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Mar 31, 2023
Radiant Logistics Q3 2023 Earnings Report
Radiant Logistics' Q3 2023 earnings were impacted by macro-economic trends in the transportation industry but showed improvement over the comparable pre-pandemic period.
Key Takeaways
Radiant Logistics reported a decrease in revenue and net income for the third quarter of fiscal year 2023, impacted by softening freight markets, though results remained ahead of pre-pandemic levels. The company is in a strong financial position with significant cash from operations and is continuing its stock buy-back program.
Revenues decreased by 44.7% year-over-year to $244.2 million, but increased 18.5% compared to the pre-pandemic quarter in 2019.
Net income attributable to Radiant Logistics, Inc. decreased by 69.1% year-over-year to $4.2 million, or $0.08 per fully diluted share.
Adjusted EBITDA decreased by 48.7% year-over-year to $11.6 million.
The company purchased 839,864 shares of its common stock at an average cost of $5.95 per share for an aggregate cost of $5.0 million during the nine months ended March 31, 2023.
Radiant Logistics
Radiant Logistics
Forward Guidance
Radiant Logistics expects markets to normalize over the balance of calendar year 2023, and the company will continue its balanced approach to capital allocation through agent station conversions, synergistic tuck‑in acquisitions, and stock buy‑backs.
Positive Outlook
- Markets are expected to begin to normalize over the balance of calendar year 2023.
- Disciplined approach to capital allocation and low leverage continues to serve the company well.
- The company is in the strongest financial position in its history.
- The company generated over $76.1 million in cash from operations through the nine months ended March 31, 2023.
- The company remains virtually debt free with negative net debt of $17.0 million as of March 31, 2023.
Challenges Ahead
- Results for the March quarter were heavily impacted by the rapid softening of the freight markets.
- Volatility in the market is unprecedented.
- Ocean imports and intermodal/truck brokerage operations have been particularly hard hit.
- Shippers are continuing to manage through elevated inventories, reduced imports and slowing economic growth.
- The balance of supply and demand has shifted from a tight market a year ago to one that is now oversupplied.