Radiant Logistics Announces Results For Third Fiscal Quarter Ended March 31, 2013 Reports Adjusted EBITDA of $2.9 Million - Up $1.3 Million and 80.9%; Margin Expansion with Adjusted EBITDA as a Percentage of Net Revenues Up 560bps at 13.5%

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.

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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   
             issued or outstanding


-




-


Common stock, $0.001 par value, 100,000,000 and 50,000,000 shares authorized,
            32,348,166 and 33,025,865 shares issued and outstanding, respectively


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
income:













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
EBITDA:

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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