Radiant(US:RLGT)2025-11-10 21:55Revenue and Profitability - Transportation revenue increased to $213.0 million for the three months ended September 30, 2025, up from $191.8 million in 2024, representing an increase of $21.2 million or 11.1%[126] - Adjusted transportation gross profit remained stable at $50.9 million for the three months ended September 30, 2025, compared to $50.8 million in 2024[126] - Net transportation margins decreased from 26.5% in 2024 to 23.9% in 2025, primarily due to higher ocean revenues with lower gross profit margins[126] - Adjusted gross profit for the total operations was $59.5 million for the three months ended September 30, 2025, compared to $57.6 million in 2024[125] - The adjusted gross profit percentage for transportation services was 23.9% in 2025, down from 26.5% in 2024[125] - Total revenues for the three months ended September 30, 2025, were $226.7 million, up from $203.6 million in 2024, reflecting an increase of 11.3%[128] - GAAP gross profit for Q3 2025 was $57.1 million, with a GAAP gross profit percentage of 25.2%, down from 26.6% in the prior year[128] - Adjusted EBITDA for the three months ended September 30, 2025, was $6.8 million, compared to $9.5 million in 2024, with adjusted EBITDA as a percentage of adjusted gross profit at 11.4%[138] Operating Expenses - Operating partner commissions increased by $1.2 million, or 6.4%, to $20.0 million in Q3 2025, with the percentage of adjusted gross profit rising to 33.6% from 32.7%[132] - Personnel costs rose by $2.0 million, or 9.9%, to $21.6 million, with the percentage of adjusted gross profit increasing to 36.3% from 34.1%[133] - Selling, general and administrative expenses increased by $1.8 million, or 17.0%, to $12.1 million, with the percentage of adjusted gross profit rising to 20.3% from 17.9%[134] Cash Flow and Liquidity - As of September 30, 2025, the company had $28.1 million in unrestricted cash and cash equivalents, indicating strong liquidity[140] - Net cash provided by operating activities was $2.5 million for Q3 2025, significantly up from $0.2 million in the same period of 2024[141] - Net cash used for investing activities was $6.0 million for the three months ended September 30, 2025, compared to $13.5 million in 2024, indicating a 55.6% decrease[142] - Cash paid for acquisitions decreased to $5.0 million in 2025 from $11.4 million in 2024, a reduction of 56.1%[142] - Net cash provided by financing activities was $8.8 million for the three months ended September 30, 2025, compared to a net cash used of $1.2 million in 2024[143] Debt and Financial Covenants - 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[144] - As of September 30, 2025, outstanding borrowings on the Revolving Credit Facility were $30.0 million, with the Company in compliance with its covenants[147] - The Company is subject to a maximum consolidated net leverage ratio of 3.00 and a minimum consolidated interest coverage ratio of 3.00 under the Revolving Credit Facility[146] - A 1.0% increase in interest rates would increase interest expense by approximately $0.01 million for every $1.0 million borrowed[149] Economic Environment and Strategic Focus - The global economic environment remains uncertain, influenced by inflation, tariff uncertainties, and geopolitical tensions, which could impact financial results[116] - The company operates over 100 locations across North America and has a diverse customer base including consumer goods, food and beverage, and electronics[112] - The company plans to grow both organically and through acquisitions, focusing on complementary geographical and logistics service offerings[114] - The company emphasizes leveraging its technology platform to strengthen customer relationships and enhance operational efficiency[114] Value-Added Services - Value-added services revenue increased to $13.6 million for the three months ended September 30, 2025, up from $11.7 million in 2024, representing a growth of 16.2%[127] - Adjusted value-added services gross profit rose to $8.5 million in Q3 2025, compared to $6.8 million in Q3 2024, with the gross profit percentage increasing from 57.6% to 62.6%[127] Capital Expenditures - Cash paid for purchases of property, technology, and equipment was $1.5 million in 2025, down from $2.1 million in 2024, a decrease of 28.6%[142] - Proceeds from the sale of property, technology, and equipment were $0.4 million in 2025, compared to less than $0.1 million in 2024[142] Foreign Exchange Impact - Foreign exchange rate fluctuations could impact net income by approximately $0.1 million for every 1.0% change in exchange rates[148]