Radiant(US:RLGT)2024-11-12 21:55Financial Performance - Revenues for the three months ended September 30, 2024, were $203.565 million, a decrease of 3.8% compared to $210.797 million for the same period in 2023[5] - Net income attributable to Radiant Logistics, Inc. for the quarter was $3.376 million, representing an increase of 28.8% from $2.622 million in the prior year[5] - Total gross revenues for the three months ended September 30, 2024, were $203,565,000, a decrease from $210,797,000 for the same period in 2023, representing a decline of approximately 3.2%[35] - Net income attributable to Radiant Logistics, Inc. for the three months ended September 30, 2024, was $9.166 million, compared to $7.496 million for the same period in 2023, representing a 22.2% increase[83] - Adjusted EBITDA for the three months ended September 30, 2024, was $10.353 million, compared to $8.895 million for the same period in 2023, reflecting a 16.4% increase[83] Assets and Liabilities - Total current assets decreased to $157.759 million as of September 30, 2024, down from $164.205 million at the end of June 2024[4] - Total assets increased to $375.258 million as of September 30, 2024, compared to $371.185 million at the end of June 2024[4] - Total liabilities were $162.770 million as of September 30, 2024, slightly up from $161.676 million at the end of June 2024[4] - Cash and cash equivalents decreased to $10.448 million as of September 30, 2024, down from $24.874 million at the end of June 2024[4] Shareholder Information - The company had 46,915,415 shares outstanding as of November 4, 2024[2] - The company repurchased common stock totaling $708,000 during the three months ended September 30, 2024, compared to $230,000 in the same period of 2023[8] - A total of 129,360 shares of common stock were repurchased at an average price of $5.47 per share during the three months ended September 30, 2024[96] - The maximum number of shares that may yet be purchased under the repurchase program is 4,676,592 shares[96] Operating Expenses - Operating expenses totaled $199.761 million for the quarter, a decrease from $207.136 million in the same quarter of 2023[5] - Selling, general and administrative (SG&A) expenses increased by $0.8 million, or 8.9%, to $10.3 million for the three months ended September 30, 2024, driven by increased technology spending and higher travel costs[82] - Personnel costs remained flat at $19.6 million for the three months ended September 30, 2024, but as a percentage of adjusted gross profit, they increased to 34.1% from 32.3%[82] Cash Flow - Cash provided by operating activities for the three months ended September 30, 2024, was $205,000, a significant decrease from $7,886,000 in the same period of 2023[8] - Net cash provided by operating activities decreased to $0.2 million for the three months ended September 30, 2024, down from $7.9 million in the same period of 2023, a decline of $7.7 million[85] - Cash used for investing activities increased significantly to $13.5 million for the three months ended September 30, 2024, compared to $2.5 million in the same period of 2023, primarily due to $11.4 million paid for acquisitions[85] Acquisitions - The company completed an acquisition during the three months ended September 30, 2024, with a net cash outflow of $11,444,000[8] - The company acquired Foundation Logistics & Services, LLC on September 1, 2024, with goodwill recorded in the United States operating segment[69] - The company also acquired the assets and operations of Focus Logistics, Inc. effective October 1, 2024, to enhance its offerings in the Detroit area[70] Revenue Recognition - The Company recognizes revenue primarily from transportation services, which include both domestic and international freight arrangements, with revenue recognized upon the transfer of control over the requisite transit period[22] - Transportation revenue for the three months ended September 30, 2024, was $191.8 million, a decrease of $6.2 million or 3.1% compared to $198.0 million in 2023[79] - Adjusted transportation gross profit was $50.8 million for the three months ended September 30, 2024, down from $53.8 million in 2023, with net transportation margins decreasing from 27.2% to 26.5%[79] Internal Controls and Compliance - The company reported a material weakness in internal controls over financial reporting related to the recording and processing of revenue transactions as of September 30, 2024[91] - Management made significant progress in designing and implementing new controls to mitigate risks associated with revenue accuracy during fiscal year 2024[92] - Enhanced procedures and controls have been implemented to improve the accuracy of revenue accruals[92] - Management believes that the suite of controls implemented will provide reasonable assurance against material misstatements in revenue[92] Economic Environment - The global economic environment remains uncertain, with inflation and geopolitical tensions potentially impacting business and financial results[74]