0000950170-23-047928.txt : 20230913 0000950170-23-047928.hdr.sgml : 20230913 20230913161021 ACCESSION NUMBER: 0000950170-23-047928 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20230913 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20230913 DATE AS OF CHANGE: 20230913 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RADIANT LOGISTICS, INC CENTRAL INDEX KEY: 0001171155 STANDARD INDUSTRIAL CLASSIFICATION: ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731] IRS NUMBER: 043625550 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35392 FILM NUMBER: 231252809 BUSINESS ADDRESS: STREET 1: 700 S RENTON VILLAGE PLACE STREET 2: SEVENTH FLOOR CITY: RENTON STATE: WA ZIP: 98057 BUSINESS PHONE: 425-462-1094 MAIL ADDRESS: STREET 1: 700 S RENTON VILLAGE PLACE STREET 2: SEVENTH FLOOR CITY: RENTON STATE: WA ZIP: 98057 FORMER COMPANY: FORMER CONFORMED NAME: GOLF TWO INC DATE OF NAME CHANGE: 20020415 8-K 1 rlgt-20230913.htm 8-K 8-K
0001171155false00011711552023-09-132023-09-13

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 13, 2023

 

 

RADIANT LOGISTICS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-35392

04-3625550

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

Triton Towers Two

Seventh Floor

700 S. Renton Village Place

 

 

Renton, Washington

 

98057

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 425 462-1094

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, $0.001 Par Value

 

RLGT

 

NYSE American LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On September 13, 2023, Radiant Logistics, Inc. (the “Company”) issued a press release announcing its financial results for the three and twelve months ended June 30, 2023. A copy of the press release, dated September 13, 2023, is furnished as Exhibit 99.1 to this Current Report on Form 8‑K.

The attached press release contains information that includes the following non-GAAP financial measures as defined in Regulation G adopted by the Securities and Exchange Commission: adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin. The Company’s management believes that presenting such non-GAAP financial measures provides useful information to investors regarding the underlying business trends and performance of the Company’s ongoing operations. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company’s consolidated financial statements in their entirety and to not rely on any single financial measure. A table providing a reconciliation of Non-GAAP financial measures to the most directly comparable GAAP financial measures is included within the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Item 2.02 of this Current Report, including Exhibit 99.1 is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information in this Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

No.

Description

 

 

 

99.1

Press Release, dated September 13, 2023, announcing financial results for the fourth fiscal quarter and year ended June 30, 2023.

 

 

 

104

 

Cover Page Interactive Data (embedded within the Inline XBRL document)

 

 

 

 

 

 


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Radiant Logistics, Inc.

 

 

 

 

Date: September 13, 2023

By:

/s/ Todd Macomber

Todd Macomber

Senior Vice President and Chief Financial Officer

 


EX-99.1 2 rlgt-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img185176670_0.jpg 

RADIANT LOGISTICS ANNOUNCES RESULTS FOR

THE FOURTH fiscal quarter AND YEAR ENDED June 30, 2023

Company successfully navigates the slower freight environment.

Generated a record $97.9 million in cash from operations for FYE June 30, 2023;

Debt free and well positioned for future growth.

RENTON, WA September 13, 2023 – Radiant Logistics, Inc. (NYSE American: RLGT), a technology-enabled global transportation and value-added logistics services company, today reported financial results for the three and twelve months ended June 30, 2023.

Financial Highlights – Year Ended June 30, 2023

Revenues decreased to $1,085.5 million for the fiscal year ended June 30, 2023, down $373.9 million or 25.6%, compared to revenues of $1,459.4 million for the comparable prior year period.
Gross profit decreased to $270.9 million for the fiscal year ended June 30, 2023, down $22.6 million or 7.7%, compared to gross profit of $293.5 million for the comparable prior year period.
Adjusted gross profit, a non-GAAP financial measure, decreased to $283.8 million for the fiscal year ended June 30, 2023, down $22.5 million or 7.3%, compared to adjusted gross profit of $306.3 million for the comparable prior year period.
Net income attributable to Radiant Logistics, Inc. decreased to $20.6 million, or $0.43 per basic and $0.42 per fully diluted share for the fiscal year ended June 30, 2023, down $23.9 million or 53.7%, compared to $44.5 million, or $0.90 per basic and $0.88 per fully diluted share for the comparable prior year period.
Adjusted net income, a non-GAAP financial measure, decreased to $39.3 million, or $0.82 per basic and $0.79 per fully diluted share for the fiscal year ended June 30, 2023, down $18.9 million or 32.5%, compared to adjusted net income of $58.2 million, or $1.18 per basic and $1.15 per fully diluted share for the comparable prior year period. Adjusted net income is calculated by applying a normalized tax rate of 24.5% and excluding other items not considered part of regular operating activities.
Adjusted EBITDA, a non-GAAP financial measure, decreased to $55.6 million for the fiscal year ended June 30, 2023, down $25.3 million or 31.3%, compared to adjusted EBITDA of $80.9 million for the comparable prior year period.
Adjusted EBITDA margin (adjusted EBITDA expressed as a percentage of adjusted gross profit), a non-GAAP financial measure, decreased to 19.6% or 680 basis points, for the fiscal year ended June 30, 2023, compared to adjusted EBITDA margin of 26.4% for the comparable prior year period.

Stock Buy-Back

We purchased 1,784,249 shares of our common stock at an average cost of $6.20 per share for an aggregate cost of $11.1 million during the fiscal year ended June 30, 2023.

As of June 30, 2023, the Company had 47,294,529 shares outstanding.

CEO Bohn Crain Comments on Results

“Our results for the quarter and year ended June 30, 2023 continue to reflect the macro-economic effects of the difficult freight markets on the entire industry as well as our operations.” said Bohn Crain, Founder and CEO of Radiant Logistics. “The confluence of shippers continuing to manage through elevated inventories, reduced imports and slowing economic growth, has had a cascading effect across virtually every mode of transportation. As in the prior quarter, these market conditions have negatively impacted not only our current results, but also the year-over-year comparison to our record results for prior year period. With that said, we believe we are at or near the bottom of this cycle and would expect markets to begin to find their way to more sustainable and normalized levels in coming quarters.”

1


 

Mr. Crain continued, “Notwithstanding the tough year over year comparisons, we are very proud to report that we generated a record $97.9 million in cash from operations for our fiscal year ended June 30, 2023. During this same period, we have remained relatively quiet on the acquisition front and have instead focused our attention on paying down debt and deploying just over $11.1 million to repurchase our stock. Through this disciplined approach to capital allocation, I am happy to report that we are in the strongest financial position in the Company’s history and, as of June 30, 2023, we have approximately $32.5 million of cash on hand and nothing drawn on our $200.0 million credit facility.

Having fortified our balance sheet, we believe we are well positioned to navigate through these slower freight markets as we find our way back to more normalized market conditions. At the same time, we believe our patience and discipline may be rewarded as market conditions become more conducive to our acquisition strategy and we have ample “dry powder” to become more active on the acquisition front should the opportunity present itself. Looking ahead, we will remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully re-levering our balance sheet through a combination of agent station conversions, synergistic tuck‑in acquisitions, and stock buy‑backs. Through this approach we will continue to scale our business, leveraging our best‑in‑class technology and extensive global network, which we believe, over time, will continue to deliver meaningful value for our shareholders, operating partners, and the end customers that we serve.”

Fourth Fiscal Quarter Ended June 30, 2023 – Financial Results

For the three months ended June 30, 2023, Radiant reported net income attributable to Radiant Logistics, Inc. of $3.1 million on $232.2 million of revenues, or $0.07 per basic and $0.06 per fully diluted share. For the three months ended June 30, 2022, Radiant reported net income attributable to Radiant Logistics, Inc. of $16.7 million on $382.9 million of revenues, or $0.34 per basic and $0.33 per fully diluted share.

For the three months ended June 30, 2023, Radiant reported adjusted net income, a non-GAAP financial measure, of $6.5 million, or $0.14 per basic and $0.13 per fully diluted share. For the three months ended June 30, 2022, Radiant reported adjusted net income of $19.2 million, or $0.39 per basic and $0.38 per fully diluted share.

For the three months ended June 30, 2023, Radiant reported adjusted EBITDA, a non-GAAP financial measure, of $9.2 million, compared to $26.4 million for the comparable prior year period.

Year Ended June 30, 2023 – Financial Results

For the fiscal year ended June 30, 2023, Radiant reported net income attributable to Radiant Logistics, Inc. of $20.6 million on $1,085.5 million of revenues, or $0.43 per basic and $0.42 per fully diluted share. For the fiscal year ended June 30, 2022, Radiant reported net income attributable to Radiant Logistics, Inc. of $44.5 million on $1,459.4 million of revenues, or $0.90 per basic and $0.88 per fully diluted share.

For the fiscal year ended June 30, 2023, Radiant reported adjusted net income, a non-GAAP financial measure, of $39.3 million, or $0.82 per basic and $0.79 per fully diluted share. For the fiscal year ended June 30, 2022, Radiant reported adjusted net income of $58.2 million, or $1.18 per basic and $1.15 per fully diluted share.

For the fiscal year ended June 30, 2023, Radiant reported adjusted EBITDA, a non-GAAP financial measure, of $55.6 million, compared to $80.9 million for the comparable prior year period.

2


 

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Wednesday, September 13, 2023 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, September 13, 2023 at 4:30 PM Eastern

DIAL-IN

US (888) 506-0062; Intl. (973) 528-0011 (Participant Access Code: 248203)

REPLAY

September 14, 2023 at 9:30 AM Eastern to September 27, 2023 at 4:30 PM Eastern, US (877) 481-4010;

Intl. (919) 882-2331 (Replay ID number: 49022)

Webcast Details

This call is also being webcast and may be accessed via Radiant’s web site at www.radiantdelivers.com or at https://www.webcaster4.com/Webcast/Page/2191/49022

 

3


 

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics solutions primarily to customers in the United States and Canada. Through its comprehensive service offerings, Radiant provides domestic and international freight forwarding and freight brokerage services to a diversified account base including manufacturers, distributors and retailers, which it supports from an extensive network of company and agent-owned offices throughout North America and other key markets around the world. Radiant’s value-added logistics services include warehouse and distribution, customs brokerage, order fulfillment, inventory management and technology services.

This report contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. 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. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this report. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; the impact of COVID-19 or any other health pandemic or environment event on our operations and financial results; continued disruptions in the global supply chain; higher inflationary pressures particularly surrounding the costs of fuel; labor and other components of our operations; potential adverse legal, reputational and financial effects on the Company resulting from the ransomware incident that we reported in December of 2021 or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents, like the ransomware incident; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our need to restate our financial statements; our longer-term relationship with our senior lenders as a consequence of our need to restate our financial statements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2024 certain material weaknesses in our internal controls over financial reporting, and such other factors that may be identified from time to time in our Securities and Exchange Commission (“SEC”) filings and other public announcements including those set forth under the caption “Risk Factors” in Part 1 Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2023. In addition, the global economic climate and additional or unforeseen effects from the COVID-19 pandemic or other unexpected health pandemics, may amplify many of these risks. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

Investor Contact:

Radiant Logistics, Inc.

Todd Macomber

(425) 943-4541

investors@radiantdelivers.com

Media Contact:

Radiant Logistics, Inc.

Jennifer Deenihan

(425) 462-1094

communications@radiantdelivers.com

 

 

 

 

 

 

 

4


 

RADIANT LOGISTICS, INC.

Consolidated Balance Sheets

 

 

June 30,

 

(In thousands, except share and per share data)

 

2023

 

 

2022

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

32,456

 

 

$

24,442

 

Accounts receivable, net of allowance of $2,776 and $2,983, respectively

 

 

126,725

 

 

 

225,259

 

Contract assets

 

 

6,180

 

 

 

22,387

 

Prepaid expenses and other current assets

 

 

15,211

 

 

 

17,256

 

Total current assets

 

 

180,572

 

 

 

289,344

 

 

 

 

 

 

 

 

Property, technology, and equipment, net

 

 

25,389

 

 

 

24,823

 

 

 

 

 

 

 

 

Goodwill

 

 

89,203

 

 

 

88,199

 

Intangible assets, net

 

 

36,641

 

 

 

48,545

 

Operating lease right-of-use assets

 

 

56,773

 

 

 

41,111

 

Deposits and other assets

 

 

5,163

 

 

 

5,329

 

Total other long-term assets

 

 

187,780

 

 

 

183,184

 

Total assets

 

$

393,741

 

 

$

497,351

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

84,561

 

 

$

137,853

 

Operating partner commissions payable

 

 

18,360

 

 

 

18,731

 

Accrued expenses

 

 

8,739

 

 

 

11,349

 

Income tax payable

 

 

369

 

 

 

4,035

 

Current portion of notes payable

 

 

4,107

 

 

 

4,575

 

Current portion of operating lease liabilities

 

 

11,273

 

 

 

7,641

 

Current portion of finance lease liabilities

 

 

620

 

 

 

577

 

Current portion of contingent consideration

 

 

3,886

 

 

 

2,600

 

Other current liabilities

 

 

258

 

 

 

303

 

Total current liabilities

 

 

132,173

 

 

 

187,664

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

 

 

 

66,719

 

Operating lease liabilities, net of current portion

 

 

52,120

 

 

 

37,776

 

Finance lease liabilities, net of current portion

 

 

1,121

 

 

 

1,223

 

Contingent consideration, net of current portion

 

 

287

 

 

 

2,930

 

Deferred tax liabilities

 

 

2,944

 

 

 

6,482

 

Total long-term liabilities

 

 

56,472

 

 

 

115,130

 

Total liabilities

 

 

188,645

 

 

 

302,794

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized; 51,603,386 and 51,265,543
    shares issued, and 47,294,529 and 48,740,935 shares outstanding, respectively

 

 

33

 

 

 

33

 

Additional paid-in capital

 

 

108,516

 

 

 

106,146

 

Treasury stock, at cost, 4,308,857 and 2,524,608 shares, respectively

 

 

(27,067

)

 

 

(16,004

)

Retained earnings

 

 

125,593

 

 

 

104,998

 

Accumulated other comprehensive loss

 

 

(2,205

)

 

 

(796

)

Total Radiant Logistics, Inc. stockholders’ equity

 

 

204,870

 

 

 

194,377

 

Non-controlling interest

 

 

226

 

 

 

180

 

Total equity

 

 

205,096

 

 

 

194,557

 

Total liabilities and equity

 

$

393,741

 

 

$

497,351

 

 

 

5


 

RADIANT LOGISTICS, INC.

Consolidated Statements of Comprehensive Income

 

 

Three Months Ended June 30,

 

 

Year Ended June 30,

 

(In thousands, except share and per share data)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(unaudited)

 

 

 

 

 

 

 

Revenues

 

$

232,225

 

 

$

382,931

 

 

$

1,085,486

 

 

$

1,459,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of transportation and other services

 

 

165,910

 

 

 

295,965

 

 

 

801,646

 

 

 

1,153,134

 

Operating partner commissions

 

 

28,489

 

 

 

32,221

 

 

 

115,605

 

 

 

121,937

 

Personnel costs

 

 

19,283

 

 

 

20,078

 

 

 

79,512

 

 

 

72,242

 

Selling, general and administrative expenses

 

 

10,519

 

 

 

8,548

 

 

 

38,518

 

 

 

34,000

 

Depreciation and amortization

 

 

4,458

 

 

 

5,330

 

 

 

22,700

 

 

 

18,716

 

Transition, lease termination, and other costs

 

 

 

 

 

 

 

 

30

 

 

 

 

Change in fair value of contingent consideration

 

 

(259

)

 

 

160

 

 

 

(646

)

 

 

767

 

Total operating expenses

 

 

228,400

 

 

 

362,302

 

 

 

1,057,365

 

 

 

1,400,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

3,825

 

 

 

20,629

 

 

 

28,121

 

 

 

58,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,070

 

 

 

13

 

 

 

1,384

 

 

 

23

 

Interest expense

 

 

(1,028

)

 

 

(856

)

 

 

(3,273

)

 

 

(3,214

)

Foreign currency transaction gain

 

 

(47

)

 

 

239

 

 

 

755

 

 

 

718

 

Change in fair value of interest rate swap contracts

 

 

151

 

 

 

278

 

 

 

383

 

 

 

1,840

 

Other

 

 

24

 

 

 

54

 

 

 

176

 

 

 

193

 

Total other expense

 

 

170

 

 

 

(272

)

 

 

(575

)

 

 

(440

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

3,995

 

 

 

20,357

 

 

 

27,546

 

 

 

58,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(735

)

 

 

(3,501

)

 

 

(6,305

)

 

 

(12,692

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

3,260

 

 

 

16,856

 

 

 

21,241

 

 

 

45,491

 

Less: net income attributable to non-controlling interest

 

 

(117

)

 

 

(108

)

 

 

(646

)

 

 

(1,027

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Radiant Logistics, Inc.

 

$

3,143

 

 

$

16,748

 

 

$

20,595

 

 

$

44,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation loss

 

 

1,046

 

 

 

(1,494

)

 

 

(1,409

)

 

 

(1,937

)

Comprehensive income

 

$

4,306

 

 

$

15,362

 

 

$

19,832

 

 

$

43,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

 

$

0.34

 

 

$

0.43

 

 

$

0.90

 

Diluted

 

$

0.06

 

 

$

0.33

 

 

$

0.42

 

 

$

0.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,578,272

 

 

 

49,254,297

 

 

 

48,188,663

 

 

 

49,570,594

 

Diluted

 

 

49,163,103

 

 

 

50,415,639

 

 

 

49,551,388

 

 

 

50,736,582

 

 

 

6


 

Reconciliation of Non-GAAP Measures

RADIANT LOGISTICS, INC.

Reconciliation of Gross Profit to Adjusted Gross Profit, Net Income Attributable to Radiant Logistics, Inc.
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

(unaudited)

As used in this report adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles (“GAAP”). Adjusted gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin 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 24.5% tax rate to calculate the provision for income taxes 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 income taxes, depreciation and amortization, net interest expense, share-based compensation, change in fair value of contingent consideration, transition costs, lease termination costs, acquisition related costs, ransomware related costs, litigation costs, change in fair value of interest rate swap contracts, and gain on foreign currency transaction.

We commonly refer to the term “adjusted gross profit” when commenting about our Company and the results of operations. Adjusted gross profit is a non-GAAP measure calculated as revenues less directly related operations and expenses attributed to the Company’s services. Adjusted gross profit is calculated as GAAP gross profit exclusive of depreciation and amortization, which are reported separately. We believe adjusted gross profit is a better measurement than are total revenues when analyzing and discussing the effectiveness of our business and is used as a portion of a key metric the Company uses to discuss its progress.

EBITDA is a non-GAAP measure of income and does not include the effects of interest, taxes, and the “non-cash” effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to property, technology, and equipment and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude share-based compensation expense, changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, ransomware incident related costs, changes in fair value of interest rate swap contracts, restatement costs, transition and lease termination costs, foreign currency transaction gains and losses, extraordinary items, litigation expenses unrelated to our core operations, and other non-cash charges. While management considers EBITDA and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our consolidated financial statements.

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 gross profit, adjusted net income, EBITDA, adjusted EBITDA, and adjusted EBITDA margin should not be considered in isolation or as a substitute for any of the consolidated statements of comprehensive income prepared in accordance with GAAP, or as an indication of Radiant’s operating performance or liquidity.

(In thousands)

 

Three Months Ended June 30,

 

 

Year Ended June 30,

 

Reconciliation of adjusted gross profit to GAAP gross profit

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

 

$

232,225

 

 

$

382,931

 

 

$

1,085,486

 

 

$

1,459,419

 

Cost of transportation and other services (exclusive of depreciation and
    amortization, shown separately below)

 

 

(165,910

)

 

 

(295,965

)

 

 

(801,646

)

 

 

(1,153,134

)

Depreciation and amortization

 

 

(3,699

)

 

 

(3,122

)

 

 

(12,961

)

 

 

(12,775

)

GAAP gross profit

 

$

62,616

 

 

$

83,844

 

 

$

270,879

 

 

$

293,510

 

Depreciation and amortization

 

 

3,699

 

 

 

3,122

 

 

 

12,961

 

 

 

12,775

 

Adjusted gross profit

 

$

66,315

 

 

$

86,966

 

 

$

283,840

 

 

$

306,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin (GAAP gross profit as a percentage of revenues)

 

 

27.0

%

 

 

21.9

%

 

 

25.0

%

 

 

20.1

%

Adjusted gross profit percentage (adjusted gross profit as a percentage of revenues)

 

 

28.6

%

 

 

22.7

%

 

 

26.1

%

 

 

21.0

%

 

 

7


 

(In thousands)

 

Three Months Ended June 30,

 

 

Year Ended June 30,

 

Reconciliation of GAAP net income to adjusted EBITDA

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income attributable to Radiant Logistics, Inc.

 

$

3,143

 

 

$

16,748

 

 

$

20,595

 

 

$

44,464

 

Income tax expense

 

 

735

 

 

 

3,501

 

 

 

6,305

 

 

 

12,692

 

Depreciation and amortization (1)

 

 

4,574

 

 

 

5,330

 

 

 

23,157

 

 

 

18,716

 

Net interest expense

 

 

(42

)

 

 

843

 

 

 

1,889

 

 

 

3,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

8,410

 

 

 

26,422

 

 

 

51,946

 

 

 

79,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

672

 

 

 

487

 

 

 

2,503

 

 

 

1,798

 

Change in fair value of contingent consideration

 

 

(259

)

 

 

160

 

 

 

(646

)

 

 

767

 

Acquisition related costs

 

 

38

 

 

 

94

 

 

 

185

 

 

 

596

 

Ransomware incident related costs, net

 

 

(6

)

 

 

(347

)

 

 

6

 

 

 

684

 

Litigation costs

 

 

457

 

 

 

84

 

 

 

1,208

 

 

 

568

 

Transition, lease termination, and other costs

 

 

 

 

 

 

 

 

30

 

 

 

 

Change in fair value of interest rate swap contracts

 

 

(152

)

 

 

(278

)

 

 

(383

)

 

 

(1,840

)

Restatement costs

 

 

 

 

 

 

 

 

1,544

 

 

 

 

Foreign currency transaction (loss) gain

 

 

47

 

 

 

(239

)

 

 

(755

)

 

 

(718

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

9,207

 

 

$

26,383

 

 

$

55,638

 

 

$

80,918

 

Adjusted EBITDA margin (adjusted EBITDA as a % of adjusted gross profit)

 

 

13.9

%

 

30.3

%

 

19.6

%

 

26.4

%

(1)
Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, includes depreciation expenses recognized on certain computer software as a service.

 

(In thousands, except share and per share data)

 

Three Months Ended June 30,

 

 

Year Ended June 30,

 

Reconciliation of GAAP net income to adjusted net income

 

2023

 

 

2022

 

 

2023

 

 

2022

 

GAAP net income attributable to Radiant Logistics, Inc.

 

$

3,143

 

 

$

16,748

 

 

$

20,595

 

 

$

44,464

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

735

 

 

 

3,501

 

 

 

6,305

 

 

 

12,692

 

Depreciation and amortization

 

 

4,458

 

 

 

5,330

 

 

 

22,700

 

 

 

18,716

 

Change in fair value of contingent consideration

 

 

(259

)

 

 

160

 

 

 

(646

)

 

 

767

 

Acquisition related costs

 

 

38

 

 

 

94

 

 

 

185

 

 

 

596

 

Ransomware incident related costs, net

 

 

(6

)

 

 

(347

)

 

 

6

 

 

 

684

 

Litigation costs

 

 

457

 

 

 

84

 

 

 

1,208

 

 

 

568

 

Transition, lease termination, and other costs

 

 

 

 

 

 

 

 

30

 

 

 

 

Change in fair value of interest rate swap contracts

 

 

(152

)

 

 

(278

)

 

 

(383

)

 

 

(1,840

)

Restatement costs

 

 

 

 

 

 

 

 

1,544

 

 

 

 

Amortization of debt issuance costs

 

 

137

 

 

 

123

 

 

 

510

 

 

 

500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income before income taxes

 

 

8,551

 

 

 

25,415

 

 

 

52,054

 

 

 

77,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes at 24.5%

 

 

(2,095

)

 

 

(6,227

)

 

 

(12,753

)

 

 

(18,901

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

6,456

 

 

$

19,188

 

 

$

39,301

 

 

$

58,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.39

 

 

$

0.82

 

 

$

1.18

 

Diluted

 

$

0.13

 

 

$

0.38

 

 

$

0.79

 

 

$

1.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,578,272

 

 

 

49,254,297

 

 

 

48,188,663

 

 

 

49,570,594

 

Diluted

 

 

49,163,103

 

 

 

50,415,639

 

 

 

49,551,388

 

 

 

50,736,582

 

 

8


 

(In thousands)
Trailing twelve months adjusted EBITDA:

Three months
ended
June 30,
2023

 

 

Three months
ended
March 31,
2023

 

 

Three months
ended
December 31,
2022

 

 

Three months
ended
September 30,
2022

 

 

Twelve months
ended
June 30,
2023

 

Net income attributable to Radiant Logistics, Inc.

$

3,143

 

 

$

4,183

 

 

$

4,836

 

 

$

8,433

 

 

$

20,595

 

Income tax expense

 

735

 

 

 

1,346

 

 

 

1,460

 

 

 

2,764

 

 

 

6,305

 

Depreciation and amortization (1)

 

4,574

 

 

 

4,663

 

 

 

7,142

 

 

 

6,778

 

 

 

23,157

 

Net interest expense

 

(42

)

 

 

467

 

 

 

683

 

 

 

781

 

 

 

1,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

8,410

 

 

 

10,659

 

 

 

14,121

 

 

 

18,756

 

 

 

51,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

672

 

 

 

543

 

 

 

679

 

 

 

609

 

 

 

2,503

 

Change in fair value of contingent consideration

 

(259

)

 

 

(697

)

 

 

150

 

 

 

160

 

 

 

(646

)

Acquisition related costs

 

38

 

 

 

98

 

 

 

22

 

 

 

27

 

 

 

185

 

Ransomware incident related costs (recovery), net

 

(6

)

 

 

12

 

 

 

 

 

 

 

 

 

6

 

Litigation costs

 

457

 

 

 

384

 

 

 

247

 

 

 

120

 

 

 

1,208

 

Transition, lease termination, and other costs

 

 

 

 

 

 

 

30

 

 

 

 

 

 

30

 

Change in fair value of interest rate swap contracts

 

(152

)

 

 

355

 

 

 

104

 

 

 

(690

)

 

 

(383

)

Restatement costs

 

 

 

 

537

 

 

 

853

 

 

 

154

 

 

 

1,544

 

Foreign exchange gain

 

47

 

 

 

(331

)

 

 

(4

)

 

 

(467

)

 

 

(755

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

9,207

 

 

$

11,560

 

 

$

16,202

 

 

$

18,669

 

 

$

55,638

 

(1)
Depreciation and amortization for the purposes of calculating adjusted EBITDA, a non-GAAP financial measure, includes depreciation expenses recognized on certain computer software as a service.

9


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Document And Entity Information
Sep. 13, 2023
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Sep. 13, 2023
Entity Registrant Name RADIANT LOGISTICS, INC.
Entity Central Index Key 0001171155
Entity Emerging Growth Company false
Securities Act File Number 001-35392
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 04-3625550
Entity Address, Address Line One Triton Towers Two
Entity Address, Address Line Two 700 S. Renton Village Place
Entity Address, Address Line Three Seventh Floor
Entity Address, City or Town Renton
Entity Address, State or Province WA
Entity Address, Postal Zip Code 98057
City Area Code 425
Local Phone Number 462-1094
Entity Information, Former Legal or Registered Name N/A
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 Par Value
Trading Symbol RLGT
Security Exchange Name NYSEAMER
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