RLGT - Earnings call transcript Q3 2024

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Operator

Good day. This afternoon, Bohn Crain, Radiant Logistics' Founder and CEO and Radiant Chief Financial Officer; Todd Macomber, will provide a general business update and discuss financial results for the company's third fiscal quarter and 9-month ended March 31, 2024. [Operator Instructions] This conference is scheduled for 30 minutes. This conference may include forward-looking statements within the meaning of the Securities Act, 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. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the company that may cause the company's actual results or achievements to be materially different from the results or achievements expressed or implied by such forward-looking statements.

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

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

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

Bohn Crain

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

million $XX operations results ] deliver quarter, levels. Notwithstanding adjusted to report we and months capacity our continues March not XXXX. generated Our XXXX, entire the prior improvements moving comparisons, to results for year-over-year million excess and operations. ended also the year This the continue quarter markets and X we have own by impact throughout our tough to ended negatively EBITDA saw current their [ we freight the to more said, in the normalized being January the $XX.X but the sustainable a forward with our extended for as way results experienced XX, difficult year-over-year to quarterly improvement and period sequential great net steadily expect and only comparison difficult meaningfully markets for to positive reflect as in find cash very weak well as period. With March industry continue combined record XX, then for results demand, that of

on and $XXX $XX.X finishing to balance nothing million drawn continue facility. strong of million we credit sheet, addition, our the quarter In a on with approximately hand, cash enjoy

they it turn walk when of forward network, we company-owned transition cruise to of proposition who value line time, believe, Minnesota-based sheet our and through Asian station find positioned acquisition through station strategic customers to our way same an and in and we X entrepreneurs it unique available these strategy some to details our Radiant Todd in partners from continue on to our end serve. In we conversions we our deliver combination and representative this from begin we discussed, up that focused of the shareholders, in approach, meaningful very April for Macomber, financial agent we XXXX partners are conditions. supporting a and we'll As operating over said, the Daleray remain agency excited acquisitions with about and the benefit partnering agent-based the we delevering entrepreneurs XXXX. We to goal to conversions synergistic regard, slower our that would ] built-in with in this delivering of XXXX, of which these previously look now we freight ready At October back CFO, in acquisition a support value thoughtfully Through [ are are more are pipeline transactions Florida. organic tuck-in our other will markets balance initiatives profitable the as time, we recent broader participating logistics over inherent of the market network. with through growth South XXXX opportunities and in Select to operating and recent the then most in to of and launched Worldwide the solidify of Along of I'll our acquisition results, Viking to a navigate to with normalized buybacks. our access industry Q&A. February open combine our well our believe to the We of through will offering combination stock believe their location. With of businesses for

Todd Macomber

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

XXXX, For basic $XX.X fully the or XX, X-month of March to $X.XX Radiant a of million share. Logistics and we ended revenues diluted reported net per attributable $XXX,XXX on loss

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

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

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

Moving to X along months. the

[ we of Logistics million on reported $X.XX attributable $XXX.X income or XXXX, infill basic ] XX, revenues March to ended share. months [ X net the $X.XX of million per ] For Radiant

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

months we adjusted for March ] XX.X%. reported ended the for decrease $XX,XXX,XXX The March X the income, of of represents a approximately ended -- $XX.XXX [ compared income $XX.XXX or net net X million XXXX. XX, million approximately months XXXX, ] [ XX, [ this adjusted to ] For

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

Operator

from Street Argento from question [Operator Capital. Mark comes Lake Instructions] And our first

Mark Argento

Bohn, Todd.

perform be out there, of tough right little the kind starting any but know continues environment to any better seen little out across there, a you've shoots that are it of platform? green the to color Just on kind a sectors maybe I any now.

Bohn Crain

I Mark, January trend. this really, than that -- seen of off was to slow. April sequential was and indications, started prepared than build guess we January February is the kind reiterating really of kind better would I March kind better February have by start And remarks, is continuing early Bohn. of was on and which

So ended of I our we're quarter seasonally slowness effectively here well. quarter the terms as March bottom think in the is slowest calling

the that you participated is more way but So seems international that in, we would has might that their worked normalized been I of to similar think others to the calls have to prospective to expect kind back levels. What improving. our quarters soft, be world

I about. truck really, that terms on yellows been bright of struggles City guess, their of space. But kind of bimodal Chicago a seeing in optimistic a intermodal the of with greenfield that opened that, of what really a remember, of we there, typically quarter excited the most the doing they're services the Kansas in are areas had for the And of has the within even our brokerage bankruptcy the who progress performance we're those might we're our we're of or wake own too, initiative. little probably very trajectory with international challenged shine but So basis in in Canada, pretty light, is capability solution we're international March, meaningful ended in bit one the set, making

to shape conversion to for them a of us acquisitions to that what over So terms continuing and in happy and our our and of some we and all number time, debt. And to manifesting of anybody we're stores, support that's while wants of a got we're numbers we've emphasize think try in the emerging to this that had think working. this as kind really and relative kind kind so of done able in of kind them of -- in things earlier anything, ready us would not we're inherent we lean we're execute our market, If we've we see good be pipeline stations agent is and of to our really strategy. And where excited I environment on talked itself really them calls, opportunity a expect do tail to to opportunities gray kind of company-owned I to of flexibility good the to and they're to I notwithstanding take telegraphed be. transition. no in proud identify the environment big at financial support are basis, to we think of operating into intersection come market whole and tuck-in the kind about because shape in meet to the advantage partners would On tough -- when that continue of that we've

behind the of would an of global playing is of So have in be kind optimistic lot have bit We're unfortunately more environment handcuffed. ultimate of us, done hoped here or this to opportunity now. a and we some hopefully everything get of kind expected. an rebuilding we'll worst and people is strategically right kind kind of that freight things just where a are pretty But recession I'm out the a way the in

Mark Argento

you just aggressive That's are is little sheet is it and getting great whatever at on any thoughts what kind is, deploying the and helpful. comes in And same of at so. happily balance more capital? time, in But the this to obviously, then incrementally of terms Or I know, shape you it a point here?

Bohn Crain

of Well, view ourselves as kind good I or capital. always disciplined been always of think -- being of allocators Yes. or we've to like

and kind we're us. that this work I of environment, So valuation be not kind and structure our chasing deals we to of about going view deals, chase think never but for kind of in

to coming I us market think bit, little the you a will. is if

done in more we So way buyback. be a want will, so the of to the to step of kind sense that of again to if there is type kind terms out to going our as we we'll be traded. have moving that of would buyback speak. stock quarter, thinly market in to in stock And active things it, forward. We and and knowing quarter, our get and window particularly And of expect kind to all that of in didn't value it opens trading to our soft beginning you be think reengage us we But a expect up in into weren't to opportunity stuff, was this active an makes I structure.

we'll approach the we been capital. our plan kind It's deploying to it, kind if So balanced something describing. type at and is as but a of baseline acquisitions. And along, that of larger these at the how meet kind of our continuing certainly along look of we've will of tuck-in stock look we're buybacks course fundamental about we comes it criteria have think smaller

Operator

Thompson from Gainey Kevin Our next from question Davis. comes

Kevin Gainey

the from just of Or How end what are Maybe bit markets. hearing side? of you are from maybe the hearing question roll and about next back into the retail the those into end little are a the side kind guys -- delve the you what kind quarter deeper you of maybe you as customers year. or manufacturing

Bohn Crain

I'll certainly not losing guess in add I we're -- can as been and when The of go has these customers. then case appropriate. as we're in first types the Todd historically environments,

been Our safety just chewing customers stocks talk of was inventories. of environment. and kind shipping less There inventories historically excess in through COVID, a those this have and about lot

volumes about kind margin increased playing and and international out the think shipments. is that component, as international our we're effectively we the that think on I at opportunities starting see so to And some of

certainly near-shoring to the current continues on in that the of of everyone the of conflict to price and of same about some at Mexico markets slowest support trade ocean time, our is no a for that customers underlying a the sourcing in kind quite what's diversifying coming and historically and going on, customers on against how interesting catalyst strategy. But China, back, but have that enjoying for diversification have as back talking temporary sourced and one able recover their some of of be we -- they're current want is strongly. as play we Some freight terms that's a our mean those and and very and to I prior strategies, time we're of coming fair of been prospective at prospective how least abandoning they're air our to on calls, as trend acted shows going from opportunity area they're spend out line remains those China executing growth to cruise and amount global support

some So those are definitely positives.

underlying the in kind distributions continue opportunities -- world big customer going environment. box to of to We retail lot see given of I'll the big retailers, to some on a what's what our call store continues disaster do rollouts, of relief

some within are kind our that observed [indiscernible] we So views. of areas those

Kevin Gainey

good. really a heard to is pushing industry. at also prices? can sounds in all as wondering a more we've transportation you people well. offerings lot what on pushback from entire That comes encountering there's Yes. that at you are Maybe least the back if And service standpoint, I'm that your been least pricing are When it guys

Bohn Crain

effectively kind their best pricing to is pricing But extract -- irrational, they for a on listeners, setting I to idle, the think rather the of the idle. an we've think their shifted service to thing bit they XPL further of what of left guys. And describing pendulum capacity a excess the non-asset you're in non-asset to fleets have I the little than a based Well, and they're has I is asset-based build the best asset-based they've effectively some principally they've been sitting when the kind and as the of because pushback offer nothing they been base, can keep kind got carrier environment the concept benefit of to doing give that cost begin where rolling coming just that at guys of unsustainable power customer, out is from is would base.

environment asset-based but that taking... [Audio are everybody, a because And tough is so guys non-asset environment based effectively including very for Gap] the carriers the

Todd Macomber

we'll pick get are our of some up. to scenario volume, that at whole Bohn's in back that equilibrium obviously, that net be starting it's obviously and us. point more specifically time, the Looking -- describing the at will And margins to volumes behind

in. back for more of what environment change healthy discussing, the I'm we're next thinking a And it's So we'll that to hopefully will -- here quarter you're think, dynamics will quarter I this everyone. normal be

Operator

our Jason Cowen. Seidl comes next from question And from TD

Jason Seidl

EBITDA just as get we here. we of idea a so us about better sort of get what can to an run XQ, per wanted sort is slow walk the I started. through into So you XQ given rate how quarter head Can of the feel month

Bohn Crain

No. terms to our in get going of -- We're granular of numbers. not the that

that disclosures. terms of think problematic in be just would I

on have want to turn well back So in I to -- this side around don't issue as call. the

Jason Seidl

All right.

So ask me you let this.

an So you basis on profitable were guys EBITDA in January?

Bohn Crain

Yes.

Jason Seidl

your I'm between sort we your just business you -- basis. Okay. think about ocean current the well? Also, more versus That's your international enough. should curious fair air how and of the mix guys where and quarter domestic stuff mix as ended on a

Bohn Crain

broad business Todd let painting freight hop brush. with domestic a I'll a Historically, our core as in because time-definite I'm forward.

So with But could we billion I international. a million air piece maybe I'm between when North $X And normally ocean. $XXX million kind be and really including painting pie might broad If that $XXX say or company, a of apart we're brush. of a America. on then domestic. again, domestic, bigger And peel the revenue is

Mexico coming is and kind domestic. Mexico our Canadian and kind our America. Tara air to cross-border cross-border and go. including true Yes, the ocean, international of being And and international of business I'm So North Canadian business

know of... you I kind of if So peel that part want to don't a

Todd Macomber

what I you're agree with saying.

So...

Bohn Crain

build on little it Jason, just you. more I'll for a bit

the of So fair on were ocean during kind than more we -- during -- looking a about of certainly, amount the as space. all up thought peaks ended free. were constraints we historically, we everyone given And doing COVID, ocean of for much COVID then we international, airfreight the and

So be kind terms freight expect COVID. But that of the of and more during little of kind airfreight you would towards the spike heavily height us in a contribution. anomalous margin in to ocean ocean was leaning of bit

Jason Seidl

Okay.

ocean on than be in the about So are to guys impacted you typical space, less going think the as might capacity be? your forwarder additional freight coming I

Bohn Crain

freight because think part. international is Certainly, again, majority because well domestic the the yes is they -- on And to most I business the of say people, that answer they freight think actually when forwarding. border, our

Jason Seidl

make sure to just real... thinking I the about Okay. want we're

Todd Macomber

I go gross year the if was XX% you it, mean, back prior to of historically, our domestic. margins,

majority be and absolutely it of the -- that's margins. So to our net have vast we'll the be -- that will -- the continue will majority

Jason Seidl

the talked Perfect. that understand expect term, is. cash, least near sort usage stay sort out of for And you Bohn, depending be market of spread and outside to transaction guys for mode? of do But at should little to be where about in in multiple bit you just a to going upon that agent buyback type? tuck-in where your trading, I now, given stock difficult it's any Because other the we might just the is right it

Bohn Crain

right? carefully to deal buyback, -- every look and continue to I to great scrutiny that never, and say multiples a certainly, that words at relative never of trade-offs really relative always the because want the we around we my the we'll around stock with in But look pay choose transaction.

the what baseline the look along that's I we it. into came felt kind certainly, -- So compelling, really at if corner is happen. to would But transaction myself a definitely we want don't generally paint expect what we you to would where case described and that was a of

And to than that so I on call don't another us want conclusion leave the at that. would anything say

Operator

Vertical comes from Our Research. next Kauffman question from Jeff

Jeffrey Kauffman

lot been a of my So answered. have questions

look remind what this think go seasonality does going X Do be just it think last should seen quarter different feel storm, that's to we're X the of negative years you then direction. to us XQ and like? because being different don't this to seasonality years, XQ inventory ended seasonality. we're could seasonality. let normal XQ in we've fourth up normal year? and going a more worst destocking to we've The XQ see quarter, quarter more that to So a third you the dealing little from a past Like me displaying what be you I in if in almost do with like positive been And

Todd Macomber

Yes. early do right? we it's much seeing more our But through think month I I personally, mean, tell, it's been to mentioned versus tracking cetera, each mean, is as stronger normal. I March, our weakest mean, I quarter. and -- to increases et I and mean QX be has typically, than earlier, quarter -- too each going I April we're

fully be our we QX QX. to expecting stronger is existing than going So certainly are much

think -- in -- of over it's to it's think we're So opinion, we normal to going yes, mean we're I not saw what to my be I so back increase going think I I is, -- past, in the -- QX a that historical more QX.

Jeffrey Kauffman

right. know I was would a statement cash months in looking an for of of be there's All acquisitions not flow release. cash flow X share year-to-date what on the And if But by at first and the repurchase? cash year the I statement, use unaudited

Bohn Crain

that to I obviously, now, the So also filed always but in you that we here Todd offline. collect that give is queue is can should -- looking by be number. mean

Todd Macomber

Yes.

repurchases, So ended through the share for $X.X we for X little a months XXXX. the Jeff, March X purchased million. months That's XX, was what

Jeffrey Kauffman

shares Okay. All really the quarter? this --

Todd Macomber

to asked payments as also $X businesses acquisitions for months under then And about acquire was you . Yes. and just million. X the

Jeffrey Kauffman

right. All

environment? a cash But know for you're level just there you liquidity I below? is sitting want given -- don't certain on and [ you're ] keg opportunities. a powder of certain a there go the to So that is opportunistic being here

Bohn Crain

minus funded differently, kind X.Xx at I I'll to cushion Not come while is probably within plus answer debt leaving or would in which that of terms capacity. EBITDA of -- necessarily. would we our I slightly target leverage mean,

to be comfortable would up we So X.Xx.

would positive of of -- cash under generated to company, sitting the we history in are of answer. kind credit position a almost benefit that's our borrower net we only a of always cash an had outstanding we we've COVID So kind the the been amounts the and net through with But facility.

of are looking we're level carrying that the debt that at stuff. not At covenants net the -- our prepared what kind more not or position it's we're seeking comfortably day, a financial not we cash. targeting to kind as relative and of all some targeted end to So we're of intentionally of

Jeffrey Kauffman

one can. question, if Todd, And I last

XX shares. shares million down and million, only XX So so talking year. fiscal million, X.X million shares, currently, And right repurchased they're the outstanding around I'm started year X but around about they're you've

the I the we're if is just trying X answer, help you to know XX can X.X up that million. goes looking to you here. stock shares to other think million to I'm where million but it share return understand I million in And where as or million a opposed and me at XX X differences? to model situation what XX XX profit

Todd Macomber

we've were the at So [ start yes, shares treasury well, I'm of -- -- we XX XXXX. -- June so beginning sorry, let's see the million year the XX, ]

-- shares. have yes, we so XXX,XXX we purchased And

our shares X.X ] [ So million treasury now. are

Jeffrey Kauffman

XX diluted fully XX.X they're million, the the But year Right. shares fiscal million-ish. finished are at currently and

X share a shares difference million just wondering... on that's outstanding shares repurchased. in I'm So million X.X reported

Todd Macomber

was that do loss Yes, to I in net the a think with the fact dilution has there that quarter.

Bohn Crain

Well, money to I security more there's of do basis. be think wouldn't that share out the has it counted that outstanding in

Let to you're at... me point get getting the

Jeffrey Kauffman

Right. Yes.

question is to a profit, stock price? my it terms of to XX.X something is So modeling, you drive to that million back will it more Or shares? if swing with do I guess in

Todd Macomber

Obviously, calculation. overall fully numbers going And obviously of the those the Well, impact shares yes, it calculations. will change, to it diluted drive recast it's we'll back. as

So is the answer yes.

Jeffrey Kauffman

Okay. Congratulations. soon. gets Hopefully, this environment better

Todd Macomber

We your Jeff. support. you, appreciate Thank

Operator

from last Mike do we And from Newland Capital. one question have Vermut

Michael Vermut

bad A couple of I now. of pretty -- leverage -- on They've quick have basis. think a lot direct do of private business? Obviously, I are are the went come some And into your on. to equity win about organic -- you of concern lot stronger I been any on forgetting you. right of reports going for just you what lot are the hurting from coming a competitors customers believe ones this, but guess you? we we of competitors a out seen that. Have your to getting any this seen acquisitions, I'm new winning pure their Are than we've

Bohn Crain

our advantage out take going negatively don't the about of to there want competitors. to softball Well, talk so you're I

So to stay... going I

Michael Vermut

talking balance... about the more I'm positively

Bohn Crain

having -- other did, are And types -- of some own of opportunities. those wouldn't we're constraints say -- or some I strategies of to to in of go lot in own your create know good kind think No, aren't top don't there other Yes. so class happen of curious going in have anyway. take to the of opportunity we types of I going some of of of But this we a that financial folks we're as their relative we're well not my position around flexibility kind mind be we're to can recapitalize But out everybody's way. market. got don't I fun advantage to and all their observations set or to what's certainly and we're issues I cause know. And can't if some because situation. their do what to of those sets balance of I I position going whether come the -- don't a those see a to our I what kind sheets -- it's kind know candidly, in address

So I don't...

Michael Vermut

that market, be more? around. an come deals seeing may but distressed but necessarily That are companies the more seeing you ones Are there are shopping themselves interesting, would want, not more not to you we

Bohn Crain

and and a just fight there trying the quite really hear -- are there's few without have And certainly live continue certainly we candidly, side, out There's place another Absolutely. go that's a that heard folks kind we've to -- of right? to particularly here truck folks and been to tough any day. for payroll payroll, to on a brokerage specifics,

particular, it rational pricing the destruction more side on of take So to the over to underway, they're think -- seen and not that's done got I the trucking we're constructive some in place things, we've return marketplace. with

Michael Vermut

Excellent. I you. remember for we EBITDA. of And million, one know say we we I did I'd last past couple what $XX earnings, don't had then $XX million of peak one -- over years, the

$XX that And million always downs mark normalized time, for be Maybe down the has creeps should that normalized book up run about some say, anything a maybe we're between, some and somewhere type agent the remember that think in here. the doing forget you bringing hopefully, range. but correctly, we're Is are downturn, in let's we Now that somewhere is acquisition, that said. you company? in changed $XX that million, in that EBITDA good times, ups during And normal of over I everything if your rate still in had said maybe I mind area. the and

Bohn Crain

I No. changed the this long-dated the think mean this I is that's of only nature thing is slowdown. just

$X get to didn't questions at positioned. our we lot fortunate has people better for higher of expecting. a So your of us do a back or cash I'm that put just at would things. our when those a and a time it whatever M&A normal multiples were -- the the from that of what time, the really responsive the we offer be to strategies, time. all and of for take situation in glad some to of focus. we those directly as opportunity extended, was we're it a that bunch they has taking we and share better didn't go time got probably are Because areas of set, all respects, changed. But do to collectively $X in not were, we on or cautious we being is to is business, -- about do get None to question, businesses what but pay go were lot us were go think in stock of a or we -- the tender But terms as it how

continue in furniture, continuing -- on supporting organic agent good our the promise to We're making invest focus on of and kind are we're and brand those conversions. our people at Some all not that, burning supporting and grow and right? our and salespeople to business and doing growth stations the and

are this we business the notwithstanding is that largely tough as fact So really normal, a mark.

Operator

That is any like it remarks. our to to management I'd for last back turn now closing question.

Bohn Crain

Thank you.

best-in-class sheet network our the opportunities created remain and of multipronged we saying close Radiant intend buybacks. through relever we we to continue continue partners platform will footprint acquisitions by and me approach for to create thoughtfully value we've global robust Through buybacks, customers the and at believe a prospects your leverage acquisitions same extensive and we meaningful stock build to our the organic our to Radiant. At listening conversions, technology combination optimistic partners service Let balance support great of synergistic about we end and Logistics. to and operating station and our that agent to tuck-in growth, for serve. Thanks of on shareholders, time, of that North American continue here our

Operator

does you conclude your conference. participation. We today's thank for This

at may this You a lines your and have time, day. wonderful disconnect

Radiant Logistics (RLGT) 9 May 242024 Q3 Earnings call transcript