RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE FOURTH FISCAL QUARTER AND YEAR ENDED JUNE 30, 2024

PR Newswire

RENTON, Wash., Sept. 12, 2024

Financial results inflect to the positive with sequential quarterly improvement;

Continued progress in green-field and strategic operating partners acquisitions;

Debt free and well positioned for further growth as market conditions improve

RENTON, Wash., Sept. 12, 2024 /PRNewswire/ -- Radiant Logistics, Inc. (NYSE American: RLGT), a technology-enabled global transportation and value-added logistics services company, today reported financial results for the three and twelve months ended June 30, 2024.

Financial Highlights -- Three Months Ended June 30, 2024

   -- Revenues of $206.0 million for the fourth fiscal quarter ended June 30, 
      2024, down $26.2 million or 11.3%, compared to revenues of $232.2 million 
      for the comparable prior year period. On a sequential basis, revenues for 
      the fourth fiscal quarter ended June 30, 2024, were up $21.4 million or 
      11.6% compared to revenues of $184.6 million for the third fiscal quarter 
      ended March 31, 2024. 
 
   -- Gross profit of $57.3 million for the fourth fiscal quarter ended June 
      30, 2024, down $5.7 million or 9.0%, compared to gross profit of $63.0 
      million for the comparable prior year period. On a sequential basis, 
      gross profit for the fourth fiscal quarter ended June 30, 2024, was up 
      $8.5 million or 17.4%, compared to gross profit of $48.8 million for the 
      third fiscal quarter ended March 31, 2024. 
 
   -- Adjusted gross profit, a non-GAAP financial measure, of $60.6 million for 
      the fourth fiscal quarter ended June 30, 2024, down $5.7 million or 8.6%, 
      compared to adjusted gross profit of $66.3 million for the comparable 
      prior year period. On a sequential basis, adjusted gross profit for the 
      fourth fiscal quarter ended June 30, 2024, was up $7.5 million or 14.1%, 
      compared to adjusted gross profit of $53.1 million for the third fiscal 
      quarter ended March 31, 2024. 
 
   -- Net income attributable to Radiant Logistics, Inc. of $4.8 million, or 
      $0.10 per basic and fully diluted share for the fourth fiscal quarter 
      ended June 30, 2024, up $1.7 million or 54.8%, compared to $3.1 million, 
      or $0.07 per basic and $0.06 per fully diluted share for the comparable 
      prior year period. On a sequential basis, net income attributable to 
      Radiant Logistics, Inc. for the fourth fiscal quarter ended June 30, 
      2024, was up $5.5 million or 785.7%, compared to a net loss attributable 
      to Radiant Logistics, Inc. of $0.7 million for the third fiscal quarter 
      ended March 31, 2024. 
 
   -- Adjusted net income, a non-GAAP financial measure, of $7.0 million, or 
      $0.15 per basic and $0.14 per fully diluted share for the fourth fiscal 
      quarter ended June 30, 2024, up $0.5 million or 7.7%, compared to 
      adjusted net income of $6.5 million, or $0.14 per basic and $0.13 per 
      fully diluted share for the comparable prior year period. On a sequential 
      basis, adjusted net income for the fourth fiscal quarter ended June 30, 
      2024, was up $3.4 million or 94.4%, compared to adjusted net income of 
      $3.6 million for the third fiscal quarter ended March 31, 2024. Adjusted 
      net income is calculated by applying a normalized tax rate of 24.5% and 
      excluding other items not considered part of regular operating 
      activities. 
 
   -- Adjusted EBITDA, a non-GAAP financial measure, of $9.1 million for the 
      fourth fiscal quarter ended June 30, 2024, down $0.1 million or 1.1%, 
      compared to adjusted EBITDA of $9.2 million for the comparable prior year 
      period. On a sequential basis, adjusted EBITDA for the fourth fiscal 
      quarter ended June 30, 2024, was up $3.9 million or 75.0%, compared to 
      adjusted EBITDA of $5.2 million for the third fiscal quarter ended March 
      31, 2024. 
 
   -- Adjusted EBITDA margin (adjusted EBITDA expressed as a percentage of 
      adjusted gross profit), a non-GAAP financial measure, up to 15.0% or 110 
      basis points, for the fourth fiscal quarter ended June 30, 2024, compared 
      to adjusted EBITDA margin of 13.9% for the comparable prior year period. 
      On a sequential basis, adjusted EBITDA margin for the fourth fiscal 
      quarter ended June 30, 2024 of 15.0% was up 520 basis points when 
      compared to the 9.8% adjusted EBITDA margin for the third fiscal quarter 
      ended March 31, 2024. 

Acquisition Recap

Effective October 1, 2023, the Company acquired the operations of Daleray Corporation ("Daleray"), a Fort Lauderdale, Florida based, privately held company that has operated under the Company's Distribution By Air brand since 2014.

Effective February 1, 2024, the Company acquired Select Logistics, Inc. and Select Cartage, Inc. (collectively "Select"), both Miami, Florida based, privately held companies that have operated as part of the Company's Adcom Worldwide brand since 2007. Both Daleray and Select are being combined to operate as Radiant Global Logistics and will leverage their combined expertise and in-depth knowledge to solidify the Company's cruise logistics service offerings in south Florida.

Effective April 1, 2024, the Company acquired the assets and operations of Viking Worldwide, Inc.("Viking"), a Minnesota based, privately held company with operations in both Minneapolis, Minnesota and Houston, Texas that has operated under the Company's Service by Air brand since 2012. Viking services a diversified account base specializing in the high-tech, brand management, life- sciences, and trade show industries. Viking continues to operate under the Service by Air brand and is expected to complete its transition to the Radiant brand over the course of 2024 as Viking's Minneapolis operations combine with existing Company-owned operations in the area.

On June 1, 2024, the Company acquired the operations Cascade Transportation, Inc. ("Cascade"), a Seattle based, privately held company that provides a full range of customized time critical domestic and international transportation and logistics services. Cascade previously operated as an agent station for a competing network and has combined with Radiant's Company-owned operations in the Seattle area and now operates as Radiant Global Logistics.

On June 1, 2024, the Company acquired the operations of DVA Associates, Inc. ("DVA"), a Portland, Oregon based, privately held company that provides a full range of domestic and international transportation and logistics services across North America. DVA previously operated as an agent station for a competing network and now operates as Radiant Global Logistics and is expected to combine with other Radiant's Company-owned operations in the Portland area in 2025.

Effective September 1, 2024, the Company acquired Foundation Logistics & Services, LLC ("Foundation"), a Humble, Texas based, privately held company that provides a full range of specialized transportation and logistics services for companies involved in the exploration, drilling, and production of oil and gas. Founded in 2014, Foundation specializes in servicing the oil and gas industry with a focus on the transportation of hazardous materials, including explosives, and urgent oilfield equipment to points around the world. The company will continue to operate as Foundation Logistics with the expectation that the company will ultimately transition to operate under the Radiant brand in 2025.

The Company structured each of these transactions similar to its previous transactions, with a portion of the expected purchase price payable in subsequent periods based on the future performance of the acquired operations

Stock Buy-Back

We purchased 726,449 shares of our common stock at an average cost of $5.64 per share for an aggregate cost of $4.1 million during the fiscal year ended June 30, 2024.

As of June 30, 2024, the Company had 46,808,943 shares outstanding.

CEO Bohn Crain Comments on Results

"While our full year results continue to reflect the difficult freight markets being experienced by the entire industry as well as our operations, we did see good sequential improvement in our financial results for the fourth fiscal quarter ended June 30, 2024 when compared to our third fiscal quarter ended March 31, 2024" said Bohn Crain, Founder and CEO of Radiant Logistics. "With net income up 785.7%, adjusted net income up 94.4% and adjusted EBITDA up 75%; we hope to continue to build on this positive trend in coming quarters as markets find their way to more sustainable and normalized levels."

Mr. Crain continued, "Notwithstanding the tough year over year comparisons, we continue to deliver meaningfully positive results and have generated $31.2 million in adjusted EBITDA and $17.3 million in cash from operations for the fiscal year ended June 30, 2024. In addition, we continue to enjoy a strong balance sheet and after completing five tuck-in acquisitions and deploying $4.1 million in support of our stock buy-back program, we finished the quarter with approximately $24.9 million of cash on hand and nothing drawn on our $200.0 million credit facility.

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