Radiant Logistics announced Thursday it has once again delayed financial reporting as it continues the process of restating prior results. The issues stem from inaccurate timing of revenue recognition for in-transit shipments and related expenses.
The Renton, Washington-based 3PL’s latest extension includes the fiscal 2023 second quarter (ended Dec. 31). The company has been unable to file annual results for fiscal 2022 (ended June 30) as it works to restate results from fiscal years 2021 and 2022. It can’t file fiscal 2023 numbers until prior periods are submitted.
Radiant (NYSE: RLGT) said in November it expected the process to be completed by the end of the year, when submitting a late-filing notice for the fiscal 2023 first quarter. No definitive completion date was provided in the latest update, only a statement saying it expects to bring all financial filings current “within the near term.”
“We are working with our auditors as expeditiously as the process will accommodate, to restate certain historic financial statements and bring current other historic financial statements, covering the Restatement Periods; principally to address issues related to the timing of recognition of the Company’s estimated accrual of in-transit revenues and related costs,” Bohn Crain, founder and CEO, stated in a news release.
Radiant maintains there will be little net effect to prior results. It estimates earnings per share will move from 45 cents to 44 cents for fiscal year 2021, with the first three quarters of fiscal 2022 also declining 1 cent to 55 cents.
“Through this period, we continue to refine our accounting for in transit revenues, a process which was made more challenging by the protracted transit periods for ocean shipments during COVID,” Crain said.
The company provided preliminary results for the fiscal second quarter, which included revenue of $283.5 million, a 26.5% adjusted net revenue margin and adjusted EPS of 26 cents. The company generated $42.3 million in cash from operations. It ended the period with cash on hand exceeding debt by $10.1 million, the first time the company has had a net cash position.
During the quarter, Radiant continued to deploy cash by repurchasing $3.7 million in stock and acquiring longtime operating partner Cascade Enterprises.
“As we have previously discussed, while we remain very optimistic about our prospects for fiscal 2023 and beyond, we are definitely seeing signs of a slowing economy and expect operations to return to more normalized levels and growth rates in coming quarters,” Crain stated.
Shares of RLGT were down 1.6% at 10:33 a.m. EST Friday compared to the S&P 500, which was down 0.1%.
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