Radiant Logistics posts Q2 loss despite nearly doubling revenues

The Bellevue, Wash.-based third-party logistics provider reported a $2.5 million loss in its second fiscal quarter, ended Dec. 31, 2015, despite revenues soaring 95.3 percent year-over-year to $207.0 million.    Radiant Logistics, Inc. posted a $2.5 million loss in its second fiscal quarter of 2016, ended Dec. 31, 2015, despite nearly doubling its revenues from the same 2014 period, according to the company’s latest financial statements.
   Second quarter revenues at the Bellevue, Wash.-based third-party logistics provider soared 95.3 percent to $207.0 million compared to the three months ended Dec. 31, 2014.
   The net loss, which included a $2.2 million net non-recurring non-cash impairment in connection with Radiant’s acquisition of On Time Express Inc. (OTE), was equal to $0.05 per basic and fully diluted share, down from $0.01 per basic and fully diluted share the previous year.
   During the quarter, Radiant completed its acquisition of Copper Logistics, Inc., a Minneapolis, Minn.-based domestic and international transportation and logistics services provider. And on Jan. 7, 2016, the company announced a stock buyback program for up to five million shares through Dec. 31, 2016. As of Dec. 31, 2015, Radiant had 48,743,581 outstanding shares of common stock.
   “We are very pleased to report record results for the quarter ended December 31, 2015 and our continuing trend of profitable growth,” Radiant Founder and CEO Bohn Crain said of the results.
   “We also continue to make good progress in leveraging our personnel and general administrative costs as a function of our net revenues with our adjusted EBITDA (normalized to exclude the non-recurring transitions costs associated with the operation of Service by Air’s back-office operations), as a percentage of net revenues, improving 100 basis points from 13.5% to 14.5% for the comparable prior year period,” he added. “In addition, we also reported record cash from operations for the six months ended December 31, 2015 of $15.7 million.”
   Crain said the quarterly results were tempered by “isolated challenges” the company encountered with its purchase and integration of OTE.
   “Excluding OTE’s adjusted EBITDA loss of $473,000, we would have reported normalized adjusted EBITDA of $7,362,000 for the quarter ended December 31, 2015,” he said. “We have moved aggressively to right-size the organization and we expect OTE to return to profitability over the second half of our fiscal year ended June 30, 2016.”
   Looking forward to the rest of fiscal 2016, Crain said the company sees economic uncertainty that could challenge results, but that Radiant is in a good financial position to weather the potential storm.
   “We also remain committed to our long standing strategy to deliver profitable growth through a combination of organic and acquisition growth initiatives,” he said. “On the acquisition side, we continue to focus on tuck-in acquisitions with a particular interest in buying agent station locations both inside and outside our network.”
   Crain reiterated previous projections for the full fiscal year results, though he did downgrade them slightly based on current market volatility.
   “With respect to our guidance for fiscal 2016 and assuming the economy continues to hold, we believe adjusted EBITDA in line with current consensus estimates of approximately $30.0 million is still achievable,” he said. “Given the possibility of further softening in the economy, we are updating our guidance to reflect adjusted EBITDA in the range of $28.0 – $30.0 million. Based on the recent deterioration in fuel price, which is generally a pass through in our business, we are also reducing our guidance for top line revenues to $836.0 – $852.0 million with net revenues of $188.8 – $192.4 million. This equates to adjusted net income attributable to common shareholders in the range of $9.9 – $11.2 million, or $0.20 – $0.23 per basic and fully diluted share.”