Q2 2025 Radiant Logistics Inc Earnings Call
<unk> logistics, founder and CEO and Radians, Chief Financial Officer, Todd Macomber will provide a general business update and discuss financial results for the company's second fiscal quarter and six months ended December 31 2024.
Speaker Change: Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes.
Speaker Change: This conference call May include forward looking statements within the meaning of the Securities Act of 1933, and the Securities Exchange Act of 1930 for the.
and
Speaker Change: The company has based these forward looking statements on its current expectations and projections about future events.
Greetings, welcome to Radiant Logistics financial discussion for second fiscal quarter ended December 31st 2024
Speaker Change: 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.
Bohn Crain: This afternoon, Bohn Crain, Radiant Logistics Founder and CEO, and Radiant's Chief Financial Officer, Todd Macomber
Bohn Crain: will provide a general business update and discuss financial results for the second fiscal quarter, second six-month quarter, and December 31st, 2024.
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.
Speaker Change: Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference call may include forward-looking statements with the general meaning of the Securities Act of 1933 and the Securities and Exchange Act of 1934. The company has based these forward-looking statements on current expectations and projections about future events. These forward-looking statements are subject to no or may include
Speaker Change: Such factors include those that have in the past and may in the future be identified in the Companys SEC filings.
Speaker Change: And other public announcements, which are available on the radiant website at www Dot radiant delivers dotcom and.
Speaker Change: In addition, past results are not necessarily an indication of future performance.
John Crane: Now I'd like to pass the call over to radians, founder and CEO John Crane.
Speaker Change: 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 a forward-looking statement, such factors include those that in the past and may in the future be identified and implied by such forward-looking statements.
John Crane: Thanks, Paul.
John Crane: Good afternoon, everyone and thank you for joining in on today's call.
John Crane: With the benefit of our diverse service offering we continued to deliver solid financial results and generated $12 million and adjusted EBITDA for our second fiscal quarter ended December 31 2024.
John Crane: These results are generally ahead of results from the comparable prior year period as well as our most recent previous quarter ended September 32024.
Speaker Change: and other public announcements which are available on the Radiant website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance. Now I'd like to pass the call over to Radiant's founder and CEO, Bohn Crain.
John Crane: We continue to take great pride in our work to support humanitarian relief.
Related projects around the globe.
John Crane: Our results this quarter reflect our support over a number of such projects, including chartering 49 flights to bring approximately 8 million units of IV fluids to the U S. As a result of the national shortages, resulting from Hurricane Milton.
Speaker Change: Thanks Paul. Good afternoon everyone and thank you for joining in on today's call. With the benefit of our diverse service offerings, we continue to deliver solid financial results.
Speaker Change: and generated $12 million in adjusted EBITDA for our second fiscal quarter ended December 31.
John Crane: Notwithstanding these strong results for the quarter.
Thank you for following me for
John Crane: We do expect our future near term results to continue to be challenged by market headwinds.
Speaker Change: Good afternoon, everyone. Thank you for joining in on today's call. With the benefits of our diverse service offering, we continue to deliver solid financial results, generating $12 million in adjusted EBITDA. We continue to take great pride in our work to support humanitarian relief.
John Crane: Near term results could also be further frustrated by the recently introduced tariffs with China, and Mexico, and Canada as we head into our slowest seasonal quarter ended March 31.
As previously discussed we believe we are well positioned with a durable business model diverse service offering and strong balance sheet to navigate through these slower freight markets as we find our way back to more normalized market conditions.
Speaker Change: related projects around the globe. Our results this quarter reflect our support over a number of such projects, including chartering 49 flights to bring approximately 8 million units of IV fluids to the U.S. as a result of the national shortage in relief resulting from hurricanes.
John Crane: We continue to enjoy a strong balance sheet with approximately $20 million of cash on hand, no meaningful debt and an untapped $200 million credit facility at.
Speaker Change: Notwithstanding these strong results, we do expect our future near-term results to continue to be challenged by market headwinds. Near-term results could also be further frustrated by the recently introduced tariffs with China, Mexico, and Canada.
John Crane: 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 strategic operating partner conversions synergistic tuck in acquisitions and stock buybacks.
Speaker Change: as we head into our slowest seasonal quarter in the March 31st.
Speaker Change: We do expect our future near-term results to continue to be challenged by market conditions. Near-term results could also be further frustrated by the recently introduced tariffs from the U.S. and Canada as we head into our slowest seasonal quarter in March this year. We continue to enjoy a strong balance sheet with approximately $20 million attached on hand, a no-meaning durable business model, and an untaxed $200 million strong balance sheet to navigate At the same time, we remain focused on delivery.
John Crane: 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.
John Crane: We made good progress in this regard over this last quarter with the acquisition of Texas based Foundation logistics the conversion of our Michigan based strategic operating partner focus logistics, which is combining with our existing radian operations in Detroit and the acquisition of PCB transportation in St. Louis Missouri.
Bob Crain, Todd Macomber
John Crane: We believe these three transactions are representative of our broader pipeline of opportunities, which includes both greenfield acquisitions. Those companies not currently part of our network as well as acquisition opportunities inherent in our agent based network, where we can support our current operating partners and their exit strategies.
Speaker Change: At the same time, we believe over time we will continue to deliver a meaningful value for our handling and acquisition business, and that's not only re-levering our balance sheet through a combination of synergistic, token-based foundations, logistics, and buybacks. Through this approach, we believe over time we will continue to deliver a meaningful value for our shareholders, operating partners, and the incoming customers. We make good progress in this regard.
John Crane: We look forward to providing further updates as we continue to progress along these lines.
John Crane: With that said I'll now turn it over to Todd <unk>, our Chief Financial Officer to walk us through our detailed financial results and then we'll open it up for some Q&A.
John Crane: Thanks, Brian and good afternoon, everyone. Today, we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three and six months ended December 31 2024.
Speaker Change: We believe these three transactions are representative of our broader pipeline of opportunities, which includes both greenfield acquisition, those companies not currently partnering with our existing radio operation, as well as acquisition opportunities in the air and our ATV transportation where we can support our current operating partners. We believe these three transactions are representative of our broader pipeline of opportunities. We look forward to providing further updates as we continue to progress along these lines.
Todd: For the three months ended December 31, 2024, we reported net income attributable to radiant logistics of $6 million and $467000 on $264 5 million of revenues or <unk> 14 per basic and <unk> 13.
John Crane: Per fully diluted share.
John Crane: For the three months ended December 31 2023.
Speaker Change: and our Chief Financial Officer Aaron to walk us through our detailed financial results where we can support our operating partners in their exit strategy. Thanks, Bohn, and good afternoon, everyone. We look forward to providing further updates as we continue to progress along these lines.
John Crane: Reported net income attributable to radiant logistics of $985000 on $201 million of revenues or <unk>.
John Crane: For basic and fully diluted share.
John Crane: This represents an increase of approximately $5 million $482000 of net income over the comparable prior year period or 556, 5%.
Speaker Change: With that said, I'll now turn it over to Todd Macomber, our Chief Financial Officer.
Speaker Change: to walk us through our details again, so we're going to roll over to the person who gave the line. Thanks, Paul, and good afternoon, everyone. Today, we just got $7,000. On 200 net income, $4.5 million of revenues for the 3 and 14 cents per fancy and 13 cents for fully diluted share.
John Crane: Adjusted net income we reported $10 million $695000 for the three months ended December 31, 2024 compared to adjusted net income of $5 $496000 for the three months ended December 31 2023.
Speaker Change: With three months in December 31st, 2023, we reported net income attributable to $6,485,000.
John Crane: This represents an increase of approximately $5 million $199000 or approximately 94, 6%.
Speaker Change: on $201.4 million of revenues, or $0.02 for a basically fully diluted share. This represents an increase of approximately $5,482,000 of net income. We reported a net income prior year period of $585.5 percent.
John Crane: For adjusted EBITDA, We reported $12 million $16000 for the three months ended December 31, 2024, compared to adjusted EBITDA of $7 million $708000 for the three months ended December 31 2023.
Speaker Change: For adjusted net income, we reported $10,695,000 for the three months ended December 31, 2024. Approximately $5,496,000 for the three months ended December 31, 2023.
John Crane: This represents an increase of approximately $4 million $308000 or approximately 55, 9%.
John Crane: For the six months period for the six months ended December 31, 2024, we reported net income attributable to radiant logistics of $9 million $843000 on $468 1 million of revenues are.
Speaker Change: This represents an increase of approximately $5,299,000 for approximately three months ended December 31, 2024.
John Crane: Our 21 per basic and <unk> 20.
Speaker Change: For Justice-D-Ibida, we reported $12,516,000 for the three months ending December 31, 2024, compared to Justice-D-Ibida of $7,708,191 for the three months ending December 31, 2020. This represents an increase of approximately $4,000,000 for Justice-D-Ibida, we reported $12,016,000 for the three months ending December 31, 2024,
John Crane: Per fully diluted share.
John Crane: The six months ended December 31, 2023 reported net income attributable to radiant logistics of three $607 on 400, $411 9 million of revenues or <unk> <unk> per basic and <unk> <unk> per fully diluted share.
John Crane: This represents an increase of approximately $6 million and $236000 over the comparable prior year period or 172, 9%.
We reported three net income contributors to Radiant Logistics.
John Crane: Adjusted net income we reported $18 million $578000. The six months ended December 31, 2024, compared to adjusted net income of $12 $46000 for the six months ended December 31 2023.
Speaker Change: of $9,843,000 on $468.1 million of revenues, or $0.21 per basic and $0.20 per fully diluted share. For the six months ending December 30, 2023, we reported net income attributable to radiant logistics of $9,643,000 on $411.1 million of revenues, or $0.21 per basic and $0.20 per fully diluted share.
John Crane: This represents an increase of approximately $6 million $532000 or approximately 54, 2%.
John Crane: For adjusted EBITDA, we reported $21 million and $468000 for the six months ended December 31, 2024, compared to adjusted EBITDA of $16 million $874000 for the six months ended December 31 2023.
Speaker Change: This represents an increase in the property for $6,236,000 net income attributed to Paraplegia in the two-part year period of $3,472,000.
Speaker Change: For just net income, we reported $82,578,000 this six months ended December 31st, 2024, compared to a just net income of $12,046,000 for the comparable six months ended February 31st, 202.9%.
John Crane: It represents an increase of approximately $4 million $594000 or approximately 27, 2%.
John Crane: With that I will turn the call over to our moderator to facilitate any Q&A from our callers.
Speaker Change: Thank you at this time, we'll be conducting a question and answer session.
Speaker Change: This represents an increase of approximately $6,532,078 for approximately 54.2%. For just EBITDA, we reported $21,468,000 in six months and in six months, December 31, 2024. Compared to adjusted EBITDA, this represents $16,874,536 in December 31, 2023. This represents an increase of approximately 4 million
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Speaker Change: And the first question today is coming from Elliot Alper from TD Count Elliott Your line is live.
for six months.
Speaker Change: Alright. Thank you. This is <unk> on for Jason Seidl, maybe just starting off you give more detail on maybe the outperformance in the December quarter, our smelter and the primary driver maybe anything else you saw unusual about peak season or curious if you saw any pull forward in the market.
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Speaker Change: Sure I'll take a crack at that.
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I think the conversation has to start with kind of the diversity of our service offering and the fact that we did have an opportunity.
Speaker Change: Support a number of initiatives.
Speaker Change: You may press star 2 if you would 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 2. All right, yeah, thank you. This is Ilyadon for Jason Seidel. Maybe just starting off, can you give more detail on maybe the app's performance in the December quarter?
Speaker Change: In and around Hurricane Milton.
Speaker Change: That.
Speaker Change: Was the real driver in the outperformance for the quarter.
Speaker Change: And.
Speaker Change: I appreciate it for that opportunity, we tried to do our best to temper. The press release itself, because it's still tough going out there and again kind of this project activity.
Speaker Change: Was Milton the primary driver? Maybe anything else you saw unusual about Pete's season or curious if you saw any pull forward in the market?
Speaker Change: Kind of helping us through the trough, but it's still.
Speaker Change: I'll take a crack at that. I think the conversation had to start with the diversity of our service offering and the fact that we did have an opportunity to support a number of initiatives in and around
Speaker Change: Kind of slow going I do think as you were alluding to there was some.
Speaker Change: Little bit of pull forward this quarter kind of in anticipation of tariffs. So we got a little bit of.
Speaker Change: What I would call a modest bump there, but more broadly it's pretty tough out there for us and our competitors and we were just fortunate enough to have.
Some pretty meaningful.
Speaker Change: No meaningful in terms of human impact and ultimately meaningful in terms of financial performance for us.
Speaker Change: Supporting this.
Speaker Change: Fluid project.
Speaker Change: Okay, Great and then I wanted to ask about the acquisition of JCB made in December can you talk about the strategic rationale of acquiring an intermodal marketing company, maybe a ballpark of how we should think about the size of that business or maybe the margins versus euro fixing business.
Speaker Change: I do think, as you alluded to, there was some, you know, a little bit of a pull forward for kind of an anticipation of tariffs, because it's still kind of going out there, and, you know, in kind of this project activity, you know, they're kind of helping us, but more broadly, it's pretty tough out there for us and our competitors. I do think, as you were just alluding to, there was some, you know, a little bit of
Speaker Change: Yes sure so.
Speaker Change: This is a really.
Speaker Change: A great question. Thank you. Thank you for that just to kind of.
Speaker Change: Kind of provide some foundational comment to my response.
Speaker Change: You know, we got a meaningful in terms of human impact and I would call the model meaningful in terms of, but more broadly, it's pretty tough out there for our competitors and we were just fortunate enough to have
Speaker Change: Back in 2015, we acquired another public company that was called wheels group, which we rebranded as Radiant Global Logistics, Canada.
Speaker Change: Wheels itself had done some acquisitions that had acquired.
Speaker Change: I wanted to ask about the acquisition of TCB you made in December, you talked about the strategic rationale of acquiring an intermodal marketing company, maybe a ballpark of how we should think about the size of that business or maybe the margins versus your Dixie business.
Speaker Change: Company from ABF kind of back in the day that many people will know as Clipper Express we ultimately rebranded Clipper Express Radiant road and rail.
Speaker Change: And we often refer to that as our U S based brokerage platform and for us that means both intermodal and truck brokerage and so.
Speaker Change: Yeah, sure. So, you know, this is a really great question. Thank you for that. Just to kind of provide some foundational comments to my response. You know, back in 2015, we acquired another public company that was called Wheels Group, which we rebranded as Radiant Worldwide Canada. Wheels itself had done some acquisitions.
Speaker Change: No.
Speaker Change: Antidote, Italy.
Speaker Change: <unk>.
Speaker Change: Radiate Road and rail formerly known as Clipper Express is.
Speaker Change: Quite literally the oldest subsidiary at our consolidated group. It was incorporated in 1938 all of the original intermodal marketing companies.
Speaker Change: had acquired a company from ABF kind of back in the day, back in 2015 when we acquired another public company called Wheels Group. We ultimately rebranded Clipper Express as Radiant Road and Rail. Wheels itself had done some action and had acquired a company from ABF kind of back in the day, Intermodal Mini Truck Brokerage.
Speaker Change: But in any event there core our principal business was in the 53 foot space.
Speaker Change: And.
PCB brought an incremental competency to our intermodal offering are around 40 foot.
Speaker Change: And.
Speaker Change: And then again just for context, we have been working hard.
Speaker Change: Build out a true bimodal service offering from our road and rail platform in Chicago.
Speaker Change: and his Clipper Express, and we ultimately, we branded Clipper Express as Radiant Road and Rail, formerly known as Clipper Express, and we all refer to that as our
Speaker Change: Have a robust over the road and intermodal service offering so we see a lot of potential revenue synergies.
Speaker Change: To the on boarding of this.
Speaker Change: PCB and there.
Speaker Change: A small but mighty player in the 40 foot space.
Speaker Change: We're really excited to have them and the team as part of our organization moving forward.
Speaker Change: And we I think.
Speaker Change: Kind of stayed away from.
Speaker Change: And then again just for context, we've been working hard to build out a true bimodal service offering.
Speaker Change: A lot of details around the precision of the purchase price of numbers, but I think.
Speaker Change: From our road and rail platform in Chicago, we have a robust over-the-road and intermodal service platform.
Speaker Change: Dimensionalize it.
Speaker Change: $2 million to $3 million of incremental EBITDA contribution is what we would anticipate from that business.
Speaker Change: Okay, great. Thank you and then maybe just last one and there's been just a lot of news on tariffs changing by the day can you talk about.
Speaker Change: Your customer's brokerage operation kind of what Youre seeing now or how shippers are reacting.
Speaker Change: How big is that business or do you charge customers on.
Speaker Change: I think we stayed away from PCB, and there are a lot of details around the precision of the purchase price and numbers, but I think we're really excited to have them dimensionally as part of our organization on board.
Speaker Change: How much theyre speaking with their sales contract contact any color there would be helpful. Thank you.
Speaker Change: Sure. So there again, our ground the conversation in our some of our prior acquisition activities. So we had.
Speaker Change: and two to three million dollars of incremental EBITDA contribution is what we would anticipate from this business.
Speaker Change: Historically been what I.
Speaker Change: I'd characterize is dabbling in the customs brokerage space.
Speaker Change: A lot of details around the... Great. Thank you. And then maybe this last one, there's been just a lot of news on tariffs changing by the day. Can you talk about, you know, in your customs brokerage operation, kind of what you're seeing now or how shippers are reacting? How big is that business? Or do you charge customers on...
Speaker Change: But a few years back we acquired a company called navigate which was principally in the OCC and customs brokerage platform based in Minneapolis.
Speaker Change: And we've since rebranded that business is rating at World trade services. So we have.
Speaker Change: It's relatively small in the scheme of things but.
Speaker Change: How much they're speaking with their sales contracts, contact, anything that would be helpful.
Speaker Change: Extra extraordinarily strong competency in the customs brokerage.
Speaker Change: Space, both transaction and just.
Speaker Change: From an advisory standpoint, trying to help our customers understand and respond to the shifting sands of.
Speaker Change: Tariffs in the quickly evolving landscape in which we're all operating in I would be remiss to not also take the opportunity to talk about.
Speaker Change: The technology that we acquired in connection with our acquisition of navigate because we are very excited about what I'll call. The bundled solution offering that we now enjoy to be able to provide a really robust.
Speaker Change: rebranded that character as Radiant World Trade Services. So we have a, you know, it's relatively small in the scheme of things, but Navigate is principally a strong competency in the customs brokerage space, both transactionally and just, and we, you know, rebranded that point, trying to help our customers understand and respond to those shifting demands. You know, it's relatively small in the scheme of things, but a quickly evolving landscape
Speaker Change: Collaboration platform for Po management vendor management, customs brokerage and a really robust holistic way that historically, we and most people kind of in our relative size.
Speaker Change: The kind of play in that way or that dimension.
Speaker Change: And I would be remiss to not also take the opportunity to talk about
And so where we're very active.
Speaker Change: an advisory team that we acquired in connection with our acquisition of Navigant because we are very excited about what I'll call the bundled solution offering that we now enjoy to be able to provide a really robust solution.
Speaker Change: <unk>.
Speaker Change: Our growing our customs brokerage and we continue to.
Speaker Change: To try to cross sell our customs brokerage capabilities into our other international clients, but I really am quite <unk>.
Speaker Change: Hopeful that.
Speaker Change: Over time, we will have more and more to tell more and more of a story to tell around our technology platform, which we which were kind of repositioning our branding as navigate and the global trade management capabilities inclusive of custom brokerage that will set in.
Speaker Change: The technology that we have collaboration platform with our PO management, vendor management, customs brokerage in a really robust holistic way that the bundled solution offering that we and most people can be able to provide in our relative size.
Speaker Change: Don't kind of play in that way, that dimension, PO management, vendor management, we're very active and really robust.
Side that navigate platform so that was a really.
Speaker Change: The broad answer to your customs brokerage question, but were.
Speaker Change: We're a meaningful player and were.
Speaker Change: Definitely punching above our weight these days in and around that offering and.
It's probably one of the most.
Speaker Change: Citing threads and opportunities as we move forward and catalyst for growth for us.
Speaker Change: Great. Thanks, John appreciate it.
Speaker Change: Thank you and once again it is star one on your phone if you wish to ask a question today. The next question is coming from Mark Argento from Lake Street.
Speaker Change: Mark Your line is live.
Speaker Change: Hey, Bonnie just a.
Speaker Change: Quick one if you could just help us think through a little bit.
We've been pretty active on the M&A side, which is great and anticipating that will continue just given the environment.
Speaker Change: But could you help maybe just size up a little bit.
Speaker Change: You did that with the.
Speaker Change: PCB acquisition, but just help us think about.
Speaker Change: Either gross.
We're a meaningful player and we're alive.
Speaker Change: Our net revenue or adjusted <unk> adjusted EBITDA contributions from some of these acquisitions that I know, it's a little bit tough to pin it all down but.
Speaker Change: Once again, it is Star 1 on your phone if you wish to ask a question today. The next question is coming from Mark Argento from Lake Street. Mark, your line is live.
Speaker Change: And on this quarter $12 million.
Speaker Change: Was that same store EBITDA contribution did you benefit a couple million Bucks news acquisitions is it more is it lost just trying to get a little bit of a feel.
Speaker Change: Hey, Bohn. Hey, Todd. Just a quick one, if you could just help us think through a little bit.
Speaker Change: has been pretty active on the M&A side, which is great, anticipating that we'll continue to stick in the environment. But can you help maybe just size up a little bit with the Bohn and Todd, just a quick one, if you could just help us think through a little bit.
Speaker Change: For kind of organic versus acquisition contribution yes.
Speaker Change: Yes sure so.
Speaker Change: Again, we've got a as you described we have to paint with a pretty broad brush here for a number of contributing factors. So.
Speaker Change: I would start with when we acquire and an agency station or convert an agency station, we really don't see any change at the revenue our gross margin line item because that business is already flowing through our financials, we ended up reducing <unk>.
Speaker Change: and their growth on the net revenue or in the environment. But could you help me to tie this up a little bit? I know it's a little bit tough to break it all down.
Speaker Change: You know, is it be a quarter of 12 million? Think about, you know, was that, you know, same store even our contribution benefit a couple million more, less than a little bit of a feel some of these acquisitions are kind of organic, a little bit tough, but a contribution.
Speaker Change: Commission expense paid out and kind of that that difference. If you will is what will flow through in terms of incremental EBITDA. So thats one of the areas, where we talk about margin expansion margin expansion defined as EBITDA divided by gross margin and kind of one of the byproducts of that convert those conversion efforts of agency stations.
Speaker Change: We did.
Speaker Change: We've done a number of those recently and we would anticipate that.
Speaker Change: For those who've been following our story for a long time, the notion of the great tail in kind of the aging of the of our strategic operating partners. We think that that theme will continue and just continue to accelerate as we move forward.
Speaker Change: Yes.
So theres not going to be kind of a lot of top line impact of that.
Speaker Change: <unk> PS.
Speaker Change: I would say on kind of are.
Speaker Change: And.
Speaker Change: So PCB is a little different because thats, a greenfield acquisition, but quite literally we only had one month of those activities in our December quarter. So we really haven't.
Speaker Change: We've done a number of those recently, and we would anticipate, in fact, for those who have been following our story for a long time, the notion of the gray tail in light of the aging of our strategic operating partners, you know, we think that theme will continue and just continue to accelerate as we move forward.
Speaker Change: <unk> the floor.
Speaker Change: So through effects of TCP, and our financials, yet as it relates to the December quarter.
Speaker Change:
Speaker Change: And without getting in too much detail I would say on a same store basis, we were relatively flat.
Speaker Change: and we've got a number of those reasons not going to be able to anticipate.
Speaker Change: Candidly best case flat.
a Greenfield Acquisition.
Speaker Change: And some of this project opportunity really help lift the numbers and I'll just I'll say it again for emphasis that's why we were kind of caution.
Speaker Change: But quite literally, we only had one month of those activities in our December quarter, so we really haven't seen the flow-through effects of TCB in our financials yet, you know, as it relates to... The TCB is a little different, because that's a greenfield acquisition. But quite literally, we only had one month's detail of those activities in our December quarter, so we really have a relatively flat flow-through effect of TCB in our financials.
Speaker Change: As good as it is and we're really grateful to have we don't want people to take this quarterly result, multiply it by four and think Thats. Our go forward run rate because it's it's going to be tough.
Speaker Change: Suffer sledding ahead.
Speaker Change: In particular, this march quarter seasonality and tariffs and everything else going on so.
Speaker Change: Hopefully thats at least somewhat responsive to your question one yes.
Speaker Change: Got it.
Speaker Change: The question note answer with a lot of specificity what those notes very helpful. Yes.
Bob Crain, Todd Macomber
Speaker Change: Drawing on your past experiences with tariffs and I know this is kind of a unique and somewhat unprecedented.
Bob Crain, Todd Macomber Bob Crain, Todd Macomber
Speaker Change: Environment right now so it's hard to handicap with great precision, but.
Speaker Change: What.
Speaker Change: Obviously, there was some pull forward, which you mentioned in anticipation of potentially this happening but.
Speaker Change: But how does this normally play out like there was a pull forward and then there's a little bit of a normalization in the market.
Speaker Change: How do you guys kind of play the situation or at least try to handicap a little bit.
Speaker Change: That's a tough one.
Speaker Change: I will give you my perspective, but I think it's worth what you pay for it here right. So.
Speaker Change: But.
Speaker Change: At the at the end of the day.
Speaker Change: I think when tariffs get put into place there will be some short term disruptions as people try to respond in kind of reconfigure or adjust.
Speaker Change: Individually within our own portfolio of customers there could conceivably be some winners and losers within our own portfolio of customers.
and Craig Basley. Thank you.
Speaker Change: Kind of what happens to the underlying.
Speaker Change: Products that they're making and how they are impacted to the good or the bad relative to the tariffs.
Speaker Change: But at the end of the day, we just simply bill as a country, we simply don't have the manufacturing capability to support the consumption requirements.
Speaker Change: Bohn Crain, Todd Macomber Todd Crain, Todd Macomber Vated Graduate Starting Class of 2021 Bohn Crain, Todd Macomber
Speaker Change: The U S consumer so.
Speaker Change: short-term disruption, might people try to respond and kind of re-configure or adjust, you know, individually within our own portfolio of customers, there could possibly be some winners and losers within our own portfolio of customers, and kind of what happens to the underlying products that they're making and how they are impacted, you know, individually within our own portfolio of customers, there could be some winners and losers.
Speaker Change: Even though prices may go up.
Speaker Change: Somebody is still going to have to pay for them just by the laws of simple supply and demand so whether it.
Speaker Change: <unk> continues to come from China, or it gets repositioned as coming from Vietnam and ore.
Speaker Change: U S and Canada those trade flows are still going to have to happen.
Speaker Change: Albeit.
Speaker Change: Likely higher prices for consumers, but thats, an entirely different conversation and kind of beyond the scope of this call.
Speaker Change: We just simply don't have the manufacturing capability to support the consumption requirements that they're making and how they're impacting consumers. Even though prices may go up.
So.
Speaker Change: I can't tell you what will or won't happen and whats.
Posturing or is actually going to come to pass but.
Speaker Change: We and the rest of the industry will digest it.
Speaker Change: But at the end of the day, we just simply don't have the countrywide demand. So whether a manufacturer continues to come from China or gets repositioned, coming from Vietnam and or U.S. and Canada, those trade flows are still going down. Even though prices may go up, albeit likely higher prices for consumers, but that's an entirely different conversation.
Speaker Change: And continue to move forward.
Speaker Change: Thanks.
Speaker Change: I think I asked this question pretty much every time, so we can do it again, but in terms of the environment on the M&A side. It seems like things remain robust and as this.
Speaker Change: Environment of uncertainty about what compels some of these.
Speaker Change: The scope of China or its reposition is coming from Vietnam and or you know US and Canada. Those are pretty close. I can't tell you what will or won't happen and what hasn't.
Speaker Change: Conversations turn into transactions or what do you foresee there.
Speaker Change: Well not not necessarily that I think for us.
Speaker Change: All be it posturing, or it's actually going to come fast, but we and the rest of the industry will digest it and continue to move forward. I can't tell you what will or won't happen, posturing, but in terms of the environment on the M&A side, things like we and the rest of the industry will digest it.
Speaker Change: A number of things afoot right. So we have our aging agent stations that just kind of biologically youre raising their hands.
Speaker Change: Because they're aging out and need to think about their own succession planning and exit strategies and so we've been playing that is a long game for a very long time and so that's just.
Speaker Change: Continuing to move forward. So that is one third of it and then there is a.
Speaker Change: There's.
is that what, you know, compels some of these.
Speaker Change: Certainly not all but a good number of folks in our space.
Speaker Change: You know, conversations that turn into transactions or what do you foresee there again? But in terms of the environment on that, I'm not an agent. I'd like to remain responsive. And this comes from everyone's conversations out by, you know, titles. You know, conversations that turn into transactions or what do you foresee there? Well, not necessarily that. I think for us, there's a number of things
Speaker Change: Sure.
Speaker Change: Or ultimately Levered up at peak or peak earnings and as the market softened they really found their balance sheets in disarray, so theres a lot of.
Speaker Change: Kind of what I would characterize as normal participants in the M&A space are somewhat sidelined right now while they try to figure out how to get their own balance sheets right size, so that they could become actionable again so.
Speaker Change: Right. So that's just, you know, continuing to move forward. So that's biologically amazing. And then, you know, there's certainly not all, but a good number of folks in our space were ultimately levered up at peak earnings, and as the market softened, they really found their balance sheets and disarray.
That's another piece of it which has from my standpoint, we're still the same guys executing the same plan with the same discipline. We always have been it's just the market is kind of coming back to us.
Speaker Change: Because because of some of these dynamics.
Speaker Change: No.
Speaker Change: Part of the dynamic.
Speaker Change: In the transactional space.
Speaker Change: Harold.
Speaker Change: We and others have talked about.
Speaker Change: Normal participants in the M&A space are somewhat sidelined right now. They're trying to figure out how to get their own balance sheet the right size so that they can become actionable again. So there's a lot of piece of it which has, you know, from my standpoint...
Speaker Change: It's kind of hard to transact on peak earnings in kind of understanding that the now where are we in trough earnings and kind of working our way through some of those dynamics, but thats one of the precise reasons why we use the earn out structures that are in our deals and that we really try to structure.
Speaker Change: We're still the same guys executing the same plan with the same discipline we always have been. It's just the market is kind of coming back to us.
Speaker Change: To mitigate risk to make sure we don't ultimately overpay for the businesses that we acquire.
Speaker Change: So we still have a lot of dry powder.
because of some of these.
Speaker Change: And expect to continue to be very disciplined, but we're really executing the same playbook. We work when we met 10 years ago Marc.
because that's another piece of it.
Speaker Change: We're still the same guys executing the same plan with the same discipline we always have been. It's just the market is kind of coming back to us because of some of the dynamics. Part of the dynamic is in the transactional space.
Speaker Change: Okay.
Speaker Change: A true one final final anything on the buyback in the quarter.
Speaker Change: No no not this quarter.
Speaker Change: We're too busy island deal yeah.
Speaker Change: All right.
Speaker Change: use earn-out structures in our deals and that we and others have talked about structure to mitigate risk to make sure we don't ultimately overpay for the businesses that we acquire. So, you know, we still have a lot of drive power and we expect to continue to be very disciplined, but we're really executing the same playbook we were when we met 10 years ago to make sure we don't
Speaker Change: Use of capital.
Speaker Change: Great. Thanks, guys alright, thank you.
Speaker Change: Thank you and the next question is coming from Kevin Gagne from Thompson Davis, Kevin Your line is live.
Kevin Gagne: Hi, Bon ton.
Speaker Change: Good quarter guys.
Speaker Change: Yes.
Speaker Change: Maybe if you could kind of talk about how you're feeling about market conditions. Currently I know you've kind of reiterated that there is still slow.
Speaker Change: ultimately overpaid. Yep, no, that's true. One final, final, anything you have to buy back? We still have a lot of dry powder. We expect to continue to be very disciplined, but we're really just executing the same playbook we were when we met 10 years ago. Good use of capital.
Speaker Change: But maybe compare it to how you guys felt this time last year.
Speaker Change: Yeah.
And that's a lifetime ago.
Speaker Change: [laughter].
Speaker Change: Thanks guys, one final final, anything on the buy back of the quarter? Thank you and the next question is coming from Kevin Ganey from Thompson Davis. Kevin, your line is live.
Speaker Change: I would say.
Speaker Change: I am more bullish today.
Speaker Change: Again, I'm going to say it again business remained soft it's going to be soft for us I think heading into 2025, not just for us but for our industry.
Kevin Ganey: Hi, Bohn, Todd. Good quarter, guys. Maybe if you could kind of talk about...
Speaker Change: I think it's going to be tough going near term, but having said that I've never been more Paul.
Kevin Ganey: How you're feeling about market conditions currently, and you've kind of reiterated that they're still slow But maybe compare it to how you guys felt this time last year
Speaker Change: About kind of where we are in a relative kind of position.
Speaker Change: Position.
Speaker Change: Our relative place out there in the landscape and that were actionable and we'd have the financial flexibility and we've got some as I alluded to some really interesting things kind of in the tech stack world that we're bringing to market that we think are going to be a differentiator for us.
Speaker Change: Maybe if you could kind of talk about how you're feeling about market conditions.
Speaker Change: Currently, I know you've reiterated that they're still slow, but maybe compare it to how you guys developed.
Speaker Change: So it's.
Speaker Change: Again, I'm going to say it again, you know, business remains soft. It's going to be soft for us, I think, heading into 2025, not just for us, but for our industry. You know, I think it's going to be tough going.
It's going to be there's still going to be plenty of.
Speaker Change: Bumps and bruises.
Speaker Change: As we get to 'twenty five.
Speaker Change: Tariffs to the extent they are brought into place that's going to.
Speaker Change: I think caused some further near term kind of dislocation and confusion in the marketplace, but.
Speaker Change: near term, but having said that, I've never been more, again, I'm going to say again, about kind of where we are in our relatively soft kind of position, you know, into 2025, in the landscape, that we're actionable and we have the financial flexibility, and we've got some, you know, as I alluded to, some really interesting things kind of in the tech stack world that we're bringing to market about kind of where we are in our engineering for us kind of position, you know, it's, you know,
Speaker Change: But notwithstanding all of that I think to answer your kind of fundamental question on <unk>.
Speaker Change: More bullish about the prospects.
Speaker Change: For radius and kind of where we are in the cycle and all of those things.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: I feel really really good.
Speaker Change: Oh, that's that's good to hear.
Speaker Change: Maybe also.
Bohn Crain, Todd Macomber
Speaker Change: We could talk a little bit about the competitive landscape and how.
Speaker Change: You guys have seen your competitors have they.
Speaker Change: In comparison, and maybe again last cycle has there been more.
I guess like risk maturity from some.
Speaker Change: <unk> are they does everybody holding stand strong on pricing.
you know, I'm more bullish about the prospects, you know.
Speaker Change: The kind of facts.
Speaker Change: and I think that's where we are in the cycle and all of those things. Further near term, kind of dislocation and confusion in the market. I feel really good.
Speaker Change: Factors that they may decide on that.
Speaker Change: Yes, Im not sure I mean, I think it's I mean, it certainly remains a very very tough market out there.
Speaker Change: But notwithstanding all of that, I think to answer your fundamental question, I'm more bullish about the prospects for Radiant and where we are in the cycle and all of those things. And how you guys have seen your competitors.
Speaker Change: The shippers have been more aggressive in their pricing.
Speaker Change: Expectations.
Speaker Change: But.
Speaker Change: I think.
Speaker Change: I think we have and again not just us, but I think as an industry I think we've been.
Speaker Change: In comparison to maybe, again, last cycle, has there been more, um, risk, maturity?
Speaker Change: Kind of bouncing along the bottom here for more than a couple of quarters at this point.
Speaker Change: We could talk a little bit about the competitors, you know, is everybody holding stance, strong on pricing, you know, whatever the, kind of, factors are.
Speaker Change: And I see significantly more upside than downside in terms of where we where we go from here.
Speaker Change: that they may decide on, in comparison to maybe, again, last cycle. Yeah, I'm not saying... I think it's... I mean, it certainly remains a very, very, you know, tough market out there. Are they? The shippers have been more aggressive in pricing.
Speaker Change: Still.
Speaker Change: <unk>.
Speaker Change: Sure.
Speaker Change: At the end of the day, we this isn't.
Speaker Change: Directly related to the non asset based <unk> space, but within.
Speaker Change: Within a broader context, we still need more capacity to come out of the marketplace right So and.
whatever the expectations, factors.
Speaker Change: that they may decide on it. I don't, you know, I think.
Speaker Change: I think we have, and again not just us, but I think as an industry, I think we've been bouncing along the bottom here for more than a couple of quarters at this point.
Speaker Change: That's been an ongoing conversation for the last.
Speaker Change: Year or so.
Speaker Change: No.
Speaker Change: Quite a few.
Speaker Change: Asset based transports that are really really having a tough go in.
Speaker Change: And.
Speaker Change: We need that to kind of further resolve itself to get better alignment between supply and demand of transportation capacity and I think we're slowly getting there.
Bohn Crain, Todd Macomber
Speaker Change: But we still have a little ways to go.
Speaker Change: And maybe one more just on kind of the near term outlook for Q1.
Speaker Change: At the end of the day, we've been in an ongoing conversation for the last year or so that 3PL is based, but quite a few, within a broader context, asset-based transports that are really, really having a tough go.
Speaker Change: Kind of talk about what you guys maybe saw on January or.
And if theres anything that you may think that's happened so far and what do you think you could do for Q1.
Speaker Change: I mean, it's seasonally our slowest quarter.
Speaker Change: I think that we're starting to see a little uptick but nothing.
Kevin Gagne: It's going to it's going to play out we believe similar to last year and like bond, saying it.
Kevin Gagne: I'm looking at the numbers from what we posted for the for the month and we're seeing some strength in some areas.
Speaker Change: We need that to further resolve itself to get better alignment with the supply and demand and transportation capacity. I think we're slowly getting there.
Kevin Gagne: <unk> is one for instance.
Kevin Gagne: But by and large it's going to be a soft quarter.
Kevin Gagne: I think when we get to Q4, I think thats when things are going to hopefully start.
Kevin Gagne: Up ticking the tariffs is really anybody's guess right. That's the wildcard that I don't think we really know at this point, but.
Speaker Change: If there's anything odd that you may think has happened so far, what do you think you could do for Q1?
Here is a stuff note for this session.
Kevin Gagne: But that's what we're seeing we're seeing it.
It's going to be like bond, saying, it's we've got some headwinds compared to the.
Kevin Gagne: Compared to the sequentially yes.
Kevin Gagne: I wouldn't look to the year ago March quarter is more indicative of where we're likely to land.
Speaker Change: Perfect sounds good guys I appreciate the color.
Kevin Gagne: Yeah, you bet.
Speaker Change: We did have another question come in from Jeff Kaufman from vertical research partners.
Jeff: Jeff Your line of thank you.
Jeff Kaufman: Thanks, Bob Hey, Todd.
Jeff: Well first of all congratulation screenings.
Speaker Change: We're saying we're saying large it's going to be before you know, I think that's when things are going to compare to the chart sequentially, you know, but I but I wouldn't is really anybody right? You know, that's a year ago. March quarter is more indicative of at this point.
Speaker Change: I apologize I got on a little bit late but did you talk at all about currency.
Jeff: How currency.
Jeff: May or may not be impacting your market and I know you got a big Canadian operation how is that.
Speaker Change: But that's what we're seeing. We're seeing, you know, it's it's going to be like Bohn's saying. Perfect. Sounds good guys. I appreciate the color. Compared to this. Yeah, you bet. Compared to the sequentially. Yeah, but I, but I wouldn't look to the year ago, March quarter is more indicative of where we're at.
Jeff: Affecting as we think about first quarter comparison, our first quarter third quarter comparisons fourth quarter comparisons.
Jeff: Because we've had a lot of companies flagged currency.
Jeff: Having a bigger impact I think than people expected.
Jeff: Yes. It didn't have a huge EMEA did impact is still going to be wrong, but I ran the numbers and it wasn't.
Jeff, your line is live. Thank you.
Speaker Change: Thanks. Hey, Bohn. Hey, Todd. Well, first of all, congratulations. Greetings.
Jeff: Meaningful.
In regards to our.
Jeff: When we re translated into U S dollars and.
Jeff: The EBITDA.
Jeff: So.
Jeff: Last I'm just talking about this last quarter so.
Jeff: The numbers, we reported it was wasn't anything.
Jeff: It had a small impact is what I would say.
Jeff: Okay.
Jeff: That was my one thank you you bet.
Jeff: Thanks, Jeff.
Speaker Change: Thank you and that does conclude today's Q&A session I would now like to hand, the call back to bond Crane for closing remarks.
Speaker Change: I know you've got a big Canadian operation, how is that affecting, you know, as we think about first quarter comparison or third quarter comparisons, fourth quarter comparisons, because you've had a lot of companies flag currency.
Jeff: Alright.
John Crane: Let me close by saying that 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. We've created here at radiant at.
Speaker Change: and having a bigger impact, you know, so it, you know, last, yeah, it didn't have a huge impact, I mean, it did impact us, don't get me wrong, I ran the numbers and it wasn't anything, you know, it definitely had a small impact in regards to our, you know, what, you know, when we retransferred to the U.S. That was my one, thank you. And, you know, you bet, you bet, you know, so.
John Crane: 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.
John Crane: 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: Thank you, and that does conclude today's Q&A session. I would now like to have the call back to Bohn Crain for closing remarks.
John Crane: Thanks for listening and your support of Radiant logistics.
Bohn Crain: Let me close by saying that 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 we've created here at Radium.
Speaker Change: Thank you. This does conclude today's conference you may disconnect. Your lines at this time. Thank you for your participation.
Bohn Crain: At the same time, we intend to thoughtfully re-lever our balance sheet and do a combination of agent-station convergence, synergistic tuck-in acquisitions, and stock buyback through our multi-pronged approach to believe we will continue to create meaningful value for our shareholders.
Bohn Crain: At the same time, we intend to thoughtfully re-lever our balance sheets to a combination of agranium logistic conversions.
synergistic tuck-in acquisitions.
Speaker Change: Thank you. This does conclude today's conference. You may disconnect at this time. Thank you for your participation. 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. Thanks for listening and your support of Radiant Logistics.
Speaker Change: Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.