Radiant(US:RLGT)2023-09-13 22:13Financial Data and Key Metrics Changes - For the three months ended June 30, 2023, the company reported net income of $3.143 million on revenues of $232.2 million, representing a decrease of approximately $23.869 million or 53.7% compared to the same period in the prior year [18][19] - Adjusted net income for the 12 months ended June 30, 2023, was $39.301 million, down from $58.246 million in the previous year, a decrease of approximately $18.945 million or 32.5% [7] - Adjusted EBITDA for the 12 months ended June 30, 2023, was $55.638 million, down from $80.918 million, a decrease of approximately $25.280 million or 31.2% [7] Business Line Data and Key Metrics Changes - The company generated over $9 million in adjusted EBITDA for the quarter, which is viewed as a positive indicator despite the difficult market conditions [3] - The company reported a record $97.9 million in cash from operations for the fiscal year ended June 30, 2023, indicating strong operational cash flow [16] Market Data and Key Metrics Changes - The overall macroeconomic environment has negatively impacted the transportation sector, with shippers managing elevated inventories and reduced imports [15] - There are signs of slight improvement in ocean bookings, which is encouraging given the previously anemic volumes [9] Company Strategy and Development Direction - The company aims to navigate slower freight markets and is positioned to take advantage of acquisition opportunities as market conditions improve [4] - Future strategies include a combination of organic growth, acquisitions, and stock buybacks to enhance shareholder value [17][46] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at or near the bottom of the cycle and expects markets to normalize in the coming quarters [3] - The management remains optimistic about leveraging technology and a robust network to create value for shareholders [31][46] Other Important Information - The company has approximately $32.5 million in cash on hand and no drawn amounts on its $200 million credit facility, indicating a strong financial position [16] - The company has focused on paying down debt and repurchasing stock rather than pursuing acquisitions in the current environment [16] Q&A Session Summary Question: What indicators suggest a recovery in the market? - Management noted that they are observing slight improvements in ocean bookings, which is a positive sign for the market [9] Question: What is the expected normalized EBITDA range? - Management expects a normalized EBITDA run rate to be in the range of $50 million to $60 million as the market stabilizes [10] Question: How does the current economic situation affect acquisition strategies? - Management indicated that many potential acquirers are constrained by their credit facilities, creating opportunities for the company to pursue acquisitions due to its unlevered balance sheet [25][40] Question: What is the company's approach to agent station conversions? - Management expressed readiness to support agent stations in converting to company-owned stores when they are prepared [26] Question: Are acquisition multiples coming down? - Management confirmed that acquisition multiples are starting to decrease, making it a more favorable environment for potential acquisitions [44]