Record Results of Operation Estimated for Fiscal Fourth Quarter Annual Audited Results Expected within SEC Permitted Extension Period
BELLEVUE, WA September 14, 2020 – Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today announced select preliminary unaudited financial results for the fourth quarter ended June 30, 2020, and that it has filed a Form 12b-25 with the U.S. Securities and Exchange Commission, providing the Company with a permissible 15-day extension for filing its Annual Report on Form 10-K for the year ended June 30, 2020 (the “Form 10-K”). The Company currently expects that it will timely file its Form 10-K on or before the expiration of the extension period and will hold its quarterly earnings call concurrent with that filing.
In its Form 12b-25 filing, the Company stated that the Form 10-K could not be filed within the prescribed due date as the Company was unable to timely finalize its financial results without unreasonable expense or effort. In the filing, the Company attributed the delays to, among others, circumstances related to the COVID-19 pandemic and the associated work-from-home strategies being deployed by the Company, as well as the Company’s inability to timely interface with its auditors and third-party tax and valuation advisors critical to the audit process, principally caused by difficulties inherent in the remote workforce protocols adopted by the Company in response to the COVID-19 pandemic.
The financial results presented below for the quarterly period ended June 30, 2020, reflect preliminary estimates of the Company’s results of operations as of the date of this press release. The Company’s independent registered public accounting firm has not audited or reviewed, and does not express an opinion with respect to, this preliminary data. These estimates may be subject to change upon the completion of the reporting process and audit of the Company’s financial statements, and actual results may vary from these estimates. The preliminary unaudited results for the Company’s fiscal fourth quarter ended June 30, 2020 are as follows:
Financial Highlights – Three Months Ended June 30, 2020 (Preliminary and Unaudited)
- Revenues estimated at a record $275.5 million for the fourth fiscal quarter ended June 30, 2020, compared to revenues of $204.6 million for the comparable prior year period.
- Net revenue margin estimated at $50.1 million for the fourth fiscal quarter ended June 30, 2020, compared to net revenue margin of $58.5 million for the comparable prior year period.
- Net income attributable to common stockholders estimated at $4.7 million, or $0.09 per basic and fully diluted share, compared to net income attributable to common stockholders of $4.5 million, or $0.09 per basic and fully diluted share for the comparable prior year period.
- Adjusted net income attributable to common stockholders, a non-GAAP financial measure, estimated at a record $8.9 million, or $0.18 per basic and fully diluted share for the fourth fiscal quarter ended June 30, 2020, compared to adjusted net income attributable to common stockholders of $7.5 million, or $0.15 per basic and fully diluted share for the comparable prior year period. Adjusted net income attributable to common stockholders is calculated by applying a normalized tax rate of 24.5% and excluding other items not considered part of regular operating activities.
- Adjusted EBITDA estimated at a record $13.1 million for the fourth fiscal quarter ended June 30, 2020, compared to adjusted EBITDA of $11.0 million for the comparable prior year period. Adjusted EBITDA margin estimated at a record 26.2% for the fourth fiscal quarter ended June 30, 2020, compared to adjusted EBITDA margin of 18.8% for the comparable prior year period.
CEO Bohn Crain comments on preliminary results, the impact of COVID-19 and the delayed filing of the Company’s 10-K
“I'm very proud of the Radiant Network and our collective response to challenges presented by the COVID pandemic,” said Bohn Crain, Founder and CEO of Radiant Logistics. “Since late March we have been focusing on delivering against four key objectives: ensuring the health and safety of our employees; providing supply chain continuity for our customers, operating partners and carriers; protecting the economic security of our people to the greatest extent possible; and taking the steps necessary to mitigate the impacts of the slowing economy on our own business. Although the pandemic had a substantial negative impact on many of the industry verticals and customers that we serve, we are proud to be playing an active role in the fight against COVID-19: delivering personal protective equipment (“PPE”), food and beverage, consumer goods, technology and other essential products for our customers across North America and around the world. Our work, particularly in support of the movement of PPE, has helped us to achieve record results with an estimated $13.1 million in Adjusted EBITDA on $275.5 million in revenues for the quarter ended June 30, 2020.”
Crain continued: “As a Board and a leadership team we take our public reporting responsibilities very seriously and are very disappointed with the delay in the filing of our 10-K. We all continue to be impacted by COVID, and in sometimes not so obvious ways. We are working hard and expect to complete our filing within the time provided with the 12b-25 extension and will hold our quarterly earnings call concurrent with the ultimate filing of our 10-K. In addition, we are also taking steps to ensure that the work-from-home strategies being deployed in response to COVID by Radiant and its advisors do to not impede our ability to meet our reporting obligations in the future.”
About Radiant Logistics (Canada), Inc.
Radiant Canada is part of the Radiant Logistics Network; a comprehensive North American provider of third-party logistics and multimodal transportation services. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.
This announcement contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this announcement. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, along with express or implied assumptions about, among other things: our continued relationships with our strategic operating partners; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain of our larger strategic operating partners; our compliance with financial and other covenants under our indebtedness; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; the impact of COVID-19 on our operations and financial results; the timing for completion of the audit related to our Form 10-K and the filing date of our Form 10-K; the absence of any audit adjustments that may materially affect the preliminary unaudited financial results contained within this press release, and such other factors that may be identified from time to time in our Securities and Exchange Commission (“SEC”) filings and other public announcements, including those set forth under the caption “Risk Factors” in our Form 10-K for the year ended June 30, 2019 and our Form 10-Q for the quarter ended March 31, 2020. In addition, the global economic climate and additional or unforeseen effects from the COVID-19 pandemic amplify many of these risks. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.