Earnings call transcript Q3 2023

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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 Third Fiscal Quarter Ended March 31, 2023.

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

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

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

Bohn Crain

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

in we as Let come never by The is unprecedented. dull it's market the forwarding. in that me saying we the seen pandemic freight volatility through start have have

quickly negatively can impacted our year-over-year As heavily for market but March in results year the the has the to months. our comparison have only record also market period. release, were occurred recent These from the our softening conditions prior that the quarter freight impacted rapid by from not see of the evolving results, you results

The a robust and lines to now and mode services including elevated supply through has confluence ago domestic balance operating economic is the a experienced shifted oversupplied. of where a core particularly virtually every imports, one to across environment effect a truck that demand forwarding dramatic market of as been fall smaller reduced year been shippers a have of and cascading the year. continuing ocean slowing operations from we that tight of transportation, imports, off result inventories, manage relatively having of intermodal service hit our last hard While have some environment brokerage durable, our from the and is

the over cycle to way calendar the We at do levels believe expect begin are to we would their and and the bottom more normalized sustainable balance of markets of XXXX. to or near find

While our financial are created supply the quarter pre-pandemic results results pandemic ended for the market and by chain the strong from year-over-year historically freight numbers disruptions, from associated of significantly trend ahead to March down historical our our comparative era. the meaningfully continued

environment prospects and the in I everyone view cycle. XX, $X.X in our the over May come XX we from progress our through noting that the company. fact between March over cash nine is generated indicator quarter worth the a Radiant X. our as we operations and for in continue our financial the are in position in that stock million market we a debt months of positive acquired virtually million generated slowest March XX having recognizes million having ended strongest March months ended in the what through million EBITDA make nine of free through good with $X of seasonal stock buyback $XX very and as and remain typical It the adjusted another stock $XX very And history we historically as to

their slower back well we way our and work leverage Our allocation to And positioned period, through continues are believe disciplined we shippers low more remaining normalized capital we navigate approach market as inventories to excess serve well. and to this conditions. us to through find

initiatives, our shareholders, continue business, our leveraging will that to we and this our and value believe our end partners capital acquisitions, balanced approach continue extensive technology class we a organic with global approach, stock we scale of network, will station operating ahead, to over also allocation expect which for agent the growth time combination our and to continue through in we Through conversions, synergistic in Looking to tuck deliver customers buybacks. best along serve. meaningful

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

Todd Macomber

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

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

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

XXXX, income adjusted XX, net $X,XXX,XXX the for This $XX,XXX,XXX reported for XX, March to we XX.X%. March XXXX. adjusted reported net of $XX,XXX,XXX decrease three the three $X,XXX,XXX XX, months XX, approximately we approximately to compared the adjusted decrease or months of income or the March Our three three approximately EBITDA, approximately compared a ended XXXX. XXXX, ended ended for represents a months of $XX,XXX,XXX XX.X%. ended for Adjusted $XX,XXX,XXX months March represents This EBITDA of

Moving month the nine along to results.

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

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

adjusted XXXX months months XXXX. This for March the XX, income $X,XXX,XXX or ended nine approximately net XX, compared for of represents $XX,XXX,XXX approximately a decrease the Adjusted XX.X%. ended were reported of nine to net income $XX,XXX,XXX March

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

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

Operator

first Jacob coming Your Instructions] Lake Capital. from Street question [Operator is from Stephen

Jacob Stephen

my for Mark taking for on question. Jacob Thanks today. is

So do and have maybe into we hone fiscal just How maybe to that into kind want what path of does kind guys as this much normalization. of you enter in to look your 'XX? your like on I visibility visibility

Bohn Crain

sorry, as sure what? I'm look one question. not we I'm caught into I Jacob, more time your

Jacob Stephen

Yes.

your fiscal path just look crossing June quarters, kind year as here, of that we and normalization next into does to into Sorry, the look September like? what

Bohn Crain

all fiscal right? kind year this obviously pendulum I of in we think doing end we're with particularly all slowing So way of prior think as over point. at year I swung the relatively things other the disproportionately EBITDA. $XX to inventories last economy work had call, we those this our alluded pendulum on that we robust a familiar and the kind through back as and million has swings, And the

run we a we view kind $XX broadly. run of to kind what of normalized I to guess, kind But how for normal normal like of be think as the at the million question we thrust $XX out be of of, that this are of looks So and all of your in economy this figure kind the to million kind of of range, on million -- our framed trying rate. we the and $XX the us, come own more is, to kind the to rate call to to $XX means the would million get and last what new business our of

Jacob Stephen

of normal Maybe M&A you. see discussed overall. fill with at Thank as you just helpful. That's seen your you Have guys environment of… kind potential targets what wondering kind guys up just is? of as a or you new the kind kind of of approach and the kind looking just find M&A out taking pipeline are what you I'm Okay. wait

Bohn Crain

We're the support looking, of sometimes acquisitions a opportunity if think kind ready. tuck exit respects, existing stations sense. as make that potential set their and station and that view we pipeline strategies is agent -- built of we actively when a are our agency just deals lot hasn't We describe conversions. call find changed. always of they in of there those a in trying to what our And We as

have our then system approaching point no sets they story priorities strategies. seek around Appreciate idea lives station where exit for their So those aging and integration that in agent while. there already are ultimately and a on the risk. a the of of our own They their of our owners been is for

We support them to are younger. they here when any do No one's getting that.

which things occur terms of of margin. at those function will accelerate, over that as will gross rate a the to itself think manifest time, EBITDA expressed as continue margin We in will expansion,

our brokerage thematic. -- the synergistic forwarding our to one be could in Canadian continue other time, business standalone it At same intermodal us. our So would kind or be be acquisitions type core we platform. could could in in our be that Those of tuck-in business look supported that to by us, that's for

then to ultimately, support We buybacks. from platforms have And three which acquisitions.

value stock at continues fair view what we trade rates. below Our to of be to kind

And so our continue as point. just own relative capital opportunity money to back about taking and at allocation, set to look buying stock at think this the we we'll our acquisition

risk. other plus based buy Xx of aware integration it you not run plus multiple $XX minus XPLs, no any that or I'm EBITDA non-asset million with rate, at or can minus

view we us in accelerate capital, our attractive why rate doing use. at many which highest that's very the and it And we're seen a we of best of as use So, expect think most kind you've cases that we while go what about should continue look we've acquisitions. $X as done million a kind for more I quarter of that as recently. of And to people

baseline the of stock how strategy. in using free described the thematic as half before, individual won't kind that's acquisition of that cash our again, but quarter of taking back approaching the and support free on is on of and to flow buybacks aggregate, cash our underlying kind we're the So basis, it half scenario precisely we've And course, an flow other for the market. our be of

that to from we're And look But us lens going that's that see our of to which we'll more scenario we're to at baseline would then something if interesting, obviously, cause everything. through kind that, the it. or we -- looking larger deviate

Operator

is Alper of TD Your Cowen. next coming Elliot question from

Elliot Alper

the about it But freight difference remarks. little a to the start and bit in could want touched briefly know you between domestic the prepared you I if talk businesses on quarter? forwarding. the in I on international in

Bohn Crain

Sure. Yes.

aspects a of couple of that. different So

definite, the And to service relative of and proven expedited at core actually time, least our our business at So through kind service our domestic the at cycle. it, reemphasize forwarding, is look the the kind durable, most look of core North the be heart performance, has soul and to point line, as forwarding our relevant -- of America. various lines of we their this kind or at across business business, and

million $XXX to core more business. comparative described international that just well sensitive do in particular But we forwarding which worth has which and basis. economic the forwarding, that as that we our domestic looking of as broadly, is been this a as business at on as we several cycle, back come then we're business, forwarding, ocean more to But

everything had period. the we XX where for and for only ocean I through came pandemic a kind challenges the supply all all line business, that a month to is of divert within that Historically, COVID of And and was of out second. an at It relative really around ocean the over here place term, in lack smallest chain if contribution. want happened service this just you at that and disruptions ports the and looked took our the pop, better of services and that was

market to the a in had able opportunity in within were we we what nice So, that going participate set significantly. was

of so And balance in delevered ever the of it sheet types and were the company have significant parameters. to all has business. those been process, set standpoint, opportunity. flows, generated strongest really cash from And And up that the that kind position us through of a in happy we

look you numbers down that. was at. kind down Yes. which quarter last this numbers ended show 'XX, are are our meaningfully have it the of significantly, they're a quarter March March March ended on we year-over-year if in the comparative March context, quarter for for put So our than And pre-pandemic they higher numbers the to basis? of But were

to where in we the were and generated our flow good anomalous stock. interim this the we're that use well buying significant amount able were ahead trending historically we we cash delevering So And a of put March quarter. business back to of for and period,

Elliot Alper

China maybe are that. kind anything Now, reopening guess I following color up that's the the helpful. guess, for international noteworthy I Thanks any side, you or on seeing on side? of just

Bohn Crain

go think is but -- I'll I green out we're I a think ways -- use shoots, right? it well. optimistic, we're sometime, banking here term have we guess shoots where to we as certainly I green seeing I think some

So this but next in will return we we be rates are, it in of types are of to not certainly we'll ocean return if I I those levels achieve and the all more But year things. think, we to cautiously working last that or It's terms optimistic. going I not of and at to the that a direction. which think But rate we're recovery. normalized right calendar optimistic environment, think calendar just year, year's the

Operator

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

Jeff Kauffman

more of we're going all in the and and normality, some are Well, kind it's curious, environment. you? first of talk curious of general now of view, ask I Bohn, where we're I for side two and specific industry your kind curious, to back one all, about different of we just here, operating receding specific, coastline questions, I'm what's product going to Todd. different kind to looks back Whether just financial challenging can. just congratulations I'm kind But started? nobody how on really of a of specific, normalization or want other if we a and as little the to market semblance where sure. floodwaters the from I'm One kind of is normalization

Bohn Crain

to they be to be sensitivity business and talk to a potentially of switch, leave I don't flip Well, the there's binary, assuming There's I interesting go going of around more if to think means and even to strategies to execute to Asia true assuming and all But time everybody nearshoring be strategies. going and higher see. long not going to sourcing Asia. a are mean, not a things even and take I out that'll though evolve. you certainly in Mexico. a those That play maybe those or kind of states? are lot narrative want are And big it's the an strategies, it's wants certainly whether people return, action -- of how think going to spot diversify, the going see of of in that's us reality interest, some there manufacturing a will. be an return terms right? see our kind to narrative, area Whether basis, things Obviously, quickly are watch is But more out. shippers in domestic pretty happen forwarding seems I kind and a of just on will extreme, that's think of would for that aggregate don't our that to to right, of deeply But the I sweet of in follows positive that really terms we think be would that our business. how

So I would be dynamics of unfolding. positive a the all for us to types think those that extent

Jeff Kauffman

a Could of that? the was of less was previous where you And then of it of looked were the a rare D&A for. This you'd EBITDA had to we And Todd. talk those in of and looked what which couple detailed one a question than the was quarters. more million bit light hoping little dollars little Okay. it, quarters run earnings part the a for source couple of relative about rate great

Todd Macomber

basically ended -- it that up was off. We names we Sure. writing trademark

We been clipper, converting from their have it wheels. stations previous was

begin companies kept those bought names a the with like transitioned writing to Radiant time over relabeling their up brand. and a of we we that, stores, Radiant as we stores, up for and in to the things trade Radiant while. that and associated like And end the we period takes up that. conversion As the to names them We end trailers with to with,

Jeff Kauffman

would that speak, shown I'm apologies, have as but we through the write itself? going And release just off where

Todd Macomber

the amortization Well, the It's trade in it's gains. of the amortization.

Jeff Kauffman

right. Right, Yes.

D&A is the less. So

Todd Macomber

exactly. line D&A The

Jeff Kauffman

you. right. got I Okay, All

was all my Now guys. Congratulations, questions. that

Operator

coming Vermut live. is your is Jeff. Mike from Mike, you, next Newland Capital. line And of Thank the question

Michael Vermut

Todd. Hi, Bohn. Hi,

look we this anecdotally, XXXX the your heard you the I how the when ourselves worst markets that was of what's 'XX? current, remember. look way to versus So do one only have at to the versus rate compare that you market. And at opinion freight is, market now in currently -- comments freight guess can 'XX bad is many of it

to good So are of are market a you really freight a would how specific now understanding what in we performing in market? get say comparable we

Bohn Crain

know that to specific some quarter. I I can is Yes. point seasonality. another don't there Look,

March is versus the I point free, everyone in $XX on million acknowledges if bad, a reemphasizing, debt that think of kind EBITDA which pretty is, -- if rough the pretty and think you freight along where framework. March the I But good our doing for historically, is this Radiant within worth are pulling So we is is well, are right context, is this we're that quarter terms are. of that's still Mike market, worst if and this seasonally of

the as obviously, move some market in some continue we economy as see results get as improves opportunity to forward. So the improves, overall we to is and the that lift

think if can I I'm entirely to that's your So, not sure, I way it. that's responsive best question, come but at the

Michael Vermut

I getting the right then Yes, that And was up on wins, customer looking where pipeline after. now? was how's

Bohn Crain

and There takes. are puts

customers cover out, I'll get great So certainly certainly of to customers. But customers, when new were married. shippers their not the in so we their kind market date so, in accounts we seeking time, larger providers up weren't to loads, see. the when ocean new particularly what that new and tight, service and just wanted there service winning was call, picked of it the customers, same some some out servicing the they providers is firefight larger segment turns to are incremental things and there so -- and were the are At which really

kind have with they But market historic retrenched of in some while partners. softened, has as customers the of dating those trading mood. dated we their types the So of were back

the they're press So right? market base in aware, lot pricing capacity, companies have a excess asset this is a lot in the kind get -- And environment, as price down this the of environment. you're now. what's of takers right asset-intensive And keeping of

little balance get and the between demand these volumes and that's along things to would write supply until of bounce here. period better So, themselves going relatively we're what we time, over short a can expect here. But a capacity, inevitably, we

Michael Vermut

you And out pricing that get then take? last, bottoming here, sense or like feel you give is the do

Bohn Crain

do. I I do.

Michael Vermut

Well, look, quarter and great balance relatively it sheet. was great a

forward next few So quarters. to looking the

Operator

question next coming [Brandon Austin of Your Veneto]. is from

Unidentified Analyst

haven't shareholder, spoken we new Relatively before.

balance of sort Just $XX things like We clarify haven't years. here, Can right? cash means negative That million. $XX a several debt negative spoken positive the net just net I for the here? on of double few million, sheet, of

Bohn Crain

Correct.

Todd Macomber

Yes.

means So debt at had us, that. cash, we least net cash for debt more less so than

Unidentified Analyst

that's And I anything. make how So do I I read balance to just just to sure the sheet. again, sorry missing wasn't wanted this.

To on mean share $XX.X is and focusing EBITDA of annualizing fair a adjusted be seem to future not seem month period is trough that what people there do I clarifying XX income, would macro. to about $X.XX extent managing to some I very and that comfortable talking million be hearing we're to net that? that a far say to quarter a some Just you guys guys Or you more it able that were other trough the your in out in saying in macro you is do? comments seasonal from be little

Bohn Crain

would in say that. would something normalized environment, annualizing I Well, be of a north we

Unidentified Analyst

Okay. $X.XX I in great. like, mean, and million. looking it's earnings No, $XX I'm at

environment. to XX normalized, normal saying in a You're XX

not lot if environment call are just ready sure people of And covered normal they like made couple a a I targets? of but multiples? three have two, might this. what's than cheese we've relatively Like, Are we better the fighting think here, are feel for I'm the but the they saying unrealistic it the easy Or… acquisition of sort a day? receptivity years, was just mint a on of getting in look your they it after like older, do side, don't years how fight? know, last to I people just it

Bohn Crain

right. go think back my Well, analogy, I to to pendulum have I

and to -- be knowing leery you're more everybody more peak to difficult some on it on months, the going there. there's earnings, least in correction was transact difficult to had XX So XX to it earnings, for transacting us, peak at last was out because

again, between any So buyer those is, kind center fair with types to consensus here was the likely businesses of own pendulum near-term sellers well, building of what and to because and for our a results similarly, of what's of we outside kind of are world, going back our aren't earnings these quarterly representative And, run dynamic on. power just of of conversations. rate normal

these transact -- markets easiest So been it's in. necessarily haven't the not necessarily to

done have significantly would a that multiples, With up we say, I'm sheet really with it, we I a balance likely and acquisitions leverage of happy conversation high call lot said, of go because that. on having approach didn't and had, the be do would disciplined we really this had our different we

sitting the so, And doing of I'm wins steady slow we're not be the we've day, end cautious but thoughtful. that really race the at today, acquisitions taken it's sexy, and the at may here the and approach, rate which And sometimes glad

Unidentified Analyst

Sub patient. XXx X.Xx we earnings I and can think EBITDA be

Bohn Crain

Yes.

Unidentified Analyst

money here, push need make to Don't anything hopefully. to

Bohn Crain

Yes. just Well, is great your our I back point, to option. stock buying a mean,

Unidentified Analyst

your bought stock. Already

-- all bought stock, so So agree. your on this everyone call we

Bohn Crain

it's never buy late Well, more. to too

Operator

closing And now our Thank you, of Bohn Q&A I for will any session. that over hand back to remarks. everybody. be end to appears

Bohn Crain

Thank you.

our remain we about tuck-in buybacks, robust North we balance have conversions, agent great a to sheet global at to to here optimistic to same create of synergistic value. continue American created leverage acquisitions close opportunities me platform of service network stock we and that partners, the the re-lever footprint, on by to to continue time, combination prospects build and intend our best-in-class Radiant. shareholder thoughtfully saying continue technology, through extensive At station Let and our

your you thank and Radiant continued of offer Logistics. for With that, I'll support my thanks

Operator

conference Thank today's conclude does This you, call. everybody.

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

Radiant Logistics (RLGT) 10 May 232023 Q3 Earnings call transcript