Radiant Logistics, Inc.

This afternoon, Bond Crane, Radiant Logistics founder and CEO, and Radiant's Chief Financial Officer, Todd McCumber, will discuss financial results for the company's second fiscal quarter and six months ended December 31, 2021. 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 within the meanings 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 possible to identify all 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 in the Radiant's 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, Bon Crane.

Thanks, Matthew. Good afternoon, everyone, and thank you for joining in on today's call. We don't have flowers or chocolates to offer today on Valentine's, but we do have some very good news to share as we continued our trend with another quarter of record financial results for the December quarter. We posted record revenues of $332.8 million, up $114 million, or 52.1%. Record net revenues of $71.6 million, up $16.3 million, or 29.5 percent. Record net income attributable to Radian of $6.9 million, up $3.1 million, or 81.6 percent. Record adjusted net income of $12.3 million, up $3.7 million, or 43 percent. And record adjusted EBITDA of $17.3 million, up $4.8 million, or 38.4 percent. In addition, we also saw improvement in our adjusted EBITDA margin, which increased 140 basis points to a record 24.1%, up from 22.7% in the comparable prior year period. These results reflect the benefit of our scalable non-asset-based business model, diversity of our service offerings, and our ability to quickly respond to changing market dynamics and support our customers in this capacity-constrained market. In addition, we delivered these record results while working through the challenges presented by our previously disclosed ransomware event that occurred on December 8th. Also note that these record results reflect only a one-month contribution from Navigate, given the fact that we did not complete the transaction until November 30th. With offices in the Twin Cities and Chicago, as well as Shanghai, The Navigate platform itself represents an exciting new opportunity for the Radiant network and the end customers that we serve. In addition to solidifying our presence in Shanghai, Navigate also strengthens our international service offering, particularly in the areas of customs brokerage, ocean forwarding, and drainage services, and brings with it a proprietary technology platform to facilitate global trade management. These new global trade management capabilities will be made available to the entire Radiant network to provide our customers with purchase order and vendor management tools that unlock SKU level visibility from the manufacturing floor in Asia through final delivery here in the U.S. With both the enhanced service offerings and proprietary technology, we believe we will further differentiate ourselves in the marketplace and be even better positioned to provide additional support for both current and prospective customers. In addition to progress on the acquisition front, we also continue to put capital to work in our stock buyback program and have now purchased $6.3 million in stock through the six months into December 31 of 2021. As we previously discussed, we believe that our current share price does not accurately reflect Radiant's intrinsic value or long-term growth prospects. And we expect to continue to deploy our capital through a combination of strategic acquisitions and stock buybacks. It is also worth pointing out that the record results that we've delivered over each of these last several quarters have been fueled almost exclusively by organic growth. Looking forward, 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 have built here at Radian. At the same time, we have begun to thoughtfully relever our balance sheet, and through a combination of strategic acquisition and stock buybacks, we believe we are creating meaningful, intrinsic value for shareholders that has yet to be recognized in our stock price. With that, I'll turn it over to Todd Maycumber, our CFO, to walk us through our detailed financial results, and then we'll open it up for some Q&A.

Thanks, Vaughn, 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, 2021. For the three months ended December 31, 2021, we reported net income attributable to Radiant Logistics of $6,948,000 on 332.8 million of revenues or 14 cents per basic and fully diluted share. Please note that this quarter included approximately $750,000 of expense related to the cyber event disclosed in December. For the three months ended December 31st, 2020, we reported net income attributable to Radiant Logistics of $3,812,000 on 218.8 million of revenues, or eight cents per basic and seven cents per fully diluted share. This represents an increase of approximately $3,136,000 of net income over the comparable prior year period, or 82.3%. For adjusted net income, we reported $12,317,000 for the three months ended December 31st, 2021, compared to adjusted net income of $8,642,000 for the three months ended December 31st, 2020. This represents an increase of approximately $3,675,000 or approximately 42.5%. For adjusted EBITDA, we reported $17,251,000 for the three months ended December 31st, 2021 compared to adjusted EBITDA of $12,531,000 for the three months ended December 31st, 2020. This represents an increase of approximately $4,720,000 or approximately 37.7%. Moving along to the six month results. For the six months ended December 31st, 2021, we reported net income attributable to Radiant Logistics of $14,027,000 on 618.9 million of revenues are 28 cents per basic and fully diluted share. Please note this period also included the $750,000 expense related to the cyber event disclosed in December. The six months ended December 31st, 2020. We reported net income attributable to RE logistics of $6,900,000 on 394.7 million of revenues, or 14 cents per basic and fully diluted share. This represents an increase of approximately $7,127,000 over the prior comparable year period, or approximately 103.3%. For adjusted net income, we reported $22,879,000 for the six months ended December 31st, 2021, compared to adjusted net income of $15,159,000 for the six months ended December 31st, 2020. This represents an increase of approximately $7,720,000, or approximately 50.9%. For adjusted EBITDA, we reported $31,798,000 for the six months ended December 31st, 2021, compared to adjusted EBITDA of $21,753,000 for the six months ended December 31st, This represents an increase of approximately $10,045,000 or approximately 46.2%. With that, I will turn the call back over to our moderator to facilitate any Q&A from our callers.