Radiant Logistics Announces Results For The Second Fiscal Quarter Ended December 31, 2017

BELLEVUE, Wash., Feb. 8, 2018

Second Fiscal Quarter Financial Highlights (Quarter Ended December 31, 2017)

• Revenues were $206.7 million for the second fiscal quarter ended December 31, 2017, up $7.8 million or 3.9% compared to revenues of $198.9 million for the comparable prior year period. Sequentially, revenues were up $8.7 million or 4.4% compared to revenues of $198.0 million for the quarter ended September 30, 2017.
  
  
• Net revenues were $47.9 million for the second fiscal quarter ended December 31, 2017, down $2.2 million, or 4.4% compared to net revenues of $50.1 million for the comparable prior year period. Sequentially, net revenues were up $1.8 million or 3.9% compared to net revenues of $46.1 million for the quarter ended September 30, 2017.
  
  
• Net income attributable to common stockholders was $3.3 million, or $0.07 per basic and fully diluted share, compared to a net income of $2.1 million, or $0.04 per basic and fully diluted share for the comparable prior year period, including a one-time benefit of $2.3 million related to a re-measurement of deferred tax liabilities as a result of the recently enacted Tax Cuts and Jobs Act. Sequentially, net income improved up $3.0 million or 1000.0% compared to net income of $0.3 million for the quarter ended September 30, 2017.
  
  
• Adjusted net income attributable to common stockholders was $3.6 million, or $0.07 per basic and fully diluted share for the second fiscal quarter ended December 31, 2017, compared to adjusted net income of $5.4 million, or $0.11 per basic and fully diluted share for the comparable prior year period. Sequentially, adjusted net income attributable to common stockholders was up $0.7 million or 24.1% compared to adjusted net income of $2.9 million for the quarter ended September 30, 2017. Periods are calculated by applying a normalized tax rate of 31% and excluding other items not considered part of regular operating activities.
  
  
• Adjusted EBITDA was $7.1 million for the second fiscal quarter ended December 31, 2017, down $1.8 million or 20.2% compared to adjusted EBITDA of $8.9 million for the comparable prior year period. Sequentially, adjusted EBITDA was up $0.6 million or 9.2% compared to adjusted EBITDA of $6.5 million for the quarter ended September 30, 2017.

CEO Comments

"We are pleased to report improving results for the quarter led by progress in our Canadian operations," said Bohn Crain, Founder and CEO. "We posted Adjusted EBITDA of $7.1 million on revenues of $206.7 million and net revenues of $47.9 million for the quarter ended December 31, 2017. On a sequential quarterly comparison, revenues of $206.7 million, up $8.7 million or 4.4%; net revenues of $47.9 million, up $1.8 million or 3.9%; adjusted net income of $3.6 million, up $0.7 million or 24.1%; and adjusted EBITDA of $7.1 million, up $0.6 million or 9.2%, over the quarter ended September 30, 2017. Although margin pressures felt across our industry as a result of extreme capacity and pricing swings over the past twelve months have led to less favorable year over year comparisons, we believe we are well positioned and beginning to benefit from a more favorable market environment given the healthy economy, high freight demand and tight capacity. In addition, we continue to see strong demand for our Canada-based materials management and distribution solutions offering and believe our strategic decision to bundle value added logistics solutions with our core transportation service offering will continue to gain momentum moving forward."

"We are also a beneficiary of the recently enacted Tax Cuts and Jobs Act (the "Act"). The primary impact of the Act in fiscal year 2018 is a reduction of the Company's federal statutory tax rate from 35.0% to 28.1% which is the average of our rate of 35.0% for the first half of fiscal 2018 and 21.0% for the second half of fiscal 2018. Given that we have historically been a full cash tax payer, these reduced tax rates will positively impact both our after tax free cashflow as well as our earnings per share. Commencing with quarter ending September 30, 2018 we will begin to recognize the full benefit of the new federal tax rate of 21.0%. When we overlay the impact of state and other taxes, we have historically had an all-in effective tax rate of 36%. We are estimating an all-in average effective rate of rate of 31.0% through the fiscal year ending June 30, 2018 and an estimated all-in effective rate of 25.0% commencing with the quarter ending September 30, 2018.

Crain Continued: "We also continue to make meaningful progress on the technology front and have expanded the pilot of our new SAP-based transportation management system to four of our company-owned operating locations: Phoenix, Detroit, Los Angeles and Minneapolis. With four of our company-owned locations now providing domestic forwarding services using SAP-TM we are excited to get user feedback and continue to refine the system in anticipation of beginning to roll the system out to our agency locations later this year. 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."

Second Fiscal Quarter Ended December 31, 2017 – Financial Results