Core Insights - Radiant Logistics, Inc. has been recognized in the Transport Topics' annual Top 100 lists for 2025, ranking 71 among third-party logistics providers and 92 among freight brokerage firms [2][3] Company Performance - The recognition highlights Radiant's resilience in a challenging freight market characterized by slow recovery and supply chain uncertainties due to tariffs and shifting trade policies [3] - The company has maintained a diversified business model across various industries and geographies, focusing on a technology-driven and relationship-oriented approach to meet customer needs [3][4] Industry Context - The logistics industry is currently facing challenges such as a slow freight market recovery and supply chain uncertainties, but leading third-party logistics providers are enhancing freight efficiency and building resilient supply chains [3] - The founder and CEO of Radiant emphasized the company's unique position to assist customers in navigating complex supply chain challenges through its proprietary global trade management platform [4] Company Overview - Radiant Logistics is a publicly traded third-party logistics company that offers technology-enabled global transportation and value-added logistics solutions primarily in the U.S. and Canada [6] - The company's service offerings include domestic and international freight forwarding, truck and rail brokerage, warehouse and distribution, customs brokerage, order fulfillment, and inventory management [6]

Core Insights - Radiant Logistics, Inc. has acquired USA Logistics Services, Inc. and USA Carrier Services, LLC, enhancing its freight forwarding and cartage operations in the Mid-Atlantic region [1][2] - The acquisition is structured with a portion of the purchase price contingent on the future performance of the acquired operations, consistent with Radiant's previous transactions [1] - USA Logistics, founded in 1999, specializes in customer service for medical equipment and time-sensitive air freight, and will transition to the Radiant brand post-acquisition [2] Company Overview - Radiant Logistics is a publicly traded third-party logistics company providing technology-enabled global transportation and value-added logistics solutions primarily in the U.S. and Canada [4] - The company offers a comprehensive range of services including domestic and international freight forwarding, truck and rail brokerage, warehouse and distribution, customs brokerage, and inventory management [4] Leadership and Strategic Direction - Mike Boyce, the founder of USA Logistics, will become the General Manager of the newly combined organization, reporting to Tim O'Brien, SVP and General Manager of Radiant's U.S. forwarding operations [2] - Radiant's CEO, Bohn Crain, emphasized the acquisition as a significant milestone in the company's evolution and a continuation of its strategy to partner with logistics entrepreneurs [3]

Core Viewpoint - Radiant Logistics, Inc. has acquired Transcon Shipping Co., Inc., enhancing its international capabilities in key gateway locations such as Los Angeles, New York, and Chicago [1][4]. Company Overview - Radiant Logistics is a publicly traded third-party logistics company that provides technology-enabled global transportation and value-added logistics solutions primarily in the U.S. and Canada [5]. - Transcon Shipping, founded in 1997, specializes in ocean freight forwarding and has developed a significant ocean import business from the transpacific [2]. Financial Performance - Transcon generated approximately $4.0 million in normalized EBITDA on revenues of about $75.0 million for the year ending December 31, 2024 [3]. Strategic Implications - The acquisition is expected to create synergies by combining Transcon's operations with Radiant's existing services, enhancing the overall service offering to customers [4]. - Terry Lynch, the leader of Transcon, will continue to support Radiant's international growth initiatives as VP of Global Network Development [3].

Core Insights - Radiant Logistics (NYSE: RLGT) is identified as a high-risk buy opportunity due to 2025 earnings being already priced in and thin margins in the business [1] Group 1: Company Analysis - The company operates in the aerospace, defense, and airline industry, which has significant growth prospects [1] - The analysis provided by the investing group is data-informed, focusing on investment opportunities within the industry [1] Group 2: Analyst Background - The analyst has a background in aerospace engineering, which aids in providing context to developments in the industry [1] - The investing group offers direct access to data analytics monitors, enhancing the analysis of investment opportunities [1]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported adjusted EBITDA of $12 million, reflecting strong financial results compared to the prior year and the previous quarter [4][5] - Net income for Q2 2025 was $6.467 million on revenues of $264.5 million, a significant increase from $985,000 on $201.1 million in revenues for Q2 2024, representing a 556.5% increase in net income [10][11] - Adjusted net income for Q2 2025 was $10.695 million, up 94.6% from $5.496 million in Q2 2024 [11][12] - For the six months ended December 31, 2024, net income was $9.843 million on revenues of $468.1 million, compared to $3.607 million on $411.9 million in the prior year, marking a 172.9% increase [13][14] Business Line Data and Key Metrics Changes - The company made progress with acquisitions, including Foundation Logistics and TCB Transportation, which are expected to enhance service offerings and revenue synergies [8][25] - The acquisition of TCB is anticipated to contribute an incremental EBITDA of $2 million to $3 million [25] Market Data and Key Metrics Changes - The company noted challenges in the market due to tariffs imposed on imports from China, Mexico, and Canada, which may affect near-term results [6] - The company maintains a strong balance sheet with approximately $20 million in cash and no meaningful debt, positioning it well to navigate market headwinds [7] Company Strategy and Development Direction - The company aims to deliver profitable growth through organic initiatives and acquisitions, focusing on strategic operating partner conversions and stock buybacks [7][8] - Management emphasized the importance of leveraging technology and a robust North American footprint to enhance service offerings and create shareholder value [71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position despite acknowledging a challenging operating environment, particularly in the near term due to market softness and tariff impacts [56][57] - The company is more bullish about its prospects compared to the previous year, citing financial flexibility and technological advancements as key differentiators [55][57] Other Important Information - The company chartered 49 flights to deliver 8 million units of IV fluid to the U.S. in response to Hurricane Milton, which contributed to the strong financial performance [5] - Management cautioned that the strong quarterly results should not be extrapolated to future performance due to expected market challenges [39] Q&A Session Summary Question: What drove the outperformance in the December quarter? - Management attributed the outperformance primarily to diverse service offerings and support for humanitarian projects related to Hurricane Milton, along with a modest market pull forward due to anticipated tariffs [19][20] Question: Can you discuss the strategic rationale behind the acquisition of TCB? - The acquisition of TCB enhances the company's intermodal offerings and is expected to contribute incremental EBITDA, with a focus on building a bimodal service offering [25][26] Question: How is the customs brokerage operation performing amid changing tariffs? - The customs brokerage business is growing, and the company is leveraging technology to provide robust solutions, although it remains a relatively small part of the overall business [28][30] Question: What is the outlook for M&A activity in the current environment? - Management indicated that the aging of agent stations and the financial struggles of some competitors are driving M&A opportunities, with a disciplined approach to acquisitions [46][48] Question: How do current market conditions compare to last year? - Management noted that while business remains soft, they are more optimistic about the company's position and prospects compared to the previous year [55][57]

Financial Performance - For the three months ended December 31, 2024, total revenues reached $264.5 million, a significant increase from $201.1 million in the same period of 2023, representing a growth of 31.4%[135] - Adjusted gross profit for the same period was $63.3 million, up from $62.0 million year-over-year, indicating a slight increase of 2.1%[135] - Transportation revenue increased by $64.3 million, or 34.2%, to $252.1 million for the three months ended December 31, 2024, compared to $187.8 million in 2023[136] - Adjusted EBITDA for the three months ended December 31, 2024, was $12.0 million, compared to $7.7 million for the same period in 2023, reflecting a significant increase[148] - Net income attributable to Radiant Logistics, Inc. was $6.5 million for the three months ended December 31, 2024, compared to $1.1 million in the prior year[139] - The company reported a net income attributable to Radiant Logistics, Inc. of $12.1 million for the three months ended December 31, 2024, compared to $1.0 million in the same period of 2023[148] - Net income attributable to Radiant Logistics, Inc. was $21.2 million for the six months ended December 31, 2024, compared to $3.6 million in the same period of 2023[162] Revenue Breakdown - Adjusted gross profit increased to $63.3 million for the three months ended December 31, 2024, from $62.0 million in 2023, with adjusted gross profit percentage decreasing from 30.8% to 23.9%[138] - Adjusted gross profit for the six months ended December 31, 2024, was $120.9 million, slightly down from $122.8 million in 2023[153] - Value-added services revenue decreased by $0.8 million, or 6.0%, to $12.5 million for the three months ended December 31, 2024, compared to $13.3 million in 2023[137] - Adjusted value-added services revenue decreased to $24.2 million for the six months ended December 31, 2024, from $26.1 million in 2023, driven by lower volumes from certain customers[152] Cost and Expenses - The company reported a cost of transportation and other services of $201.2 million for Q4 2024, compared to $139.1 million in Q4 2023, marking an increase of 44.7%[135] - Operating partner commissions decreased by $6.5 million, or 25.3%, to $19.3 million for the three months ended December 31, 2024, as a result of conversions to Company-owned locations[141] - Personnel costs decreased by $0.2 million, or 1.0%, to $19.6 million for the three months ended December 31, 2024, with personnel costs as a percentage of adjusted gross profit decreasing to 30.9% from 31.9%[142] - Selling, general and administrative expenses increased by $0.3 million, or 3.0%, to $10.8 million for the three months ended December 31, 2024, with SG&A as a percentage of adjusted gross profit increasing to 17.1%[143] - Depreciation and amortization costs increased by $0.6 million, or 15.4%, to $5.0 million for the three months ended December 31, 2024, with costs as a percentage of adjusted gross profit increasing to 8.0%[144] Strategic Initiatives - The company plans to continue its organic growth strategy by strengthening existing customer relationships and expanding its network of strategic operating partner locations[124] - The company is actively seeking acquisition candidates that can provide critical mass and complementary service offerings to enhance its logistics capabilities[125] Market Conditions - The company acknowledges that external factors such as inflation and geopolitical tensions may negatively impact its business and financial results[126] - Future financial results may be impacted by amortization of intangible assets from acquisitions and changes in fair value of contingent consideration, which are difficult to predict[147] Cash Flow and Financing - Net cash provided by operating activities increased to $15.9 million for the six months ended December 31, 2024, up from $12.1 million in 2023[165] - Net cash used for investing activities was $19.4 million, with $15.9 million allocated for acquisitions during the six months ended December 31, 2024[166] - Net cash used for financing activities was $1.4 million for the six months ended December 31, 2024, compared to $6.8 million for the same period in 2023[167] - Payments for repurchases of common stock were $0.7 million for the six months ended December 31, 2024, down from $3.1 million in 2023[167] - The Company entered into a $200 million revolving credit facility, with a $150 million tranche in U.S. Dollars and a $50 million tranche in either U.S. or Canadian Dollars[168] - As of December 31, 2024, there were no borrowings outstanding on the Revolving Credit Facility, and the Company was in compliance with its covenants[171] Interest and Currency Impact - A 1.0% increase in interest rates would increase interest expense by approximately $0.01 million per $1.0 million in borrowings[173] - If foreign exchange rates were 1.0% higher or lower, net income for the six months ended December 31, 2024, would have changed by approximately $0.01 million[172]

Financial Performance - Revenues for the second fiscal quarter ended December 31, 2024, were $264.5 million, an increase of $63.4 million or 31.5% compared to $201.1 million in the prior year period[3] - Gross profit for the second fiscal quarter was $59.6 million, up $0.8 million or 1.4% from $58.8 million in the comparable prior year period[3] - Net income attributable to Radiant Logistics for the second fiscal quarter was $6.5 million, or $0.14 per basic share, a significant increase of $5.5 million or 550.0% compared to $1.0 million in the prior year[3] - Adjusted net income for the second fiscal quarter was $10.7 million, or $0.23 per basic share, up $5.2 million or 94.5% from $5.5 million in the prior year[10] - Adjusted EBITDA for the second fiscal quarter was $12.0 million, an increase of $4.3 million or 55.8% compared to $7.7 million in the prior year[11] - For the six months ended December 31, 2024, the company reported revenues of $468.1 million and net income of $9.8 million, compared to $411.9 million and $3.6 million in the prior year[12] - Revenues for the three months ended December 31, 2024, were $264,544,000, representing a 31.5% increase from $201,082,000 in the same period of 2023[24] - Net income attributable to Radiant Logistics, Inc. for the three months ended December 31, 2024, was $6,467,000, compared to $985,000 in the same period of 2023, marking a significant increase of 558.5%[24] - Adjusted net income for the six months ended December 31, 2024, reached $18,578,000, a 54.4% increase from $12,046,000 in the same period of 2023[32] - Basic adjusted net income per share rose to $0.23 for Q4 2024, compared to $0.12 in Q4 2023, marking a 91.7% increase[32] Operational Efficiency - The adjusted EBITDA margin increased to 19.0%, up 660 basis points from 12.4% in the prior year[3] - Adjusted EBITDA for the three months ended December 31, 2024, was $12,016,000, up from $7,708,000 in 2023, reflecting a growth of 56.5%[31] - The adjusted EBITDA margin improved to 19.0% in Q4 2024, compared to 12.4% in Q4 2023, indicating enhanced operational efficiency[31] Assets and Liabilities - Total assets increased to $386,761,000 as of December 31, 2024, compared to $371,185,000 as of June 30, 2024, reflecting a growth of 4.3%[22] - Total liabilities rose to $172,213,000 as of December 31, 2024, compared to $161,676,000 as of June 30, 2024, indicating an increase of 6.3%[22] - Cash and cash equivalents decreased to $19,908,000 as of December 31, 2024, down from $24,874,000 as of June 30, 2024, a decline of 20.1%[22] - The company’s total equity increased to $214,548,000 as of December 31, 2024, compared to $209,509,000 as of June 30, 2024, reflecting a growth of 2.5%[22] Acquisitions and Market Presence - The company completed three acquisitions in the last quarter, including Foundation Logistics, Focus Logistics, and TCB Transportation, enhancing its service offerings and market presence[4][5][6] Challenges and Market Conditions - The company expects near-term results to be challenged by market headwinds and tariffs affecting trade with China, Mexico, and Canada[8] Shareholder Information - The weighted average common shares outstanding for the three months ended December 31, 2024, were 46,942,639 for basic shares and 48,983,153 for diluted shares[24] - The weighted average common shares outstanding for diluted earnings was 48,983,153 in Q4 2024, slightly down from 48,907,452 in Q4 2023[32] Other Financial Metrics - The company reported a GAAP gross profit of $59,598,000 for the three months ended December 31, 2024, with a GAAP gross profit percentage of 22.5%[30] - Adjusted gross profit for the three months ended December 31, 2024, was $63,305,000, up from $61,997,000 in 2023, with an adjusted gross profit percentage of 23.9%[30] - Operating expenses for the three months ended December 31, 2024, totaled $255,822,000, compared to $199,418,000 in the same period of 2023, an increase of 28.3%[24] - Depreciation and amortization expenses for the three months ended December 31, 2024, were $5,038,000, compared to $4,479,000 in 2023, an increase of 12.5%[31] - The company incurred litigation costs of $130,000 in Q4 2024, down from $741,000 in Q4 2023, showing a reduction of 82.5%[32] - The company reported a foreign currency transaction loss of $181,000 in Q4 2024, compared to a gain of $79,000 in Q4 2023[31]

Core Insights - Radiant Logistics, Inc. continues to show strong financial performance despite market challenges, reporting significant growth in revenues and net income for the second fiscal quarter ended December 31, 2024 [1][9][11]. Financial Performance - For the three months ended December 31, 2024, the company reported revenues of $264.5 million, an increase of $63.4 million or 31.5% compared to $201.1 million in the same period of the previous year [11]. - Net income attributable to Radiant Logistics, Inc. for the same period was $6.5 million, up from $1.0 million, representing a 550.0% increase [9][11]. - Adjusted net income for the three months ended December 31, 2024, was $10.7 million, a 94.5% increase from $5.5 million in the prior year [10][31]. - Adjusted EBITDA for the quarter was $12.0 million, reflecting a 55.8% increase compared to $7.7 million in the same quarter of the previous year [12][31]. Acquisition Strategy - The company has made several strategic acquisitions, including Foundation Logistics & Services, Focus Logistics, and TCB Transportation, aimed at enhancing its service offerings and market presence [3][4][5][8]. - Each acquisition was structured to include a performance-based component in the purchase price, aligning future payments with the success of the acquired operations [6]. Market Position and Outlook - The company maintains a strong balance sheet with approximately $20.0 million in cash and an untapped $200 million credit facility, positioning it well for future growth [8]. - Despite strong current results, the company anticipates challenges in the near term due to market headwinds and tariffs affecting trade with China, Mexico, and Canada [8]. Operational Highlights - The company has been actively involved in humanitarian efforts, including chartering flights to address national shortages of IV fluids due to Hurricane Milton, showcasing its commitment to social responsibility [7]. - The adjusted EBITDA margin improved to 19.0%, up from 12.4% in the prior year, indicating enhanced operational efficiency [11][30]. Six-Month Financial Overview - For the six months ended December 31, 2024, revenues totaled $468.1 million, up from $411.9 million in the same period of the previous year [13][22]. - Net income for the six-month period was $9.8 million, compared to $3.6 million in the prior year, reflecting strong growth [13][24].

Core Points - Radiant Logistics, Inc. will host a conference call on February 10, 2025, at 4:30 PM Eastern to discuss its financial results for the three and six months ended December 31, 2024 [1][2][3] Company Overview - Radiant Logistics operates as a third-party logistics company, providing technology-enabled global transportation and value-added logistics services primarily in the United States and Canada [4] - The company offers a comprehensive range of services including domestic and international freight forwarding, truck and rail brokerage, warehouse and distribution, customs brokerage, order fulfillment, inventory management, and technology services [4]

Company Overview - Radiant Logistics, Inc. is a technology-enabled global transportation and value-added logistics solutions provider, publicly traded on NYSE American under the ticker RLGT [5] - The company operates through its subsidiary Radiant Road and Rail, Inc., which focuses on U.S. intermodal and over-the-road brokerage services [4] Acquisition Details - Radiant Logistics has acquired the assets and operations of TCB Transportation Associates, a St. Louis-based intermodal marketing company specializing in the movement of 40 and 53-foot containers across North America [1] - The acquisition was structured with a portion of the purchase price contingent on the future performance of TCB's operations [1] TCB Transportation Profile - TCB, founded in 1999, offers door-to-door service by leveraging relationships with steamship lines, Class I railroads, and an extensive drayage network [2] - The company is recognized as one of the top providers for 40-foot container services, serving various end-markets including forestry products, food & beverage, metals & mining, and chemicals [2] Leadership and Integration - Post-acquisition, TCB will continue under the leadership of its founder, Jerry Kausch, Jr., with plans to transition to the Radiant brand in 2025 [2] - Jerry Kausch, Jr. will report to Christopher Brach, SVP and General Manager of Radiant Road & Rail, Inc. [2] Strategic Vision - The partnership aims to enhance TCB's service offerings by integrating Radiant's robust technology platform and expanding access to over-the-road brokerage and international forwarding services [3] - Radiant's CEO, Bohn Crain, emphasized the strategic importance of this acquisition in accelerating the growth of their bi-modal brokerage platform [3]