0001564590-19-018080.txt : 20190509 0001564590-19-018080.hdr.sgml : 20190509 20190509165818 ACCESSION NUMBER: 0001564590-19-018080 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 82 CONFORMED PERIOD OF REPORT: 20190331 FILED AS OF DATE: 20190509 DATE AS OF CHANGE: 20190509 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-35392 FILM NUMBER: 19811484 BUSINESS ADDRESS: STREET 1: 405 114TH AVENUE, SE STREET 2: THIRD FLOOR CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: 425-943-4599 MAIL ADDRESS: STREET 1: 405 114TH AVENUE, SE STREET 2: THIRD FLOOR CITY: BELLEVUE STATE: WA ZIP: 98004 FORMER COMPANY: FORMER CONFORMED NAME: GOLF TWO INC DATE OF NAME CHANGE: 20020415 10-Q 1 rlgt-10q_20190331.htm 10-Q rlgt-10q_20190331.htm

 

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

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

For the quarterly period ended March 31, 2019

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

For the transition period from                      to                      

Commission File Number 001-35392

 

RADIANT LOGISTICS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

Delaware

 

04-3625550

 

 

(State or Other Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

Identification No.)

 

 

 

405 114th Ave S.E., Bellevue, WA 98004

 

 

(Address of principal executive offices)

 

 

 

 

 

(425) 943-4599

 

 

(Registrant’s telephone number, including area code)

 

 

 

 

 

N/A

 

(Former name, former address, and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

 

Accelerated filer

 

 

 

 

 

 

Non-accelerated filer

 

  

  

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

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. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

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

 

RLGT

 

NYSE

There were 49,572,896 shares outstanding of the registrant’s common stock, par value $.001 per share, as of May 1, 2019.

 

 


 

RADIANT LOGISTICS, INC.

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

 

Item 1.

 

 

Financial Statements (unaudited)

  

 

 

 

 

Condensed Consolidated Balance Sheets as of March 31, 2019 and June 30, 2018

  

3

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended March 31, 2019 and 2018

  

4

 

 

 

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended March 31, 2019 and 2018

  

5

 

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2019 and 2018

  

7

 

 

 

Notes to Condensed Consolidated Financial Statements

  

9

 

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

28

 

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

38

 

Item 4.

 

 

Controls and Procedures

  

38

 

PART II. OTHER INFORMATION

  

 

 

Item 1.

 

 

Legal Proceedings

  

39

 

Item 1A.

 

 

Risk Factors

  

39

 

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

39

 

Item 6.

 

 

Exhibits

  

40

Signatures

 

 

 

 

41

 

 

 

 

 

 

 

 

2


 

RADIANT LOGISTICS, INC.

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except share and per share data)

 

March 31,

 

 

June 30,

 

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,484

 

 

$

6,992

 

Accounts receivable, net of allowance of $2,539 and $1,703, respectively

 

 

90,728

 

 

 

137,578

 

Contract assets

 

 

20,691

 

 

 

 

Income tax receivable

 

 

309

 

 

 

2,105

 

Prepaid expenses and other current assets

 

 

9,569

 

 

 

6,599

 

Total current assets

 

 

126,781

 

 

 

153,274

 

 

 

 

 

 

 

 

 

 

Technology and equipment, net

 

 

19,983

 

 

 

18,566

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

65,389

 

 

 

65,389

 

Intangible assets, net

 

 

58,035

 

 

 

65,264

 

Deposits and other assets

 

 

1,266

 

 

 

2,945

 

Total other long-term assets

 

 

124,690

 

 

 

133,598

 

Total assets

 

$

271,454

 

 

$

305,438

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

78,148

 

 

$

90,153

 

Operating partner commissions payable

 

 

13,286

 

 

 

14,322

 

Accrued expenses

 

 

6,076

 

 

 

5,404

 

Current portion of notes payable

 

 

3,953

 

 

 

3,726

 

Current portion of contingent consideration

 

 

110

 

 

 

960

 

Transition and lease termination liability

 

 

399

 

 

 

1,385

 

Other current liabilities

 

 

607

 

 

 

295

 

Total current liabilities

 

 

102,579

 

 

 

116,245

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

36,232

 

 

 

43,197

 

Contingent consideration, net of current portion

 

 

290

 

 

 

1,615

 

Deferred rent liability

 

 

923

 

 

 

1,020

 

Deferred income taxes

 

 

7,873

 

 

 

8,665

 

Other long-term liabilities

 

 

701

 

 

 

1,082

 

Total long-term liabilities

 

 

46,019

 

 

 

55,579

 

Total liabilities

 

 

148,598

 

 

 

171,824

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 shares authorized; nil and 839,200 shares issued

    and outstanding, respectively

 

 

 

 

 

1

 

Common stock, $0.001 par value, 100,000,000 shares authorized; 49,630,506 and 49,511,907

    shares issued, and 49,538,708 and 49,420,109 shares outstanding, respectively

 

 

31

 

 

 

31

 

Additional paid-in capital

 

 

99,882

 

 

 

117,968

 

Treasury stock, at cost, 91,798 shares

 

 

(253

)

 

 

(253

)

Retained earnings

 

 

22,422

 

 

 

15,539

 

Accumulated other comprehensive income

 

 

401

 

 

 

186

 

Total Radiant Logistics, Inc. stockholders’ equity

 

 

122,483

 

 

 

133,472

 

Non-controlling interest

 

 

373

 

 

 

142

 

Total equity

 

 

122,856

 

 

 

133,614

 

Total liabilities and equity

 

$

271,454

 

 

$

305,438

 

 

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

 

3


 

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Comprehensive Income

(unaudited)

 

(In thousands, except share and per share data)

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

 

2019

 

 

 

2018

 

 

2019

 

 

2018

 

Revenues

$

206,048

 

 

$

203,921

 

 

$

685,868

 

 

$

608,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of transportation and other services

 

153,302

 

 

 

155,327

 

 

 

514,293

 

 

 

467,050

 

Operating partner commissions

 

23,125

 

 

 

22,194

 

 

 

76,309

 

 

 

61,414

 

Personnel costs

 

14,806

 

 

 

14,671

 

 

 

45,256

 

 

 

43,573

 

Selling, general and administrative expenses

 

6,812

 

 

 

6,596

 

 

 

21,458

 

 

 

19,250

 

Depreciation and amortization

 

3,847

 

 

 

3,640

 

 

 

11,295

 

 

 

10,783

 

Transition and lease termination costs

 

 

 

 

 

 

 

(11

)

 

 

107

 

Change in fair value of contingent consideration

 

(611

)

 

 

35

 

 

 

(1,182

)

 

 

(75

)

Total operating expenses

 

201,281

 

 

 

202,463

 

 

 

667,418

 

 

 

602,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

4,767

 

 

 

1,458

 

 

 

18,450

 

 

 

6,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

13

 

 

 

10

 

 

 

37

 

 

 

26

 

Interest expense

 

(684

)

 

 

(755

)

 

 

(2,345

)

 

 

(2,338

)

Foreign currency transaction gains (losses)

 

(24

)

 

 

7

 

 

 

169

 

 

 

(132

)

Other

 

49

 

 

 

103

 

 

 

258

 

 

 

329

 

Total other expense

 

(646

)

 

 

(635

)

 

 

(1,881

)

 

 

(2,115

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

4,121

 

 

 

823

 

 

 

16,569

 

 

 

4,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

(942

)

 

 

(123

)

 

 

(3,793

)

 

 

1,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

3,179

 

 

 

700

 

 

 

12,776

 

 

 

5,486

 

Less: net income attributable to non-controlling interest

 

(247

)

 

 

(22

)

 

 

(891

)

 

 

(139

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Radiant Logistics, Inc.

 

2,932

 

 

 

678

 

 

 

11,885

 

 

 

5,347

 

Less: preferred stock dividends

 

 

 

 

(511

)

 

 

(956

)

 

 

(1,534

)

Less: issuance costs for preferred stock redemption

 

 

 

 

 

 

 

(1,659

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

$

2,932

 

 

$

167

 

 

$

9,270

 

 

$

3,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

(278

)

 

 

446

 

 

 

215

 

 

 

(149

)

Comprehensive income

$

2,901

 

 

$

1,146

 

 

$

12,991

 

 

$

5,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.06

 

 

$

 

 

$

0.19

 

 

$

0.08

 

Diluted

$

0.06

 

 

$

 

 

$

0.18

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

49,515,717

 

 

 

49,334,300

 

 

 

49,471,556

 

 

 

49,197,218

 

Diluted

 

51,169,321

 

 

 

50,630,307

 

 

 

50,979,319

 

 

 

50,660,478

 

 

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

4


 

 

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Changes in Equity

(unaudited)

 

 

 

RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY

 

 

 

 

 

(In thousands, except share and per share data)

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Treasury

 

 

 

 

Retained

 

 

Accumulated

Other

Comprehensive

 

 

Total Radiant

Logistics,

Inc.

Stockholders'

 

 

Non-

Controlling

 

 

Total

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

 

 

Earnings

 

 

Income (Loss)

 

 

Equity

 

 

Interest

 

 

Equity

 

Balance as of June 30, 2018

 

839,200

 

 

$

1

 

 

 

49,420,109

 

 

$

31

 

 

$

117,968

 

 

$

(253

)

 

 

 

$

15,539

 

 

$

186

 

 

$

133,472

 

 

$

142

 

 

$

133,614

 

Cumulative effect adjustment, upon adoption

    of ASC 606 on July 1, 2018 (Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(335

)

 

 

 

 

 

(335

)

 

 

 

 

 

(335

)

Cumulative effect adjustment, upon adoption

    of ASU 2016-16 on July 1, 2018 (Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,705

)

 

 

 

 

 

(1,705

)

 

 

 

 

 

(1,705

)

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

331

 

 

 

 

 

 

331

 

Issuance of common stock upon exercise

   of stock options

 

 

 

 

 

 

 

32,979

 

 

 

 

 

 

(63

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(63

)

 

 

 

 

 

(63

)

Preferred dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(511

)

 

 

 

 

 

(511

)

 

 

 

 

 

(511

)

Distribution to non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(90

)

 

 

(90

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,083

 

 

 

 

 

 

3,083

 

 

 

180

 

 

 

3,263

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(305

)

 

 

(305

)

 

 

 

 

 

(305

)

Balance as of September 30, 2018

 

839,200

 

 

 

1

 

 

 

49,453,088

 

 

 

31

 

 

 

118,236

 

 

 

(253

)

 

 

 

 

16,071

 

 

 

(119

)

 

 

133,967

 

 

 

232

 

 

 

134,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

464

 

 

 

 

 

 

464

 

Issuance of common stock upon exercise

   of stock options

 

 

 

 

 

 

 

16,488

 

 

 

 

 

 

(34

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

 

 

 

 

 

(34

)

Preferred dividends paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(792

)

 

 

 

 

 

(792

)

 

 

 

 

 

(792

)

Redemption of preferred stock

 

(839,200

)

 

 

(1

)

 

 

 

 

 

 

 

 

(19,320

)

 

 

 

 

 

 

 

(1,659

)

 

 

 

 

 

(20,980

)

 

 

 

 

 

(20,980

)

Distribution to non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(150

)

 

 

(150

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,870

 

 

 

 

 

 

5,870

 

 

 

464

 

 

 

6,334

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

798

 

 

 

798

 

 

 

 

 

 

798

 

Balance as of December 31, 2018

 

 

 

 

 

 

 

49,469,576

 

 

 

31

 

 

 

99,346

 

 

 

(253

)

 

 

 

 

19,490

 

 

 

679

 

 

 

119,293

 

 

 

546

 

 

 

119,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409

 

 

 

 

 

 

409

 

Issuance of common stock upon exercise

   of stock options

 

 

 

 

 

 

 

32,326

 

 

 

 

 

 

(76

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(76

)

 

 

 

 

 

(76

)

Issuance of common stock to former

   shareholders of acquired businesses

 

 

 

 

 

 

 

36,806

 

 

 

 

 

 

203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

203

 

 

 

 

 

 

203

 

Distribution to non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(420

)

 

 

(420

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,932

 

 

 

 

 

 

2,932

 

 

 

247

 

 

 

3,179

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(278

)