Radiant Posts 45% Growth With Adjusted EBITDA of $1,540,000 for the Fiscal Third Quarter Ended March 31, 2011

BELLEVUE, Wash., May 16, 2011 /PRNewswire/ -- Radiant Logistics, Inc. (OTC QB: RLGT), a domestic and international freight forwarding and logistics services company, today reported financial results for the three and nine months ended March 31, 2011.

For the three months ended March 31, 2011, Radiant reported net income of $771,000 on $42.0 million of revenues, or $0.03 per basic and $0.02 per fully diluted share.  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 nine months ended March 31, 2011, Radiant reported net income of $2,270,000 on $132.9 million of revenues, or $0.07 per basic and fully diluted share, including a charge on litigation settlement of $150,000.  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.  

In December of 2010, the Company recorded a charge of $150,000 in connection with the settlement of a dispute with one of its competitors related to the 2007 departure of the competitor's then Chicago operation. By agreement among the parties, without admission of any wrong doing on the part of the Company and with affirmation of the parties' right to freely compete in the marketplace, the Company agreed to make a $150,000 donation to a mutually agreeable IRC 503(c) charitable organization.  Neither the Company nor its competitor received any payment in connection with the settlement.

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.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding non-recurring items and non-cash share-based compensation, of $1,540,000 for the three months ended March 31, 2011, compared to adjusted EBITDA of $1,065,000 for the comparable prior year period.

The Company also reported adjusted EBITDA, excluding non-recurring items and non-cash share-based compensation, of $4,921,000 for the nine months ended March 31, 2011 compared to adjusted EBITDA of $2,815,000 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.

"We remain very pleased with the continuing positive trend in our overall operating results," said Bohn Crain, Chairman and CEO. "For the quarter ended March 31, 2011, our revenues increased 27.9% to $42.0 million as compared to $32.9 million for the comparable prior year period.  Net transportation revenues also increased 26.0% to $13.0 million as compared to $10.3 million for the comparable prior year period.  This improvement was a direct result of the improving economy and resurgence of our domestic and international transportation services.  Our personnel and general administrative costs when measured as a function of our net revenues also continue to reflect a positive trend surrounding our controllable costs. As a percentage of net revenues, our personnel costs decreased from 14.0% to 12.1%. Our selling, general and administrative costs (after giving effect for the non-recurring $395,000 business and occupancy tax refund we received in the comparable prior year period), as a percentage of net revenues, decreased from 10.0% to 8.0%. We remain encouraged by these trends, the leverage of our scalable non-asset based business model and the anticipated margin expansion available to us as we continue to execute our growth strategy."

Crain concluded, "As we look forward to the balance of our fiscal year ending June 30, 2011, we are updating our prior guidance and expect to generate approximately $6.75 million in adjusted EBITDA on $200.0 million in annual revenues.  At this point we are now focusing on the integration of our recent acquisition of Distribution By Air ("DBA") and what we can expect for our upcoming fiscal year commencing July 1, 2011 and ending June 30, 2012. We have already made significant progress in migrating DBA's largest offices to the Radiant operating platform and are on track to have fully transitioned all the DBA locations by June 1, 2011. The fact that we are on pace to transition DBA's approximately $90.0 million of business to our platform in under 60 days from the original closing of the transaction is a real testament to the quality of the people at DBA and the strength of the people, process and technology we have in place at Radiant to support our growth. We are reaffirming our guidance for our fiscal year ending June 30, 2012, of $9.0 million in adjusted EBITDA on $285.0 million in annual revenues. On a run-rate basis, we are projecting $10.0 million in adjusted EBITDA for our fiscal year ending June 30, 2012 because of approximately $1.0 million in non-recurring labor costs we will incur through December 31, 2011 as we wind-down the legacy back-office operation in DBA in Somerset, New Jersey. This guidance is before considering the impact of any further acquisition opportunities that we may complete over the course of fiscal 2012. On the acquisition front, we continue to opportunistically pursue acquisition opportunities and through this process we have identified and are in conversations with a select number of potential partners that could further complement our platform.  I look forward to updating you on our progress in the coming months as these opportunities continue to develop."

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, 2011 and 2010 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, 2011 is shown below:

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Monday, May 16, 2011 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 366738.

About Radiant Logistics (OTC QB: RLGT)

Radiant Logistics (www.radiantdelivers.com) is a non-asset based third-party transportation & logistics provider with complete global reach, as well as one of the largest and fastest growing networks in North America.  The company delivers world-class transportation, logistics and information solutions to its customers, as well as growth, liquidity, and ongoing support for its strategic operating partners.  Operating a network of over 100 company-owned and exclusive agent offices under the Airgroup, Adcom Worldwide, Distribution By Air and Radiant brands, the company services a diversified account base that includes manufacturers, distributors and government agencies, 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 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 our current infrastructure 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; 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, 2010 other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiantdelivers.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.

SOURCE Radiant Logistics, Inc.