Radiant Logistics Announces Results For Fourth Fiscal Quarter And Year Ended June 30, 2013

BELLEVUE, Wash., Sept. 30, 2013 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today reported financial results for the three and twelve months ended June 30, 2013.

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Fourth Fiscal Quarter Financial Highlights (Quarter Ended June 30, 2013)

• Total revenues decreased 1.3% to $80.7 million in the fourth fiscal quarter of 2013 from $81.8 million for the comparable prior year period, primarily as a result of non-recurring project business of $1,056,000 in the fiscal quarter ended June 30, 2012.
• Net income attributable to common shareholders was $2.4 million, or $0.07 per basic and diluted share, for the fourth fiscal quarter of 2013, compared to net income of $0.9 million or $0.03 per basic and diluted share, for the comparable prior year period. 
• Adjusted net income attributable to common shareholders was $1,764,000, or $0.05 per basic and diluted share, for the fourth fiscal quarter of 2013, compared to adjusted net income attributable to common shareholders of $1,305,000, or $0.04 per basic and diluted share, for the comparable prior year period. Both periods are calculated by applying a normalized tax rate of 38% and excluding other items not considered part of regular operating activities.
• Adjusted EBITDA was $3,243,000 for the fourth fiscal quarter of 2013, compared to adjusted EBITDA in the prior year comparable period of $2,332,000.

CEO Comments

"We are very pleased to report another solid quarter of earnings growth," said Bohn Crain, Founder and CEO. "We posted Adjusted EBITDA of $3.2 million for the quarter ended June 30, 2013, up $0.9 million and 39.1% over the comparable prior year period. Consistent with past quarters, we also continue to make good progress in leveraging our scalable business model to drive margin expansion. For the quarter ended June 30, 2013, our Adjusted EBITDA expressed as a function of net revenues increased 390 basis points, up from 10.2% to 14.1% for the comparable prior year period. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further margin expansion as we continue to scale the business and look for ways to drive operating efficiencies in our in our non-asset based business model."

Crain continued: "While we continue to make good progress on expanding our margins, we have some work to do to improve organic growth.  To this end, we are investing in our sales organization and effective July 1, 2013, we reorganized and added to our leadership team rolling out a new regional reporting structure (eastern, central, western and Mexico regions) with the express purpose of providing individual accountability for growth.  Each of our regional managers is responsible for helping our existing stations grow their business (same store growth) as well as developing and on-boarding new agent stations (new store growth) within their respective geographic areas of responsibility. At the same time, we have more formerly defined business owners for our service lines: Domestic Services and International Services and tasked each of these managers to grow the contribution from their respective areas of responsibility. It is obviously very early stages but we are working hard to cultivate a strong sales culture that we believe over time will translate into more favorable net revenue growth."

"With cashflows of the business and the benefit of our expanded $30.0 million credit facility with Bank of America, at August 31, 2013 we had gross availability of approximately $27.0 million, advances under the facility of approximately $8.0 million and net availability of approximately $19.0 million. With this added financial flexibility, we recently took the opportunity to begin to reduce our cost of debt using our Bank of America facility to pay down $2.0 million of our $10.0 million in sub debt effectively refinancing $2.0 million at a rate of approximately 4% rather than 13.5%. We will continue to evaluate our options relative to our remaining $8.0 million in sub debt as we look at capital allocation and our acquisition pipeline."

Crain concluded: "We are providing guidance for the upcoming quarter ending September 30, 2013 with adjusted EBITDA in the range of $2.7 - $3.2 million on approximately $75.0 - $85.0 million in revenues which equates to adjusted net income in the range of $1.4 - $1.7 million, or $0.04 - $0.05 per diluted share which we believe is representative of the run-rate earning power of our existing platform without the benefit of any new acquisitions.  We would also like to remind investors that our free cashflow is generally higher than our net income because we have significant non-cash depreciation and amortization expenses flowing through our financial statements as a result of the mechanics of accounting for acquisitions and the fact that we have minimal maintenance capital expenditure requirements."

Fourth Fiscal Quarter ended June 30, 2013 – Financial Results

For the three months ended June 30, 2013, Radiant reported net income attributable to common shareholders of $2,352,000 on $80.7 million of revenues, or $0.07 per basic and fully diluted share, including a gain of $1,875,000 in change in contingent consideration.  For the three months ended June 30, 2012, Radiant reported net income attributable to common shareholders of $903,000 on $81.8 million of revenues, or $0.03 per basic and fully diluted share, including a gain of $920,000 in change in contingent consideration. 

For the three months ended June 30, 2013, Radiant reported adjusted net income attributable to common shareholders of $1,764,000, or $0.05 per basic and per fully diluted share.  For the three months ended June 30, 2012, Radiant reported adjusted net income attributable to common shareholders of $1,305,000, or $0.04 per basic and per fully diluted share. 

The Company also reported adjusted EBITDA of $3,243,000 for the three months ended June 30, 2013, compared to adjusted EBITDA of $2,332,000 for the three months ended June 30, 2012.

Twelve Months ended June 30, 2013 – Financial Results

For the twelve months ended June 30, 2013, Radiant reported net income attributable to common shareholders of $3,657,000 on $310.8 million of revenues, or $0.11 per basic and $0.10 per fully diluted share, including a gain $368,000 in connection with the DBA arbitration, gain of $2,825,000 of change in contingent consideration and a loss of $1,439,000 associated with the lease termination for redundant facilities in Los Angeles. For the twelve months ended June 30, 2012, Radiant reported net income of $1,901,394 on $297.0 million of revenues, or $0.06 per basic and $0.05 per fully diluted share, including a gain of $900,000 on change in contingent consideration.

For the twelve months ended June 30, 2013, Radiant reported adjusted net income attributable to common shareholders of $5,589,000, or $0.17 per basic and $0.16 per fully diluted share.  For the twelve months ended June 30, 2012, Radiant reported adjusted net income attributable to common shareholders of $4,789,000, or $0.15 per basic and $0.14 per fully diluted share. 

The Company also reported adjusted EBITDA, of $10,693,000 for the twelve months ended June 30, 2013, compared to adjusted EBITDA of $7,519,000 for the comparable prior year period.

A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for both the three and twelve month periods ending June 30, 2013 appears at the end of this release.

Reconciliation of Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under the Securities Exchange Commission ("SEC") rules such as adjusted net income, adjusted net income per share and earnings before interest, taxes, depreciation and amortization ("EBITDA"). We believe that supplemental disclosure of these amounts are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business that eliminates depreciation, amortization and certain other non-cash costs and other significant items that are not part of regular operating activities. A reconciliation of adjusted net income, adjusted net income per share and adjusted EBITDA, to the most directly comparable GAAP measure is as follows:

(in thousands, except for earnings per share)

This supplemental financial information is presented for informational purposes only and is not a substitute for the financial information presented in accordance with accounting principles generally accepted in the United States.

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Wednesday, October 2, 2013 at 4:00 pm, ET to discuss the contents of this 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 100250. This call is also being webcast and may be accessed via Radiant's web site at www.radiantdelivers.com.

About Radiant Logistics (NYSE MKT: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics company providing domestic and international freight forwarding and fulfillment services through a network of company-owned and independent agent offices across North America.  The company operates under the Radiant, Airgroup, Adcom, and Distribution By Air brands servicing 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 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to trends in the domestic and global economy, our ability to attract new and retain existing agency relationships, acquisitions and integration of acquired entities, availability of capital to support our acquisition strategy, our ability to maintain and improve  back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations, outcomes of legal proceedings, competition, management of growth, potential fluctuations in operating results, and government regulation. More information about factors that potentially could affect Radiant Logistics, Inc. financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

RADIANT LOGISTICS, INC.
Reconciliation of Net Income to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Reconciliation of Net Income per share to Adjusted Net Income per share
(unaudited)

As used in this report, Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA 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 38% tax rate for calculating 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 and Adjusted Net Income per Share, the Company adjusts for significant items that are not part of regular operating activities.  These adjustments include acquisition costs, transition, severance and lease termination costs, unusual legal and claims settlement as well as depreciation and amortization and certain other non-cash charges.

Adjusted EBITDA means earnings before interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration stock-based compensation, acquisition, severance and lease termination costs and other non-cash charges consistent with the financial covenants of our senior credit facility.  We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges and other non-recurring charges.  Adjusted EBITDA is also used by our creditors in assessing debt covenant compliance.  We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation.  Adjusted Net Income and Adjusted Net income per Share, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for any of the consolidated statements of income prepared in accordance with GAAP, or as an indication of Radiant's operating performance or liquidity.

SOURCE Radiant Logistics, Inc.