal quarter ended December 31, 2022, up $2.9 million or 4.1%, compared to adjusted gross profit of $71.1 million for the comparable prior year period.
• Net income attributable to Radiant Logistics, Inc. decreased to $4.8 million, or $0.10 per basic and fully diluted share, $1.7 million compared to $6.5 million, or $0.13 per basic and fully diluted share for the comparable prior year period.
• Adjusted net income, a non-GAAP financial measure, decreased to $10.5 million, or $0.22 per basic and $0.21 per fully diluted share for the second fiscal quarter ended December 31, 2022, down $1.4 million or 11.8%, compared to adjusted net income of $11.9 million, or $0.24 per basic and $0.23 per 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 $15.3 million for the second fiscal quarter ended December 31, 2022, down $1.4 million or 8.4%, compared to adjusted EBITDA of $16.7 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 20.7% for the second fiscal quarter ended December 31, 2022, down 280 basis points, compared to adjusted EBITDA margin of 23.5% for the comparable prior year period.

Acquisition Update

On October 1, 2022, the Company announced that it acquired Cascade Enterprises of Minnesota, Inc. ("Cascade"), a Minnesota based, privately–held company that has operated as a strategic operating partner under the Company's Airgroup brand since 2007. The Company structured the transaction similar to its previous transactions, with a portion of the expected purchase price payable in subsequent periods based on the future performance of the acquired operations. Cascade continued to operate under the Airgroup brand through the calendar year 2022 and is expected to transition to the Radiant brand over the course of 2023 as it is combined with existing Company owned operations in the Minneapolis area.

Stock Buy-back

Under the terms of our outstanding Rule 10b5-1 Repurchase Plan, the Company 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 six months ended December 31, 2022. As of March 20, 2023, the Company had 48,181,256 shares outstanding.

CEO Bohn Crain Comments on Results and the Company Coming Current in Its Filings with the SEC

"We are very pleased to continue our trend of solid financial results for each of the first two quarters of fiscal year 2023," said Bohn Crain, Founder and CEO of Radiant Logistics. "For the six months ended December 31, 2022, we posted revenues of $609.1 million, down $26.1 million or 4.1%; gross profit of $145.2 million, up $15.7 million or 12.1%; adjusted gross profit of $150.5 million, up $14.6 million or 10.7%; net income attributable to Radiant Logistics, Inc. of $13.3 million, down $0.8 million or 5.7%; adjusted net income of $23.9 million, up $0.9 million or 3.9%, and record adjusted EBITDA of $33.9 million, up $1.9 million or 5.9%. These results reflect the benefit of our scalable non–asset–based business model, our diversity of service offerings, and our ability to quickly respond to changing market dynamics and support our customers in this capacity constrained market.

During the six months ended December 31, 2022, we also continued to make good progress in our balanced approach to capital allocation through a combination of our strategic acquisition and stock buy-back initiatives. As previously reported, we completed the acquisition of our long-time strategic operating partner, Cascade Enterprises in Minnesota, effective as of October 1, 2022. In addition, we also acquired $5.0 million of our common stock during the quarter at what we believe was very attractive pricing. During the six-month period we also generated $65.5 million in cash from operations. As of December 31, 2022, we have for the first time in the Company's history, no net debt, with cash on hand of $62.0 million and total debt of only $53.7 million. Our adjusted EBITDA for the trailing twelve months ended December 31, 2022 was $82.8 million."

Mr. Crain continued: "With the filing of these two Form 10-Qs we have now completed the process of bringing our filings current with the SEC and we are excited to be able to get back to business—leveraging our best–in–class technology, robust North American footprint and extensive global network of service partners to continue to build on the great platform we have built here at Radiant. As we have previously discussed, while we remain very optimistic about our prospects for fiscal year 2023 and beyond, we are definitely seeing 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 upon our broader strategic initiatives."

First Fiscal Quarter Ended September 30, 2022 – Financial Results

For the three months ended September 30, 2022, Radiant reported net income attributable to Radiant Logistics, Inc. of $8.4 million on $331.0 million of revenues, or $0.17 per basic and fully diluted share. For the three months ended September 30, 2021, Radiant reported net income attributable to Radiant Logistics, Inc. of $7.6 million on $299.4 million of revenues, or $0.15 per basic and fully diluted share.

For the three months ended September 30, 2022, Radiant reported adjusted net income, a non-GAAP financial measure, of $13.4 million, or $0.27 per basic and fully diluted share. For the three months ended September 30, 2021, Radiant reported adjusted net income of $11.1 million, or $0.22 per basic and fully diluted share.

For the three months ended September 30, 2022, Radiant reported adjusted EBITDA, a non-GAAP financial measure, of $18.5 million, compared to $15.2 million for the comparable prior year period.

Second Fiscal Quarter Ended December 31, 2022 – Financial Results 

For the three months ended December 31, 2022, Radiant reported net income attributable to Radiant Logistics, Inc. of $4.8 million on $278.1 million of revenues, or $0.10 per basic and fully diluted share. For the three months ended December 31, 2021, Radiant reported net income attributable to Radiant Logistics, Inc. of $6.5 million on $335.8 million of revenues, or $0.13 per basic and fully diluted share.

For the three months ended December 31, 2022, Radiant reported adjusted net income, a non-GAAP financial measure, of $10.5 million, or $0.22 per basic and $0.21 per fully diluted share. For the three months ended December 31, 2021, Radiant reported adjusted net income of $11.9 million, or $0.24 per basic and $0.23 per fully diluted share.

For the three months ended December 31, 2022, Radiant reported adjusted EBITDA, a non-GAAP financial measure, of $15.3 million, compared to $16.7 million for the comparable prior year period.

Six Months Ended December 31, 2022 – Financial Results

For the six months ended December 31, 2022, Radiant reported net income attributable to Radiant Logistics, Inc. of $13.3 million on $609.1 million of revenues, or $0.27 per basic and fully diluted share. For the six months ended December 31, 2021, Radiant reported net income attributable to Radiant Logistics, Inc. of $14.1 million on $635.2 million of revenues, or $0.28 per basic and fully diluted share.

For the six months ended December 31, 2022, Radiant reported adjusted net income, a non-GAAP financial measure, of $23.9 million, or $0.50 per basic and $0.48 per fully diluted share. For the six months ended December 31, 2021, Radiant reported adjusted net income of $23.0 million, or $0.46 per basic and $0.45 per fully diluted share.

For the six months ended December 31, 2022, Radiant reported adjusted EBITDA, a non-GAAP financial measure, of $33.9 million, compared to $32.0 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Monday, March 27, 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:	Monday, March 27, 2023 at 4:30 PM Eastern
DIAL-IN	US (888) 506-0062; Intl. (973) 528-0011 (Participant Access Code: 913812)
REPLAY	March 28, 2023 at 9:30 AM Eastern to April 10, 2023 at 4:30 PM Eastern, US (877) 481-4010; Intl. (919) 882-2331 (Replay ID number: 47924)

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/2191/47924

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 officering, Radiant provides domestic and international freight forwarding along with truck and rail brokerage services to a diversified account base including manufactures, 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 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; 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 fiscal 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
		September 30,				June 30,
(In thousands, except share and per share data)		2022				2022
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	23,714			$	24,442
Accounts receivable, net of allowance of $2,842 and $2,983, respectively			164,438				186,492
Contract assets			49,967				61,154
Prepaid expenses and other current assets			15,327				17,256
Total current assets			253,446				289,344
Property, technology, and equipment, net			22,890				24,823
Goodwill			86,751				88,199
Intangible assets, net			43,000				48,545
Operating lease right-of-use assets			44,143				41,111
Deposits and other assets			5,703				4,704
Long-term restricted cash			581				625
Total other long-term assets			180,178				183,184
Total assets		$	456,514			$	497,351
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	122,243			$	137,853
Operating partner commissions payable			19,030				18,731
Accrued expenses			9,387				11,349
Income tax payable			547				4,035
Current portion of notes payable			4,331				4,575
Current portion of operating lease liability			10,027				7,641
Current portion of finance lease liability			538				577
Current portion of contingent consideration			2,600				2,600
Other current liabilities			297				303
Total current liabilities			169,000				187,664
Notes payable, net of current portion			40,300				66,719
Operating lease liability, net of current portion			38,712				37,776
Finance lease liability, net of current portion			1,084				1,223
Contingent consideration, net of current portion			3,090				2,930
Deferred income taxes			5,984				6,482
Total long-term liabilities			89,170				115,130
Total liabilities			258,170				302,794
Equity:
Common stock, $0.001 par value, 100,000,000 shares authorized; 51,418,835 and 51,265,543     shares issued, and 48,674,710 and 48,740,935 shares outstanding, respectively			33				33
Additional paid-in capital			106,314				106,146
Treasury stock, at cost, 2,744,125 and 2,524,608 shares, respectively			(17,344)				(16,004)
Retained earnings			113,431				104,998
Accumulated other comprehensive loss			(4,274)				(796)
Total Radiant Logistics, Inc. stockholders' equity			198,160				194,377
Non-controlling interest			184				180
Total equity			198,344				194,557
Total liabilities and equity		$	456,514			$	497,351

 

 

RADIANT LOGISTICS, INC.
Condensed Consolidated Balance Sheets
		December 31,				June 30,
(In thousands, except share and per share data)		2022				2022
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	62,020			$	24,442
Accounts receivable, net of allowance of $2,312 and $2,983, respectively			137,793				186,492
Contract assets			33,858				61,154
Prepaid expenses and other current assets			15,399				17,256
Total current assets			249,070				289,344
Property, technology, and equipment, net			23,663				24,823
Goodwill			88,924				88,199
Intangible assets, net			41,731				48,545
Operating lease right-of-use assets			59,569				41,111
Deposits and other assets			6,309				4,704
Long-term restricted cash			593				625
Total other long-term assets			197,126				183,184
Total assets		$	469,859			$	497,351
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	107,511			$	137,853
Operating partner commissions payable			20,298				18,731
Accrued expenses			9,053				11,349
Income tax payable			2,050				4,035
Current portion of notes payable			4,495				4,575
Current portion of operating lease liability			11,102				7,641
Current portion of finance lease liability			536				577
Current portion of contingent consideration			3,582				2,600
Other current liabilities			296				303
Total current liabilities			158,923				187,664
Notes payable, net of current portion			49,191				66,719
Operating lease liability, net of current portion			53,428				37,776
Finance lease liability, net of current portion			953				1,223
Contingent consideration, net of current portion			1,745				2,930
Deferred income taxes			4,328				6,482
Total long-term liabilities			109,645				115,130
Total liabilities			268,568				302,794
Commitments and contingencies (Note 15)
Equity:
Common stock, $0.001 par value, 100,000,000 shares authorized; 51,544,304 and 51,265,543     shares issued, and 48,179,832 and 48,740,935 shares outstanding, respectively			33				33
Additional paid-in capital			107,170				106,146
Treasury stock, at cost, 3,364,472 and 2,524,608 shares, respectively			(21,004)				(16,004)
Retained earnings			118,267				104,998
Accumulated other comprehensive loss			(3,373)				(796)
Total Radiant Logistics, Inc. stockholders' equity			201,093				194,377
Non-controlling interest			198				180
Total equity			201,291				194,557
Total liabilities and equity		$	469,859			$	497,351

 

RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
	Three Months Ended September 30,
(In thousands, except share and per share data)	2022				2021
					(as restated)
Revenues	$	330,971			$	299,398
Operating expenses:
Cost of transportation and other services		254,491				234,680
Operating partner commissions		30,106				27,561
Personnel costs		19,771				15,653
Selling, general and administrative expenses		8,770				6,790
Depreciation and amortization		6,778				4,252
Change in fair value of contingent consideration		160				—
Total operating expenses		320,076				288,936
Income from operations		10,895				10,462
Other income (expense):
Interest income		40				3
Interest expense		(821)				(609)
Foreign currency transaction gain		467				271
Change in fair value of interest rate swap contracts		690				(46)
Other		5				16
Total other income (expense)		381				(365)
Income before income taxes		11,276				10,097
Income tax expense		(2,764)				(2,402)
Net income		8,512				7,695
Less: net income attributable to non-controlling interest		(79)				(86)
Net income attributable to Radiant Logistics, Inc.	$	8,433			$	7,609
Other comprehensive loss:
Foreign currency translation loss		(3,478)				(1,039)
Comprehensive income	$	5,034			$	6,656
Income per share:
Basic and diluted	$	0.17			$	0.15
Weighted average common shares outstanding:
Basic		48,745,317				49,921,061
Diluted		50,303,012				51,116,478

 

RADIANT LOGISTICS, INC.
Condensed Consolidated Statements of Comprehensive Income
(unaudited)
	Three Months Ended December 31,								Six Months Ended December 31,
(In thousands, except share and per share data)	2022				2021				2022				2021
					(as restated)								(as restated)
Revenues	$	278,119			$	335,778			$	609,090			$	635,176
Operating expenses:
Cost of transportation and other services		204,091				264,640				458,582				499,320
Operating partner commissions		30,512				31,169				60,617				58,730
Personnel costs		20,641				16,659				40,412				32,312
Selling, general and administrative expenses		8,637				8,352				17,407				15,139
Depreciation and amortization		6,914				4,447				13,693				8,702
Transition, lease termination, and other costs		30				—				30				—
Change in fair value of contingent consideration		150				455				310				455
Total operating expenses		270,975				325,722				591,051				614,658
Income from operations		7,144				10,056				18,039				20,518
Other expense:
Interest income		59				4				98				6
Interest expense		(742)				(749)				(1,563)				(1,358)
Foreign currency transaction gain		4				104				471				375
Change in fair value of interest rate swap contracts		(104)				(378)				587				(424)
Other		24				91				29				108
Total other expense		(759)				(928)				(378)				(1,293)
Income before income taxes		6,385				9,128				17,661				19,225
Income tax expense		(1,460)				(2,513)				(4,224)				(4,915)
Net income		4,925				6,615				13,437				14,310
Less: net income attributable to non-controlling interest		(89)				(76)				(168)				(162)
Net income attributable to Radiant Logistics, Inc.	$	4,836			$	6,539			$	13,269			$	14,148
Other comprehensive income:
Foreign currency translation gain (loss)		901				117				(2,577)				(922)
Comprehensive income	$	5,826			$	6,732			$	10,860			$	13,388
Income per share:
Basic and diluted	$	0.10			$	0.13			$	0.27			$	0.28
Weighted average common shares outstanding:
Basic		48,243,204				49,657,547				48,494,260				49,789,304
Diluted		49,427,420				50,775,714				49,865,216				50,946,096

Reconciliation of Non-GAAP Measures  
RADIANT LOGISTICS, INC.

Reconciliation of Gross Profit to Adjusted Gross Profit, Net Income Attributable to  
Radiant Logistics, Inc.,
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, 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. 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 September 30,
Reconciliation of adjusted gross profit to GAAP gross profit	2022				2021
					(as restated)
Revenues	$	330,971			$	299,398
Cost of transportation and other services (exclusive of depreciation and     amortization, shown separately below)		(254,491)				(234,680)
Depreciation and amortization		(1,756)				(2,998)
GAAP gross profit	$	74,724			$	61,720
Depreciation and amortization		1,756				2,998
Adjusted gross profit	$	76,480			$	64,718
GAAP gross margin (GAAP gross profit as a percentage of revenues)		22.6	%			20.6	%
Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues)		23.1	%			21.6	%

 

(In thousands)	Three Months Ended December 31,								Six Months Ended December 31,
Reconciliation of adjusted gross profit to GAAP gross profit	2022				2021				2022				2021
					(as restated)								(as restated)
Revenues	$	278,119			$	335,778			$	609,090			$	635,176
Cost of transportation and other services (exclusive of depreciation and     amortization, shown separately below)		(204,091)				(264,640)				(458,582)				(499,320)
Depreciation and amortization		(3,585)				(3,332)				(5,341)				(6,331)
GAAP gross profit	$	70,443			$	67,806			$	145,167			$	129,525
Depreciation and amortization		3,585				3,332				5,341				6,331
Adjusted gross profit	$	74,028			$	71,138			$	150,508			$	135,856
GAAP gross margin (GAAP gross profit as a percentage of revenues)		25.3	%			20.2	%			23.8	%			20.4	%
Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues)		26.6	%			21.2	%			24.7	%			21.4	%

 

(In thousands)	Three Months Ended September 30,
Reconciliation of GAAP net income to adjusted EBITDA	2022				2021
					(as restated)
Net income attributable to Radiant Logistics, Inc.	$	8,433			$	7,609
Income tax expense		2,764				2,402
Depreciation and amortization		6,778				4,252
Net interest expense		781				606
EBITDA		18,756				14,869
Share-based compensation		609				350
Change in fair value of contingent consideration		160				—
Acquisition related costs		27				99
Litigation costs		120				154
Change in fair value of interest rate swap contracts		(690)				46
Foreign currency transaction gain		(467)				(271)
Adjusted EBITDA	$	18,515			$	15,247
Adjusted EBITDA margin (Adjusted EBITDA as a % of Adjusted Gross Profit)		24.2	%			23.6	%

 

(In thousands)	Three Months Ended December 31,								Six Months Ended December 31,
Reconciliation of GAAP net income to adjusted EBITDA	2022				2021				2022				2021
					(as restated)								(as restated)
Net income attributable to Radiant Logistics, Inc.	$	4,836			$	6,539			$	13,269			$	14,148
Income tax expense		1,460				2,513				4,224				4,915
Depreciation and amortization (1)		7,142				4,447				13,921				8,702
Net interest expense		683				745				1,465				1,352
EBITDA		14,121				14,244				32,879				29,117
Share-based compensation		679				422				1,288				772
Change in fair value of contingent consideration		150				455				310				455
Acquisition related costs		22				396				49				496
Ransomware incident related costs, net		—				751				—				751
Litigation costs		247				167				366				321
Transition, lease termination, and other costs		30				—				30				—
Change in fair value of interest rate swap contracts		104				378				(587)				424
Foreign currency transaction gain		(4)				(104)				(471)				(375)
Adjusted EBITDA	$	15,349			$	16,709			$	33,864			$	31,961
Adjusted EBITDA margin (Adjusted EBITDA as a % of Adjusted Gross Profit)		20.7	%			23.5	%			22.5	%			23.5	%

(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 September 30,
Reconciliation of GAAP net income to adjusted net income	2022				2021
					(as restated)
GAAP net income attributable to Radiant Logistics, Inc.	$	8,433			$	7,609
Adjustments to net income:
Income tax expense		2,764				2,402
Depreciation and amortization		6,778				4,252
Change in fair value of contingent consideration		160				—
Acquisition related costs		27				99
Litigation costs		120				154
Change in fair value of interest rate swap contracts		(690)				46
Amortization of debt issuance costs		110				127
Adjusted net income before income taxes		17,702				14,689
Provision for income taxes at 24.5%		(4,337)				(3,599)
Adjusted net income	$	13,365			$	11,090
Adjusted net income per common share:
Basic and diluted	$	0.27			$	0.22
Weighted average common shares outstanding:
Basic		48,745,317				49,921,061
Diluted		50,303,012				51,116,478

 

(In thousands, except share and per share data)	Three Months Ended December 31,								Six Months Ended December 31,
Reconciliation of GAAP net income to adjusted net income	2022				2021				2022				2021
					(as restated)								(as restated)
GAAP net income attributable to Radiant Logistics, Inc.	$	4,836			$	6,539			$	13,269			$	14,148
Adjustments to net income:
Income tax expense		1,460				2,513				4,224				4,915
Depreciation and amortization		6,914				4,447				13,693				8,702
Change in fair value of contingent consideration		150				455				310				455
Acquisition related costs		22				396				49				496
Ransomware incident related costs, net		—				751				—				751
Litigation costs		247				167				366				321
Transition, lease termination, and other costs		30				—				30				—
Change in fair value of interest rate swap contracts		104				378				(587)				424
Amortization of debt issuance costs		140				126				250				253
Adjusted net income before income taxes		13,903				15,772				31,604				30,465
Provision for income taxes at 24.5%		(3,406)				(3,864)				(7,743)				(7,464)
Adjusted net income	$	10,497			$	11,908			$	23,861			$	23,001
Adjusted net income per common share:
Basic	$	0.22			$	0.24			$	0.50			$	0.46
Diluted	$	0.21			$	0.23			$	0.48			$	0.45
Weighted average common shares outstanding:
Basic		48,243,204				49,657,547				48,494,260				49,789,304
Diluted		49,427,420				50,775,714				49,865,216				50,946,096

 

(In thousands) Trailing twelve months adjusted EBITDA:		Three months ended December 31, 2022				Three months ended September 30, 2022				Three months ended June 30,  2022				Three months ended March 31,  2022 (as restated)				Twelve months ended December 31,  2022
Net income attributable to Radiant Logistics, Inc.		$	4,836			$	8,433			$	16,750			$	13,567			$	43,586
Income tax expense			1,460				2,764				3,502				4,276				12,002
Depreciation and amortization (1)			7,142				6,778				5,330				4,684				23,934
Net interest expense			683				781				843				997				3,304
EBITDA			14,121				18,756				26,425				23,524				82,826
Share-based compensation			679				609				487				539				2,314
Change in fair value of contingent consideration			150				160				160				152				622
Acquisition related costs			22				27				94				6				149
Ransomware incident related costs (recovery), net			—				—				(347)				279				(68)
Litigation costs			247				120				84				163				614
Transition, lease termination, and other costs			30				—				—				—				30
Change in fair value of interest rate swap contracts			104				(690)				(278)				(1,985)				(2,849)
Foreign exchange gain			(4)				(467)				(239)				(105)				(815)
Adjusted EBITDA		$	15,349			$	18,515			$	26,386			$	22,573			$	82,823

(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.

 

 

 

 

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SOURCE Radiant Logistics, Inc.

FAQ

What were Radiant Logistics' earnings results for the six months ended December 31, 2022?

Radiant Logistics reported revenues of $609.1 million, gross profit of $145.2 million, and net income of $13.3 million for the six months ended December 31, 2022.

How did Radiant Logistics perform in the second fiscal quarter ended December 31, 2022?

In Q2 2022, Radiant reported revenues of $278.1 million and net income of $4.8 million, a decline from the prior year.

What is the current financial position of Radiant Logistics as of March 20, 2023?

Radiant Logistics has no net debt and $62 million in cash, showcasing a strong financial position.

How did Radiant Logistics' adjusted EBITDA change in the recent reporting period?

Adjusted EBITDA for the six months ended December 31, 2022, was $33.9 million, an increase of 5.9% year-over-year.

What strategic moves did Radiant Logistics make recently?

Radiant Logistics acquired Cascade Enterprises and initiated a $5 million stock buy-back program.