• Revenue (Q2 2024): $264.5 million
• Net Income (Q2 2024): $6.467 million
• Net Income Increase (Q2 2024 vs. Q2 2023): 556.5%
• Adjusted Net Income (Q2 2024): $10.695 million
• Adjusted EBITDA (Q2 2024): $12.016 million
• Cash on Hand: Approximately $20 million
• Credit Facility: Untapped $200 million
• Revenue (6 months ended Dec 31, 2024): $468.1 million
• Net Income (6 months ended Dec 31, 2024): $9.843 million
• Adjusted Net Income (6 months ended Dec 31, 2024): $18.578 million
• Adjusted EBITDA (6 months ended Dec 31, 2024): $21.468 million

• Warning! GuruFocus has detected 6 Warning Signs with RLGT.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Radiant Logistics Inc (RLGT) reported a significant increase in net income for the quarter, with a 556.5% rise compared to the same period last year.
• The company achieved $12 million in adjusted EBITDA for the second fiscal quarter, reflecting strong financial performance.
• Radiant Logistics Inc (RLGT) maintains a strong balance sheet with approximately $20 million in cash and no meaningful debt.
• The company successfully completed strategic acquisitions, including Foundation Logistics, Focus Logistics, and TCD Transportation, enhancing its service offerings.
• Radiant Logistics Inc (RLGT) continues to support humanitarian projects, such as chartering flights to deliver IV fluids during national shortages, showcasing its commitment to social responsibility.

Negative Points

• The company anticipates near-term challenges due to market headwinds and recently introduced tariffs with China, Mexico, and Canada.
• Radiant Logistics Inc (RLGT) expects its slowest seasonal quarter ahead, which may impact financial performance.
• The logistics market remains tough, with aggressive pricing expectations from shippers, affecting profitability.
• There is uncertainty regarding the impact of tariffs on future operations, which could lead to further market disruptions.
• Currency fluctuations, particularly with the Canadian operation, could have a small impact on financial results.

Q & A Highlights

Q: Can you provide more detail on the outperformance in the December quarter? Was Hurricane Milton the primary driver? A: Yes, the diversity of our service offering and our involvement in initiatives around Hurricane Milton were significant drivers of our outperformance. We also saw a modest bump from pull-forward activities in anticipation of tariffs. However, the market remains challenging overall. - Bohn Crain, CEO

Q: Could you discuss the strategic rationale behind the acquisition of TCB and its expected impact on your business? A: TCB enhances our intermodal offering, particularly in the 40-foot space, complementing our existing 53-foot services. We anticipate $2 million to $3 million in incremental EBITDA from TCB. This acquisition aligns with our strategy to build a robust bimodal service offering. - Bohn Crain, CEO

Q: How are tariffs affecting your customs brokerage operations, and what is the size of this business? A: Our customs brokerage, rebranded as Radiant World Trade Services, is growing and provides strong advisory capabilities. We are leveraging technology acquired from Navigate to offer a comprehensive global trade management solution, which is a key growth area for us. - Bohn Crain, CEO

Q: Can you elaborate on the impact of recent acquisitions on your financials, particularly in terms of EBITDA contributions? A: Recent acquisitions, like TCB, have not yet fully reflected in our financials. On a same-store basis, we were relatively flat, with project opportunities lifting our numbers. We caution against assuming this quarter's results as a new run rate due to market headwinds. - Bohn Crain, CEO

Q: How do you view the current market conditions compared to last year, and what is your outlook? A: While the market remains soft, I am more bullish about our position and prospects. We have financial flexibility and exciting developments in our tech stack that differentiate us. Despite near-term challenges, I am optimistic about our growth potential. - Bohn Crain, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.