RLGT - Earnings call transcript Q2 2021

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Operator

Good afternoon ladies and gentlemen. This afternoon, Todd Macomber, Radiant's Chief Financial Officer will discuss financial results for the company's Second Fiscal Quarter Ended December 31st, 2020.

Following his comments, we will open the floor for 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 future-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 and available

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

to Now, the Financial to Officer, Radiant's Macomber. over Chief call I'd Todd like pass

Todd Macomber

he Bohn call. for Thanks. the for joining Good today's as recovering and you afternoon is unavailable thank is Unfortunately, from everyone call COVID.

to him and Radiant's, participate in look to with make full expect Commercial have Goldstein, on my to me We call. Chief this and colleague, his back Officer office along asked Arnold seeing the leadership. with complete forward I him recovery continued a

of were able quarter operating post XXX. other results. strategic Consistent million approximately cost are environment. XXst, to and number recent we a revenues were results navigate million financial slightly were quarters, of for We We or $XXX.X down December about of this X.X% X.X% million, with impressive the to about ended or Revenues reported report costs pleased $XXX,XXX. $XX.X while very $XX.X as revenues to net our net another and savings unique and financial manage quarter initiatives, through solid we continue up revenues of

share, months $X.XX on ended which we reported three diluted XXXX, basic per or million December of and million of per $XXX.X income a change $X.X charge $X.XXX attributable $X.XX consideration. of Radiant per contingent fully to XXst, million Logistics also For included revenues, net the in

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

approximately the an three For Logistics December Radiant we for three compared This EBITDA XXst, income ended of to EBITDA $X.XXX approximately We compared to the for or adjusted adjusted of ended December of represents $XX.XXX XXXX, XXXX December XX.X%. million XX.X%. months increase an XXst, adjusted of million or $X.XXX million increase XXXX. of million approximately months ended attributable of income $X.XXX million adjusted reported months XXst, the net reported $X.XXX months Radiant for December ended This the $X.XXX three to three represents attributable Logistics million XXXX. to XXst, net

to the six on Moving month results.

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

or XX.X%. $XX.XXX adjusted ended the Radiant reported for or adjusted arrangements approximately six $XXX.X an to we XXXX. Logistics adjusted XXXX million income approximately This share. prior XXst, fully million increase revenues XXXX, approximately months represents adjusted increase to net XXst, for over of comparable million XXst, the income of six or This XXst, the reported reported months $X.XXX EBITDA XXXX December XX.X%. represents EBITDA $XX.XXX months months to compared an an approximately six six XXst, This Radiant December represents the million the ended million XXXX. For of December net million increase of the income $X.XXX of six Logistics December per million diluted million per approximately $XX.XXX for ended $X.XX December of on attributable $X.XXX period $X.XX of compared For ended and $X.XXX months to attributable $XX.XXX We ended net million basic XX.X% or of of attributable

our and those getting from for current revenues that year points with on period. to We our prior managed many comparable an the XXX the up eye report have to XX.X% I'm towards business dollars adjusted to were the always margins net of for pleased quarter EBIT bottom-line. as XX.X% basis

should opportunities act. remains to Our us balance flexibility to with very sheet ample strong, we providing capture choose

a one of have powder dry of chest debt. war turn with than We less

well growth variable Our significantly results us margins. based continue we're to adjusted profitable model improved to able pandemic, works enabling non-asset our report EBITDA also cost and that show maintain this even through to

strengthening verticals We service about offerings, what the we're continue of for strength this industry that to though customers opportunities environment we even of in tight slow the our many capacity, environment across excited steady serve, diversity economy, surrounding our With and Radiant. optimism the even and -- sheet, continued lie the improvement of our see ahead balance this a of

up will We performance, We that to monitor well acquisition moderator communicating information. that, I it With forward reengaging political any stock the now overall to we'll look closely our opportunities economy. turn as will be to in open and/or for over continue our to as buybacks Q&A. it and

Operator

open first Mark Argento. is and question now questions. [Operator gentlemen, Your the Certainly. is Instructions] coming Ladies from for floor

live. is line Your

Unidentified Analyst

my this Congrats on taking Mark. nice Thanks questions. for wish is for guys, Hey speedy a Bohn quarter John recovery. and and

into where little trended in verticals kind me, onion XXXX? so and a update us peel far one And you've First industry the maybe an overall of where seen you on has could the the environment most strength? more the of capacity some bit give from dig

Todd Macomber

to lot products -- of of verticals. I work. I'm amount bit. of on out a port lot lot of be government a capacity. the there's a that's up had -- I overall going it of to mean, fair Sure. lot in. think We've it work The Yes, a waiting while, have starting is there of lot strongest and our come to I a a a government that little ships been going little the tightening consumer be But LA for of are to aware, you're are a things loosen think sure

going So, restricted. really, it's to been know, been going that. And the from take the -- work pretty just through has West the time East Coast, to capacity freight has

So--

Unidentified Analyst

trajectory? out you What second, could the business you just that press Then you shine in a there, Okay. giving you more in the the into called dig more. seeing if Clippers release, little I'm bit confidence growth wondering are

Todd Macomber

board. bundling Yes, nice really yes. and they well. They've Clipper phenomenal worked that's in We've us. done invested They're doing warehouse really putting lot the with for how opportunity just points they're just on of cylinders. -- We're grow. just a Clipper. they've on They're I recently to there's tickled been They has performing. for strategy all hitting out a of a pipeline. a think lot got another continue up are And

Unidentified Analyst

you you well business out outlook for is into structure to and for is bid that think but quarters, at profitable one of as when when run the M&A? what and you about potentially effectively both Last couple a know the me, the this normalized been kind kind internally capital I reinvesting business, have next pretty as look here, able allocation point? cost Okay. guys of the

Todd Macomber

Okay, everyone when did along everyone good hit, I mean, Yes, -- the COVID structure their we with right, tightened questions. cost I'd belts. else, -- say up

invest levels they it but as forward. would too, large, see were, in some now little did but to where -- they run right salespeople, there of personnel by and SG&A those overall kind we as currently. personnel say, would I relates the are and the going see costs, costs rate cost We the far so similar bit a was new And personnel of as some with savings as where that's majority sticking that of I

will do and the to pay in and we mean, the as we're but really multiple opportunity that's the we're that trading what business down very mindful, always a we on an I typically would and stock at multiple looking have As and as the -- opportunity we the the though, what an earn-out, question. far pay. is, the M&A, half it to through and what is mean great depends brings at I rest company. earn-out,

So, we're the a I to don't of -- now when different of he I are to number of forward, be and now. and looking we move point at need right until this be. got things contacts, But know brings the me all that's kind honest, where right fence Bohn's I mean, we at over

So, -- for opportunities excited but will be there them. do see we and future that in we're the

Unidentified Analyst

Thanks Awesome. the guys. Congrats quarter. on

Todd Macomber

Thank much. so you

Operator

Thank you.

is David Your coming next question Campbell. from

line live. is Your

David Campbell

the a -- statement. for $XXX,XXX question. on -- charge expense in -- $XXX,XXX and from? Hi, loss the Todd. the that -- what is profit Can other There's you taking Thanks my

Todd Macomber

we expense. negative a a we actually -- up ended from That's that out. income That's that's leasing a leasehold had that space lease

David Campbell

the lease? on money Okay. And lost you

Todd Macomber

No, it's a negative expense.

income. it's So,

David Campbell

income, Its right.

So, negative it’s expense? a

Todd Macomber

Right.

David Campbell

-- your on situation. lease

great. Okay, that's

mentioned, ships normally starts. is Chinese get to like waiting, So, in, New come the what has Year over? Coast when the you idea New West in after And had that looks the any situation would Chinese February, as Year fixed

Todd Macomber

Dave, those a few X,XXX the though, I or tremendous to be unload issue, to is strain. there's COVID. ships, I part is causing the think is great workers My a weren't a really I that it's of was able in mean port think which question. about understanding weeks there ago,

much it impact, I happen COVID that, of that is of impact. it's Maybe So, those talk a it an COVID impacting came but will a but was have want know significant there ago article you if in Obviously, lot I big a and weeks is -- the unload ability don't still Arnie, kind very got but to to a to today, time, I is ships. to jump. don't really about believe what playing few visibility. out

Arnold Goldstein

a an you to imbalance there's the equipment. there's In and David, as addition significant mentioned, -- effect, COVID

to vessels are ocean be offloaded that containers and port, going So, sitting there sitting all not obviously in means to there's then out Asia that with out returned the to reloaded. those that be

the volumes are in particular, are building that and Asia, significant. So, up in inventories the

would or So, out. for fair so, until that it's the say we think will, the clear peak month they Year next continue New sort on start I to expect Chinese of past to to

David Campbell

is mentioned just of work Thank you. stronger business, related your -- And government work? that can your is you sectors COVID-XX of one in you

Todd Macomber

-- COVID are right? of the HHS, yes, number FEMA the is number agencies. that relief lot through DHS, so of Most of we so vertically, that supporting So, a government DOS, So, down related. entities government a of through

is So, be some manufacturing some well COVID related activity support. as well, as to vaccine-related it could PPE, as it

are FEMA and the supporting a through of through through government the it's very lot Guard We -- in activities National entities. with also active other

very business for robust us. So,

David Campbell

That’s weaknesses parts apparently, in of to it business, which et sets, the sales, are economy, some other related cetera. good, retail, all because your

Todd Macomber

they'll cruise happen point, at can't come shows, lines, that back for until some those obviously to and trade then. Yes, I we are mean, -- wait

You're right.

David Campbell

meantime you the in in quarters And getting in June Yes. job -- at forward the to and normal through March this look of again, good situation. more very the Yes. have quarter. will doing Thank you'll least results for you're Well, answers. much your a great we situation June when

Todd Macomber

You bet. Thanks David.

Operator

you. Thank

from Your next coming question Mike is Vermont.

line Your live. is

Unidentified Analyst

Hey guys.

much listen, Just company you the great a it's kind used it Guys, right business better that if really you're want The of say is quarter business hope How say Bohn XX% would you the is quarter now? different it down shut job when quarters, you cruise listening this than quarters, lines, that is and get to to of-- be. eight over past or and phenomenal four soon.

Todd Macomber

No, no, no.

Unidentified Analyst

[Indiscernible].

Todd Macomber

a level don't really into we not granularity. of It's Yes, huge get that amount.

don't out throwing we there so report And with on. typically stuff want don't numbers that I start to

Unidentified Analyst

Got it.

Okay.

Todd Macomber

get huge. it's help. increase make the be It'll it'll any back. not crazy it in add don't of it'll wrong, going bottom-line, comes And mean, to but when not nice number. to course, It's the I me

Arnold Goldstein

the government life say military, a during over -- along invest to is along years non-government few NGO, charitable science, this logistics, moving like the are few period. But fortunate were lines, very great but been we've COVID. nobody resources which test, which vertical to in planning, last organizations, I'd sales Yes, which cargo, planned and

is opportunities but parts as So, coming areas and marine, back automotive marine well other that verticals there's so we're spare other obviously, at, now. much, line, within like, looking not cruise as

Unidentified Analyst

Excellent.

this -- is don't that there's it's cheap six any I strategic question trading, there now. allocation, before than like buying know, you non-asset that times, trading can are or any earning enough I capital out EBITDA, we out we're say times -- there, find better was under getting M&A either stock enough our to Now about asked right transport think XX company

Todd Macomber

up. And the pay, guys there multiple. and private look we go bigger It to upon really if -- the mean, with depends we're opportunities. a business, going multiples we we're to I at equity be going are going competing get the to

at look we smaller to if much something reasonable. more ones, the So, multiple down comes

what but So, that's see. I really can't say because speaking, we -- generally

we business, which we stock the smaller and bigger, has So, think company a It certainly the we see we mean doesn't look but really can won't twice like. buying and the look versus something back, we in no multiples will at is stock get risk. our integration trading at where allocation own EBITDA

very conscientious about we're So, that.

So--

Unidentified Analyst

when come at it, down. our slightly, Yes, actually but has our has you stock valuation our look evaluation, moved

So, hard to question there. and right It's find even valuations. I of guess that close the to size answers our the anything diversity

Todd Macomber

I Yes, agree.

Unidentified Analyst

Guy, this job great through difficult execution. Yes. and great excellent time,

Todd Macomber

Thank so you much.

Arnold Goldstein

Thank you.

Unidentified Analyst

Yes.

Operator

questions queue you. in time. at time. Thank this no are [Operator in Instructions] the further There the questions this There at no queue are further

Todd Macomber

built. we on All our at close very right, Radiant we prospects remain have let that and here me by scalable bullish the platform non-asset-based saying

our strength our and continue of certainly optimistic our balance to its the serve. our that end and time, support consolidation further we ultimate remain carrier extensive economy, will your and and multi-brand we which about recovery, patiently sheet, of meaningful value listening and partner of shareholders, the With of leverage present infrastructure believe in our network, the to the At Radiant scalability time, for to customers Logistics. our the support diversity the the pursuit deliver persistent the the we offerings, over scalable for office service Radiant. are in back customers will Thanks for technology marketplace, same and opportunities of vision our we operating partners, strategy

Operator

today's ladies conference and does call. This conclude you, gentlemen. Thank

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

Radiant Logistics (RLGT) 10 Feb 212021 Q2 Earnings call transcript