BELLEVUE, Wash., May 14 /PRNewswire-FirstCall/ -- Radiant Logistics, Inc. (BULLETIN BOARD: RLGT) , a domestic and international freight forwarding and logistics services company, today reported financial results for the three and nine months ended March 31, 2008.
For the three months ended March 31, 2008, Radiant reported net income of $87,000 on $25.8 million of revenues, or $0.00 per basic and fully diluted share. For the three months ended March 31, 2007, the Company reported net income of $24,000 on $19.4 million of revenues, or $0.00 per basic and fully diluted share.
For the nine months ended March 31, 2008, Radiant reported net income of $1,499,000 on $74.4 million of revenues, or $0.04 per basic and fully diluted share including net non-recurring income of $1,266,000 resulting from a reduction in estimate of liabilities assumed in the Company's acquisition of Airgroup. For the nine months ended March 31, 2007, the Company reported net income of $248,000 on $52.2 million of revenues, or $0.01 per basic and fully diluted share.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), of $495,000 for the three months ended March 31, 2008, compared to an adjusted EBITDA of $328,000 for the comparable prior year period.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), excluding the non-recurring items, of $1,416,000 for the nine months ended March 31, 2008 compared to adjusted EBITDA of $1,062,000 for the comparable prior year period. In December of 2007, the Company recognized a total of $1,918,000 in non-recurring income in connection with a reduction of its estimate of liabilities assumed in the acquisition of Airgroup and related tax indemnities net of $652,000 in corresponding tax expense. This income is not included in our adjusted EBITDA calculation for the nine months ending March 31, 2008. A reconciliation of our adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.
"We remain very pleased with our continued revenue growth and our improved profitability," said Bohn Crain, Chairman and CEO. "For the quarter ended March 31, 2008, revenues increased to $25.8 million compared to $19.4 million, a 32.9% improvement from the comparable prior period and net transportation revenues increased to $9.5 million from $7.1 million, a 33.5% improvement from the comparable prior period. This positive trend also continued in terms of profitability with our adjusted EBITDA improving 50.9% over the comparable prior year period to $495,000."
Crain continued, "In addition to our efforts to drive organic growth, we also remain very active in exploring potential acquisition opportunities. Through this process we have identified and are in conversations with a select number of potential partners that could materially accelerate our growth and I
look forward to updating you on our progress over the course of 2008 as these opportunities continue to develop."
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 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. A reconciliation of adjusted EBITDA amounts to the most directly comparable GAAP measure for the three and nine months ended March 31, 2008 and 2007 is shown below:
(Amounts in 000's)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2008 2007 2008 2007
Net income $87 $24 $1,499 $248
Interest expense - net 26 3 98 9
Income tax expense
(benefit) 36 37 772 18
Depreciation and
amortization 239 209 721 600
EBITDA 388 273 3,090 875
Stock-based compensation
and other non-cash charges 107 55 244 187
Change in estimate of
liabilities assumed
in Airgroup acquisition - - (1,431) -
Tax indemnity - - (487) -
Adjusted EBITDA $495 $328 $1,416 $1,062
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.
Investor Conference Call
Radiant will host a conference call for shareholders and the investing community on Thursday May 15, 2008 at 4:00pm, 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 283780.
About Radiant Logistics (BULLETIN BOARD: RLGT)
Radiant Logistics (http://www.radiant-logistics.com/) is executing a strategy to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers, to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including asset recovery/reverse
logistics, order fulfillment, inventory management and warehousing. 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. 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 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 relating to our ability to develop additional agency locations, as well as to locate and finance acquisition opportunities, as well as other important factors that could cause our actual results to differ from our expectations, include but are not limited to those risk factors disclosed in our Report on Form 10-K for the year ended June 30, 2007 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (http://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
(UNAUDITED)
March 31, June 30,
2008 2007
ASSETS
Current assets -
Cash and cash equivalents $279,626 $719,575
Accounts receivable, net of
allowance for doubtful accounts
of $641,493 at March 31, 2008
and $259,960 at June 30, 2007 13,536,141 15,062,910
Current portion of employee loan
receivables and other Receivables 176,592 42,800
Prepaid expenses and other current
assets 153,276 59,328
Deferred tax asset 805,516 234,656
Total current assets 14,951,151 16,119,269
Property and equipment, net 810,513 844,919
Acquired intangibles, net 1,379,253 1,789,773
Goodwill 7,433,057 5,532,223
Employee loan receivable 40,000 80,000
Investment in real estate 40,000 40,000
Deposits and other assets 173,056 618,153
$24,827,030 $25,024,337
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities -
Notes payable $233,306 $800,000
Accounts payable and accrued
transportation costs 9,709,769 13,270,756
Commissions payable 1,155,562 700,020
Other accrued costs 205,845 344,305
Income taxes payable 1,084,917 224,696
Total current liabilities 12,389,399 15,339,777
Long term debt 3,011,269 1,974,214
Deferred tax liability 468,945 608,523
Total liabilities 15,869,613 17,922,514
Minority Interest 11,840 57,482
Stockholders' equity:
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:
34,401,696 at March 31, 2008
and 33,961,639 at June 30, 2007 15,857 15,417
Additional paid-in capital 7,539,252 7,137,774
Accumulated earnings (deficit) 1,390,468 (108,850)
Total stockholders' equity 8,945,577 7,044,341
$24,827,030 $25,024,337
RADIANT LOGISTICS, INC.
Consolidated Statements of Income (Operations)
(unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2008 2007 2008 2007
Revenue $25,765,377 $19,394,026 $74,431,411 $52,155,055
Cost of
transportation 16,264,393 12,278,178 48,093,022 33,357,039
Net revenues 9,500,984 7,115,848 26,338,389 18,798,016
Agent commissions 6,611,130 5,419,646 18,617,364 14,389,716
Personnel costs 1,199,467 659,130 3,836,707 1,747,252
Selling, general
and
administrative
expenses 1,268,558 742,061 2,703,589 1,760,558
Depreciation and
amortization 238,822 209,348 720,426 600,295
Total operating
expenses 9,317,977 7,030,185 25,878,086 18,497,821
Income (loss) from
operations 183,007 85,663 460,303 300,195
Other income
(expense):
Interest income 800 2,490 3,200 6,801
Interest expense (27,173) (5,397) (101,045) (15,849)
Other-non
recurring - - 1,918,146 -
Other (47,811) (21,783) (54,550) (24,466)
Total other income
(expense) (74,184) (24,690) 1,765,751 (33,514)
Income before
income tax benefit
and minority
interest 108,823 60,973 2,226,054 266,681
Income tax
expense 35,841 37,449 772,378 18,327
Income before
minority
interest 72,982 23,524 1,453,676 248,354
Minority Interest 13,696 (18) 45,642 (18)
Net income $86,678 $23,506 $1,499,318 $248,336
Net income per
common share -
basic $ - $ - $ .04 $ .01
Net income per
common share -
diluted $ - $ - $ .04 $ .01
Weighted average
shares
outstanding:
Basic shares 34,115,010 33,961,639 34,012,391 33,856,712
Diluted
shares 34,134,454 34,162,532 34,218,416 34,363,106
RADIANT LOGISTICS, INC.
Reconciliation of EBITDA to Net Income and Net Cash Provided By (Used In)
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 (used in) 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 (used in) operating activities:
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2008 2007 2008 2007
Adjusted EBITDA $ 495,241 $327,978 $1,415,870 $1,062,359
Stock-based
compensation and
other non-cash charges
Change in Estimate of
liabilities assumed in
Airgroup 107,527 54,768 244,049 186,389
Acquisition - - 1,431,452 -
Tax indemnity - - 486,694 -
EBITDA 387,714 273,210 3,089,967 876,006
Depreciation and
amortization 238,822 209,348 720,426 600,295
Interest expense, net 26,373 2,907 97,845 9,048
Income tax expense 35,841 37,449 772,378 18,327
Net income 86,678 23,506 1,499,318 248,336
ADJUSTMENTS TO RECONCILE
NET INCOME (LOSS) TO
NET CASH
PROVIDED BY OPERATING
ACTIVITIES:
Non-cash
compensation
expense
(stock options) 57,282 49,255 150,384 141,876
Stock issuable
for investor
relations
services 37,500 - 37,500 -
Amortization of
intangibles 136,840 152,956 410,520 458,871
Depreciation and
amortization 101,982 56,392 309,906 141,423
Amortization of
deferred tax
liability (46,526) (52,005) (139,578) (156,016)
Other deferred
taxes 10,935 11,935 (570,860) (6,661)
Minority interest
in income of
subsidiaries (13,697) 12,018 (45,642) 12,018
Amortization of
employee
receivable 40,000 40,000
Provision for
doubtful
accounts 165,629 24,517 381,533 23,369
Tax indemnity (486,694) -
Change in
purchased
accounts
receivable - - - (6,128)
CHANGE IN OPERATING
ASSETS AND
LIABILITIES:
Accounts
receivable (782,232)(1,792,191) 1,145,236 (3,182,902)
Other
receivables (2,375) (1,200) (8,792) (1,271)
Prepaid expenses
and other
current assets (40,983) 3,269 334,898 (33,100)
Accounts payable
& accrued
transportation
costs 139,819 1,358,876 (3,346,953) 3,458,480
Commissions
payable 450,906 317,847 455,542 547,167
Other accrued
costs 15,016 8,881 (138,460) (47,966)
Income taxes
payable (178,568) (505,887) 860,221 (880,564)
Total
adjustments 51,528 (361,875) (611,239) 508,596
Net cash provided
(used) by operating
activities $138,206 $(338,369) $ 888,079 $756,932
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