WHEELS GROUP INC BELLEVUE, Wash., Feb. 12, 2015 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE MKT: RLGT), a domestic and international logistics services company, today reported financial results for the three and six months ended December 31, 2014.
Second quarter Financial Highlights (Quarter Ended December 31, 2014)
-- Revenues increased to $105.9 million, up $21.8 million and 25.9%
compared to revenues of $84.1 million for the comparable prior year
period.
-- Net revenues increased to $27.6 million, up $3.3 million and 13.5%
compared to net revenues of $24.3 million for the comparable prior year
period.
-- Net income attributable to common shareholders was approximately $0.3
million, or $0.01 per basic and fully diluted share, for the second
fiscal quarter of 2015, compared to net income of $0.2 million, or $0.01
per basic and fully diluted share, for the comparable prior year period.
-- Adjusted net income attributable to common shareholders was $1.6
million, or $0.04 per basic and fully diluted share, for the second
fiscal quarter of 2015, compared to adjusted net income attributable to
common shareholders of $1.8 million, or $0.05 per basic and fully
diluted share, for the comparable prior year period. Both periods are
calculated by applying a normalized tax rate of 40% and excluding other
items not considered part of regular operating activities.
-- Adjusted EBITDA increased 3.5% to $3.8 million for the second fiscal
quarter of 2015, compared to adjusted EBITDA of $3.6 million in the
comparable prior year period.
Network Expansion - Organic Growth
The Company announced further organic expansion of its network in the quarter adding a new operating location in Los Angeles, California operating as Distribution By Air and led by Kelli Spiri and David Frear.
Network Expansion - Acquisitions
In January of 2015, the Company announced its planned acquisition of Wheels Group, Inc. ("Wheels") (TSXV: WGI), one of the largest non-asset based third party logistics providers based in Canada. Wheels provides intermodal and truck brokerage operations in the United States and Canada and will bring significant geographic and service line expansion to complement the Company's freight forwarding operations. The cash and stock transaction is valued at CAD $95 million and is expected to be accretive to earnings, as adjusted for amortization of acquired intangibles. The transaction is expected to enhance customer relationships and facilitate cross-selling opportunities across the combined Radiant-Wheels Network. For the trailing 12 months ended September 30, 2014, Wheels generated total revenue of CAD $368 million, consisting of CAD $185 million in revenues attributed to its U.S. operations and CAD $187 million in revenues attributed to its Canadian operations, including CAD $4.0 million of intercompany transactions that eliminate in consolidation. The transaction is expected to close early in the second calendar quarter of 2015, subject to regulatory clearance, court approval of the Arrangement, Wheels shareholder approval and other customary conditions. Wheels' board of directors unanimously approved the transaction.
In December, the Company announced its acquisition of Don Cameron and Associates, Inc., a Minnesota based company that provides a full range of domestic and international transportation and logistics services across North America.
CEO Comments
"We continue to make great progress in executing our growth strategy at Radiant," said Bohn Crain, Founder and CEO. "We topped $105.0 million in revenues this quarter, a new milestone for the Company. We also continue to steadily grow our Adjusted EBITDA which was $3.8 million for the quarter ended December 31, 2014. As a reminder, we also made significant progress in one of our organic growth initiatives, adding six new operating locations from four different competing networks in recent months. On-boarding new strategic operating partners has historically been an important contributor to our organic growth and we believe this group of new operating partners will contribute as much as $25.0 million in revenues and $1.5 million in EBITDA to our bottom line on a run-rate basis starting in calendar year 2015. Based on the commission incentives we extended to these locations as part of the on-boarding process, our Adjusted EBITDA results for the quarter ended December 31, 2014 do not include any benefit from this new group of locations. The full benefit of these six new locations will be reflected starting with the quarter ended March 31, 2015. We continue to gain momentum in the agent-based forwarding community with more and more logistics entrepreneurs looking to align themselves with a strong financial partner with the technology, purchasing power and global network to deliver world-class solutions to their customers. We are in active discussions with a number of additional agent-station candidates and look forward to providing further updates as we welcome new partners to the network."
"We also continue to look for productivity improvements and in this quarter we took the opportunity to right-size our New Jersey facilities and exited what was the former corporate headquarters from one of our earlier acquisitions, Distribution By Air. We estimate that the annual savings associated on our transition to new facilities in New Jersey will be approximately $0.5 million per year."
Crain continued: "We are also very excited about our planned acquisition of Wheels, which we believe represents a great opportunity for our operating partners, shareholders and the end customers that we serve. Since we launched Radiant back in 2006, we have been looking for platform acquisition opportunities in the brokerage space to complement our core forwarding operations. Wheels is one of the largest bi-model brokerage operators in Canada offering both truck and rail brokerage services and also has a significant presence in the U.S. The Wheels transaction will bring us both geographic and service line expansion and uniquely positions us as one of the premier non-asset based third party logistics companies in North America. Those who have been following our story for a while will appreciate that the heart of our growth strategy has been our ability to differentiate ourselves in the marketplace by bringing new value to the agent based forwarding community. One of the ways we do this is by providing our operating partners with a robust and differentiated platform from which to service our end customers. Quite simply, no other agent-based forwarding network has the bi-modal brokerage capabilities or Canada-based solutions that we will now enjoy as part of the Radiant organization. We believe this is not only going to enhance and facilitate cross-sale opportunities across the combined Radiant-Wheels network but also make it that much easier to attract additional operating partners to our platform."
Crain concluded: "The financial attributes of the combined organization are also noteworthy. We are providing preliminary guidance for our fiscal year ending June 30, 2016, and excluding the impact of any further acquisitions, gain on litigation, or other unusual items, we are projecting adjusted EBITDA in the range of $27.4 - $31.2 million on approximately $775.0 - $825.0 million in revenues which equates to adjusted net income available to common shareholders in the range of $10.7 - $13.0 million, or $0.27 - $0.33 per basic and $0.26 - $0.32 per fully diluted share. Going forward we will continue to execute our multi-pronged growth strategy that includes both organic and acquisition growth initiatives. As we think about our opportunities for growth through acquisition, we do not see ourselves being limited by good quality acquisition opportunities. We have a robust acquisition pipeline. We do not see ourselves limited by access to capital. We continue to have ready access to capital to execute acquisitions. Our real limiting factor is the rate at which we can on-board and integrate the acquisitions that we make. Historically, all of our acquisitions have been done from our forwarding platform. Through the Wheels acquisition we will effectively have three platforms from which we can continue to complete tuck-in acquisitions: our legacy forwarding operations based in Bellevue, Washington, our bi-modal brokerage operations based in Chicago, and our Canadian platform based in Toronto. We will continue to cultivate acquisition opportunities across each of these platforms and based on our current pipeline expect to achieve run-rate revenues approaching $1.0 billion in calendar 2015 and look forward to providing updates on the acquisition front as things develop."
Second quarter ended December 31, 2014 - Financial Results
For the three months ended December 31, 2014, Radiant reported net income attributable to common shareholders of $327,000 on $105.9 million of revenues, or $0.01 per basic and fully diluted share. For the three months ended December 31, 2013, Radiant reported net income attributable to common shareholders of $195,000 on $84.1 million of revenues, or $0.01 per basic and fully diluted share.
For the three months ended December 31, 2014, Radiant reported adjusted net income attributable to common shareholders of $1,552,000, or $0.04 per basic and fully diluted share. For the three months ended December 31, 2013, Radiant reported adjusted net income attributable to common shareholders of $1,790,000, or $0.05 per basic and fully diluted share.
The Company also reported adjusted EBITDA of $3,766,000 for the three months ended December 31, 2014, compared to adjusted EBITDA of $3,640,000 for the three months ended December 31, 2013.
A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the three months ending December 31, 2014 and 2013 appears at the end of this release.
Six months ended December 31, 2014 - Financial Results
For the six months ended December 31, 2014, Radiant reported net income attributable to common shareholders of $1,337,000 on $204.2 million of revenues, or $0.04 per basic and fully diluted share. For the six months ended December 31, 2013, Radiant reported net income attributable to common shareholders of $1,287,000 on $160.9 million of revenues, or $0.04 per basic and fully diluted share.
For the six months ended December 31, 2014, Radiant reported adjusted net income attributable to common shareholders of $3,069,000, or $0.09 per basic and fully diluted share. For the six months ended December 31, 2013, Radiant reported adjusted net income attributable to common shareholders of $3,317,000, or $0.10 per basic and $0.09 per fully diluted share.
The Company also reported adjusted EBITDA of $7,427,000 for the six months ended December 31, 2014, compared to adjusted EBITDA of $6,752,000 for the six months ended December 31, 2013.
A reconciliation of the Company's adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the six months ended December 31, 2014 and 2013 appears at the end of this release.
Reconciliation of Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as defined under the Securities Exchange Commission ("SEC") rules such as adjusted net income, adjusted net income per share and earnings before interest, taxes, depreciation and amortization ("EBITDA"). We believe that supplemental disclosure of these amounts are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business that eliminates depreciation, amortization and certain other non-cash costs and other significant items that are not part of regular operating activities. A reconciliation of adjusted net income, adjusted net income per share and adjusted EBITDA for the Company's preliminary guidance for its pro forma fiscal year ending June 30, 2016 is as follows:
(in thousands, except for earnings per share)
Outlook
Fiscal Year Ending
June 30, 2016
-------------
Net income attributable to
Radiant Logistics, Inc. $ 4,166 - $6,484
Less: Preferred Dividend
Requirement $(2,046)
-------
Net income attributable to common
stockholders $ 2,120 - $4,438
Net income per common share:
Basic and Diluted $ 0.05 - 0.11
Weighted average shares
outstanding:
Basic shares 39,075,000
Diluted shares 40,875,000
Reconciliation of net income to
adjusted net income:
Net income attributable to common
stockholders $ 2,120 - $4,438
Adjustments to net income:
Income tax expense $ 2,857 - $4,403
Depreciation and amortization $12,703
Change in contingent
consideration $175
----
Adjusted net income before taxes $ 17,855 - $21,719
Less: Provision for income taxes
at 40% before preferred dividend
requirement of $2,046 $ (7,142) - (8,688)
--- ----------------
$ 10,713 - $13,031
Adjusted net income
Adjusted net income per common
share:
Basic $ 0.27 - 0.33
Diluted $ 0.26 - 0.32
Reconciliation of net income to
adjusted EBITDA: Outlook
Fiscal Year Ending
June 30, 2016
-------------
Net income attributable to Radiant
Logistics, Inc $ 4,166 - $6,484
Less: Preferred dividends $(2,046)
Net income attributable to common
stockholders $ 2,120 - $4,438
Adjustments to net income:
Preferred dividend $2,046
Interest expense - net $ 6,349 - 6,209
Income tax expense $ 2,857 - 4,403
Depreciation and amortization $12,703
-------
$ 26,075 - $29,799
EBITDA
$1,190
Share-based compensation
Change in contingent consideration $175
$ 27,440 - $31,164
Adjusted EBITDA
This supplemental financial information is presented for informational purposes only and is not a substitute for the 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 Friday, February 13, 2015 at 4:00 pm, ET to discuss the contents of this 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 conference ID number 13601126. This call is also being webcast and may be accessed via Radiant's web site at www.radiantdelivers.com.
About Radiant Logistics (NYSE MKT: RLGT)
Radiant Logistics, Inc. (www.radiantdelivers.com) is a non-asset based transportation and logistics services company providing domestic and international freight forwarding services and truck brokerage services through a network of Company-owned and strategic operating partner locations operating under the Radiant, Airgroup, Adcom, DBA and On Time network brands located throughout North America and an integrated service partner network serving other markets around the globe. We also offer an expanding array of value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to trends in the domestic and global economy, our ability to attract new and retain existing agency relationships, acquisitions and integration of acquired entities, availability of capital to support our acquisition strategy, our ability to maintain and improve back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations, outcomes of legal proceedings, competition, management of growth, potential fluctuations in operating results, and government regulation. More information about factors that potentially could affect Radiant Logistics, Inc. financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
RADIANT LOGISTICS, INC.
Consolidated Balance Sheets
December 31, June 30,
2014 2014
---- ----
ASSETS
Current assets:
Cash and cash equivalents $1,717,569 $2,880,205
Accounts receivable, net of allowance of $892,591 and
$1,034,934, respectively 63,415,609 65,066,555
Current portion of employee and other receivables 301,898 232,791
Income tax deposit 648,975 -
Prepaid expenses and other current assets 5,423,527 2,926,431
Deferred tax asset 389,178 925,208
------- -------
Total current assets 71,896,756 72,031,190
---------- ----------
Furniture and equipment, net 2,457,627 1,265,107
--------- ---------
Acquired intangibles, net 16,784,243 15,041,988
Goodwill 29,466,537 28,247,003
Employee and other receivables, net of current portion 6,924 22,070
Deposits and other assets 595,838 617,093
------- -------
Total long-term assets 46,853,542 43,928,154
---------- ----------
Total assets $121,207,925 $117,224,451
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued transportation
costs $46,449,015 $45,510,140
Commissions payable 6,616,239 5,569,671
Other accrued costs 2,479,798 2,517,415
Income taxes payable - 436,328
Current portion of notes payable 123,269 -
Current portion of contingent consideration 2,425,000 1,541,000
Current portion of lease termination liability 328,226 319,826
Other current liabilities 20,631 -
------ ---
Total current liabilities 58,442,178 55,894,380
---------- ----------
Notes payable, net of current portion 8,753,773 7,243,371
Contingent consideration, net of current portion 8,015,000 9,626,000
Lease termination liability, net of current portion 65,581 198,502
Deferred rent liability 702,234 560,248
Deferred tax liability 1,998,517 2,774,506
Other long-term liabilities 22,257 2,610
------ -----
Total long-term liabilities 19,557,362 20,405,237
---------- ----------
Total liabilities 77,999,540 76,299,617
---------- ----------
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares
authorized; 839,200 shares issued and outstanding,
liquidation preference of $20,980,000 839 839
Common stock, $0.001 par value, 100,000,000 shares
authorized; 34,704,864 and 34,326,308 shares issued and
outstanding, respectively 16,160 15,781
Additional paid-in capital 35,477,236 34,558,785
Deferred compensation (6,687) (9,209)
Retained earnings 7,654,080 6,317,473
--------- ---------
Total Radiant Logistics, Inc. stockholders' equity 43,141,628 40,883,669
---------- ----------
Non-controlling interest 66,757 41,165
------ ------
Total stockholders' equity 43,208,385 40,924,834
---------- ----------
Total liabilities and stockholders' equity $121,207,925 $117,224,451
============ ============
RADIANT LOGISTICS, INC.
Consolidated Statements of Operations
Three Months Ended December 31, Six Months Ended December 31,
------------------------------- -----------------------------
2014 2013 2014 2013
---- ---- ---- ----
Revenues $105,948,104 $84,143,519 $204,179,492 $160,845,380
Cost of transportation 78,355,731 59,836,432 150,262,336 113,317,792
---------- ---------- ----------- -----------
Net revenues 27,592,373 24,307,087 53,917,156 47,527,588
---------- ---------- ---------- ----------
Operating partner commissions 14,897,910 12,906,080 28,877,261 26,540,852
Personnel costs 6,976,480 5,396,200 13,536,426 9,887,803
Selling, general and administrative
expenses 2,882,218 2,627,915 5,530,284 4,892,249
Depreciation and amortization 1,099,713 1,241,656 2,378,794 2,071,754
Lease termination costs 395,086 - 395,086 -
Change in contingent consideration (170,796) (17,567) (720,796) (212,567)
-------- ------- -------- --------
Total operating expenses 26,080,611 22,154,284 49,997,055 43,180,091
---------- ---------- ---------- ----------
Income from operations 1,511,762 2,152,803 3,920,101 4,347,497
--------- --------- --------- ---------
Other income (expense):
Interest income 732 2,128 1,657 4,628
Interest expense (96,442) (495,293) (187,901) (1,016,456)
Loss on write-off of debt discount - (1,238,409) - (1,238,409)
Other 60,733 8,563 187,555 92,746
------ ----- ------- ------
Total other income (expense) (34,977) (1,723,011) 1,311 (2,157,491)
------- ---------- ----- ----------
Income before income tax expense 1,476,785 429,792 3,921,412 2,190,006
Income tax expense (616,491) (150,081) (1,518,417) (801,916)
-------- -------- ---------- --------
Net income 860,294 279,711 2,402,995 1,388,090
Less: Net income attributable to
non-controlling interest (21,555) (16,138) (43,592) (32,780)
------- ------- ------- -------
Net income attributable to Radiant
Logistics, Inc. 838,739 263,573 2,359,403 1,355,310
Less: Preferred stock dividends (511,388) (68,499) (1,022,776) (68,499)
-------- ------- ---------- -------
Net income attributable to common
stockholders $327,351 $195,074 $1,336,627 $1,286,811
======== ======== ========== ==========
Net income per common share -basic
and diluted $0.01 $0.01 $0.04 $0.04
Weighted average shares outstanding:
Basic shares 34,627,645 33,601,956 34,488,616 33,469,659
Diluted shares 36,184,653 35,379,494 36,005,995 35,262,202
RADIANT LOGISTICS, INC.
Reconciliation of Net Income to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Reconciliation of Net
Income per share to Adjusted Net Income per share
(unaudited)
As used in this report, Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles ("GAAP"). Adjusted Net Income and Adjusted Net Income per Share, EBITDA and Adjusted EBITDA are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant's business. For Adjusted Net Income, management uses a 40% tax rate for calculating the provision for income taxes before preferred dividend requirement to normalize Radiant's tax rate to that of its competitors and to compare Radiant's reporting periods with difference effective tax rates. In addition, in arriving at Adjusted Net Income and Adjusted Net Income per Share, the Company adjusts for significant items that are not part of regular operating activities. These adjustments include acquisition costs, transition, severance and lease termination costs, non-recurring litigation expenses as well as depreciation and amortization and certain other non-cash charges.
Adjusted EBITDA means earnings before preferred stock dividends, interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration, expenses specifically attributable to acquisitions, severance and lease termination costs, extraordinary items, share based compensation expense, non-recurring litigation expenses and other non-cash charges. We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges and other non-recurring charges. We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Adjusted Net Income and Adjusted Net income per Share, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Radiant's operating performance or liquidity.
Three Months Ended December 31, Six Months Ended December 31,
------------------------------- -----------------------------
2014 2013 2014 2013
---- ---- ---- ----
Net income attributable to
common stockholders $327,351 $195,074 $1,336,627 $1,286,811
Net income per common
share -basic and diluted $0.01 $0.01 $0.04 $0.04
Weighted average shares
outstanding:
Basic shares 34,627,645 33,601,956 34,488,616 33,469,659
Diluted shares 36,184,653 35,379,494 36,005,995 35,262,202
Reconciliation of net
income to adjusted net
income:
Net income attributable to
common stockholders $327,351 $195,074 $1,336,627 $1,286,811
Adjustments to net income:
Income tax expense 616,491 150,081 1,518,417 801,916
Depreciation and
amortization 1,099,713 1,241,656 2,378,794 2,071,754
Change in contingent
consideration (170,796) (17,567) (720,796) (212,567)
Lease termination costs 395,086 - 395,086 -
Acquisition related costs 577,506 74,887 672,277 140,455
Non-recurring legal costs 66,353 51,473 186,466 67,234
Amortization of loan fees
and OID 15,295 94,844 30,590 180,688
Loss on write-off of debt
discount - 1,238,409 - 1,238,409
--- --------- --- ---------
Adjusted Net Income before
income taxes 2,926,999 3,028,857 5,797,461 5,574,700
Provision for income taxes
at 40% before preferred (1,375,355) (1,238,942) (2,728,095) (2,257,280)
dividend requirement
Adjusted net income $1,551,644 $1,789,915 $3,069,366 $3,317,420
========== ========== ========== ==========
Adjusted net income per
common share:
Basic $0.04 $0.05 $0.09 $0.10
Diluted $0.04 $0.05 $0.09 $0.09
Three Months Ended December 31, Six Months Ended December 31,
------------------------------- -----------------------------
Reconciliation of net
income to adjusted EBITDA 2013 2014 2013
2014
----
Net income attributable to
common stockholders $327,351 $195,074 $1,336,627 $1,286,811
Preferred stock dividends 511,388 68,499 1,022,776 68,499
------- ------ --------- ------
Net income attributable to
Radiant Logistics, Inc. 838,739 263,573 2,359,403 1,355,310
Income tax expense 616,491 150,081 1,518,417 801,916
Depreciation and
amortization 1,099,713 1,241,656 2,378,794 2,071,754
Net interest expense 95,710 493,165 186,244 1,011,828
------ ------- ------- ---------
EBITDA 2,650,653 2,148,475 6,442,858 5,240,808
Share-based compensation 246,839 143,998 451,568 277,187
Change in contingent
consideration (170,796) (17,567) (720,796) (212,567)
Acquisition related costs 577,506 74,887 672,277 140,455
Non-recurring legal costs 66,353 51,473 186,466 67,234
Lease termination costs 395,086 - 395,086 -
Loss on write-off of debt
discount - 1,238,409 - 1,238,409
Adjusted EBITDA $3,765,641 3,639,675 $7,427,459 $6,751,526
========== ========= ========== ==========
As a % of Net Revenues 13.6% 15.0% 13.8% 14.2%
http://photos.prnewswire.com/prnvar/20110606/CL14193LOGO
Logo - http://photos.prnewswire.com/prnh/20110606/CL14193LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/radiant-logistics-announces-results-for-the-second-fiscal-quarter-ended-december-31-2014-300035620.html
SOURCE Radiant Logistics, Inc.
