Radiant Logistics Acquires New York-JFK Based ALBS Logistics
BELLEVUE, WA February 27, 2012 – Radiant Logistics, Inc. (AMEX: RLGT), a domestic and international logistics services company, today announced it has acquired ALBS Logistics, a New York-JFK based, privately held company that provides a full range of domestic and international transportation and logistics services across North America. The Company paid approximately fifty percent (50%) of the expected purchase price at close with the balance payable in subsequent periods based on the future performance of the acquired operation.
Founded in 1997, ALBS services a diversified account base including manufacturers, distributors and retailers from its strategic international gateway location at the New York-JFK airport. From inception through the date of acquisition, ALBS operated as part of a competing national transportation group at New York’s JFK airport. Based on historic financial statements provided by its management, ALBS generated approximately $20.0 million in revenues for the twelve months ended August 31, 2011. On a post-closing basis, ALBS will operate as Radiant’s international gateway at the JFK airport supporting the Company’s 100+ company-owned and agency locations across North America and international partners around the world.
“We are proud to announce our partnership with Arthur Lih, Bob Sweet and the entire JFK team,” remarked Radiant’s Founder and CEO, Bohn Crain. “The ALBS organization is well known within our industry as one of the best performing operators in the market and we are very excited to have them choose us as their partner. We have purposefully positioned ourselves to bring value to logistics entrepreneurs like Arthur and Bob and believe that the ALBS transaction is representative of the broader pipeline of opportunities available to us in the marketplace. We also believe the transaction is further validation of the strength of our value proposition in the marketplace, which is to bring new value to the agent based forwarding community by: (1) leveraging our status as a public company to provide our partners with an opportunity to share in the value they help create; (2) providing a robust platform in terms of people, process and technology which translates into better purchasing power with our vendors and more sophisticated e-business solutions for our customers; and (3) offering a unique opportunity in terms of succession planning and liquidity for our station owners. We are still very early in the process and believe we will have the opportunity to welcome a number of additional like-minded entrepreneurs who can benefit from the Radiant platform.”
Crain continued: “We have been making good strides over the past 12 months with our recent up-listing to the NYSE Amex and progress on the acquisition front. With our recent acquisitions of the Distribution By Air network in April of 2011, the Laredo gateway in December of 2011 and now the ALBS transaction at JFK, our strategy continues to deliver solid growth. With the benefit of the ALBS transaction we are also providing preliminary guidance for our fiscal year ending June 30, 2013 of approximately $14.0 million in adjusted EBITDA on $330 million in annual revenues, up 33.3% over what we are projecting for our fiscal year ending June 30, 2012. This remains a very exciting time in the evolution of Radiant. The pipeline remains strong and we continue to enjoy significant financial flexibility to execute our growth strategy – for the benefit of our operating partners, shareholders and the end customers that we serve.”
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 its recent acquisitions of Distribution By Air, Laredo-based Isla International and ALBS for the most recent 12 months ended December 31, 2011, are indicative of the future financial performance of the combined group; that the anticipated cost synergies associated with the Distribution By Air transaction will be realized; and excludes the benefit of any additional acquisitions. A reconciliation of adjusted EBITDA to net income, the most directly comparable GAAP measure, appears at the end of this release.
Arthur Lih, of ALBS commented, “We are thrilled about joining Radiant. Through years of dedicated service, our customers have always remained our top priority whether they were here in U.S. or abroad. This philosophy has been key to our success. 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 and provide an opportunity for growth for our employees. We found that partner in Radiant. Radiant has a real appreciation for the needs for 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 team the opportunity to work as shareholders and participate in the value that we all help create.” Mr. Lih will continue as VP of Sales and Mr. Sweet as VP of Operations for Radiant’s JFK gateway location.
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 summary of historical and projected revenues and earnings, presented as a reconciliation of annual pro forma adjusted EBITDA amounts to net income, the most directly comparable GAAP measure is as follows:
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.