Radiant Logistics Acquires Canada-Based Lomas Logistics
BELLEVUE, WA April 3, 2017 – Radiant Logistics, Inc. (NYSE MKT: RLGT), a third party logistics and multi-modal transportation services company, announced that, on April 1, 2017, it acquired Lomas Logistics, a division of L.V. Lomas Limited, through its wholly owned subsidiary, Wheels International Inc. Lomas Logistics operates as a third party logistics provider serving companies across a range of industries including consumer goods, healthcare, food, chemicals and technology and operates from locations in Ontario and British Columbia, Canada. Lomas Logistics, generated approximately CAD$17.0 million in revenues for calendar 2016, which resulted in approximately CAD$2.1 million in normalized adjusted EBITDA. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.
Lomas Logistics will transition to operate as Wheels International. Radiant’s Founder and CEO, Bohn Crain remarked, “The acquisition of Lomas Logistics enhances our ability to provide distribution services while leveraging our full suite of transportation services through the Radiant / Wheels network to a broader and more diverse group of target industries. We are thrilled to welcome Harry Smit and the Lomas Logistics team to the Radiant / Wheels organization. We expect the integration to take place quickly over the next couple of months.”
Crain continued, “Wheels serves as a platform to support our Canadian centric acquisition initiatives and the addition of Lomas Logistics is contributing to the further strengthening of our position in the Canadian marketplace. In addition, Lomas Logistics brings unique healthcare service offerings with licenses from Health Canada to distribute medical devices, pharmaceutical and natural health products which is expected to accelerate the development of a robust healthcare service offering for Wheels and Radiant. The scaling of our full distribution capabilities, including global inbound transportation and a full range of outbound transportation services, positions us to support the evolving needs for multi-channel fulfillment and distribution for many industries.”
Non-GAAP Financial Measures
This press release contains a financial measure, adjusted EBITDA, which is considered a “non-GAAP” financial measure under applicable Securities & Exchange Commission rules and regulations. This non-GAAP financial measure should be considered supplemental to and not a substitute for financial information prepared in accordance with generally accepted accounting principles. Our definition of this non-GAAP measure may differ from similarly titled measures used by others. The non-GAAP financial measure used in this press release adjusts for specified items that can be highly variable or difficult to predict. We view this non-GAAP financial measure as a means to facilitate management’s financial and operational decision-making, including evaluation of our historical operating results and comparison to competitors’ operating results. This non-GAAP financial measure reflects an additional way of viewing aspects of our operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP financial measure, may provide a more complete understanding of factors and trends affecting our business.
A reconciliation of adjusted EBITDA amounts to the most directly comparable GAAP measure attributed to Lomas Logistics for the year ended December 31, 2016 is shown below:
|Reconciliation of net income to normalized adjusted EBITDA||Year ended December 31, 2016|
|(CAD, in thousands)|
|Net income before taxes||$ 1,299|
Income tax expense
Depreciation and amortization
|Contractual reduction in compensation||292|
|Normalized adjusted EBITDA||$ 2,171|
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a comprehensive North American provider of third party logistics and multimodal transportation services. As a non-asset provider, with minimal investment in equipment, the company delivers 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.
About L.V. Lomas (NYSE MKT: RLGT)
L.V. Lomas is one of North America’s leading distributors of chemicals and ingredients, raw materials and packaging products founded in 1960 by Lloyd V. Lomas.
Cautionary Note Regarding Forward-Looking Statements
This report 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 report. 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 (including Lomas Logistics); our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; the occurrence of no adverse developments affecting domestic and international economic, political or competitive conditions within our industry; 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; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; and such other factors that may be identified from time to time in our Securities and Exchange Commission 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, 2016. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.