EX-99.1 2 rlgt-ex991_6.htm EX-99.1 rlgt-ex991_6.htm

Exhibit 99.1

 

RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE FIRST fiscal quarter ENDED September 30, 2017

Reports quarterly revenues of $198.0 million;

Net revenues of $46.1 million; and

Adjusted EBITDA of $6.5 million

BELLEVUE, WA November 9, 2017 – Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multi-modal transportation services company, today reported financial results for the three months ended September 30, 2017.

First Fiscal Quarter Financial Highlights (Quarter Ended September 30, 2017)

 

Revenues were $198.0 million for the first fiscal quarter ended September 30, 2017, up $2.9 million or 1.5% compared to revenues of $195.1 million for the comparable prior year period.

 

Net revenues were $46.1 million for the first fiscal quarter ended September 30, 2017, down $2.9 million or 5.9% compared to net revenues of $49.0 million for the comparable prior year period.

 

Net income attributable to common stockholders was $0.3 million, or $0.01 per basic and fully diluted share, compared to a net income of $1.4 million, or $0.03 per basic and fully diluted share for the comparable prior year period and includes $0.3 million in customer start-up costs associated with the Company’s expanded materials management and distribution (“MM&D”) solution offering in Canada.

 

Adjusted net income attributable to common stockholders was $2.7 million, or $0.05 per basic and fully diluted share for the first fiscal quarter ended September 30, 2017, 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 EBITDA was $6.5 million for the first fiscal quarter ended September 30, 2017, down $0.8 million or 11.0% compared to adjusted EBITDA of $7.3 million for the comparable prior year period.

Acquisition Update

On September 1, 2017, the Company announced that it acquired the assets and operations of Sandifer-Valley Transportation & Logistics, Ltd. (“SVT”) through its wholly-owned subsidiary, Radiant Global Logistics, Inc. SVT is expected to transition to the Radiant brand and will expand the Company’s cross-border capabilities with Mexico providing a full range of domestic and international services with operations in McAllen, Texas.

CEO Comments

“Given the recent market headwinds, we reported Adjusted EBITDA of $6.5 million on revenues of $198.0 million and net revenues of $46.1 million for the quarter ended September 30, 2017,” said Bohn Crain, Founder and CEO. “On a comparable year over year basis, revenues were up $2.9 million or 1.5% while net revenues were down $2.9 million or 5.9%. These quarterly net revenue results reflect the impacts of excess capacity and related pressures on transportation margins (down $4.2 million) that continued through most of the quarter, partially offset by an incremental $1.4 million in net revenue contribution attributed to our acquisition of Lomas Logistics which expanded our materials management and distribution (“MM&D”) capabilities in Canada.  Most of the compression in our net transportation margins was offset by a corresponding reduction in commissions paid to our operating partners (down $3.7 million). In addition, our quarterly results were negatively impacted by approximately $0.3 million in start-up costs associated with adding new and reconfiguring existing Canadian facilities to further expand our MM&D solution offering which we believe will be a meaningful financial contributor in future quarters.

 

Looking forward, we believe we are well positioned to benefit from a more favorable market environment as capacity tightens and demand accelerates. We believe this will lead to expanding transportation margins and improved financial performance for both our forwarding and brokerage operations over the next several quarters. In addition, we are seeing strong demand for our Canada-based materials management and distribution solutions offering and have secured contracts with 8 new customers that we estimate will contribute an incremental $3.5-$4.0 million in incremental annual MM&D and transportation net revenues that will come on line over the next two quarters. We believe our strategic decision to bundle value added materials management and distribution solutions with


our core transportation service offering will continue to gain momentum and allow us to enhance our margins and accelerate our organic growth.”

 

Crain Continued: “We also made meaningful progress on the technology front this last quarter with the successful pilot of our new SAP-based transportation management system in Phoenix, Arizona. This was an important milestone for the Company and puts us in position to begin a more broad-based roll out of the system in the first calendar quarter of 2018. As we have previously discussed, we believe our ongoing investment in technology provides us with a unique opportunity to deliver a state-of-the-art technology platform for our strategic operating partners and the end customers that we serve. At the same time, our new technology set will enable a number of productivity initiatives to stream-line our back-office processes and accelerate the realization of back-office cost synergies associated with existing and future acquisitions and can ultimately help facilitate revenue synergies across the platform.”

September 30, 2017 – Financial Results

For the three months ended September 30, 2017, Radiant reported net income attributable to common stockholders of $0.3 million on $198.0 million of revenues, or $0.01 per basic and fully diluted share. For the three months ended September 30, 2016, Radiant reported net income attributable to common stockholders of $1.4 million on $195.1 million of revenues, or $0.03 per basic and fully diluted share.

For the three months ended September 30, 2017, Radiant reported adjusted net income attributable to common stockholders of $2.7 million, or $0.05 per basic and fully diluted share. For the three months ended September 30, 2016, Radiant reported adjusted net income attributable to common stockholders of $4.0 million, or $0.08 per basic and fully diluted share.

For the three months ended September 30, 2017, Radiant reported Adjusted EBITDA of $6.5 million, compared to $7.3 million for the comparable prior year period. Normalizing these results to exclude non-recurring transition costs associated with the interim operation of Service by Air’s back-office operations, Adjusted EBITDA would have been $6.5 million and $7.8 million for the three months ended September 30, 2017 and 2016, respectively.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Thursday, November 9, 2017 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, November 9, 2017 at 4:30 PM Eastern

DIAL-IN

US (877) 407-8031; Intl. (201) 689-8031

REPLAY

November 10, 2017 at 9:30 AM Eastern to November 23, 2017 at 4:30 PM Eastern, US (877) 481-4010;

 

Intl. (919) 882-2331 (Replay ID number: 22344)

 


 

Webcast Details

This call is also being webcast and may be accessed via Radiant’s web site at www.radiantdelivers.com or through www.InvestorCalendar.com.

About Radiant Logistics (NYSE MKT: 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

2


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.

# # #

 

Investor Contact:

Radiant Logistics, Inc.

Todd Macomber

(425) 943-4541

tmacomber@radiantdelivers.com

Media Contact:

Radiant Logistics, Inc.

Ryan McBride

(425) 943-4533

rmcbride@radiantdelivers.com

 

 

 

 

 

 

3


 

RADIANT LOGISTICS, INC.

Consolidated Balance Sheets

 

(In thousands, except share and per share data)

 

September 30,

 

 

June 30,

 

 

 

2017

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,767

 

 

$

5,808

 

Accounts receivable, net of allowance of $1,830 and $1,599, respectively

 

 

123,260

 

 

 

116,327

 

Employee and other receivables

 

 

271

 

 

 

251

 

Income tax deposit

 

 

658

 

 

 

432

 

Prepaid expenses and other current assets

 

 

6,256

 

 

 

6,902

 

Total current assets

 

 

136,212

 

 

 

129,720

 

 

 

 

 

 

 

 

 

 

Technology and equipment, net

 

 

15,607

 

 

 

15,227

 

 

 

 

 

 

 

 

 

 

Acquired intangibles, net

 

 

73,311

 

 

 

74,729

 

Goodwill

 

 

66,997

 

 

 

66,779

 

Deposits and other assets

 

 

3,158

 

 

 

3,085

 

Total long-term assets

 

 

143,466

 

 

 

144,593

 

Total assets

 

$

295,285

 

 

$

289,540

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued transportation costs

 

$

85,008

 

 

$

85,490

 

Commissions payable

 

 

11,466

 

 

 

10,843

 

Other accrued costs

 

 

5,302

 

 

 

4,778

 

Current portion of notes payable

 

 

3,548

 

 

 

3,382

 

Current portion of contingent consideration

 

 

3,830

 

 

 

4,130

 

Current portion of transition and lease termination liability

 

 

1,343

 

 

 

1,210

 

Other current liabilities

 

 

349

 

 

 

143

 

Total current liabilities

 

 

110,846

 

 

 

109,976

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

42,083

 

 

 

37,040

 

Contingent consideration, net of current portion

 

 

6,015

 

 

 

5,790

 

Transition and lease termination liability, net of current portion

 

 

622

 

 

 

804

 

Deferred rent liability

 

 

980

 

 

 

857

 

Deferred tax liability

 

 

10,205

 

 

 

10,826

 

Other long-term liabilities

 

 

1,099

 

 

 

782

 

Total long-term liabilities

 

 

61,004

 

 

 

56,099

 

Total liabilities

 

 

171,850

 

 

 

166,075

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

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

   outstanding, liquidation preference of $20,980

 

 

1

 

 

 

1

 

Common stock, $0.001 par value, 100,000,000 shares authorized; 49,187,768 and 49,177,215

   shares issued, and 49,095,970 and 49,085,417 shares outstanding, respectively

 

 

30

 

 

 

30

 

Additional paid-in capital

 

 

116,570

 

 

 

116,172

 

Treasury stock, at cost, 91,798 shares

 

 

(253

)

 

 

(253

)

Retained earnings

 

 

7,713

 

 

 

7,397

 

Accumulated other comprehensive income (loss)

 

 

(740

)

 

 

65

 

Total Radiant Logistics, Inc. stockholders’ equity

 

 

123,321

 

 

 

123,412

 

Non-controlling interest

 

 

114

 

 

 

53

 

Total stockholders’ equity

 

 

123,435

 

 

 

123,465

 

Total liabilities and stockholders’ equity

 

$

295,285

 

 

$

289,540

 

 

 


4


 

RADIANT LOGISTICS, INC.

Consolidated Statements of Operations and Comprehensive Income (Loss)

 

(In thousands, except share and per share data)

 

Three Months Ended September 30,

 

 

 

2017

 

 

2016

 

Revenues

 

$

197,977

 

 

$

195,133

 

Cost of transportation

 

 

151,829

 

 

 

146,124

 

Net revenues

 

 

46,148

 

 

 

49,009

 

 

 

 

 

 

 

 

 

 

Operating partner commissions

 

 

19,692

 

 

 

23,351

 

Personnel costs

 

 

13,993

 

 

 

12,778

 

Selling, general and administrative expenses

 

 

6,848

 

 

 

5,782

 

Depreciation and amortization

 

 

3,575

 

 

 

3,006

 

Transition and lease termination costs

 

 

107

 

 

 

476

 

Change in contingent consideration

 

 

(300

)

 

 

250

 

Total operating expenses

 

 

43,915

 

 

 

45,643

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

2,233

 

 

 

3,366

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

7

 

 

 

4

 

Interest expense

 

 

(771

)

 

 

(639

)

Foreign exchange gain (loss)

 

 

(85

)

 

 

201

 

Other

 

 

130

 

 

 

194

 

Total other expense:

 

 

(719

)

 

 

(240

)

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

 

1,514

 

 

 

3,126

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(626

)

 

 

(1,252

)

 

 

 

 

 

 

 

 

 

Net income

 

 

888

 

 

 

1,874

 

Less: Net income attributable to non-controlling interest

 

 

(61

)

 

 

(12

)

 

 

 

 

 

 

 

 

 

Net income attributable to Radiant Logistics, Inc.

 

 

827

 

 

 

1,862

 

Less: Preferred stock dividends

 

 

(511

)

 

 

(511

)

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

$

316

 

 

$

1,351

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

(805

)

 

 

221

 

Comprehensive income (loss)

 

$

(489

)

 

$

1,572

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic and diluted

 

$

0.01

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic shares

 

 

49,085,545

 

 

 

48,861,511

 

Diluted shares

 

 

50,642,953

 

 

 

49,534,395

 

 


5


RADIANT LOGISTICS, INC.

Reconciliation of Net Income to Adjusted Net Income, EBITDA,
Adjusted EBITDA and Normalized Adjusted EBITDA

(unaudited)

As used in this report, Adjusted Net Income, EBITDA, Adjusted EBITDA and Normalized Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles (“GAAP”). Adjusted Net Income, EBITDA, Adjusted EBITDA and Normalized 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 36% tax rate for calculating 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, 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, legal costs and non-recurring costs.

Adjusted EBITDA means earnings before preferred stock dividends, interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration, expenses specifically attributable to acquisitions, lease termination costs, extraordinary items, share-based compensation expense, legal costs, non-recurring costs, material management and distribution (“MM&D”) start-up costs, write off of loan fees, impairment of acquired intangible assets and foreign exchange losses or gains. Normalized Adjusted EBITDA represents the Adjusted EBITDA but also adds back transition costs associated with the SBA back-office that is projected to be eliminated.

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 Net Income, EBITDA, Adjusted EBITDA and Normalized 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.

 

 

Three Months Ended September 30,

 

Reconciliation of net income to adjusted net income:

 

2017

 

 

2016

 

Net income attributable to common stockholders

 

$

316

 

 

$

1,351

 

Adjustments to net income (loss):

 

 

 

 

 

 

 

 

Income tax expense

 

 

626

 

 

 

1,252

 

Depreciation and amortization

 

 

3,575

 

 

 

3,006

 

Change in contingent consideration

 

 

(300

)

 

 

250

 

Lease termination costs

 

 

107

 

 

 

3

 

Acquisition related costs

 

 

78

 

 

 

145

 

Legal costs

 

 

24

 

 

 

36

 

Non-recurring costs

 

 

 

 

 

6

 

Amortization of loan fees

 

 

62

 

 

 

80

 

Transition costs associated with acquisitions

 

 

 

 

 

455

 

 

 

 

 

 

 

 

 

 

Adjusted net income before income taxes

 

 

4,488

 

 

 

6,584

 

 

 

 

 

 

 

 

 

 

Provision for income taxes at 36% before preferred dividend

   requirement

 

 

(1,800

)

 

 

(2,554

)

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

2,688

 

 

$

4,030

 

 

 

 

 

 

 

 

 

 

Adjusted net income per common share - basic and diluted

 

$

0.05

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic shares

 

 

49,085,545

 

 

 

48,861,511

 

Diluted shares

 

 

50,642,953

 

 

 

49,534,395

 

 

6


 

 

Three Months Ended September 30,

 

Reconciliation of net income to normalized adjusted EBITDA

 

2017

 

 

2016

 

Net income attributable to common stockholders

 

$

316

 

 

$

1,351

 

Preferred stock dividends

 

 

511

 

 

 

511

 

 

 

 

 

 

 

 

 

 

Net income attributable to Radiant Logistics, Inc.

 

 

827

 

 

 

1,862

 

Income tax expense

 

 

626

 

 

 

1,252

 

Depreciation and amortization

 

 

3,575

 

 

 

3,006

 

Net interest expense

 

 

764

 

 

 

635

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

5,792

 

 

 

6,755

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

350

 

 

 

331

 

Change in contingent consideration

 

 

(300

)

 

 

250

 

Acquisition related costs

 

 

78

 

 

 

145

 

Legal costs

 

 

24

 

 

 

36

 

Non-recurring costs

 

 

 

 

 

6

 

Lease termination costs

 

 

107

 

 

 

3

 

MM&D start-up costs

 

 

347

 

 

 

 

Foreign exchange loss (gain)

 

 

85

 

 

 

(201

)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

6,483

 

 

 

7,325

 

Transition costs

 

 

 

 

 

455

 

Normalized adjusted EBITDA

 

$

6,483

 

 

$

7,780

 

Adjusted EBITDA as a % of Net Revenues

 

 

14.0

%

 

 

14.9

%

Normalized Adjusted EBITDA as a % of Net Revenues

 

 

14.0

%

 

 

15.9

%

 

 

 

7