Radiant(US:RLGT)2025-05-12 21:30Financial Data and Key Metrics Changes - For the third fiscal quarter ended March 31, 2025, the company reported adjusted EBITDA of $9,400,000, an increase of $4,200,000 or over 80% compared to the prior year period [4] - Net income attributable to Radiant Logistics for the same quarter was $2,541,000, a significant improvement of approximately $3,244,000 from a net loss of $703,000 in the prior year [9] - Adjusted net income for the quarter was $6,881,000, representing an increase of approximately $3,295,000 or about 91.9% year-over-year [10] - For the nine months ended March 31, 2025, net income was $12,384,000, an increase of approximately $9,480,000 or 326.4% compared to the same period in the previous year [11] Business Line Data and Key Metrics Changes - Legacy US operations contributed $1,500,000 in incremental adjusted EBITDA, while legacy Canadian operations added $500,000 for the quarter ended March 31 [4] - The company also generated an additional $2,000,000 in adjusted EBITDA from 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][28] - The company noted that trade tensions have led to a slowdown in international trade volumes, particularly affecting ocean imports from China [21] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic growth and acquisition initiatives while maintaining a strong balance sheet [6] - Recent acquisitions and conversions of strategic operating partners are part of the company's strategy to enhance its service offerings and market presence [7] - The company is optimistic about leveraging its technology and global network to create value for shareholders and customers [46] 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 $19,000,000 in cash and only $15,000,000 drawn on its credit facility [6] - The company anticipates some near-term volatility but expects a surge in global trade as tariff disputes are resolved [5] - Management indicated that the upcoming quarter may be soft due to ongoing trade tensions, but they remain confident in long-term growth prospects [41] Other Important Information - The company is focused on strategic operating partner conversions and tuck-in acquisitions to enhance its operational capabilities [6] - The removal of the $800 de minimis rule is expected to create new opportunities for the company in the e-commerce sector [31] 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, early indications for April showed better-than-expected performance [17] Question: Any trends seen in bookings out of Asia? - Management indicated that ocean imports from China had come to a standstill but expected this to be short-lived as companies seek alternative sourcing strategies [21] Question: Clarification on gross margin impact from tariffs? - Management clarified that 25% to 30% of gross margin is associated with international trade, not necessarily indicating a direct loss in revenue [28] Question: Outlook for the fourth fiscal quarter? - Management expects softness in the June quarter and does not anticipate it being the second strongest quarter of the year [41]