Radiant Logistics, Inc.

Greetings. Welcome to Radiant Logistics financial discussion for second fiscal quarter ended December 31st, 2024. This afternoon, Bon Crane, Radiant Logistics founder and CEO, and Radiant's Chief Financial Officer, Todd McCumber, We'll provide a general business update and discuss financial results for the company's second fiscal quarter and six months ended December 31st, 2024. 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 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, Bon Crane.

Thanks, Paul. Good afternoon, everyone, and thank you for joining in on today's call. With the benefit of our diverse service offering, we continue to deliver solid financial results, and generated $12 million in adjusted EBITDA for our second fiscal quarter ended December 31, 2024. These results are generally ahead of results from the comparable prior year period, as well as our most recent previous quarter ended September 30, 2024. We continue to take great pride in our work to support humanitarian and relief-related projects around the globe. Our results this quarter reflect our support of a number of such projects, including chartering 49 flights to bring approximately 8 million units of IV fluid to the U.S. as a result of the national shortages resulting from Hurricane Milton. Notwithstanding these strong results for the quarter, 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, 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. 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 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. 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. 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 TCV Transportation in St. Louis, Missouri. 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 in their exit strategies. We look forward to providing further updates as we continue to progress along these lines. With that said, I'll now turn it over to Todd Maycumber, our Chief Financial Officer, 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 31st, 2024. For the three months ended December 31st, 2024, we reported net income attributable to Radiant Logistics of $6,467,000 on 264.5 million of revenues or 14 cents per basic and 13 cents for fully diluted share. For the three months ended December 31st, 2023, we reported net income attributable to Radiant Logistics of $985,000 on 201.1 million of revenues, or 2 cents per basic and fully diluted share. This represents an increase of approximately $5,482,000 net income over the comparable prior year period. or 556.5%. For adjusted net income, we reported $10,695,000 for the three months ended December 31st, 2024, compared to adjusted net income of $5,496,000 for the three months ended December 31st, 2023. This represents an increase of approximately $5,199,000, or approximately 94.6%. For adjusted EBITDA, we reported $12,016,000 for the three months ended December 31st, 2024, compared to adjusted EBITDA of $7,708,000 for the three months ended December 31st, 2023. This represents an increase of approximately $4,308,000, or approximately 55.9%. For the six months period, the six months ended December 31st, 2024, we reported net income attributable to radiant logistics of $9,843,000 on 468.1 million of revenues, or 21 cents per basic and 20 cents for fully diluted share. The six months ended December 31st, 2023, we reported net income attributable to radiant logistics of $3,607,000 on 411.9 million of revenues, or $0.08 per basic and $0.07 per fully valued share. This represents an increase of approximately $6,236,000 over the comparable prior year period, or 172.9%. For adjusted net income, we reported $18,578,000 the six months ended December 31st, 2024, compared to adjusted net income of $12,046,000 for the six months ended December 31st, 2023. This represents an increase of approximately $6,532,000 or approximately 54.2%. For adjusted EBITDA, we reported $21,468,000 for the six months ended December 31st, 2024, compared to adjusted EBITDA of $16,874,000 for the six months ended December 31st, 2023. This represents an increase of approximately $4,000,000 $594,000, or approximately 27.2%. With that, I will turn the call over to our moderator to facilitate any Q&A from our callers.