• DTS.USA
    5.811
    -0.009
    -0.2%
  • NTI.USA
    2.860
    0.000
    0%
  • NTID.USA
    2.900
    0.060
    2.1%
  • NTIDL.USA
    2.000
    0.060
    3.1%
  • OTRI.USA
    8.180
    0.090
    1.1%
  • OTVI.USA
    12,818.890
    -172.860
    -1.3%
  • DTS.USA
    5.811
    -0.009
    -0.2%
  • NTI.USA
    2.860
    0.000
    0%
  • NTID.USA
    2.900
    0.060
    2.1%
  • NTIDL.USA
    2.000
    0.060
    3.1%
  • OTRI.USA
    8.180
    0.090
    1.1%
  • OTVI.USA
    12,818.890
    -172.860
    -1.3%
Company earningsLogisticsNewsTrucking

Radiant Logistics chats value creation on earnings call

FQ2 results beat expectations again

Management from Radiant Logistics fielded questions from analysts and investors most concerned with the company’s low valuation on a Monday call after the market closed. The stock has been largely range-bound in recent years even as its earnings have grown fivefold.

The third-party logistics provider reported adjusted earnings per share of 24 cents for the fiscal second quarter ended Dec. 31. The result was ahead of a range of consensus estimates between 12 cents and 14 cents and the year-ago result of 17 cents.

The adjusted result excluded costs associated with a December ransomware event (approximately $750,000) and deal costs from its acquisition of Navegate, a global digital freight management platform specializing in customs brokerage, freight forwarding and truck brokerage.

The adjustments also included a normalized tax rate of 24.5%, 290 basis points lower than the one recorded in the period. Navegate is headquartered near Minneapolis-St. Paul and pays a higher state income tax rate than the rest of the Radiant platform.

“We’re trying to continue to create shareholder value executing our strategy,” Bohn Crain, founder and CEO, said on the call. “We haven’t been rewarded the way that we would like to be. That creates its own frustrations and its own opportunities.”

Shares of RLGT, which trade at 7 times on an enterprise value-to-adjusted earnings before interest, taxes, depreciation and amortization basis, pale in comparison to Pilot Freight Services, which shipping line Maersk acquired at a 13.8x EV/EBITDA multiple on Wednesday.

Crain said the company remains focused on repurchasing its stock, which “does not accurately reflect Radiant’s (NYSE: RLGT) intrinsic value or long-term growth prospects” as well as acquisitions as a means of boosting value.

Radiant’s revenue increased 52.1% year-over-year to $332.8 million in the quarter. The result included one month of contribution from Navegate, which reported annual revenue of $87.5 million for the 12-month period ending Sept. 30.

Net revenue of $71.6 million was 29.5% higher year-over-year, however the margin dipped 380 bps to 21.5%. Higher third-party transportation expenses in a capacity-constrained freight market were the culprit.

Crain said the company is comfortable with debt leverage of 2.5x EBITDA even though financial covenants allow for 3x. Radiant ended the quarter with debt leverage of 1.4x.

It’s not just about M&A and share repurchases.

Organic opportunities should drive gross margin dollar growth in the 4% to 6% range “conservatively,” with EBITDA growth in the 8% to 12% range.

Table: Radiant’s key performance indicators

Click for more FreightWaves articles by Todd Maiden.

Watch: Carrier Update – Global Supply Chain Week, Day 1

The FREIGHTWAVES TOP 500 For-Hire Carriers list includes Universal Logistics (No. 23) and Forward Air (No. 37).

Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.

One Comment

  1. 𝐅𝐢𝐧𝐝 𝐔𝐒𝐀 𝐎𝐧𝐥𝐢𝐧𝐞 𝐉𝐨𝐛𝐬 (💵𝟖𝟎𝟎𝟎£-💵𝟗𝟓𝟎𝟎𝟎£ 𝐖𝐞𝐞𝐤𝐥𝐲) 𝐬𝐚𝐟𝐞 𝐚𝐧𝐝 𝐬𝐞𝐜𝐮𝐫𝐞!! 𝐄𝐚𝐬𝐲 𝐀𝐜𝐜𝐞𝐬 𝐓𝐨 𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧. 𝐒𝐢𝐦𝐩𝐥𝐞 𝐢𝐧 𝐮𝐬𝐞. 𝐀𝐥𝐥 𝐭𝐡𝐞 𝐀𝐧𝐬𝐰𝐞𝐫𝐬. 𝐌𝐮𝐥𝐭𝐢𝐩𝐥𝐞 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐜𝐨𝐦𝐛𝐢𝐧𝐞𝐝. 𝐅𝐚𝐬𝐭 𝐚𝐧𝐝 𝐭𝐫𝐮𝐬𝐭𝐞𝐝. 𝐃𝐢𝐬𝐜𝐨𝐯𝐞𝐫 𝐬𝐮𝐬 𝐧𝐨𝐰! 𝐄𝐚𝐬𝐲 & 𝐅𝐚𝐬𝐭, 𝟗𝟗% 𝐌𝐚𝐭𝐜𝐡.. 𝐨𝐩𝐞𝐧 𝐭𝐡𝐢𝐬 𝐬𝐢𝐭𝐞 .…………>>𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐟𝐮𝐥𝐣𝐨𝐛𝐳.𝐜𝐨𝐦