Radiant Logistics (NYSE:RLGT), 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, 2022, and that it will be filing 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, 2022 (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.
The financial results presented below for the quarterly period ended June 30, 2022, reflect the Company's preliminary, unaudited results of operations as of the date of this press release. These preliminary unaudited results may be subject to change upon the completion of the reporting process and audit of the Company's full-year financial statements, and actual results may vary from these preliminary results. The preliminary unaudited results for the Company's fiscal fourth quarter ended June 30, 2022 are as follows:
Financial Highlights – Three Months Ended June 30, 2022 (Preliminary and Unaudited)
- Revenues increased to $398.6 million for the fourth fiscal quarter ended June 30, 2022, up $140.7 million or 54.6%, compared to revenues of $257.9 million for the comparable prior year period.
- Net revenues, a non-GAAP financial measure, increased to $88.5 million for the fourth fiscal quarter ended June 30, 2022, up $25.7 million or 40.9%, compared to net revenues of $62.8 million for the comparable prior year period.
- Net income attributable to Radiant Logistics, Inc. increased to $18.3 million for the fourth fiscal quarter ended June 30, 2022, or $0.37 per basic and $0.36 per fully diluted share, up $7.2 million or 64.9% compared to $11.1 million, or $0.22 per basic and $0.21 per fully diluted share for the comparable prior year period.
- Adjusted net income, a non-GAAP financial measure, increased to $20.2 million, or $0.41 per basic and $0.40 per fully diluted share for the fourth fiscal quarter ended June 30, 2022, up $10.1 million or 100.0%, compared to adjusted net income of $10.1 million, or $0.20 per basic and fully diluted share for the comparable prior year period. Adjusted net income is calculated by applying a normalized tax rate of 24.5% and excluding other items not considered part of regular operating activities.
- Adjusted EBITDA, a non-GAAP financial measure, increased to $27.7 million for the fourth fiscal quarter ended June 30, 2022, up $13.6 million or 96.5%, compared to adjusted EBITDA of $14.1 million for the comparable prior year period.
- Adjusted EBITDA margin (Adjusted EBITDA expressed as a percentage of net revenues), a non-GAAP financial measure, increased to 31.2% for the fourth fiscal quarter ended June 30, 2022, up 870 basis points, compared to Adjusted EBITDA margin of 22.5% for the comparable prior year period.
Recent Developments: Renewed Equity Shelf Registration Statement and Senior Credit Facility
On May 9, 2022, we announced that the Securities and Exchange Commission (SEC) had declared effective our $150 million universal shelf registration statement on Form S-3. The registration statement replaced our previous $100 million universal shelf registration that recently expired and provides us with the continued financial flexibility to access capital to support and accelerate our growth strategy should the opportunity present itself. Our willingness and ability to raise capital under the Form S-3 will depend upon a number of circumstances, including our need for additional capital to fund operations, organic growth or acquisitions, our financial and operating performance and the receptiveness of the capital markets to potential offerings by us.
On August 8, 2022, we also announced that we had secured a new $200 million syndicated secured revolving credit facility (the "Secured Facility") to replace our existing $150 million revolving facility. Under the terms of the new Secured Facility, we may borrow up to $200 million, subject to compliance with customary and standard financial coverage covenants and ratios. Included within the Secured facility is an accordion feature for an additional $75 million to support future acquisition opportunities. Borrowings under the Secured Facility accrue interest at either the Lenders' base rate plus 0.50% or SOFR plus 1.40%, and can be subsequently adjusted based on the Company's consolidated net leverage ratio, at either the Lenders' base rate plus 0.50% to 1.50% or SOFR plus 1.40% to 2.40, The Secured Facility enhances our financial flexibility, providing increased capacity to fund future acquisitions, capital expenditures or for other corporate purposes, including, if warranted at the time, the repurchase of the Company's common stock.
CEO Bohn Crain comments on preliminary results, and the delayed filing of the Company's 10-K
"We are very pleased to have finished out the year on a strong note reporting $27.7 million in Adjusted EBITDA on $398.6 million in revenues on a preliminary basis for our fourth quarter ended June 30, 2022," said Bohn Crain, Founder and CEO of Radiant Logistics. "These record results are a direct reflection of the dedication and hard work of our employees and operating partners, the diversity of our service offerings, and durability of our scalable non-asset based business model in what has been a challenging market environment. Driven first by the pandemic and associated lockdowns of 2020, we were all reminded of the essential role of transportation and logistics in keeping our economy moving. For us, this translated into the opportunity for us to play 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. As the economy worked to recover from those initial lock-downs, we were presented with a different set of challenges (and opportunities) as we were able to help our broader customer base bring their supply-chains back online in the face of an extreme shortage of transportation capacity, soring fuel prices and port congestion. Through it all, our business has remained quite strong across our various service offerings and our efforts to bundle value-added services with our core transportation service offerings continue to deliver great results in both the U.S. and Canada.
Over the past several months we also took the opportunity to refresh and expand both our equity shelf registration statement and senior credit facility. We replaced our previous $100 million universal shelf registration that had recently expired with a new $150 million facility and replaced our $150 million senior credit facility with a new $200 million facility. These facilities provide us with continued financial flexibility to access capital to support and accelerate our growth strategy, as well as the ability to repurchase the Company's common stock, should we choose.
While we remain very optimistic about our prospects and opportunities for fiscal 2023 and beyond, the continued uncertainty associated with the lingering pandemic and the current global geopolitical turmoil makes it difficult to project what the "new normal" will look like in fiscal 2023 for our customers and in turn our own business. We are now starting to experience the ripple effect of these global dynamics in the form of inflation, broad-based labor shortages and signs of a slowing economy that is eroding the pricing power of the asset-based carriers. If these market trends continue as they are now, we would expect operations to return to more normalized levels and growth rates. Whatever comes next, we are ready with a durable, diverse service offering and strong balance sheet to support our customers."
Crain continued: "As a Board and a leadership team we take our public reporting responsibilities seriously and are very disappointed with the delay in the filing of our 10-K. We are working hard to wrap up this effort, 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."