RLGT - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

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 31, 2021.

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 meanings 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 achievement 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

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

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

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

Bohn Crain

Matthew. news share, million, we December and afternoon, call. or income $X.X and on $XX.X of XX.X%; or million, don't $XX.X you quarter. to have in offer up for $XXX.X another net with $X.X XX%; EBITDA record net joining income or of million up adjusted record $XX.X have attributable record million or We do record up million, continued of net million revenues record everyone, or some million, Valentine's, million record Radiant We financial quarter the up revenues $X.X million, $X.X for to XX.X%; XX.X%. or of up XX.X%; $XXX million of today on results chocolates $XX.X as of good adjusted to we today's flowers our trend but posted Good Thanks, thank very

business in capacity-constrained increased our in in record quickly diversity to reflect of service to support prior improvement period. the and XX.X%, and benefit These scalable also market. which offerings our up we this addition, our market points adjusted non-asset-based dynamics customers ability XX.X% our saw a of to EBITDA the our year respond model, results comparable changing from basis In XXX margin,

complete In that our the record while event a fact results note results from the we that through addition, these Navegate November on Twin only XX. exciting itself we Chicago given new Navegate working presented X. occurred represents record challenges as the Shanghai, in Cities Also offices transaction as we With in did well ransomware serve. reflect not the platform these Radiant contribution one-month and the opportunity until by disclosed customers end the the December an delivered previously network that that for

additional with unlock even purchase the that vendor our Shanghai, made customers the our brings we the in the platform our a and from also forwarding customers. for Radiant the solidifying provide to here visibility delivery prospective particularly and Asia ocean manufacturing enhanced addition management. SKU-level These capabilities management network ourselves in in drayage brokerage, be will areas and order in be of Navegate provide trade services customs U.S. new trade facilitate management offerings both presence available further technology, global proprietary both positioned marketplace strengthens In support the and and in service service proprietary and differentiate we better to to will global technology believe to final floor tools through offering, With to entire international it with current

through now In December XXXX. ended in addition stock our to progress work program stock we capital buyback on million to the in purchased the to months $X.X six acquisition also have continue front, put and XX,

we've the have delivered results or reflect we to believe several discussed, share prospects, previously combination of we been almost continue intrinsic growth. to by also is that pointing of record that worth quarters exclusively strategic fueled not these does expect organic and through acquisitions and stock value each growth buybacks. we over long-term a deploy It our Radiant’s out last As price our current that capital accurately

Looking extensive we recognized our and a detailed great us and With open believe service it strategic leverage results, time, begun Todd to American relever network stock our up that and best-in-class acquisitions financial of CFO, we yet forward, about then here the are at robust stock some partners creating footprint to of price. intrinsic shareholders it technology, we has through have turn and over value optimistic have I'll built to that, through At North to the build prospects sheet global walk platform combination our buybacks, meaningful on we for our continue same we'll Radiant. Q&A. our for our Macomber, to be to to we opportunities and remain thoughtfully continue to balance in

Todd Macomber

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

diluted months approximately share. included quarter XX, million income $X.XXX expense Please related disclosed this $XXX.X of to three that the to ended event For we fully on and reported note $XXX,XXX December basic the of December. net Logistics XXXX, Radiant revenues or per attributable cyber of $X.XX in million

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

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

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

to the results. along six-month Moving

$X.XXX event ended basic of Radiant revenues Please Radiant cyber XXXX, the XXXX, months or this attributable of the $XX.XXX XX, $XXX.X on note, approximately reported in comparable revenues expense The million net of related represents included million the prior period $X.XXX net approximately December million period six the Logistics For December. This December share. disclosed XXst, million to ended $X.XX over attributable fully six diluted fully of income and months per we on XXX.X%. basic of diluted per or and an to $XXX,XXX $X.XX million or to also income $XXX.X reported year we increase Logistics share.

or $XX.XXX an months income, net million the net XXXX, $XX.XXX we XX.X%. ended adjusted million approximately This XXXX. adjusted represents December increase Our months $X.XXX of six reported income six XXst, to for December for XXst, the of million approximately compared ended

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

Operator

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

live. is line Your

Jason Seidl

levels on question you should Should of Thank Todd, sort guess how on help congrats impact basis. overall Is very I a think of us is the would and quarterly growth are then for I expect we modeling any we on operator. here Bohn quarter. I Hey market. on ask us looking XXXX? you. have an question in questions. sort a of the Navegate, you of seasonality update in a there about? the I much? special terms couple XQ? strong so, a out any And follow-up second And ransomware? could what it give One, in to have If

Bohn Crain

Okay.

them So, I we'll here. time take guess, a one at

of in us So, terms at largely to is any incremental cyber behind the first, this now relative event point that cost. itself,

be really So, I December. into mean the that might there but magnitude and it immaterial that nowhere in some of or straggling $XXX,XXX plus we costs accrued be could minus quarter into should the come,

behind at the but cyber this point a that itself. is So challenging in event to us it largely was time, time

believe terms quarter business over The the traditional second think I the still the we in mean, was significant modestly we're ended then would -- would integration. I build I in year, of is. seasonality. March a ourselves We're lot and as continuing calendar early not like be -- in expecting the to Navegate. we expect, slower of process don't into

So pretty form. that in standard

So I a we relates early... seasonality. do anything modeling little as need terms it unique don't to of think there's to in It's

Jason Seidl

off the grow can They numbers?

Bohn Crain

PO-level, days this workforces, detailed visibility with global all never as in-transit of environment offer integration, itself terms challenges about the it's in manufacturing but kind frustrated but we're excited managing heightened for and a been cetera, in while our COVID customer that technology always am. happening the own on back on visibility, to PO provide in to type interest our water management shipment increased there's of to not SKU-level and early chains today's could terms particularly visibility. et historically, level we appetite of I of tool in visibility. just of really with Particularly, base only And supply the -- floor, with we've able the the everybody's what's SKU-level,

So win we as kind to customers. out within an further differentiate and think an customer be as going really powerful in to new base ourselves marketplace it's incremental well opportunity of go installed our opportunity just the and and

So robust transactions bring kind that way. sense have way but our kind and that structure a we technology relative we transaction, for we're was it's to we embedded certainly the makes we nugget to the achieved in Navegate -- that of we we for set multiples. that that, own always And in perceive trading look think to business a in value the market real of more that this within excited can

Jason Seidl

be Bohn. Wanted final one my it's third seems here. good a to going It and one, -- like to

growth. Clearly, because sort out going you parse just trucking shipment a little rates You chains the of maybe on ocean bit on board. is pricing and we're given see could just lot rates and side. across noise what's global that about been talked the front, rates congested of there's the But revenue a the of organic supply the with we seeing growth sort air and positive

been across business has for how different your the lines? growth organic you So shipment

Bohn Crain

positive. to craving an who really I open up But think, mean, in been increased opportunity created customers us relationships it's really for it's generally rates. environment, with we've obviously, I this speaking, got are capacity. new

you you capacity, have opportunities. have if effectively, So

to theme So engagement continues kind the only grow some of to to of with very opportunity serve the up, has some new a but opportunity conversations, to been increase. and capacity to we of continued us. just continuing of for customers an technology customers think interesting And accelerate going we've customers as the increase. and it's to sophistication of kind kind to angles of I the And of back size these continue of been kind have that's that around

Jason Seidl

you of the low single upper single-digit Bohn, in it in digit, would rates shipments? put growth of mid-single digit, And sort terms the

Bohn Crain

organic baseline There's always I -- getting an in about of start think in modalities. thinking conservatively of about back of margin as growth margin. to scalable a tricky our our of more continue in the we -- a gross the that's when which and in But the getting question the of growing that, growth, on terms function think -- of to of we expansion on always a to line we and mix bit dollars, terms think X% the the kind dollars and range then EBITDA more office benefit bottom seeing X% gross would

kind of the in to XX And that so, we would target. times think X of

to and X% to XX%. X% So X%

Jason Seidl

the X% helpful, Bohn. the congrats always. you on to XX%. for And quarter. right. Very All time Thank again, as

Bohn Crain

you. Thank

Operator

Thank you.

Research Your next from Vertical Kauffman Jeff from coming question is Partners.

Your line live. is

Jeff Kauffman

very Thank Congratulations. you much.

Bohn Crain

you. Thank

Todd Macomber

you. Thank

Jeff Kauffman

quarter, of tax rate So the in this points. A a questions. big almost jump XXX basis couple

a one-time deal? then related result some Was tax you the quarter a and kind something of items? Is in taxes So as the rate of Could Navegate one-time some of for board? it guidance being us different give on is to year? on the that

Todd Macomber

the is But be now going as -- rate -- I'd forward. actually had -- year, booking we're a taxes to a we income -- more state the did everything at obviously, -- we rate have what we of think, the whole. over exercise for the And rate more Tax I going the looked -- through significant Navegate has or Radiant just weekend. -- the to went than Yes. over rates

bit. it So overall mix the little overall, a changed

Operator

you. Thank

Lake is question Mark from next Argento Street. coming from Your

Your line is live.

Mark Argento

solid and Hi, a a you sorry Congrats quarter. I your to about hear -- Obviously, much guess little solid hitting state guys. them. quarter rates. stride. a Unfortunately, But are about Minnesota tax on guys anyway, on know this congrats

Operator

is question from... next Your coming

Bohn Crain

the people. we've -- just last lost lost two we So

Todd Macomber

question like Seem next Mike got Your from is Instructions] [Operator cut Vermut Capital. from coming I Newland Operator: off.

line Your live. is

Mike Vermut

How Hey, guys. you’re doing?

Bohn Crain

How Mike. you’re doing,

Todd Macomber

Yeah.

Bohn Crain

in. back Go call Hope, he’ll ahead, Mike.

Mike Vermut

you. Thank

there, incredible. So, today. phenomenal. first to price, It's we'd to. used with could got we I earning of to When of what same and years ago, times we all, amazing close X are we in started investing we're out all of say, be where that And it's as you Radiant have it’s kind never believed we're stock the

guys just last few competitively, happened on applaud our the sector. in you months So I Lots that. guess, in

it over a XX trading of one under guess, acquired that -- little largest I of Pilot. your I can I Some Maersk what week they X.X last paid less. from was we're And your times now, competitors and think -- six, right EBITDA. We're see, at announced,

First to of now. If multiple in you guys look balance we're that paid There's, things decided when right you privately to developing that you Pilot, I are at three see landscape? I us, happening your the them. on the this? competitive of price And all, how What's guess, out all buy you there do Maersk do that owned. only what or there? give $XX amazing you in logistics right? How others guess, an that space, company out do that? four at see for We're public, take

So I'm you're there's some just massive wondering disconnect what here. thinking?

Bohn Crain

of lot aspects in I a that, pricing. a lines accumulated other right? terms in there's ocean of So bit environment quite this cash have guess, different to the with ocean of Maersk obvious, is Well, which and the starting

they I to have so know. acquired continue for think Fong, and So and may they there's they we acquisitive -- that they all LF also -- be a been

consolidation to in think strategy. executing shareholder And continue, to So it will I trying ourselves, would we're value, terms so seem. our of create continue

would and That its haven't way opportunities. We own like its rewarded be. been that frustrations the own to we creates

on some side do stock of to buyback work the begun we've things. So

I think million year. first through six $X months close -- of the spent to past we've this this

right? started trading I along answer. and way. it's were tough, When this straight at a share, So think -- the we that's share we right, I journey, $X.XX the now think somewhere

done a business hasn't of least been being think we public the at -- intrinsic for, private strategy they to I some themselves. is But fully a is even we're some are reflected creating smaller Echo think, our themselves for transports, part factors in of of that -- particular, I XPL. non-asset-based think they as had portion absolutely, that's price. executing a ultimately reality a we number that in And the of of being the value I technology larger public meaningful And go think relatively I of job reality positioning transport. So that stock believe, in contributing part a ultimately, of decided of good

But it's something this for we value. work to to of plenty But And shareholder to the seen. money time, executing when be continue still they're of will sidelines we're stock remains have -- in be of to So businesses. there's continue But plenty There's on gets unlocked price. that to the put aggressively believe think cumulative move busy point, it's we we're that create our how see strategy about the terms at least at to bidding options exceptional of hopefully, forward. some the done, and opportunity really evidence we range to appreciation How at -- still irrefutable. the on world, our equity out, weight they're lots and of and continuing in private ultimately results. and we'll up win in the same of

sense. we'll in say available make to current that always, I So, least remains this environment, that's us shouldn't should always but -- be an option -- at

Mike Vermut

looks logistics levels back. remember got great. an dealt fantastic. I I've trading public at And organic to -- are too a with just kind here. doing through, you I your The Excellent. of guess, we in unbelievable going I company these say look quarter, what guys non-asset can't growth. the job you gone with Acquisition earnings

unlock. into continue eventually, there yes, it And it XXXX. and job will So But great congratulations.

Bohn Crain

Thank you.

Operator

you. Thank

Kanen Your coming next from David Kanen Wealth Management. question is from

Your line is live.

David Kanen

Congratulations. guys. afternoon good Hi, Great job

Bohn Crain

Thank you.

David Kanen

leverage question the first -- comfort of So, ratio leverage is level your versus what what's is in EBITDA? terms

Bohn Crain

would ratio, the a I we answer times normalized probably and think probably two is what where think leverage that short we to half the is would target.

existing kind X.XX framework. to our three can times Our times provide of for existing under facilities up and flex credit

times So, plus how would view a or and minus that. half we be probably

David Kanen

capital if room. by you My a than likely things to to times have with five is, So at lot multiples your marketplace current all more question deploy is? times, stock of the out, half or the the great most and caller the long. trade are day trading continues way, buybacks as I'll in And job. we sub-six called where previous stock given higher M&A your Navegate, deals a those EBITDA, do

how do that? answer -- So, what you

Bohn Crain

Well, think and relative have think interrogating going looking continue continue hurdle for cetera. But own the Yes. for I be We'll compelling the approach. do we to network to the we best looks the in our stock. buying that continue a to like -- to synergistic, to becomes take network, rate we're think balanced to in sense shareholders that market, to the what make -- acquisitions our for part I et

it's take done. smaller we so will and something through historically combination what approach capital this of to said were how And a do, playbook We've we likely acquisitions. is think multipronged stock about tuck-in what going in been which doing that continued we've buybacks be the That's terms and allocation. we baseline of

So--

David Kanen

adjusted as impact question My attack, number, does it far is about the it XXX And back add the or back that's-- quantified at then $XXX, adjusted Okay. EPS from add it $XXX,XXX. the number, you -- ransomware the does as the

Bohn Crain

kind see in I release, think is both Yes, in it -- it's adjusted reconciliation adjusted get add-back place, XXX In there's last takes press income. EBITDA the an the of that and numbers, you'll page, when that those you does. Yes. to the net and

David Kanen

mean, approximately margin back number your that into we EBITDA using sure revenue what Okay. was -- net lost I could it but... And I then I'm the from

Bohn Crain

revenue probably that of is process. impact to there the number. entire a ton. the We're small I we but continue what that process, the you can't sure some through net customers service a our really by Well, And revenue lost of get to is mean amount not through

in some top overall we just line there revenue team move. with So event -- were shipments that It lost parachuting the we the costs to basically don't slow or believe scheme deal you're the was But there's third-party meaningful $XXX,XXX the of the to sell. incurred SWAT deferred of financials. the was any cyber our in in is to kind what -- – kind of

David Kanen

what... then And Okay.

Bohn Crain

and take the less-than-optimal should the of as the put they as were fact pattern amazing, to forward with beat It that our with I the team network was resiliency work through did pretty hard we we ensure of ransomware. a all kind acknowledge moment just working effort through that. customers to we miss didn't worked a the the

David Kanen

is existing call-out. as Yes. customers? the it to of sort just it give organic the then what's in drivers growth just or Could particular vertical a what us customers? quarter. the you completely Was Good And within it one sense were? Was impressive new growth Was dispersed?

Bohn Crain

it the the probably I results temperature business, great their their the do. We in is business do was broad-based. control ocean extraordinary that within of job in the to product growth within amount forwarding saw The work business, continue a of itself leading the would with bundling positive across really really fair an the line. kind guys Canada then Clipper say And that they way seeing board in in strategy. coming

David Kanen

of little equity comment statement tires. going private call on this heard out getting -- inbound And you maybe you there's is a time just money you you someone's lot bit that? first The that out Are to implication your a there. more is, I've Could Bohn, previously did kicking the the calls? about hey, is

Bohn Crain

-- to doing. right?' not, impression. unequivocally, very leave no you the we're from get would process I get selling asked say with answer in are And no, time about certainly 'Hey, passionate one's our We're I kicking I is want of I tires. what business, time, we're anyone to that the No. don't right? your unequivocally,

of sell to we're considering And not in kind process any ourselves. so

David Kanen

disrespect take work, Okay. accretive Well, we in the absence stock. and opportunity to the the M&A this advantage and of the of great buyback the quarter. market Keep is hope you. of guys accelerate Thank good luck up showing next the you

Bohn Crain

Thanks, Dave. right. All

Operator

Thank Your you from [Operator Jeff from Instructions] coming Research Partners. question is next Kauffman Vertical

is line Your live.

Jeff Kauffman

Round two. Hey.

Bohn Crain

that. Hey, sorry for

got quarters -- keep of a there machine. a the roll got hope beating you’ve You to

Jeff Kauffman

phones, Yes, I I’m of old one guess. calling from those

Sorry about that.

Bohn Crain

our it think I so on end, I have might been apologize.

Jeff Kauffman

It’s it’s okay, right. okay. All

your questions not and kicking you're have asked. tomorrow. of lot been is glad going a one I'm no So tires private

talking February. business on this their really I sorry, focus in was just about some me of than and businesses, businesses have even quarter reported wasn't was sound or a they're that it anyone was curious, their up, A other let but XQ. Omicron Absenteeism been So into deal thought things. and lot January just -- I'm early in more big how customers' have it it XQ doesn't businesses. like affected fiscal

hit issues. thinking has You had business? oddities And all? Omicron business about as be forecasting? Canadian own quarter other should we has your Canadian we're at thinking this your hit Or your any protest through But the trucker there third are

Bohn Crain

the seems is in recurring/non-recurring border the are way you that are kind the of things So road -- all Yes. the meets proverbial to finding the trenches it's stuff that a where Well, like right? folks ultimately, the done. Omicron, it mentioning, right? are So rubber of of it that all challenging still the those oddities, everyone, stuff, it's get

without So lot a of not it's effort.

impacted out -- to are the labor bell the blood, of of being, us, through I guess, is being But sweat in not answering think it really terms unique just but with challenged and combination and but and quarantine a then sick people is tears, and on again, So getting inflation everybody Omicron. not everybody I we in and front, done.

water recovering. need than get folks waiting for normally job the on to back more -- they're of to, as to and it's they shorthanded So trying everyone's carry would kind

but hospital had with lot out recognized response we've like They're I Omicron. they're then days, generally think, it's in for of to the of fortunately, But kind again, -- it's a Omicron. they're several to back. absenteeism So most going folks -- aren't

we're like else we everybody it just as working And out there. through can, best so,

Todd Macomber

I great Hey, relates to through it been navigate yes, Canada, has able as We of -- basically, Canada kind Jeff, question. to mean, that.

down. the been it get As But the you able across they've they were where gone trucking shut -- to they're trucking, stuff largely border. move to stuff, know, rail that it's

a of far. that it's of do to so been So matter attacking they've able tactically kind but issue, the

Jeff Kauffman

great to hear. That’s

Todd Macomber

impacts It it's them challenge Hopefully, resolved that certainly a -- all for sure. soon. getting for is

starting I think of it's lighten kind news. is I in But ongoing up yes, what for the to now. it's saw

Jeff Kauffman

off. Todd, I following comment up your now was we different got are tax cut because with you have things mentioned Navegate.

Todd Macomber

Jeff, we're start question. you going you cut up to to tax again, asking have rate

Jeff Kauffman

what's wondering, about just way I'm it right think Well, to the going forward?

Todd Macomber

Yeah.

the think rate largely look trued boots in the at got is, you where last as they've it not went are the when we're I our to exercise Minnesota, if -- But The tax pay up, ground this got of we I at in you having a lot we whole, Radiant they operations got -- advisers. places Navegate, with and we're whole They've few a look and on in because have reality mean, everything days state through Nexus. the taxes Chicago. don't of there.

income So they're paying state taxes.

So overall I everything looked was mean, very closely. the at I mean, rates,

the way. right this here of quarter, rates acquisition, rest to now barring stay the I is the think that what another I is think the we going have rate

So that's right that another best use can the acquisition. now, barring you rate

Jeff Kauffman

stop. Well, tax I right. I twice, All since ask guess, rate should I about

much. very you thank So

Todd Macomber

bet. You

Bohn Crain

Thanks Jeff.

Operator

back remarks. no for I’ll ahead. closing the host in our are questions go Please to now further the queue. hand There you. Thank conference

Bohn Crain

Thanks.

in footprint relever we prospects by best-in-class to our and to time, on continue close at that a saying platform network extensive leverage of American build have the remain balance me about begun Radiant. stock Let we same of optimistic and and through North sheet our Radiant technology, and meaningful intrinsic we stock partners buybacks, partners customers multi-pronged our we've to robust serve. combination of shareholders, service to to opportunities strategic thoughtfully to At and great to acquisitions here price. recognized the continue yet our global support will operating for we we value stock organic acquisition and are for this Through continue and listening shareholders our create is end of that believe for our the approach believe we Thanks your creating we that buybacks, meaningful growth, be value Logistics.

Operator

Thank Ladies concludes today's gentlemen, and event. you. this

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

Radiant Logistics (RLGT) 14 Feb 222022 Q2 Earnings call transcript