RLGT - Earnings call transcript Q1 2021

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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 First Fiscal Quarter ended September 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. The company has based these forward-looking statements on it's 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

and [ph]. call. today's in Toren afternoon, Thanks, Good you for joining on thank everyone,

COVID-XX to of impacts September of we We for ended challenges XX, presented to a results comparable are very the on prior were as $XX pleased XXXX, the the the a pandemic. as COVID-XX We result another quarter basis, financial of net year down navigate quarter revenues the million, solid and largely pandemic. of of reported continue million report which by $XXX.X revenues

a were financial through impact, keep of able however, and costs intact. number other mitigate we and negative this Fortunately, bottom-line to cost operating strategic initiatives, savings to manage our our largely

EBITDA reported $X.X September also of million, XX, net ended million, net quarter we million. $X.X of of the adjusted income income For adjusted and $X.X

variable the fortunate it based cash quarter which million million. were of model, pandemic period, and over to low of has year basis our The net we diverse positive as the levels. period. same $XX.X trends debt Also In our our XX.X% offerings, is, reinforced as non-asset generated benefits cost comparable service addition, EBITDA for points with continued XXX $XX.X we margins, with from prior adjusted in up the debt the only from XX.X% finishing also operations,

been significantly the we with across see we Although many of and slow serve, overall steady season. that verticals demand to peak tightening broad-based into continue we as transportation capacity a impacted, has head services improvement along for industry

of the diversity our of and the our our customers offerings, carrier strength the of and balance With service scalability our extensive partner network. sheet, technology,

activities our up it now re-engaging opportunities And our are themselves. We acquisition walk will financial the and the present the and/or over the progressing, about months for ultimate our to us Radiant. to Q&A. monitor and some that, present detailed buyback we to are we and that as closely In for certainly it's With opportunities will continue recovery, economy I'll optimistic then we'll in economy, ahead, results. Macomber, to stock opportunities the turn how forward through look it CFO, Todd it open

Todd Macomber

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

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

over income on this share; For fully September a the per of $X,XXX,XXX X.X%. reported of $XXX.X represents ended or we three decrease months per diluted and basic year net XXXX approximately XX, $X.XX million comparable or $X.XX revenues $XXX,XXX prior period of the

$X,XXX,XXX. of XXXX XX, September ended months three we adjusted the reported For net income

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

Operator

open for Please is Instructions] Cowen. floor Our first question. Seidl The you. questions. Thank question [Operator now Jason your comes state from with

Jason Seidl

Bohn. you modeling Hey, -- of Bohn, can you Todd. operator. a quarter you, the in sense through quarter? fiscal progress of we was us hoping I your year look how should give how demand sort and move the Hey, sort Thank divisions your second as each of at of out

Bohn Crain

start I gets hard, it Todd. to I'll when and it guess, off I'll pass over

Jason Seidl

when right, Yes, it gets that's what CEOs do, tough.

Bohn Crain

I'm learning. learning, I'm Exactly;

guess our south. I start we'll -- start I'll way north work So and

bundling -- in serve it's verticals So, and really the combination in they've continue kind able a have of through and Canada, cycle they the been very how the entirety, of through industry they well up held to and that very grow group core of us with strategy -- very, our our perform in served of service warehousing Canada, has well. bundling transportation really that kind continues do service value-added well offering to and to

you're keenly [ph] aware span capacity news we of transportation the I all and in As comments, alluded extraordinarily in to from as our some sector; has think been time tight. prepared the

kind slowly late, the it of of but West the on As balance really of across been extending the Coast, started it U.S.

very been a So beneficiary that. and capacity Clipper has of has been tight very,

freight they as impacted was recently, more historically they've were soft, freight more took their back with that are carriers wouldn't served so feel have that a asset-based that got time and remember, coming volumes the and has stride So with aggressive [ph]; will begun Clipper picking negatively gotten capacity have certainly really intermodal, their the when hit tightened intermodal and their to effectively would up we in customers Clipper to us. take pricing, very pricing, there markets normally disciplined trucks

on side. so that seeing we're that And

certainly sciences have you well PPE this other biggest the of we negatively but is of doing be it the sectors life of or environment. a store ways many critical the handful some -- continue that whether piece participate fixturing to participated Forwarding is business, or in verticals obviously cruise activities meaningfully retail in which But which know, recently, there be of line, in the will [ph], always return. impacted, other more last it are time more be been tradeshow,

kind a overview how him to of into I'll would upcoming you general and Todd, the kind quarters. over of be I encourage conservative. turn that we of terms -- modeling down of So nitty-gritty microphone the think getting the to about of guess, in gives kind

Todd Macomber

It's much QX, ends in we of management of that what Thanks. closer we February; costs so, what -- going in up say area. similar bought was you QX, it going All little QX; to to as are bit stations of right, brought continue it's so we I percent Personnel to things that to in I stations. was OpEx, itself personnel much what couple to a of manifesting seeing impacted mean we be be that new as I I in and in the it going definitely also mean, anticipate QX pre-COVID. look a current of quarter. if similar did lot remember, SG&A… the a in and back. I percentage expect -- of would coming at are a cost it a going improve as but revenue, costs And as are kind to be we're onboard a to different would would cuts more to

Jason Seidl

help kind that one line sales leave make of resources the would reinvesting organic to kind outs in drive you call we've item, consciously of Jason I of growth. before been But is;

of of hires, incremental this a had sales we've So kind downtime. handful in

And hopefully, for little that margins so of we're certainly, efforts. bit -- incremental to gross with rewarded we'll costs some initiative, see those a associated additional and overtime, be

Todd Macomber

could. everything watching then SG&A, we we again, And were Okay.

the quarter-over-quarter. So aren't where expect bit, shouldn't would basically debt. in closer the levels the we're regards I would is SG&A past. be a we Basically, mean, to to the to in numbers, were much similar change increase take current we amortization; Depreciation keep to mean, to the and to to down also QX. those interest the I getting And are back really those paying big down going little going -- modeling. expense I the those drivers I

to going little bit have we're interest. a consequently, less So

Jason Seidl

about to you always easier think versus your sort things margin? to deal to should on going don't I revenue of is and with, didn't forth, make ask, [ph]? net how to than we slowing XQ? somewhat want XQ but buy of also sort I want Back sure want that be guys ask self down that Are

Todd Macomber

-- we're and guessing going I'd now, it's seeing really you the to to see to obvious, say, going you a it's while. hard is -- know, it's know, foreseeable I'm capacity predict know right continue Bohn for what continue And, we're said, Yes, to I -- you Like think but for I future. tight.

of Bohn? what similar would out don't right you have I seeing play QX if expect now. to we're So I any different opinion, kind know to

Bohn Crain

No.

then part perhaps And things quarter, what the I of of global parts obviously, beyond, is -- assets. would impacted And of we'll of also and ultimately holiday start their peak, the at by quarter, certainly get kind of guys these think will in incremental that on now and depending that push. quarter. be moving impact. hold some But be next I of what there through those my think expectation, current continue, this to quickly it happens, asset an of transportation next out base and would margins Presidential -- holiday of environment general see of will have next this lot least reinvesting ultimately kind on at trade for kind the will how because with will -- checkbooks at for a transitions the least traditional this kind backside least

Jason Seidl

down your the we numbers it's aside are actually you shooting paid for? been now. acquisitions balance Again, quarter. sheet? you're -- right more strengthening sort of Right. because mean, about debt this the here; How leverage clearly, What think that -- should I

Bohn Crain

being I some mean, guess sort. we hoot-and-holler with free. effectively I of we debt start we're should [ph] approaching Well,

think you pretty to come it's we've to think and So ability continue the that balance kind sheet; economic the through our environment extraordinary. I about deleverage of

you think I really balance right sheet So, pretty is now. our should think

sheet, on of is kind of it there, what flex a or about think on circumstances do actionability themselves. that's really kidding it. a But of of would X.X do little plus a with there, EBITDA. we of particularly that stand, what minus -- been or start we had And means would could normalized we in normalized all opportunities I kind me, should terms up to But obviously, debt; balance would pretty; proud warranted. able financial present how we've we deals, our I our leverage basis, be times aside, I'm would really our times think X.X to if and to, where bit flexibility So excuse

Jason Seidl

guy. Okay, always, I'll gentlemen. fair I the And the next appreciate turn over enough. to time it as

Bohn Crain

you. Thank

Operator

Okay.

Capital. Our questions. with next from Please state your Street Argento Mark comes Lake question

Mark Argento

Hey, Bohn. Todd. Hey,

some smaller the M&A kind given the And a a capital current back participate of wanted the had you're wanted obviously, just that I in Just about big vaccine guys topic to to put guys; don't more as comes work. for opportunity opportunity we're little talk some some of to the then, know maybe opportunities, been environment. to of and that potentially type touch bit to touch -- if big the in, environment on distribution you today fruition. -- on to seeing some

Bohn Crain

Yes.

a how some reminder, organize we of for brokerage kind operations; as trying across opportunities. so we -- our to well different three pipeline our initiatives, there's our M&A a think were been to we U.S. for reactivate pipeline pre-COVID, forwarding build of that to to of Clipper, that kind as around Canadian as looking we So, of M&A our what threads actively kind all trying a thinking three for platforms, type cultivate we're we've our of of as pipelines, were got and M&A, M&A,

that be in So re-engaging we'll of process. kind --

cut earn being at themes; that to I and will opportunities. of deals environment numbers now it said of use, I or right as I of something get be potential the out to back sellers, right don't to think as power do interesting normalized will lend one M&A think trailing the of we because be right? through. types find we to down So come said kind have get everybody's itself and good, we XX-month with think Having can that of we structure about times else -- that kind either no earnings think about able find with to that will be generally things -- the certainly earlier ability done our unusually kind that, will Having it and business X that acquire integration to speaking, $XX X an that, unusually of risk, it's are where worked is to RLGT. -- multiple $XX company EBITDA call know can we or million a million to

sexy, -- as doing going that's are of kind -- in We're the -- very in as capital. think underlying it. underlying way what the will and allocating multiple be trading to if continue that we're we'll interested in viable is, think right our is grounded own also like And So, what we alternate point about capital. as has looked we word our we M&A about remain as a

Mark Argento

any any [ph]? or a vaccine that updates, -- of guys know, government, do the other On you initiatives quite the bit with given I they're types

Bohn Crain

that Nothing can at point in share we this time. in particular

or entirely FEMA. -- are -- a certainly We opportunities what and it's our will executing FEMA strategies. what we clear say certainly another, going we're vaccines if premature role even different -- were equipment. it'd to itself project directly way? will -- I as relationship certainly participate I Airbridge be or will come play, to any as FEMA way require going We're -- a with one precisely enjoy we simple are with think, different there'll continue we it lot indirectly, use -- temperature-controlled [ph], and contingents active think of to good would be different to don't was if

control on temperature some set to is around business. control Clipper temperature drive Just that going equipment does a solution pricing and call

testing can directly vaccines you administration distribution will the certainly example, of shy in Clipper virus. vaccines, bashful won't the opportunities and and will to system ultimate participate and at our own the And a extreme, those So, attempts the the of from didn't set as have opportunities delivery solutions think either chasing even kind there's, benefit we its going know, temperature kind its the vaccine, the kits of of all the indirectly associated that lot our ongoing the of to an of of but with of we participate. or that take or form to distribution people if I within happen be and obviously directly control the be with what's in for the vaccine

Mark Argento

you. Thank

Operator

Okay, Mike our question [ph] your Movement comes question. next from Please Capital. place

Unidentified Analyst

when were step I got to the to this when I I think back on I Radiant Well, take earnings basis. gone correctly through. adjusted today, say, that back has progress If about remember remember about amazing in we it's breakeven-ish, and trying think a an XXXX,

maybe more or was Now than If now run $XX looking million we're on we made that to we're if plus It's of the quarter, of and, that spot. earnings, at it, right I it I look double per EPS we're pretty net at the cash $X.XX, roughly, calculate the we're think $XX me then it million our when at I And zero. progress free But hasn't much in fact digit I $X.XX. yet. Back on I same the exact normalize discovered the on and million rate this, balance flow is amazing you've that sheet, been stock $XX had a debt. than correctly, approaching a, lot higher now.

into at that Now, in There's can levels. at a rapid we pace. an gift dramatic accretive outstanding and free stock happen that shares put cash these shrinkage flow buybacks extremely back

you in rapidly two the at you to you EBITDA, acquisitions, capital of there, would know, the kind the layered debt market practically creativeness to equals that's what for that willing Radiant. if around how our here, if a you half XX back see stock? those don't stays Yeah, you're see stock into hard debt acquisition If XX? You deploy of How, the it's there to and out be cap. any that mentioned, and comfortable times half of on

Bohn Crain

time? guess, at me measured let and we'll approach So, you say, monitor of eat our the Well, want and back elephant to and take think to we're going the I in I circumstance. economy granted, do anything one health own continue our any or for you take the closely that's and health we approach cavalier in our don't market bite up a a an know, to to be how

So measured approach. we in to be will our continue

about, we deployment come to that financial interesting and M&A of really of sure buyback in advantage of take And think costs be context our think always to able have should kind opportunity so have part make don't along. not we of about stock a all of to in continue we shoot opportunity would and bullets and some as the capital, flexibility

can't don't us So a you'll, an a you know, our in as whack. shares buying doing I I envision think tender some offer example bunch and of in single

over through it away quarterly pick time, it we I kind and we'll approach more work take of begun a like had at and that pre of of to think COVID way. do just kind

Unidentified Analyst

away do free taking look the a picking about any can of forgetting with lot on Like, these you leverage. levels, just flow, at cash at

You back, save. done have I it's two through what virus cost with these incredible. guess know, corona last the with looking guys quarters you

flip movement, two about has great of the as at and much of been side and open the this on to upside now, are you've what's participated of really now was looking economy for you how of with vaccine damage markets? in a push shows, opposite that's edge, everyone's been believe ahead? us. and out going from amazing dramatic I actually come from It's whether months, up those done tailwind to lines, it I to the full our Looking of You we the cruise that storefront the be six stemmed But that that's side, much this, starts thinking know, absence phenomenal. A going look the quarters how guess really the tailwind how losses, to economy. we've PPE know certain of FEMA, potential. get looking from exposed business areas movement up that got trade I to the a But opening

Bohn Crain

Yes.

were a But and to kind on when what's to weeks of super early months the business, probably half recovered granular in get degradation business. we darkest that. XX% that. XX days, the people broad were with And of know, of of impact painting So or your brush half don't seeing our than in not the more think kind asking we you of we've I the if on kind want think in I

with So the some line gross recovered to because there's again, categories. in XX% item our these with hasn't that XX% degradation broad margin a of of yet, a softness been brush, probably in painting

to a through that have we the way and business to bottom the is a service push that because number actually be Now, locations. bit trying our agency station line, all lot little careful of to

chunk a of XX% to offset kind again, level online. margin things come XX%, gross But, there's restoration that to of part a coming point, probably So there's degradation, because that will, operating back inherent of the in in high commissions. kind of station the back the as

Unidentified Analyst

Excellent.

one, just out Another there. throw I'll

and become Most this worse levered. through Going I'm highly our sure of it. are competitors through it's

I door looking higher this, start to if are and player side, We've flip business four So on are smaller at times get right us gone correctly, looking sound going and five away the guys close to the we're through strong, the be debt into moving customers seen then right, knocking that and opposite the or while away remember players. any of for on the to to to Radiant some strong M&A. And the our and some leverage from Radiant, or to Have financially now, free. saying, agents way levered. break seven gone basically you

Bohn Crain

customer some transitions. policy visitors. of at the it those affect existing those both happening, and of the be same has at I target accepting example, granular, at not an that level. difficult too Again, level are for a time, some would without the say, customer they're If But certainly to can conversations getting station

But larger, would personal of hard face it's more And kind larger, over business are if in a opening kind opportunity we that I'll that the add of new enable meetings incremental slowly of to what and get real and getting on happen continues participate call up, theme, slowly chunkier opportunities things sometimes of to occur. pieces those time, it's time face the of look we to think, those and us our kind a to a RFPs certainly, we're kind an help of been kind right, to type for progress, that more So ongoing win improve. of meeting to and to basis. in I

that's our And we're service financial reflective on. so more offering lot a and people of with things size, our I and so our and becoming breadth to of strength, us depth think familiar scale, in

Unidentified Analyst

we're progress it's job Alright the buybacks, that an valuation And guys, done. last made. it still opportunity this of advantage look, that a But, phenomenal there. It's impressive couple we've it's you of quarters. out you an it's take with if know, you've at amazing with

congratulations. So

Operator

you. Thank

Operator

Instructions] next Thomson from [Operator state question Our Company. Please David comes question. your & from Campbell Davis

David Campbell

for in of months, help example? my it taking question. you relative is a for us each noticeable September say, and September; was months, July, you Is anything revenue there can those how in quarter? the going there August Thank relative difference was July, the There understand much down September to for a change to

Bohn Crain

not that detailed is get something quarter. say month of we course to the over the month by fair particularly that's on a to steady increase No, But month is basis. month there a it

David Campbell

to Sequential mean from you month? increase, month

Bohn Crain

Yes.

David Campbell

more not up the take you Well, seasonally, comparable be is of advantage but from usually related encouraging. from up have another in will with revenues. quarter the the numbers December quarter that's in a up good certainly and the not. when not increase when will expenses those quarter. you salaries September it's quarter, [ph] you to And going December get that, revenues decrease December that's Maybe into compared maybe costs you be and sustainable can't mentioned And

Bohn Crain

pandemic. when we, some the reductions to it, across durable pick of we did were sure just cost But through dramatic pretty we kind make the board, of in the

we're compensations folks hat myself durable a of passing for make I a meaningful unknown restoring can. footing, the the where was was were to everybody better And we it reminder, the took we're and cut, that ourselves XX% a what a the finding pay team, those at pay took cut sure on as as leadership through we know, time. You proverbial

an of in much else, So terms acknowledging to of it's increase that us kind be going anything there's in payroll. as as

David Campbell

with revenue. Right. Well, nice certainly its in up with have matching to that increase

be pretty that watching we'll So closely.

SG&A. I obviously. that think Keep and you probably situation, will do,

terms of there are changes lower at revenue sustain levels SG&A in In that the goes you when up? SG&A any can

Bohn Crain

of some some had have do an able certainly takeout. to rationalization, of been cost I'm We facility kind where in LA particular, thinking we've

kind be kind will the level some there will, made around within of XX of improvement, segment changes SG&A you as permanent So if on item of structural some we our line there.

David Campbell

great. very that's Okay, you Yeah. much. Thank

have Let it. someone else

Operator

looks that It question. was final like our

Bohn Crain

you. Thank

me close Let by platform that scalable, based saying that non-asset here built. on at we our remain we've bullish prospect very and the Radiant,

customers With offerings, strength of the the carrier extensive Network. our and technology scalability our of of diversity service and Partner the balance sheet, our our

and time, ultimate We value we'll we infrastructure customers the meaningful its long shareholders, are end our Logistics. believe recovery leverage strategy pursuit that about present our persistent over further and serve. economy, optimistic the Radiant in for that we marketplace, remain it time, operating our deliver in our same support patiently Thanks partners, scalable for to will listening certainly of your term Radiant. support of office and continue the vision back which At for consolidation to the opportunities the brand multi our to we and

Radiant Logistics (RLGT) 9 Nov 202021 Q1 Earnings call transcript