(MENAFNEditorial) BELLEVUE, Wash., Nov. 9, 2017 /PRNewswire/ --Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multi-modal transportation services company, today reported financial results for the three months ended September 30, 2017.
First Fiscal Quarter Financial Highlights (Quarter Ended September 30, 2017)
Revenues were $198.0 million for the first fiscal quarter ended September 30, 2017, up $2.9 million or 1.5% compared to revenues of $195.1 million for the comparable prior year period. Net revenues were $46.1 million for the first fiscal quarter ended September 30, 2017, down $2.9 million or 5.9% compared to net revenues of $49.0 million for the comparable prior year period. Net income attributable to common stockholders was $0.3 million, or $0.01 per basic and fully diluted share, compared to a net income of $1.4 million, or $0.03 per basic and fully diluted share for the comparable prior year period and includes $0.3 million in customer start-up costs associated with the Company's expanded materials management and distribution ("MM & D") solution offering in Canada. Adjusted net income attributable to common stockholders was $2.7 million, or $0.05 per basic and fully diluted share for the first fiscal quarter ended September 30, 2017, compared to adjusted net income of $4.0 million, or $0.08 per basic and fully diluted share for the comparable prior year period. Adjusted EBITDA was $6.5 million for the first fiscal quarter ended September 30, 2017, down $0.8 million or 11.0% compared to adjusted EBITDA of $7.3 million for the comparable prior year period. Acquisition Update
On September 1, 2017, the Company announced that it acquired the assets and operations of Sandifer-Valley Transportation & Logistics, Ltd. ("SVT") through its wholly-owned subsidiary, Radiant Global Logistics, Inc. SVT is expected to transition to the Radiant brand and will expand the Company's cross-border capabilities with Mexico providing a full range of domestic and international services with operations in McAllen, Texas.
CEO Comments
"Given the recent market headwinds, we reported Adjusted EBITDA of $6.5 million on revenues of $198.0 million and net revenues of $46.1 million for the quarter ended September 30, 2017," said Bohn Crain, Founder and CEO. "On a comparable year over year basis, revenues were up $2.9 million or 1.5% while net revenues were down $2.9 million or 5.9%. These quarterly net revenue results reflect the impacts of excess capacity and related pressures on transportation margins (down $4.2 million) that continued through most of the quarter, partially offset by an incremental $1.4 million in net revenue contribution attributed to our acquisition of Lomas Logistics which expanded our materials management and distribution ("MM & D") capabilities in Canada. Most of the compression in our net transportation margins was offset by a corresponding reduction in commissions paid to our operating partners (down $3.7 million). In addition, our quarterly results were negatively impacted by approximately $0.3 million in start-up costs associated with adding new and reconfiguring existing Canadian facilities to further expand our MM & D solution offering which we believe will be a meaningful financial contributor in future quarters.
Looking forward, we believe we are well positioned to benefit from a more favorable market environment as capacity tightens and demand accelerates. We believe this will lead to expanding transportation margins and improved financial performance for both our forwarding and brokerage operations over the next several quarters. In addition, we are seeing strong demand for our Canada-based materials management and distribution solutions offering and have secured contracts with 8 new customers that we estimate will contribute an incremental $3.5-$4.0 million in incremental annual MM & D and transportation net revenues that will come on line over the next two quarters. We believe our strategic decision to bundle value added materials management and distribution solutions with our core transportation service offering will continue to gain momentum and allow us to enhance our margins and accelerate our organic growth."
Crain Continued: "We also made meaningful progress on the technology front this last quarter with the successful pilot of our new SAP-based transportation management system in Phoenix, Arizona. This was an important milestone for the Company and puts us in position to begin a more broad-based roll out of the system in the first calendar quarter of 2018. As we have previously discussed, we believe our ongoing investment in technology provides us with a unique opportunity to deliver a state-of-the-art technology platform for our strategic operating partners and the end customers that we serve. At the same time, our new technology set will enable a number of productivity initiatives to stream-line our back-office processes and accelerate the realization of back-office cost synergies associated with existing and future acquisitions and can ultimately help facilitate revenue synergies across the platform."
September 30, 2017 – Financial Results
For the three months ended September 30, 2017, Radiant reported net income attributable to common stockholders of $0.3 million on $198.0 million of revenues, or $0.01 per basic and fully diluted share. For the three months ended September 30, 2016, Radiant reported net income attributable to common stockholders of $1.4 million on $195.1 million of revenues, or $0.03 per basic and fully diluted share.
For the three months ended September 30, 2017, Radiant reported adjusted net income attributable to common stockholders of $2.7 million, or $0.05 per basic and fully diluted share. For the three months ended September 30, 2016, Radiant reported adjusted net income attributable to common stockholders of $4.0 million, or $0.08 per basic and fully diluted share.
For the three months ended September 30, 2017, Radiant reported Adjusted EBITDA of $6.5 million, compared to $7.3 million for the comparable prior year period. Normalizing these results to exclude non-recurring transition costs associated with the interim operation of Service by Air's back-office operations, Adjusted EBITDA would have been $6.5 million and $7.8 million for the three months ended September 30, 2017 and 2016, respectively.
Earnings Call and Webcast Access Information
Radiant Logistics, Inc. will host a conference call on Thursday, November 9, 2017 at 4:30 PM Eastern to discuss the contents of this release. The conference call is open to all interested parties, including individual investors and press. Bohn Crain, Founder and CEO will host the call.
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