Operator: This afternoon, Bohn Crain, Radiant Logistics’ Founder and CEO; and Radiant’s Chief Financial Officer, Todd Macomber, will provide a general Business Update and discuss Financial Results for the company’s Third Fiscal Quarter Ended March 31, 2023. Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference call may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward-looking statements on its current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the company that may cause the company’s actual results or achievements to be materially different from the results or achievements expressed or implied by such forward-looking statements.

While it is impossible to identify all the factors that may cause the company’s actual results or achievements to differ materially from those set forth in our forward-looking statements, such factors include those that have been in the past and may be in the future be identified in the company’s SEC filings and other public announcements, which are available on the Radiant website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now I’d like to pass the call over to Radiant’s Founder and CEO, Bohn Crain. Over to you.

Bohn Crain: Thank you. Good afternoon, everyone, and thank you for joining in on today’s call. Let me start by saying it’s never dull in freight forwarding. The volatility that we have seen in the market as we have come through the pandemic is unprecedented. As you can see from the release, our results for the March quarter were heavily impacted by the rapid softening of the freight market that has occurred in recent months. These quickly evolving market conditions have negatively impacted not only our results, but also the year-over-year comparison to our record results from the prior year period. While our core domestic forwarding services have been relatively durable, some of our smaller service lines including ocean imports, and intermodal and truck brokerage operations have been particularly hard hit as a result of the dramatic fall off from the robust operating environment that we experienced last year.

The confluence of shippers continuing to manage through elevated inventories, reduced imports, and a slowing economic environment is having a cascading effect across virtually every mode of transportation, where the balance of supply and demand has shifted from a tight market a year ago to one that is now oversupplied. We do believe we are at or near the bottom of the cycle and would expect markets to begin to find their way to more sustainable and normalized levels over the balance of calendar 2023. While our comparative year-over-year numbers are down significantly from the historically strong freight market created by the pandemic and associated supply chain disruptions, our results for the quarter ended March continued to trend meaningfully ahead of our historical financial results from the pre-pandemic era.

I view the fact that we generated over $11 million in adjusted EBITDA in our historically slowest seasonal quarter in what everyone recognizes as a very typical market environment as a very positive indicator for Radiant and our prospects as we come through the cycle. It is worth noting that we are in the strongest financial position in the history of the company. And having generated over $76 million in cash from operations through the nine months ended March 31, we remain virtually debt free and continue to make good progress with our stock buyback having acquired $5 million of stock through the nine months ended March 31 and another $4.2 million of our stock between March 31 and May 5. Our disciplined approach to capital allocation and low leverage continues to serve us well.

And we believe we are well positioned to navigate through this slower period, as shippers work through their remaining excess inventories and we find our way back to more normalized market conditions. Looking ahead, we also expect to continue our balanced approach to capital allocation through a combination of agent station conversions, synergistic tuck in acquisitions, and stock buybacks. Through this approach, along with our organic growth initiatives, we will continue to scale our business, leveraging our best in class technology and extensive global network, which we believe over time will continue to deliver meaningful value for our shareholders, operating partners and the end customers that we serve. With that, I’ll turn it over to Todd Macomber, our CFO to walk us through our detailed financial results, and then we’ll open it up for Q&A.

Todd Macomber: Thanks, Bohn, and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and nine months ended March 31, 2023. For the three months ended March 31, 2023, we reported net income attributable to Radiant Logistics of $4,183,000 on $244.2 million of revenues or $0.09 per basic and $0.08 per fully diluted share for the three months ended March 31. For the three months ended March 31, 2022 we reported net income attributable to Radiant Logistics of $13,567,000 on $441.3 million of revenues or $0.27 per basic and fully diluted share. This represents a decrease of approximately $9,384,000 of net income over the comparable prior year period, or 69.2%.

Our adjusted net income we reported $8,222,000 for the three months ended March 31, 2023, compared to adjusted net income of $16,056,000 for the three months ended March 31, 2022. This represents a decrease of approximately $7,834,000 or approximately 48.8%. Adjusted EBITDA, we reported $11,560,000 for the three months ended March 31, 2023, compared to adjusted EBITDA of $22,573,000 for the three months ended March 31, 2022. This represents a decrease of approximately $11,013,000 or approximately 48.8%. Moving along to the nine month results. For the nine months ended March 31, 2023 we reported net income attributable Radiant Logistics of $17,452,000 on $853.3 million of revenues or $0.36 per basic and $0.35 per fully diluted share. For the three months ended March 31, 2022, we reported net income attributable to Radiant Logistics of $27,715,000 on $1.08 billion of revenues, or $0.55 per basic and fully diluted share.

This represents a decrease of approximately $10,263,000 over the comparable prior year period, or 37%. Adjusted net income were reported $32,845,000 for the nine months ended March 31, 2023 compared to adjusted net income of $39,057,000 for the nine months ended March 31, 2022. This represents a decrease of approximately $6,212,000 or approximately 15.9%. Our adjusted EBITDA we reported $46,434,000 for the nine months ended March 31, 2023, compared to adjusted EBITDA of $54,534,000 for the nine months ended March 31, 2022. This represents a decrease of approximately $8,100,000 or approximately 14.9%. With that, I will turn the call back over to our moderator to facilitate any Q&A from our callers.

Operator: [Operator Instructions] Your first question is coming from Jacob Stephen from Lake Street Capital.

Operator: Your next question is coming from Elliot Alper of TD Cowen.

Operator: Your next question is coming from Mr. Jeff Kauffman from Vertical Research Partners.

Operator: Thank you, Jeff. And the next question is coming from Mike Vermut of Newland Capital. Mike, your line is live.

Operator: Your next question is coming from [Brandon Austin of Veneto].

Operator: Thank you, everybody. And that appears to be end of our Q&A session. I will now hand back over to Bohn for any closing remarks.

Bohn Crain: Thank you. Let me close by saying that we remain optimistic about our prospects and opportunities to continue to leverage our best-in-class technology, robust North American footprint, extensive global network of service partners, to continue to build on the great platform we have created here at Radiant. At the same time, we intend to thoughtfully re-lever our balance sheet and through a combination of agent station conversions, synergistic tuck-in acquisitions and stock buybacks, continue to create shareholder value. With that, I’ll offer my thanks and thank you for your continued support of Radiant Logistics.

Operator: Thank you, everybody. This does conclude today’s conference call. You may disconnect your lines at this time and have a wonderful day. Thank you for your participation.

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RADIANT LOGISTICS INC

Q3 2023

Earnings Transcript

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