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8-K - 8K-ER - RADIANT LOGISTICS, INCrlgt-8k_20170208.htm

Exhibit 99.1

RADIANT LOGISTICS ANNOUNCES RESULTS FOR THE SECOND

fiscal quarter ENDED December 31, 2016

Reports quarterly revenues of $198.9 million, net revenues of $50.1 million and adjusted EBITDA of $8.9 million

BELLEVUE, WA February 8, 2017 – Radiant Logistics, Inc. (NYSE MKT: RLGT), a third party logistics and multi-modal transportation services company, today reported financial results for the three and six months ended December 31, 2016.

Second Fiscal Quarter Financial Highlights (Quarter Ended December 31, 2016)

 

Revenues were $198.9 million, down $7.4 million, or 3.6% compared to revenues of $206.3 million for the comparable prior year period.

 

Net revenues were $50.1 million, up $2.5 million, or 5.3% compared to net revenues of $47.6 million for the comparable prior year period.

 

Net income attributable to common stockholders was $2.1 million, or $0.04 per basic and fully diluted share for the second fiscal quarter ended December 31, 2016, compared to a net loss attributable to common stockholders of $2.5 million, or $0.05 per basic and fully diluted share for the comparable prior year period.

 

Adjusted net income attributable to common stockholders increased 66.7% to $5.0 million, or $0.10 per basic and fully diluted share for the second fiscal quarter ended December 31, 2016 compared to adjusted net income attributable to common stockholders of $3.0 million, or $0.06 per basic and fully diluted share for the comparable prior year period. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.

 

Adjusted EBITDA increased 44.1% to $8.9 million for the second fiscal quarter ended December 31, 2016, compared to adjusted EBITDA of $6.2 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 $9.2 million for the second fiscal quarter ended December 31, 2016 compared to $6.9 million for the comparable prior year period.

Acquisition Update

In January of 2017, the Company announced it has entered into a letter agreement, by which, through its wholly owned subsidiary, Wheels International Inc., it has expressed its intent to acquire Lomas Logistics, a division of L.V. Lomas Limited. Lomas Logistics operates as a third party logistics provider serving companies across a diverse range of industries including consumer goods, healthcare, food and technology and operates from locations in Ontario and British Columbia, Canada.

Based on unaudited and pro forma historic financial statements provided by L.V. Lomas, Lomas Logistics, generated approximately CAD$2.3 million in normalized EBITDA on approximately CAD$17.3 million in revenues for calendar 2016. The transaction has been structured as a purchase of assets and is subject to completion of Radiant’s due diligence, the drafting of a definitive purchase agreement satisfactory to both parties, as well as the satisfaction of certain standard and customary pre-closing conditions, the transaction is expected to close in the quarter ended March 31, 2017.

CEO Comments

“We are very pleased to report another solid quarter and our return to a more normalized trend of margin expansion and earnings growth,” said Bohn Crain, Founder and CEO. “We posted adjusted EBITDA of $8.9 million for the quarter ended December 31, 2016, the best quarterly performance in the Company’s history, up approximately $2.7 million and 44.1% over the comparable prior year period. We are also encouraged with the margin characteristics of our business, particularly given the broader market environment of excess capacity and general margin pressures on the industry. In the aggregate, net transportation margins improved 220 basis points to 24.5% up from 22.3%. While our U.S. brokerage business was negatively impacted by the margin pressures associated with excess capacity this was more than off-set by the margin improvement we enjoyed in our much larger forwarding operations. We also saw

 


meaningful improvement in Canada where net transportation margins improved 240 basis points to 18.3% up from 15.9%. Perhaps more importantly, our Adjusted EBITDA margins improved 480 basis points to 17.7% (also the best quarterly performance in the Company’s history) up from 12.9%. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further Adjusted EBITDA margin expansion as we continue to scale the business as we leverage the benefits of our on-going technology investments.

Crain Continued: “For the six months ended December 31, 2016 we also generated $12.7 million in cash from operations, have very low leverage on our balance sheet and enjoy approximately $56.0 million in availability under our existing credit facility. We continue our disciplined approach of putting this low cost capital to work and continue to look for acquisition candidates that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. In this regard, we recently announced our letter of intent to acquire Canada-based Lomas Logistics. We have largely completed our due diligence efforts and are now working through the details of the definitive purchase agreement. Assuming the parties can come to terms on the definitive agreement, as well as the satisfaction of certain standard and customary pre-closing conditions, the transaction is expected to close in the quarter ended March 31, 2017. In addition, we have a number of additional acquisition candidates under consideration and we look forward to providing further updates as these opportunities progress.”

Second Fiscal Quarter Ended December 31, 2016 – Financial Results

For the three months ended December 31, 2016, Radiant reported net income attributable to common stockholders of $2.1 million on $198.9 million of revenues, or $0.04 per basic and fully diluted share. For the three months ended December 31, 2015, Radiant reported a net loss attributable to common stockholders of $2.5 million on $206.3 million of revenues, or $0.05 per basic and fully diluted share.

For the three months ended December 31, 2016, Radiant reported adjusted net income attributable to common stockholders of $5.0 million, or $0.10 per basic and fully diluted share. For the three months ended December 31, 2015, Radiant reported adjusted net income attributable to common stockholders of $3.0 million, or $0.06 per basic and fully diluted share. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.

For the three months ended December 31, 2016, Radiant reported Adjusted EBITDA of $8.9 million, compared to $6.2 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 $9.2 million and $6.9 million for the three months ended December 31, 2016 and 2015, respectively.

A reconciliation of Radiant’s adjusted net income and adjusted EBITDA to the most directly comparable GAAP measure for the three and six months ending December 31, 2016 and 2015 appears at the end of this release.

Six Months Ended December 31, 2016 – Financial Results

For the six months ended December 31, 2016, Radiant reported net income attributable to common stockholders of $3.4 million on $394.0 million of revenues, or $0.07 per basic and fully diluted share. For the six months ended December 31, 2015, Radiant reported a net loss attributable to common stockholders of $2.7 million on $421.8 million of revenues, or $0.06 per basic and fully diluted share.

For the six months ended December 31, 2016, Radiant reported adjusted net income attributable to common stockholders of $9.0 million or $0.18 per basic and fully diluted share. For the six months ended December 31, 2015, Radiant reported adjusted net income attributable to common stockholders of $7.2 million or $0.15 per basic and fully diluted share. Periods are calculated by applying a normalized tax rate of 36% and excluding other items not considered part of regular operating activities.

For the six months ended December 31, 2016, Radiant reported Adjusted EBITDA of $16.2 million, compared to $14.3 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 $17.0 million and $15.7 million for the six months ended December 31, 2016 and 2015, respectively.

Earnings Call and Webcast Access Information

Radiant Logistics, Inc. will host a conference call on Wednesday, February 8, 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.

2


Conference Call Details

DATE/TIME:

Wednesday, February 8, 2017 at 4:30 PM Eastern

DIAL-IN

US (877) 407-8031; Intl. (201) 689-8031

REPLAY

February 9, 2017 at 9:30 AM Eastern to February 22, 2017 at 11:59 PM Eastern, US (877) 481-4010;

 

Intl. (919) 882-2331 (Replay ID number: 10215)

Webcast Details

This call is also being webcast and may be accessed via Radiant’s web site at www.radiantdelivers.com or through www.InvestorCalendar.com.

About Radiant Logistics (NYSE MKT: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a third party logistics and multimodal transportation services company delivering advanced supply chain solutions through a network of company-owned and strategic operating partner locations across North America. 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 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to: trends in the domestic and global economy; our ability to attract new and retain existing agency relationships; acquisitions and integration of acquired entities; availability of capital to support our acquisition strategy; our ability to maintain and improve back office infrastructure and transportation and accounting information systems in a manner sufficient to service our revenues and network of operating locations; the ability of the Wheels operation to maintain and grow its revenues and operating margins in a manner consistent with recent operating results and trends; our ability to maintain positive relationships with our third-party transportation providers, suppliers and customers; outcomes of legal proceedings; competition; management of growth; potential fluctuations in operating results; and government regulation. More information about factors that potentially could affect our financial results is included Radiant Logistics, Inc.'s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

# # #

 

Investor Contact:

Stonegate, Inc.

Casey Stegman

972-850-2001

casey@stonegateinc.com

 

Media Contact:

Radiant Logistics, Inc.

Ryan McBride

(425) 943-4533

rmcbride@radiantdelivers.com

 

 

 

3


RADIANT LOGISTICS, INC.

Consolidated Balance Sheets

 

(In thousands, except share and per share data)

 

December 31,

 

 

June 30,

 

 

 

2016

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,263

 

 

$

4,768

 

Accounts receivable, net of allowance of $1,790 and $1,806, respectively

 

 

113,085

 

 

 

101,035

 

Employee and other receivables

 

 

338

 

 

 

635

 

Income tax deposit

 

 

616

 

 

 

1,525

 

Prepaid expenses and other current assets

 

 

2,414

 

 

 

5,410

 

Total current assets

 

 

124,716

 

 

 

113,373

 

 

 

 

 

 

 

 

 

 

Technology and equipment, net

 

 

12,653

 

 

 

12,453

 

 

 

 

 

 

 

 

 

 

Acquired intangibles, net

 

 

67,833

 

 

 

71,941

 

Goodwill

 

 

62,888

 

 

 

62,888

 

Deposits and other assets

 

 

2,780

 

 

 

2,814

 

Total long-term assets

 

 

133,501

 

 

 

137,643

 

Total assets

 

$

270,870

 

 

$

263,469

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued transportation costs

 

$

81,254

 

 

$

75,071

 

Commissions payable

 

 

13,223

 

 

 

8,280

 

Other accrued costs

 

 

4,054

 

 

 

5,331

 

Due to former shareholders of acquired operations

 

 

 

 

 

50

 

Current portion of notes payable

 

 

2,406

 

 

 

2,416

 

Current portion of contingent consideration

 

 

3,279

 

 

 

3,387

 

Current portion of transition and lease termination liability

 

 

1,571

 

 

 

1,838

 

Other current liabilities

 

 

106

 

 

 

138

 

Total current liabilities

 

 

105,893

 

 

 

96,511

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

26,058

 

 

 

28,903

 

Contingent consideration, net of current portion

 

 

1,391

 

 

 

4,098

 

Transition and lease termination liability, net of current portion

 

 

384

 

 

 

658

 

Deferred rent liability

 

 

902

 

 

 

851

 

Deferred tax liability

 

 

11,984

 

 

 

12,525

 

Other long-term liabilities

 

 

746

 

 

 

742

 

Total long-term liabilities

 

 

41,465

 

 

 

47,777

 

Total liabilities

 

 

147,358

 

 

 

144,288

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 shares authorized; 839,200 shares issued and

   outstanding, liquidation preference of $20,980

 

 

1

 

 

 

1

 

Common stock, $0.001 par value, 100,000,000 shares authorized; 48,893,755 and 48,857,506

   shares issued, and 48,801,957 and 48,857,506 shares outstanding, respectively

 

 

30

 

 

 

30

 

Additional paid-in capital

 

 

115,000

 

 

 

114,392

 

Treasury stock, at cost, 91,798 and 0 shares, respectively

 

 

(253

)

 

 

 

Deferred compensation

 

 

 

 

 

(1

)

Retained earnings

 

 

8,030

 

 

 

4,581

 

Accumulated other comprehensive income

 

 

638

 

 

 

98

 

Total Radiant Logistics, Inc. stockholders’ equity

 

 

123,446

 

 

 

119,101

 

Non-controlling interest

 

 

66

 

 

 

80

 

Total stockholders’ equity

 

 

123,512

 

 

 

119,181

 

Total liabilities and stockholders’ equity

 

$

270,870

 

 

$

263,469

 

 

4


RADIANT LOGISTICS, INC.

Consolidated Statements of Operations and Comprehensive Income (Loss)

 

(In thousands, except share and per share data)

 

Three Months Ended December 31,

 

 

Six Months Ended December 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenues

 

$

198,881

 

 

$

206,322

 

 

$

394,014

 

 

$

421,817

 

Cost of transportation

 

 

148,757

 

 

 

158,726

 

 

 

294,881

 

 

 

323,508

 

Net revenues

 

 

50,124

 

 

 

47,596

 

 

 

99,133

 

 

 

98,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating partner commissions

 

 

22,957

 

 

 

21,691

 

 

 

46,308

 

 

 

43,989

 

Personnel costs

 

 

12,954

 

 

 

13,279

 

 

 

25,732

 

 

 

27,722

 

Selling, general and administrative expenses

 

 

5,569

 

 

 

6,629

 

 

 

11,350

 

 

 

13,092

 

Depreciation and amortization

 

 

3,028

 

 

 

3,119

 

 

 

6,034

 

 

 

6,224

 

Transition and lease termination costs

 

 

385

 

 

 

1,157

 

 

 

862

 

 

 

4,320

 

Impairment of acquired intangible assets

 

 

 

 

 

3,680

 

 

 

 

 

 

3,680

 

Change in contingent consideration

 

 

806

 

 

 

598

 

 

 

1,056

 

 

 

186

 

Total operating expenses

 

 

45,699

 

 

 

50,153

 

 

 

91,342

 

 

 

99,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

4,425

 

 

 

(2,557

)

 

 

7,791

 

 

 

(904

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

6

 

 

 

8

 

 

 

11

 

 

 

14

 

Interest expense

 

 

(620

)

 

 

(1,318

)

 

 

(1,259

)

 

 

(2,735

)

Foreign exchange gain

 

 

188

 

 

 

218

 

 

 

388

 

 

 

469

 

Other

 

 

116

 

 

 

24

 

 

 

310

 

 

 

119

 

Total other expense:

 

 

(310

)

 

 

(1,068

)

 

 

(550

)

 

 

(2,133

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

 

4,115

 

 

 

(3,625

)

 

 

7,241

 

 

 

(3,037

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

 

(1,489

)

 

 

1,628

 

 

 

(2,741

)

 

 

1,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

2,626

 

 

 

(1,997

)

 

 

4,500

 

 

 

(1,643

)

Less: Net income attributable to non-controlling interest

 

 

(16

)

 

 

(19

)

 

 

(28

)

 

 

(34

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Radiant Logistics, Inc.

 

 

2,610

 

 

 

(2,016

)

 

 

4,472

 

 

 

(1,677

)

Less: Preferred stock dividends

 

 

(511

)

 

 

(511

)

 

 

(1,023

)

 

 

(1,023

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

 

$

2,099

 

 

$

(2,527

)

 

$

3,449

 

 

$

(2,700

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain

 

 

317

 

 

 

566

 

 

 

540

 

 

 

1,422

 

Comprehensive income (loss)

 

$

2,416

 

 

$

(1,961

)

 

$

3,989

 

 

$

(1,278

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share - basic and diluted

 

$

0.04

 

 

$

(0.05

)

 

$

0.07

 

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

 

48,789,684

 

 

 

48,732,762

 

 

 

48,825,598

 

 

 

48,054,100

 

Diluted shares

 

 

49,799,686

 

 

 

48,732,762

 

 

 

49,667,041

 

 

 

48,054,100

 

 

5


RADIANT LOGISTICS, INC.

Reconciliation of Net Income to Adjusted Net Income, EBITDA,
Adjusted EBITDA and Normalized Adjusted EBITDA

(unaudited)

As used in this report, Adjusted Net Income, EBITDA, Adjusted EBITDA and Normalized Adjusted EBITDA are not measures of financial performance or liquidity under United States Generally Accepted Accounting Principles (“GAAP”). Adjusted Net Income, EBITDA, Adjusted EBITDA and Normalized Adjusted EBITDA are presented herein because they are important metrics used by management to evaluate and understand the performance of the ongoing operations of Radiant’s business. For Adjusted Net Income, management uses a 36% tax rate for calculating the provision for income taxes before preferred dividend requirement to normalize Radiant’s tax rate to that of its competitors and to compare Radiant’s reporting periods with different effective tax rates. In addition, in arriving at Adjusted Net Income, the Company adjusts for certain non-cash charges and significant items that are not part of regular operating activities. These adjustments include depreciation and amortization, change in contingent consideration, amortization of loan fees, write-off of loan fees, impairment of acquired intangible assets, acquisition related costs, transition costs, lease termination costs, legal costs and non-recurring costs.

Adjusted EBITDA means earnings before preferred stock dividends, interest, income taxes, depreciation and amortization, which is then further adjusted for changes in contingent consideration, expenses specifically attributable to acquisitions, lease termination costs, extraordinary items, share-based compensation expense, legal costs, non-recurring costs, write off of loan fees, impairment of acquired intangible assets and foreign exchange losses or gains. Normalized Adjusted EBITDA represents the Adjusted EBITDA but also adds back transition costs associated with the SBA back-office that is projected to be eliminated.

We believe that these non-GAAP financial measures, as presented, represent a useful method of assessing the performance of our operating activities, as they reflect our earnings trends without the impact of certain non-cash charges and other non-recurring charges. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations to allow a comparison to other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. However, these non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. Adjusted Net Income, EBITDA, Adjusted EBITDA and Normalized Adjusted EBITDA should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Radiant’s operating performance or liquidity.

 

 

Three Months Ended December 31,

 

 

Six Months Ended December 31,

 

Reconciliation of net income (loss) to adjusted net income:

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income (loss) attributable to common stockholders

 

$

2,099

 

 

$

(2,527

)

 

$

3,449

 

 

$

(2,700

)

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

1,489

 

 

 

(1,628

)

 

 

2,741

 

 

 

(1,394

)

Depreciation and amortization

 

 

3,028

 

 

 

3,119

 

 

 

6,034

 

 

 

6,224

 

Change in contingent consideration

 

 

806

 

 

 

598

 

 

 

1,056

 

 

 

186

 

Lease termination costs

 

 

22

 

 

 

49

 

 

 

25

 

 

 

2,107

 

Acquisition related costs

 

 

71

 

 

 

443

 

 

 

216

 

 

 

1,413

 

Legal costs

 

 

77

 

 

 

391

 

 

 

113

 

 

 

682

 

Non-recurring costs

 

 

8

 

 

 

56

 

 

 

14

 

 

 

105

 

Amortization of loan fees

 

 

79

 

 

 

100

 

 

 

159

 

 

 

201

 

Transition costs associated with acquisitions

 

 

363

 

 

 

737

 

 

 

836

 

 

 

1,378

 

Loss on impairment of acquired intangible assets

 

 

 

 

 

3,680

 

 

 

 

 

 

3,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income before income taxes

 

 

8,042

 

 

 

5,018

 

 

 

14,643

 

 

 

11,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes at 36% before preferred dividend

   requirement

 

 

(3,079

)

 

 

(1,990

)

 

 

(5,640

)

 

 

(4,646

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income

 

$

4,963

 

 

$

3,028

 

 

$

9,003

 

 

$

7,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per common share - basic and diluted

 

$

0.10

 

 

$

0.06

 

 

$

0.18

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

 

48,789,684

 

 

 

48,732,762

 

 

 

48,825,598

 

 

 

48,054,100

 

Diluted shares

 

 

49,799,686

 

 

 

48,732,762

 

 

 

49,667,041

 

 

 

48,054,100

 

6


 

 

Three Months Ended December 31,

 

 

Six Months Ended December 31,

 

Reconciliation of net income (loss) to normalized adjusted EBITDA

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income (loss) attributable to common stockholders

 

$

2,099

 

 

$

(2,527

)

 

$

3,449

 

 

$

(2,700

)

Preferred stock dividends

 

 

511

 

 

 

511

 

 

 

1,023

 

 

 

1,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Radiant Logistics, Inc.

 

 

2,610

 

 

 

(2,016

)

 

 

4,472

 

 

 

(1,677

)

Income tax expense (benefit)

 

 

1,489

 

 

 

(1,628

)

 

 

2,741

 

 

 

(1,394

)

Depreciation and amortization

 

 

3,028

 

 

 

3,119

 

 

 

6,034

 

 

 

6,224

 

Net interest expense

 

 

614

 

 

 

1,310

 

 

 

1,248

 

 

 

2,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

7,741

 

 

 

785

 

 

 

14,495

 

 

 

5,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

329

 

 

 

368

 

 

 

660

 

 

 

758

 

Change in contingent consideration

 

 

806

 

 

 

598

 

 

 

1,056

 

 

 

186

 

Acquisition related costs

 

 

71

 

 

 

443

 

 

 

216

 

 

 

1,413

 

Legal costs

 

 

77

 

 

 

391

 

 

 

113

 

 

 

682

 

Non-recurring costs

 

 

8

 

 

 

56

 

 

 

14

 

 

 

105

 

Lease termination costs

 

 

22

 

 

 

49

 

 

 

25

 

 

 

2,107

 

Loss on impairment of acquired intangible assets

 

 

 

 

 

3,680

 

 

 

 

 

 

3,680

 

Foreign exchange gain

 

 

(188

)

 

 

(218

)

 

 

(388

)

 

 

(469

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

8,866

 

 

 

6,152

 

 

 

16,191

 

 

 

14,336

 

Transition costs

 

 

363

 

 

 

737

 

 

 

818

 

 

 

1,378

 

Normalized adjusted EBITDA

 

$

9,229

 

 

$

6,889

 

 

$

17,009

 

 

$

15,714

 

Adjusted EBITDA as a % of Net Revenues

 

 

17.7

%

 

 

12.9

%

 

 

16.3

%

 

 

14.6

%

Normalized Adjusted EBITDA as a % of Net Revenues

 

 

18.4

%

 

 

14.5

%

 

 

17.2

%

 

 

16.0

%

 

7