RADIANT LOGISTICS, INC. BELLEVUE, Wash., May 10, 2017 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a third party logistics and multi-modal transportation services company, today reported financial results for the three and nine months ended March 31, 2017.
Third Fiscal Quarter Financial Highlights (Quarter Ended March 31, 2017)
-- Revenues were $181.8 million, up $3.5 million or 2.0% compared to
revenues of $178.3 million for the comparable prior year period.
-- Net revenues were $45.7 million, up $3.9 million or 9.3% compared to net
revenues of $41.8 million for the comparable prior year period.
-- Net income attributable to common stockholders was $0.4 million, or
$0.01 per basic and fully diluted share for the third fiscal quarter
ended March 31, 2017, compared to a net loss of $2.2 million, or $0.05
per basic and fully diluted share for the comparable prior year period.
-- Adjusted net income attributable to common stockholders was $3.4
million, or $0.07 per basic and fully diluted share for the third fiscal
quarter ended March 31, 2017, compared to adjusted net income of $1.8
million, or $0.04 per basic and fully diluted share for the comparable
prior year period. Periods are calculated by applying a normalized tax
rate of 36% and excluding other items not considered part of regular
operating activities.
-- Adjusted EBITDA increased 39.5% to $6.5 million for the third fiscal
quarter ended March 31, 2017, compared to adjusted EBITDA of $4.7
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 $6.9 million for the third fiscal quarter ended March
31, 2017 compared to $5.2 million for the comparable prior year period.
Acquisition Update
On April 1, 2017, the Company announced it acquired, through its wholly owned subsidiary, Wheels International Inc., Lomas Logistics, a division of L.V. Lomas Limited. Lomas Logistics operates as a third party logistics provider serving companies across a diverse range of industries including consumer goods, healthcare, food and technology and operates from locations in Ontario and British Columbia, Canada.
Based on unaudited and pro forma historic financial statements provided by L.V. Lomas, Lomas Logistics, generated approximately CAD$1.3 million in net income before tax and CAD$2.3 million in normalized EBITDA on approximately CAD$17.3 million in revenues for calendar year 2016.
CEO Comments
"We are very pleased to report another solid quarter with continued margin expansion and earnings growth in our seasonally slowest quarter ended March 31, 2017," said Bohn Crain, Founder and CEO. "We posted adjusted EBITDA of $6.5 million for the quarter March 31, 2017, up $1.8 million or 39.5% over the comparable prior year period. In the aggregate, net transportation margins improved 190 basis points to 24.5% up from 22.6%. While our U.S. brokerage business was negatively impacted by the continued margin pressures associated with excess truck capacity in the current market environment, this was more than off-set by the margin improvement we enjoyed in our much larger forwarding operations. We also saw meaningful improvement in Canada where net transportation margins improved 430 basis points to 17.8% up from 13.5%. Our Adjusted EBITDA margins also continued to show improvement up 310 basis points to 14.2% up from 11.1%. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further Adjusted EBITDA margin expansion as we continue to scale the business as we leverage the benefits of our on-going technology investments.
Crain Continued: "For the nine months ended March 31, 2017 we also generated $15.5 million in cash from operations, have very low leverage on our balance sheet and had approximately $46.6 million in availability under our existing credit facility at the end of the quarter. We continue our disciplined approach of putting this low-cost capital to work and continue to look for acquisition candidates that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. In this regard, we recently completed our acquisition of Canada-based Lomas Logistics. In addition, we have a number of additional acquisition candidates under consideration and we look forward to providing further updates as these opportunities progress."
Third Fiscal Quarter Ended March 31, 2017 - Financial Results
For the three months ended March 31, 2017, Radiant reported net income attributable to common stockholders of $0.4 million on $181.8 million of revenues, or $0.01 per basic and fully diluted share. For the three months ended March 31, 2016, Radiant reported a net loss attributable to common stockholders of $2.2 million on $178.3 million of revenues, or $0.05 per basic and fully diluted share.
For the three months ended March 31, 2017, Radiant reported adjusted net income attributable to common stockholders of $3.4 million, or $0.07 per basic and fully diluted share. For the three months ended March 31, 2016, Radiant reported adjusted net income attributable to common stockholders of $1.8 million, or $0.04 per basic and fully diluted share. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.
For the three months ended March 31, 2017, Radiant reported Adjusted EBITDA of $6.5 million, compared to $4.7 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 $6.9 million and $5.2 million for the three months ended March 31, 2017 and 2016, respectively.
A reconciliation of Radiant's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the three and nine months ending March 31, 2017 and 2016 appears at the end of this release.
Nine Months Ended March 31, 2017 - Financial Results
For the nine months ended March 31, 2017, Radiant reported net income attributable to common stockholders of $3.8 million on $575.8 million of revenues, or $0.08 per basic and fully diluted share. For the nine months ended March 31, 2016, Radiant reported net loss attributable to common stockholders of $4.9 million on $600.1 million of revenues, or $0.10 per basic and fully diluted share.
For the nine months ended March 31, 2017, Radiant reported adjusted net income attributable to common stockholders of $12.4 million or $0.25 per basic and fully diluted share. For the nine months ended March 31, 2016, Radiant reported adjusted net income attributable to common stockholders of $9.0 million or $0.19 per basic and fully diluted share. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.
For the nine months ended March 31, 2017, Radiant reported Adjusted EBITDA of $22.7 million, compared to $19.0 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 $23.9 million and $20.9 million for the nine months ended March 31, 2017 and 2016, respectively.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on Wednesday, May 10, 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: Wednesday, May 10, 2017 at 4:30 PM Eastern
DIAL-
IN US (877) 407-8031; Intl. (201) 689-8031
REPLAY May 11, 2017 at 9:30 AM Eastern to May 24, 2017 at 11:59 PM Eastern, US (877) 481-4010;
Intl. (919) 882-2331 (Replay ID number: 10369)
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 transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations; the ability of the Wheels operation to maintain and grow its revenues and operating margins in a manner consistent with recent operating results and trends; our ability to maintain positive relationships with our third-party transportation providers, suppliers and customers; outcomes of legal proceedings; competition; management of growth; potential fluctuations in operating results; and government regulation. More information about factors that potentially could affect our financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
RADIANT LOGISTICS, INC.
Consolidated Balance Sheets
(In thousands, except share and per share
data) March 31, June 30,
2017 2016
---- ----
ASSETS
Current assets:
Cash and cash equivalents $12,933 $4,768
Accounts receivable, net of allowance of
$1,954 and $1,806, respectively 97,479 101,035
Employee and other receivables 369 635
Income tax deposit 1,585 1,525
Prepaid expenses and other current assets 6,048 5,410
----- -----
Total current assets 118,414 113,373
------- -------
Technology and equipment, net 13,133 12,453
------ ------
Acquired intangibles, net 65,758 71,941
Goodwill 62,888 62,888
Deposits and other assets 2,891 2,814
----- -----
Total long-term assets 131,537 137,643
------- -------
Total assets $263,084 $263,469
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
transportation costs $71,911 $75,071
Commissions payable 9,065 8,280
Other accrued costs 4,628 5,331
Due to former shareholders of acquired
operations - 50
Current portion of notes payable 2,463 2,416
Current portion of contingent
consideration 4,735 3,387
Current portion of transition and lease
termination liability 1,301 1,838
Other current liabilities 94 138
--- ---
Total current liabilities 94,197 96,511
------ ------
Notes payable, net of current portion 30,206 28,903
Contingent consideration, net of current
portion 665 4,098
Transition and lease termination
liability, net of current portion 318 658
Deferred rent liability 854 851
Deferred tax liability 11,954 12,525
Other long-term liabilities 882 742
--- ---
Total long-term liabilities 44,879 47,777
------ ------
Total liabilities 139,076 144,288
------- -------
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;
48,932,533 and 48,857,506 shares issued,
and 48,840,735 and 48,857,506 shares
outstanding, respectively 30 30
Additional paid-in capital 115,195 114,392
Treasury stock, at cost, 91,798 and 0
shares, respectively (253) -
Deferred compensation - (1)
Retained earnings 8,427 4,581
Accumulated other comprehensive income 528 98
--- ---
Total Radiant Logistics, Inc.
stockholders' equity 123,928 119,101
------- -------
Non-controlling interest 80 80
--- ---
Total stockholders' equity 124,008 119,181
------- -------
Total liabilities and stockholders'
equity $263,084 $263,469
======== ========
RADIANT LOGISTICS, INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(In thousands, except share and per share data) Three Months Ended March 31, Nine Months Ended March 31,
---------------------------- ---------------------------
2017 2016 2017 2016
---- ---- ---- ----
Revenues $181,771 $178,299 $575,785 $600,116
Cost of transportation 136,062 136,498 430,943 460,005
------- ------- ------- -------
Net revenues 45,709 41,801 144,842 140,111
------ ------ ------- -------
Operating partner commissions 21,421 18,955 67,729 62,944
Personnel costs 12,505 13,185 38,238 40,907
Selling, general and administrative expenses 5,575 5,865 16,924 18,957
Depreciation and amortization 3,005 3,037 9,039 9,261
Transition and lease termination costs 446 789 1,307 5,109
Impairment of acquired intangible assets - - - 3,680
Change in contingent consideration 737 442 1,793 628
--- --- ----- ---
Total operating expenses 43,689 42,273 135,030 141,486
------ ------ ------- -------
Income (loss) from operations 2,020 (472) 9,812 (1,375)
----- ---- ----- ------
Other income (expense):
Interest income 6 30 17 44
Interest expense (614) (1,370) (1,873) (4,104)
Foreign exchange gain (loss) (35) (80) 354 389
Other 85 (15) 393 102
--- --- --- ---
Total other expense: (558) (1,435) (1,109) (3,569)
---- ------ ------ ------
Income (loss) before income tax expense 1,462 (1,907) 8,703 (4,944)
Income tax benefit (expense) (540) 208 (3,281) 1,601
---- --- ------ -----
Net income (loss) 922 (1,699) 5,422 (3,343)
Less: Net income attributable to non-controlling interest (15) (20) (42) (53)
--- --- --- ---
Net income (loss) attributable to Radiant Logistics, Inc. 907 (1,719) 5,380 (3,396)
Less: Preferred stock dividends (511) (511) (1,534) (1,534)
---- ---- ------ ------
Net income (loss) attributable to common stockholders $396 $(2,230) $3,846 $(4,930)
==== ======= ====== =======
Other comprehensive income (loss):
Foreign currency translation gain (loss) (109) (759) 430 663
---- ---- --- ---
Comprehensive income (loss) $287 $(2,989) $4,276 $(4,267)
==== ======= ====== =======
Net income (loss) per common share - basic and diluted $0.01 $(0.05) $0.08 $(0.10)
Weighted average shares outstanding:
Basic shares 48,817,330 48,745,727 48,822,882 48,282,964
Diluted shares 50,169,571 48,745,727 49,834,591 48,282,964
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, 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 March 31, Nine Months Ended March 31,
---------------------------- ---------------------------
Reconciliation of net income (loss) to adjusted net income: 2017 2016 2017 2016
---- ---- ---- ----
Net income (loss) attributable to common stockholders $396 $(2,230) $3,846 $(4,930)
Adjustments to net income:
Income tax expense (benefit) 540 (208) 3,281 (1,601)
Depreciation and amortization 3,005 3,037 9,039 9,261
Change in contingent consideration 737 442 1,793 628
Lease termination costs - 235 25 2,343
Acquisition related costs 308 694 525 2,106
Legal costs 25 277 138 959
Non-recurring costs - 145 14 250
Amortization of loan fees 79 101 239 302
Transition costs associated with acquisitions 446 554 1,282 1,931
Loss on impairment of acquired intangible assets - - - 3,680
--- --- --- -----
Adjusted net income before income taxes 5,536 3,047 20,182 14,929
Provision for income taxes at 36% before preferred dividend requirement (2,177) (1,281) (7,818) (5,927)
------ ------ ------ ------
Adjusted net income $3,359 $1,766 $12,364 $9,002
====== ====== ======= ======
Adjusted net income per common share - basic and diluted $0.07 $0.04 $0.25 $0.19
Weighted average shares outstanding:
Basic shares 48,817,330 48,745,727 48,822,882 48,282,964
Diluted shares 50,169,571 48,745,727 49,834,591 48,282,964
Three Months Ended March 31, Nine Months Ended March 31,
---------------------------- ---------------------------
Reconciliation of net income (loss) to normalized adjusted EBITDA 2017 2016 2017 2016
---- ---- ---- ----
Net income (loss) attributable to common stockholders $396 $(2,230) $3,846 $(4,930)
Preferred stock dividends 511 511 1,534 1,534
--- --- ----- -----
Net income (loss) attributable to Radiant Logistics, Inc. 907 (1,719) 5,380 (3,396)
Income tax expense (benefit) 540 (208) 3,281 (1,601)
Depreciation and amortization 3,005 3,037 9,039 9,261
Net interest expense 608 1,340 1,856 4,060
--- ----- ----- -----
EBITDA 5,060 2,450 19,556 8,324
Share-based compensation 323 327 983 1,085
Change in contingent consideration 737 442 1,793 628
Acquisition related costs 308 694 525 2,106
Legal costs 25 277 138 959
Non-recurring costs - 145 14 250
Lease termination costs - 235 25 2,343
Loss on impairment of acquired intangible assets - - - 3,680
Foreign exchange loss (gain) 35 80 (354) (389)
--- --- ---- ----
Adjusted EBITDA 6,488 4,650 22,680 18,986
Transition costs 446 554 1,263 1,931
--- --- ----- -----
Normalized adjusted EBITDA $6,934 $5,204 $23,943 $20,917
====== ====== ======= =======
Adjusted EBITDA as a % of Net Revenues 14.2% 11.1% 15.7% 13.6%
Normalized Adjusted EBITDA as a % of Net Revenues 15.2% 12.4% 16.5% 14.9%
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SOURCE Radiant Logistics, Inc.
