Earnings call transcript Q4 2023

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Operator

Greetings. Welcome to the financial discussion for Fourth Fiscal Quarter and Year-Ended June 30, 2023 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

for Radiant Todd and general June Macomber, and financial Crain, Chief and business XX, Bohn fiscal discuss Officer, fourth Financial will results XXXX. afternoon, Logistics' year CEO; Founder Radiant's update quarter This and company's ended the provide a

is Following comments, conference open XX minutes. to questions. the their for call will This we scheduled

The forward-looking these and cause the This Securities statements. Act the statements achievements implied by conference meaning assumptions Securities the Act current and projections the subject Exchange from to of expectations call statements may results expressed based about or actual may different These about within are or achievements include company of its or on future XXXX. to XXXX forward-looking unknown forward-looking risks, and has results forward-looking statements company's that and such of be known the company materially uncertainties events. the

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

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

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

Bohn Crain

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

well growth own elevated imports XXXX, The of to a difficult the of virtually continuing a the inventories, shippers entire every sector effect across Our on had results quarter through mode June as transportation. slowing operations. and manage the reflect freight for the our effects economic cascading macroeconomic reduced of year-ended as has continue confluence to and markets XX, transportation

that their period. And would and to as the while from or bottom current down market we are for to prior to record year for results said, through generated in market continue but cycle. at impacted prior the our in results indicator our quarter, the adjusted this conditions near way coming view fact find the prospects year-over-year we comparatively, to levels this results, cycle we only our $X expect in the in over are we these With believe negatively markets as not have also we the very comparison As the of a that sustainable EBITDA normalized more quarters. million Radiant and our quarter I and difficult positive begin

out from delivered pointed press million a our in XXXX. we ended fiscal $XX.X June we as the in and XX, release, addition, record cash In operations for year

fair approximately is in our financial on facility. June of strongest million drawn our the the repurchase to on have relatively on same attention million on XX, to and we in nothing and just $XX.X hand we $XXX position paying have the of cash say And history. the over this 'XX, are stock. allocation, focused disciplined approach deploying $XX period, Through quiet remained to capital million instead down have our and front as debt it acquisition that credit we company's During

At balance our more sheet, through fortified as acquisition should believe as our powder way find front acquisition rewarded active on to disciplined strategy, more markets dry ample our we more we conditions opportunity be present to positioned become are market slower market our may back and these Having navigate patient become have freight we itself. normalized and believe we conducive conditions. we the same well to to time, the the

this organic sheet and and tuck-in thoughtfully conversions, acquisition buybacks. combination and Looking a stock strategic relevering profitable ahead, acquisitions we through delivering balance and our station of will remain growth focused a Through of through on agent technology initiatives combination continue the end which global time serve. and our will we partners network, best-in-class continue operating to customers extensive leveraging our we for meaningful we our shareholders, deliver approach, to value will that scale over believe business,

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

Todd Macomber

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

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

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

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

Moving results. the XX-month along to

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

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

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

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

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

Operator

session. will first we comes question-and-answer time, (ph) Jason The question a Cowen. this [Operator with proceed. At conducting Seidl Please from Instructions] TD be you. Thank

Jason Seidl

at off little bit here. a and you, Thank macro to Todd, Wanted Bohn, look the operator. good overall start environment. afternoon,

indicated you think that at guess off about recovery little off you looking should fiscal million coming heading a how year? that $XX shows that we we you think the of maybe bottom bit were we're I of should I what Radiant's $XX coming and a current are you into a some. for How to here. million EBITDA think about think

Bohn Crain

number green hopefully shoots. points closely watching we're to Jason. different glean to got Thanks, We've a looking for that of data and obviously try

it of followed our ocean but of manifesting starting because some us, think activity in terms volumes so to been for so knows And I seeing which that's slightly, space a has up, as bookings little who this anemic. itself encouraging see everyone ocean is ever we're picking

that although still the which us. space, seeing likely rate side is the we're attention things for a kind in intermodal intermodal road structure to leave for little whose and on close paying turn trucking help call, some some going over number for the which of side well, I market some the little We're community, of out bit to capacity of Intermodal of of of hopping of looking to the up of have things. it larger which the as So will help of improvements loss I'll reasons, overall think over names -- a there improvement small on and and because entrants is a kind including bit, tightened

So able but and been say modest, of positive, haven't recently. it's we that kind to

points And that. the so of I data guess those around are at least some

number. swing, the earnings kind of $X And $XX million while normalized of always then would have it we're a million that of EBITDA we think I $XX rate power run never for kind ending to pendulum back I believe never out don't would EBITDA -- kind is held the or And million realistic number business, seem. of us. normalized of in was EBITDA a

and would of necessarily know I the XXXX. than Speakers] have to that most in -- year, better we see So has this that companies be seems you four narrative here now -- and that improvement. start conference you XXXX last folks the calendar seem of just in and all meaningful and to given all were that, shifted you Jason, calendar cover [Multiple had the to -- not think People in probably to pointing to hopeful half early the

Yeah.

of million us, kind as a we're kind new kind think a $XX or I that's of to environment normal we which we but ball on to way to and my, get So trending that quarter these kind -- $XX normal. quarters of of be kind kind of of than better of I of of my will mind, normalized to in where as would in run minus indicative kind a I for plus what mental be do we rate, of our own $XX -- as articulate normalized next a more basis back find that kind the crystal a of but in norm, million “norm”. back could is, the million well guess, more we couple kind to revert it's hard --

expect kind normalized back I basis. a to So what that's on work us would kind to of of way our

would balance call in point tee-up we time. be have press sheet remiss I we a this our completely out try not at just of kind unlevered to of to And literally kind then releases, in as

cycle our of and offense, and have defense opportunity are upside And so in really terms for and a play very been opportunity we there's shareholders going opportunities, and we're conservative played optimistic and of we're had and a this to an for us. so expect sheets, where We've we And right that have -- the we time given where through of lot think a to we re-lever this us here. we to from cautious and -- lot would is our right? balance good

Jason Seidl

walked here, you kind Well, line of next Bohn. of into my really questioning

competition. for like acquisitions lot conversions situation million the historically, As then right And a are maybe than for have that, a comfortable you economic these the in enough back where we is having EBITDA that exceed of $X -- the just acquisitions versus didn't leverage for those might that agent for And the potentially such what were -- conversions. better the to the of a for much very in Radiant, larger And as future start players because to to you follow-up are finance of the did lot yourself? your of are who's is, where you position about financial a I that acquisition? small guess some those become look somebody quick at happening lot acquisitions unlevered, current you sort think agent harder of again? it's

Bohn Crain

Okay.

in So there. a lot there's

to maybe but to me here. order. I'll just in take those to on Let -- pick I'm me coming -- try as -- them take off take me necessarily going I'll they're not let

normalized times. I of think If or were plus over the kind we term. of we would minus think ourselves X.X of leverage longer for being modeling

think So that's would number. where of of kind we that

levered with compliance little their at bankers I'm different, facts up a that longer going they with And but of and come to minimum, and out. least circumstances retraced lot -- a bit and have sure have. we either a As are were markets and than about perception to last a everybody's days so covenant go-go at expecting paint conversations in, of broad the here, brush a bit or my they're I'm they're the tapped it's as companies in

their they're to question, markets under And be current acquisitive the marketplace, necessarily right of the going of kind And might naturally tapped folks the your credit debt aren't friendly facilities. now. -- they're who really in some of out part

to companies more So create to up reluctant, type to kind being capacity because today's open able things all replicate equal market to going their would be go pretty they're credit existing their in deal platform not be facility of environment.

given think a than people dynamics. there'll kind those are be of normal some lot kind sidelines I there's -- on the of of of So more

on I be we historically we're now there's -- are, have approach. board about this to people put about this going to people So actionable premium think are here an be to to Well, less less not talk be to points actionable or that calls there's in been to over preserving opportunity continue doesn't going by right? our mean stretch. to assigned our the to So have talked the some flexibility but disciplined we We're so on same we're I've these who financial in-actionable I follow crazy any and years, -- following our environment, lot disciplined again, going the going approach a

Jason Seidl

so a for say And you're I good in position sure.

Bohn Crain

alternative our us. to back Which time, kind to an at have our attractive to even But we as stand Yeah. of of deals, of use still going at they're same the is capital we as for buying use -- remain to continues up stock. which look larger capital,

to our kind to when your And coming back and if question, to we at of have -- remain agent company-owned support ready store then stations they're them ready. first a to and the always convert

or it's frames that really financial a time when of wherewithal been to capital We're kind of on partners access never stuff. of So ready. our to interest or or question any they're their here our support

said, are any And of biologically, us just none with that getting younger.

demographic our so aging of And network the out. agent-based is

conversion And so opportunity other just I continue the rate to but the always opportunity there, of accelerate will kind because has for set that been time. think of and

Jason Seidl

Are you a on multiples? in both starting non-agent, the in you're good the position That makes they the platform there. what seeing sides the are a like sense. for bit? It of of come in terms Real sounds more the of quickly, to equation acquisitions,

Bohn Crain

don't people but the of And skis just ended earn-out rather over answer minds around out, we the because yes. call to -- the of a the meeting some rather deals higher I a ended it up certainly portion passing far sellers Yeah. too is market of dynamics, the passing over been there, of we the on years get earn-out on my number to of and of because cash, earnouts we've short because find kind structure. that's want were wanting deals out case. kind up couldn't just with a than

more all the or of as in in accept and willing also, is acquirer. value earnout terms more competition in it's are been it's part how valleys who's acknowledging sellers, environment? economic embracing and just an of and we're in coaster structure our more to structure kind because of kind digestible Well, businesses and an this the aspect market of to that of It's kind this been the of that marketplace. what environment, side cycle of talking But people a -- roller and makes do in peaks ride an from normal as you just

Jason Seidl

I the always, Well, appreciate I'll time makes to sense. listen, over else. it as It somebody turn

Bohn Crain

you. Thank

Operator

to queue. Thank don't you. [Operator floor remarks. we Looks any like question any further back management like turn the have I’d to Okay. Instructions] for in closing

Bohn Crain

John. Thanks, right. All

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

multipronged approach of customers end we partners we meaningful and to listening believe buybacks, support create our that operating your organic our shareholders, growth, and Thanks for value continue of for stock acquisitions we Radiant the Through Logistics. and serve. will

Operator

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

Radiant Logistics (RLGT) 13 Sep 232023 Q4 Earnings call transcript