Radiant Logistics, Inc. (AMEX:RLGT) Q2 2024 Earnings Call Transcript February 8, 2024
Radiant Logistics, Inc. beats earnings expectations. Reported EPS is $0.11, expectations were $0.09. RLGT isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, everyone. This afternoon, Bohn Crain, Radiant Logistics Founder and CEO; and Radiant's Chief Financial Officer, Todd Macomber will provide a general business update and discuss financial results for the company's second fiscal quarter and six months ended December 31, 2023. Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The company has based these forward-looking statements on its current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the company that may cause the company's actual results or achievements to be materially different from the results or achievements expressed or implied by such forward-looking statements.
While it is impossible to identify all the factors that may cause the company's actual results or achievements to differ materially from those set forth in our forward-looking statements. Such factors include those that have in the past and may in the future be identified in the company's SEC filings and other public announcements, which are available on the Radiant website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now, I'd like to pass the call over to Radiant's Founder and CEO, Bohn Crain. Sir, the floor is yours.
Bohn Crain: Thank you, Alex. Good afternoon, everyone, and thank you for joining in on today's call. Our results for the quarter ended December 31, 2023, continue to reflect the difficult freight markets being experienced by the entire industry as well as our operations. This extended period of weak freight demand combined with excess capacity continues to negatively impact not only our current results but also the year-over-year comparison to our record results for the prior year period. With that said, we remain optimistic that we are at or near the bottom of the cycle and we would expect markets to begin to find their way to more sustainable and normalized levels towards the back half of calendar 2024. Notwithstanding the tough year-over-year comparisons, we continue to deliver meaningfully positive results and have generated $16.9 million in adjusted EBITDA and $12.1 million in cash from operations for the six months ended December 31, 2023.
In addition, we continue to enjoy a strong balance sheet, finishing the quarter with approximately $33 million of cash on hand and nothing drawn on our $200 million credit facility. As previously discussed, we believe we are well positioned to navigate through these slower freight markets. As we find our way back to more normalized market conditions. At the same time, we remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully re-levering our balance sheet through a combination of Asian station conversions, synergistic tuck-in acquisitions and stock buybacks. Through this approach, we believe, over time, we will continue to deliver meaningful value for our shareholders, operating partners, and the end customers that we serve.
A fleet of trucks on a highway, transporting goods for the company.
In this regard, we are very excited about our recent agent station conversions with the acquisition of Delray and the select businesses which will combine, solidify our offering in support of the cruise line industry in South Florida. We launched Radiant in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition and the built-in exit strategy available to the entrepreneurs participating in our network. We believe these two transactions are representative of a broader pipeline of opportunities inherent in our agent-based network and we look forward to supporting other strategic operating partners when they are ready to begin their transition from an agency to company-owned location. With that said, I'll now turn it over to Todd Macomber, our CFO to walk us through our detailed financial results and then we'll open it up for some Q&A.
Todd Macomber: Thanks, Bohn and good afternoon everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and six months ended December 31, 2023. For the three months ended December 31, 2023, we reported net income attributable to Radiant Logistics of $985000 on $201 point million [ph] of revenues or $0.02 per basic and diluted share. For the three months ended December 31, 2022, we reported net income attributable to Radiant Logistics of $4.836 million on $278.1 million of revenues or $0.10 per basic and diluted share. This represents a decrease of approximately $3.851 million of net income over the comparable prior year period or 79.6%. For adjusted net income, we reported $5.496 million for the three months ended December 31, 2023 compared to adjusted net income of $11.142 million for the three months ended December 31, 2022.
This represents a decrease of approximately $5.646 million or approximately 50.7%. For adjusted EBITDA, we reported $7.708 million for the three months ended December 31, 2023 compared to adjusted EBITDA of $16.203 million for the three months ended December 31, 2022. This represents a decrease of approximately $8.495 million or approximately 52.4%. Moving along to the six-month results. For the six months ended December 31, 2023, we reported net income attributable to Radiant Logistics of $3.607 million on $411.9 million of revenues or $0.08 per basic and $0.07 per full diluted share. For the six months ended December 31, 2022, we reported net income attributable to Reading Logistics of $13.269 million from $609.1 million of revenues or $0.27 per basic and fully diluted share.
This represents a decrease of approximately $9.662 million over the comparable prior year period or 72.8%. For adjusted net income, we reported $12.46 million for the six months ended December 31, 2023 compared to adjusted net income of $24.621 million for the six months ended December 31, 2022. This represents a decrease of approximately $12.575 million or approximately 51.1%. For adjusted EBITDA, we reported $16.873 million for the six months ended December 31, 2023 compared to adjusted EBITDA of $34.871 million for the six months ended December 31, 2022. This represents a decrease of approximately $17.998 million or approximately 51.6%. With that I will turn the call back over to our moderator to facilitate any Q&A from our callers.
Operator: Thank you. [Operator Instructions] Our first question is coming from Jason Seidl with TD Cowen. Your line is open
