PR Newswire | Feb 9, 2021 04:01PM EST

December 31, 2020

02/09 15:01 CST

Radiant Logistics Announces Results For The Second Fiscal Quarter Ended December 31, 2020Reports quarterly revenues of $218.8 million; Financial impact of COVID-19 largely mitigated through focus on cost saving and other service offerings that benefit from tightening capacity; Non-asset based variable cost model, diverse service offerings, and low debt levels continue to provide Company with flexibility to navigate impact of pandemic BELLEVUE, Wash., Feb. 9, 2021

BELLEVUE, Wash., Feb. 9, 2021 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and six months ended December 31, 2020.

Financial Highlights - Three Months Ended December 31, 2020

* Revenues reported at $218.8 million for the second fiscal quarter ended December 31, 2020, compared to revenues of $201.9 million for the comparable prior year period. * Net revenues, a non-GAAP financial measure, reported at $55.3 million for the second fiscal quarter ended December 31, 2020, compared to net revenues of $56.0 million for the comparable prior year period. * Net income reported at $3.8 million, or $0.08 per basic and $0.07 per fully diluted share, compared to net income of $2.6 million, or $0.05 per basic and fully diluted share for the comparable prior year period. * Adjusted net income, a non-GAAP financial measure, reported at $8.6 million, or $0.17 per basic and fully diluted share for the second fiscal quarter ended December 31, 2020, compared to adjusted net income of $6.3 million, or $0.13 per basic and $0.12 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, reported at $12.5 million for the second fiscal quarter ended December 31, 2020, compared to adjusted EBITDA of $9.4 million for the comparable prior year period.

CEO Bohn Crain comments on results

"We are very pleased to report another quarter of solid financial results as we navigate through this unique environment," said Bohn Crain, Founder and CEO of Radiant Logistics. "We reported revenues of $218.8 million and net revenues of $55.3 million for the quarter ended December 31, 2020. Top-line revenue continues to show encouraging growth. However, even more encouraging is that, through a number of cost-saving and other strategic initiatives, we were able to show growth on our bottom line, both domestically and in Canada, even though our net revenues were down slightly. Most notably, Radiant Canada continues to perform well. As well, our Clipper brokerage business in Chicago, which is now trending towards what we believe is its true growth potential. We have been able to achieve growth, continue to report solid financial results, while maintaining very low leverage on our balance sheet. We are continuing to see slow and steady improvement across many industry verticals that we serve, as we've worked through a challenging environment with continued broad-based tightening of capacity."

Mr. Crain continued, "We have learned through this pandemic that our non-asset based variable cost model enables us to maintain profitable growth, while caring for and supporting the needs of our many employees, operating partners and customers. We are also proud to have supported COVID relief and humanitarian efforts within both the private and governmental sectors. Our overall results have been positively influenced by tightening capacity and positive demand trends within a number of the business sectors that we service. These demand trends have produced positive results that more than outweigh the headwinds that are still being experienced in some of the sectors that continue to be challenged by COVID, such as in the retail, hospitality, travel, and trade show sectors. With the diversity of our customers, the strength of our balance sheet, the commitment of our employees, and the eventual recovery of the business sectors that have been most adversely effected by COVID, we are optimistic about the trajectory of the economy and the opportunities that it will present for Radiant. In the months ahead, we will continue to closely monitor how we and the economy are progressing and look forward to re-engaging in acquisition opportunities and/or our stock buy-back activities as the opportunities present themselves."

Second Fiscal Quarter Ended December 31, 2020 - Financial Results

For the three months ended December 31, 2020, Radiant reported net income of $3.8 million on $218.8 million of revenues, or $0.08 per basic and $0.07 per fully diluted share. For the three months ended December 31, 2019, Radiant reported net income of $2.6 million on $201.9 million of revenues, or $0.05 per basic and fully diluted share.

For the three months ended December 31, 2020, Radiant reported adjusted net income of $8.6 million, or $0.17 per basic and fully diluted share. For the three months ended December 31, 2019, Radiant reported adjusted net income of $6.3 million, or $0.13 per basic and $0.12 per fully diluted share.

For the three months ended December 31, 2020, Radiant reported Adjusted EBITDA of $12.5 million, compared to $9.4 million for the comparable prior year period.

Six Months EndedDecember 31, 2020 - Financial Results

For the six months ended December 31, 2020, Radiant reported net income of $6.9 million on $394.7 million of revenues, or $0.14 per basic and fully diluted share. For the six months ended December 31, 2019, Radiant reported net income of $5.8 million on $402.5 million of revenues, or $0.12 per basic and $0.11 per fully diluted share.

For the six months ended December 31, 2020, Radiant reported adjusted net income of $15.2 million, or $0.31 per basic and $0.30 per fully diluted share. For the six months ended December 31, 2019, Radiant reported adjusted net income of $12.8 million or $0.26 per basic and $0.25 per fully diluted share.

For the six months ended December 31, 2020, Radiant reported Adjusted EBITDA of $21.8 million, compared to $19.1 million for the comparable prior year period.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Tuesday, February 9, 2021 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/ Tuesday, February 9, 2021 at 4:30 PM EasternTIME:

DIAL-IN US (800) 346-7359; Intl. (973) 528-0008

REPLAY February 10, 2021 at 9:30 AM Eastern to February 23, 2021 at 4:30 PM Eastern, US (877) 481-4010;

Intl. (919) 882-2331 (Replay ID number: 39834)

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/2191/39834.

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party logistics and multimodal transportation services company delivering advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to 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 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 announcement. 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 of our 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 on our operations and financial results; 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 our Form 10-K for the year ended June 30, 2020. In addition, the global economic climate and additional or unforeseen effects from the COVID-19 pandemic 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.

RADIANT LOGISTICS, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

December 31, June 30,

(In thousands, except share and per share data) 2020 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 7,269 $ 34,841

Accounts receivable, net of allowance of $1,668 and 97,893 71,838$1,990, respectively

Contract assets 21,651 16,312

Income tax receivable - 780

Prepaid expenses and other current assets 19,974 16,817

Total current assets 146,787 140,588

Property, technology, and equipment, net 20,760 18,712

Goodwill 72,006 72,199

Intangible assets, net 46,048 51,192

Operating lease right-of-use assets 10,132 12,580

Deposits and other assets 4,475 4,769

Total other long-term assets 132,661 140,740

Total assets $ 300,208 $ 300,040

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 76,620 $ 65,003

Operating partner commissions payable 13,519 9,131

Accrued expenses 6,618 6,538

Income tax payable 384 -

Current portion of notes payable 4,188 3,800

Current portion of operating lease liability 5,141 6,121

Current portion of finance lease liability 719 688

Current portion of contingent consideration 3,062 2,127

Other current liabilities 343 308

Total current liabilities 110,594 93,716

Notes payable, net of current portion 26,822 48,091

Operating lease liability, net of current portion 5,555 7,192

Finance lease liability, net of current portion 2,143 2,476

Contingent consideration, net of current portion 2,701 2,813

Deferred income taxes 7,058 7,484

Other long-term liabilities 99 93

Total long-term liabilities 44,378 68,149

Total liabilities 154,972 161,865

Stockholders' equity:

Common stock, $0.001 par value, 100,000,000 sharesauthorized; 50,599,912 and 50,188,486 32 32 shares issued, and 49,967,065 and 49,555,639shares outstanding, respectively

Additional paid-in capital 103,422 102,214

Treasury stock, at cost, 632,847 shares (2,749) (2,749)

Retained earnings 44,324 37,424

Accumulated other comprehensive income 51 445

Total Radiant Logistics, Inc. stockholders' equity 145,080 137,366

Non-controlling interest 156 809

Total equity 145,236 138,175

Total liabilities and equity $ 300,208 $ 300,040

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

Three Months Ended Six Months Ended December 31, December 31,

(In thousands, except share and per share data) 2020 2019 2020 2019

Revenues $ 218,805 $ 201,927 $ 394,682 $ 402,470

Operating expenses:

Cost of transportation and other services 163,504 145,969 293,416 290,979

Operating partner commissions 24,036 25,370 42,625 49,548

Personnel costs 13,735 15,227 26,512 30,074

Selling, general and administrative expenses 5,568 6,680 11,224 14,343

Depreciation and amortization 4,085 4,095 8,243 8,132

Transition, lease termination, and other costs - 337 - 328

Change in fair value of contingent consideration 1,850 33 1,850 48

Total operating expenses 212,778 197,711 383,870 393,452

Income from operations 6,027 4,216 10,812 9,018

Other income (expense):

Interest income 3 18 12 33

Interest expense (728) (612) (1,308) (1,319)

Foreign currency transaction loss (193) (25) (172) (48)

Change in fair value of interest rate swap (110) - (130) -contracts

Other 291 44 382 75

Total other expense (737) (575) (1,216) (1,259)

Income before income taxes 5,290 3,641 9,596 7,759

Income tax expense (1,402) (961) (2,479) (1,748)

Net income 3,888 2,680 7,117 6,011

Less: net income attributable to non-controlling (76) (93) (217) (189)interest

Net income attributable to Radiant Logistics, $ 3,812 $ 2,587 $ 6,900 $ 5,822Inc.

Other comprehensive income (loss):

Foreign currency translation gain (loss) 1,602 (148) (394) (34)

Comprehensive income $ 5,490 $ 2,532 $ 6,723 $ 5,977

Income per share:

Basic $ 0.08 $ 0.05 $ 0.14 $ 0.12

Diluted $ 0.07 $ 0.05 $ 0.14 $ 0.11

Weighted average common shares outstanding:

Basic 49,815,191 49,760,844 49,696,891 49,711,692

Diluted 51,115,524 51,395,063 51,020,456 51,411,538

Reconciliation of Non-GAAP MeasuresRADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Incometo Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin(unaudited)

As used in this report, Net Revenues, 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"). Net Revenues, 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, change in fair value of contingent consideration, transition costs, lease termination costs, acquisition related costs, litigation costs, amortization of debt issuance costs, and change in fair value of interest rate swap contracts.

We commonly refer to the term "net revenues" when commenting about our Company and the results of operations. Net revenues are a Non-GAAP measure calculated as revenues less directly related operations and expenses attributed to the Company's services. We believe net revenues are 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 technology and equipment, and all amortization charges (including amortization of leasehold improvements). We then further adjust EBITDA to exclude changes in fair value of contingent consideration, expenses specifically attributable to acquisitions, transition and lease termination costs, foreign currency transaction gains and losses, extraordinary items, share-based compensation expense, litigation expenses unrelated to our core operations, MM&D start-up costs 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. Net Revenues, 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 Six Months Ended December 31, December 31,

Net Revenues (Non-GAAP measure) 2020 2019 2020 2019

Total revenues $ 218,805 $ 201,927 $ 394,682 $ 402,470

Cost of transportation and other services 163,504 145,969 293,416 290,979

Net revenues $ 55,301 $ 55,958 $ 101,266 $ 111,491

Net margin 25.3 % 27.7 % 25.7 % 27.7 %

(In thousands) Three Months Ended Six Months Ended December 31, December 31,

Reconciliation of GAAP net income to adjusted EBITDA 2020 2019 2020 2019

Net income attributable to Radiant Logistics, Inc. $ 3,812 $ 2,587 $ 6,900 $ 5,822

Income tax expense 1,402 961 2,479 1,748

Depreciation and amortization 4,085 4,095 8,243 8,132

Net interest expense 725 594 1,296 1,286

EBITDA 10,024 8,237 18,918 16,988

Share-based compensation 327 467 471 897

Change in fair value of contingent consideration 1,850 33 1,850 48

Acquisition related costs 1 27 35 312

Litigation costs 26 248 177 432

Transition, lease termination, and other costs - 337 - 328

Change in fair value of interest rate swap contracts 110 - 130 -

Foreign currency transaction loss 193 25 172 48

Adjusted EBITDA $ 12,531 $ 9,374 $ 21,753 $ 19,053

Adjusted EBITDA margin (Adjusted EBITDA as a % of Net 22.7 % 16.8 % 21.5 % 17.1 %Revenues)

(In thousands, except share and per share data) Three Months Ended Six Months Ended December 31, December 31,

Reconciliation of GAAP net income to adjusted net income 2020 2019 2020 2019

GAAP net income attributable to Radiant Logistics, Inc. $ 3,812 $ 2,587 $ 6,900 $ 5,822

Adjustments to net income:

Income tax expense 1,402 961 2,479 1,748

Depreciation and amortization 4,085 4,095 8,243 8,132

Change in fair value of contingent consideration 1,850 33 1,850 48

Acquisition related costs 1 27 35 312

Litigation costs 26 248 177 432

Transition, lease termination, and other costs - 337 - 328

Change in fair value of interest rate swap contracts 110 - 130 -

Amortization of debt issuance costs 160 54 264 108

Adjusted net income before income taxes 11,446 8,342 20,078 16,930

Provision for income taxes at 24.5% (2,804) (2,044) (4,919) (4,148)

Adjusted net income $ 8,642 $ 6,298 $ 15,159 $ 12,782

Adjusted net income per common share:

Basic $ 0.17 $ 0.13 $ 0.31 $ 0.26

Diluted $ 0.17 $ 0.12 $ 0.30 $ 0.25

Weighted average common shares outstanding:

Basic 49,815,191 49,760,844 49,696,891 49,711,692

Diluted 51,115,524 51,395,063 51,020,456 51,411,538

View original content to download multimedia: http://www.prnewswire.com/news-releases/radiant-logistics-announces-results-for-the-second-fiscal-quarter-ended-december-31-2020-301225093.html

SOURCE Radiant Logistics, Inc.