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Air CargoCompany earningsIntermodalLogisticsNewsTrucking

Radiant Logistics’ protective equipment moves lead to record revenue

Fiscal fourth-quarter results handily outpace consensus

Third-party logistics and multimodal transportation provider Radiant Logistics Inc. (NYSE: RLGT) said record revenue growth in the fiscal fourth quarter was spurred along by its high involvement in moving humanitarian aid and personal protective equipment (PPE) via international air charter.

The increased airfreight moves led to record revenue in the quarter at $276 million but compressed margins as the shipment of masks and gowns carried a diminished profit profile. Net revenue declined 14% year-over-year to $50 million as purchased transportation expense increased 1,040 basis points as a percentage of revenue. The recent surge in trucking spot rates, as demand to replenish inventories spiked and capacity was tight, likely presented a margin headwind as well.

Founder and CEO Bohn Crain said on Radiant’s Monday earnings call the company is seeing strength in verticals like life sciences, food and beverage, and consumer-packaged goods. However, he said it remains to be seen what type of tail the shipment of PPE will have or the degree to which the company will be involved in distributing a COVID vaccine.

Radiant’s key performance indicators

The Bellevue, Washington-based company reported adjusted net income of $8.9 million, or 18 cents per share, in line with previously released preliminary results, which were well ahead of the original 2-cents-per-share consensus estimate. The quarter ended June 30.

The company filed for a 15-day extension for filing its annual form 10-k with the U.S. Securities and Exchange Commission due to delays associated with employees working from home during the pandemic.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $13 million was also a quarterly record for the company.

Crain said the company has seen continued improvement in recent months, allowing it to restore employee salaries and recall “many” furloughed employees. In addition to the cost reductions and liquidity preservation actions taken at the beginning of the pandemic, Crain said the company will begin to look at acquisitions again and revisit its recently suspended share repurchase program.

The cost actions allowed the company to reduce debt in the quarter. Radiant ended its fiscal year with $35 million in cash and net debt of $17 million, reducing its debt leverage to less than half of one turn of last 12 months’ EBITDA. Crain said the balance sheet provides “additional financial flexibility to navigate any further market weakness as well as the ability to pursue new acquisition opportunities into the future.”

Shares of RLGT are up more than 10% in after-hours trading.

Click for more FreightWaves articles by Todd Maiden.

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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.
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