BELLEVUE, Wash., May 14, 2013 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today reported financial results for the three and nine months ended March 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20110606/CL14193LOGO)
Third Fiscal Quarter Financial Highlights (Quarter Ended March 31, 2013)
- Total revenues increased 2.9% to $72.8 million in the third fiscal quarter of 2013 from $70.7 million for the comparable prior year period.
- Net income attributable to common shareholders was $882,000, or $0.03 per basic and $0.02 per diluted share, for the third fiscal quarter of 2013, compared to a net loss attributable to common shareholders of $75,000, or $0.00 per basic and diluted share, for the comparable prior year period.
- Adjusted net income attributable to common shareholders was $1,531,000, or $0.05 per basic and $0.04 per diluted share, for the third fiscal quarter of 2013, compared to adjusted net income attributable to common shareholders of $990,000, or $0.03 per basic and diluted share, for the comparable prior year period. Both periods are calculated by applying a normalized tax rate of 38% and excluding other items not considered part of regular operating activities.
- Adjusted EBITDA was $2,909,000 for the third fiscal quarter of 2013, compared to adjusted EBITDA in the prior year comparable period of $1,608,000.
CEO Comments
"We are very pleased with our overall financial performance in what is generally recognized as a tough market environment," said Bohn Crain, Chairman and CEO. "We reported Adjusted EBITDA of $2.9 million for the quarter ended March 31, 2013, up $1.3 million and 80.9% over the comparable prior year period. As importantly, we also made significant progress in leveraging our scalable back-office infrastructure to drive margin expansion. For the quarter ended March 31, 2013, our Adjusted EBITDA expressed as a function of net revenues increased 560 basis points, up from 7.9% to 13.5% for the comparable prior year period. Our ability to leverage our personnel and general administrative costs as a function of our net revenues is what really allows us to drive profitable growth in our non-asset based business model and we are very excited about these trends as we continue to execute our growth strategy."
Crain continued: "Growing our net revenue dollars through a combination of organic and acquisition initiatives is obviously also an important growth driver to the business. Historically, our growth has principally come through the expansion of our network footprint by the on-boarding of new agent locations (new store growth) and completing a number of strategic acquisitions. Same store growth, on the other hand has trended more closely with the overall economic environment and the shipping preferences of the end customers that we serve. This general dynamic is reflected in our net revenue growth for the quarter ended March 31, 2013 up a modest $1.3 million and 6.3% over the comparable prior year period."
"While on-boarding new agent locations and acquisitions remain important drivers in our business model, we are also progressing several new initiatives intended to accelerate organic growth in the base business. This is taking the form of both internal and external growth opportunities. As we have previously discussed, we believe there is an opportunity to improve the margins on our existing business by internalizing work that we have traditionally outsourced to third parties: truck brokerage and customs house brokerage. Traditionally, we spend millions of dollars each year with unaffiliated truck brokers. To capture some of this business we have recently launched Radiant Transportation Services as our own truck brokerage operation to act as our own captive provider of transportation capacity back to our forwarding network. Through this initiative we believe we can improve our overall cost structure and provide better service to our network partners and the end customers that we serve. Similarly, we recently received our approval to provide remote location filing ("RLF") services as a licensed customs brokerage. This will allow us to provide customs brokerage services back to the forwarding network and enhance the margin characteristics of our import business. Finally, we are beginning to build out a more robust sales organization which we believe will make a meaningful impact in the growth in support of both our Company-owned and independent agent offices."
Crain concluded: "We are providing guidance for the upcoming quarter ending June 30, 2013 with adjusted EBITDA in the range of $2.6 - $3.1 million on approximately $75.0-$80.0 million in revenues which equates to adjusted net income in the range of $1.3 - $1.6 million, or $0.03 - $0.04 per diluted share. We would also like to remind investors that our free cashflow 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. As we have previously discussed, we believe our stock continues to trade at a significant discount to our competitors and represents a great value for investors."
Third Fiscal Quarter ended March 31, 2013 – Financial Results
For the three months ended December 31, 2012, Radiant reported net income attributable to common shareholders of $882,000 on $72.8 million of revenues, or $0.03 per basic and $0.02 per fully diluted share, including a gain of $675,000 in change in contingent consideration. For the three months ended March 31, 2012, Radiant reported a net loss attributable to common shareholders of $75,000 on $70.7 million of revenues, or $0.00 per basic and fully diluted share.
For the three months ended March 31, 2013, Radiant reported adjusted net income attributable to common shareholders of $1,531,000, or $0.05 per basic and $0.04 per fully diluted share. For the three months ended March 31, 2012, Radiant reported adjusted net income attributable to common shareholders of $990,000, or $0.03 per basic and per fully diluted share.
The Company also reported adjusted EBITDA of $2,909,000 for the three months ended March 31, 2013, compared to adjusted EBITDA of $1,608,000 for the three months ended March 31, 2012.
Nine Months ended March 31, 2013 – Financial Results
For the nine months ended March 31, 2013, Radiant reported net income attributable to common shareholders of $1,306,000 on $230.1 million of revenues, or $0.04 per basic and fully diluted share, including a gain $368,000 in connection with the DBA arbitration, gain of $950,000 of change in contingent consideration and a loss of $1,439,000 associated with the lease termination for redundant facilities in Los Angeles. For the nine months ended March 31, 2012, Radiant reported net income of $998,000 on $215.2 million of revenues, or $0.03 per basic and fully diluted share.
For the nine months ended March 31, 2013, Radiant reported adjusted net income attributable to common shareholders of $3,825,000, or $0.12 per basic and $0.11 per fully diluted share. For the nine months ended March 31, 2012, Radiant reported adjusted net income attributable to common shareholders of $3,483,000, or $0.11 per basic and $0.10 per fully diluted share.
The Company also reported adjusted EBITDA, of $7,449,000 for the nine months ended March 31, 2013, compared to adjusted EBITDA of $5,188,000 for the comparable prior year period.
A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for both the three and nine month periods ending March 31, 2012 appears at the end of this release.
Network Expansion – New Agent Stations
In April of 2013, the Company announced further organic expansion of its network with new operations in Los Angeles, California operating under the Airgroup brand.
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, to the most directly comparable GAAP measure is as follows:
(in thousands, except for earnings per share)
Outlook Fiscal Quarter Ending June 30, 2013 |
||||
Net income |
$625 - $932 |
|||
Net income per common share Basic |
$0.02 - $0.03 |
|||
Diluted |
$0.02 - $0.03 |
|||
Weighted average shares outstanding: |
||||
Basic shares |
33,100,000 |
|||
Diluted shares |
35,800,000 |
|||
Reconciliation of net income to adjusted net income: |
||||
Net income |
$625 - $932 |
|||
Adjustments to net income: |
||||
Income tax expense (benefit) |
375 – 568 |
|||
Depreciation and amortization |
925 |
|||
Non-recurring legal costs |
75 |
|||
Amortization of loan fees and original issue discount |
75 |
|||
Adjusted net income before taxes |
$2,075 - $2,575 |
|||
Provision for income taxes at 38% |
789 – 978 |
|||
Adjusted net income |
$1,286 - $1,597 |
|||
Adjusted net income per common share: |
||||
Basic |
$0.04 - $0.05 |
|||
Diluted |
$0.03 - $0.04 |
|||
Reconciliation of net income to adjusted EBITDA: |
Outlook Fiscal Quarter Ending June 30, 2013 |
|||
Net income |
$625 - $932 |
|||
Adjustments to net income: |
||||
Income tax expense |
375 – 568 |
|||
Depreciation and amortization |
925 |
|||
Net interest expense |
500 |
|||
EBITDA |
$2,425 - $2,925 |
|||
Share-based compensation |
100 |
|||
Non-recurring legal costs |
75 |
|||
Adjusted EBITDA |
$2,600 - $3,100 |
|||
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 Wednesday, May 15, 2013 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 account number 286 and conference ID number 413842.
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics company providing domestic and international freight forwarding and fulfillment services through a network of company-owned and independent agent offices across North America. The company operates under the Radiant, Airgroup, Adcom, and Distribution By Air brands servicing 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, 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 |
|||||||
(unaudited) |
|||||||
MARCH 31, |
JUNE 30, |
||||||
2013 |
2012 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
1,309,627 |
$ |
66,888 |
|||
Accounts receivable, net of allowance of $1,483,639 and $1,311,670, respectively |
46,858,964 |
51,939,016 |
|||||
Current portion of employee and other receivables |
320,695 |
201,451 |
|||||
Income tax deposit |
- |
11,248 |
|||||
Prepaid expenses and other current assets |
2,019,148 |
2,573,531 |
|||||
Deferred tax asset |
998,894 |
684,231 |
|||||
Total current assets |
51,507,328 |
55,476,365 |
|||||
Furniture and equipment, net |
1,419,643 |
1,735,157 |
|||||
Acquired intangibles, net |
9,958,267 |
11,722,812 |
|||||
Goodwill |
15,924,138 |
14,951,217 |
|||||
Employee and other receivables, net of current portion |
112,963 |
162,088 |
|||||
Deposits and other assets |
322,499 |
422,500 |
|||||
Deferred tax asset |
186,380 |
33,259 |
|||||
Total long term assets |
26,504,247 |
27,291,876 |
|||||
Total assets |
$ |
79,431,218 |
$ |
84,503,398 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued transportation costs |
$ |
32,986,525 |
$ |
39,702,020 |
|||
Commissions payable |
5,701,747 |
4,633,880 |
|||||
Other accrued costs |
2,161,010 |
2,041,596 |
|||||
Income taxes payable |
115,531 |
- |
|||||
Current portion of notes payable to former shareholders of DBA |
767,092 |
767,092 |
|||||
Amounts due to former shareholders of acquired operations |
- |
2,664,224 |
|||||
Current portion of lease termination liability |
441,464 |
- |
|||||
Current portion of contingent consideration |
513,000 |
- |
|||||
Other current liabilities |
- |
64,392 |
|||||
Total current liabilities |
42,686,369 |
49,873,204 |
|||||
Notes payable and other long-term debt, net of current portion and debt discount |
16,680,626 |
16,257,695 |
|||||
Contingent consideration, net of current portion |
5,387,000 |
6,200,000 |
|||||
Lease termination liability, net of current portion |
574,516 |
- |
|||||
Deferred rent liability |
586,658 |
680,521 |
|||||
Other long term liabilities |
36,318 |
89,887 |
|||||
Total long term liabilities |
23,265,118 |
23,228,103 |
|||||
Total liabilities |
65,951,487 |
73,101,307 |
RADIANT LOGISTICS, INC. |
|||||||
Consolidated Balance Sheets (continued) |
|||||||
(unaudited) |
|||||||
MARCH 31, |
JUNE 30, |
||||||
2013 |
2012 |
||||||
Stockholders' equity: |
|||||||
Radiant Logistics, Inc. stockholders' equity: |
|||||||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares |
- |
- |
|||||
Common stock, $0.001 par value, 100,000,000 and 50,000,000 shares authorized, |
14,803 |
14,481 |
|||||
Additional paid-in capital |
13,810,824 |
13,003,987 |
|||||
Deferred compensation |
(15,512) |
- |
|||||
Retained deficit |
(408,185) |
(1,713,928) |
|||||
Total Radiant Logistics, Inc. stockholders' equity |
13,401,930 |
11,304,540 |
|||||
Non-controlling interest |
77,801 |
97,551 |
|||||
Total stockholders' equity |
13,479,731 |
11,402,091 |
|||||
Total liabilities and stockholders' equity |
$ |
79,431,218 |
$ |
84,503,398 |
RADIANT LOGISTICS, INC. |
||||||||||||||
Consolidated Statements of Operations |
||||||||||||||
(unaudited) |
||||||||||||||
THREE MONTHS ENDED MARCH 31, |
NINE MONTHS ENDED MARCH 31, |
|||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||
Revenue |
$ |
72,790,313 |
$ |
70,748,655 |
$ |
230,116,528 |
$ |
215,195,428 |
||||||
Cost of transportation |
51,183,245 |
50,431,819 |
164,745,770 |
153,391,091 |
||||||||||
Net revenues |
21,607,068 |
20,316,836 |
65,370,758 |
61,804,337 |
||||||||||
Agent commissions |
12,478,403 |
12,260,147 |
38,957,449 |
38,904,913 |
||||||||||
Personnel costs |
4,215,425 |
3,354,376 |
11,818,672 |
9,326,395 |
||||||||||
Selling, general and administrative expenses |
2,115,736 |
3,021,965 |
7,542,206 |
8,115,196 |
||||||||||
Depreciation and amortization |
931,974 |
1,030,139 |
3,067,145 |
2,020,445 |
||||||||||
Transition and lease termination costs |
- |
331,095 |
1,544,454 |
893,474 |
||||||||||
Change in contingent consideration |
(675,000) |
20,000 |
(950,000) |
20,000 |
||||||||||
Total operating expenses |
19,066,538 |
20,017,722 |
61,979,926 |
59,280,423 |
||||||||||
Income from operations |
2,540,530 |
299,114 |
3,390,832 |
2,523,914 |
||||||||||
Other income (expense): |
||||||||||||||
Interest income |
3,547 |
4,962 |
12,679 |
14,960 |
||||||||||
Interest expense |
(492,414) |
(473,677) |
(1,500,435) |
(777,034) |
||||||||||
Gain on litigation settlement, net |
- |
- |
368,162 |
- |
||||||||||
Other |
26,292 |
97,222 |
238,030 |
217,182 |
||||||||||
Total other expense |
(462,575) |
(371,493) |
(881,564) |
(544,892) |
||||||||||
Income (loss) before income tax expense |
2,077,955 |
(72,379) |
2,509,268 |
1,979,022 |
||||||||||
Income tax benefit (expense) |
(1,166,927) |
45,732 |
(1,109,275) |
(843,703) |
||||||||||
Net income (loss) |
911,028 |
(26,647) |
1,399,993 |
1,135,319 |
||||||||||
Less: Net income attributable to non-controlling interest |
(29,218) |
(47,970) |
(94,250) |
(137,412) |
||||||||||
Net income (loss) attributable to Radiant Logistics, Inc. |
$ |
881,810 |
$ |
(74,617) |
$ |
1,305,743 |
$ |
997,907 |
||||||
Net income per common share – basic |
$ |
.03 |
$ |
.00 |
$ |
.04 |
$ |
.03 |
||||||
Net income per common share – diluted |
$ |
.02 |
$ |
.00 |
$ |
.04 |
$ |
.03 |
||||||
Weighted average shares outstanding: |
||||||||||||||
Basic shares |
33,091,774 |
32,493,001 |
33,048,832 |
32,039,823 |
||||||||||
35,748,483 |
32,493,001 |
35,580,702 |
34,954,441 |
|||||||||||
RADIANT LOGISTICS, INC.
Reconciliation of Net Income (Loss) 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 38% tax rate for calculating the provision for income taxes 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, unusual legal and claims settlement as well as depreciation and amortization and certain other non-cash charges.
Adjusted EBITDA means earnings before interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration stock-based compensation, acquisition, severance and lease termination costs and other non-cash charges consistent with the financial covenants of our senior credit facility. 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. Adjusted EBITDA is also used by our creditors in assessing debt covenant compliance. 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 MARCH 31, |
NINE MONTHS ENDED MARCH 31, |
|||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||
Net income (loss) |
$ |
881,810 |
$ |
(74,617) |
$ |
1,305,743 |
$ |
997,907 |
||||||
Net income (loss) per common share – basic |
$ |
.03 |
$ |
.00 |
$ |
.04 |
$ |
.03 |
||||||
Net income (loss) per common share – diluted |
$ |
.02 |
$ |
.00 |
$ |
.04 |
$ |
.03 |
||||||
Weighted average shares outstanding: |
||||||||||||||
Basic shares |
33,091,774 |
32,493,001 |
33,048,832 |
32,039,823 |
||||||||||
Diluted shares |
35,748,483 |
32,493,001 |
35,580,702 |
34,954,441 |
||||||||||
Reconciliation of net income (loss) to adjusted net |
||||||||||||||
Net income (loss) |
$ |
881,810 |
$ |
(74,617) |
$ |
1,305,743 |
$ |
997,907 |
||||||
Adjustments to net income (loss): |
||||||||||||||
Income tax expense (benefit) |
1,166,927 |
(45,732) |
1,109,275 |
843,703 |
||||||||||
Depreciation and amortization |
931,974 |
1,030,139 |
3,067,145 |
2,020,445 |
||||||||||
Change in contingent consideration |
(675,000) |
20,000 |
(950,000) |
20,000 |
||||||||||
Gain on litigation settlement, net |
- |
- |
(368,162) |
- |
||||||||||
Lease termination costs |
- |
- |
1,439,018 |
- |
||||||||||
Acquisition related costs |
13,606 |
140,549 |
52,943 |
409,308 |
||||||||||
Severance and transition costs associated with acquisitions |
- |
331,095 |
105,436 |
893,474 |
||||||||||
Non-recurring legal costs |
78,577 |
133,935 |
201,990 |
353,092 |
||||||||||
Amortization of loan fees and original issue discount |
71,554 |
61,094 |
206,289 |
80,455 |
||||||||||
Adjusted net income before taxes |
2,469,448 |
1,596,463 |
6,169,677 |
5,618,384 |
||||||||||
Provision for income taxes at 38% |
(938,390) |
(606,656) |
(2,344,477) |
(2,134,986) |
||||||||||
Adjusted net income |
$ |
1,531,058 |
$ |
989,807 |
$ |
3,825,200 |
$ |
3,483,398 |
||||||
Adjusted net income per common share: |
||||||||||||||
Basic |
$ |
.05 |
$ |
.03 |
$ |
.12 |
$ |
.11 |
||||||
Diluted |
$ |
.04 |
$ |
.03 |
$ |
.11 |
$ |
.10 |
||||||
THREE MONTHS ENDED MARCH 31, |
NINE MONTHS ENDED MARCH 31, |
|||||||||||||
Reconciliation of net income (loss) to adjusted |
2013 |
2012 |
2013 |
2012 |
||||||||||
Net income (loss) |
$ |
881,810 |
$ |
(74,617) |
$ |
1,305,743 |
$ |
997,907 |
||||||
Adjustments to net income: |
||||||||||||||
Income tax expense (benefit) |
1,166,927 |
(45,732) |
1,109,275 |
843,703 |
||||||||||
Depreciation and amortization |
931,974 |
1,030,139 |
3,067,145 |
2,020,445 |
||||||||||
Net interest expense |
488,867 |
468,715 |
1,487,756 |
762,074 |
||||||||||
EBITDA |
3,469,578 |
1,378,505 |
6,969,919 |
4,624,129 |
||||||||||
Share-based compensation |
101,014 |
68,682 |
305,758 |
134,091 |
||||||||||
Change in contingent consideration |
(675,000) |
20,000 |
(950,000) |
20,000 |
||||||||||
Gain on litigation settlement, net |
- |
- |
(368,162) |
- |
||||||||||
Lease termination costs |
- |
- |
1,439,018 |
- |
||||||||||
Acquisition related costs |
13,606 |
140,549 |
52,943 |
409,308 |
||||||||||
Adjusted EBITDA |
$ |
2,909,198 |
$ |
1,607,736 |
$ |
7,449,476 |
$ |
5,187,528 |
||||||
SOURCE Radiant Logistics, Inc.
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