Radiant(US:RLGT)2025-09-15 21:32Financial Data and Key Metrics Changes - For the fiscal year ended June 30, 2025, the company reported adjusted EBITDA of $38.8 million, an increase of $7.6 million or 24.4% compared to the prior year [3][10] - Net income for the 12 months ended June 30, 2025, was $17.3 million on revenues of $902.7 million, representing a 125% increase in net income compared to the previous year [9][10] - Adjusted net income for the same period was $30.9 million, up approximately $8.3 million or 36.6% year-over-year [10] Business Line Data and Key Metrics Changes - The company’s acquisitions contributed $6 million in adjusted EBITDA for the fiscal year, primarily from several strategic acquisitions made throughout the year [3][5] - Adjusted EBITDA for the three months ended June 30, 2025, was $7.9 million, a decrease of approximately $1.2 million or 13.1% compared to the same period in 2024 [9] Market Data and Key Metrics Changes - The company noted ongoing volatility in the market due to U.S. trade negotiations and tariffs, which have affected customer supply chain management [4][15] - There is a continued shift in sourcing from China to Southeast Asia and Mexico, which the company expects to benefit from in the long term [13][32] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic growth and acquisitions, while maintaining a strong balance sheet [5][64] - The recent acquisition of WePort in Mexico is seen as a strategic move to enhance the company’s North American footprint and support existing customers [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities despite current market volatility, emphasizing the importance of supporting customers through changing trade dynamics [4][64] - The company is focused on leveraging its technology and expanding its service offerings to enhance customer relationships and drive growth [60] Other Important Information - The company has approximately $23 million in cash and only $20 million drawn from its $200 million credit facility, indicating a strong financial position [5] - Management highlighted the importance of integrating new acquisitions effectively to maximize their potential [28] Q&A Session Summary Question: Impact of changing trade policy on business, especially regarding Mexico - Management noted that trade policies remain fluid, with customers navigating tariffs and supply chain strategies [12][15] Question: Adjusted EBITDA performance and margin concerns - Management indicated that the decrease in adjusted EBITDA was due to less pull-forward activity compared to previous periods [16][17] Question: Capacity limitations for future acquisitions - Management stated that there are no true constraints on acquisition candidates, but integration capacity is a consideration [27][28] Question: Expectations for the upcoming peak season - Management anticipates a muted peak season due to ongoing trade uncertainties, but sees growth opportunities in Mexico [32] Question: Target leverage ratio for the balance sheet - Management indicated a normalized target leverage of around 2.5 times, with flexibility for temporary increases for the right transactions [36] Question: Future outlook for new acquisitions and customer feedback - Management expressed excitement about cross-selling opportunities and the positive feedback from customers regarding new technology [58][60]