Radiant Logistics, Inc.

This afternoon, Bond Crane, Radian Logistics founder and CEO, and Radian's Chief Financial Officer, Todd Makenber, will discuss financial results for the company's third fiscal quarter and nine months ended March 31, 2022. 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 meaning 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 SEC filings 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, Vaughn Crane.

Thanks, Michonne. Thank you. Good afternoon, everyone, and thank you for joining in on today's call. We are very pleased to continue our trend and report another quarter of record financial results for the March quarter. It was nothing short of a spectacular quarter with us reporting new records for virtually every financial metric on which we report. Revenues, net revenues, net income, adjusted net income, EBITDA, adjusted EBITDA, EBITDA margin, earnings per share, and adjusted earnings per share. All records. Our business remains quite strong across our various service offerings, with particularly strong showing this quarter in our project charter business and the first full quarterly contribution from our December 2021 acquisition of Navigate. Across the board, in our forwarding operations at both our company-owned and strategic operating partner locations, our Canadian operations, and our U.S. brokerage operations, each and every group is making a meaningful contribution to our collective success. We are particularly proud that during the corridor, the Radiant team had the opportunity to continue to assist in COVID relief efforts providing mission-critical support to move COVID test kits on behalf of the United States Department of Health and Human Services. The mission, including coordination of cargo at origin, uplift, and delivery, involved the chartering of 24 aircraft flying 85.4 million COVID test kits to the interior of the U.S. for final mile delivery and ultimate distributions. The program details included over 474,000 cartons of test kits on these 24 flights, followed by the safe and speedy transfer of the kits to over 230 53-foot trailers for delivery to strategic centers in the U.S., with the ultimate destination into the hands of the American people. In addition, we remain very excited about the opportunities made available to us through our acquisition of Navigate, In addition to solidifying our presence in Shanghai, Navigate also strengthens our international services offering, particularly in the areas of customs brokerage, ocean forwarding, and drainage services, and brings to us a robust global trade management capability. 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 global trade management 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 moving forward. I will leave the detailed financial reporting to Todd, but it is worth noting that we have now generated $55 million in adjusted EBITDA on 1.1 billion, that's with a B, billion in revenues through the first nine months of our fiscal year. This is a very exciting milestone for Radiant and a direct result of the dedication of our employees and operating partners, the diversity of our service offerings, and the durability of our scalable non-asset based business model. For the trailing 12 months into March 31 of 2022, we have now reported a record $69.5 million in adjusted EBITDA on $1.3 billion in revenues. We continue to deliver these record results with relatively modest leverage on our balance sheet with net debt of approximately $76 million on almost $70 million in trailing 12-month adjusted EBITDA. And while it is difficult to predict exactly what we should expect for next year, we do believe that Radiant's new normal is meaningfully stronger than what the market is giving us credit for, and we believe this is contributing to the current disconnect between the underlying value of our stock and our current stock price. As we previously discussed, we do not believe that our current stock price accurately reflects Radiant's intrinsic value or long-term growth prospects. particularly given our unlevered balance sheet, and therefore represents an excellent investment opportunity for both the company and our shareholders. With our stock price being non-responsive to our expanding earnings power, this disparity continues to grow. Accordingly, and in addition to our continued acquisition efforts, we expect to be active in the repurchase of our stock and take advantage of the opportunity being presented to us in this disconnect between the underlying value of our stock and our current stock price. In this regard, we renewed our stock buyback program in February of this year with authority to purchase up to 5 million shares through December of 2023. Hopefully, our continuing strong performance and strong balance sheet will begin to register with investors, and we will begin to close the valuation gap between Radiant and its peers. Quite frankly, I believe we deserve it, and we've earned it through the demonstrated durability of our business model, through the challenges of the pandemic, and our ongoing delivery of what is now four consecutive quarters of record results. With that, I'll turn it over to Todd Maycumber, our CFO, to walk us through our detailed financials, and then we'll open it up to some Q&A.

Thanks, Vaughn, and good afternoon, everyone. Today, we will be discussing our financial results. including adjusted net income, adjusted EBITDA, for the three and nine months ended March 31, 2022. For the three months ended March 31, 2022, we reported adjusted net income attributable to Radiant Logistics of $14,339,000 on $460.9 million of revenues, or $0.29 per basic and $0.28 per fully diluted share. Please note this quarter included approximately a $2 million gain related to change in fair value of the interest rate swap contracts, and more meaningfully, the quarter was approximately with $62 million of COVID-related charter business. For the three months ended March 31, 2021, we reported net income attributable to Radiant Logistics of $4,984,000 on $236.5 million of revenues or 10 cents per basic and fully diluted share. This represents an increase of approximately $9,355,000 of net income over the comparable prior year period, or 187.7%. For adjusted net income, we reported $16,828,000 for the three months ended March 31, 2022, compared to adjusted net income of $9,148,000 for the three months ended March 31, 2021. This represents an increase of approximately $7,680,000 or approximately 84%. For adjusted EBITDA, we reported $23,596,000 for the three months ended March 31, 2022 compared to adjusted EBITDA of $12,885,000 for the three months ended March 31, 2021. This represents an increase of approximately $10,711,000 for approximately 83.1%. I'd also like to call out the increase in adjusted EBITDA margin as a percentage of net revenues, something Bon and I track regularly, increasing 510 basis points from 22.7% to 27.8%. Moving along to the nine-month results, For the nine months ended March 31, 2022, we reported net income attributable to Radiant Logistics of $28,366,000 on $1,080,000 representing 57 cents per basic and 56 cents for fully diluted share. Please note this period included four months of our recent acquisition of Navigate, significant charter business captured in the current quarter, slightly offset by a million in the cyber event disclosed in December. For the nine months ended March 31, 2021, we reported net income attributable to Radiant Logistics of $11,884,000 on $631.2 million of revenues for $0.24 per basic and $0.23 per fully diluted share. This represents an increase of approximately $16,482,000 with a comparable prior year period or 138.7%. For adjusted net income, we reported $39,708,000 the nine months ended March 31, 2022, compared to adjusted net income of $24,308,000 for the nine months ended March 31, 2021. This represents an increase of approximately $15,400,000, or approximately 63.4%. For adjusted EBITDA, we reported $55,396,000 for the nine months ended March 31, 2022, compared to adjusted EBITDA of $34,640,000 for the nine months ended March 31, 2021. This represents an increase for approximately $20,756,000, or approximately 59.9%. With that, I will turn the call back over to our moderator, to facilitate any Q&A from our callers.