Financial Data and Key Metrics Changes - For the third fiscal quarter ended March 31, 2025, the company generated $9,400,000 in adjusted EBITDA, an increase of $4,200,000 or over 80% compared to the prior year period [4] - The net income attributable to Radiant Logistics for the quarter was $2,541,000 on revenues of $214,000,000, representing an improvement of approximately $3,244,000 over the comparable prior year period [9] - Adjusted net income for the quarter was $6,881,000, up approximately 91.9% from $3,586,000 in the same quarter of the previous year [10] Business Line Data and Key Metrics Changes - The legacy US operations contributed $1,500,000 in incremental adjusted EBITDA, while the legacy Canadian operations added $500,000 for the quarter ended March 31 [4] - The company reported an additional $2,000,000 in adjusted EBITDA driven by recent acquisitions, including Cascade Transportation, Foundation Logistics and Services, TCB Transportation, and TransCon Shipping [5] Market Data and Key Metrics Changes - Approximately 25% to 30% of the company's gross margins for March were impacted by recently announced tariffs, indicating a significant exposure to international trade dynamics [5][30] - The company noted that international trade volumes were beginning to slow due to trade tensions, but expressed optimism about a potential surge in global trade once these disputes are resolved [5][18] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic and acquisition initiatives while maintaining a strong balance sheet [7] - Recent acquisitions and strategic operating partner conversions are part of the company's broader pipeline of opportunities, which includes both greenfield acquisitions and supporting current operating partners [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating through a slower freight market, citing a strong balance sheet with approximately $19,000,000 in cash and only $15,000,000 drawn on a $200,000,000 credit facility [7] - The company anticipates some near-term volatility but believes that any slowdown will likely be followed by a surge in demand as supply chains reset [5][18] Other Important Information - The company remains focused on leveraging its technology and extensive network to create value for shareholders and customers [49] - Management highlighted the importance of adapting to changing market conditions and supporting customers through evolving trade dynamics [6][34] Q&A Session Summary Question: What drove the outperformance of the base business this quarter? - Management noted that while there was some slowing in international trade volumes, the business performed better than expected, with broad-based strength contributing to the overall increase [17][20] Question: What trends are seen in bookings out of Asia given the tariff news? - Management indicated that ocean imports from China had come to a standstill but expected this to be short-lived, with ongoing efforts to diversify sourcing strategies [22][24] Question: How was gross margin affected by tariffs? - Management clarified that 25% to 30% of gross margin is associated with international trade, indicating exposure rather than a direct impact on margin percentages [30] Question: What is the outlook for the fourth fiscal quarter? - Management expects the June quarter to be soft due to current uncertainties and does not anticipate it being the second strongest quarter of the year [44]

Radiant Logistics (RLGT) Q3 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Greetings, and welcome to the Radiant Logistics Third Quarter Fiscal Year twenty twenty five Earnings Call. At this time, all participants are on a listen only mode and a question and answer session will follow the formal presentation. Please note, this conference is being recorded. This afternoon, Bon Crane, Radiant Logistics' Founder and Chief Executive Officer and Radiant's Chief Financial Officer, Todd McCumber, will provid ...