Q1 2022 Radiant Logistics Inc Earnings Call
This afternoon Bohn Crain.
Radiant logistics, founder and CEO and Radians, Chief Financial Officer, Todd It May come back will discuss our financial results for the company's first fiscal quarter ended September 30th 2021.
Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes.
The conference call May include forward looking statements within the meaning of the Securities Act of $19 33, and the Securities Exchange Act of $19 34.
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 are.
<unk> expressed or implied by such forward looking statements pilot.
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 include those that have in the past and may in the future be identified in the company's SEC filings.
Other public announcements, which are available on the radiant website at www Dot radiant delivers dot com. In addition, the past results are not necessarily an indication of future performance now I'd like to pass the call over to <unk> founder and CEO John Crane the floor is yours.
Thank you good afternoon, everyone and thank you for joining in on today's call.
We are very pleased to continue our trend and report another quarter of record financial results for the September quarter.
We posted record revenues of $286 1 million up $110 2 million or 62, 6%.
Our record net revenues of $64 9 million up $18 9 million or 41, 1%.
Record net income of $7 1 million up $4 million or 129% record adjusted net income of $10 6 million up $4 1 million or 63, 1% and record adjusted EBITDA of $14 5 million up $5 3 million or 57, 6%.
In addition, we also saw improvement in our adjusted EBITDA margin, which increased 230 basis points to a record 22, 4%.
Up from 21% for the comparable prior year period.
These results reflect the benefit of our scalable non asset based business model diversity of our service offerings and our ability to quickly respond to the changing market dynamics.
Not only are we continuing to see solid recovery in our legacy business, but we are winning meaningful new business across the platform in the U S and Canada.
In addition, we continue to deliver these record results, while continuing to maintain very low leverage on our balance sheet.
As we've previously discussed we also believe that our current share price does not accurately reflect gradients intrinsic value our long term growth prospects, particularly given our unlevered balance sheet and therefore represents an excellent investment opportunity for both the company and our shareholders.
Well, we always have a fairly narrow trading window in our first fiscal quarter given the timing of our 10-K filings we were able to continue our stock buyback efforts and purchased approximately $1 $7 million of our stock during the quarter.
We also remain encouraged by our continued strong financial performance and the fact that we have now reported a record $54 $1 million and adjusted EBITDA for the trailing 12 months ended September 30.
Looking ahead, we believe we are well positioned to continue to support existing and new customers in what is proving to be a persistent capacity constrained market.
<unk> are strong our continued strong performance strong and strong balance sheet will begin to register with investors as we remain optimistic about our prospects and opportunities to continue to deliver profitable growth.
In the months ahead, we expect to continue to be active in our stock buyback activities and look forward to reactivating our acquisition efforts as the opportunity presents itself, but that I will turn it over to Todd <unk>, our CFO to walk us through our detailed financial results and then we'll open it up for some Q&A.
Thanks, Paul and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three months ended September 32021.
For the three months ended September 32021, we reported net income attributable to radiant logistics of 7 million to $79000 on $286 1 million of revenues for 2014.
For basic and fully diluted share.
For the three months ended September 32020.
Ported net income attributable to <unk> logistics of $3.088 million on $175 9 million of revenues were six per basic and fully diluted share.
This represents an increase of approximately $3 million 991000.
<unk> of net income over the comparable prior year period or 129, 2%.
For adjusted net income, we reported $10 million and $559000 for the three months ended September 32021.
For the three months ended September 32020.
Reported adjusted net income of $6 million $520000. This represents an increase of approximately $4 million $39000.
Approximately 61, 9%.
For adjusted EBITDA, we reported $14 million and $544000 for the three months ended September 32021 compared to adjusted EBITDA.
$9 million $226000 for the three months ended September 32020.
This represents an increase of five.
$5.318 million or approximately 57, 6%.
With that.
I will turn the call back over to our moderator to facilitate any Q&A from our callers.
Certainly the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time, we ask that Bob posing a question you. Please pickup your handset of listening on a speaker phone to provide optimum sound quality. Please hold a moment, while we poll for questions.
Your first question is coming from Mark Argento.
Please state your affiliation and pose your question.
Mark Your line is live.
Hi, Good afternoon can you hear me all right.
I apologize for that.
Yes.
Credibly strong quarter anything in particular.
Particular any parts of the business.
Indexing I know it seems like it's been pretty broad based.
I think you got it.
Yes could you shed a little light on what are you seeing some additional strength would be helpful. Thanks.
I think it's been positive really across the board virtually every category.
<unk> has seen good improvement.
In terms of kind of individual outperformers from a modality standpoint, probably are our ocean product has been the single biggest.
Biggest.
Improvement with everything going on all the constrained capacity port congestion.
A lot of shippers out there scrambling to find capacity in Portugal.
Fortunately, we've been in a position to kind of step in and and get opportunities to support customers, where they couldnt find capacity.
Allow us to kind of demonstrate some of our.
Our relationships in the marketplace to get things moving when sometimes they otherwise weren't getting service.
Great is that just.
Some of your key relationships that you have or how are you.
Well to kind of step in and provide that.
Such a tight market.
I think it's a combination.
Both servicing our existing customers, but this market.
Has created an opportunity for us too.
To get engaged with new look new customers new accounts that historically, we have not serviced.
But we've had an opportunity to begin to work with in this market environment. So part of what we're doing is trying to make sure. We do all we can to make sure.
The customers kind of stick with us after the firefight so to speak.
In terms of sourcing capacity.
Great and just last one on the buyback just remind us what you guys have left in terms of availability there.
I think we have quite a bit.
Hi, My remember it is I think we were authorized for up to 5 million shares correct.
We're fairly early into that and I believe the existing program actually.
Expires under its own terms as of the end of December So we will have to be refreshing.
Refreshing, yes, I think the availability is.
The $3 8 million shares or about left so.
There is.
Ample opportunity.
Great well.
Really impressive to see what you guys have been able to do given really.
Really tight situations out there in terms of availability so keep up the good work.
Hopefully a really good holiday as well thanks.
Thanks, Mark Thank you Mark.
Your next question is coming from David Cannon. Please.
Announce your affiliation and pose your question.
Okay.
Hi, good afternoon, guys congratulations great job.
Thank you.
You're very welcome.
So first question is on some of the new accounts that you've gotten into new customers that we're looking for excess capacity.
Do you have a deliberate.
King and plan to not only retain but too.
Augment the potential relationship and business going forward and if so.
Could you sketch that out for us a little bit some of the things that.
That youre doing.
Well I think we really are trying to.
It's not uncommon whenever you're kind of entering into a new count the first thing.
I'd give you is some of their difficult hard to handle.
<unk> or pieces of business that they're or otherwise struggling with.
With their incumbents.
You have to kind of cut your teeth and demonstrate your value I think this is just another example of that.
Sure.
And we're bearing.
Very well in that process.
And so.
I think.
Part of the Battle is just kind of getting engaged in having the opportunity to kind of demonstrate what you can do so.
There is no specific.
Plan per se other than to really stay engaged with the customers try to provide as much value and ultimately as much stickiness as we can through our technology and reporting tools and just demonstrated ability to get things done.
When others can't.
And we've seen this happen.
And a number of different scenarios.
Obvious for me is just thinking about all the work we did in and around FEMA and PPE and kind of the early days of Covid and how that has.
The credibility we gain through.
Our ability to execute in that environment has continued to kind of permeate.
Incremental and new business opportunities across the organization.
<unk>.
I view this as just another iteration of that same story.
Understood I mean, it shows through the numbers.
And then my next question is just the landscape in terms of M&A.
If you could just comment in a general way kind of where multiples.
Where deals.
If you were to be successful in finding the right partner, where you think stuff is trading right now in terms of EBITA.
Well I don't know how many potential sellers are on this call so I'll be.
Quite guarded.
In my comments, but but it's fair to say the market.
Remains robust.
I think we continue.
Hi.
To look at stock buybacks as an alternative allocation of capital relative to M&A.
And kind of the M&A incremental.
Strategic value to what we what we're doing.
But at least I guess give you some high level posted for the conversation.
David is a.
General rule of thumb.
Would expect companies doing 10 plus million of EBITDA to be.
Trading it.
Call, it plus or minus 10 times.
Normal market and I would say a company doing plus or minus $2 million of EBITDA to be trading at plus or minus five times in a normal market.
Now we can we can talk through many hours and several bottles of wine as to what a normal market is.
These days.
Because it's.
A complicated market environment to do M&A because of if one thing is for certain this market is not normal and a lot of different dimensions right now.
So it's.
With all that said.
<unk>.
Our kind of our baseline plan is to continue to take a balanced approach and deliver a combination of organic and acquisitive growth.
Along the way continue to do M&A through effectively kind.
Kind of a three prong strategy.
In.
I don't want to say, we will never do that.
A large transaction, but that is really not our principal focus we are really looking at these smaller.
Tuck in type acquisitions that.
That we can do and as we talked before.
That can take the form of conversions of existing agent stations to company owned stores.
Like I think it was February a year ago, where we acquired our agency station.
The owner who own DCA in Pittsburgh that we acquired in so we have our conversions of existing agency stations when they are ready.
As well as other kind of incremental standalone borders and Theres a lot of them out there.
That.
It would be available.
Yes, that's really helpful. Bob and I appreciate the fact that you recognize the value.
Inherent in our stock and are willing to buy it.
One thing that I would like to share with you.
As a friendly investor.
Wanting to see you guys be successful and be benefiting ask the shareholder is.
Two I wish you could buy a heck of a lot more stock and for example, my math is at even $8. A share you are buying your stock at seven times EBITDA, a significant discount to your peers and where M&A as you pointed out is occurring right now.
So obviously, it's very it's a nice arbitrage extremely accretive I would be willing as an investor and I am sure. There are people that share my sentiment too to purchase we managed fixed income portfolios I would love to do a preferred.
Words like lets use a lot of our cash okay, and then if an M&A opportunity comes up and you need cash and you've committed to buying back the common I'd give you money highly friendly terms I would say probably 7% on a preferred that ultimately you know that you can call in.
Once you start generating free cash flow again.
I've never negotiated a term sheet on an investor call, Dave but I.
I appreciate your offer.
Yeah, I mean, I would be willing to do that and I'm sure. There are other investors that's where the market is we do we're pretty active in fixed income I am just speaking generally and that's.
Obviously, it's not a term sheet got it I appreciate your light heartlessness about it but.
But I just.
If I value this thing.
Using like 50 $758 million of EBITDA, which it seems like youre well on track to meet or exceed and then even if I on the earn outs the contingent liability on the balance sheet earn outs to be paid.
If I use an enterprise value of $410 million, including that we're still at seven times EBITDA. So at a box.
It seems to make sense. So like some type of a tender I think would move the needle more and Thats my opinion.
I mean, not everyone is going to agree with it but I think it would yield us a better result, and just wanted to share with you that I'd be willing to.
Certainly.
Put money into a preferred so yes anyway.
Yes, and I appreciate that and.
In all seriousness.
There are certainly.
There are people.
Who have who have suggested tenders and strongly in favor some less so enthused about a tender, but there is general consensus broad based bio bipartisan consensus that our stock is really undervalued.
And we certainly recognize that and.
In one sense, it's frustrating in another sense as you're describing it's also an opportunity.
And we're.
We recognize it as such.
Begun putting capital to work and we expect to continue to do so.
Potentially.
Likely at a larger scale than what we have.
Sure.
Have done recently.
And as a quick background. We were we were active and we were beginning our stock buyback and then Covid hit so we had to hit pause because of the PPP loans and then ultimately we got.
Started again.
But this quarter, we literally only had light I think 10 days because of the timing of the queue. So we were very aggressive effectively buying all the stock that we technically could during the window that was allowed.
But we'll continue to.
To be good allocators of capital.
While preserving our financial flexibility to be actionable.
In terms of M&A opportunities, making good on our brand promise for exit strategies for our partners.
And making sure we have.
Dry powder to survive any other market anomalies that none of us see coming that might hit us in the head next week.
Yes.
Thank you for the context on the buyback and that it was only 10 days that that's helpful and I wish you continued.
Continued success and nice holidays. Thank you.
Thank you.
Your next question is coming from Elliot Alper, Please announce your affiliation and pose your question.
Great. Thanks.
Maybe on the freight forwarding side, and specifically Ocean and Air services I guess, given the tight capacity how are you and your customer is thinking about their supply chain differently have you seen any real shift in behavior over the past several months in this year.
Well capacity is tight I mean, everything is a firefight right now and and.
And what traditionally were easy moves.
I'm talking internationally Air and Ocean right now capacity is just tight so.
We're having the.
Kind of consistently and perpetually interrogate the market to find capacity.
Literally box by box.
For the benefit of our of our customers.
And.
It's certainly an interesting landscape.
It wasn't long ago people talked about this.
Environment is kind of.
Beginning to revert to the norm.
Around Chinese new year.
That conversation and that narrative has shifted I think everybody sees this.
Going deep into next year deep into calendar 'twenty two so.
The market remains Super tight obviously people are looking to to divert into air freight away promotion, where the price points of their products will allow that and kind of service.
Line requirements.
But it's.
There is there is no immediate end in sight and.
Capacity remains tight.
So in some of the new vaccine mandate dynamics that just is going to put even further constraints on drivers and seats potentially depending on how all that plays out.
And we can go right down the road chassis.
Drayage.
Theres virtually no second.
The supply chain, that's not under.
Fair amount of stress right now so that creates challenges.
But at the same time it also creates.
An opportunity for us to be really helpful.
To the customers that we serve.
Yes, definitely so I guess slightly differently as new customers come from the line and come onto the platform I guess, what are the biggest reasons that theyre coming to radio.
So I think thats a well.
<unk>.
Right now anybody who can source capacity, there's more freight and capacity. So if you can source capacity you can attractive rate so I think.
A real tactical answer is we're able to source capacity for our partners when they need it right. So that's fundamental.
While they're visiting we make sure to introduce them to our tech the robustness of our technology platform the competency of our teams.
To continue to.
<unk> tried to lay the foundation for our long term relationship.
Uh huh.
That they'll stick with us kind of beyond the current the current market dynamics, and we're and we're certainly seeing that play out and growing.
Not only our transactional business, but.
Thinking of Canada some of our.
Warehousing and kind of longer term contractual business opportunities that businesses zinging as well, so it's really hard to identify.
An area.
With the exception of cruise lines.
Yes.
Is proving to be.
Unfortunately, probably the absolute last industry vertical to recover.
Everything else is really zooming.
And again.
I mean.
Can't sit here and expect this to last in perpetuity, but it doesn't appear to be ending anytime soon.
Okay, great. Thank you and congrats on the quarter.
Okay.
Your next question is coming from Jeff Kauffman, Please announce your affiliation and pose your question.
Hey, guys vertical research partners.
Well first of all congratulations just terrific number.
But when you look out at the environment.
It's just crazy out there right now.
That's showing up in the net revenue margins right. So eventually we know that those are going to normalize but.
Do you feel that there is parts of the world.
Brokers are forwarders are over earning and that will normalize at some point in time or do you feel like we're at this new threshold, where these these prices sustain in the demand sustained.
Well I think everybody is over earning but radiant I think ours is going to.
Yeah.
I guess, you would say ocean is probably the biggest one or yes, yes.
Sure I mean, the kind of the container rates are kind of off the charts, which is.
Translated into some of the ocean lines, making more money than they've ever seen public in the history of their of their company. So.
It certainly is a very unusual market we would.
We would like to think it's going to revert to the norm, but I don't think but I don't know that its going to be the old norm I mean, I think it's going to revert to some norm, but I don't think its going to.
Kind of retraced back.
Pre COVID-19 levels there is too.
There's just.
<unk> two titers.
Longer path than I think any of us probably expected heading into this so so to your point when we go back to normal as can be a different normal yes.
What kinds of things are you being asked to do more by customers. These days that you weren't being asked 12 months ago outside of please help me I can't get things passed supports but.
Are there new industries, New services, new business lines that are coming to you as a result of what's going on.
I don't know that I wouldn't necessarily say new business lines and that we are very diversified.
Geography in service line.
So I wouldn't say, it's necessarily anything new although there are definitely categories, where we've done very well and whether it's the.
Thematise business or life Sciences, and testing type work.
But it's really across the board.
Some of some of the underlying one of our big underlying themes that we probably talked about before this notion of bundling value added services with the core transportation service offerings and whether that takes the form of contract logistics or customs house brokerage are kind of.
No more robust technology solutions.
All of those.
That theme is.
Underpinning a lot of what we do.
And it's.
And it's working.
Mmk and last question if.
If I heard you right the 5 million share authorization expires at year end. So you'll do what you can do opportunistically, but to buy additional shares after January you would need a new authorization.
Yeah, but that's relatively straightforward and effectively easily accomplished we just have to kind of.
Make a communication and get it out there so there's no real oops.
<unk> per se.
Other then we just need to refresh.
The relation to continue into the new year, which we fully expect to do.
Okay, well congratulations fantastic quarter. Thanks.
Your next question coming from <unk>.
Two minutes, please announce your affiliation and pose your question.
Thank you to which methods and case management and.
Good morning, good afternoon gentlemen.
Any new to this story and I would like to ask you a question on sort of your corporate internal priority, including things like.
Integration.
Tnn's acquire.
<unk>.
Investment into Canada.
Houses.
Where are you putting your internal focus from an operational perspective and trying to make this continuously have been accompanied.
[noise], so welcomed a radiant first.
We've been at this for Awhile now in the early days, we did a lot of.
Acquisitive growth.
And the Investor said, yes, that's all fine and well, but how about some organic growth bond I'm not seeing a lot of organic growth. So over the past several years, we've focused on one integrating the businesses that we had acquired in back in 2015, we acquired another public company called wheels that we ultimately rebrand.
Did his radiant, Canada, so we've been spending time, making sure.
To take the time to make sure that things that we acquire.
We're working integrated.
And creating cross sell opportunities across the organization.
And then.
Up until very recently, we were really focused on organic growth.
We've been building out.
Vertical sales team as well as continuing to invest in field sales incremental field sales resources to drive organic growth across the business.
And again that has continued to bear fruit.
Again being relatively new to the story, we also spending a fair amount of time and energy around or.
Implementation of SAP.
Which is gone which has taken some time, but is going well and we've got good traction on that and then kind of coming.
We were starting to think about getting kind of more acquisitive again, when COVID-19 hit so we shut that down as we were navigating COVID-19, but as we've come out on the back side of that we're actively.
Trying to engage in kind of rebuild our M&A pipeline and kind of begin that work again.
And not to dwell on it more more than we have already necessarily.
All the while recognizing that we've got a great opportunity to continue to buy in our own stock.
Given where it's trading and I guess I will take the opportunity now to just kind of reemphasize. We started building it into our press release, but on a trailing 12 month basis, we just delivered $54 million of EBITDA, that's extraordinary in the historical context of.
Radiant and kind of put that alongside the fact that we.
We effectively delevered the business in 2015 and never Relever the balance sheet. So we're sitting here with.
Call It a $55 million run rate EBITDA business with less than one turn of that on its balance sheet.
Trading at dramatic discounts to the market.
Thanks for this background.
And do you see among you agents you see a fair amount of variation in terms of performance during the sort of abnormal times or.
With that kind of.
It looks old boots.
Well, yes, and no I mean, I think I kind of think of it very much as a portfolio effect. So individually a lot of the stations are michie.
But in the aggregate they represent a very diverse portfolio. So at any point in time will have.
Some up some down some sad stories, some extraordinarily successful stories within the portfolio.
And and they come in all shapes and sizes too.
We've got some very large agents stations and we have some.
Small.
Very small micro type agents that we support as part of our network.
Great. Thank you very much.
And last question is coming from Vico Michael format. Please announce here affiliation and punish your question.
Okay, Ron How're you doin' good thanks.
That's a good question.
Had so far so.
When when you look at it first of all I applied Zandi. These results did not this quarter last quarter is really the last six to seven quarters. This.
This company has performed.
And expectations right. This is only we've been looking for for the past.
Five to 10 years, and you've been putting it up now and so.
So just looking back.
Earning about four times, what we did three years ago and our stock is basically.
At the same price and I do the math here gentlemen, before me did the math and he had a seven times I have us about six times, where we close on.
On a run rate EBITDA in.
Nice to hear that someone offering a preferred like that David offer that.
I look at it a little a little different.
7% I was looking for 6% from you I was going to say.
I'll offer you at two or 3%, but I think.
Yeah.
Zhang for for for a balance sheet like this in a castle a company like that something I'd. My guess is anybody going back to it.
If we're on to $60 million 50, $560 million EBITDA run right and we have the cash flow conversion theirs.
So much room to buyback stock I don't even think of that that the question is funding. It I think the question is how.
How we can balance.
If if the Sox phase here I would buy every single sure you could obviously, alright, I think that would be.
When you said that 10 $10 million EBITDA companies traded at 10 time 2 million dollar companies traded at five six times, well worth $60 million 50, 560 million dollar company and were trading at six times. So obviously you deploy everything you can.
Until it normalizes, then we have a long ways to go to normalize it to get the normal multiples which is.
When you look at the public companies, they're trading at 15 to 20 times EBITDA. So just to attend multiple guest.
$12, so what I'm trying to I'm trying to digress, a little bit. So obviously, we're going to be buying back as aggressively as possible.
Are there those companies that make then.
Acquisition wise in here that are really accretive really great on technology that makes sense or is it let's get our stock the normal valuation first because it's so absurd and then and then look at the acquisition or can we just do both and have a platform, where we have phenomenal organic growth buying back to kind of our stock.
And acquiring.
I like C and your multiple multiple choice question the answer so.
So.
We certainly believe that.
Well.
We believe it's incumbent upon us to continue to look for those types of opportunities that we.
Believer supersede synergistic and and can be game changing for us on our platform. So and believe me we kiss a lot of frogs that we pass on.
Looking at deals I can't tell you how many deals that we've looked at and and passed on over the years.
So we're not going to stop looking for M&A.
Just because our stock price is undervalued and candidly I fully expect that we're going to do both that there are companies out there that will kind of fit the criteria that we believe are.
Are are worthy of deploying our capital and kind of fitting in the business and the strategy.
And kind of helping us continue to scale and grow the business.
<unk>.
All the while continuing to.
To put capital work on on the buybacks as well so that's a long way of saying is I definitely do not see these as being mutually exclusive strategies or binary in nature.
Excellent well I am a proponent of a accelerated buyback, but we we should assume that the stock safety or are you going to buy whatever we could that these level. So I don't want to tip your hand, but.
I don't have a name in the portfolio I don't have a name.
On my screen or in any of the second is I look at that have our balance sheet our growth.
Hour you know.
Future outlook.
With our evaluation.
So yeah, it's a unique it's a unique story our stock is it the same price we've been at five years, then we're earning five times as much with a perfect balance sheet. So that's the objective I assume is <unk>.
Not to do a tender, but the by every share everything we can that these absurd level.
[laughter].
[laughter], we will be active in our stock buybacks are expect that's our expectation love. It and then one last thing so when everyone's saying, yes is just phenomenal environment out there.
With what you've done at the company the new customers.
All of that.
Is kind of a radiant at a new plateau, regardless of things slow down a little bit or March our margins improved a little bit.
Is the company I have regained enough and I'd love to hear the types of customers that we have set you know what vertical is it across vertical. So is this permanently changed what reading is what's happened over the last two years.
I certainly think so.
Even even what I'll call pre Covid, we were beginning to have opportunities to kind of move upmarket. If you will in terms of the size and scale of the types of.
Rfps or new business opportunities that we were invited to propose on and.
That trend has continued so.
Yeah.
I think.
For the foreseeable future.
We would still view kind of the kind of the classic middle market shipper is being are.
Kind of our primary customer.
But that's a huge universe within that kind.
Kind of within that.
Grady Asian.
And.
But kind of the opportunities and deal flow.
Has and we expect will continue to accelerate there is a lot more we can do not only within the vertical we're already in but a number of adjacent verticals that.
That we're not actively organized in that are also very interesting for us.
On on some of those kind of the organic stuff.
And I think there's a lot more of that will have an opportunity to do on the international side as well.
And so we're.
I mean, there's not a thing that you said that I disagree with.
And.
We're we're really optimistic about kind of where we are our trajectory of things.
Sometimes I would talk about our stock price.
And.
Historically.
Our stock price.
Kind of Plodded, along but then we will have some kind of step function kind of unlocking of value and the cumulative weight of the evidence demonstrates that were.
That were.
Doing what we say, we're going to do and or executing the right strategies in the business model is really working well to me $54 billion of TTM EBITDA goes a long way in that conversation.
But ultimately the market will will decide and we will we will continue to execute our strategy.
Excellent My Hat's off you guys. The the execution has been phenomenal through these times and.
When when you look at just the normalized to give you the lowest multiple.
In our sector puts us north of $12 and that's that's the lowest multiple.
And it gives us an opportunity you can look at the yes.
Unbelievable that work year, but it gives the company.
A really unique opportunity to change your capital structure permanently by by retiring all of these sure. So we get in the long in the long run this isn't a bad thing to be able to.
Buyers stock at such an accretive level, so hats off to you guys and just keep up the great work.
Alright, Thanks, Mike I appreciate it.
Okay no additional questions at this time.
Alright, let me close by saying that we remain very bullish on our prospects here at radiant and the scalable non asset based platform that we built.
With the diversity of our customers and service offerings, the strength of our balance sheet. The scalability of our technology and our extensive carrier partner network. We're certainly optimistic about the continued economic recovery and the opportunities that it will present for radium.
At the same time, we remained patiently persistent in the pursuit of our vision to leverage our Multibrand strategy and scalable back office infrastructure to support further consolidation in the marketplace, which we believe over time will continue to deliver meaningful value for our shareholders are operating partners in the end customer.
Where's that we serve.
Thanks for listening and your support Radiant logistics.
Thank you ladies and gentlemen, this does.
Today's conference call you may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.