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Dec 31, 2023
Radiant Logistics Q2 2024 Earnings Report
Radiant Logistics delivered solid financial results amidst market headwinds, generated $12.1 million in cash from operations, and remained debt-free, positioning the company well for future growth.
Key Takeaways
Radiant Logistics reported a decrease in revenue to $201.1 million and a net income of $1.0 million, or $0.02 per share, for the second fiscal quarter ended December 31, 2023. The company continues to navigate difficult freight markets and remains optimistic about market normalization in the latter half of 2024.
Revenues decreased by 27.7% to $201.1 million compared to the prior year period.
Gross profit decreased by 16.7% to $58.8 million compared to the prior year period.
Net income attributable to Radiant Logistics, Inc. decreased to $1.0 million, or $0.02 per share.
Adjusted EBITDA decreased to $7.7 million compared to $16.2 million for the comparable prior year period.
Radiant Logistics
Radiant Logistics
Forward Guidance
Radiant Logistics expects markets to begin to find their way to more sustainable and normalized levels towards the back half of calendar 2024 and is focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully re-levering its balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buy-backs.
Positive Outlook
- Well positioned to navigate through slower freight markets as they find their way back to more normalized market conditions.
- Focused on delivering profitable growth through a combination of organic and acquisition initiatives.
- Thoughtfully re-levering balance sheet through a combination of agent station conversions, synergistic tuck-in acquisitions, and stock buy-backs.
- Recent agent station conversions with the acquisition of Daleray and the Select businesses which will combine to solidify offering in support of the cruise line industry in South Florida.
- 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 a company-owned location.
Challenges Ahead
- Difficult freight markets being experienced by the entire industry.
- Extended period of weak freight demand.
- Excess capacity continues to negatively impact current results.
- Year-over-year comparison to record results for prior year period.
- Potential adverse legal, reputational and financial effects on the Company resulting from the ransomware incident that we reported in December of 2021 or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents