Q4 2024 Radiant Logistics Inc Earnings Call

Speaker Change: Episode 2

Unknown Executive: 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 fourth fiscal quarter and year ended June 30, 2024. Following their comments, we will open the call to questions.

Speaker Change: Episode 2

Unknown Executive: This conference is scheduled for 30 minutes.

Unknown Executive: This conference call may include forward-looking statements within the meeting 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 FEC filings and other public announcements, which are available on the Radiant website at www.radiantdelivers.com.

Speaker Change: 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 achieved.

Speaker Change: It's expressed or implied by such forward looking statements.

Speaker Change: 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.

Speaker Change: On the radiant website at Www Dot radiant delivers dot com and.

Unknown Executive: In addition, past results are not necessarily an indication of future performance.

Speaker Change: In addition, past results are not necessarily an indication of future performance.

Bohn Crain: Now, I'd like to pass the call over to Radiance founder and CEO, Bond Crane.

Speaker Change: Now I'd like to pass the call over to Radiant <unk> founder and CEO Bob Crane.

Bohn Crain: Hey, John. Good afternoon, everyone, and thank you for joining in on today's call. While our full-year results continue to reflect the difficult freight markets being experienced by the entire industry as well as our own operations, we did see good sequential improvement in our financial results for the fourth fiscal quarter into June 30, 2024, when compared to our third fiscal quarter ended March 31. With net income up over 750%, adjusted net income up 94.4%, and adjusted EBITDA up 75%. We hope to continue to build on this positive trend in coming quarters as markets find their way to more sustainable and normalize levels.

Bob Crane: Thanks, John.

Bob Crane: Good afternoon, everyone and thank you for joining in on today's call.

Speaker Change: While our full year results continued to reflect the difficult freight markets being experienced by the entire industry as well as our own operations.

Speaker Change: Did see good sequential improvement in our financial results for the fourth fiscal quarter ended June 32024, when compared to our third fiscal quarter ended March 31.

Speaker Change: With net income up over 750% adjusted net income up 94, 4% and adjusted EBITDA up 75%.

Speaker Change: We hope to continue to build on this positive trend in coming quarters as markets find their way to more sustainable a normal normalized levels.

Bohn Crain: Notwithstanding the tough year-over-year comparisons, we continue to deliver meaningfully positive results and have generated 31.2 million in adjusted EBITDA and 17.3 million in cash from operations for the fiscal year into June 30, 2024. In addition, we continue to enjoy a strong balance sheet, and after completing five tuck-in acquisitions and deploying over $4 million in support of our stock buyback program, we were able to finish the quarter with approximately $25 million of cash on hand and still nothing drawn in 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.

Speaker Change: Notwithstanding the tough year over year comparisons, we continue to deliver a meaningfully positive results.

Speaker Change: <unk> generated $31 2 million in adjusted EBITDA, and $17 3 million in cash from operations for the fiscal year ended June 30 of 'twenty four.

Speaker Change: In addition, we continue to enjoy a strong balance sheet and after completing five tuck in acquisitions and deploying over $4 million in support of our stock buyback program.

Speaker Change: We.

We were able to finish the quarter with approximately $25 million of cash on hand, and still 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.

Bohn Crain: At the same time, we remain focused on delivering profitable growth through a combination of organic and acquisition initiatives and thoughtfully relevering our balance sheet to a combination of agent station conversions, strategic tuck-in acquisitions, and stock buyback.

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 agent station conversions strategic tuck in acquisitions and stock buybacks.

Bohn Crain: Tax. 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. In this regard, we made good progress in supporting three agitation conversions over the course of fiscal 24 with the acquisition of Florida-based Delray in October of 23, the Select Businesses in February of 24, and Minnesota-based Biking Worldwide in April of 24.

Speaker Change: 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.

Speaker Change: In this regard we made good progress in supporting three agent station conversions of over the course of fiscal 'twenty four with the acquisition of Florida based Delray in October.

Speaker Change: Of 23 select businesses at February 24, and Minnesota based biking worldwide and April 24.

Bohn Crain: We launched Radiant in 2006 with a goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition and our built-in access strategy. We believe these three transactions are representative of a broader pipeline of opportunities inherent in our agent-based network, and we look forward to continuing to support other strategic operating partners when they are ready to begin their transition from an agency to a company-owned location. In addition, in June of this year, we were able to welcome two new teams to our network with the acquisition of Portland-based DVA Associates and Seattle-based Cascade Transportation, both of which joined us from a competing network.

Speaker Change: We launched radiant in 2006 with a goal of partnering with logistics entrepreneurs, who would benefit from our unique value proposition and our ability and exit strategy.

Speaker Change: We believe these three transactions are representative of a broader pipeline of opportunities inherent in our agent based network and we look forward to continuing to support other strategic operating partners. When they are ready to begin their transition from an agency to a company owned location.

Speaker Change: In addition in June of this year, we were able to welcome two new teams to our network with the acquisition of Portland, based DVA Associates, and Seattle based Cascade transportation, both of which joined us from a competing network.

Bohn Crain: And most recently, we completed the acquisition of Foundation Logistics, another great addition to the Radiant Network, based in Houston, Texas.

Speaker Change: And most recently, we completed the acquisition of Foundation logistics. Another Great addition to the Radiant network based in Houston, Texas.

Bohn Crain: We will continue to look for Greenfield acquisition opportunities where we find opportunities that bring critical mass to our current platform with respect to geography, purchasing power, and targeted industry segments.

Speaker Change: We will continue to look for Greenfield acquisition opportunities, where we find opportunities that bring critical mass to our current platform with respect to geography purchasing power and targeted industry segments.

Todd Macomber: With that, I'll turn it over to Todd Maycomber, our CFO, to walk us through our detailed financial results, and then we'll open it up for some Q&A. Thanks, Bon, and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and 12 months in June 30th, 2024. For the three months in June 30th, 2024, we reported net income attributable to Radiant Logistics of $4,781,000 on 206 million of revenues for 10 cents per basic and fully-convicted share. For the three months in June 30th, 2023, we reported net income attributable to Radiant Logistics of $3,143,000 on $232.2 million of revenue, or 7 cents per basic and 6 cents per fully-diluted share.

Todd <unk>: 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.

Todd <unk>: Thanks, Bob and good afternoon, everyone.

Todd <unk>: Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and 12 months ended June 32024.

Speaker Change: For the three months ended June 32024, we reported net income attributable to radiant logistics.

Todd <unk>: $4 million $781000 on $206 million of revenues or <unk> 10 per basic and fully diluted share.

Todd <unk>: For the three months ended June 32023, we reported net income attributable to radiant logistics of $3 million $143000 on $232 2 million of revenue or seven cents per basic and <unk> <unk> per fully diluted share. This represents an increase of approximately $1 million 600.

Todd Macomber: This represents an increase of approximately $1,638,000 of net income over the comparable prior year period, or 52.1%. For adjusted net income, we reported $7 million, $15,000, the three months in June 30th, 2024, compared to adjusted net income with $6,457,000, the three months ended June 30th, 2023. This represents an increase of approximately $558,000, or approximately 8.6%.

Todd <unk>: $38000 of net income over the comparable prior year period or 52, 1%.

Speaker Change: Adjusted net income we reported $7 million $15000 for three months ended June 32024, compared to adjusted net income was $6.457 million for the three months ended June 30th 2023. This represents an increase of approximately $558000.

Todd <unk>: Or approximately eight 6%.

Todd Macomber: For adjusted EBITDA, we reported $9,078,000 for the three months ended June 30th, 2024, compared to adjusted EBITDA of $9,208,000 for the three months ended June 30th, 2023.

For adjusted EBITDA, We reported $9.078 million for the three months ended June 32024, compared to adjusted EBITDA of $9.208 million for three months ended June 30th 2023.

Todd Macomber: 33. This represents a decrease of approximately $130,000 for approximately 1.4%.

Todd <unk>: This represents a decrease of approximately $130000 or approximately $1 four per se.

Todd Macomber: Moving along to the 12-month results. For the 12 months in June 30th, 2024, we reported net income attributable to the rate of logistics of $7 million, $685,000 on $802.5 million of revenues, or $16 cents per basic and fully ruined share. The 12 months in June 30th, 2023, we reported net income attributable to the rate of logistics of $20,595,000 on $1 billion, $85 million of revenues, or 43 cents per basic and 42 cents per fully ruined share.

Todd <unk>: Moving along to the 12 month results.

Speaker Change: For the 12 months ended June 32024, we reported net income attributable to radiant logistics of $7 million $685000 on $802 5 million of revenues or <unk> 16 per basic and fully diluted share.

Speaker Change: 12 months ended June 32023, we reported net income attributable to radiant logistics of $20 million $595000 on $1 billion $85 million of revenues were <unk> 43 per basic and <unk> 42.

Speaker Change: For fully diluted share.

Todd Macomber: This represents a decrease of approximately $12,910,000 of the comparable prior year period, or 62.7%. For adjusted net income, we reported $22,647,000 for the 12 months ended June 30th, 2024, compared to adjusted net income of $39,301,000 for the 12 months ended June 30th, 2023. This represents a decrease of approximately $16,654,000 for approximately 42.4%.

This represents represents a decrease of approximately 12.910 million over the comparable prior year period were 62, 7%.

Speaker Change: For adjusted net income, we reported 22 million to $647000 for the 12 months ended June 32024, compared to adjusted net income of $39 million $301000 for the 12 months ended June 30th 2023.

Speaker Change: This represents a decrease of approximately $16 million $654000 or approximately 42, 4%.

Todd Macomber: For adjusted EBITDA, we reported $31,160,000 for the 12 months ended June 30th, 2024, compared to adjusted EBITDA of $55,638,000 for the 12 months ended June 30th, 2023. This represents a decrease of approximately $24,478,000 for approximately 44%.

Speaker Change: For adjusted EBITDA, We reported $31 million $160000 for the 12 months ended June 32024, compared to adjusted EBITDA of $55.638 million for the 12 months ended June 32023.

Speaker Change: This represents a decrease of approximately $24 million and $478000 for approximately 44%.

Todd Macomber: With that, I will turn on the call back over to our moderator to facilitate any Q&A mark-allers. Thank you.

With that I will turn the call back over to our moderator to facilitate any Q&A from our callers.

Speaker Change: Yes.

Speaker Change: Thank you at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.

Unknown Executive: At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation to indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Once again, please press star one if you have a question or comment.

Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.

Speaker Change: Once again, please press star one if you have a question or comment.

Elliot Helber: The first question comes from Elliot Helber with TD Cowan. Please proceed. You guys, thanks. This is Elliot on for Chase Insider. Maybe just for starting on the quarter, EBITDA sequentially, almost $4 million. I guess above our expectations, can you talk about maybe the drivers of the app performance in the June quarter?

Speaker Change: The first question comes from Elliot Alper with TD Cowen. Please proceed.

Speaker Change: Hey, guys. Thanks. This is Alex on for Jason Seidl, maybe just first starting on the quarter.

Speaker Change: EBITDA sequentially, almost $4 million I guess above our expectations can you talk about maybe the drivers of the outperformance in the June quarter.

Unknown Executive: Yeah, the chatter. Sure, yeah, yeah.

Speaker Change: Let's go to shatter sure yeah, Yeah, I mean.

Bohn Crain: I mean, you know, sequentially, it's hard to know the numbers, of course. You know, and you know, we're just seeing sequentially growth, quite honestly. You know, the queue three was obviously weak, but we, you know, it's, you know, it's just, I can't really speak to any particular thing in, you know, in particular, but we're seeing growth in the quarter as far as volume and the pricing is coming up.

Speaker Change: So it's hard to know the numbers of course.

Speaker Change: We're just seeing quite sequential growth quite honestly.

Speaker Change: Yes.

Speaker Change: Q3 was obviously weak but we.

Speaker Change: It's just I can't really speak to any particular thing.

Speaker Change: In particular, we're seeing growth in the quarter as far as volume and the pricing is coming up.

Unknown Executive: I got it, okay, and then, you know, there's a lot of noise with the poor data we look at.

Speaker Change: Got it Okay, and then you know theres a lot of noise with support data. We look at I guess, maybe a couple of questions here, but maybe one can you can you talk through kind of what youre seeing in terms of peak season. This year. If you saw any pull forward.

Elliot Helber: I guess maybe a couple of questions here, but maybe one. Can you talk through kind of what you're seeing in terms of peak season this year, if you saw any pull forward earlier in the summer?

Speaker Change: Earlier in the summer.

Elliot Helber: And then maybe two, are you seeing kind of any customers shift freight ahead of the potential report strike on October 1st?

Speaker Change: And then maybe two are you seeing kind of any customers shift trade ahead of the potential port strike on October 1st.

Bohn Crain: Yeah, I think it's shot at that. So I think the short answer is, yeah, we did see some pull forward. You know, a combination of global events, you know, risk of change over in elections and potential tariffs, and then there's a lot of factors, I think, that have caused some level of pull forward in acceleration in terms of kind of a more traditional peak. So I think the answer to that is yes, and so we're, you know, in the past several months, we've seen kind of additional pressure on the West Coast, which we view as a positive thing.

Speaker Change: Yes, so I'll take a shot at that so the I think the short answer is yes, we did see some some pull forward or a combination of global events.

Speaker Change: You know risk of.

Speaker Change: Changeover in elections, and potential tariffs and I know theres a lot of factors I think that's it cause some level of pull forward and an acceleration.

Speaker Change: In terms of kind of a more traditional peak.

Speaker Change: So I think the answer to that is yes, and so were in the past several months we've seen.

Speaker Change: Got it additional pressure on the West coast, which we view as a positive thing you know ocean rates are up as well as we're starting to see a little relief in and or a little tightening I guess to be more precise tightening in capacity off of the west coast.

Bohn Crain: You know, ocean rates are up, as well as we're starting to see a little relief and a little tightening, I guess, to be more precise, tightening and capacity off of the West Coast, which we think ultimately is in that positive for us and other transports in the marketplace.

Speaker Change: Which we think ultimately is a net positive.

Speaker Change: For us and other transports in the marketplace.

Unknown Executive: Okay.

Speaker Change: Okay, and then Bonnie I'm curious just your thoughts I mean, do you think there's a real probability of a rail strike or excuse me a port strike.

Elliot Helber: And then, Bonnie, I curious to just hear your thoughts. I mean, do you think there's a real probability of a rail strike, or excuse me, poor strike? There's a report out this week suggesting both sides are, you know, pretty far apart on negotiations. Would love to hear thoughts.

There was a report out this week, suggesting both sides are pretty far apart on negotiations would love to hear your thoughts.

I wouldn't I wouldn't want to speculate on that.

Bohn Crain: I wouldn't want to speculate on that. I would just, you know, to the extent that happens, you know, we'll be here to support our customers with diversions and kind of other ways to solve the problems when it occurs. It occurs; hopefully it doesn't, but, you know, we'll be there to support our customers as best we can to the extent that happens.

Speaker Change: I would just to the extent that happens.

Speaker Change: We'll be here to support our customers with diversions in kind of other ways to solve the problems. One of occurs occurs hopefully it doesn't.

Speaker Change: But.

Speaker Change: Well, we'll be there to support our customers as best we can to the extent that happens.

Unknown Executive: Okay. All right.

Got it alright.

Unknown Executive: Oh, that's for a non-answer answer. Exactly. All right. Appreciate it. Okay.

Speaker Change: For a non answer answer.

Speaker Change: Exactly all right I appreciate it.

Speaker Change: Okay. The next question comes from Kevin Gagne with Thompson Davis, Kevin. Please proceed.

Kevin Gainey: The next question comes from Kevin Gainey with Thompson Davis. Kevin, please proceed. Good afternoon, Bonnie Todd. How's it going? Yeah. Thanks. Yeah. Thank you.

Speaker Change: Good afternoon, Bohn and Todd How's it going.

Speaker Change: Thanks, Thank you.

Kevin Gainey: Uh, maybe we could start off looking at a little bit of forward, as you think about entering fiscal year 25. Maybe you guys can talk with, kind of talk about how you seeing the market, at least over maybe the July, August timeframe, and then how you're thinking about how that might shape up for 25. Well, you know, I think we, I'm going to kind of point back to our last quarter. We, you know, we are hopeful, and the numbers are kind of backing up the idea that the March quarter was kind of the bottom, at least for us.

Speaker Change: Maybe we could start off looking at a little bit of forward. How did you think about entering.

Speaker Change: Fiscal year 'twenty five maybe you guys can talk with.

Speaker Change: Kind of talk about how you've seen the market at least over maybe the July August timeframe.

Speaker Change: And then how you're thinking about how that might shape up for 25.

Speaker Change: Well you know I think we.

Speaker Change: Kind of pointing back to our last quarter. We you know we are hopeful and the numbers are kind of backing up the idea that the March quarter was kind of the bottom at least for us and.

Bohn Crain: And we saw some of sequential improvement here in this quarter. You know, and I think at least in my mind, and we'll see how it plays out, but I think, you know, kind of this, you know, plus or minus, you know, I think this quarter is kind of indicative of the run rate that we would expect based upon what we know today, right, as we continue to work to know. I don't I wouldn't say we're back to normal, but I, you know, whatever that means these days. But kind of based upon what we are seeing, you know, I didn't think the worst is behind us, and the kind of this quarter is more indicative of what you can expect of us going forward, hopefully.

Speaker Change: And we saw some sequential improvement here in this quarter.

Speaker Change: And I think it was.

Speaker Change: In my mind, and we'll see how it plays out but I think.

Speaker Change: Yeah.

Speaker Change: Kind of this.

Speaker Change: Yeah.

Speaker Change: Plus or minus.

Speaker Change: This quarter is kind of indicative of the run rate that we would expect.

Speaker Change:

Speaker Change: Based upon what we know today right as we continue to work to that I don't I wouldn't say, we're back to normal but whatever that means these days.

Speaker Change: But based upon what we are seeing.

Speaker Change: I do think the worst is behind us and get out this quarter is more indicative of what you can expect.

Thus going forward hopefully.

Bohn Crain: And you know, but with that said, you know, we're not seeing some big. So catalyst that's going to drive yet another step function, you know, I think everybody's grinding right, and we're grinding right along with the best of them. You know, and trying to be thoughtful and our cost structure and making sure we're continuing to keep that aligned with the business opportunities, you know, that we see.

Speaker Change: And but with that said you know we're not seeing some big.

Speaker Change: So catalyst that's going to drive yet another step function.

Speaker Change: Increased I think everybody's grinding right and we're grinding right along with the best of them.

Speaker Change: You know in trying to be thoughtful in our cost structure and making sure we're continuing to keep that align with the business opportunities that we see.

Bohn Crain: You know, I would pivot your question just slightly because I think it's so relevant to our individual story. You know, a lot of folks have balance sheets that are in disarray and are not really in a position to be acquisitive in this market, but we are, and we've been, you know, doing our darn just to be active out there in the marketplace. Most of them talking in acquisitions, but we're, you know, open for business and we're, you know, we're looking for acquisitions that make sense for us in terms of valuation and structure and fit. And so we were pretty active here this last year, and we expect to continue to be active in the 2025.

Speaker Change: I would pivot your question just slightly because I think it's so relevant to our to our individual story.

Speaker Change: A lot of folks have balance sheets that are in disarray and they're not really in a position to be acquisitive in this market.

Speaker Change: But we are and we've been.

Speaker Change: Doing our guard as to be active out there in the marketplace most of the tuck in acquisitions, but we're open for business and we're you know we're looking for acquisitions that make sense for us in terms of valuation and structure and fit.

Speaker Change: And so we were pretty active here this last year and we expect to continue to be active in the 2025.

Bohn Crain: Since you brought up the M&A piece, maybe kind of two questions on that as far as seller expectations, how have they changed? You feel like they've become more reasonable, and then I know you mentioned in the release that there were targeted industry segments that you guys were looking at, and I'm kind of curious what those might be from both. A transportation segment, or maybe like an end market vertical that you're interested in. Yeah, sure. So I guess, try to hit the first part of that question in terms of sellers' expectations. I don't know that sellers' expectations have changed kind of necessarily so much.

Speaker Change: Since you brought up the M&A.

Speaker Change: Piece, maybe kind of two questions on that.

Speaker Change: As far as seller expectations, how have they changed do you feel like they've become more reasonable and then.

I know you mentioned in the release that there were targeted industry segments that you guys were looking at and I'm kind of curious what those might be from both.

Our transportation segment or maybe like an end market vertical that you're interested in yes.

Yes, sure so I guess.

Speaker Change: Try to hit the first part of that question in terms of sellers' expectations I don't know that sellers' expectations have changed.

Speaker Change: Necessarily so much I just think theres less.

Bohn Crain: I just think there's less, a couple of things that play. One, we kind of have the, what I'll call the hockey stick behind us. So it's easier to transact off of the trailing 12 month type numbers that we're seeing now, rather than, you know, before kind of in the height of COVID and kind of what that market represented for everybody. So the numbers are settled down where everybody can feel more comfortable about. Transacting around the numbers that we're seeing and kind of coming back to kind of participants in the marketplace. I think there's just not as many folks right now who are kind of leaning in or not in a position to lean into the opportunity.

Speaker Change: A couple of things at play.

Speaker Change: One week, we kind of have the what I'll call the hockey stick behind us So it's easier to transact off of the trailing 12 months type numbers that we're seeing now rather than before.

Speaker Change: Before kind of in the in the height of Covid and kind of what that market represented for everybody.

Speaker Change: So the numbers are settled down where everybody can feel more comfortable about.

Speaker Change: Transacting around the numbers that we're seeing.

Speaker Change: And kind of coming back to.

Got it.

Speaker Change: Participants in the marketplace I think there is just not as many folks right now who are kind of leaning in there or not in a position to lean into the opportunity. The way that we are now don't get me wrong. We're not totally personnel are active there certainly are.

Bohn Crain: Opportunity, the way that we are now. Don't go get me wrong. We're not the only person out there active. There certainly are quite a few quite competent healthy competitors, but in the same breath, there's quite a few that are not in that situation. And so I think that's making a difference for us right now. And then fundamentally just coming back to the notion of kind of the inherent acquisition pipeline within our own network. You know, it's been our longstanding brand promise to support our operating partners. You know, when and if they were ready for their own access strategy.

Speaker Change: A few quite competent healthy competitors, but.

In the same breath that theres quite a few that are not in that situation.

Speaker Change: And so I think that's making a difference for us right now.

Speaker Change: And then fundamentally just coming back to the notion of kind of the inherent.

Speaker Change: The acquisition pipeline within our own network you know its been our longstanding brand promise to support our operating partners.

Speaker Change: And if they were ready for their own extra strategy in.

Bohn Crain: And what's the saying, Father Time waits for no man, right? So, you know, everybody's getting a little older, and just so that kind of opportunity said just continues to mature literally configuratively. And so we're going to, you know, we would expect kind of the rate of that to continue, you know, as we move forward.

Speaker Change: What's the saying father time waits for no man right. So everybody is getting a little older and just so.

Speaker Change: That kind of opportunity set just continues to mature literally and figuratively.

Speaker Change: And so we're going to you know, we would expect kind of the rate of that to continue.

Speaker Change: You know as we as we move forward.

Unknown Executive: Sounds good.

Speaker Change: It sounds good and then.

Bohn Crain: And then just kind of give you a chance to talk about the contract itself and probably the first test of it, the USA contract. Maybe if you could talk about Francine, the hurricane, and then just in general, how that contract shapes up for you guys and what it might be. Yeah, we're not in a position to get into too much detail, you know, on that for a number of reasons. But, you know, as, you know, as we have natural disasters and kind of other opportunities into which, you know, there would, there would be a response where, you know, our expectations is will be one of the first people that's, you know, that's called and given an opportunity to support, you know, to kind of support that opportunity.

Speaker Change: The.

Speaker Change: Kind of give you a chance to talk about the contract itself and.

Speaker Change: Probably the first.

Speaker Change: Test of it are the U S. H contract, maybe if you could talk about Francine the hurricane and then.

Speaker Change: Just in general how that contract shapes up for you guys and what it might be yeah, yeah, we're not in a position to get into too much detail on that for us for a number of reasons.

Speaker Change: But you know as.

As we have natural disasters.

Speaker Change: And kind of other opportunities into which.

Speaker Change: You know there were there would be a response were.

Speaker Change: Our expectations is we'll be one of the first people that let's call them given an opportunity to support.

If we get a support that opportunity.

Unknown Executive: Sounds like a place to be. Appreciate the time. Yeah, you bet.

Speaker Change: It sounds like the place to be I appreciate the time guys.

Speaker Change: Yeah, you bet.

Unknown Executive: Once again, if you have a question or a comment, please indicate so by pressing star one on your touch-tone phone.

Speaker Change: Once again, if you have a question or a comment please indicate so by pressing star one on your Touchtone phone. The next question comes from Jeff Kauffman with vertical research partners. Please proceed.

Jeff Kaufman: The next question comes from Jeff Kaufman with Vertical Research Partners. Please proceed. Thank you very much. Hey guys, congratulations. Identify the numbers. Just a couple quick questions. If I look at the six acquisitions you've made in the last 12 months. In aggregate, roughly, how much EBITDA are we building in incrementally? That is a good question. You know what? We have not disclosed that. And so I'm going to punch because of the fact that we have it. And I will respond this way: you know, Jeff, you've been following us so long; I appreciate that. And there was a time when every transaction we did was material and we had to disclose and file an AK and performance.

Speaker Change: Thank you very much hey, guys congratulation.

Speaker Change: Hey, Jay this is of course the numbers.

Speaker Change: Just a couple quick questions.

Speaker Change: If I look at the acquisitions, you've made in the last 12 months.

In aggregate roughly how much EBITDA are we bringing in incrementally.

Speaker Change: So good question that is a good question and that's why we have not disclosed that.

And so I'm going to pause because of the fact that we have it.

Speaker Change: And I will I will respond this way you know Jeff you've been following us so long and I appreciate that and there was a time when every transaction. We did was material we had to disclose it and file an 8-K and pro forma.

Bohn Crain: And we had to kind of, you know, lift our pants, right, for the benefit of our competition to see what we were doing. And I'm so glad to be on this call here today and tell you we don't have to do that anymore. And so we're quite happy to just keep our lips zipped as best we can and tend to our business and share the results as they.

And we had to kind of you know.

Speaker Change: Lift our paths right for the benefit of our competition to see what we were doing and I'm. So glad to be on this call here today and tell you we don't have to do that anymore.

Speaker Change: And so we are quite happy to just keep our lips zipped as best we can and tend to our business.

Speaker Change: And share the results as they occur.

Todd Macomber: Cooper. Fair enough. I just thought maybe, as a collective group, maybe I could get that answer. All right, go a different direction. Revenues down about 11%. Operating partner commissions down about 20%. Why were commission stands so much more than revenues, normally those two are fairly close. Let me, let me, let me try that kind of two things that play, right? So we had some significant kind of non-recurring project business in the year ago period that takes those kind of the top line numbers down, and on the kind of the part of the commission dynamic you're seeing is conversion of agency stations to company on stores.

Speaker Change: Fair enough I, just maybe as a collective group, maybe I could get that answer.

Alright go a different direction revenues down about 11%.

Speaker Change: Operating partner commissions down about 20%.

Speaker Change: Why were commissions down so much more than rubber that is normally those two are fairly close.

Speaker Change: I mean, let me, let me try that it's kind of too.

Speaker Change: Things that play right. So we had.

Speaker Change:

Speaker Change: Significant kind of nonrecurring project business in the year ago period that takes those kind of the top line numbers down.

Speaker Change: And on the kind of the part of the commission dynamic Youre seeing is conversion of agency stations to company owned stores. So as we're buying in agency stations.

Todd Macomber: So, as we're buying in agency stations, we'll, you know, that would be kind of a natural thing that we would expect to see happening. Okay, so we're the agency. Just a quick reminder, right? So, you know, as we buy an agency stations, nothing changes down to the gross margin line item, but as we buy folks in the agent station, commission goes away, we pick up their local level. Personal, personal and SGNA costs and the differences kind of their incremental even though that we would unborded ours and solid made it results. Okay, so a couple million dollars, is that that's fair.

Speaker Change: Wilson.

Speaker Change: That would be kind of a natural thing that we would expect to see happening.

Speaker Change: Okay. So if the mix changes.

Speaker Change: Yes, just a quick reminder, right. So you know as we buy into agency stations nothing changes down to the gross margin line item, but as we by folks in the agent Station Commission goes away, we picked up their local level.

Speaker Change: Personnel and SG&A costs, and the differences kind of their incremental EBITDA that we would.

Speaker Change: Onboard into our consolidated results.

Speaker Change: Okay. So a couple of million dollars of that that's fair.

Jeff Kaufman: All right, well, that's well, I guess one more.

Speaker Change: Alright, well that's.

Speaker Change: I guess one more.

Bohn Crain: You know, Bob, you said, we think we bottom, but we're lacking a catalyst to take us up to the next step, which seems to be the view of most folks in the market. What isn't happening that you would hope should be happening in the global economy right now? What do you think is holding us back? Well, it's, you know, it's kind of the, you know, for us, you know, our fate goes as our customers' fate goes, right? So we need our customers conducting more business; we need, you know, more hard freight. You know, while the service economy is great, that doesn't create a lot of hard freight for us to move around.

You know, Brian you said.

Speaker Change: We think we bottomed, but were lacking a catalyst to take us up to that next step.

Speaker Change: Which seems to be the view of most folks in the market what isn't happening that you would hope should be happening in the global economy right now like what what do you think is holding us back.

Speaker Change: Well its you know its Canada.

Speaker Change: For us.

Speaker Change: Our fate goes as our customers paid goes right. So we need our customers conducting more business with you.

Speaker Change: More of our freight.

Speaker Change: While the service economy is great that doesn't create a lot of heart rate for us to move around so you know we need.

Todd Macomber: So, you know, we need, you know, hopefully improving investment client where people are making investments feel confident in their businesses and are making investments in hard freight. You know, I think we're largely behind the old conversation of safety stocks and kind of excess inventory. So I think that, I think that story is largely played out. So it's really kind of getting the proverbial economic engine hiring on more, I want to even say all cylinders, but more cylinders, you know, that it is now. So the way we should think of a near term would be, you know, business moving forward plus or minus acquisitions until the world changes.

Hopefully that improving investment client or people are making investments feel confident in their businesses.

And are making investments in heart rate.

Speaker Change: Think we're largely behind that of the old conversation of safety stocks and kind of excess inventories. So I think that I think that story has largely played out so it's really.

Kind of getting the proverbial economic.

Engine.

Speaker Change: Barring on more I won't even say all cylinders, but more cylinders.

Speaker Change: It is now.

But so that's the way we should think of in the near term would be that our business moving forward plus or minus acquisitions.

Speaker Change: Until the world changes.

Todd Macomber: I think that's right. Okay, it may change, it may change in November. You know, we're seeing light up ticks in volumes, Jeff, month over month. You know, but it's not, you know, for now, it's fairly, you know, I wouldn't say it's like Bon saying. I mean, there's nothing, you know, that's going to dramatically up ticket. We are seeing strengthening, and on top of that, the revenue profile, I'm seeing has been increased, you know, that's been slowly increasing. to. But it could take a while, like Bohn says, you know, before we get back to where, you know, where we get a little multiple in the land.

Speaker Change: I think that's right.

Speaker Change: Got it maintain it maintains in November who knows we're seeing slight upticks in volumes, Jeff month over month, but it's not.

Speaker Change: For now it's fairly.

Speaker Change: I wouldn't say, it's like bond, saying, there's nothing that's going to dramatically up ticket, we are seeing strengthening and on top of that the revenue per file I am seeing has been increased.

Speaker Change: That's been slowly increasing too.

Speaker Change: So, but it's going to take a little while like one says before we get back to work.

Speaker Change: Where we think it will ultimately land.

Unknown Executive: All right, guys, that's all I have. Congratulations. And thank you. Thank you.

Speaker Change: Alright, guys Thats, all I have congratulations and thank you. Thank you.

Unknown Executive: Okay, we have no further questions in queue.

bond crane: Okay. We have no further questions in queue I'd like to turn the floor back to bond crane for any closing remarks.

Bohn Crain: I'd like to turn the floor back to Bohn Crain for any closing remarks. Thanks again, John. Let me close by saying we remain optimistic about our prospects and opportunities to continue to leverage our best-in-class technology, robust North American footprint, and extensive global network of service partners to continue to build on the great platform that we created here at Radiant. At the same time, we intend to thoughtfully re-lever our balance sheet and, through a combination of agent station conversions, synergistic tuck-in acquisition, and stock buybacks. Through our multi-pronged approach, we believe we will continue to create meaningful value for our shareholders, operating partners, and the end customers that we serve.

Speaker Change: Thanks again John.

bond crane: Let me close by saying, we remain optimistic about our prospects and opportunities to continue to leverage our best in class technology robust North American footprint extensive global network of service partners to continue to build on the great platform that we've created here at radiant.

Speaker Change: At the same time, we intend to thoughtfully re lever our balance sheet and through a combination of agent station conversions synergistic tuck in acquisitions and stock buybacks.

Speaker Change: Through a multi pronged approach we believe we will continue to create meaningful value for our shareholders operating partners and the end customers that we serve thanks.

Bohn Crain: Thanks for listening and your support of Radiant Logistics.

Speaker Change: Thanks for listening and your support of Radiant logistics.

Unknown Executive: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.