Radiant Logistics Announces Results for the Fiscal Third Quarter Ended March 31, 2010

BELLEVUE, Wash., May 17 /PRNewswire-FirstCall/ -- Radiant Logistics, Inc. (OTC Bulletin Board: RLGT), a domestic and international freight forwarding and logistics services company, today reported financial results for the three and nine months ended March 31, 2010.

For the three months ended March 31, 2010, Radiant reported net income of $449,000 on $32.9 million of revenues, or $0.01 per basic and fully diluted share, including a $395,000 benefit resulting from a refund of state business and occupancy taxes.  For the three months ended March 31, 2009, Radiant reported net income of $293,000 on $29.7 million of revenues, or $0.01 per basic and fully diluted share, including a $190,000 gain on early extinguishment of debt.  

For the nine months ended March 31, 2010, Radiant reported net income of $1,114,000 on $106.0 million of revenues, or $0.03 per basic and fully diluted share, including a $395,000 benefit resulting from a refund of state business and occupancy taxes and a $355,000 gain on litigation settlement.  For the nine months ended March 31, 2009, Radiant reported a net loss of $9,672,000 on $104.6 million of revenues, or $0.28 per basic and fully diluted share, including a non-cash charge of $11.4 million for impairment of goodwill.  

In March of 2010, the Company recognized a benefit of $395,000 resulting from a refund of overpayments made to the State of Washington in connection with business and occupancy taxes.

In December 2009, the Company recorded a gain of $355,000 in connection with the favorable settlement of a dispute with the former owner of Adcom Worldwide related to the calculation and payment of working capital and certain related post closing items.

In December 2008, the Company recorded a non-cash charge of $11.4 million for impairment of goodwill. The goodwill charge was a result of the material decline in the market value of the Company's equity during the fourth quarter of 2008.  The non-cash charge has not had any impact on its financial condition or affected the financial covenants of the Company's credit facility.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding the non-recurring items, of $1,065,000 for the three months ended March 31, 2010, compared to adjusted EBITDA of $758,000 for the comparable prior year period.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding the non-recurring items, of $2,815,000 for the nine months ended March 31, 2010 compared to adjusted EBITDA of $2,934,000 for the comparable prior year period. A reconciliation of our adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.

The Company has also provided additional prior period analysis using pro forma results of operations presented as if Radiant had acquired Adcom as of July 1, 2008 which is included in the Company's Form 10-Q for the quarter ended March 31, 2010 and filed May 17, 2010.

"We remain very pleased with our continued revenue growth and our improved profitability in what continues to be a tough market," said Bohn Crain, Chairman and CEO. "For the quarter ended March 31, 2010, our revenues increased 10.6% to $32.9 million as compared to $29.7 million for the comparable prior year period.  Net transportation revenues, however, decreased 3.8% to $10.3 million as compared to $10.7 million for the comparable prior year period.  The margin regression was attributed to proportionately higher international sales, which typically yield lower margins, coupled with pricing pressures from competitors. Ultimately, it was the cost synergies available to us through the Adcom acquisition that have enabled us to continue to expand our earnings. As the economy continues to recover, we believe that the scalable nature of our business model will translate into further improvement in profitability."

Mr. Crain continued, "Also included in this quarter's results is a nonrecurring benefit of $395,000 associated with a refund of business and occupancy taxes paid to the State of Washington as it was concluded that only our intra state services were subject to the tax."

Crain concluded, "As we look forward to the balance of our fiscal year ending June 30, 2010, we are beginning to see some signs of improvement although margin pressures persist. For the fiscal year ending June 30, 2010, we are updating our prior guidance and expect to generate approximately $3.8 million in adjusted EBITDA on $142 million in annual revenues.  Looking forward, our strategy remains unchanged. From our current platform, we believe profitable growth can be best achieved by continuing to bring value to the agent-based forwarder community and continuing to execute our three-prong strategy of first, providing continuous improvement to our existing network participants in terms of technology, buy rates and enhanced service offerings; second, building upon the success of our organic growth initiative by on-boarding additional agent stations; and third, opportunistically pursuing acquisition opportunities, including strategic opportunities within the community of agent-based forwarders."

Supplemental Pro Forma Information

We believe that supplemental disclosure of our adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for stock-based compensation, goodwill impairment and other non-cash costs is a useful measure for investors because it eliminates the effect of certain non-cash costs and provides an important metric for our business.  Adjusted EBITDA is a non-GAAP measure of income.  A reconciliation of adjusted EBITDA amounts to Net income, the most directly comparable GAAP measure, for the three and nine months ended March 31, 2010 and 2009 is shown below:

This supplemental pro forma financial information is presented for informational purposes only and is not a substitute for the historical financial information presented in accordance with accounting principles generally accepted in the United States. A reconciliation of adjusted EBITDA amounts to net income, the most directly comparable GAAP measure, for the fiscal year ending June 30, 2010 is shown below:

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Tuesday May 18, 2010 at 4:00 pm, ET to discuss the contents of the 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 350412. The call will also be webcast and may be accessed via Radiant's web site at www.radiant-logistics.com or through www.InvestorCalendar.com.

About Radiant Logistics (OTC Bulletin Board: RLGT)

Radiant Logistics (www.radiant-logistics.com) is a non-asset based logistics company providing domestic and international freight forwarding and related services through a network of approximately 70 company owned and exclusive agent offices across North America. Operating under the Airgroup, Adcom Worldwide and Radiant Logistics brands, the company services a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world. For more information about Radiant Logistics, please contact Bohn Crain at (425) 943-4599.  

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, our ability to: use Airgroup as a "platform" upon which we can build a profitable global transportation and supply chain management company; retain and build upon the relationships we have with our exclusive agency offices; continue the development of our back office infrastructure and transportation and accounting systems in a manner sufficient to service our expanding revenues and base of exclusive agency locations; maintain the future operations of Adcom in a manner consistent with its past practices, integrate the operations of Adcom with our existing operations, continue growing our business and maintain historical or increased gross profit margins; locate suitable acquisition opportunities; secure the financing necessary to complete any acquisition opportunities we locate; assess and respond to competitive practices in the industries in which we compete, mitigate, to the best extent possible, our dependence on current management and certain of our larger exclusive agency locations; assess and respond to the impact of current and future laws and governmental regulations affecting the transportation industry in general and our operations in particular; as well as those risk factors disclosed in Item 1A of  our Report on Form 10-K for the year ended June 30, 2009 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiant-logistics.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.

The accompanying notes form an integral part of these condensed consolidated financial statements.

SOURCE Radiant Logistics, Inc.