Radiant Logistics (RLGT) 8 Feb 182018 Q2 Earnings call transcript

Company Profile

Participants

Bohn Crain	CEO
Todd Macomber	CFO
Jason Seidl	Cowen and Company
Kevin Sterling	Seaport Global Securities
Mark Argento	Lake Street Capital Markets
David Campbell	Thomas Davis and Company
Mike Vermut	Newland Capital

Call transcript

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Operator

This afternoon, Bohn Crain, Radiant Logistics' Founder and CEO and Radiant's Chief Financial Officer, Todd Macomber, will discuss Financial Results for the Company's Second Fiscal Quarter and Six Months Ended December 31, 2017.

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. be subject the and the or Company results achievements are and risks, Company's implied statements the or about from statements. assumptions that to by forward-looking such to achievements unknown known uncertainties actual results forward-looking These or different expressed materially may cause

that all factors impossible in the in materially may from be have Radiant set factors forth cause include achievements the website may While it future, at which and the the or available differ is Company's are forward-looking Company's other to such statements, our those to identify and on the past, that actual results filings the announcements, SEC those www.radiantdelivers.com. public in in identified

future In performance. addition, are indication past results not necessarily of an

call like Radiant's pass to Crain. Bohn I'd Founder CEO, to the over and Now,

Bohn Crain

our operations led everyone quarter of Thank adjusted today's of EBITDA over million on results million $X.X and prior X.X% X.X%, of and revenues We're warehouse million joining Dana. Good On solutions our added were connection million $XXX.X, XX.X% was $XX.X up Thanks December revenues you. ended $X.XX thank We service or quarter. income or net were XX for million core million $X.X and million you up for million X.X%. quarterly comparison, transportation of on report in $XXX.X adjusted net $X.X for the and was or $X.X quarter. 'XX, $X.X sequential strategy our posted pleased or the $X.X $XX.X a by revenues value improving the up net revenues up to new offering. call. our afternoon, of million in Canadian EBITDA bundling with of of customer wins adjusted with

year-over-year felt we over favorable pricing As of led last capacity past extreme quarter, a and result to the XX swings less pressures comparisons. have across our months, as margin industry discussed

enacted economy, favorable which and the of the from market XX% impact believe we is Jobs and more beneficiary 'XX. XX.X%, tightening for of the rate capacity. fiscal our to a Tax from the of recently healthy for we statutory of high old the environment XXXX and However, beginning freight our first We're Act, the benefit federal the Cuts which given are demand second the rate and also well positioned XX% primary the half XX% a year in is rate half reduction to new average for of of

'XX, cash earnings as tax quarter Given that after impact both per we've our cash and states XX a to will free of reduced of had new Commencing well rates all-in full we begin other overlay rate XX%. the full tax as we of rate with tax effective benefit share. flow XX%. had tax the historically will When positively an taxes, these been September the federal of our payer, tax ended impact we the recognize historically of

an estimating commencing and ended rate for are rate all-in ended an average tax then of with We estimated effective of effective September XX, XX, 'XX the XX% XX% quarter all-in June the year 'XX. tax

new progress With beginning locations Los of now refine locations four out in agency our we're system management anticipation meaningful make of user get our domestic and of excited company-owned and we feedback company-owned of in locations this to year. to and the the pilot technology Detroit, using are the to system continue on and now roll boarding also operating to front services SAP-based our providing expanded We SAP, our the later Angeles Phoenix, to continue Minneapolis. four have system to transportation

processes a our to to we new At our productivity us customers our same state-of-the-art enable partners provides the initiatives revenue and technology we that number financial we platform. facilitate to investment and serve. As deliver some ultimately, across with existing associated can our With we've walk with help the previously back-office detailed open will future acquisitions end and then up and our Todd to back-office ongoing of synergies through results accelerate it opportunity synergies over discussed, operating for time, our believe and technology strategic realization CFO to the that, Macomber, technology the streamline in of I'll turn it set unique Q&A.

Todd Macomber

December discussing Today we and the good and and EBITDA Bohn months for XX, adjusted adjusted Thanks results, financial afternoon, net six our everyone. will income be ended three including XXXX.

$X.XX diluted months to charge stockholders fully change XXXX, XX, we ended on $XXX,XXX income of for net of December common in per or reported three the share, attributable and including For basic consideration. million revenues $X,XXX,XXX $XXX.X contingent

ended months or stockholders basic the million This an net per XX, $XXX.X we of $X.XX of of $X,XXX,XXX three attributable and the XXXX, common period XX.X%. approximately on share. or represents diluted over revenues fully year comparable income reported increase For $X,XXX,XXX prior December to

For the common adjusted three months ended of attributable stockholders $X,XXX,XXX. December we XX, net to XXXX, reported income

three for ended attributable XXXX, XXXX. December represents income common ended XX, approximately stockholders $X,XXX,XXX. adjusted This December $X,XXX,XXX decrease three or XXXX, reported a EBITDA $X,XXX,XXX we compared represents a the months months to ended or approximately adjusted three adjusted We December XX.X%. reported of EBITDA the For XX, This of months for XX, the net XX.X%. approximately decrease of to of of $X,XXX,XXX $X,XXX,XXX

along the numbers. to Moving six-month

to in basic million months XX, $XXX,XXX $XXX.X for and six in on change contingent income net XXXX, and diluted or transition $XXX,XXX of gain revenues fully reported a termination and including costs. attributable lease of stockholders share, $X,XXX,XXX $X.XX December ended consideration common For we the per

shares. of approximately $XXX,XXX year period $X.XX $XXX attributable basic to an For the stockholders and revenues per prior fully XX, of X.X%. increase XXXX, This ended the over six December or net diluted represents months on comparable million of or reported we $X,XXX,XXX income common

common reported net the of XX, months For $X,XXX,XXX. to December ended stockholders six XXXX, we income attributable adjusted

XX.X%. $XX,XXX,XXX XXXX, six $X,XXX,XXX ended reported December the ended common EBITDA With turn of will the months adjusted we to the approximately We from for that six December XX, the decrease net over EBITDA into decrease For attributable or XX, XXXX, adjusted or to of call $X,XXX,XXX stockholders XX, callers. reported of XXXX, a back which I months income moderator six to a $XX,XXX,XXX months represents adjusted that, facilitate ended of December represents approximately to approximately our Q&A our of $X,XXX,XXX compared XX.X%. for

Operator

Thank you.

conducting be session. a now comes Our proceed from will [Operator Cowen Please with Company. instructions] of We Seidl question-and-answer line Jason first the your question. question and from

Jason Seidl

How guys Hey operator. Bohn. today? Hey doing you Thanks Tod. are

Bohn Crain

We're good. Thanks.

Jason Seidl

called up in more you type one have color a you out because questions, of obviously more couple end us Canada the than obviously. can Canadian you guys some strength give markets the So, business, some quick in of business on

some your do there. and model brokerage operations you up do You

move the to we some us coming should talk really this through model strength quarters? throughout So, to that what's of driving and the expect as we how flow

Bohn Crain

Thanks Jason. Sure.

it talked operations hope Canada, other background bit on bring about Toronto to a ultimately call, and But but we initiative U.S. some as this the in of but started last a in -- I the has guess we So, folks. markets for in we our little have Canadian has into the of little starting well. bit

we a number presence doing of value-added were and Wheels when different doing acquired of have they our Wheels, some through things acquisition warehousing. a in We Canada

bundling to the or ago. we've with strategy that the year we of by that's one with our it additional we reason new have transportation or had but We build services fully new evidence had been most value-added recently didn't being a the boarded. effectively then year and to we taken onboard And and Lomas out last our customers last saw a we utilized acquisition fully so we where continue warehousing begun in on Logistics quarter of tuck-in hadn’t up of saw on Canada, facility ramped quarter, customers

to so continue bring we with kind bundling look into the success the we've we strategy expertise explore lot marketplace, into America. gateway subject further So, actually success stickier North obvious to value a the can recently and markets that think a this of about differentiate customer, across customer of ourselves and a our in how relationship provide in Canada higher excited enjoyed creates to matter other particularly we're as in

to Canada as are we and Los Los for example in Angeles the Angeles our replicate the be marketplace. So, take customers of we're and being that some solution an seeing that that going our even have existing them warehousing we to if able in to turning can enjoying attention

the pure play days ultimately, and so you're initiatives see value-added increased now, the see to our transactional looked and growth we I we its we'll going think the to as margins characteristics and unbundle like transportation So, brokerage certainly with focus associated that warehousing warehousing our of of area narrative certainly in type some opposed more as move continued forward relationship. around a early but business we as business, margin internally

Jason Seidl

way, It different like could That's ask and to great bundled idea. guess the compare can think I what do of just have us a sounds very bit color, you business but maybe get you where this percent I days, to are give an now? early you that little you're Bohn

Bohn Crain

a can be word hard think the be on up we would do a same if into transactional I we facilities be growth to a incremental facilities of continue that's piece where our type out move opposed would the wins transportation. dollar press time. the right but it have think to it's out we as a we it's day, small isolate business -- fill and at percentage of value-added smaller us the basis. end But to think it's engine from doing our very Right expect express now. services piece we certainly in now, it, we we adding would the we're for to break I When over also break to but the chunky right the business, that of in grow be time, it's These customer as say fair multimillion and while Q, we and get I say detail the don't at use. down wins to it release revenues, se, per can the can

incremental get offering. So, of our the in clean a transportation service everybody read transportation core margins value-added and and that services we're the providing around can

Jason Seidl

the Guys Okay. time. That's great I color. appreciate

Bohn Crain

you. right. Thank All

Operator

Securities. from line with Our your from next comes Please question. question the Seaport Kevin proceed of Sterling Global

Kevin Sterling

doing? Hey Bohn How are you afternoon. and Good Todd.

Bohn Crain

Good. afternoon. Good

Kevin Sterling

Good. right. All

So, least right is from are of, tell or just maybe I think let me what wrong right me at I could I environment frame thinking kind am way. and the where if it and if about you the

favor it and storm excess the hit through of thinking to like running right now seems your the and inflection really are saw we and of, freight we this across the I that about kind it's you've company and a in your go and guys made as improved to really an excess last to changed and what you're margins. guys markets where it are the you kind an model. and of and that the capacity way asset get have go call kind point I now sloppy you are the in Am from opportunity markets the business weathered environment, price ground So, it in pricing where ready expand really price pricing margins willing get you've year

Bohn Crain

so. We certainly hope

I more, correctly little a sloppy. to that picture you the So, it build used term, think out on framed bit you

when of we firm contract asset-based everybody environment shippers the sloppy, up lost time. the were of year signed being So, into pricing, underlying advantage which dutifully that worth and guys a all for the at took is

So, the the at but way. and other time, shortly swung prices we've been that time, not the same with living same thereafter, at

but pull on and as we'll freely. transactional brokerage than that have an sense. didn't as side trouble and going So, and are pendulum we here And other trucking the more next began on as we're lift, all then pricing of opportunity we back as just suffered we we're got and But of business intermodal margin the a contractual we the side. about if of operations, that a participate, from over our had side, moved makes when to kind our business of swing. coming intermodal truck necessarily strong modality lot will, one-year up and on so intermodal prices it's push able other to the expecting no intermodal, the go -- the back compression reminder way front a brokerage and capture way result caught end We as between away U.S. to coming those if couple intermodal and coming lost our the all participate brokerage intended reset legacy truck that you move we're folks, for prices months contracts to expiring heavier others it then the a move in and higher all or prices natural of the didn't when to side truck brokerage so and think

repeat pricing business the our all think call. of here a rocketing to reasons we're way helpful we're be for intermodal we But So, to to pricing everybody going in relative I this our won't this in expecting to seeing benefit environment the intermodal all business. strong on very for it's

Kevin Sterling

I think so.

truck going stuff Your to the is market. from benefit in we're seeing what

So, this couple in some I really next to see calendar if months Is the should guess of I your numbers. you're you begin by contracts that of and heard the right… correctly, half these the we inflection second then year, that repricing

Bohn Crain

That's correct.

think pretty recess I by much June. everything

Kevin Sterling

You call option, the then And and it you me, this preferred I at to the year out that right call of by take as at that as preferred well? your have the about remind if of December end par. year, that think is too just we think end want this a Bohn, you option

Bohn Crain

that's Yeah correct.

in of line we that $X.X benefit to capacity far 'XX should have and after-tax and credit as facilities. $XX our we I do callable we were do drop choose the bottom within that's existing December think the instrument million So to million if to

Kevin Sterling

Right, you just credit re-did facilities. recently you because

thinking here don't as freight you we So, an that you know companies, mind, other would thinking when me of guys about seems basis? powerful. let you if all reduction generation to the the as obviously a thinking reform our how with could together, beneficiary get preferred it about it? flow possibly, free you on how about I out cash It think taken you're about are like that tax quite are to are be how just me the your annual you lead on path we

Bohn Crain

metaphor of as to think guess the shooting line, proverbial I ways certainly barrel obvious in we fish of drop to the Well the are flash different blinding both right, bottom a about think money the those in right. I

of integration You're the risk no benefit taxes get going the refinancing of the to and preferred. there's

cash those can certainly we to flow million mix dollars couple the So, a drop through of levers. incrementally free two

Kevin Sterling

basis. think when generation terms done, we maybe flow million? versus and cash it's we of $XX in think Can all annual potential an said Can free million of $XX up on

Bohn Crain

to modeling out not I'll back but -- a am on always going a I your Kevin, walk limb, to not I on twig.

Kevin Sterling

are line is cash generate kickers the light Okay. then an as got free But avenue bottom the you've business asset with flow well. to your tremendous model and companies

Bohn Crain

it's leverage non-asset-based on free thing. so to is capital good and trying cash shareholder at do we model really about flow not try where enjoy the that I'm we the that ultimate thesis Absolutely continue good to be to as value. feel our we characteristics whole No, our financial low and and strong create flexibility and got do about sit we structure

Kevin Sterling

the things good from mean of How anecdotes would rest is January describe companies we're off you're other a to all they're you it freight that some the Lastly, could hearing start with what that year. of off for but January seeing? a historically sometimes to January good of can some is reported, and January good weaker be start that encouraged the the

Bohn Crain

and stronger people seasonal it's ended seems quarter, is positive is most to normal. certainly but slow March than the quarter as and be It our typically

view is you're consistent So, with places. from our other what hearing

Kevin Sterling

And lastly rollout, better little maybe is like your planned technology on that as well. planned? even going and progressing It it's than a seems SAP or bit

regards anything in want Just to you to… there share

Bohn Crain

wins steady race the case and We're very in this going slow right.

a standpoint. So, quick go an shop very in And an our reminder, we're been from methodically SAP approach. trying to always as we've accounting

in end We in a offset Had services. finance our so with the want for in as we and We as have back We stations which system will to could if we we got domestic and hardening then our create it needed experience experience comments can locations from TMO integrated be out boarding CargoWise, and user And configured fully now to you SAP, begin rollout. will operational can are on forwarding legacy for new the working it stores debugging company-owned us the it their and and and we as getting TM. our the taking efficiency live outgrowing huge drive four between chose it go. a is side. and we that as a so users that positive we'll much agency and and we

think being and we a time, longer I it and made take So, short as but to a feel always with make like technology the right are these it thoughtful in getting we're cautious confident and and time done, I'm but did rollout we're I choice we where things comfortable to in and to We the than is increasingly there. all wish right forward going in already for we version good the that committed headed we takes would move but, and then de-risking and we rollout that was decision that it all the direction. we're and do it's work strategy

Kevin Sterling

had I this really got at your so back, questions. appreciate wind It time. and time to best really, your your sounds all do answering That's of you Great. like evening. luck the for you Thanks my

Bohn Crain

Thanks. right. All

Operator

question your Capital. question. Street with comes Argento from next your And Please Lake from proceed Mark

Mark Argento

Hey guys. Good afternoon.

see What's couple you It you're capacity? the of to and wanted fairly obviously area sounds in in tail second had year you're there grade this groups you utilization? of my in on, that where quick one more right part the always your capacity strategy terms are materials continue question terms been just on buying terms of the agent of and the tail And you to of it's the thesis on better in opportunity like additional strategy? and of getting an company playing see now efficiencies follow-ups, the that grade and then investment independent the sounds to handling the remaining is that a out deploy Just business, plans some of like do sit where M&A, strategy bullish in that focused where and it terms platform. adding that

Bohn Crain

sure. Yeah

I my leadership of team the Canadian some on question is interesting and So know call. listening in

the at bit go proverbial chopping add capacity. So, to more

So, my the yours, but more existing in our facilities. we to comments short capacity be approaching I than in to guarded more is relative even ears their have that answer are

getting of of accounts. a interest traction, are from a lot We really lot

At would consistent L.A. fine-tuned to ultimately, business the in So facility we the kind non-asset we see have emphasis, incremental vision transportation is. sake kind being in or value customers do not our being consider for junkie strategy would another bundling focus it's entirely of to guess next based. in to we're and dramatic to how should with of do But the need operating I'll Los it we continue transportation customer I fine-tune more and location, in value can feel with that. of and one what kind And before verticals services the And are and to domestic back side Angeles. we warehouse others capacity our and how always proposition of warehousing. our our that we're support really go. interested or I business deploy with that present say, of too as some for combined as model connect and consider of kind with locations our we something in-land further added on but how that a as L.A., that kind and what they be even candidly you operating do actually refer platform. broader like network to don't other against we're location value resources and for positioned the our stays where we and look our And which warehousing that of taking operations per we're on M&A of curious in within M&A in to really offering we've to opportunities that's get happy with at as in more we we I identified we Toronto in themselves in on know our to that accelerated warehousing of can same we I'm operate the facility are kind time, our long, certainly through flowing think

So, exclusively we're certainly not looking there.

other We second which of and continue for the M&A to or your kind stations look the including was agency conversions question. third of opportunities, part of tuck-in, acquisitions

to we make we've where time, our remain arms, people's about not as support partners want themselves. for we're talked out opportunities twisting of while present kind met. business So, to to those to support trying before operating them at be same as them, themselves, We're open here they meet the

So, to they we'll that long we entrepreneurs want they create if be and support access in that monetize and as entrepreneurs or it support welcome want and want as to them strategy.

question. answers hopefully your So that

Mark Argento

helpful. It’s

it is and entrepreneurs of a pal to things tired. the environment for to those In going any there? terms you've of additional the cycles, is Historically, a want little M&A things in question grown better the has there are or well is of done get to little deals terms a a correlation are part second great some when sell, these slow, and through there been propensity

Bohn Crain

Not circumstance necessarily. all I based mean, it's right. faction

about think more going someone's I the in partners of than in kind it's individual on. of economy think on and kind of what's terms experience life I going it's and world what's

driven dynamics. it's personal more by the So,

not XX an his to and be okay or not that is partner trailing and you to that's the than let's could help facilitate retire dynamic. folks example I'm ready saying go and need opportunistically like - not, are your off as like So, months you more I and be there so But go my exit, a not you're or trigger might you say, partner that to who could now. ready have would the so often

Mark Argento

providing like since that some there. responding is any are are kind follow guys to? And materials business driving add that's is what's value or Is uptick just that then it, the seeing centric, theme macro is terms there quick in e-commerce so of handling of the you you and one there, up, customer

Bohn Crain

to and your complex of you some ultimately the distribution needing able support omni to to channels to that has kind certainly a kind of and itself And various dynamics meeting to product just in of partners was requirements the role targeting and always strategies. push eCommerce because channel language multinationals their think Canadian Canada those of large point it's and in need and well. localization solution strategy, of part was I but be play Wheel's of it really dynamics have the all things. a those who focus of That original done and kind it's And right. cross-border

cross-sell we're part out So, of U.S. trying say, now when our to how continuing organization able those about be being here to U.S. And this the go we kind I in our very productive and in can help of just to within that kind theme to and of really how leverage opportunity and you to we're competency Those Canada? to is figure base we the also Canada. And and have then proving skillsets say conversations. would back strength back are customer our think across existing

Mark Argento

it. Thanks guys appreciate

Operator

proceed with Our Company. Please from and Thomson Campbell question. comes your from next Davis David question

David Campbell

report. air in expected comparable contractual. for taking increases significantly the up your contracts about when that in of is talking flooring Hi Thanks Bohn, case confused all have we business since International net would are not your revenues, a questions. more you're Todd. rates the August substantially. my gross revenue and I assuming case are business I'm increases. And know of the trucking rates all and substantially freight hi little by up

and activity year to looks with like looks but so shipment quarter and So, your transactional are only not slightly, typical it the revenues quarter year to slightly carrying intends it's like therefore up have substantially your that's would really business It be should it was. down than of and been industry. stronger

on? what's for explain those could please So so companies, substantial growth both in other you going numbers

Todd Macomber

of on air Well, ocean. porter I domestic true porting, would even I a we're of our within its by core the a piece domestic and only guess business, principally is porting so international business the begin our that's small

you're freight And boarding orange and two. numbers if our comparing as the associate international numbers you're trying so, an air to an between apple with

tell don't want... point. what you I to kind don't So, know that I else you know if on of

Bohn Crain

the Some did in have had charter work did had that some of very, margin significant mix. current then which of carried fair very that the net we occur had different in a amount period projects stations had ago we quarter. revenues we in And lower the profitable Notably product occurred some characteristics. business sizable not XXXX, year that

profits know you am So, host different it's mean was really I you two know But bigger particular you didn't so say year reasons. of ago million in net lot the going mean of I'm I there's But they was that several revenues. the but thinking I name that a net that it's to overall one new reasons the impacted host different quarter in one-time to reasons dollars more of that just a would if project a again, work had I that the occur that of know a example that for one reason. station, of

David Campbell

versus domestic to going international, up the international research air freight I domestic well. had as far as up be as know Well

exactly down your from a And million. so up net mean million costs your not business make is personnel And revenue is $X is, is sense formula year creates that going higher So, up, other slightly? revenues profits? $X a are thing this your not ago. that that are still it going doesn't only that's down is up I the

Bohn Crain

But you significantly. also also in got David paid commissions agents are factor to the to the down

ago the they're a I a station would some amount guys have of lot increased agent-based of in the paid fair period model the expense. to year earlier of a is that commission commission and referred business that So, where are these forwarding

that So, to got factor you've into.

personnel, corporate structure. agent-based owned outright were of bought part up we part store were and were in Those decent logistics personnel we the technology the They You're absolutely the right they company dedicated to then two size on transactions. business the period ago primarily stations are costs where the due overall network. Loman to year not the converted of the Loman's the

the those there. So are drivers

Your SG&A up to transactions. to going two is in the be those of with fact because facilities associated

David Campbell

Right.

Let’s do better six months. next in the can hope we

the better You keep some substantially pace for growth Thanks to revenue for shows questions. got the industry. to answering

Operator

proceed Please Capital. Newland with from Vermut Mike from comes your question next question. Our

Mike Vermut

to Hi So, bit guys I and on on that there. just you little are guess question Kevin's doing? how expand

our to our trying I'm understand how So, business contractual occur. on rate negotiations

between been and transportation stuck year in rates at those last purchasing locked we So rates with June. in March We've higher much rates.

of don't We and had that been we what increases we've growth Now my nine on a business calendar market. That's earnings truck That's Everything go months of double the then know much side. for we think absolute one should imply, we that booming contractual? what business renegotiation? just are can major our sense thinking there obviously in digit macro our on is of expect that XXXX past and you see much on margin to is the expect growth, rates? on see expansion, get the right? rate bid, how we're What these do And we're on how about you through So, out contractual witnessing rate significant that the correct. that's we've negative we inflection renegotiate what as question, hearing is these pure our should negotiations? EBITDA that is

Bohn Crain

I to earnings don't it's conduct prudent our customer conference call. our on think negotiations

and their everybody that narrative base environment I talking So, digit our increases But and that, negotiations. seems the by path. for about price to helpful that, going type be that and conducting would to teen a - in say us I'll a asset fact mid double underlying is pounding just not is chest guys I'm that to what be say the is, venture down is

So, on But and of drafting capacity our to for be going the on predict I here ultimately customers behind I to I say sit you the higher my negotiations we're or when and what they short my underlying and their with guys a be customers to they're wouldn't be. are think going And that's can't taking who know the outcome appropriate me our favorable environment strategies to prices drivers. believe and tight that for pricing are base of asset create going discussions. it

Mike Vermut

the roughly be have this - of positive – much of and much negotiations. much impact much it is And we much our been how side by then contractual? how then we How our business will once of how impacted on on how the by these will into get rates affected business this negative

Bohn Crain

I in brokerage with being precise contractual to do U.S. area to XX% our on business number. estimate balance I would side not XX% a the transactional. the the be have

Mike Vermut

forward a hopefully? huge going in us for ‘XX It’s factor

Bohn Crain

We see some improvement. should

Mike Vermut

fantastic. to debt down for And and be then with we free going rough taking numbers deal bit when think at hard only don't calculation isn't market this levels. debt $XX plus have flow goals start flow? for here getting back Kevin's I cash $XX on to free the million of million all little to net I we if our to are Index XX%, stock cash look pay is What a the up flow Do would of any it's us these and of do cash rest our we XXX% zero? stuck know, been Do we do give that we've trading to the The is what's stock pretty or kind more. acquisitions? a get come? the larger and Obviously, benefit maybe buy

Bohn Crain

and viable in we'll alternatives December do up what or M&A evaluate and as comes deploy of time the I to preferred with kind think are of pipeline opportunities. about our from 'XX we context to as the of of to going what continue capital. be and closer have we those think really see we're the how to questions will we options come part all our the as time narrative The of

equity stands a We would the continue mean use currency that M&A in that about that these there's that our we activity describing. quite as but of to carrying we to believe do of as the could for not doesn't capacity fair We're look a amount with capacity fair for be structure, of you're traditional have amount opportunities earnout debt reasons of considering combination a balance if interest even our and likely within without think we M&A income environments, we debt it equity. sheet

continue of So, that to on we'll have think evaluate I the with coming moment to XX, truth XXXX. December

Mike Vermut

I is M&A, to it about find it, preferred possible forgetting assume. trade but trade-offs as question where more hear M&A I bigger and the we the now? attractive That's the than between

Bohn Crain

I yes. think the answer is

deploying your relative bad can do well of -- value own is and M&A but to and depends we the our cash. enhance think structures on free meaningful we question the think continue capacity. noted factor-in But when that a you create that to point your for transactions to that earnout think investment I overall answer horizon, answer network's I income acquiring long-term not is generating stock part

Mike Vermut

looking good appreciate I to and 'XX, Excellent. forward Okay. it thanks. 'XX, sorry fiscal

Bohn Crain

right. you. Thank All

Operator

instructions] Our [Operator your question. next question [Walter]. comes with from proceed Please

Unidentified Analyst

if -- can was thanks. me? Yes, I you Hi you Bohn. wondering hear

Bohn Crain

you. Yes, I Thank can.

Unidentified Analyst

shortages, and those keep to provide is newspapers legacy may Are back playing discussed other that customers further I normal reprice not your will get take at hand, longer been truck if have about well. shortages little You to for current to to couple more bit of to the to you that continue come perspective also those that to going there to of gap mean how level. pricing as supply-demand to sitting up the driver see Radiant quarters that was contracts on I imbalance It likely to in cycle issue as a out? now. reading ELDs you wondering state being trying you pay that the factors while going are little But the the a some or may had some be narrow. reach a the Great. going during to may a of have could

Bohn Crain

capacity. we'll all the going less but I not things ultimately for aging that's -- trajectory opinions of to there front think but that trends word these of the personally haul the Yeah I going of I revert, of and going relative be of into about word, are some maybe think will right no of market cost a tight lot lead frantic but stabilize is macro sustainability and regulation well that's long But some underlying be long are do of up. to varying to revert the transportation, term right to might think here drivers the prices ELDs underlying intended

would here what think I it. So

big we to pass market So, to the effectively subject market the business, opportunity have transactional for our asterisk subject on. to prices the

except transactional forwarding rather and do that to margin. But environment hypothetically plus us just an to XX% the XX% nothing XX%, market competitor trying on a least transactional freight we would business. price that offering we the than that piece have if at for it with ebb doing cost business So the flow there's to opportunity preclude were to of

the of in side destination On service you from would over move they for locked certain provide which a away the origin a contractual equation, price what is of can an of happen to X transportation going your the given to to Y be with that place go time, assumption and plus it turned was where underlying no a period right. can be be cost to fixed out X there's

sure have time, an will would more but have my opportunity an with used that a over saddled answers of not your that's improvement be now margins or given of those and take will undertake opportunity thoughts You're contractual term. our part I normalized if will when the presume, brokerage cost reset of has contractual underlying margin, contractual of versus which work the kind to as that experiencing variability at compressed in of you are we the we that we depending the right we we of risk that type balance business. that and going for meaningful were case are kind a market for the through as the will are transactional that's we'll reasonable and I again assumptions it a the the the question, way so that then if reset business to or that it. that speak think been dynamic of business, around period our up, back here dynamic everybody's I'm not but But prices be

Unidentified Analyst

is $XX,XXX cost you the don't they are think to where relative part something you now? on do does, it I most the can for transportation if not? be answer call Yeah what will this that's I guess question that know or so

Bohn Crain

economy in up, get There couch with in else different more play to so going and sure are into equipment and things and equipment, many online I'm go off investment get you are and equipment more to get Well truck that going go XXXX drive coming the the including including different the as what's more everything happen prices answers. come people and right.

equipment really mobilize seasonally for will and this -- number what time into people to be. that you around What goes resources, is the price is slowest far tight. we the I So, tell higher the of as pontificate will can really, me are be now people capacity it and still year opportunity in

as strain peak further would back stays everything constant price. on be move So, there we into season

Unidentified Analyst

Thanks appreciate for I your Bohn. it. thoughts

Bohn Crain

right. you. All Thank

Operator

Crain back like There Bohn to at the to are I'd no for questions this floor time. further comments. turn closing over

Bohn Crain

Thank you.

investment for capacity which quarters. lead our in will listening from technology. improvement benefit the market prospects growth next of environment by our with that to ongoing a We believe continued we're Radiant Logistics. and here we will as Radiant the close saying me Let tightens we've to the over very flow we and that and benefits platform believe very remain Thanks model non-asset-based financial several support in created excited more bullish our progress from well we performance remain positioned of business favorable scalability and our at your on the and

Operator

teleconference. today's concludes That

your You this have time. may disconnect day. a at great lines and for your participation Thank you

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