Radiant Logistics Agrees to Acquire Distribution By Air

• Tuesday, March 29th, 2011

BELLEVUE, WA   March 29, 2011 – Radiant Logistics, Inc. (OTC QB: RLGT), a domestic and international logistics services company, today announced it has agreed to acquire New Jersey-based DBA Distribution Services, Inc., a New Jersey-based, privately held company that commonly operates under the trade name Distribution By Air (“DBA”) and provides a full range of domestic and international transportation and logistics services across North America.  The transaction is valued at $12.0 million and is expected to close in Radiant’s fourth fiscal quarter ending June 30, 2011, pending the satisfaction of customary closing conditions.

The $12.0 million transaction will consist of cash of $5.4 million to be paid at closing, $4.8 million in seller notes payable over the next three years and $1.8 million to be paid in connection with the achievement of certain integration milestones.  The Company may, at its sole option, on or before the three month anniversary of the closing, elect to satisfy up to $2.4 million of the seller notes through the issuance of the Company’s common stock to be valued based upon a 30-day volume weighted average price to be calculated preceding the delivery of the shares.

Founded in 1981, Distribution By Air services a diversified account base including manufacturers, distributors and retailers through a combination of company owned logistics centers located in Somerset, New Jersey and Los Angeles, California and twenty four agency offices across North America. Based on historic financial statements provided by its management, Distribution  By Air generated approximately $91.6 Million in revenues for the twelve months ended August 31, 2010. Distribution By Air will operate as a wholly owned subsidiary of Radiant Logistics.

On the acquisition, Radiant Chairman and CEO Bohn Crain remarked: “We are proud to announce our partnership with Jim Eagen, Paul Pollara and the entire DBA team. Our plan is to continue to operate the DBA brand alongside Radiant’s existing network brands while leveraging the increased and substantial purchasing power of the combined group. This transaction is the ideal next step to accelerate Radiant’s growth and further strengthen our network with significant company-owned operations in the strategic gateway markets of Newark and Los Angeles, an expanded network footprint and enhanced service offering.  Through the purchase of DBA, Radiant will operate more than 100 stations in North America, giving us one of the largest footprints in our industry.  We expect this will translate into improved profitability and strategic advantage for all of our stations.” 

Crain Continued: “The financial metrics of the combined group are also compelling.  Our preliminary estimates for our fiscal year ending June 30, 2012 are approximately $9.0 million in adjusted EBITDA on $285 million in annual revenues.  This is before considering the elimination of an additional $1.0 million in costs that we will incur as we work through the integration process during our fiscal 2012 that will not carry into our fiscal year ended 2013. This is a particularly exciting time for us and we see even more opportunity on the horizon to deliver further revenue and earnings growth through a combination or organic and acquisitive growth initiatives.  In support of these strategies, we continue to enjoy significant financial flexibility to execute our plan with approximately $10.0 million in capacity remaining from our Bank of America credit facility. We believe this sets us apart in today’s marketplace and we look forward to providing further updates as things progress.”

The Company’s estimate of future revenues and profits is based on the assumption that the cumulative historical financial results of operations of the Company and Distribution By Air for the most recent 12 months ended August 31, 2010 are indicative of the future financial performance of the combined group as well as anticipated cost synergies associated with migrating Distribution By Air’s back-office operations to Bellevue, WA. A reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, appears at the end of this release.

Jim Eagen, of Distribution  By Air commented, “We are very happy to be joining the Radiant organization.   We were looking for a long term partner with that same passion for servicing the customer and a shared vision to further advance our business. We found that partner in Radiant. They have a unique and compelling value proposition, a real appreciation for the needs of the local owner/entrepreneur and a clear and achievable plan for building a world class logistics organization.  We are looking forward to leveraging our own strengths along with the capabilities of the Radiant network to bring additional value to our customers while enjoying the benefits of participating in an organization that, through its status as a public company, gives our employees and station owners the opportunity to work as shareholders and participate in the value that they help create.”  Both DBA founders Mr. Eagen and Mr. Pollara will continue with Distribution By Air post-closing. Mr. Eagen will serve as Distribution By Air’s Vice President of Operations for the Eastern Region from Somerset, New Jersey. Mr. Pollara will continue as Vice President of Operations for the Western Region from Los Angeles, California.

Supplemental Pro Forma Information

We believe that supplemental disclosure of our adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for stock-based compensation and other non-cash costs is a useful measure for investors because it eliminates the effect of certain non-cash costs and provides an important metric for our business.  A reconciliation of annual pro forma adjusted EBITDA amounts to net income, the most directly comparable GAAP measure is as follows:

(Amounts in 000’s) PreliminaryPro Forma GuidanceFiscal Year EndedJune 30, 2012     Pre-Transaction    
      Outlook Fiscal Year EndedJune 30, 2011            
                         
Net income $ 3,300   $ 2,417              
                         
Net interest expense   800     200              
Income tax expense   2,000     1,482              
Depreciation and amortization   2,000     1,119              
                         
EBITDA   8,100     5,218              
Stock-based compensation and other                                    
non-cash charges   400     132              
Loss on litigation settlement       150              
Severance costs   500                  
                         
Adjusted EBITDA $ 9,000   $ 5,500              
                           

 

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

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Wednesday, March 30, 2011 at 4:00 pm, ET to discuss the contents of the release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using account number 286 and conference ID number 370128. The call will also be webcast and may be accessed via Radiant’s web site at http://radiantdelivers.com or through www.InvestorCalendar.com.

About Distribution By Air

Distribution By Air (www.dbaco.com), founded in 1981, provides worldwide transportation and logistics services through its extensive network of exclusive agent and company owned offices across North America. To learn more about how to join the DBA network please call contact Jim Eagen at (800) 272-1379.

 

About Radiant Logistics (OTC QB: RLGT)

Radiant Logistics (www.radiantdelivers.com) is executing a strategy  to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers, to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including asset recovery/reverse logistics, order fulfillment, inventory management and warehousing. For more information about Radiant Logistics, please contact Founder and CEO Bohn Crain at (425) 943-4599.

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GEORGIA
Atlanta
Adcom Worldwide  (ATL)
5169 Southridge Parkway
Suite 106
College Park, GA
30349
T (404) 209-7071
F (404) 209-7603
Airgroup  (ATL)
4605 Coates Drive
Suite B
Fairburn, GA
30213
T (877) 821-7155
F (404) 941-1605
Distribution By Air  (ATL)
683 Atlanta South Parkway
Atlanta, GA
30349
T 877-991-2975
F 404-305-1629
MARYLAND
Baltimore
Distribution By Air  (BWI)
4711 Hollins Ferry Road
Suite 117
Baltimore, MD
21227
T 800-310-1033
F 410-863-1906
MINNESOTA
Bloomington
Radiant Global Logistics  (MSP)
396 American Blvd E
Bloomington, MN
55420
T 1-800-969-7928
Minneapolis
Airgroup  (MSP)
990 Lone Oak Road
Suite 122
Eagan, MN
55121
T (888) 463-8326
F (651) 681-0725
Distribution By Air  (MSP)
14575 Grand Avenue South
Burnsville, MN
55306
T 800-340-5097
F 952-378-2883
MASSACHUSETTS
Boston
Adcom Worldwide  (BOS)
240 William F. McClellan Hwy.
East Boston, MA
02128
T (800) 370-7700
F (617) 567-3968
Distribution By Air  (BOS)
256 Marginal street #3
Boston, MA
02128
T 800-999-3734
F 617-569-0040
CALIFORNIA
Burbank
Airgroup  (BUR)
26007 Huntington Lane
Suite #2
Valencia, CA
91355
T (800) 635-5726
F (661) 294-3996
Los Angeles
Adcom Worldwide  (LAX)
17727 S. SUSANA ROAD
RANCHO DOMINGUEZ, CA
90220
T (310) 928-7525
F (310) 410-0104
Airgroup  (LAX)
601 SOUTH FIGUERORA STREET
SUITE 4050
Los Angeles, CA
90017
T 213.623.2307
F 213.402.2409
Adcom Worldwide  (LAX)
International Services
19300 S. Hamilton Ave. Suite 195
Gardena, CA
90248
T (877) 288-4416
F (310) 216-9625
Distribution By Air  (LAX)
17727 SOUTH SUSANA ROAD
RANCHO DOMINGUEZ, CA
90220
F 310-886-5695
Radiant Global Logistics  (LAX)
1421 Charles Willard Street
Carson, CA
90746
T (866) 225-5289
F (310) 743-8347
LAX@radiantdelivers.com
Oakland
Airgroup  (OAK)
2138 Myrtle Beach Lane
Danville, CA
94526
T 925-406-4631
F 925-406-4634
SAN DIEGO
Adcom Worldwide  (SAN)
33830 CHANNEL STREET
TEMECULA, CA
92592
F 626-638-3296
Airgroup  (SAN)
13691 Danielson S.
Ste A
POWAY, CA
92064
F 858-750-1211
Sacramento
Adcom Worldwide  (SMF)
4300 Raley Blvd.
Sacramento, CA
95838
T (877) 700-2700
F (916) 922-6600
San Francisco
Adcom Worldwide  (SFO)
156 South Spruce Ave
Suite 211
South San Francisco, CA
94080
T (800) 219-9009
F (650) 871-7009
San Jose
Adcom Worldwide  (SJC)
4300 Raley Blvd
Sacramento, CA
95838
T (877) 700-2700
F (916)-922-6600
Airgroup  (SJC)
1972 HARTOG DRIVE
San Jose, CA
95131
T (877) 885-1840
F (408) 573-7600
Santa Ana
Adcom Worldwide  (SNA)
2346 E Walnut Avenue
Fullerton, CA
92831
T 714-870-7447
F 714-870-4647
ILLINOIS
Chicago
Radiant Global Logistics  (ORD)
800 N. Thomas Drive
Bensenville, IL
60106
F (847) 881-0881
Airgroup  (ORD)
610 Supreme Drive
Bensenville, IL
60106
T (800) 935-6588
F (847) 297-3985
Distribution By Air  (ORD)
1110 Lake Cook Road
Suite 245
Buffalo Grove, IL
60089
T 800-774-8376
F 847-215-0090
OHIO
CVG
Radiant Global Logistics  (CVG)
1150 Aviation Blvd.
Hebron, KY
41048
T 888-493-2744
F 859-371-8159
Cincinnati
Adcom Worldwide  (CVG)
1009 Sargent St.
Cincinnati, OH
45203
T (513) 241-4080
F (513) 241-3719
Airgroup  (CVG)
1512 Distribution Dr.
Burlington, KY
41005
T (859) 283-9890
F (859) 283-9903
Cleveland
Adcom Worldwide  (CLE)
16115 Puritas
Cleveland, OH
44135
F (216) 676-0042
Columbus
Airgroup  (CMH)
3614 Lake Mead Drive
Grove City, OH
43123
T (888) 404-4446
F (877) 302-8947
SOUTH CAROLINA
Charleston
Airgroup  (CHS)
102 W 8th North St.
Unit E
Summerville, SC
29483
T (800) 541-6470
F (843) 871-4968
Greenville
Adcom Worldwide  (GSP)
150 West Phillips Road
Suite H
Greer, SC
29650
T (864) 848-2886
F (864) 848-2711
NORTH CAROLINA
Charlotte
Adcom Worldwide  (CLT)
3401 INTERNATIONAL AIRPORT DR.
SUITE 200
Charlotte, NC
28208
T (704) 405-0691
F (704) 329-0315
Airgroup  (CLT)
218 Sigel Rd.
Fort Mill, SC
29715
T (800) 613-5959
F (803) 548-2951
Distribution By Air  (CLT)
1800 Associates Lane
Suite G
Charlotte, NC
28217
T 980-224-8451
F 980-224-8454
TEXAS
Dallas/Ft. Worth
Airgroup  (DFW)
801 B Port America Pl.
Grapevine, TX
76051
F (817) 488-4840
Houston
Airgroup  (IAH)
2700 Greens Road
Bldg. K Ste 400
Houston, TX
77032
T (866) 449-7001
F (281) 449-0992
Laredo
Radiant Global Logistics  (LAR)
4209 Pan American Blvd.
LAREDO, TX
78045
T 855-205-4908
F 956-790-0231
Radiant Global Logistics  (LRD)
216 West Village Blvd.
Suite 301
Laredo, TX
78041-2322
T 888-759-2200
F 956-728-8338
McAllen
Adcom Worldwide  (MFE)
3620 W MILITARY HWY
McAllen, TX
78503
F 956-213-8625
Radiant Global Logistics  (MFE)
1501 International Blvd,
Suite 500
Hidalgo, TX
78557
T 866-301-8326
SAT
Airgroup  (SAT)
3900 N. 10th Street
Ste. #1050
McAllen, TX
78501
San Antonio
Adcom Worldwide  (SAT)
9033 Aero Drive
Suite 200
San Antonio, TX
78217
T (210) 826-0860
F (210) 826-0064
COLORADO
Denver
Adcom Worldwide  (DEN)
16600 E 33rd Avenue
Unit 26
Aurora, CO
80011
T (888) 329-0702
F (303) 344-2302
Airgroup  (DEN)
14114 E. 100th Ln
Commerce City, CO
80022
T 855-550-6006
F 303-289-8082
Distribution By Air  (DEN)
11100 East 55th Avenue
Suite C
Denver, CO
80239
T 877-251-1791
F 303-783-4836
MICHIGAN
Detroit
Radiant Logistics Partners  (DTW)
25911 Northline Commerce Dr.
Suite 300
Taylor, MI
48180
T 800-521-1042
F 734-893-6645
OREGON
Eugene
Airgroup  (EUG)
24350 SE Bohna Park Road
Boring, OR
97089
T (800) 410-3454
F (503) 658-3569
Portland
Radiant Global Logistics  (PDX)
5440 SW Westgate Drive
Suite 325
Portland, OR
97221
T (800) 492-0107
F (503) 233-1522
FLORIDA
Fort Lauderdale
Adcom Worldwide  (FLL)
2640 Hollywood Blvd.
Suite 207
Hollywood, FL
33020
T 866-971-3247
F 954-927-4455
Distribution By Air  (FLL)
701 SE 32nd Court, Ste 205
Fort Lauderdale, FL
33316
F 954-527-1838
Miami
Airgroup  (AGE)
2500 NW 79TH AVE
SUITE 122/123
DORAL, FL
33122
T 305-909-2243
F 305-851-5222
Adcom Worldwide  (MIA)
2125 NW 86TH AVE
Doral, FL
33122
T (866) 612-3266
F (305) 471-4807
Orlando
Adcom Worldwide  (MCO)
6745 Tamarind Circle
Orlando, FL
32818
T (407) 219-4883
F (407) 857-4672
Airgroup  (MCO)
2425 E Landstreet Rd Ste 700
Orlando, FL
32824
T 407-855-7751
F 407-855-7775
Tampa
Adcom Worldwide  (TPA)
5901 Benjamin Center Dr.
Suite 105
Tampa, FL
33634
T (888) 887-3747
F (813) 864-6661
Airgroup  (TPA)
5919 Fitzgerald Road
Odessa, FL
33556
T (800) 982-5096
F (813) 876-6711
PENNSYLVANIA
Harrisburg
Airgroup  (MDT)
900 Calcon Hook Rd
STE: 8
Sharon Hill, PA
19079
T (888) 313-1350
F (610) 543-5588
Philadelphia
Airgroup  (PHL)
28 South Main Street
2nd Floor, Suite 1
Allentown, NJ
08501
T (800) 892-2133
F (855) 208-9576
Distribution By Air  (PHL)
677 West Dekalb Pike
Ste 350
King of Prussia, PA
19406
T 800-310-1033
F 410-863-1906
Radiant Global Logistics  (PHL)
514 Kaiser Drive
Folcroft, PA
19032
T 800-719-0001
F 610-586-5511
Pittsburgh
Adcom Worldwide  (PIT)
1407 Parkway View Dr.
Pittsburgh, PA
15205
T 877-787-1020
F 412-787-2222
Adcom Worldwide  (PIT)
1407 Parkway View Dr.
Pittsburgh, PA
15205
T 877-787-1020
F 412-787-2222
CONNECTICUT
Hartford
Adcom Worldwide  (BDL)
12 Cedar St.
Unit E
East Hartford, CT
06108
T (800) 536-2326
F (860) 216-6878
Distribution By Air  (BDL)
70 Glendale Circle
Windsor Locks, CT
06096
INDIANA
Indianapolis
Airgroup  (IND)
5700 Minnesota, A-3
Indianapolis, IN
46241
T 800-969-2567
F 317-244-2609
HAWAII
Kahului
Airgroup  (OGG)
283 Lalo Street
Unit 202
Kahului, HI
96732
T 808-877-0088
F 808-877-0080
MISSOURI
Kansas City
Distribution By Air  (MCI)
609 EAST 17TH STREET
Kansas City, MO
64108
T 888-248-3554
F 816-880-0022
St. Louis
Airgroup  (STL)
4555 James S McDonnell Blvd
St. Louis, MO
63134
T (888) 423-5938
F (314) 423-6008
NEVADA
Las Vegas
Airgroup  (LAS)
4050 West Sunset Road
Suite B
Las Vegas, NV
89118
T (800) 688-6909
F (702) 798-8026
Reno
Airgroup  (RNO)
4348 Loreto Lane
Reno, NV
89502
T (530) 402-9108
F (775) 657-8649
ARKANSAS
Little Rock
Distribution By Air  (LIT)
1601 Westpark Drive
Suite 4C
Little Rock, AR
72204
F 501-725-4901
TENNESSEE
MEM
Radiant Global Logistics  (MEM)
4320 Executive Drive
Suite 200
Southaven, MS
38672
NEW HAMPSHIRE
Manchester
Airgroup  (MHT)
125 Aviation Avenue
Suite 5
Portsmouth, NH
03801
T 866-344-4248
F 603-431-1621
WISCONSIN
Milwaukee
Airgroup  (MKE)
3383 East Layton Avenue
2nd Floor
Cudahy, WI
53110
T (414) 481-6161
F (414) 481-5920
NEW YORK
New York City
Adcom Worldwide  (JFK)
145 Hook Creek Blvd
Bldg B6B 2nd Floor
Valley Stream, NY
11581
T (800) 221-6020
F (516) 593-1635
Radiant Global Logistics  (JFK)
222 Crossways Park Drive
Woodbury, NY
11797
T 888-456-6602
F 718-995-0821
D.C. Metro
Northern Virginia
Airgroup  (BWI)
44190 Waxpool Rd.
Ste. 177
Ashburn, VA
20147
T (800) 297-6845
F (703) 483-8566
Washington DC
Adcom Worldwide  (DCA)
5655-D General Washington Dr
Alexandria, VA
22312-2403
T (800) 486-7447
F (703) 684-3925
OKLAHOMA
OKLAHOMA CITY
Adcom Worldwide  (OKC)
4020 Will Rogers Parkway
Suite 600
OKLAHOMA CITY, OK
73108
T 855-711-1111
F 405-516-1363
Tulsa
Adcom Worldwide  (TUL)
10514 E PINE STREET
TULSA, OK
74116
T 800-585-8326
F 918-688-0329
Airgroup  (TUL)
160 S 122nd East Avenue
Tulsa, OK
74128
T (800) 934-3243
F (918) 438-0263
NEBRASKA
Omaha
Airgroup  (OMA)
11516 Nicholas Street
Suite 303
Omaha, NE
68154
T 888-665-7284
F 402-451-7822
Distribution By Air  (OMA)
5404 N 99th St.
Omaha, NE
68134
T 402-346-1141
F 402-346-1161
ARIZONA
Phoenix
Radiant Global Logistics  (PHX)
733 W. 22nd St
Tempe, AZ
85282
F 480-634-0834
Airgroup  (PHX)
1425 West 12th Place
Suite 101
Tempe, AZ
85281
T (800) 279-4250
F (480) 921-8635
Distribution By Air  (PHX)
3235 E Jackson
Phoenix, AZ
85034
T 877-446-1141
F 866-832-1161
TUCSON
Distribution By Air  (TUS)
1067 N. INDEPENDENCE AVE
TUCSON, AZ

Tuscon
Airgroup  (TUS)
1254 South Avienda Sirio
Tucson, AZ
85710
T 520-901-0306
F 520-300-5246
UTAH
Salt Lake City
Adcom Worldwide  (SLC)
5106 West Amelia Earhart Drive
Unit C
Salt Lake City, UT
84116
T (866) 364-3512
F (801) 364-3503
Distribution By Air  (SLC)
2905 W Parkway Blvd
Salt Lake City, UT
84119
T 801-410-4187
F 801-410-4747
Ontario
Toronto
Adcom Worldwide  (YYZ)
556 BRYNE DRIVE
UNIT 20
BARRIE, ON
L4N 9P6
T (905) 565-5755
F (905) 565-8332
Airgroup  (YYZ)
50 Fasken Drive
Unit 22
Toronto, ON
M9W 1K5
T (800) 263-1975
F (416) 640-0363
British Columbia
Vancouver BC
Airgroup  (YVR)
19088 25th Avenue
Unit 101-103
Surrey, B.C.
V3Z 3V2
T (800) 800-9536
F (604) 538-7122
KANSAS
Wichita
Airgroup  (ICT)
100 S Market St.
Suite 2G
Wichita, KS
67202
T 316-413-6111
F 316-755-9833
NEW JERSEY
Woodbridge
Radiant Global Logistics  (EWR)
10 Woodbridge Center Drive
Ste 1010
Woodbridge, NJ
07095
T 800-272-1379
F 732-874-7001
Radiant Headquarters
405 114th Ave SE
Third Floor
Bellevue, WA 98004
Toll Free: (800) 843-4784
Local: (425) 462-1094
Fax: (425) 462-0768