RADIANT LOGISTICS, INC. BELLEVUE, Wash., Nov. 12, 2014 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today reported financial results for the three months ended September 30, 2014.
First Fiscal Quarter Financial Highlights (Quarter Ended September 30, 2014)
-- Net income attributable to common shareholders was approximately $1.0
million, on $98.2 million of revenues, or $0.03 per basic and fully
diluted share, for the first fiscal quarter of 2015, compared to net
income of $1.1 million on $76.7 million of revenues, or $0.03 per basic
and fully diluted share, for the comparable prior year period.
-- Adjusted net income attributable to common shareholders was $1.5
million, or $0.04 per basic and fully diluted share, for the first
fiscal quarter of 2015, compared to adjusted net income attributable to
common shareholders of $1.5 million, or $0.05 per basic and $0.04 per
fully diluted share, for the comparable prior year period. Both periods
are calculated by applying a normalized tax rate of 40% and excluding
other items not considered part of regular operating activities.
-- Adjusted EBITDA increased 17.7% to $3,662,000 for the first fiscal
quarter of 2015, compared to adjusted EBITDA of $3,112,000 in the
comparable prior year period.
-- Adjusted EBITDA margin (expressed as a function of net revenues)
increased 50 basis points to 13.9% for the first fiscal quarter of 2014,
compared to Adjusted EBITDA margin of 13.4% in the comparable prior year
period.
Network Expansion - Organic Growth
The Company announced further organic expansion of its network in the quarter with five new operating locations servicing a diversified base of domestic and international customers as follows:
-- New Adcom locations in Tulsa and Oklahoma City, Oklahoma led by Jimmy
Sheets;
-- New Distribution By Air locations in Boston, Massachusetts led Joe
Griffin and Patty Campisi and Fort Lauderdale, Florida led by Dale
Kloss; and
-- A new Airgroup location in San Diego, California led by Debbie Smythe
and Lynn Buechner.
CEO Comments
"We continue to make steady progress in driving margin expansion and earnings growth," said Bohn Crain, Founder and CEO. "We posted Adjusted EBITDA of $3.7 million for the quarter ended September 30, 2014, up approximately $0.6 million and 17.7% over the comparable prior year period. Our Adjusted EBITDA expressed as a function of net revenues increased 50 basis points, up from 13.4% to 13.9% for the comparable prior year period. In addition, we enjoyed significant new wins late in the quarter adding five new operating locations from four different competing networks in late September. On-boarding new strategic operating partners has historically been an important contributor to our organic growth and we believe this group of new operating partners will contribute as much as $20.0 million in revenues and $1.0 million in EBITDA to our bottom line on a run-rate basis starting in calendar year 2015. We seem to be gaining momentum in the agent-based forwarding community with more and more logistics entrepreneurs looking to align themselves with a strong financial partner with the technology, purchasing power and global network to deliver world-class solutions to their customers. We are in active discussions with a number of additional agent-station candidates and look forward to providing further updates as we welcome new partners to the network."
Crain continued: "In addition to our recent success in attracting new agent partners to the network, we continue to enjoy significant financial flexibility to accelerate our growth via acquisitions which may include the acquisition of existing operating partners, the acquisition of agent stations participating in competing networks and given the opportunity, the acquisition of other competing networks. In addition, we also have an interest in pursuing other non-asset based acquisition opportunities that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. We continue to cultivate a pipeline of acquisition opportunities meeting these criteria and we are looking forward to sharing additional information on the acquisition front as things develop."
Crain concluded: "We are providing guidance for the upcoming quarter ending December 31, 2014 and excluding the impact of any further acquisitions, gain on litigation, or other unusual items, we are projecting adjusted EBITDA in the range of $3.8 - $4.3 million on approximately $103.0 - $108.2 million in revenues which equates to adjusted net income available to common shareholders in the range of $1.6 - $1.9 million, or $0.05 per basic and $0.04 - $0.05 per fully diluted share. These projections assume that any incremental EBITDA contributions for the five new operating locations will be off-set by non-recurring integration/on-boarding costs in the quarter ended December with the true incremental run-rate EBITDA contribution for these locations first reflected in the quarter ended March 31, 2015. As with our previous communications, we would also like to remind investors that our free cash flow is generally higher than our net income because we have significant non-cash depreciation and amortization expenses flowing through our financial statements as a result of the mechanics of accounting for acquisitions and the fact that we have minimal maintenance capital expenditure requirements."
First Fiscal Quarter ended September 30, 2014 - Financial Results
For the three months ended September 30, 2014, Radiant reported net income attributable to common shareholders of $1,009,000 on $98.2 million of revenues, or $0.03 per basic and fully diluted share. For the three months ended September 30, 2013, Radiant reported net income attributable to common shareholders of $1,092,000 on $76.7 million of revenues, or $0.03 per basic and fully diluted share.
For the three months ended September 30, 2014, Radiant reported adjusted net income attributable to common shareholders of $1,518,000, or $0.04 per basic and fully diluted share. For the three months ended September 30, 2013, Radiant reported adjusted net income attributable to common shareholders of $1,528,000, or $0.05 per basic and $0.04 per fully diluted share.
The Company also reported adjusted EBITDA of $3,662,000 for the three months ended September 30, 2014, compared to adjusted EBITDA of $3,112,000 for the three months ended September 30, 2013.
In addition, the Company also reported adjusted EBITDA margin (expressed as a function of net revenues) of 13.9% for the three months ended September 30, 2014, compared to adjusted EBITDA margin of 13.4% in the comparable prior period.
A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the three months ending September 30, 2014 and 2013 appears at the end of this release.
Reconciliation of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined under the Securities Exchange Commission ("SEC") rules such as adjusted net income, adjusted net income per share and earnings before interest, taxes, depreciation and amortization ("EBITDA"). We believe that supplemental disclosure of these amounts are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business that eliminates depreciation, amortization and certain other non-cash costs and other significant items that are not part of regular operating activities. A reconciliation of adjusted net income, adjusted net income per share and adjusted EBITDA for the outlook period ending December 31, 2014 is as follows:
(in thousands, except for earnings per share)
Outlook
Fiscal Quarter Ending
December 31, 2014
-----------------
Net income attributable to
Radiant Logistics, Inc. $ 1,182 - $1,482
Less: Preferred Dividend
Requirement $(511)
-----
Net income attributable to
common shareholders $ 671 - $971
Net income per common share
Basic and Diluted $ 0.02 - 0.03
Weighted average shares
outstanding:
Basic shares 34,650,000
Diluted shares 36,150,000
Reconciliation of net income to
adjusted net income:
Net income attributable to
common shareholders $ 671 - $971
Adjustments to net income:
Income tax expense $ 808 - $1,008
Non-recurring legal and other $150
Depreciation and amortization $1,333
------
Adjusted net income before
taxes $ 2,962 - $3,462
Less: Provision for income
taxes at 40% before preferred
dividend $ (1,389) - (1,589)
requirement of $511
$ 1,573 - $1,873
Adjusted net income
Adjusted net income per common
share:
Basic $ 0.05 - $0.05
Diluted $ 0.04 - $0.05
Reconciliation of net income to
adjusted EBITDA: Outlook
Fiscal Quarter Ending
December 31, 2014
-----------------
Net Income attributable to
common shareholders $ 671 - $971
Preferred dividends $511
Net income attributable to
Radiant Logistics, Inc. $ 1,182 - $1,482
Adjustments to net income:
Income tax expense $ 808 - $1,008
Depreciation and amortization $1,333
Net interest expense $90
---
$ 3,413 -$3,913
EBITDA
$201
Share-based compensation
Non-recurring legal and other $150
Change in contingent
consideration $44
---
$ 3,808 - $4,308
Adjusted EBITDA
This supplemental financial information is presented for informational purposes only and is not a substitute for the financial information presented in accordance with accounting principles generally accepted in the United States.
Investor Conference Call
Radiant will host a conference call for shareholders and the investing community on Thursday, November 13, 2014 at 4:00 pm, ET to discuss the contents of this release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using conference ID number 13595251. This call is also being webcast and may be accessed via Radiant's web site at www.radiantdelivers.com.
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics services company providing domestic and international freight forwarding services and truck brokerage services through a network of Company-owned and strategic operating partner locations operating under the Radiant, Airgroup, Adcom, DBA and On Time network brands located throughout North America and an integrated service partner network serving other markets around the globe. We also offer an expanding array of value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing.
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, outcomes of legal proceedings, competition, management of growth, potential fluctuations in operating results, and government regulation. More information about factors that potentially could affect Radiant Logistics, Inc. 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.
Consolidated Balance Sheets
September 30, June 30,
2014 2014
---- ----
ASSETS
Current assets:
Cash and cash equivalents $3,085,110 $2,880,205
Accounts receivable, net of allowance of $1,025,668 and 63,563,410 65,066,555
$1,034,934, respectively
Current portion of employee and other receivables 207,503 232,791
Prepaid expenses and other current assets 5,026,157 2,926,431
Deferred tax asset 521,483 925,208
------- -------
Total current assets 72,403,663 72,031,190
---------- ----------
Furniture and equipment, net 1,613,859 1,265,107
--------- ---------
Acquired intangibles, net 16,072,505 15,041,988
Goodwill 28,778,537 28,247,003
Employee and other receivables, net of current portion 11,864 22,070
Deposits and other assets 611,133 617,093
------- -------
Total long-term assets 45,474,039 43,928,154
---------- ----------
Total assets $119,491,561 $117,224,451
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued transportation costs $44,919,540 $45,510,140
Commissions payable 6,105,158 5,569,671
Other accrued costs 2,934,417 2,517,415
Income taxes payable 97,936 436,328
Current portion of contingent consideration 1,558,000 1,541,000
Current portion of lease termination liability 328,618 319,826
------- -------
Total current liabilities 55,943,669 55,894,380
---------- ----------
Note payable 7,449,964 7,243,371
Contingent consideration, net of current portion 10,809,000 9,626,000
Lease termination liability, net of current portion 148,731 198,502
Deferred rent liability 688,708 560,248
Deferred tax liability 2,125,583 2,774,506
Other long-term liabilities 27,493 2,610
------ -----
Total long-term liabilities 21,249,479 20,405,237
---------- ----------
Total liabilities 77,193,148 76,299,617
---------- ----------
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 839 839
839,200 shares issued and outstanding, liquidation
preference of $20,980,000
Common stock, $0.001 par value, 100,000,000 shares authorized; 16,046 15,781
34,590,936 and 34,326,308 shares issued and outstanding,
respectively
Additional paid-in capital 34,917,546 34,558,785
Deferred compensation (7,948) (9,209)
Retained earnings 7,326,728 6,317,473
--------- ---------
Total Radiant Logistics, Inc. stockholders' equity 42,253,211 40,883,669
---------- ----------
Non-controlling interest 45,202 41,165
------ ------
Total stockholders' equity 42,298,413 40,924,834
---------- ----------
Total liabilities and stockholders' equity $119,491,561 $117,224,451
============ ============
RADIANT LOGISTICS, INC.
Consolidated Statements of Operations
September 30,
-------------
2014 2013
---- ----
Revenues $98,231,388 $76,701,861
Cost of transportation 71,906,605 53,481,360
---------- ----------
Net revenues 26,324,783 23,220,501
---------- ----------
Operating partner
commissions 13,979,351 13,634,772
Personnel costs 6,559,946 4,491,603
Selling, general and
administrative expenses 2,648,066 2,264,334
Depreciation and
amortization 1,279,081 830,098
Change in contingent
consideration (550,000) (195,000)
-------- --------
Total operating expenses 23,916,444 21,025,807
---------- ----------
Income from operations 2,408,339 2,194,694
--------- ---------
Other income (expense):
Interest income 925 2,500
Interest expense (91,459) (521,163)
Other 126,822 84,183
------- ------
Total other income
(expense) 36,288 (434,480)
------ --------
Income before income tax
expense 2,444,627 1,760,214
Income tax expense (901,926) (651,835)
-------- --------
Net income 1,542,701 1,108,379
Less: Net income
attributable to non-
controlling interest (22,037) (16,642)
------- -------
Net income attributable to
Radiant Logistics, Inc. 1,520,664 1,091,737
Less: Preferred stock
dividends (511,388) -
-------- ---
Net income attributable to
common stockholders $1,009,276 $1,091,737
========== ==========
Net income per common
share -basic and diluted $0.03 $0.03
Weighted average shares
outstanding:
Basic shares 34,349,586 33,337,362
Diluted shares 35,827,335 35,144,910
RADIANT LOGISTICS, INC.
Reconciliation of Net Income to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Reconciliation of Net Income per share to Adjusted Net Income per share
(unaudited)
As used in this report, Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income and Adjusted Net Income per Share, 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 40% 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 difference effective tax rates. In addition, in arriving at Adjusted Net Income and Adjusted Net Income per Share, the Company adjusts for significant items that are not part of regular operating activities. These adjustments include acquisition costs, transition, severance and lease termination costs, non-recurring litigation expenses as well as depreciation and amortization and certain other non-cash charges.
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, severance and lease termination costs, extraordinary items, share based compensation expense, non-recurring litigation expenses and other non-cash charges. We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges and other non-recurring charges. We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Adjusted Net Income and Adjusted Net income per Share, 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.
Three Months Ended
September 30,
-------------
2014 2013
---- ----
Net income attributable to common
stockholders $1,009,276 $1,091,737
Net income per common share -basic
and diluted $0.03 $0.03
Weighted average shares
outstanding:
Basic shares 34,349,586 33,337,362
Diluted shares 35,827,335 35,144,910
Reconciliation of net income to
adjusted net income:
Net income attributable to common
stockholders $1,009,276 $1,091,737
Adjustments to net income:
Income tax expense 901,926 651,835
Depreciation and amortization 1,279,081 830,098
Change in contingent consideration (550,000) (195,000)
Acquisition related costs 94,771 65,568
Non-recurring legal costs 120,113 15,761
Amortization of loan fees and OID 15,295 85,844
Adjusted Net Income before income
taxes 2,870,462 2,545,843
Provision for income taxes at 40%
before preferred (1,352,740) (1,018,337)
dividend requirement
Adjusted net income $1,517,722 $1,527,506
========== ==========
Adjusted net income per common
share:
Basic $0.04 $0.05
Diluted $0.04 $0.04
Three Months Ended
September 30,
-------------
Reconciliation of net income to
adjusted EBITDA 2014 2013
---- ----
Net income attributable to common
stockholders $1,009,276 $1,091,737
Preferred stock dividends 511,388 -
------- ---
Net income attributable to Radiant
Logistics, Inc. 1,520,664 1,091,737
Income tax expense 901,926 651,835
Depreciation and amortization 1,279,081 830,098
Net interest expense 90,534 518,663
------ -------
EBITDA 3,792,205 3,092,333
Share-based compensation 204,729 133,189
Change in contingent consideration (550,000) (195,000)
Acquisition related costs 94,771 65,568
Non-recurring legal costs 120,113 15,761
Adjusted EBITDA $3,661,818 3,111,851
========== =========
As a % of Net Revenues 13.9% 13.4%
SOURCE Radiant Logistics, Inc.
