Attached files
file | filename |
---|---|
10-K - RADIANT LOGISTICS, INC | v197466_10k.htm |
EX-32.1 - RADIANT LOGISTICS, INC | v197466_ex32-1.htm |
EX-31.1 - RADIANT LOGISTICS, INC | v197466_ex31-1.htm |
EX-21.1 - RADIANT LOGISTICS, INC | v197466_ex21-1.htm |
EXHIBIT 99.1
Contact: Bohn H.
Crain
Chief
Executive Officer
Radiant
Logistics, Inc.
(425)
943-4599
RADIANT
LOGISTICS ANNOUNCES RESULTS FOR FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30,
2010
Posts
Record Results with Annual Revenues of $146.7 Million
and
Adjusted EBITDA of $4.2 Million
________________________________________________________________________
BELLEVUE,
WA September 27, 2010 – Radiant Logistics, Inc. (OTC BB: RLGT),
a domestic and international logistics services company, today reported
financial results for the three months and year ended June 30,
2010.
For the
three months ended June 30, 2010, Radiant reported net income of $844,000 on
$40.7 million of revenues, or $0.03 per basic and fully diluted share, including
a nonrecurring gain of $135,000 on extinguishment of debt. For the
three months ended June 30, 2009, the Company reported a net loss of $57,000 on
$32.4 million of revenues, or $0.00 per basic and fully diluted
share.
For the
year ended June 30, 2010, Radiant reported net income of $1,959,000 on $146.7
million of revenues, or $0.06 per basic and fully diluted share, including
$854,000 in non-recurring gains. For the year ended June 30, 2009, Radiant
reported a net loss of $9,730,000 on $137.0 million of revenues, or a loss of
$(0.28) per basic and fully diluted share, including a non-cash charge of $11.4
million for impairment of goodwill.
In June
of 2010, the Company recognized a gain of $135,000 related to payments
made to the former shareholder of Adcom in satisfaction
of integration and earn-out obligations payable in Company stock that
were ultimately paid in cash at a discount.
In March
of 2010, the Company recognized a benefit of $364,000 resulting from a refund of
overpayments made to the State of Washington in connection with business and
occupancy taxes.
In
December 2009, the Company recorded a gain of $355,000 in connection with the
favorable settlement of a dispute with the former owner of Adcom related to the
calculation and payment of working capital and certain related post-closing
items.
In
December 2008, the Company recorded a non-cash charge of $11.4 million for
impairment of goodwill. The goodwill charge was a result of the material decline
in the market value of the Company's equity during the fourth quarter of
2008. The non-cash charge has not had any impact on its financial
condition or affected the financial covenants of the Company’s credit
facility.
The
Company also reported adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) of $1,400,000 for the three months ended
June 30, 2010, which excludes the non-recurring gain, compared to adjusted
EBITDA of $730,000 for the three months ended June 30, 2009, for an increase of
$670,000. A reconciliation of our adjusted EBITDA to the most
directly comparable GAAP measure appears at the end of this
release.
The
Company also reported adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization) which excludes the non-recurring items, of
$4,246,000 for the year ended June 30, 2010, compared to adjusted EBITDA of
$3,677,000 for the year ended June 30, 2009. A reconciliation of our
adjusted EBITDA to the most directly comparable GAAP measure appears at the end
of this release.
The
Company has also provided additional prior period analysis using pro forma
results of operations presented as if Radiant had acquired Adcom as of July 1,
2008 which is included in the Company’s Form 10-K for the year ended June 30,
2010 and filed September 27, 2010.
“We are
very pleased with our results for the quarter and fiscal year ended June 30,
2010,” said Bohn Crain, Chairman and CEO. “For the quarter ended June 30, 2010,
we posted revenues of $40.7 million, an improvement of $8.3 million or 25.8%
over the comparable prior year period. For the quarter ended June 30,
2010, we also reported $1.4 million in adjusted EBITDA, an improvement of
$670,000 or 91.8% over the comparable prior year period.”
“For the
fiscal year ended June 30, 2010, we also posted record revenues of $146.7
million, an improvement of $9.7 million or 7.1%, compared to $137.0 million in
revenues for the year ended June 30, 2009. This positive trend also continued in
terms of profitability as we reported $4,246,000 in adjusted EBITDA for the year
ended June 30, 2010, an improvement of $569,000 or 15.5% over the comparable
prior year period.”
“As we
anticipated, the operating leverage available through our scalable, non-asset
based business model is beginning to show itself as the economy
improves. While the sustainability of this upward trend in the
economy remains unclear, we believe we remain well positioned to continue to
drive profitable growth with an ability to aggressively manage our cost
structure and our continued efforts to bring value to the agent based forwarding
community. Behind these results are the resilient men and women that have
responded to this uncertain economic environment with a fierce pride of
ownership and sense of urgency to deliver for our customers. We are
proud to count them as partners and look forward to continuing to work with them
to build on these record results.”
Mr. Crain
continued, “We are projecting modest improvement in our full year results for
our new fiscal year ending June 30, 2011 with $4.5 million in adjusted EBITDA on
$158.0 million in annual revenues. This is before considering
the impact of any future acquisitions, new agent stations or further improvement
in the general economic climate.”
The
Company’s estimate of future revenues and profits is based on the assumption
that the cumulative historical financial results of operations of the Company
and Adcom for the most recent 12 months ended June 30, 2010 are indicative of
the future financial performance of the combined group. A reconciliation of
adjusted EBITDA to net income, the most directly comparable GAAP measure,
appears at the end of this release.
Supplemental Pro Forma
Information
We
believe that supplemental disclosure of our adjusted EBITDA, or earnings before
interest, taxes, depreciation and amortization adjusted for stock-based
compensation, unusual items and other non-cash costs is a useful measure for
investors because it eliminates the effect of certain non-cash costs and
provides an important metric for our business. A reconciliation of
annual pro forma adjusted EBITDA amounts to net income, the most directly
comparable GAAP measure is as follows:
Historical
Results
(Amounts
in 000’s)
|
THREE
MONTHS ENDED
JUNE
30,
|
FISCAL
YEAR ENDED
JUNE
30,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net
income (loss)
|
$ | 844 | $ | (57 | ) | $ | 1,959 | $ | (9,730 | ) | ||||||
Interest
expense (income) - net
|
31 | 46 | 135 | 204 | ||||||||||||
Income
tax expense
|
175 | 211 | 1,093 | 44 | ||||||||||||
Depreciation
and amortization
|
416 | 476 | 1,598 | 1,743 | ||||||||||||
EBITDA
|
1,466 | 676 | 4,785 | (7,739 | ) | |||||||||||
Stock-based
compensation and other non-cash charges
|
69 | 54 | 315 | 203 | ||||||||||||
Gain
on litigation settlement
|
— | — | (355 | ) | — | |||||||||||
Business
& Occupancy tax refund
|
— | — | (364 | ) | — | |||||||||||
Goodwill
impairment
|
— | — | — | 11,403 | ||||||||||||
Gain
on extinguishment of debt
|
(135 | ) | — | (135 | ) | (190 | ) | |||||||||
Adjusted EBITDA
|
$ | 1,400 | $ | 730 | $ | 4,246 | $ | 3,677 | ||||||||
Financial
Outlook
(Amounts
in 000’s)
Outlook
Fiscal
Year
Ended
June
30, 2011
|
Actual
Fiscal
Year
Ended
June
30, 2010
|
|||||||
Net
income
|
$ | 1,890 | $ | 1,959 | ||||
Interest
expense - net
|
200 | 135 | ||||||
Income
tax expense
|
1,159 | 1,093 | ||||||
Depreciation
and amortization
|
1,379 | 1,598 | ||||||
EBITDA
|
4,368 | 4,785 | ||||||
Stock-based
compensation and other non-cash charges
|
132 | 315 | ||||||
Gain
on extinguishment of debt
|
— | (135 | ) | |||||
Business
& Occupancy tax refund
|
— | (364 | ) | |||||
Gain
on litigation settlement
|
— | (355 | ) | |||||
Adjusted
EBITDA
|
$ | 4,500 | $ | 4,246 |
This
supplemental pro forma financial information is presented for informational
purposes only and is not a substitute for the historical financial information
presented in accordance with accounting principles generally accepted in the
United States.
Investor Conference
Call
Radiant
will host a conference call for shareholders and the investing community on
Tuesday September 28, 2010 at 4:00pm, ET to discuss the contents of the release.
The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for
international participants, and is expected to last approximately 30 minutes.
Callers are requested to dial in 5 minutes before the start of the call. An
audio replay will be available for one week after the teleconference by dialing
(877) 660-6853, or (201) 612-7415 for international callers, and using account
number 286 and conference ID number 357535. The call will also be webcast and
may be accessed via Radiant’s web site at http://radiantdelivers.com/?page_id=32 or
through www.InvestorCalendar.com.
About Radiant Logistics (OTC
BB: RLGT)
Radiant
Logistics (www.radiantdelivers.com) is a
non-asset based logistics company providing domestic and international freight
forwarding and related services through a network of approximately 70 company
owned and exclusive agent offices across North America. Operating under the
Airgroup, Adcom Worldwide and Radiant Logistics brands, the company services a
diversified account base including manufacturers, distributors and retailers
using a network of independent carriers and
international agents positioned strategically around the world. For more
information about Radiant Logistics, please contact Bohn Crain at (425)
943-4599.
This
press release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, regarding future operating performance,
events, trends and plans. All statements other than statements of historical
fact contained herein, including, without limitation, statements regarding our
future financial position, business strategy, budgets, projected revenues and
costs, and plans and objectives of management for future operations, are
forward-looking statements. Forward-looking statements generally can
be identified by the use of forward-looking terminology such as “may,” “will,”
“expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” or
“believes” or the negative thereof or any variation thereon or similar
terminology or expressions. We have based these forward-looking statements on
our current expectations and projections about future events. 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. Important
factors that could cause our actual results to differ from our expectations,
include but are not limited to, our ability to: use Airgroup as a “platform”
upon which we can build a profitable global transportation and supply chain
management company; retain and build upon the relationships we have with our
exclusive agency offices; continue the development of our back office
infrastructure and transportation and accounting systems in a manner sufficient
to service our expanding revenues and base of exclusive agency locations;
maintain the future operations of Adcom in a manner consistent with its past
practices, continue growing our business and maintain historical or
increased gross profit margins; locate suitable acquisition opportunities;
secure the financing necessary to complete any acquisition opportunities we
locate; assess and respond to competitive practices in the industries in which
we compete, mitigate, to the best extent possible, our dependence on current
management and certain of our larger exclusive agency locations; assess and
respond to the impact of current and future laws and governmental regulations
affecting the transportation industry in general and our operations in
particular; as well as those risk factors disclosed in Item 1A of our Report on
Form 10 K for the year ended June 30, 2010 other filings with the Securities and
Exchange Commission and other public documents and press releases which can be
found on our web-site (www.radiant-logistics.com). Readers are cautioned not to
place undue reliance on our forward-looking statements, as they speak only as of
the date made. Such statements are not guarantees of future performance or
events and we undertake no obligation to disclose any revision to these
forward-looking statements to reflect events or circumstances occurring after
the date hereof.
# #
#
RADIANT
LOGISTICS, INC.
Consolidated
Balance Sheets
June
30,
|
June
30,
|
|||||||
2010
|
2009
|
|||||||
ASSETS
|
||||||||
Current
assets -
|
||||||||
Cash
and cash equivalents
|
$ | 682,108 | $ | 890,572 | ||||
Accounts
receivable, net of allowance
|
||||||||
June
30, 2010 - $626,401; June 30, 2009 - $754,578
|
21,442,023 | 17,275,387 | ||||||
Current
portion of employee loan receivable
|
13,100 | 53,700 | ||||||
Current
portion of station and other receivables
|
195,289 | 522,088 | ||||||
Income
tax deposit
|
— | 535,074 | ||||||
Prepaid
expenses and other current assets
|
1,104,211 | 305,643 | ||||||
Deferred
tax asset
|
402,428 | 427,713 | ||||||
Total
current assets
|
23,839,159 | 20,010,177 | ||||||
Furniture
and equipment, net
|
881,416 | 760,507 | ||||||
Acquired
intangibles, net
|
2,019,757 | 3,179,043 | ||||||
Goodwill
|
982,788 | 337,000 | ||||||
Employee
loan receivable, net of current portion
|
38,000 | 40,000 | ||||||
Station
and other receivables, net of current portion
|
151,160 | 37,500 | ||||||
Investment
in real estate
|
40,000 | 40,000 | ||||||
Deposits
and other assets
|
153,116 | 359,606 | ||||||
Deferred
tax asset - long term
|
106,023 | — | ||||||
Total
long term assets
|
3,490,844 | 3,993,149 | ||||||
Total
assets
|
$ | 28,211,419 | $ | 24,763,833 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||
Current
liabilities -
|
||||||||
Accounts
payable and accrued transportation costs
|
$ | 16,004,814 | $ | 13,249,628 | ||||
Commissions
payable
|
2,119,503 | 1,323,004 | ||||||
Other
accrued costs
|
538,854 | 472,202 | ||||||
Income
taxes payable
|
76,309 | — | ||||||
Due
to former Adcom shareholder
|
603,205 | 2,153,721 | ||||||
Total
current liabilities
|
19,342,685 | 17,198,555 | ||||||
Long
term debt
|
7,641,021 | 7,869,110 | ||||||
Other
long term liabilities
|
439,905 | — | ||||||
Deferred
tax liability
|
— | 352,387 | ||||||
Total
long term liabilities
|
8,080,926 | 8,221,497 | ||||||
Total
liabilities
|
27,423,611 | 25,420,052 | ||||||
Stockholders'
equity (deficit):
|
||||||||
Preferred
stock, $0.001 par value, 5,000,000 shares authorized; no shares issued or
outstanding
|
— | — | ||||||
Common
stock, $0.001 par value, 50,000,000 shares authorized. Issued
and outstanding: June 30, 2010 – 31,273,461; June 30, 2009 –
34,106,960
|
16,157 | 16,157 | ||||||
Additional
paid-in capital
|
8,108,239 | 7,889,458 | ||||||
Treasury
stock, at cost, 3,428,499 and 595,000 shares, respectively
|
(936,190 | ) | (138,250 | ) | ||||
Retained
deficit
|
(6,646,946 | ) | (8,425,491 | ) | ||||
Total
Radiant Logistics, Inc. Stockholders’ equity (deficit)
|
721,260 | (658,126 | ) | |||||
Non-controlling
interest
|
66,548 | 1,907 | ||||||
Total
stockholders’ equity (deficit)
|
787,808 | (656,219 | ) | |||||
Total
liabilities and stockholders’ equity (deficit)
|
$ | 28,211,419 | $ | 24,763,833 |
Consolidated
Statements of Income (Operations)
(Three
months ended - unaudited)
THREE
MONTHS ENDED
JUNE
30,
|
YEAR
ENDED
JUNE
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenue
|
$ | 40,707,751 | $ | 32,360,984 | $ | 146,715,556 | $ | 136,996,319 | ||||||||
Cost
of transportation
|
27,472,232 | 22,212,677 | 101,085,752 | 91,427,781 | ||||||||||||
Net
revenues
|
13,235,519 | 10,148,307 | 45,629,804 | 45,568,538 | ||||||||||||
Agent
commissions
|
8,978,132 | 7,029,479 | 31,376,580 | 30,565,136 | ||||||||||||
Personnel
costs
|
1,480,015 | 1,371,892 | 5,882,251 | 6,920,914 | ||||||||||||
Selling,
general and administrative expenses
|
1,494,613 | 954,200 | 4,295,188 | 4,286,572 | ||||||||||||
Depreciation
and amortization
|
416,333 | 476,036 | 1,598,195 | 1,743,159 | ||||||||||||
Restructuring
charges
|
— | — | — | 220,000 | ||||||||||||
Goodwill
impairment
|
— | — | — | 11,403,342 | ||||||||||||
Total
operating expenses
|
12,369,093 | 9,831,607 | 43,152,214 | 55,139,123 | ||||||||||||
Income
(loss) from operations
|
866,426 | 316,700 | 2,477,590 | (9,570,585 | ) | |||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
income
|
5,778 | 4,641 | 44,181 | 13,540 | ||||||||||||
Interest
expense
|
(36,642 | ) | (50,423 | ) | (178,837 | ) | (216,893 | ) | ||||||||
Gain
on extinguishment of debt
|
135,012 | — | 135,012 | 190,000 | ||||||||||||
Gain
on litigation settlement
|
— | — | 354,670 | — | ||||||||||||
Other
|
84,554 | (110,108 | ) | 338,724 | (75,005 | ) | ||||||||||
Total
other income (expense)
|
188,702 | (155,890 | ) | 693,750 | (88,358 | ) | ||||||||||
Income
(loss) before income tax expense
|
1,055,128 | 160,810 | 3,171,340 | (9,658,943 | ) | |||||||||||
Income
tax expense
|
(175,438 | ) | (210,793 | ) | (1,094,154 | ) | (43,912 | ) | ||||||||
Net
income (loss)
|
879,690 | (49,983 | ) | 2,077,186 | (9,702,855 | ) | ||||||||||
Less:
Net income attributable to non-controlling interest
|
(35,412 | ) | (7,088 | ) | (118,641 | ) | (26,691 | ) | ||||||||
Net
income (loss) attributable to Radiant Logistics, Inc.
|
$ | 844,278 | $ | (57,071 | ) | $ | 1,958,545 | $ | (9,729,546 | ) | ||||||
Net
income (loss) per common share – basic
|
$ | .03 | $ | — | $ | .06 | $ | (.28 | ) | |||||||
Net
income (loss) per common share – diluted
|
$ | .03 | $ | — | $ | .06 | $ | (.28 | ) | |||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
shares
|
31,887,727 | 34,615,751 | 32,548,492 | 34,678,755 | ||||||||||||
Diluted
shares
|
32,062,153 | 34,615,751 | 32,720,019 | 34,678,755 |
RADIANT
LOGISTICS, INC.
Reconciliation
of EBITDA to Net Income and Net Cash Provided By Operating
Activities
(UNAUDITED)
As used
in this report, adjusted EBITDA means earnings before interest, income taxes,
depreciation and amortization adjusted for stock-based compensation, unusual
items and other non-cash charges. We believe that adjusted EBITDA, as
presented, represents a useful method of assessing the performance of our
operating activities, as it reflects our earnings trends without the impact of
certain non-cash charges. Adjusted EBITDA is also used by our
creditors in assessing debt covenant compliance. We understand that
although securities analysts frequently use EBITDA in their evaluation of
companies, it is not necessarily comparable to other similarly titled captions
of other companies due to potential inconsistencies in the method of
calculation. EBITDA is not intended as an alternative to cash flow
provided by operating activities as a measure of liquidity, as an alternative to
net income as an indicator of our operating performance, nor as an alternative
to any other measure of performance in conformity with accounting principles
generally accepted in the United States of America.
The
following is a reconciliation of adjusted EBITDA to both net income and cash
flow provided by operating activities:
THREE
MONTHS ENDED
JUNE
30,
|
YEAR
ENDED
JUNE
30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Adjusted
EBITDA
|
$ | 1,400,102 | $ | 729,859 | $ | 4,246,124 | $ | 3,676,596 | ||||||||
Share
based compensation and other non-cash costs
|
(68,201 | ) | (54,319 | ) | (314,696 | ) | (202,376 | ) | ||||||||
Goodwill
impairment
|
— | — | — | (11,403,342 | ) | |||||||||||
Gain
on litigation settlement
|
— | — | 354,670 | — | ||||||||||||
Business
& Occupancy tax refund
|
— | — | 364,440 | — | ||||||||||||
Gain
on extinguishment of debt
|
135,012 | — | 135,012 | 190,000 | ||||||||||||
EBITDA
|
1,466,913 | 675,540 | 4,785,550 | (7,739,122 | ) | |||||||||||
Depreciation
and amortization
|
(416,333 | ) | (476,036 | ) | (1,598,195 | ) | (1,743,159 | ) | ||||||||
Interest
expense, net
|
(30,864 | ) | (45,782 | ) | (134,656 | ) | (203,353 | ) | ||||||||
Income
tax expense
|
(175,438 | ) | (210,793 | ) | (1,094,154 | ) | (43,912 | ) | ||||||||
Net
income (loss)
|
844,278 | (57,071 | ) | 1,958,545 | (9,729,546 | ) | ||||||||||
ADJUSTMENTS
TO RECONCILE NET INCOME (LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
|
||||||||||||||||
Non-cash
compensation expense (stock options)
|
54,939 | 50,045 | 218,781 | 173,759 | ||||||||||||
Stock
issued for investor relations services
|
— | — | — | 12,082 | ||||||||||||
Amortization
of intangibles
|
283,654 | 349,155 | 1,159,286 | 1,263,370 | ||||||||||||
Deferred
income tax benefit
|
(4,021 | ) | (153,623 | ) | (433,125 | ) | (1,421,657 | ) | ||||||||
Amortization
of bank fees
|
3,486 | 4,277 | 40,748 | 16,534 | ||||||||||||
Depreciation
and leasehold amortization
|
132,679 | 126,881 | 438,909 | 479,789 | ||||||||||||
Goodwill
impairment
|
— | — | — | 11,403,342 | ||||||||||||
Gain
on early extinguishment of debt
|
(135,012 | ) | — | (135,012 | ) | (190,000 | ) | |||||||||
Gain
on litigation settlement
|
— | — | (354,670 | ) | — | |||||||||||
Change
in non-controlling interest
|
35,412 | 7,087 | 118,641 | 26,691 | ||||||||||||
Change
in provision for doubtful accounts
|
(43,358 | ) | (224,867 | ) | (54,988 | ) | (90,766 | ) | ||||||||
CHANGE
IN OPERATING ASSETS AND LIABILITIES:
|
||||||||||||||||
Accounts
receivable
|
(2,926,971 | ) | (685,019 | ) | (4,038,459 | ) | 7,669,229 | |||||||||
Employee
receivable and other receivables
|
617,816 | (4,591 | ) | 266,971 | (113,884 | ) | ||||||||||
Income
tax deposit
|
— | 340,208 | 535,074 | (450,046 | ) | |||||||||||
Prepaid
expenses, deposits and other assets
|
(599,388 | ) | 87,672 | (736,705 | ) | 259,356 | ||||||||||
Checks
issued in excess of funds
|
(44,148 | ) | — | — | — | |||||||||||
Accounts
payable & accrued transportation costs
|
2,946,711 | 1,304,469 | 2,750,911 | (5,210,752 | ) | |||||||||||
Commissions
payable
|
696,986 | (46,043 | ) | 796,499 | 186,145 | |||||||||||
Other
long term liabilities
|
416,361 | — | 439,905 | — | ||||||||||||
Other
accrued costs
|
(64,424 | ) | (332,402 | ) | (212,836 | ) | (16,368 | ) | ||||||||
Due
to former Adcom shareholder
|
— | — | (20,834 | ) | — | |||||||||||
Income
taxes payable
|
(200,303 | ) | — | 76,309 | (498,142 | ) | ||||||||||
Net
cash provided by operating activities
|
$ | 2,014,697 | $ | 766,178 | $ | 2,813,950 | $ | 3,769,136 | ||||||||