Radiant Logistics (RLGT) 9 Nov 232024 Q1 Earnings call transcript

Good afternoon, Bohn Crain, Radiant Logistics Founder and CEO; and Radiant's Chief Financial Officer, Todd Macomber, will provide a general business update and discuss financial results for the company's first fiscal quarter ended September 30, 2020.

Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes.

This conference call may include forward-looking statements within the meaning of Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward-looking statements on its current expectations and projections about future events. be subject the and the or company results achievements are and risks company's implied statements the or about from statements. assumptions that to by forward-looking such to achievements unknown known uncertainties actual results forward-looking These or different expressed materially may cause

that all factors impossible in the in materially may from be have website set factors forth cause include achievements the at may While it future www.radiantdelivers.com. are other Radiant the or on differ is company's available forward-looking company's public to Such statements. our those to identify and the the past that actual results filings, the which SEC those announcements, in in identified

In addition, past are necessarily results performance. not an future of indication

pass and the Radiant's to to over CEO, Crain. like Founder call I'd Bohn Now

Angel. and afternoon, call. you in joining everyone, for on today's Good Thanks, thank

XX, own quarter difficult as entire economic for our the and freight Our through virtually to slowing confluence a effect every . elevated inventories, being growth manage across ended industry experienced markets of the reduced mode cascading results continue the imports operations. shippers of by transportation. September had to continuing has reflect well The as XXXX,

impacted the our the these conditions in not the but results market As prior results only for year-over-year have quarter, current record negatively our to prior also comparison year period.

in September our EBITDA and we very cash to their begin million that find adjusted near $X.X of year-over-year generated million the in bottom to the we're comparisons, Notwithstanding cycle $X levels to said, that or for XX. in quarter and expect from that remain we markets operations would at tough With coming more proud the quarters. normalized ended to we're optimistic and almost sustainable report way

$XXX $XX continue we strong credit sheet, with to drawn on quarter and nothing the approximately of addition, cash hand enjoy on million balance million facility. our In finishing a

program in transaction our as stock support company-owned release, as we with converting our agent capital stations Florida. allocate to continue we buyback of Delray as press And in well our our stores to did detailed as we in

we previously same navigate to disciplined patient find believe as to more we positioned market At and the our believe front these discussed, freight well as acquisition the As acquisition powder we market rewarded our present slower we we way conditions. will back the time, more and to on markets are to opportunity be our normalized become ample more conducive conditions itself. have active strategy, become dry should through

and relevering remain combination tuck-in Looking station on this delivering organic our growth initiatives and ahead, Through of sheet profitable will thoughtfully through balance a buybacks. and stock we conversions acquisition focused a acquisitions synergistic combination our through Asia global continue for will deliver we continue time, meaningful leveraging our which value serve. partners end we technology, and over our network operating that business, customers approach, our we to the best-in-class to scale will extensive believe, shareholders, of

turn through we'll I'll over that, walk our it financial Todd to open Macomber, to up some it And then our Q&A. With for detailed results. CFO, us

EBITDA adjusted results, we and afternoon, September adjusted the XX, will for Bohn, discussing income XXXX. be our months and Thanks, net financial good Today, X everyone. including ended

September September per of million and For net revenues basic Radiant the reported ended or million per XX, the XXXX. X ended Logistics XX, on share of months attributable XXXX, $X.XX $X.XXX $XXX.X income months X for $X.XX to we diluted

on net $X.XX over million income This or of represents of of net to attributable $XXX $X.XXX revenues per year Logistics diluted For $X.XXX XX, September XXXX, million a approximately basic income share. and fully million comparable XX.X%. Radiant prior period the decrease of we or reported

or adjusted decrease XX, months net the the $XX.XXX XX%. compared XX, a ended $X.XXX This months to X reported XXXX, September For income, XXXX. X September million million we represents adjusted for net of $X.XXX income million ended of for approximately

XX, adjusted $X.XXX million adjusted XX.X%. X represents September million or of ended we XXXX, for approximately For XX, approximately September decrease $X.XXX months for the This reported $XX.XXX months ended million to the EBITDA XXXX. X compared a EBITDA, of

call facilitate the turn any to over will our I moderator callers. from to back Q&A our that, With

first question comes Elliot Our Cowen. TD with Instructions] [Operator from Alper

This are guess was quarter you know kind units. of context revenue on the Elliot more quarter, the you side sequentially around seeing put could on is some side. on for did I business? And slight the maybe to different pointed I business play . Jason. decline between how bookings the ocean uptick the of what ocean out? you that in I a hoping maybe guys last

Thanks.

particularly soft Ocean prior to as year a compared So for us, remains period.

narrative I think yet the I cash, the a with down modest and it's are that is what a of on on lot sailings excess under down with lines on and think certainly little some I West be equation. But at bit kind the while out good Coast. more steamship in suggest a coppers side everybody on activity on got to down they've have basis, would think expected there's blank are equipment the uptick for this their comparative what imports a from point that they're deal and to they'll full of figure volumes of to -- of still

call continuing but so meaningful And seeing peak volumes not are that in of bit -- think, I least muted back be or any with see to don't slowly little a decrease. we said, ocean might term. at increase it, we a come understatement. an But near ever

brokerage intermodal the what basis well of it in of of up there division as and day on to our contributors of kind forwarding kind kind That's brokerage, just while as Canada in type kind business by and a -- market operations we're would environment. been to that Our of both division again, at conversation as to meaningful we our reminder, kind obviously core be define and looking as ocean continue of doing, or carry operations business. we brokerage continue a truck and this soft our

shout truck of the that, coming of up City Having of that that's team it's for give to able the yellow, in brokerage effectively and Kansas growth and to put team of in to City. in out-ceding from of start, start the business and stood the I walling out path second wake there. far with kind truck making while just an that progress out we're a of organic a standing take starting team said with of place us a onboard their expectations little kind were brokerage we And would Kansas kind that there to a we a bit we in their terms trajectory profitability

incremental the truck that lot down would in are chaos brokerage others I for wake now excited what of a There's in have and a characterize to pressure. gone and the space. of really kind we're Convoy So and others expected rumor be recently marketplace of who of that expected right as the under kind opportunities in

may some we seeing of as those present we're forward. opportunities themselves dynamics so what out move of And

forwarding market of a So the lead while way the to our brokerage recap, team the as our with again, lot organization. but better. ocean continues They for business and And to more core along the businesses gets kind could be profitable profitable. in Canada are

you how your on your off Yes. how No, of guys maybe just LTL going Talk some the Maybe thoughts the that an in absolutely. about offering? some point, do business. know high-level I earlier consolidation LTL quarter. And performed affects

more. what pure deferred lot a do LTL would don't call, I of, We

expedited more was LTL time definite. Our

around clear the kind good of there. impacted So the There's we some in and obviously on and were the necessarily happened going with or to clear yellow and bad what LTL of within losers kind community. what's were winners connection

LTL or significant a meaningful in the not So direct been kind what's to impact us space. from going on of

Understood. in the location anything And last in porting guys get then Chinese to then Shanghai. thoughts curious question just a I I'll ocean bookings I the know economy. maybe been seeing of I mix would have you're side your outlook on guess hand it the China. maybe over. or there's you lot on be on

soft. still remains It

I think seeing our modest we're from orders uptick customers. in kind of a

While also all which Asia begin a we're Southeast pivot or either hearing lot customers at about. of the same our to seeing to Mexico, some and reading we're time,

I the just to right relative -- now. absolute going we're but but call historical Chinese knows, it's is best certainly, China levels, Year. this would New right of And So we muted and remains as on are it the we think season but now, volumes in away, as and soft, anemic the be in not peak we then be height time, typically will would the going go-go to be everybody

any peak season expecting meaningful to At next from not call the we're fall what ocean to in So like. next least year's dampened see kind probably of we're market. looks next divergence looking this

with from comes question next The Mark Lake Street. Argento

little more kind opportunities deals sheet now? Just need of starting to I is Do in you of set you quick a overview we but M&A the shape. Are One, on any to guess, start in a right balance market think the popping, any ones. out there. couple see before distress fantastic

as consider. of kind we certainly can be we're I'm have lot we're we think But time, the I we'll thoughtful engaged there's approach. here our of hopeful quarters. there in can be a same of we're to to think that continue lots in will done opportunities some an going get Well, coming to hopeful things opportunity to that be, I as At opportunities. and going be

higher balance were The kind had in fact sheets earnings of up fair their were space -- is, people I a at levered had least levels. our think, of at number and geared

might current have they were in a be And the or thought levered, as levered, softened Xx isn't now and which so good they at Xx they themselves may up, while or find place at to X market. everything -- bank X particularly

that deals. many folks there's as out are really there do not So actionable just to

with flexibility have. And to or so we financial that appreciative position in are we're we quite the be happy the

a we But same believe us capital stock about to compelling that, having our -- think represents we put still for our at as place said use -- capital the allocation. pretty

continuing is right, valuation. we and feelings we're we're -- while what things, hurt be own we're things we line a number attractive our in ready really of at would looking if stock up So action to our won't buy think at if to a certainly

you remind EBITDA or given what's now? cash adjusted conversion maybe, free flow That's EBITDA can helpful. And typical have Todd, capital kind right of just structure the me of to you the

probably I you're is a think I good track for income free That's best I I adjusted flow. cash metric. the think if mean Well, net best mean trying it, -- the the proxy to

Yes.

correct which minus, think or largely probably I is was is, Todd, to be plus is he spending on me for are what we think effectively going but for technology. what asking the us, I CapEx,

minus kind technology $X So I be or plus of kind being million capitalized. think would of normalized

million $X or over what year period? a

a million year. $X Yes, Yes.

Okay.

this adjusted divided X whatever income by like guys for less did you $X.X quarter, net million, is. $X.XX million. X I'm looking $X.X income. million or Adjusted $X adjusted So EBITDA million

So kind of kind good be $X million roughly free probably a flow. would cash of

free into turning So just cash. you're over half of EBITDA

where that's think in characterize and environment I we of in as that big effort a of little quite cash kind normalized. being current kind this we but I But less -- current of was in of the a I to headwind. the of of the where that Yes, flow guess characteristics anybody market. of business a I context the fair by reflective of and don't expect kind be down kind in kind collectively obviously in -- cycle, the think just are, it we the would the think profile than are would that's of higher

sheet. got mean million if in you to cap, this in million a free $XX cash great generate $XX free million $XX and million to I environment. $XX balance can obviously, Yes. make you in

So you guys I in shape. appreciate a are great But it.

Partners. comes next Jeff The Research with from Vertical Kauffman question

it's you knits to me straight? A be see we what Dollar talk a of our the bit more the financials? going the agency, little revenue a former but about impact, to to since will agency impact. here. a Can margin an of you I is tuck-in, acquisition not we're couple of guess Could going impact see set

particular is in of scheme small transaction the pretty That things.

company-owned expect wouldn't is dollar think any transaction. we to meaningful I for an in I of So stores. to value, look do have convert to more indicative to not But that stations but terms particular opportunity agent of it impact of kind

Jeff, little I to bit. because it's great a was But a tease you question, going

on -- everybody for Jeff modeling for is transactions into this So guidance. in the call, notorious M&A

So he's M&A on always guidance the transaction. high to model again,

just Jeff, transaction, base M&A loan. any in model the don't us give So

the just to is. to it skating going I'm where is where not be, puck

of in about environment, a X% on deterioration up revenues a quarter, topic, second bit seasonality a of revenue So normally, because would sequentially quarter the normal first mix. net see X% margin from and to I on little guess

below convince fiscal your that would that this normal above you Given on we muted is kind peak us as comments normal you the but word, but fiscal -- XQ do would we're to a math the transition you wrong season from be of think range? to or think guide seeing, about should Or XQ?

of kind I trends. right of historical such in foreign rely I'm sure not some We're would those on territory. now.

how Firstly, on plays a of end being the of I a softer would it here and basis we'll anticipate sequential in from But kind year us building quarter relatively see March the and likely there. then out. through back flat

about of your fun side. discussion on idea Maybe talk Just reshoring, some near-shoring you're lot Thailand going talk that say, to resulted here. chains impact say into Cambodia. or the to, you about what reshoring in the into give and U.S. networks? I side, coming know through or you Can and things of whether Mexico of of us it's then something on it's about and kind give been international Vietnam There's it's companies where going an whether you're in seeing moving supply around Asia, Chinese-based seeing manufacturing a the

Yes.

right? of been the historically think before have and and and occurring. is lower environment answer cost labor this and There -- kind recent more type in that trends the both were stuff. all are short seeking COVID even I of those manufacturing where kind yes, of those challenges, of always we of So

kind And towards think I from share China taking acceleration chain with I even is supply -- of And Asia and ever kind Mexico. some those slightly more so been But of heavily more strategies strategy. Southeast of so time. away think over tipping seeing , we're of what an Mexico have

the and large an to But with large extraordinarily expect China extraordinarily to I would off we don't continue set lights It's give opportunity in that market [indiscernible]. the would said, turning in. going still trade expect want to the and that be participate impression, the an we to

prospective in more Asia strategy. those as of are to be now what to right Southeast Mexico our and conversations customers we our be to they're do support executing do in need So around to existing types

right. created came one effort. And on months Yellow been market, in went you in, domestic going opportunities brokerage marketplace. -- then been trucking in seen movement the if down, domestic domestic There a I were one forwarding, has All their of swooped last the more focus opportunistic in slip companies brokers of lot business I'm lot through. might and freight in brokerage. to the weeks, you maybe about? X Where logistics we for recent stress has out some and talking a go this We've have of X ago, new that not or up

I the interesting created dancing think sheet. way to for got it's -- will. really -- a that's in of the early too us, if got it think it's a end premature balance we little zone, and We've bit environment, of you to But technology strong has platform. an we've be kind

the have We relationships. carrier

into a these in we that of even team knock we're platform able business to our were folks we position wood, on a team bring in of of Kansas And them so great that we board what times, customers. and have of hopefully study support on those as -- and that were some in City are to quickly receive some hard some to depending to case and terms do begin on with how that bring little great -- and

platform see looking individuals been only at right? been calls time, that of set. played have out recently we're amount opportunity kind so time. time sees spending same the there that -- of And on that the for we've with Zoom So out home, new spending over an not I unusual how a But we'll

looking We aspect really of they value this got selling of kind guess unique a call of new that that will proposition. I it's share a So where folks because their they've out lot think might there, of historical other I got get we've out these interesting, be for hopefully, one presumably I relationships brokerage services. a think And opportunities. truck our we home were customer

not border. Canadian capabilities, Radiant, with Mexico launch can can They can they sell their truck and can cast can sell sell cross international intermodal, porting, they they sell sell customs they if brokerage. But but only brokerage they

we and into these with coming back solutions attractive for brokerage So think who distressed truck kind that these a an broader we they of a more can operations some folks are of platform of their set out of represent of platform offer account.

Kevin from Davis. with comes Thompson, question Gainey Next

levels for few guys, Actually, these that visibility can been last was much I it's what at to step-up Kevin on quarters. for margins and I David. guys thing -- a And you guys if maybe of wondering wanted how kind about forward? was into one we moving dive that maintain gross consistent you the think that look least kind at you looking of pretty the we're

against was revenues, business which shipment We're around have ago right? year, prior a and small Ocean margin, the it quarter. bigger Sure. this been I from year comparing our period, And mean, per of year-over-year last ocean piece in went $X.X

product the really mix. it's So

So there's piece a want do in I margin, the to of bigger what domestic, say, margin. which results higher overall characteristics margin is much composite

think seeing So see margin what you're I as characteristics. we'll far continue now, as to

give margin slower margin market in We that of growing a about absolute and broader think I'll our the terms as maybe dollars In the those dollars getting bottom always slightly answer try the of so line gross many to as to to gross question. we business can.

we air charter periods, margin lower year business. had and we had prior comparative our in So lower ocean, margin

domestic of or lower current not dilutive these And seeing so this modes less that quarter, of kind what some margins we're with in that margin something by is lines. service

same absolute down. are dollars margin the at gross our But time,

to dollars bottom although I have to get sound margin would gross lower would margin rather gross little and counterintuitive. it I line. more a So percentages may the

indicative more of But what we're ocean to which -- global with margin way dynamics several we quarters. towards be we should until a is were upcoming if questions and kind thinking some guess, I this expect given I in see some targeted project we state that's kind terms your surge margin are of get if of we Ukraine. if think comprehensive kind of of ongoing of affairs entirely characteristics modeling kind work, would of or quarters long in your response quarter's a in lift the of the Israel a about giving So characteristics, next for how in question. possible,

one back of No, of that's kind just time the very maybe And helpful. well. macro circle on kind to last as just

guys the bottom, the much see think was I you that at kind and along what you the -- I gives expressed that we're indication at right that we're pretty of you bottom. wondering do maybe that

Well, so I -- And questions divisions. operating every these my with I of calls I them hold literally hold staff every ask every Monday, week. each very --

got think I feeling of how a of they're I've of getting kind customers. kind feedback kind pulse they're our So on pretty end with what good

best I of based so that's think you reflection the I'm customers or the And their team is giving with the engagement upon and what end feedback. kind and

think I that's the answer you. So I give best can

have I remarks. time. our back questions presenters at any we now additional appears the for no will this turn further program to over It

you. Thank right. All

to on Let to technology, by that robust saying partners prospects best-in-class and created global footprint we've American me opportunities close network about platform service leverage great we and continue here our to remain extensive Radiant. at build optimistic the to continue North our

organic tuck support stock Thanks and buybacks, At believe and we we combination multipronged Through continue stock serve. meaningful of our same value approach shareholders your that balance time, we synergistic create thoughtfully and operating growth, and acquisitions our conversions, Logistics. partners we customers to a tuck-in of for intend sheet end station listening Radiant buybacks. the will for agent the and acquisitions through of to relever our

you This for does conclude Thank today's participation. your program.

time. You may at any disconnect