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Radiant Logistics Announces Results For The Fiscal Second Quarter Ended December 31, 2009

BELLEVUE, Wash., Feb. 17 /PRNewswire-FirstCall/ -- Radiant Logistics, Inc. (OTC Bulletin Board: RLGT), a domestic and international freight forwarding and logistics services company, today reported financial results for the three and six months ended December 31, 2009.

For the three months ended December 31, 2009, Radiant reported net income of $549,000 on $39.1 million of revenues, or $0.02 per basic and fully diluted share, including a gain on litigation settlement of $355,000.  For the three months ended December 31, 2008, Radiant reported a net loss of $10,216,000 on $42.5 million of revenues, or a loss of $0.29 per basic and fully diluted share, including a non-cash charge of $11.4 million for impairment of goodwill.  

For the six months ended December 31, 2009, Radiant reported net income of $665,000 on $73.1 million of revenues, or $0.02 per basic and fully diluted share, including a gain on litigation settlement of $355,000.  For the six months ended December 31, 2008, Radiant reported a net loss of $9,966,000 on $74.9 million of revenues, or $0.29 per basic and fully diluted share, including a non-cash charge of $11.4 million for impairment of goodwill.  

In December 2009, the Company recorded a gain of $355,000 in connection with the favorable settlement of a dispute with the former owner of Adcom Worldwide related to the calculation and payment of working capital and certain related post closing items.

In December 2008, the Company recorded a non-cash charge of $11.4 million for impairment of goodwill. The goodwill charge was a result of the material decline in the market value of the Company's equity during the fourth quarter of 2008.  The  non-cash charge has not had any  impact on its financial condition or affected the financial covenants of the Company's  credit facility.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding the non-recurring items, of $1,026,000 for the three months ended December 31, 2009, compared to adjusted EBITDA of $1,382,000 for the comparable prior year period.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding the non-recurring items, of $1,750,000 for the six months ended December 31, 2009 compared to adjusted EBITDA of $2,176,000  for the comparable prior year period. A reconciliation of our adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.

The Company has also provided additional prior period analysis using pro forma results of operations presented as if Radiant had acquired Adcom as of July 1, 2008 which is included in the Company's Form 10-Q for the quarter ended December 31, 2009 and filed February 16, 2010.

"Given the realities of today's economic environment, we remain very pleased with our overall operating results," said Bohn Crain, Chairman and CEO. "For the quarter ended December 31, 2009, our revenues decreased 8.0% to $39.1 million as compared to $42.5 million for the comparable prior year period.  Net transportation revenues also decreased 14.7% to $11.5 million as compared to $13.5 million for the comparable prior year period.  This contraction was a direct result of the slowing economy.  While we were successful in off-setting much of this compression with corresponding reductions in agent commissions and significant savings in personnel costs as a result of the migration of Adcom's back-office operations to Bellevue, we did see increases in legal and other general and administrative costs that should revert to more normal levels in future periods.

Mr. Crain continued, "Also included in this quarter's results is the very favorable ruling in connection with an arbitration proceeding with the former owner of Adcom Worldwide who was seeking payments in excess of $1.0 million related to working capital balances which we acquired as part of that transaction. It was ultimately resolved that the former owner actually owed us approximately $357,000 as a result of working capital shortfall as of the closing date.  After giving effect for other ancillary issues addressed in the arbitration proceeding and related legal fees, we reported a gain of approximately $355,000 as a result of the settlement. Excluding the positive impact of this gain, our adjusted EBITDA for the quarter ended December 31, 2009 decreased 25.7% to $1,026,000 from $1,382,000."  

Crain concluded, "As we look forward to the balance of our fiscal year ending June 30, 2010, we remain cautiously optimistic that our non-asset based business model will continue to perform relatively well through this difficult market environment. For the fiscal year ending June 30, 2010, we are updating our prior guidance and expect to generate approximately $3.5 million in adjusted EBITDA on $140 million in annual revenues.  This is before considering the impact of any future acquisitions or improvement in the general economic climate.  Looking forward, our strategy remains unchanged. From our current platform, we believe profitable growth can be best achieved by continuing to bring value to the agent-based forwarder community and continuing to execute our three-prong strategy of first, providing continuous improvement to our existing network participants in terms of technology, buy rates and enhanced service offerings; second,  building upon the success of our organic growth initiative by on-boarding additional agent stations; and third,  opportunistically pursuing acquisition opportunities, including strategic opportunities within the community of agent-based forwarders."

Supplemental Pro Forma Information

We believe that supplemental disclosure of our adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for stock-based compensation, goodwill impairment and other non-cash costs is a useful measure for investors because it eliminates the effect of certain non-cash costs and provides an important metric for our business.  Adjusted EBITDA is a non-GAAP measure of income.  A reconciliation of adjusted EBITDA amounts to Net income, the most directly comparable GAAP measure, for the three and six months ended December 31, 2009 and 2008 is shown below:

    
    
    (Amounts in
     000's)                THREE MONTHS ENDED          SIX MONTHS ENDED
                              DECEMBER 31,               DECEMBER 31,
                              ------------               ------------
                             2009      2008             2009      2008
                             ----      ----             ----     -----
    
    Net income (loss)        $549    $(10,216)          $665   $(9,966)
    
    
    Interest expense – net     27          67             82        92
    Income tax expense
     (benefit)                337        (383)           408      (230)
    Depreciation and
     amortization             386         473            796       788
                              ---         ---            ---       ---
    
    EBITDA                  1,299     (10,059)         1,951    (9,316)
    Share-based compensation
     and other non-cash 
     charges                   82          38            154        89
    Gain on litigation
     settlement              (355)          -           (355)        -
    Goodwill impairment         -      11,403              -    11,403
                              ---      ------             ---   ------
    
      Adjusted EBITDA      $1,026      $1,382         $1,750    $2,176
                           ======      ======         ======    ======
    
    This supplemental pro forma financial information is presented for 
    informational purposes only and is not a substitute for the historical 
    financial information presented in accordance with accounting principles
    generally accepted in the United States. A reconciliation of adjusted
    EBITDA amounts to Net income, the most directly comparable GAAP measure,
    for the fiscal year ending June 30, 2010 is shown below: 
    
    
    Financial Outlook
    
                                       FISCAL YEAR
    (Amounts in 000's)                    ENDED
                                      JUNE 30, 2010
                                      -------------
    
    Net income                                $1,087
    
    Interest expense – net                       200
    Income tax expense                           668
    Depreciation and amortization              1,600
                                               -----
    
    EBITDA                                     3,555
    Stock-based compensation
     and other non-cash charges                  300
    Gain on litigation settlement               (355)
                                                ----
    
    Adjusted EBITDA                           $3,500
                                              ======

Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Friday, February 19, 2010 at 4:00 pm, ET to discuss the contents of the release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using account number 286 and conference ID number 345067.

About Radiant Logistics (OTC BB: RLGT)

Radiant Logistics ( www.radiant-logistics.com) is a non-asset based logistics company providing domestic and international freight forwarding and related services through a network of approximately 70 company owned and exclusive agent offices across North America. Operating under the Airgroup, Adcom Worldwide and Radiant Logistics brands, the company services a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world. For more information about Radiant Logistics, please contact Bohn Crain at (425) 943-4599.  

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, our ability to : use Airgroup as a "platform" upon which we can build a profitable global transportation and supply chain management company; retain and build upon the relationships we have with our exclusive agency offices; continue the development of our back office infrastructure and transportation and accounting systems in a manner sufficient to service our expanding revenues and base of exclusive agency locations; maintain the future operations of Adcom in a manner consistent with its past practices, integrate the operations of Adcom with our existing operations, continue growing our business and maintain historical or increased gross profit margins; locate suitable acquisition opportunities; secure the financing necessary to complete any acquisition opportunities we locate; assess and respond to competitive practices in the industries in which we compete, mitigate, to the best extent possible, our dependence on current management and certain of our larger exclusive agency locations; assess and respond to the impact of current and future laws and governmental regulations affecting the transportation industry in general and our operations in particular; as well as those risk factors disclosed in Item 1A of  our Report on Form 10-K for the year ended June 30, 2009 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site ( www.radiant-logistics.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.

    
    
                              RADIANT LOGISTICS, INC.
                            Consolidated Balance Sheets
    
                                               December 31,        June 30,
                                                    2009             2009
                                                    ----             ----
    ASSETS
    Current assets -
       Cash and cash equivalents                $478,132         $890,572
       Accounts receivable, net of
        allowance of $824,997 and $754,578
        respectively                          21,641,624       17,275,387
       Current portion of employee loan
        receivable and other receivables         396,478          613,288
       Income tax deposit                         31,518          535,074
       Prepaid expenses and other current
        assets                                   542,503          305,643
       Deferred tax asset                        454,054          427,713
                                                 -------          -------
          Total current assets                23,544,309       20,047,677
                                              ----------       ----------
    
    Furniture and equipment, net                 567,778          760,507
                                                 -------          -------
    
    Acquired intangibles, net                  2,587,065        3,179,043
    Goodwill                                     494,291          337,000
    Employee loan receivable, net of
     current portion                              49,900           40,000
    Investment in real estate                     40,000           40,000
    Deposits and other assets                    100,499          359,606
                                                 -------          -------
          Total long term assets               3,271,755        3,955,649
                                               ---------        ---------
          Total assets                       $27,383,842      $24,763,833
                                             ===========      ===========
    
    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
    Current liabilities -
       Accounts payable and accrued
        transportation costs                  15,637,117       13,249,628
       Commissions payable                     1,143,059        1,323,004
       Other accrued costs                       579,021          472,202
       Due to former Adcom shareholder         1,515,324        2,153,721
                                               ---------        ---------
          Total current liabilities           18,874,521       17,198,555
                                              ----------       ----------
    
    Long term debt                             8,707,239        7,869,110
    Deferred tax liability                       117,196          352,387
                                                 -------          -------
          Total long term liabilities          8,824,435        8,221,497
                                               ---------        ---------
          Total liabilities                   27,698,956       25,420,052
                                              ----------       ----------
    
    Stockholders' equity (deficit):
       Preferred stock, $0.001 par value,
        5,000,000 shares authorized; no
        shares issued or outstanding                   -                -
       Common stock, $0.001 par value,
        50,000,000 shares authorized.
        Issued and outstanding:  December
        31, 2009 – 32,397,810; June 30,
        2009 – 34,106,960                         16,157           16,157
       Additional paid-in capital              7,998,362        7,889,458
       Treasury stock, at cost, 2,304,150
        and 595,000 shares, respectively        (629,886)        (138,250)
       Retained deficit                       (7,760,332)      (8,425,491)
                                              ----------       ----------
          Total Radiant Logistics, Inc.
           stockholders’ deficit                (375,699)        (658,126)
                                                --------         --------
       Non-controlling interest                   60,585            1,907
                                                  ------            -----
       Total stockholders’ equity (deficit)     (315,114)        (656,219)
                                                --------         --------
       Total liabilities and stockholders’ 
        equity (deficit)                     $27,383,842      $24,763,833
                                             ===========      ===========
    
    
    
                                RADIANT LOGISTICS, INC.
                    Consolidated Statements of Income (Operations)
    
                         THREE MONTHS ENDED                SIX MONTHS ENDED
                            DECEMBER 31,                     DECEMBER 31,
                         -----------------                -----------------
                         2009        2008                2009         2008
                         ----        ----                ----         ----
    
    Revenue         $39,115,845   $42,513,263       $73,144,179   $74,907,962
     Cost of
      transportation 27,611,567    29,023,751        51,091,017    50,235,011
                     ----------    ----------        ----------    ----------
       Net revenues  11,504,278    13,489,512        22,053,162    24,672,951
    
    
     Agent
      commissions     7,838,360     9,000,585        15,293,565    16,553,457
     Personnel costs  1,531,465     2,110,217         2,953,862     3,723,841
     Selling, general 
      and administrative
      expenses        1,153,161     1,026,362         2,249,433     2,125,384
     Depreciation and
      amortization      385,937       472,709           795,717       788,066
     Goodwill
      impairment              -    11,403,342                 -    11,403,342
     Restructuring
      charges                 -             -                 -       220,000
                             ---           ---               ---      -------
       Total operating
        expenses     10,908,923    24,013,215        21,292,577    34,814,090
                     ----------    ----------        ----------    ----------
    
     Income (loss) 
      from operations   595,355   (10,523,703)          760,585   (10,141,139)
    
     Other income
     (expense):
          Interest
           income         9,563         5,429             3,273         6,417
          Interest
           expense      (36,756)      (72,381)          (85,791)      (98,077)
         Other              454           108            98,765        35,104
         Gain on
          litigation
          settlement    354,670             -           354,670             -
                        -------            ---          -------            ---
       Total other
        income
        (expense)       327,931       (66,844)          370,917       (56,556)
                        -------       -------           -------       -------
    
     Income (loss)
      before income
      tax (expense)
      benefit           923,286   (10,590,547)        1,131,502   (10,197,695)
    
     Income tax
      (expense)
      benefit          (336,539)      382,690          (407,665)      230,031
                       --------       -------          --------       -------
    
     Net income
      (loss)            586,747   (10,207,857)          723,837    (9,967,664)
    
    
     Less: Net (income)
      Loss attributable
      to non-  
      controlling
      interest          (37,638)       (7,843)          (58,678)        2,147
                        -------        ------           -------         -----
    
     Net income (loss)
      attributable
      to Radiant
      Logistics, Inc.  $549,109  $(10,215,700)         $665,159   $(9,965,517)
                       ========  ============          ========   ===========
    
     Net income
      (loss) per
      common share
      – basic              $.02         $(.29)             $.02         $(.29)
                           ====         =====              ====         =====
     Net income
      (loss) per
      common share
      – diluted            $.02         $(.29)             $.02         $(.29)
                           ====         =====              ====         =====
    
     Weighted average
      shares outstanding:
       Basic
        shares       32,533,680    34,701,960        32,950,810    34,698,563
       Diluted
        shares       32,723,181    34,701,960        33,135,684    34,698,563
    
    The accompanying notes form an integral part of these condensed
    consolidated financial statements.
    
    
    
                             RADIANT LOGISTICS, INC.
    Reconciliation of EBITDA to Net Income and Net Cash Provided By Operating
                                    Activities
                                    (UNAUDITED)
    
    As used in this report, adjusted EBITDA means earnings before interest, 
    income taxes, depreciation and amortization adjusted for stock-based 
    compensation and other non-cash charges.  We believe that adjusted 
    EBITDA, as presented, represents a useful method of assessing the 
    performance of our operating activities, as it reflects our earnings 
    trends without the impact of certain non-cash charges.  Adjusted EBITDA 
    is also used by our creditors in assessing debt covenant compliance.  We
    understand that although securities analysts frequently use EBITDA in 
    their evaluation of companies, it is not necessarily comparable to other
    similarly titled captions of other companies due to potential 
    inconsistencies in the method of calculation.  EBITDA is not intended 
    as an alternative to cash flow provided by operating activities as a 
    measure of liquidity, as an alternative to net income as an indicator 
    of our operating performance, nor as an alternative to any other 
    measure of performance in conformity with accounting principles generally
    accepted in the United States of America.
    
    The following is a reconciliation of adjusted EBITDA to both net income 
    and cash flow provided by operating activities:
    
    
    
                      THREE MONTHS ENDED               SIX MONTHS ENDED
                         DECEMBER 31,                    DECEMBER 31,
                        ------------                    ------------
                       2009        2008                2009        2008
                       ----        ----                ----        ----
    Adjusted EBITDA  $1,026,166   $1,381,957        $1,750,106    $2,176,191
    Stock-based
     compensation
     and other non-
     cash charges       (82,058)     (37,344)         (153,717)      (88,671)
    Gain on
     litigation
     settlement         354,670            -           354,670             -
    Goodwill
     impairment               -  (11,403,342)                -   (11,403,342)
                             --- -----------                ---  -----------
    EBITDA            1,298,778  (10,058,729)        1,951,059    (9,315,822)
    
    Depreciation
     and
     amortization      (385,937)    (472,709)         (795,717)     (788,066)
    Interest
     expense, net       (27,193)     (66,952)          (82,518)      (91,660)
    Income tax
     (expense)
     benefit           (336,539)     382,690          (407,665)      230,031
                        -------     --------           -------       -------
    Net income
     (loss)             549,109  (10,215,700)          665,159    (9,965,517)
    
    ADJUSTMENTS TO
     RECONCILE NET
     INCOME (LOSS)
     TO NET CASH
     PROVIDED BY
      (USED FOR)
      OPERATING
      ACTIVITIES:
         Non-cash
          compensation
          expense (stock
          options)       54,697       32,779           108,904        80,692
         Stock issued
          for investor
          relations
          services            -            -                 -        12,084
         Amortization of
          intangibles   283,654      348,045           591,978       565,060
         Deferred income
          tax expense
          (benefit)    (201,469)    (518,926)         (261,532)      566,866
         Depreciation
          and
          amortization
          of bank fees  121,262      129,229           222,719       230,984
         Goodwill
          impairment          -   11,403,342                 -    11,403,342
         Gain on
          litigation
          settlement   (354,670)           -          (354,670)            -
         Change in non-
          controlling
          interest of
          subsidiaries   37,638        7,844            58,678        (2,147)
         Provision for
          doubtful
          accounts       38,195       53,682           143,608       149,095
    
    
       CHANGE IN
        OPERATING
        ASSETS AND
        LIABILITIES:
         Accounts
          receivable (2,270,906)   3,820,991        (4,436,656)    3,657,072
         Employee
          receivable 
          and other
          receivables    43,794        3,423           218,741       (36,813)
         Prepaid
          expenses and
          other assets   35,933        9,065           (99,071)      161,670
         Accounts
          payable &
          accrued
          transporta-
          tion costs  1,561,598   (6,212,557)        2,383,214    (6,518,887)
    
         Commissions
          payable      (621,658)  (1,065,356)         (179,945)      224,201
         Other accrued
          costs          36,781      (99,852)         (172,669)      130,571
         Income tax
          deposit       374,348   (1,604,225)          503,556    (2,450,756)
                        -------   ----------           -------     ----------
            Total           
             adjust-
             ments     (860,803)   6,307,484        (1,273,145)    8,173,034
                       ---------   ---------        ----------     ---------
    
    Net cash used
     for operating
     activities       $(311,694) $(3,908,216)        $(607,986)  $(1,792,483)
                      =========   ===========         ========   ===========

SOURCE Radiant Logistics, Inc.

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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