RLGT - Earnings call transcript Q1 2019

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Operator

Good afternoon. This is your conference operator. This afternoon, Bohn Crain, Radiant Logistics' Founder and CEO of Radiant; and Radiant's Chief Financial Officer, Todd Macomber, will discuss financial results for the company's First Fiscal Quarter Ended September 30, 2018.

Following their comments, we will open the call to the questions. This conference is scheduled for 30 minutes. include of within Exchange XXXX XXXX. may the meaning Act call Act Securities and conference forward-looking the statements of of This the Securities company its statements about The events. these and future expectations projections on based has current forward-looking expressed and forward-looking materially These and risks, results different may the from assumptions to or statements. results achievements that uncertainties company's company the unknown actual forward-looking or the achievements subject such statements cause are implied known by about to or be

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

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

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

Bohn Crain

Good Thanks on afternoon joining in you today’s call. for operator. and thank everyone

$X.X of are up net million, XX.X% of results period. net million, EBITDA year $X.X up posted $X.X continued of million, over of our million million, income XX.X%; or net up improvement in and the to to common adjusted common shareholders $X.X XXXX. or million the $X.X in income performance prior $X.X allocable up $XX.X September shareholders $X.X allocable million comparable million; adjusted revenues XX.X%; strong pleased million, for to broad-based million financial We quarter or $XXX.X the revenues ended We of XX.X%; $XX.X report XX, or up

basis the prior margins year comparable XX% XX.X% revenue from to also points Our improved, period. up XXX net for

margins, the and prior across improvement in organization we up the improvement for to period. points also EBITDA addition, XX.X% year comparable We In good from XX.X% XXX saw adjusted our basis up X.X%, $XX.X Canadian intracompany excluding up revenues $XX.X U.S. and million, million, revenues year $X.X XX.X% period. comparable for we $XXX.X the million million and prior reported eliminations, saw and of of

U.S. XX.X%; million, operations and our period. up Canadian For comparable and $X.X reported net operations $X.X million the up over our year $XX.X prior XX.X% revenues, reported $X.X million million, and

to our On SAP on the progress transportation the continue management also new front, deployment have begun deploy of steady system the make operating application strategic of several we locations. and technology to our in

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

Todd Macomber

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

diluted stockholders share. $X.XX per ended reported income or and revenues, XXXX September $XXX.X months net allocable million common three the XX, on For of we to $X.XXX million basic of fully

costs. over share, a $X.XXX This of which period. increase gain net XXXX, allocable $XXX,XXX income included year the an of common lease months fully the or contingent transition consideration diluted basic represented $X.XX September stockholders prior of $XXX million ended we and For $XXX,XXX per million approximately and reported to three and on XX, $XXX,XXX on revenue, comparable of termination

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

XX%. months three represents September $X.XXX to an we or the increase of common million. approximately adjusted $X.XXX approximately XXXX, ended million This income net stockholders reported XX, of attributable For

EBITDA For XX, the from to months moderator adjusted an $X.XXX million Q&A our turn adjusted facilitate EBITDA, EBITDA With reported XXXX. call months million ended million XX, adjusted our September September three or of XX.X%. over we of This ended callers. of that, $X.XXX I for for three represents approximately the increase XXXX, to $X.XXX compared to the any will back

Operator

Thank first from Kevin Global go-ahead Please Sterling, question you. is The Instructions] [Operator Seaport Securities. sir.

Kevin Sterling

are How Todd. and Bohn afternoon, Good you? you. Thank

Bohn Crain

Good. How are you?

Todd Macomber

Doing well.

Kevin Sterling

Thank in row. on congrats another you quarter, nice and a very well. doing two I’m

Todd Macomber

Thank you.

Kevin Sterling

Yes.

are that like net where this line, seems revenue Radiant now? line? it a you're how Bohn, growing saw quarter. top you should than is, We got growing model Now, really point, you double-digit that faster And at Is is Logistics look lines, the we at those top your along rolling. things your but

Bohn Crain

item, historically of when modeling, said, how growth the the and about kind cost business. Yes. kind think marginal at people line double-digit about, should supporting of but the of We’ve to asked That really the kind gets of of that’s kind the of what have organic of the that's business growth, scalability – here. top-line and business our across seen digit the And EBITDA mid-single kind platform. we growth of solid we’ve incremental

at myself but conversation think revenue hold or right, to is, we gross it, and I the initiatives. line, organic line, of is investing say point hearing been one the clarification growth net margin we’ve the I’m like

quarter percentage We’re growth been as getting on the to well. we’re office seeing themselves of report margin gross of while to the at we’ve back quarter the leverage margin manifesting in bottom the benefits and seeing the actually more effect And line a solid able then that the the dollars those line. amplifying more was where and gross first efforts this

XXX year-over-year think it basis right points the up at of improvement was I comparable worth on period.

the of materialized of things talked So, come things the previously have and of had on described. that of as a lot all quarters forward we’ve about some repricing prior contracts those and we

Kevin Sterling

And with like leave wanted just that's how question to because about forward. think that we need listen going looks it I it you me, talk, happen. why to beginning That's to think Yes. to to I No. it's

congrats. probably So, of off, paying the fruits your so labor

Bohn Crain

you. Thank

Kevin Sterling

a growth, talk organic little about to like us that was you mentioned the what can You quarter? in bit

Bohn Crain

pretty a is clean This quarter.

one in acquisition, really been That have Sandifer We all year, of is have last almost insignificant very the but metrics. would it September in acquisition. respects very, small tuck-in financial of in the terms

So, here, you're organic. for are seeing the intents numbers that and purposes all

Kevin Sterling

Wow.

Okay, great.

Let me big ask picture you question. a

guess out way? with How about to new want your Now we've the a is in assume should that environment agents business, done call that your it deal now are think so those gotten think NAFTA I Canada – we’ve about you there as Canada, got we this an easy do headwinds positive – we selling deal impacting some in out of of new, to business? as

Bohn Crain

think I the in a have little will here people bit. seeing don’t help benefit of Q our who filed be it yet, will necessarily which

service about and results that the of be we’ve just of offering services year-over-year a of with kind up performance have And of necessarily and we admittedly the Canada because of in press our strategy one form The number the not talked in an beyond a Canadian just out segment. outstanding value-added but financial it’s really our really our terms to the Canada their reasons we in bundling the in in So, historically happier do. of are done north little stories team control, were jumping they’ve core guys that traction the the comparative news the with good release, exciting job. is of acquisition of couldn’t combination performance and Wheels but slow here gate wills has been of transportation of out gotten and what performance able leadership our in

Kevin Sterling

in us seen phenomenal, trends a for as that. month October, Also, the early about have perspective great. help saw second impact a well business? here Well, Yes, an of from as far can on of just talk the so freight the you thank we to your some maybe you are November with I of they week look the little November, bit and you growth, pretty and in so

Bohn Crain

seeing of pretty there. what and we in are we think remain the I others terms out bullish

positive So, see horizon, response to on would I nothing want tracking. we this which too quarter my into don’t back we I least but think, out to immediate at expect suggest get question, your in trend far over the this to skis, continue,

Kevin Sterling

Okay, Same here. thank you.

in question last this flow, for my it quarter and to right? my of So, debt X back be math, me between X quarter million the math, Bohn, have may is your added cash generated you X million some of envelope paid you million it looks so may down like by free looks like to the position, cash

Bohn Crain

That’s right. Yes.

the see million quarter. the right flow in which statement, of people from So, operations cash for operations we cash from Q, cash $X.X that will will see in the

Kevin Sterling

Okay, great.

a model Looking of at reported the few one numbers my you probably years. best it’s in

So, congrats.

Bohn Crain

much. very you Thank

Kevin Sterling

your for Appreciate today. time you Thank it.

Operator

go question next Kauffman, please is Jeff The ahead. Kauffman, from Capital Mr. Loop Markets.

Jeff Kauffman

Hi guys, can me? hear you

Bohn Crain

Jeff. and Hi, we clear. Yes, can. Welcome back. Loud

Jeff Kauffman

Thank you quarter. be Good fantastic congratulations, very back much. and to

Bohn Crain

Thank you.

Jeff Kauffman

around want Kevin's there lot line and and trade look I lot uncertainty, moving market, days is it’s with if of interesting, of the tariff. seem to because the levers a be thinking predicting of we they at follow-up you stock here to of end got a

people saying kinds the all avoid early to speculation. are and people want Some tariffs, was there just because of shipping

deceleration, seeing what of of around are little place? strengths get to stand, solid, or the the you this certain and from are feels able certain I you you been what you from or where businesses your try any stronger, in of forward, the you think context parts sense real, seeing parts bit you moving might industries kind have have a are any been can and geographies feels sitting of in business maybe this are where of said but a at look acceleration put business kind

Bohn Crain

the the organization. high a growth, health a the of Canada really I’ll forwarding of base, call, I core it’s is story in the At organic from and our way, and one just almost certainly every in level, aspect exciting the what financial of business which is the just of both our of heartbeat think meaningful operations, aspects come most

of the us area the Clipper going share the effect ability the what contract. of operations, recently recapture well. whipsawing with to and was rail doing for service by kind in the market really of We’re most kind The, with had of been traffic the capacity on that terms repricing was intermodal operation and and weakest the and

our working of kind that. been through way we’ve So,

if as to talking little direction. is a the kind about year-over-year doing heading mix, on pie with, part So, business Clipper. even begin the the down right better are probably laggard, a a to so was XX% smallest the represents basis it weeds of, And but the itself of a in is that piece of we're is Clipper we in that one, kind of had it bit group we in component starting the

that we so business. there are about certainly contracts heading the have that believe the of We reprice talked historically rather been think we terms to than able up performance too, particular I and in sideways of

Jeff Kauffman

Todd talk are in of And alluded and platforms? of your I improvements, had productivity you kind rollout bit what little think an there a about are to can us both inning seeing you what and give of you technology idea of terms the you

Bohn Crain

certainly per but a margin. Yes, se, EBITDA early then of it believe like think gross I as conversation well the just improvements innings, productivity of we about about of terms little like and to frame function it’s bit, as we talk to quarter a kind in this

terms this opportunities be, the in of forward. continue as of the I there not of there, think XX.X% incremental move is of we the printed we've it’s and right up think, lots the highest to history business, That performance the may company, in and if I quarter.

some here electronic SAP about. it’s of area the of installed through have system, of We partner SAP and excited have which aspects operating and different the any One of in or to working other a the having office quick we're gone our there’s some accounting there’s oriented terms underway and in that. those continue platform upgrade more processing on of accounting is, and fully in and deployment office back invest in productivity OCR and of, or technologies the invoicing we’re really connectivity processes kind trading through financial we're TMS couple is that streamline back number whether and to pay initiatives that for we that of

drive kind of office and kind different we of interesting a, very very that So, a can standpoint each rabbit to the of and robust down to trails have their own head from in technology platform. value now this kind leverage kind incremental back lot a of foundation of right

excited lean, So, about office in frame where we're a some of opportunities of not sexy, mean going that drivers may back the and and financial terms forward. too just what making but machine, sound within we fighting really our kind of that are sit

Jeff Kauffman

to lean, that mean, was you my mentioned I old, told XX think was but just Boy funny reference years [indiscernible]. fighting machine. I the It’s Tommy

Bohn Crain

age. our our We're age. showing showing We're

Jeff Kauffman

and This thank Well for I'm guys you. congratulations. was a terrific happy quarter, very you

Bohn Crain

you. Thank

Todd Macomber

you. Thank

Operator

further Mr. this to back Instructions] there over time. conference at [Operator Crain, Can the questions are no you? turn I

Bohn Crain

Absolutely.

Let the excited and me created. very growth remain with close we've on by our saying we at that Radiant, prospects we here bullish remain that very and platform progress

encouraged We initiatives. our long-standing our and acquisition deliver results remain a profitable improving by and growth combination committed to organic strategy through are to growth of

the now in advantage strategy marketplace. on in executing and forwarding a in Our technology XX-year puts position multi-brand further and balance more consolidating low networks leverage unique to market ongoing in our than to support first sheet us our consolidation agent-based investment

for we believe time shareholders, operating customers our that will value for in partners, support which Radiant and listening Logistics. persistent meaningful of we Thanks over We’re your pursuit and patiently deliver the this serve. end long-term of our vision, the

Operator

today's you dialing concludes in. This Thank for conference.

Radiant Logistics (RLGT) 8 Nov 182019 Q1 Earnings call transcript