Radiant(US:RLGT)2025-02-10 21:55Financial 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]