RLGT - Earnings call transcript Q3 2022

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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 third fiscal quarter and 9 months ended March 31, 2022.

Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference call may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward-looking statements on its current expectations and projections about future events. be subject the and the or company results achievements are and risks, company’s implied statements the or about from statements. assumptions that to by forward-looking such to achievements unknown known uncertainties actual results forward-looking These or different expressed materially may cause

that all factors impossible in the in materially may from be have Radiant set factors forth cause include achievements the website may While it future at which and the the or available differ is company’s are forward-looking company’s other to such statements, our those to identify 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

everyone Thank today’s on joining Vishan. Good Thanks, you. thank you for in and call. afternoon,

virtually was financial spectacular records of very the March are another we net adjusted per which report We income, all quarter It short earnings net adjusted and report: to income, and pleased results reporting share financial every new records. EBITDA, for per revenues, EBITDA trend with net metric EBITDA, us our nothing of record continue share, revenues, adjusted quarter. margin, quarter, a for earnings on

strong contribution success. group is our in each every brokerage operations, a U.S. our and of meaningful business acquisition the XXXX in and operations, board, company-owned first Our strategic offerings, with contribution various operating project charter the our quarter Across forwarding Canadian to quite partner our December business a locations, remains operations this service full across our our both collective particularly strong in showing Navegate. from at and quarterly our making our

U.S. XX behalf flights with ultimate test cartons COVID flying coordination mission, and strategic The destination of that speedy and the XX Department We on ultimate the origin, XXX efforts, to the of team details quarter, of COVID relief the to Services. kits uplift to during followed program providing XX.X over U.S., in of assist the the had The the United including the into COVID the the Human final-mile are over kits hands delivery, interior and kits by included trailers at test of distribution. these XXX,XXX million Radiant safe support American transfer kits mission-critical Health opportunity XX-foot delivery of people. for move States aircraft involved centers of to continue to to of particularly on the for in the test and chartering delivery cargo proud the

In addition, our we of excited remain Navegate. through the available about made acquisition us very opportunities to

to particularly solidifying brings in non-asset-based and financial management drayage result capabilities presence will forwarding Radiant $X.X brokerage, services, to be Navegate the made and both With management and EBITDA in international it Asia U.S. from Radiant that’s but provide enhanced very of and believe that delivery million purchase floor proprietary moving for the of network in forward. on detailed the even with a I reporting visibility our we marketplace offerings Todd, billion technology, in tools provide our global to the robust areas in is These operating support our our worth global direct that global trade and exciting SKU-level noting have ourselves of unlock service customs also will now additional a service leave be differentiate prospective milestone and the in to final a in addition the management capability. our year. both to scalable here order revenues vendor the services b, dedication and billion, we the will trade strengthens entire partners, through offerings our In Shanghai, ocean offering, fiscal the to This new of with us available trade our model. management adjusted further a customers through and manufacturing current the generated of employees business and positioned diversity durability we months first for better of $XX X customers is the

million ended For $X.X record have EBITDA – the reported in March XX, trailing now XX on excuse months me, a billion March XX XXXX, revenues. we adjusted $XX.X in

net difficult for $XX new to in trailing results to on on with almost relatively million balance expect $XX adjusted debt next is year, we and this the continue sheet, contributing between that what exactly giving than of disconnect deliver and record our current to stock market stock us XX-month predict value EBITDA. while is the approximately should it these do leverage with is what We our modest million underlying believe for, of current price. And stronger believe our the we Radiant’s we normal meaningfully is credit

detailed stock that or given this both reflects current we expect in being continues our to value Accordingly, price our in opportunity to In the expanding therefore, our repurchase intrinsic active price previously through be with its of believe to and four this accurately begin take excellent growth delivery we for this the to and the an continuing our model begin the unlevered we sheet we million sheet, through opportunity the I’ll we believe not performance consecutive December grow. Quite up company price. in turn investment earned non-responsive of Hopefully, And shareholders. and of us stock current investors, underlying financials, to ongoing our that, of prospects, our between with our Macomber, stock to long-term strong of valuation will acquisition As regard, and challenges our between renewed stock addition to we it over quarters stock our to CFO, frankly, Radiant’s our balance to we’ll program discussed, our With continued shares and gap it disconnect purchase Radiant record business we to and stock represents results. earnings and and strong now have through deserve and the particularly it the have through X then our balance power, disparity to advantage and our value the some February presented XXXX. up do our in open our demonstrated this peers. to buyback walk Q&A. register close Todd I being durability of is year what of authority it. will of efforts, With pandemic us of

Todd Macomber

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

more ended $X.XX XXXX, months value note in adjusted diluted rate and this approximately of $XX.XXX million X fully quarter was the million basic swap $X.XX Please the the per included approximately million a we fair $XXX.X For contracts, revenues, of or related Logistics to net Radiant $XX business. March with to of and charter per interest quarter COVID-related on XX, share. $X change reported meaningfully, gain income attributable of million

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

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

of million an adjusted March This adjusted I EBITDA XXX approximately XXXX months represents X $XX.XXX reported margin or to points a $XX.XXX million ended track increase $XX.XXX regularly, months something increasing of XXXX. X increase also call ended basis XX.X%. million from adjusted EBITDA, percentage compared XX, in March XX.X% and to For we to as net approximately of for out Bohn for the revenues, the I’d XX.X%. XX, like the EBITDA

charter note, current of diluted this X million Moving $X.XX XX, fully the the business ended March for share. quarter, basic included income recent acquisition attributable cyber $X offset $X.XX of per and in along Logistics X-month the in to slightly our captured billion, $XX.XXX the $X.XXX in on reported disclosed of net representing results, to December. Please we months million Radiant per event by Navegate, X significant period XXXX, months

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

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

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

Operator

first see go Argento question Street. Mark from comes our ahead. Instructions] Lake I please [Operator from Mark,

Mark Argento

quarter. Todd. Hey, Bohn. Hey, Congrats on enormous

and not So really with impressive really, I about getting concur credit. thinking your

a things just If us you help bit. little could parse

the know contribution us kind quarter the give they – if And of the rate COVID-related growth revenue organic well, then EBITDA remind give size project then quarter? what firstly, of core us how us the you I and of much you in scope of of – If platform? could into the was Navegate backing kind as contributed the the and in the and

Bohn Crain

in first release press it the don’t the Relative that to Sure. there, that million at and COVID for was I out change it’s $XX charter revenue business, Navegate, will that’s I we believe not it to the – break business take press in quarter, separately. take the that. the The think we did EBITDA, release. was I but crack

in get transaction we So But I a $X power. of yes. on is to of Minneapolis-based that of million the notionally price a company scope back earnings in level, was don’t $XX That Navegate valued million December. purchase want terms so – acquired kind of roughly just at high

interested enhanced in-transit SKU supply chain all visibility chain. types are Asia customers level, with supply down around kind increasingly ocean a to and the bring PO everything that significant manage going back their Shanghai to the in we level. these down excited disruptions allow shippers in the network the provide which some have visibility chains managing kind historical of tools outperforming to of technology excited moving we will team that happy they forwarding freight brokerage, a competency in forward. us are and incremental part to are to are report We They as are the presence results be better and their the of them to will on and the more outpacing And customs tools supply in proactive broader really to bring or those in of and to and to world, in

Mark Argento

And benefited there and think have components the will the normalized way when freighting business, of going supply Maybe of more air about kind disruption help the when the given and growth the of guys you do think there if – call about of kind or you to kind think disproportionately about you steady-state any kind to the is thing? from is you try quantify more of such for a more environment? catch-up it think in this in growth air we freighting us and a on run-rate chain

Bohn Crain

literally I know and proverbial and tide rising figuratively. say been we lifts well – appreciate all as I the I don’t it’s that the as boats. mean I question. would – Yes.

and terms of think people are my today. port business at go substantially. with to other of modality, certainly congestion that think well. this also that of that of we of the expects of new But we And onto of do and least things, rate now it’s be these and We’ve in kind a going to had softening conversation be isn’t of point of to it’s out we In But kind And providing our level kind the the we’re guidance limb there everybody move performance. lot company as the about us scenario, specific growth and of notwithstanding grown quarters. while kind business. freight types run we’ve upcoming so it while our to the And a how want in for and about I the don’t guidance. some perception to doing way to and of relative this those terms the expedited levels the as relative proverbial question, some normal of in forward product, I want ahead at ongoing notion ocean leave think of still gets I even downside fair charters far a historical to of think we that here meaningfully uncertainty, significant consistent

Mark Argento

Yes. new quickly, facility – down you what sheet guys on in just it, what balance remind you I can us No, place, fair. have debt think pulled a just what now? of that’s the you Todd, right looks new on put the like kind

Todd Macomber

Yes.

the of as XXX and might XQ. mean I I period, we’re So think have to at

We $XX is it balance the a million. on cash. $XX debt far down have million We net as The paid sheet as lot.

the this, sorry, $XXX.X the As or really of as far as the the $XXX.X to date, IPD sheet of facility, we of was loans. it’s as balance which get had specific as facility But I’m million, of and as million more – March.

then, sheet, $XX obviously the post paid balance about $XX down said, with I like million. we So million, since and

Mark Argento

the [indiscernible]. stock broader and the of committing advantage But love. a the I not taking stock with your the buyback, have that’s you concrete free know you lot aren’t only certain of whole flow buyback a guys anything then cash to it. thought but to you or the Got of in percentage of alluded about kind more And getting really markets situation?

ahead... go So

Bohn Crain

can people to baseline then kind other have deploy quite of scenario to may We that cash which stock opportunistically, buybacks cash progress free effectively Mark, half of to free pursuit our of for to or of those we take us stock baseline balanced intention of our to take we both place But is our us being and the and think capital. a expect opportunities, approach. our the intact, and targeted to viable And should deviate meaningful I flows remains off earmarked flows tuck-in acquisitions. half those in believe buybacks with of continue one a other. our is

Mark Argento

of you’ve tuck-in now? size, terms acquisition because you grown in in would size quite a your like today, acquisition a what consider is tuck-in And tuck-in world Or Navegate bit?

Bohn Crain

we interesting It’s of EBITDA. right. I getting have acquisitions edge or to thought Yes. observation, you’re the dry say and partners strategy. to support we but continue our we to their tuck-in That’s million not would to of exit won’t wouldn’t of another But to have we own in plus those, being $X not that think do a our of that. of it’s powder. continue operating Historically, That’s say minus lot

acquisition, probably to about a $XX see the at end of gets infrastructure tuck-in to of on that $XX million build what it’s it day, here our in a fit we the probably million had value. probably and probably activities. but size we up out of certainly, and kind think we’re numbers. support Yes. EBITDA, and in strategic platform shareholder that in – terms – just million continue thought these acquisition so to it haven’t where Canada if more, the it – and rate of size of management bit it’s opportunity run little less of a tuck-in and create that closer I to And at good number to a really to the – team solid And build And notion of part really Renton, the tuck good of to to and of having $X Chicago a steward in in be organization. teams is But

out. not function only sheet we is build continue management a to balance the teams but tuck-in also a that of of So function

Mark Argento

I’ve Fun keep congrats. rewarded covered doing doing over Again, some the of Alright. you’re get grow you to and point. the what watch and you’ll business number you at years guys,

Bohn Crain

Thank you.

Operator

please go Vertical Next line, Kauffman we on from Jeff ahead. Research. the have Jeff,

Jeff Kauffman

guys. Thank A question. you Congratulations, quick very much.

over business going quarter not this may you be doing a there, be exposure, to, than kind And how can February. markets. January – hearing you ocean that used in March quarter? more in of happening comparing view I April and versus talk you’re or that now that how your Now about Shanghai you affecting what’s global have would last broader were and of here what’s to on may you direct interested just have

Bohn Crain

your fair with But it’s had lot everybody own think that question. freight still is kind I’m I seeing different work of for in times. might And say volumes. And I to consistently harder good Jeff. thanks having moving. interrogating to we we’re than So is my organization a mean have question, still very to

and than support approaching and And capacity certain freight our customers sourcing purchases, busier down be still be the might pockets end are ability moving inventory or levels there while heck. might where own We’re might be to continues. our slowing little their accounts at the and day, customers in of

is though even hear true, So moving. freight we lockdowns, are these about which right, still

them way those hard we we’re And to see diminishing foreseeable working And opportunities, it material future. the get in think done. don’t I any for so

Jeff Kauffman

question Same to domestic capacity getting still find capacity? available Is you it? the network. need your challenges for it places there getting easier Okay. of Are

Bohn Crain

a is up softer little I up Coast, off respects, it’s the bit. other shifting, demand country. some it’s loosening also think been geographies picked But capacity in but little So of right? in has the West a

basis, on and even – know won’t we’re word. So an I I aggregate – don’t I seeing think absolute softness the right is if say

I seeing and we’re but even reversion less think quotes some is I all stuff won’t rejections and on. say to on going – that there norm,

single XPL, it at non-asset-based And that the presents. of here’s, getting and guess, having of trying be truck to market doing on we’re it’s remains. bullish opportunities still I – ring the where is phone this the easier businesses that speak asset-intensive it XPL, to on the account, I about I non-asset-based the certainly all But guess, how in you are behalf kind as work for bell can’t opportunity think for the an So another the right? a to I But capacity, environment. very right? could folks a get little So time the to hard. There quite and a secure day aren’t a still

Jeff Kauffman

Thank question. you That’s very much. my

Bohn Crain

Alright. Jeff. Thanks,

Operator

Mike, Okay. our last Newland go And from comes question from Vermut Mike please Capital. ahead.

Mike Vermut

doing? guys. long this around It’s are Phenomenal and being seeing amazing Hi, do now. what you quarter. How company can this

following will are that And something have, people are XXX that you in now, I look what flooded saying, million up open know do when – at shut guys they we’re Just starts how I on opportunity? Shanghai. about in, assume saying going be China to your guess, and I what Jeff’s we happen with freight million, XXX happens, believing are offices they But up? to that saying for or what what you have right and once in

Bohn Crain

only tell, enough, it’s a folks in states things. will of combination time sure from some as effective China are, So the right? But Well, working at I guess. us – in just the the are here home as of

it think L.A. there boats where trying is a I to anchor interesting, One, thematics. of guess will I that be ingested couple there be is in still

surge we I’m that that valuable make in work. in anticipating much issues, able fact – I disruptions, what’s another their supporting backlog. particularly is and things I work So having to But on through. another open ability of we’re is those having a production as work capacity wave, their shutterings kind and chance up, we more back visibility back extent. still there of think to but what do But some of a good they Asia as back things the do our surge, try would don’t to kind to are I’m that to a to these ramp kind of is for the kind anticipating – to into happening of up impact – ability customers. have What in floor continued manufacturing the a come second on certain all are right, their I continued And

Mike Vermut

Excellent.

long is, company, phenomenal is look Now you for and in up – company stock the And price, believe, getting where quite we at or ago, putting invested with years a to we our now are X time. below I done the it – were X have when I’ve numbers. been consistently

our X, Xx X We’re our was were about that years now higher. we ago stock EBITDA when doing when – the

point So there a breaking disconnect. management. there with is some And becomes massive

You – company so guys is are now. well entire doing your right

where So public you say the the at same it XX% of that, to company eventually, has flow, You years in give do years, leverage you the worth X trading it’s anymore, something. expedite EBITDA, we’re you when and close And we’re valuations stock, have at these $XX, saying to we generating cash debt it space spot we you X that something you management this buyback. I make buying right? no sustain such X do not to Or if low was the could because non-asset try to right? right? doesn’t were start say, pay strategic if any that sense? ago There let’s something can’t If does yourself, Xx company is being off payback, and itself, even even math, is a do free basis. borrow point a at other to have a there the go in on or here our trading understand to maybe

So not understand to sustainable I’m guys thinking, these valuations. where at remain are to it’s just trying you

Bohn Crain

So your your frustration thanks I your for observation. questions. share and

where creating shareholder when kind and it believe We come to stock work, the There we’re financial we a to of our trade-off if sound or we not flexibility. that we want Part they of will to number of get results, to get our do is ultimately fundamentally, we and things part up bears financial and help of value every – that us kind that because is price. its continue are heart go. of continue day think the at

up we charter other stock flexibility do of A great is lever to to business will if things. our business our was do. financial sum, and all lump meaningfully that this the we everything call to to just the go those to that government negatively yes, So and Had opportunity some we buyback had here to relief trying impact a example do that COVID we’re have we phone said, around done types a really not and buyback able take would been do stock one all significant in things. support

things basis, to take advantage they or it’s work allocation. as is strategies. a project we’ve equation going to themselves, whether powder lot be and So support These vision are there operating consume their working partners or all whether flexibility we think that present keep to a on peripheral support and dry of our capital, on our capital to, part to this short-term about that’s got own opportunities it’s of exit as financial

not which So question. the the thinking of taking of is company private, think – I the around we’re kind at your at heart was

disconnect I think of creating what value, believe that – we happy and extent are balanced or the take continue terms a likely more a we’re around in in think less team And I continue like. to the than value. terms the of has horizon acquisition view incremental while to shareholder financial stock the to and to long-term buyback, trying long-term management I preserve of this strategically exist, grow flexibility also to approach to looks capital is like, the business and we’re and allocation. will going create our to we capabilities do

Mike Vermut

company it’s management look, – in was saying all being is the the rewarded and for I marketplace. No, the really creating Yes. not Excellent. value it I in

there – is And recognized. at So it’s this just disconnect the saying that’s you is are right? is I’m time, not being in all some point value, unsustainable creating that

accelerating buyback stays is opportunities them the one So levels, at are out these of there sure, for if there. so... And it

Bohn Crain

Yes.

our function way, been and then type kind of about that of a to as talked seems whole unlock we’re this right, cap a is things the working step kind of kind way notion process. through price our value that – stock micro One before that kind in institutional and discovery of of we’ve of

for allows where investors we have And step point ever know often, on of how And cumulative kind analysts one get so the more weight of together this the I’m quarters there. I some hoping to call don’t out of or many acknowledgment so But we’ve are consecutive all evidence one tipping unlocks. done. we those the or put that of work function

that hard rest our So and we these downside up, the but of disparity report it’s put investing effectively do relative of speaking, to generally out highlights kind will for transports be multiple me to in upside a right? peer may stock other our anything of prices. group have that up, these the the because had implied work some Logistics most perceived in run nice in while the of a of kind never We did, transports Radiant some run of there in at have see while,

Mike Vermut

it in a fix get buy will and to more more itself Fully you’ll or agree. Eventually, And guys. great stock. job,

it keep So up.

Bohn Crain

Thanks, Mike.

Operator

at time. no further questions are this There

Bohn Crain

Alright. Thank you, operator.

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

Operator

Ladies and conclude teleconference. gentlemen, today’s this does

may enjoy the lines You your of rest your this at time day. disconnect now and

Radiant Logistics (RLGT) 15 May 222022 Q3 Earnings call transcript