RLGT - Earnings call transcript Q4 2020

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Operator

Good day, ladies and gentlemen. 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 Fourth Fiscal Quarter and 12 Months ended June 30, 2020.

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. these future on events. based and current has about projections company forward-looking its statements expectations The that company’s These and be expressed and company or unknown statements materially risks, cause forward-looking are results such uncertainties assumptions subject different from implied about or achievements by results or actual to the known may to the achievements the statements. forward-looking

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

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

to Now, the yours. and to CEO, floor Radiant’s Crain. over Founder call is Sir, the I’d Bohn like pass

Bohn Crain

thank customers, employees; business. very protecting people health the our network on afternoon, late of in of key you March, pandemic. the safety Thanks, joining everyone, Since steps collective to our we by and of for and taking greatest Toren. on proud necessary extent supply challenges the the response the to COVID-XX been economy against the on mitigate and to impacts partners our and four continuity chain Good our economic ensuing delivering security presented our slowing operating for objectives: focusing the carries; providing I’m of possible; and the have call. today’s Radiant

essential proud protective and against to around that in the customers North of we the and substantial COVID-XX, an active fight world. other customers role pandemic across products beverage, technology and has delivering to had industry playing many the on Although and goods, food personal be impact serve, America consumer equipment, we are the verticals negative

adjusted million results particularly the us in EBITDA movement of record PPE, $XX.X has ended achieve million June the revenues work, of for on XXXX. to in quarter helped Our $XXX.X support of XX,

entered our economic with have We on are downturn sheet. low to leverage very fortunate this balance

these aggressively operating tabling suspending In of work initiating discretionary program, our investments, our expenses we addition, preserve acquisition our series In the supporting deferring with and any discretionary stock reducing us temporary a measures, face along reductions. down efforts, workforce continue of to our essential COVID-XX, debt technology the buyback work during to liquidity, proactive has and even our pay to allowed pandemic. businesses,

one on million as than had weakness, and As less of cash us net our any future. navigate trailing additional acquisition of XX EBITDA, months into XX, opportunities one half new June turn we of hand the ability market million, to the flexibility pursue $XX.X further of of $XX.X debt as to financial well giving

significantly around seeing has serve, we for Although services the impacted slow world, industry overall are are steady demand the we about been improvement and recovery. and its that across and economy optimistic continued we many transportation the verticals

Todd our employees, so have team a to and result, furloughed partners our to salaries Q&A. up our the begun call open results, as I’ll walk it Macomber, CFO, stock to from teammates, for more buyback we we through in our well-positioned months progressing customers our service we, our and the will economy, customers how believe as of In and/or we continue the look closely and opportunities to of our – our pandemic. support the star the our emerge a ahead, through monitor our forward the are vibrant technology in this us reengaging to acquisition we’ll forever have work and to return themselves. resiliently employees pandemic stronger, and turn our financial strength scalability sheet, many the be present diversity of activities are to who and of commitment With of As we offerings, that, restore detailed the competitor. to then worked to grateful With will of employees over operating balance of our

Todd Macomber

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

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

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

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

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

Moving XX results. along months to

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

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

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

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

Operator

is go We’ll gentlemen, [Operator Godin Thank open floor Instructions] John you. now the our questions. Street Ladies take question ahead. first for Capital. from Lake with and Please

John Godin

picture questions. seeing things taking guess the verticals, kind drive help you I going starting my business there appreciate get Yes, to maybe into you here as lows. in XXXX? will off particular, where are turnaround increased some of you’re Are big could of think I to Or any maybe kind and is strength? that Thanks. results

Bohn Crain

that the food have Sure. some categories, beverage, proved sciences, There’s categories Certainly, life those a durable. number recently, performed well right? all of and of CPG, very of have

We present this with kind those U.S. our in opportunities bit seen remains ahead. we segments expect the of opportunities the Chicago, so environment, markets think, quarters increasingly around in the aid Clipper, continue operations very out I’m in environment. And did time, sciences I market brokerage, truck obviously out PPE. humanitarian might good business, of this coming brokerage some type intermodal we’re It we’ll what ultimate be a represent to on of same perform in but what category well group tight some vaccine thinking last of the in the that – longer-term. our and quarter of and themselves, At over other results kind to of specifically bullish quite those life of might the to of distribution this see

John Godin

level just compared of those us And transactions through business the I kind high maybe that And help more your initially the of how margin business? to cool. walk flipping understand PPE, traditional looks you came a at of us profile type guess, of like about? could of what Okay, Thanks. kind to

Bohn Crain

I take of forms, lots mean, PPE can guess. I Well, Sure.

international air of amount significant a relatively did are charters ultimately, charters, we us, business. For aircraft and chartering low-margin

of itself manifest the it gross guards America. charters to to kind gross face so But was for in Asia, dollars, and margin percentage certainly manufacturing on high why something the the to were air So as us, unusually a guess, our a line various our for while international in gross helped revenues was that spike we quarter. see and points that’s compression margin I unusually at masks, look lot – basis, of inbound percentage as you if part from North moving low you margin of, proud be across question, margin top gowns, that, that points your precisely it would activity,

John Godin

I as environment? and opportunities has mean, look last you – there, the of those back Or landscape just kind one guys I know me. be But all? current at more there it potential sit touched how at out about on Okay. kind little the think could a current acquisitions, of of environment, you the potentially given bit. for you And given changed

Bohn Crain

it’ll be time. think an interesting I

accumulate cash leverage. able again, to very cycle, that’s what fortunate our entered very enter sheet. going We’re balance continue with it our to recent of And very, debt call results the this pay down based and upon to – been we’re economic to whole low have on kind

of through So eye and think, storm, the kind I really in in the of terms we’re durability of good coming position. proverbial

than have flexibility having are this businesses you more in up to environment. read their lever And financial certainly about so we some really who

well may an put that, general be perhaps either earnings a my others low. it interesting be position high company’s to good time, any actionable unusually XX-month present opportunities right now because us trailing the themselves. At in as are more that be than expectation unusually will So same or dynamic, would

get for of deals reaching power not which I And the will us, be some rearview transaction, earnings gear normalized mirror around consensus that think, done kind so anybody is lot of trying the kind of a but to a just COVID. to of around, where in work

John Godin

Congrats Thank nice quarter. right. on very All guys, you, a much.

Bohn Crain

Thank right. you. All

Todd Macomber

Thank you.

Operator

further Oh, with sir. we there Brand a to appear Instructions] [Operator Sir, be have Fargo. time. Please do this my from at go apologies, question ahead, Alex now Wells questions no

Alex Brand

Well, they’re are doing? in, you going Bohn. me I to How didn’t think let

Bohn Crain

you. We’re always to have happy

We’re doing How are well. you?

Alex Brand

good. Good,

a that just question. little last segue So off

think sell-side this you’ve flow but probably think or ever best anymore, I cash had. not quarter free I the I’m is

So…

Bohn Crain

Yes.

Alex Brand

the acquisition headed heading this? So for stand the balance in balance of I towards was where debt-free light sheet, buyback And what guess, it and sort of program against like that thought, And looks you’re I cash weighing flow enthusiasm opportunities? does sheet. that a into

Bohn Crain

if million but up believe is authorized I me that the authorized to is of we think, I correct purchase program shares. that And end the… calendar X I wrong, believe I’m through – were XXXX, Todd, And, Sure. to

Todd Macomber

That’s right, if you will.

Bohn Crain

…scope stock heading COVID. into And of of had buyback the begun in get kind program. active the we to

before realize maybe quarter kind and think that. of we March, in $X I the of the million quarter was $X.X kind and on came spent in ended on of what pause going had ended press to all So we December million

good it’s at financial the So, flexibility, beginning framework. kind is we on we’ll think, target the of look at about our decision there look make And within ultimately, the a which to continue make things M&A were leverage buyback. way, same kind of still at ratios liquidity, the look and I overall think to out pipeline, – and that

sign dollar at line bright a necessarily blank. not no there’s So

a and of buy sign will It’ll in evaluated be incremental an the context to of M&A about of uses sales as in things we how capital, drive it’s But into we growth, a in or for of resources our We more investing remain a play. number competing option dollar kind will very we deploy think why viable organic opportunity whether the certainly of it’ll us these come won’t. capital. kind

Alex Brand

then trends core down just, you’re this with us opportunity. had than you the think, to, offset talk winds level, project of just about goes that’s there’s this that it And you respect Okay. look? I FEMA be goes work think a would one-time by underlying kind be can away. maybe more and overnight, to – about high help this think how how away starting And fundamentals improving But seeing my a business? in at maybe thought and misunderstanding I Can of kind that presents

Bohn Crain

comment a items. offerings, goes varying Sure. think, work, cycles I The as they can guess, let diversity and we’re here. we non-recurring I of is base lot service themselves a of things. the seeing ultimately, And in our other to recurring, counterbalance with do that ultimately, FEMA or different back customer the type project me start similar ultimately, market because proverbial

and very in typhoons PPE, and with and this initiatives. active other we’ve responding been humanitarian to we active were most hurricanes recent FEMA So while quarter, in historically

and would we to and support to And relationship them so, an have good, we continue with a themselves. others, FEMA those have when strong opportunities opportunity hope to present

it’s experience. – – this aren’t pandemic COVID hopefully, lifetime certainly say, a one a we the to was, in So, fair

Alex Brand

Right.

Bohn Crain

have FEMA a to relative here of expecting or back But So we’ll we’re support. to support to most similar out rings. when unfortunately, going not have that phone recent recurring, the and/or experience likely work, And opportunity others quarter. this the non-recurring be there we’ll notion to an there’s stuff in always world �� the to on certainly

Alex Brand

was I since time long a Bohn. a been on It’s call you. thank Well, this, like

that the guys for thank this, And only it. some not through winning I props job for great but helped you with real a So you business way, doing that you. by countercyclical think, deserve

congrats on So that.

Bohn Crain

Thank you.

Operator

there be time. appear Instructions] sir, further no [Operator to And this questions at

Bohn Crain

All right.

Let scalable me close Radiant. bullish very non-asset-based on our we’ve that that prospects platform saying and remain by we at created the

strategy to consolidating multi-brand forwarding emerge balance industry-leading navigate ourselves these position a agent-based platform Ultimately, and as unique in and pandemic recover. unique position a low leverage puts to in sheet will from our on Our technology the economy networks, us stronger competitor. this markets

of we they As this bringing while the patiently to bring which to unique online. listening value meaningful opportunity the moving, employees partners end At their our that back agent-based believe an operating our deliver your remain in work and scalable In the Radiant to to chains leverage our to multi-brand vision we’ll infrastructure freight we for our believe continue giving time, this interim, keep essential Logistics. over in the our for pursuit Thanks to strategic our community, forwarding and we of and same customers strategy we’ll support the the support and safe our happens, shareholders, will create operating proposition need. supply customers persistent to support serve. partners continue and our value time, back-office we

Operator

teleconference. this gentlemen, conclude does We today’s participation. you for and your Ladies thank

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

Radiant Logistics (RLGT) 28 Sep 202020 Q4 Earnings call transcript