Earnings call transcript Q4 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 provide a general Business Update and discuss financial results for the company's First Fiscal Quarter ended September 30, 2022 and Second Fiscal Quarter ended December 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

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

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

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

Bohn Crain

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

It's patient and we've last reminded for driven role First of through this and our keeping loyal our by few foremost, shareholders logistics and process. to were economy We the I XXXX. moving. of of lockdowns of want with pandemic essential over the these us all first battle and tested thank fair say being associated years, to all restatement transportation been that

and us, across food world. customers fight beverage, active the and our consumer against other For this technology products things, opportunity America the for PPE, into goods, an role around COVID other in translated to play delivering by, essential North among the and

we to our bring chains face lockdowns, congestion. set extreme in challenges with back different of base worked prices port economy of able their of we those capacity, to help as were opportunities online and the transportation recover soaring presented customer shortage supply the initial fuel As from an broader and a were

I we Officer, call. review were XXXX, will event that the in of process. cyber difficult for in completed and with through we experienced billion And rigorous we our extraordinary to the put its detailed debt Todd, along the review generating on ultimately, EBITDA paid speak off own $X.X and a the Financial of later ultimately, of now effectively Chief very in restatement some have set have a numbers challenges. leave some results, December the paces created face way. In million delivered revenues, But over numbers circumstances, the the $XX our In little bank themselves. of our

you our aside, accountants risk damage would two attack the to world we all fact the $X.XX statements amounted We the Why fair restate doesn't of millions as stronger. pay was to of kidding cliché, discussion. organizational numbers, lawyers COVID, ultimately, know kill the it's financial and company being makes in of to that the sets. has we've All the undergo and in a everyone what the that point brain well? for auditors, a share, per the run survived the particularly and cyber of survived the which chance delisted you doing But so even its digest dollars, light company

choice, as first I the and opinion. very Restatements different for our come show, subjective, In flavors. by restatement the need can not is assure the was small case my was on answer impact the Well, in results financial the the in very you. our numbers in place

consultancy accounting recognizing guidelines firms is and for that for XXX ASC for of there. on ASC accounting the public provides in-transit our the application revenues restatement relatively out new and call for accountants in related great disclosed source the revenue, filings, incremental the a As accounting the of our to revenue a pronouncement XXX. and

revenue inputs basis. new transit delivered. times became generally until companies was of on on to terms these XXXX, considerable the of a delivery expected game came important in rules effectively and of require historically and along not industry, until These as transportation we ultimately margins the shipment required estimates recognize recognize and changed is ASC effective the revenue percentage completion date. that In That begin are guidelines XXX to in use known a

of restatement. in-transit the sheet estimated revenues of These as line individual sheet is balance ground asset. our to map zero became It the contract item our for face balance this on a face that our

billion in for base Given in the million financial estimated gearings income, million to revenue misstatement adopt that their of model, net Even our $XX the statements. really $XX in have viewed even effect to so, on much doesn't EBITDA be own our swing require of judgment auditors even of restate financial matter. statements, working of $X.X viewed to the business therefore we capital when contract our could financial our in as reader agent our asset, revenue relation an the and isolation, that a or that concluded and material as

results, This and fact on restatement the covenants, effectively of negligible, EBITDA the we financial net is no relevant that risk working effect were the world The at the the in fact fact were and breaching none capital live. was that our free to record to debt of we the analysis. that of be proved delivering we of income, that which any

considerable place? times, requires why and in-transit of terms for in the of previously inputs So revenues known transit a ultimately are in revenues mentioned, important As in-transit first these were use delivered. shipment off is not margins estimates until as expected the accounting

our the revenues and Even cyber to accounting that the shipment at improve to for improve congestion ultimately in-transit estimate restatement our and ability These extraordinary were volumes to our of we U.S. initiatives ports. two underway experienced process. a number revenues. need in-transit event factors so, the frustrated have our unprecedented our we recognize periods, to accurately subject During

course the our ultimate of proof our at And while this these improvement in byproduct to overall it continuous of several teams, testament as of last significant a years, integrity short process that a was behind growth that all now need of for of mind it numbing, our finance always strive of and have look strong systems, work nothing us, our we to and we do. and the and talented the we accounting positive over financial

Okay, so topic. now that's enough on that hopefully

turn my million great other million making we In me comments in to the XXXX, credit of facility to fronts, record refresh a senior that Let August the addition of opportunity progress on expand results. $XXX took we've number a $XXX our been our and with facility. to

the really we accelerate choose. support our in stock provides Given financial company’s banking now to repurchase the and us facility what growth are the new facility is as continued going should as strategy, a to have in available. and access on place This fully capital we with markets, to flexibility happy ability well

$XX that months our buyback approach the XXXX, price approximately continue allocation longtime XXXX, strategic Cascade strategic progress December through we In to And Minnesota. To operating purchased a XX in into the and of stock stock to partner, end, completed good we XX, per we average at acquisition of for of Enterprises an our October acquisition initiatives. million of make share. $X.XX of our of combination balanced capital

continue December completed be million. American have our buybacks, And of of and finally, And XX-Qs, filings at as cash the North two the to with $XX for trailing with And filing to have hand the to best-in-class we're of with build bringing of of the recent EBITDA global to partners these history, robust process the business we we December most Radiant. XX, for of XX here footprint million get and our in million. XX, XXXX XXXX, to now purchase technology, great the $XX.X have at time adjusted on platform leveraging of current of the back $XX.X with net our And on SEC. sits stock the debt no company's the excited able extensive total debt months network only and the Cascade service into we even first

for As about diverse and customers the remain we definitely to 'XX beyond, signs to while optimistic our expect and levels a return economy we are offering growth initiatives. believe strategic normalized upon to slowing we and continue quarters. prospects to a and we more positioned strong execute seeing are very of We rates with well and fiscal sheet coming previously our support in balance discussed, operations durable, broader service our

it Q&A. walk detailed open then through With we'll up us financial And our turn over to for that to Todd I'll it results. said,

Todd Macomber

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

financial 'XX financial Additionally, results ended the providing the for we three will December months be and the September XXXX. fiscal ended 'XX QX year six XXXX three fiscal XX, months XX, results for and QX

are year 'XX year fiscal QX end as follows. results

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

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

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

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

QX. to Moving along

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

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

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

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

along QX. Moving to

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

This X.X over September the net revenue, months ended or three for approximately XX, and year share. million period a on XXX.X of diluted prior fully decrease For net $X,XXX,XXX of of million Radiant the Logistics XX%. we reported attributable of income income of comparable XXXX, basic represents $X.XX to

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

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

results. six-month to along Moving

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

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

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

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

will moderator callers. I any call the from our Q&A our that, over facilitate With turn back to to

Operator

this At [Operator be you. Instructions]. question-and-answer a conducting session. time, will Thank we

with Our first question Argento comes Please Street. Lake from Mark proceed.

Mark Argento

just drill congrats Good guys, on in guys hear all of see to Hi, good you continue bit here. down little particular. was Todd. a call on that long you finally to It and to the perform. get for to I on you Bohn. a business rigmarole Hi, getting slog comments behind some but a your wanted

what is But in the rate good obviously the of you XXXX, bit new thoughtful COVID, kind little that. point mentioned fiscal last economy bit, down had slowing environment changed million us just in now guys business You XX here both for little a you and since a hopefully down more year give level is means has a last 'XX, a normalizing post kind a slowing could year that maybe a you and with And can also the today? run your or basis us kind than for rate little bit or little run you did business EBITDA just color around EBITDA greater maybe something little kind normal on a “normalized” environment what's but more of gross the just is. bit even of on what a revenue at particular, if of the

Bohn Crain

shot normalized I cautiously be think be harder everybody it, moving uncertainties which by asterisk right rate many take million now. answer. best put harder rate. be run that run my the a by kind at that, think there I frustrated parts so I now million of will are $XX But and lot getting which of is would to and marketplace, at range to is might first of half $XX an further would EBITDA That's a 'XX labor But that that a would But I stab the feeling. not in very calendar that inflation reflective right of in

like guess I is, EBITDA seasonality to everybody's the but you just to was the we the of trying but be model, -- I first QX. times first and lot and were unusually I there's -- the QX a period reconnaissance, swinging on you that necessarily know the just half or going XX inventories about, put read using in these to at way of XX down it chewing strong unusually year million wouldn't the ultimate work also are kind quarters, of a pendulum were really of of weaker times, Obviously, is to strong if this through. least I As some of as excess boil that think couple there's through people market think

unusually And right low now. trade point is at so an international

going saying year XXXX, you normalized do I'm think between difference are not ended to be think do answer. what a what there's -- you And results is? we to when for your prepared So fiscal which

So question. hopefully, that's responsive your to

Mark Argento

time are guys having when and even were I obviously restates you where dividend thinking the buyback. deal you've a then you And healthy you ever it more other well where kind little in the a do with been about pandemic through obviously net we might a the above and position. still guys opportunities bit cash the cranking an crank any active talk whatever little buyback done, are up bit, that before But think types kind helpful. with stock, got trading, to the or overhang, a very clip either know But to of potentially reasons through here running you I of taxpayer That's generating, flow into like a why institute XX the environment. a seems of to it’s incredibly could broader interest market Because a are you get call be, don't expense, dividend? you're any have or aggressively you guys it it, you're machine. if gathering XX, know now, but cash that's

do further you're So to going all any on what with thoughts cash? that

Bohn Crain

would I'm move to a we not dividend. that envisioning

this of our kind think of by process restatement which kind I alluded somewhat we we'll, to, to strategy, as back been unfortunately. get core we've kind of off business task taken

have flexibility, because opportunities people expecting right? been is was that's financial And early buyback younger, and opportunity for very itself. lot strategies word, all And be good real of to more be will think that those our was. because over doing we the as a in uncomfortable acceleration agent of that in our aggressive owned it's of the as could Had acquisitions period, was stations our levered of been restatement kind buyback I balanced to So getting a type ultimately one acquisitions present aren't on So pipeline approach taking I to are exit fact conversion a of of thesis and both. providing think agency tuck-in of the very think that company for to of the we one uncertainties. continuing kind And right, not vibrant. to super of potential this to more a and if of stations, stock agent of And to those likely manifest me, it it trends would we're is, about an tuck-in and built believe as is in of some look remains uncomfortable. for enough gotten that Radiant stations have itself the kind find things, stores, and any acquisitions,

our and normalized half to flows, taking the accretive of notionally to get that leverage to it strategic back that So on our kind trying of knitting half cash on are transactions to work X.Xx, putting of believe free of buyback and of work we value.

Mark Argento

look helpful. moving but forward play and how things Again, super That's here guys. out And from to hear you execution. on congrats the forward, good great see

Bohn Crain

of to good We're Thanks, talk be here. the just to on It's phone here happy Mark. us. end other to you're the

Operator

from proceed. Jeff comes Please Research. with question Kauffman Next Vertical

Jeff Kauffman

Thank getting side other the of to congratulations you on the here. very mountain much and

Bohn Crain

Jeff. Thanks,

Jeff Kauffman

questions, if can. I two So

First lawyers Is through little bit et more consultants, step SG&A, and be I one running would is a lot up a maybe cetera, because this I'm sure billable expenses there's rate that about million. hours run been of from than big accountants, of a between normally noticed X case. a been the

Bohn Crain

Yes.

Jeff Kauffman

Okay.

been to per that running go quarter, done. about should now and is down it's X this million to million So extra X start that

Bohn Crain

Correct.

Jeff Kauffman

Okay.

Bohn Crain

Hopefully, would think -- $X.X cost it put million did was $X the I it restatement -- I what estimate wouldn't a that not us per the I kind million. my don't to quarter. rough at on of put in aggregate, of

Usually, that enthusiastic. some I want haven't of So that They just to fill those sometimes. dial back. invoices gotten

Jeff Kauffman

million XX a is running. quarter. down run little. of year million it's around was that. a up quarter, up kind of that In rate right, rate so run it quarter of year year let Xs X.X rate low And All a stayed run million a from maybe about XX went million a we But per about ago, recast third a coming me from a XX to where

might million be? X be other this? of to What X the So you're would or that only saying related X million million

Bohn Crain

We call. after can dive to I'd to talk -- into have the get

Todd Macomber

it the there, our have A component parts. you'll acquisitions of part Navegate be incremental acquisition Cascade so you'll of will we've have be two done, that will

Jeff Kauffman

Okay, what Thank was for well that's I you. fishing there.

Todd Macomber

trying -- costs. includes personnel That think Personnel I I'm item remember item line separately. just broken don't myself. that line to out is

Jeff Kauffman

and Right. We got commissions, we got we then got Personnel SG&A.

Okay.

all. a we numbers. the to go I through that get numbers, That's have Now chance

the some headwinds, alluded so And groups view lot things actually might kind a Okay, of And got your comments. are you And then getting going the we're for to going And of of how alluded give a a obviously, from as specific then a to little globally, where second Bohn, things great retail are things nine us back inventory normalization. getting changing. on. obvious you've might little feel we're are to be you're okay, I'd to on getting to about industry where it a But seeing. different kind correction worse the at down in bit. question. over things as got to right, are if we could better moving increment? better that going you of drag maybe next And maybe specificity months facing to of and give of a could regions A where just because or us, trade maybe that it more that you six talk the be love hear you world, where B, not

Bohn Crain

do boarding think even the today, So both happy very well owned of kind well to and I continuing of the is continued core for durable agency and domestic a boarding ultimately quick guess company in to we it's stores to most this, this cycle. just really logistics through are well. Harry kind has pieces do about business as well doing say of our domestic contract backdrop we as very core as a Canada, great his in job. lot service that's and us a just do to transportation offering Again, has really And Canada continued reminder, done serve bundled to date well. really, with a our business of our team

call through business are has C.H. of what little now truck that pressures, intermodal a not have we to & rebranded Rail, boats used with We freight gobbling unlike been Clipper, to bit and world than Robinson as environment. Road truck or brokerage Radiant asset under exposure up the they of economy, more a the would normal more a or the the most brokerage slower base of the in guys freight

are folks brokerage bit. the the now on it taking a So little right chin

candidly, through and so place into as And and ocean been a is the will And the specifically hit way Transpac international that's back what trade ultimately area and of supply trade. better particular, [ph] ocean to work the in hardest and taking comes carriers that its euphoria demand the in phase. with comparative was then

that's COVID part dynamic in and things of kind those coming softness terms So taking optimistic where pretty But the But being acute. of of again. was China their Part to that of have to has back the all but of facilities China of New all holiday manufacturing these most late of outbreak been definitely kind some are strategy that the -- of in contributed we're conversations, of Chinese we're extended on things and Year those slowdown. extended now. online in

of so things, in the call activity. scheme that relatively while quiet guess what I you shoots would And in see been we green it's

And to its happier that'll way that something to work so would all begin hopefully, we be with. back

Jeff Kauffman

green about just of and cruise for now, And a the Vegas I still wasn't accelerating your all cruise and that on ship have trade lot anniversaried there that seeing talking I commercials show were and kind the like I'm business the right you we line down. a Orlando assuming is as when talking And book? were you're it shoot pretty COVID, domestic business again. about seems are locked obviously, of remember Las that's during business, how green well TV, we or I'm in or busy guess shoots, because we

Bohn Crain

that [ph] America core domestic even do business the all time just footprint pretty well. but we is, North definite doing and beyond That our is

Jeff Kauffman

thank hosting you thank answering Okay, great. questions. for the this for you and call Well,

Bohn Crain

Jeff. You Thanks, bet.

Operator

TD with Up next Seidl Jason have Jason, we please Cowen. proceed.

Jason Seidl

have played theme Thanks, operator. the Bohn, could Welcome guys Todd, Kotter you here. think I Back,

you have So back. I’m glad to

Bohn Crain

that. have of thought I I Damn, wish would

Jason Seidl

call good time. me next theme ideas. to music some you give got I'll You

questions end quick here. Just on a couple my

you You any debt. don't puts long. position in net debt enviable net a a have not talked about want That position, too too, to but having you very for

between you So out in your you're that now that back terms in Xx, I there marketplace X.Xx talked use get needs, suit should if that just there some with, and of you or acquisitions and we about long getting are of the to those what maybe buy back how think no assume you just about stock? comfortable

Bohn Crain

Yes.

Jason Seidl

for enough. That's thing, it what did your And financial sort Okay. fair those? guys, painful process if very controls? other so, restatement, you the a needed the increasing of to but terms obviously uncover of were anything that you in And do

Bohn Crain

of think areas So volumes identified kind can is I do where there room delays the of types at improvement. absolutely. short we better test get things, those answer and of all what and of was the We stress and always for the

to the engaged on those. network it getting working nodes to various the and of job they're the inputs of locations better of able data sure giving operating estimates. we're to or more all interacting getting right so Kind our the of be And specifics, kind field a into to really make do our down with us gets with with

Jason Seidl

are guess I than you that, painful of So went although in? to stronger this, safe you it's out coming say when guys

Bohn Crain

doubt, Without a absolutely.

Jason Seidl

voices are Good my those to two gentlemen Well, your again. Perfect. hear there.

Bohn Crain

Jason. Thanks, too. yours hear to Good

Operator

with Vermut Mike Capital. comes The next question from Please proceed. Newland

Mike Vermut

of and to all easier us How all laying with it's you Hi, here. is guys. from get doing? nothing this. finished else ahead are Nice Hopefully, stuff

the everybody cash Xx so of when we're do position. got EBITDA. really We're kind coming We balance EBITDA. have, like Even said, at sheet the net off building normalize, X.Xx, it’s we incredible. what with that we So we trailing else there's trade nothing huge that on

at where at I spot, a come near in we're flow, yes, pace we're Xx am $X that it, you we're maybe but lot completely balance and we the it, Xx point or normalize -- were right? at have same there EBITDA. buyback, we're look or normal EBITDA So XXXX, at we you then were If I down of EBITDA a -- the looking perfect now is is understand When which the about if sheet. we the Xx a math, our we've

company say way it buy we crazy, XX% we because chunk, the under could still If opportunity leverage. don't give in like took back change many there let’s structure of an you've that. and so you out Is and undervalued you is the it. so say, And sellers million, of opportunities just is get it take you a where here, to take we're there's company, accelerate point should if $XX the you to well, to advantage a this that huge company performed want capital the you

point accelerate some would So at at it you levels? these

Bohn Crain

on of kind certainly table. It’s the

to response we to of looking out think my guess I if of have our kind work continue the to I But there's see to pipeline what there. opportunities, can at which ways. earlier more evaluate capital question, we very kind the reinforcing just then far, tender M&A be -- the and/or we're constantly and whether to would. in me best if And perhaps buybacks. It's do unclear better it aggressive we a not we aggressive there's the in rate gets us highest to put

in cases cases, some your advisors millions it's really treasury. a share tender nothing some scenarios I other where consultants there studies doesn't done there's gets some helped in and dollars than case together, think pay out of in other and to or that put you put

windows. dent by I'm as our demonstrated on So a But ability sure definitely quarterly trading to saying basis something It’s a pretty our not on Board evaluating during a the leaning our we into good have and if we will wouldn't. part just even I'm doing didn't, of it stock make be that we basis discussions. we quarterly

Mike Vermut

if capital is, point pay dent in huge the this at company one time, positive this, you make the for in this then to a aren't Look, others right. should. willing the can structure, And

company, done for the is everything. So valuation the congrats what an you with amazing guys have so you've done job, absurd on

Bohn Crain

Thanks, right. Mike. All

Operator

of the end to session, the question-and-answer now remarks. call Bohn turn the reached closing and have for I will We over Crain

Bohn Crain

you. Thank

we global allocation leverage through North me technology, combination believe and our and of Thanks will continue Logistics. continue approach network Radiant. Let expect acquisitions and we and same by of platform our continue growth, meaningful to support great the about to At for the your we remain balanced to end customers buybacks. that strategic our operating shareholders, a stock capital here the stock create of listening extensive continue optimistic opportunities our best-in-class prospects American robust and our we to build for to saying of Radiant partners value have at to and acquisitions we we close to partners approach on service that this organic buybacks, Through footprint time, multipronged serve.

Operator

conference concludes at may for participation. you time. and This Thank you your lines today's disconnect your this

Radiant Logistics (RLGT) 28 Mar 232022 Q4 Earnings call transcript