RLGT - Earnings call transcript Q4 2024

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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 fourth fiscal quarter and year ended June 30, 2024.

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. 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.

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

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

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

Bohn Crain

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

operations adjusted to operations, 'XX. from build trend adjusted While fiscal up our levels. Notwithstanding ended XX, being our the to hope the well June the entire $XX.X results fiscal to reflect year own good EBITDA positive ended tough our normalized net this as sustainable compared million third continue we as for March continue quarter coming over comparisons, net in to deliver cash more experienced in results XXX%, up for continue did positive XX.X% and EBITDA year-over-year improvement sequential ended the have quarters we to June on find in difficult XX% up markets financial the to and fourth see in by meaningfully XX, million their and results freight way we generated and year $XX.X fiscal income income industry when XX. With markets our quarter adjusted XXXX full as

acquisitions facility. $X buyback in sheet hand credit and strong and support continue of we on drawn our able after cash nothing $XX and finish program, of completing quarter to we're a on addition, stock the In with million tuck-in million still X million our enjoy $XXX over deploying approximately balance to

delivering back our course to freight our as previously Daleray with XXXX As 'XX. We navigate we from a sheet believe, built-in Worldwide benefit this this through we proposition the to fiscal ready the these of we re-levering slower to station way to combination are for good agent balance time, time, regard, tuck-in will to a buybacks. market initiatives made we deliver that we acquisition of the partners, In growth conditions. and approach supporting agent we positioned At more focused these X through markets same a believe customers profitable on conversions, discussed, our acquisitions, and we over Through thoughtfully organic meaningful and continue and when normalized stock inherent operating find exit well conversions Viking value through combination we network the 'XX, end shareholders, are pipeline in an progress believe agent-based serve. of company-owned of the partnering 'XX, value February would continuing strategic broader Minnesota-based other partners logistics of in and goal with strategy. entrepreneurs over 'XX to acquisition transition We of who and and to with Florida-based of agency launched unique Radiant opportunities they from the X in their April look forward our of businesses station transactions we in operating begin a are our representative strategic support location. Select of our October in in remain

to network And Texas. able in the based competing recently, addition, both welcome us of network. acquisition network to Cascade great to In new the and Seattle-based this of a Radiant Portland-based June of Logistics, were which with from completed the another most DVA of Houston, our we X in teams acquisition Transportation joined Associates Foundation year we addition

targeted with respect industry look opportunities we'll segments. With bring our walk power Q&A. and it that find acquisition critical turn CFO, through our to and current we geography, open some for financial to our mass We to detailed I'll greenfield for us Todd will results, that, where then it platform over continue purchasing to Macomber, opportunities to up

Todd Macomber

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

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

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

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

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

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

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

Operator

Alper Elliot question TD first The with Cowen. from Instructions] comes [Operator

Elliot Alper

Jason is Seidl. June on Can first sequentially the I starting in expectations. almost talk drivers our the quarter, EBITDA $X on outperformance This the about million, of for just you maybe guess, Elliot above quarter? Maybe the

Bohn Crain

Want to ] give [ a shot or?

Todd Macomber

really quarter far Sure. -- we're I particular quite we and and as the coming was Yes, to yes. mean, thing just obviously sequential to The seeing the weak, in I volume hard up. numbers, course, particular, growth of QX as seeing in the is any know it's just but we're pricing growth can't but speak it's honestly.

Elliot Alper

noise seeing maybe guess we look at. questions X, data couple terms I here. kind of talk lot maybe a there's you with of then of of you're in can port through what a And But of year, customers kind on saw season ahead pull shift in freight forward of earlier X, October potential this if port peak you any seeing then strike any the X? summer? you And are the maybe

Bohn Crain

that. I'll a take Yes, at shot

more think in I factors caused we short events, pull pull peak. in some of is, of forward answer see and acceleration terms have level combination potential a think global forward, yes, did of lot an a risk So traditional there's tariffs I a the that kind changeover elections of some of and and of

the yes. think that to I answer is So

net additional up And a as which to more in past for are a ultimately which the tightening, we us the think as so the guess relief in of of be we positive I the in positive little well we're little view Ocean Coast, capacity pressure we're a is a or seen to on see Coast, other precise several rates as West -- thing. months, we've off starting in and kind transports tightening West marketplace.

Elliot Alper

think probability hear rail strike negotiations. strike? then of just pretty apart There's or And thoughts. Bohn, your this report are suggesting thoughts. there's real a excuse both hear me, a to I'd love to far mean, on a do your out curious sides week I you port

Bohn Crain

our I kind customers answer. wouldn't to extent when we on doesn't, be happens. to diversions customers occurs. that want other we'll with to and to our a extent solve Hopefully the it the of to that. as ways that be but I would just to [ we'll speculate problems here support the best for can support it non-answer happens, ] there All that

Operator

comes question with Gainey Davis. Thompson, Kevin next from The

Kevin Gainey

Maybe with timeframe, -- how talk a think little you at entering least as shape of guys you've looking how might that about July, thinking of you maybe August about off about you're could forward talk can bit Maybe kind up 'XX? how over start fiscal and then market we the year for at the 'XX. seen

Bohn Crain

we to point of kind quarter. I'm last Well, think I going our to -- back

some plus in of least sequential March of would the backing based And are We think it and the we'll As see I to that for my of we And we plays here this is the kind upon or kind mind we through. how I us. at are saw continue minus, was the work and least up out, I we this rate what this numbers but quarter in indicative hopeful at think, today, expect bottom kind quarter. idea improvement right? run of of know that the quarter kind think

say us some means -- going but we can that's of what do catalyst we're think said, with seeing, this going and increase. back of drive wouldn't But worst kind another big what not expect forward are is quarter these kind normal, that that yet but you that is step whatever behind to upon we're of more Now the based seeing indicative I function I days. us hopefully. And to of

we're grinding our would we're we question doing in not with have thoughtful that be balance think disarray structure and so to of are. a most A us them sheets acquisitions story. cost position keep in this we we're our folks be it's are relevant is and I active and fit. aligned them terms out the grinding, market, make making that in looking pivot And to for along trying see. I acquisitions, that be best but in and lot right? to of and been think sense that with but in opportunities continuing and your of the of slightly, valuation business I for just acquisitive tuck-in open just everybody the we're to marketplace, And our there really individual we've to business are because right darn sure for in structure

here continue active to pretty XXXX. were year be and expect we we to the last this active so in And

Kevin Gainey

on up brought kind of M&A you the maybe X piece, Since questions that.

in? more how targeted as both become seller a expectations, were know have in the transportation they release were at. from And vertical I you feel like kind curious segments market what interested there guys end Do those industry segment As changed? that you an like they've or reasonable? I'm And looking of that then be that far mentioned might you're you maybe

Bohn Crain

sure. Yes,

try of at think I -- part hit expectations a terms I don't kind sellers' of couple less necessarily us. things of what of stick So the call there's to play. One, I'll the that question guess, I expectations. changed first know kind so in have hockey we of the, behind sellers' that just have much.

of XX represented it's numbers rather trailing off month than kind market seeing So of of the -- we're in COVID now height kind to type and before that easier for of everybody. transact that the what the

kind numbers marketplace. So the back in of can down the more around to comfortable everybody have we're about of seeing the that and numbers settled feel kind transacting where coming participants

opportunity are. just there's the we or the not a position who are right folks I many leaning in lean kind think way that to of in now not into as

Now out quite a few are the the that There not don't quite but are me quite certainly wrong, healthy few in get we're active. same in there's competitors, competent a that person situation. only there breath not

difference opportunity just if their acquisition operating were to our us And a the just that been no our fundamentally now. And then little partners mature the And right? own so making of for continues pipeline brand So the for older of exit time within own ready I for coming network, promise what's literally just notion kind to and when set longstanding inherent they so that's our right of back think it's kind support and everybody's and man, saying? figuratively. to waits a Father strategy. getting

so rate we that of to And -- we're of to would expect continue going as kind we the forward. move

Kevin Gainey

contract kind what USAID it, test shapes to talk Maybe chance Francine, a about then about and talk of that the then might the could first contract you good. Hurricane in and itself general and the just you Sounds to the give contract. for if of probably it be? just you And up how guys

Bohn Crain

support of as Yes, we number And other to an which opportunity. people in yes. and of opportunities position called we'll But much given not there is, that too get have we're we're detail kind of disasters opportunity would be -- a -- into our that's first into kind reasons. to natural for to and of support a on one expectations response, a the be that

Operator

comes [Operator Partners. Instructions] Kauffman The next with from Research question Vertical Jeff

Jeffrey Kauffman

terrific numbers. Congratulations, the with

couple a I XX last of how Just the in in the we aggregate If at X look roughly made much EBITDA quick questions. are months, you've acquisitions bringing in incrementally?

Bohn Crain

Good question.

Todd Macomber

a good I we... is That question. know

Bohn Crain

We know have not that. what? ] [ You disclosed

our going And appreciate was I and we fact the because and disclose so to way. And so a of we had every of on did do here tell been transaction that and file for don't to and had anymore. will there an that us to we pro And that. and punt have have doing. were when to our to lift respond you this time long following we right, call pants, was of it glad benefit what you've to I'm we be today this so we see I'm kind the X-K material competition Jeff, I and and it, formas

And to business our so keep and lips share as occur. to our quite zipped just as results and best we're they can we tend the happy

Jeffrey Kauffman

right, a down revenues? Fair those as about that Revenues operating much so get fairly Why group, just All I direction. are close. than could XX%. I maybe down down more collective XX%, a commissions partner maybe X thought different answer. commissions were about enough. Normally go

Bohn Crain

of at nonrecurring are of -- the you we dynamic play, of stores. part business stations of is that. that some takes top-line of some project the ago kind owned year to of let on X try And period kind seeing had in there's significant It's Well, those numbers conversion company kind So down. the agency right? me things commission kind the the

be natural to as agency -- would expect that that buying we see stations, thing we're happening. of in a we'll So would kind

Jeffrey Kauffman

the if So commission... agency

Bohn Crain

stations, gross onboard quick pick a just we the up we changes folks item. results. that consolidated of commission and nothing as local do kind to we EBITDA as we So and down And their would right? reminder, the costs incremental an away, line buy buy is station agent But difference agency SG&A their in, margin personnel and level goes our

Jeffrey Kauffman

we're we next step, a So a which market. view of million we I That's X bottomed, think be think you Well, that's be What guess to do most us dollars the up now? the -- of you isn't right catalyst Like seems couple folks economy right. All us would that. that well, fair. Bohn, but in said you is happening more. the happening lacking take to back? should hope in the holding what to global

Bohn Crain

freight, we of our that hard So kind hard we create us right? of move goes service a us, our around. for need -- to more need fate it's lot conducting freight as goes, great Well, fate our is more business, the customers for while economy the customers' doesn't

making their businesses, are feel where an investments, hopefully investment confident need people freight. investments in and hard making are client we So improving in

of largely of the I inventories. and excess kind old stocks kind conversation behind safety of think we're

largely I think So played story that out. is

even on I So proverbial now, getting it's cylinders, so it of more all but really economic kind firing say the that's... cylinders more, engine than but is won't

Jeffrey Kauffman

The changes? should would in moving acquisitions until be way forward plus we near-term world or think the minus business the

Bohn Crain

change I may knows? in think who right. that's it November, But

Todd Macomber

to say month-over-month, a been where Jeff, does there's dramatically volumes, increasing revenue think but And like get to it's slowly we the that's strengthening. I it, land. has for I I'm take saying, slight before now, seeing in nothing -- on Bohn top upticks seeing it's but -- We're we will fairly are that's it's mean, we wouldn't while, like uptick going of But too. not back says, ultimately it increased that, profile it seeing been Bohn

Jeffrey Kauffman

that's have. Congratulations. I Well, all

Operator

Okay.

to further have We to like any turn floor no questions back remarks. I'd closing in for Bohn the Crain queue.

Bohn Crain

Thanks again, John.

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

Operator

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

Radiant Logistics (RLGT) 12 Sep 242024 Q4 Earnings call transcript