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Radiant Logistics says late filing tied to restatement of financials

Inaccurate timing of revenue, expenses results in 2% reduction to FY2021 net income

Radiant Logistics has delayed its annual 10-K filing in each of the last three years. (Photo: Jim Allen/FreightWaves)

In a Tuesday filing with the Securities and Exchange Commission, Radiant Logistics said its delayed annual 10-K filing is related to the need to restate financial results for periods in fiscal years 2021 and 2022.

The Renton, Washington-based 3PL also said it had received a notice from NYSE Regulation staff last Thursday that it was “not in compliance with the Exchange’s continued listing standards … given the Company failed to timely file its Form 10-K for the fiscal year ended June 30, 2022.” However, once the report is filed, “the delinquency will be cured.”

Radiant (NYSE: RLGT) previously filed a 15-day extension with the SEC on Sept. 13 saying it required additional time to file its 2022 fiscal year results. However, the Tuesday filing said the company was evaluating the timing of “in-transit accrued revenues and related costs” for prior and current financial periods.

The filing said the company discovered a mistake when prepping fiscal 2022 financial statements and while it was performing a “lookback analysis” into a December cyber event. Radiant compared estimated purchased transportation and commission expenses to the actual invoices, finding “differences between the estimated accrued amounts and the actual revenues and expenses recorded due primarily to errors in the underlying shipment information that was used to calculate the original estimates of the accrued amounts.”

The company “inadvertently excluded certain in-transit revenues and associated costs from the appropriate periods as required under applicable accounting guidelines.”

Radiant’s board and its current and previous independent accounting firms agreed that quarterly and annual financial statements for fiscal year 2021 and quarterly results during fiscal year 2022 should be restated. The company is also in the process of reviewing fiscal year 2020 results for errors.

The changes appear to be minor.

For fiscal year 2021, revenue and operating expenses were both understated by similar amounts, causing net income of $22.9 million to be overstated between $400,000 and $500,000. Adjusted earnings before interest, taxes, depreciation and amortization of $48.8 million was overstated by $500,000 to $700,000.

Assets and liabilities were also understated by similar and offsetting amounts. 

Radiant expects to complete its fiscal 2022 filing within the next 30 days.

The filing didn’t show anticipated restatements for the first three fiscal quarters of 2022 as an auditor’s opinion was not yet available, according to a representative with the company. 

In a separate news release on Sept. 13, the company provided preliminary fiscal fourth quarter 2022 results. For the quarter ended June 30, revenue increased 54.6% year over year to nearly $400 million and adjusted net income doubled to $20.2 million.

Radiant has now delayed its annual filing in three consecutive years. A year ago, it was looking into financial practices used for revenue recognition and the way it calculates agent commissions, but no adjustments to prior results were expected. In 2020, the delay was caused by employees working from home during COVID.

Shares of RLGT were off 0.2% Wednesday at 2:51 p.m. EDT compared to the S&P 500, which was off 0.1%.

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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.