Radiant Logistics Announces Results For The Third Fiscal Quarter Ended March 31, 2023
Results impacted by macro-economic trends in transportation industry but show improvement over comparable pre-pandemic period
RENTON, WA May 10, 2023 – Radiant Logistics, Inc. (NYSE American: RLGT), a technology-enabled global transportation and value-added logistics services company, today reported financial results for the three and nine months ended March 31, 2023.
Financial Highlights – Three Months Ended March 31, 2023
- Revenues decreased to $244.2 million for the third fiscal quarter ended March 31, 2023, down $197.1 million or 44.7%, compared to revenues of $441.3 million for the comparable prior year period. Excluding $62.2 million in project charter business in the year ago period, revenues were down $134.9 million or 35.6%. Revenue increased $38.2 million or 18.5% when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
- Gross profit decreased to $63.8 million for the third fiscal quarter ended March 31, 2023, down $16.3 million or 20.3%, compared to gross profit of $80.1 million for the comparable prior year period. Gross profit increased $14.2 million or 28.6% when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
- Adjusted gross profit, a non-GAAP financial measure, decreased to $67.0 million for the third fiscal quarter ended March 31, 2023, down $16.5 million or 19.8%, compared to adjusted gross profit of $83.5 million for the comparable prior year period. Adjusted gross profit increased $14.3 million or 27.1% when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
- Net income attributable to Radiant Logistics, Inc. decreased to $4.2 million, or $0.09 per basic and $0.08 per fully diluted share for the third fiscal quarter ended March 31, 2023, down $9.4 million or 69.1%, compared to $13.6 million, or $0.27 per basic and fully diluted share for the comparable prior year period. Net income attributable to Radiant Logistics, Inc. increased $1.3 million or 44.8% when compared to the quarter ended March 31, 2019, the most recent comparable pre‑pandemic period.
- Adjusted net income, a non-GAAP financial measure, decreased to $8.2 million, or $0.17 per basic and fully diluted share for the third fiscal quarter ended March 31, 2023, down $7.9 million or 49.1%, compared to adjusted net income of $16.1 million, or $0.32 per basic and 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 net income increased $2.6 million or 46.4% when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
- Adjusted EBITDA, a non-GAAP financial measure, decreased to $11.6 million for the third fiscal quarter ended March 31, 2023, down $11.0 million or 48.7%, compared to adjusted EBITDA of $22.6 million for the comparable prior year period. Adjusted EBITDA increased $3.2 million or 38.1% when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
- Adjusted EBITDA margin (Adjusted EBITDA expressed as a percentage of adjusted gross profit), a non-GAAP financial measure, decreased to 17.2% or 980 basis points, for the third fiscal quarter ended March 31, 2023, compared to Adjusted EBITDA margin of 27.0% for the comparable prior year period. Adjusted EBITDA margin increased 120 basis points when compared to the quarter ended March 31, 2019, the most recent comparable pre-pandemic period.
About Radiant Logistics, Inc.
Radiant Logistics, Inc. (www.radiantdelivers.com) (NYSE American: RLGT) is a publicly traded third party logistics company providing technology-enabled global transportation and value added logistics solutions primarily to customers based in the United States and Canada. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding along with truck and rail brokerage services to a diversified account base including manufacturers, distributors and retailers which it supports from an extensive network of Radiant and agent-owned offices throughout North America and other key markets around the world. Radiant's value-added logistics services include warehouse and distribution, customs brokerage, order fulfillment, inventory management and technology services.
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; 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 larger strategic operating partners; our compliance with financial and other covenants under our senior 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 or any other health pandemic or environmental event on our operations and financial results; continued disruptions in the global supply chain; higher inflationary pressures particularly surrounding the costs of fuel; potential adverse legal, reputational and financial effects on the Company resulting from the ransomware incident or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents, like the ransomware incident; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our need to restate our financial statements; our longer-term relationship with our senior lenders as a consequence of our need to restate our financial statements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during 2023 certain material weaknesses in our internal controls over financial reporting, 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 Part 1 Item 1A of this report. 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.