RLGT - Earnings call transcript Q2 2020

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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 31st 2019.

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 or 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

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

Bohn Crain

everyone, financial December today's on another Thank $XXX.X $XX and the revenues of thank you. ended call. quarter a second posting million to environment. million what for and XXXX, Good net revenues results of tough $X.X adjusted pleased recognized We're afternoon, joining as you of generally on report economic quarter for in was XX solid million, and very of EBITDA

$X.X million -- EBITDA quarter quarterly were the we net felt XXXX. September the on adjusted revenues up period. were sequential results and of headwinds, certainly the indicated year prior comparison, ended basis to call, comparable up quarterly industry-wide a a million, million We've and quarterly on sequential are but impact last to On a as our modest flat $X.X down relative for the our relatively $X.X down XXth relative revenues

period. in to $XX to results contributed record ago the disaster year reported project factors of work million relief period, ago in the our in including number difficult year our comparisons the non-recurring A

truck certain operations softness margin capacity general margin excess global business our associated Our pressures on brokerage and with exit decision associated the in in and calendar marketplace. market XXXX with to earlier that slower exists lower the trade

over market and prior the revenue period, Notwithstanding operations helped saw points in which over the comparable our EBITDA XXX basis in quarter. deliver million the $X.X these net from year cash adjusted to we for headwinds, $X.X million margins improved us

last also and addition, the December to XX, quarter of common stock begin average our In spent repurchasing of price share. we the in $X.XX took quarter buying XXX,XXX our opportunity for we this $X.X an million at stock, per shares ended

we our announced share repurchase XXXX. in growth As Radiant's discussed, stock XX shares stock not our of long-term common to price And previously accurately X through program December the current prospects. renewal authorizing buyback recently of of million the we regard, we reflect up the believe does that of

acquisition Pennsylvania, also Adcom partner Pittsburgh, inherent Network. Bonnie in Knoedler. Radiant of the significant some a Supporting owned locations very our and of remains earlier We by recent long-term agency made front purchase our the in partners owned to company both opportunity two a model on in announced the transition and Virginia Alexandria, our today progress operating operating

a through to and we strategy of combination to acquisition growth forward, deliver remain committed initiatives. long-standing profitable growth Looking our organic

meaningful which the partners cash value believe, in continue we we customers sheet, time, our same the on free our to incremental enjoy to operating that leverage disciplined growth. serve. organic continue and balance technology will drive for for acquisition flow We continue At our our and opportunities, investments to our and resources time, make end additional low shareholders, search we over sales platform strong deliver will

cash use multiples our along program continue of stock we remain integral of free flow. think part an this acquisition and capital our about As will we path, how buyback the allocation,

we'll open it walk through results some Q&A. us to Todd our and CFO up With detailed over financial to that, our then I'll for turn Macomber, it

Todd Macomber

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

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

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

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

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

for We ended reported months decrease for December a December adjusted of or approximately represents This XXst XX%. EBITDA $X,XXX,XXX to compared XXXX, EBITDA of XXst $XX,XXX,XXX $X,XXX,XXX the XXXX. three ended adjusted the months three of

the in that company period not the approximately impacted current -- mind Keep significant prior had the by relief million project disaster in favorably that work in EBITDA, period. did had which reoccur $X.X

results. to month along the six Moving income

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

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

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

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

for decrease of EBITDA compared reported XXXX. We EBITDA XXst six million This of $X,XXX,XXX approximately represents months to of for December the adjusted months a adjusted XXst $XX,XXX,XXX XXXX, ended $XX,XXX,XXX six approximately XX.X%. the December ended

turn to call back facilitate over our any callers. from will moderator I Q&A our that the to With

Operator

to [Operator Instructions] Thank Jason Cowen. Seidl you. We'll go first with

Adam Kramer

guys Adam about guys you chains? seen ask, have of, Hey to any Coronavirus all, supply just of for terms on of, chains? on to in I are disruption Jason. and is impact guys, supply actually What kind this first the wanted you seeing any

Todd Macomber

slowdown, trying the people to are at supply seeing how time same We're get volumes while Sure. organized themselves to chain. around ultimately accelerate definitely

me wouldn't time charters, almost chains. a air the everybody of the surprise New compounded the But kind So preserve supply associated we're but Year. the by near-term on definitely some integrity the it's as our see side, certainly to the over early and their of is with international freight immediately, trying slowing in certainly to process, seeing Chinese boost extended somewhat

Adam Kramer

other volumes of made potentially are are a or that for quarter a third there year think maybe Got it. kind volumes could maybe surge be up? be in words, these business? and kind And made of the be could In a do second, up of, delayed, could on that later these positive or some you the

Bohn Crain

Yes, so. would I think

that of -- I have try to restart trying days phase, kind what's it's or people but potentially well, respond. on in that to are days how would would normally again assimilate seem will going it yet, think by inventories ultimately logical divert freight and gone to reposition ocean freight a volumes it's still early to to early people air catch-up as

the line. XX% than of I trade should $XXX guess, or revenues I in international, say in to-date may that be plus opportunity little aggregate with a to true million probably also in million Asia-Pacific of XX% is being $XXX less our take minus or the the

Adam Kramer

more about, Got these, I about the deal guys and do wanted in earlier to And a what a obviously, guys are of, smaller of you seeing the announced is you broadly if deals? color M&A kind today. there. tuck-in more Appreciate then as to of M&A? ask just there potential follow-up, it. of the ask to pipeline, I And wanted kind terms

Bohn Crain

to there think more raise time better Sure, we operating of we've while, from our and an of than to well company-owned a pipeline an hand acquisitions said expect over based we strategic -- quite we partners tuck-in as agency network. is converting of And a that and inherent process store. our begin more effectively their for and would agency

that talked manifest changes historically station item, agent itself is gross business. margin our commissions expansion We've margin go also line in We're but nothing that will how the to away. effectively down about

continue margin agency EBITDA our function future category for remains us. to foreseeable gross station, the So opportunity time for one and that the an a in so buy that as to of will certainly over we improve as be

ourselves as along that talked support At centric our having to the Canadian same kind support we've platform really time three of, to M&A, Canadian as platforms about looking, functional view we category. before certainly M&A and we're and

the our have smaller We things, M&A tuck-in out for space. operations reflected brokerage Clipper principal by and on brokerage intermodal brokerage truck continue recognizing to of that complement to some Clipper of our to actively we're our US tuck-ins side at today side on in the strength with competency Chicago, bi-modal looking the opportunities truck build trying we're out type is and

Adam Kramer

it. the Got it. you guys Thank time. Appreciate for

Operator

Lake at Argento Mark to next go We'll Street.

John Baumgartner

this kind Mark. you seeing the I'm to of that my to follow-up value-added of in Hey continue you taking opportunities appreciate question. are guys, John on I expanding for M&A. is on area? terms just services guess what I

Bohn Crain

which So, of would and services, brokerage it services. opportunities not of include contract both some captures customs would for transportation, certainly lot kind categories we categorically only exploring value-added be of that would opportunities, right? areas these are include, logistics, us, different bring a and would of, us, that also work, interest So but of complementary for

I of, a response. So multi-part think, kind

value-added the of we value-added core those we continuing also of the we're to be is value-added view principal for opportunities, those those of business those might complementary view to at or But businesses interested types as likely off the some companies value service services pursue the core We opportunities. we we business service of is line meaning do offerings M&A, at line our is proposition. But in them services. of Yes, would and that we certainly kind as kind look acquire of enhancing hanging -- look transportation extent the transportation.

John Baumgartner

kind to are rank about buyback How versus then of it. technology investments? kind of capital Thank of, you M&A allocation And about, guys kind would versus continue going second, Got you. thinking you broad forward. thinking

Bohn Crain

Sure.

the type feel we'll over acquisitions think be pay up transactions continue that for market to kind guess, smaller we that a never have start larger would to of will we stock the some where better of and way longer our to value we clearing So I larger we trades, I think back of, to kind value always effectively the a where think the top valuations own and inspired likely ultimately circle tuck-in the full term. not transactions, creates transaction, have larger structure most say higher us at brings can multiples of in from shareholder so to I -- without, than awfully or but which ever, like

buyback, opportunity interesting for And an as kind us. the time at to stock of, we represents in think the engage certainly that recently, we begun same that,

half of think and and a do So those across time, free baseline other flows as I of to inspire baseline tuck-in would certainly would come free transactions half cash we ideas. kind take again as flows look acquisitions. we our we out, but larger and rule if a just And as stock our of at test over we a can our idea be, buying pressure as cash -- us won't that

prepared M&A, the also opportunity to The to investments organic but in at we'll the our idea organic employer and cash drive investments of to, our some flows on it kind kind think in about against our we include opportunities. as also at look you as those for stock form then -- investments -- alluded which sales side technology but the both incremental and organization equal free these sets, strategy, will think an multi-prong ongoing other buying take baseline likely it the doing growth may acquisitions, tuck-in the of of, levels side, remains, well but making will I of

Operator

We'll go Jeff Capital [Operator at to Instructions] Kauffman Markets. Loop

Jeff Kauffman

but how there. about companies have quarter good, environment freight more Not difficult fourth that quarter from tough Coronavirus, we've positively of on heard far seeing a much Good, calendar the so things that a was, focused but this January. lot out little so were they talked in

all, at hard kind But the world different So to does if a in of, impact right to separate Coronavirus now. the you look far, it's talk and you can so, how? -- January little

Bohn Crain

the capacity, think the excess to results year but say, want non-recurring had an to I out don't context I how a sight and prior we're I say, well, of actually to prior to the year of don't we comping it's quarter not had I Coronavirus prepared we really And folks going had say year. can I relative to know that against. that were can yet, premature the that's December We but extraordinary in our trend business prior period. is speak lose the January our in positive -- -- what play fact to actually, some

sheet. like we're at million potential all on catalyst we relative rough run at got And still -- view undervalued, we sellers even though if environment as the EBITDA, present I we've meaningfully a serve along our time, a might same that opportunities rate at days, is we opportunity there, this the -- some sunnier we really remain but group, low look gelling otherwise think our our And we're a to of balance out create to economic -- and and peer as fact we've is we year some leverage valuation themselves. would environment maybe to mean, this activate not got $XX we

Jeff Kauffman

Thank you.

Just two quick here.

costs when station we kind these might of go growth the two not an small the acquisition about, financials tuck-in, agency bump You've meaningful this release, agency really locations impact this that said -- EBITDA, be to could away, you How material, whether locations. mentioned a the the to is think or a more bit? of up little in the large press the

Bohn Crain

purposely of the kind transaction. We the details of particular didn't into get

But partner, acquisition is in virtually part say, contributors. So veer longstanding our Yes, a our want would network. they on I context also don't of of one yes tuck-in I I this what from say because of stations they a yes. the and very is in are zero integration agent already it's would this that terms of call. largest to there But risk, were longstanding a

is line our we will bigger meaningful make at revenue, move incremental impact of margin but the not think EBITDA their And the forward. not brings organization partners. again, as a table gross line they in one top -- item, I that terms the of So to

Jeff Kauffman

All about the last talking a question, last of been right. And few you've you. that thank question systems been quarters, And we've Todd maybe different more upgrading.

integration side. the how some on there maybe in is on you accounting more much I the side, process you where some are an think that of TMS give Can update go? to and

Bohn Crain

and TM. data over good XXX,XXX I'll So of of And we some last business points just fill week. can Board have now the Todd We but the TM. our mark crossed transacted transaction updating $XXX new inside as start here million inside in, of were over

So stations. to deploy It's we roll deployed, up working, we continue certainly continue that out and across to it. domestic is

stations. to We really international pilot on international work rollout through and the beginning are across the

have of including stations We are a and agent this TM, up couple at point. a running TM largest our on very virtually of handful stations agent XXX% on SAP

Todd Macomber

I up Yes. our side, some parts And over we're mean, the as business ECC on to opportunities as system got that. We we've to other at far that functional. SAP and have and bring looking accounting pulling of do

our but biggest Bohn So, is alluding like TM. is focus to

we as progressing that's and -- had So planned.

Operator

comments. to I have I'll closing any holding. this other conference management the time, at additional or And no questions back turn for

Bohn Crain

right. All

we the the model. remain growth non-asset platform our Radiant, prospects me Let we've saying and our by excited remain scalability bullish close business very based created of and and that we at progress with that here very on

Our forwarding in strategy agent in balance networks, consolidating unique sheet, the consolidation a support further based position low puts multi-brand to investment ongoing leverage and on in technology unique and marketplace. us our

infrastructure with believe represents we and this a to world-class to perpetual opportunity people much scalable larger longer We and forward. back-office building a our term technology towards continue eye going out invest almost enterprise in an our and support

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

Operator

conclude thank participation. your today's we'll now for you call. gentlemen, and We Ladies

have and day. may disconnect at great a time You this

Radiant Logistics (RLGT) 10 Feb 202020 Q2 Earnings call transcript