Radiant Logistics Announces Results For The First Fiscal Quarter Ended September 30, 2016

BELLEVUE, Wash., Nov. 9, 2016

First Fiscal Quarter Financial Highlights (Quarter Ended September 30, 2016)

• Revenues were $195.1 million for the fiscal quarter ended September 30, 2016, down $20.4 million or 9.5% compared to revenues of $215.5 million for the comparable prior year period. Forwarding revenues were down $11.5 million or 7.6%, driven principally by a decrease of $6.0 million in year over year revenues at On Time Express related to the previously disclosed loss of a significant customer in October of 2015, along with an overall reduction in the price of fuel which is generally a pass through item. Brokerage revenue was down $8.7 million driven principally by the impacts of excess capacity and related margin pressures of the current market environment, particularly in the Company's U.S. operations. Sequentially, revenues were up $11.5 million or 6.3% compared to revenues of $183.6 million for the quarter ended June 30, 2016.

• Net revenues were $49.0 million for the fiscal quarter ended September 30, 2016, down $1.7 million or 3.4% compared to net revenues of $50.7 million for the comparable prior year period. Net revenues would have improved $0.3 million for the comparable prior year period excluding a decrease of $1.3 million attributed to On Time Express and a decrease of $0.7 million attributed to softness in U.S Brokerage operations. Sequentially, net revenues were up $2.5 million or 5.4% compared to net revenues of $46.5 million for the quarter ended June 30, 2016.

• Net income attributable to common stockholders was $1.4 million, or $0.03 per basic and fully diluted share for the fiscal quarter ended September 30, 2016, compared to a net loss of $.2 million, or $0.00 per basic and fully diluted share, for the comparable prior period. Sequentially, net income improved $2.0 million or $0.04 per basic and fully diluted share compared to the net loss of $0.6 million for the quarter ended June 30, 2016.

• Adjusted net income attributable to common stockholders was $4.0 million or $0.08 per basic and fully diluted share for the fiscal quarter ended September 30, 2016 compared to adjusted net income attributable to common stockholders of $4.2 million or $0.09 per basic and fully diluted share for the comparable prior year period. Sequentially, adjusted net income attributable to common stockholders was up $1.2 million or $0.02 per basic and fully diluted share compared to adjusted net income of $2.8 million for the quarter ended June 30, 2016. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.

• Adjusted EBITDA was $7.3 million for the fiscal quarter ended September 30, 2016, down $0.9 million or 10.5% compared to adjusted EBITDA of $8.2 million for the comparable prior year period. Adjusted EBITDA would have improved $0.7 million for the comparable prior year period excluding a decrease of $0.9 million attributed to On Time Express and a decrease of $0.7 million attributed to softness in U.S Brokerage operations. Sequentially, adjusted EBITDA was up $1.9 million or 35.2% compared to adjusted EBITDA of $5.4 million for the quarter ended June 30, 2016. Normalizing these results to exclude $0.5 million in non-recurring transition costs associated with the interim operation of Service By Air's back-office operations, Adjusted EBITDA would have been $7.8 million for the fiscal quarter ended September 30, 2016, compared to $8.8 million for comparable prior year period.

• Cash provided by operations for the fiscal quarter ended September 30, 2016 was $3.5 million.

Share Repurchase Program

The Company activated its previously announced share repurchase program and acquired 91,798 shares at an aggregate cost of approximately $253,000, or $2.75 per share during the quarter ended September 30, 2016. Under the currently approved plan, the Company is authorized to repurchase up to 5,000,000 shares of the Company's common stock through December 31, 2016. Prior to this fiscal quarter, there were no purchases of common stock executed under the repurchase program.

CEO Comments

"We are pleased to report another solid quarter with revenues of $195.1 million, net revenues of $49.0 million and adjusted EBITDA of $7.3 million," said Bohn Crain, Founder and CEO. "On a comparable year over year basis, revenues were down $20.4 million or 9.5%, net revenues were relatively flat, down $1.7 million or 3.4% and adjusted EBITDA was down $0.9 million or 10.5%. Excluding the impact of On Time Express, we are quite pleased with the general resiliency of our broader business and how we have been able to respond to the softness in our U.S. Brokerage operations. Forwarding revenues were down $11.5 million or 7.6%, but driven principally by a decrease of $6.0 million in year over year revenues at On Time Express along with an overall reduction in the price of fuel which is generally a pass through item. Brokerage revenues were down $8.7 million driven principally by the impacts of excess capacity and related margin pressures of the current market environment, particularly in the Company's U.S. operations. Net revenues would have improved $0.3 million for the comparable prior year period excluding a decrease of $1.3 million attributed to On Time Express and a decrease of $0.7 million attributed to softness in U.S Brokerage operations. Similarly, adjusted EBITDA would have improved $0.7 million for the comparable prior year period excluding a decrease of $0.9 million attributed to On Time Express and a decrease of $0.7 million attributed to softness in U.S Brokerage operations. Sequential quarterly comparisons are much better with revenues up $11.5 million or 6.3%; net revenues of $49.0 million, up $2.5 million or 5.4%; and adjusted EBITDA of $7.3 million, up $1.9 million or 35.2%, over the quarter ended June 30, 2016."

Crain continued: "In our opinion, it is just a matter of time before capacity tightens and the U.S. brokerage market returns to more normalized levels which should improve our overall results. In the mean time we continue to focus on the continuous improvement of our existing business through our ongoing investment in technology and our cross sale initiatives between our forwarding and brokerage operations.  Over the short term, our progress with the SBA integration will unlock meaningful cost synergies in the second half of fiscal 2017 and our cross sale initiatives between our forwarding and brokerage operations continue to gain traction. In addition, year over year comparisons become easier without the drag of On Time Express in future reporting periods. Taking a longer term view, it is also important to remember that we continue to enjoy a 10 year first-to-market advantage in executing our multi-brand strategy in consolidating agent-based forwarding networks. We believe we are uniquely positioned to support further consolidation in the marketplace and our ongoing investment in technology will give us the scalable back-office infrastructure to support a much larger enterprise going forward. This is our opportunity over the longer term."