Radiant(RLGT) - 2025 Q3 - Quarterly Results

Financial Highlights and Corporate Developments This section details the company's strong Q3 FY2025 financial performance, highlighting revenue and EBITDA growth, and recent strategic acquisitions Financial Highlights – Third Quarter Fiscal 2025 For the third fiscal quarter ended March 31, 2025, Radiant Logistics reported significant year-over-year growth across key financial metrics Revenue increased by 15.9% to $214.0 million, and net income attributable to the company reversed a prior-year loss to reach $2.5 million Adjusted EBITDA saw a substantial increase of 80.8% to $9.4 million, with the corresponding margin improving by 640 basis points to 16.2% Q3 FY2025 Financial Highlights (vs. Q3 FY2024) | Metric | Q3 FY2025 | Q3 FY2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $214.0M | $184.6M | +$29.4M | +15.9% | | Gross Profit | $54.5M | $48.8M | +$5.7M | +11.7% | | Adjusted Gross Profit (Non-GAAP) | $58.2M | $53.1M | +$5.1M | +9.6% | | Net Income (Loss) | $2.5M | ($0.7M) | +$3.2M | +457.1% | | Adjusted Net Income (Non-GAAP) | $6.9M | $3.6M | +$3.3M | +91.7% | | Adjusted EBITDA (Non-GAAP) | $9.4M | $5.2M | +$4.2M | +80.8% | | Adjusted EBITDA Margin (Non-GAAP) | 16.2% | 9.8% | +640 bps | N/A | Acquisition Update The company has actively pursued its acquisition strategy, completing three key transactions between March and May 2025 These include the acquisition of Transcon Shipping Co., Inc., and the conversion of two long-standing strategic operating partners, USA Logistics Services and Universal Logistics, Inc., into company-owned operations - The company completed the following acquisitions: - March 1, 2025: Acquired Transcon Shipping Co., Inc., a California-based ocean and air freight forwarder[3] - April 1, 2025: Acquired USA Logistics Services, Inc. and USA Carrier Services, LLC, a Philadelphia-based partner since 2014[4] - May 1, 2025: Acquired Universal Logistics, Inc., a Texas-based partner since 2001[4] - These transactions were structured with a portion of the purchase price contingent on achieving certain integration milestones and future performance[5] CEO Commentary CEO Bohn Crain discusses robust Q3 performance, strategic growth initiatives, and the company's preparedness for market volatility Performance, Outlook, and Strategy CEO Bohn Crain highlighted the strong Q3 performance, with Adjusted EBITDA up over 80% to $9.4 million, driven by both legacy operations and recent acquisitions While acknowledging potential near-term volatility from U.S. trade tariffs, which could impact 25-30% of gross margins from the March quarter, he emphasized the company's strong balance sheet and commitment to its long-term growth strategy through a mix of organic initiatives, acquisitions, and stock buy-backs - The $4.2 million year-over-year increase in Adjusted EBITDA was driven by a combination of factors: - $1.5 million from legacy U.S. operations[7] - $0.5 million from legacy Canadian operations[7] - $2.0 million from recent green-field acquisitions and strategic partner conversions[7] - The company is positioned to navigate market volatility with a strong balance sheet, reporting approximately $19.0 million in cash and only $15.0 million drawn on its $200.0 million credit facility as of March 31, 2025[8] - Management anticipates near-term volatility due to U.S. trade and tariff negotiations, estimating that 25-30% of gross margins for the March quarter could have been affected by recently announced tariffs[8] - The long-term strategy remains focused on delivering profitable growth through organic initiatives, synergistic acquisitions, and re-levering the balance sheet via acquisitions and stock buy-backs[8] Detailed Financial Results This section presents comprehensive financial results for the three and nine months ended March 31, 2025, highlighting improved net income and adjusted EBITDA Three Months Ended March 31, 2025 For the third quarter of fiscal 2025, the company reported a significant turnaround, with net income of $2.5 million ($0.05 per share) compared to a net loss of $0.7 million ($0.02 loss per share) in the prior-year period On a non-GAAP basis, adjusted net income was $6.9 million, and adjusted EBITDA reached $9.4 million, up from $3.6 million and $5.2 million respectively Q3 FY2025 vs. Q3 FY2024 Results | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Revenues | $214.0M | $184.6M | | Net Income (Loss) | $2.5M | ($0.7M) | | Diluted EPS | $0.05 | ($0.02) | | Adjusted Net Income (Non-GAAP) | $6.9M | $3.6M | | Adjusted Diluted EPS (Non-GAAP) | $0.14 | $0.08 | | Adjusted EBITDA (Non-GAAP) | $9.4M | $5.2M | Nine Months Ended March 31, 2025 For the nine months ended March 31, 2025, net income attributable to the company was $12.4 million ($0.25 per diluted share), a substantial increase from $2.9 million ($0.06 per diluted share) in the same period last year Non-GAAP adjusted net income rose to $25.5 million from $15.6 million, and adjusted EBITDA grew to $30.9 million from $22.1 million Nine Months FY2025 vs. FY2024 Results | Metric | Nine Months FY2025 | Nine Months FY2024 | | :--- | :--- | :--- | | Revenues | $682.1M | $596.4M | | Net Income | $12.4M | $2.9M | | Diluted EPS | $0.25 | $0.06 | | Adjusted Net Income (Non-GAAP) | $25.5M | $15.6M | | Adjusted Diluted EPS (Non-GAAP) | $0.52 | $0.32 | | Adjusted EBITDA (Non-GAAP) | $30.9M | $22.1M | Financial Statements This section provides condensed consolidated balance sheets and statements of comprehensive income, detailing asset, liability, equity, and operational performance Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased to $414.5 million from $371.2 million at June 30, 2024, primarily due to growth in Goodwill and Intangible assets from recent acquisitions Total liabilities also rose to $196.2 million from $161.7 million, reflecting increased contingent consideration and a new $15.0 million draw on notes payable Total equity grew to $218.3 million Balance Sheet Summary (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $19,041 | $24,874 | | Total current assets | $170,243 | $164,205 | | Goodwill | $115,385 | $93,043 | | Total assets | $414,502 | $371,185 | | Total current liabilities | $114,376 | $110,451 | | Total liabilities | $196,185 | $161,676 | | Total equity | $218,317 | $209,509 | Condensed Consolidated Statements of Comprehensive Income For the three months ended March 31, 2025, the company generated revenues of $214.0 million and an operating income of $3.3 million, a significant improvement from an operating loss of $0.9 million in the prior-year quarter For the nine-month period, revenues were $682.1 million with an operating income of $15.9 million, compared to $596.4 million in revenue and $4.4 million in operating income for the same period last year Income Statement Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $214,007 | $184,559 | $682,116 | $596,438 | | Income (loss) from operations | $3,334 | ($906) | $15,860 | $4,419 | | Net income (loss) | $2,572 | ($615) | $12,505 | $3,351 | | Net income (loss) attributable to RLGT | $2,541 | ($703) | $12,384 | $2,904 | | Diluted EPS | $0.05 | ($0.02) | $0.25 | $0.06 | Reconciliation of Non-GAAP Measures This section reconciles GAAP measures to non-GAAP metrics like Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Income for core operational insights Reconciliation of Adjusted Gross Profit Adjusted Gross Profit, a non-GAAP measure excluding depreciation and amortization from cost of services, was $58.2 million for Q3 2025, up from $53.1 million in the prior year For the nine-month period, it increased to $179.0 million from $175.9 million The adjusted gross profit margin was 27.2% for the quarter and 26.2% for the nine months Adjusted Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP gross profit | $54,543 | $48,751 | $168,207 | $165,035 | | Depreciation and amortization | $3,632 | $4,370 | $10,827 | $10,908 | | Adjusted gross profit | $58,175 | $53,121 | $179,034 | $175,943 | Reconciliation of Adjusted EBITDA and Adjusted Net Income Adjusted EBITDA for Q3 2025 was $9.4 million, an 80.8% increase from $5.2 million in Q3 2024 Adjusted Net Income for the quarter was $6.9 million, up 91.7% from $3.6 million year-over-year These non-GAAP figures are adjusted for items like amortization, share-based compensation, and acquisition costs to better reflect core operating performance Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) attributable to RLGT | $2,541 | ($703) | $12,384 | $2,904 | | Adjustments | $6,857 | $5,911 | $18,482 | $19,179 | | Adjusted EBITDA | $9,398 | $5,208 | $30,866 | $22,083 | Adjusted Net Income Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) attributable to RLGT | $2,541 | ($703) | $12,384 | $2,904 | | Pre-tax adjustments | $6,572 | $5,453 | $21,336 | $17,801 | | Provision for income taxes at 24.5% | ($2,232) | ($1,164) | ($8,261) | ($5,073) | | Adjusted Net Income | $6,881 | $3,586 | $25,459 | $15,632 |