Radiant Logistics, Inc.

This afternoon, Bon Crane, Radiant Logistics founder and CEO, and Radiant Chief Financial Officer, Todd Maycumber, will provide a general business update and discuss financial results for the company's third fiscal quarter and nine months, ended March 31, 2024. Following their comments, we will open the call to questions. This conference is scheduled for 30 minutes. This conference may include forward-looking statements within the meaning of the Securities Act 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 factors that may cause a 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 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. Sir, the floor is yours.

Thank you. Good afternoon, everyone, and thank you for joining in on today's call. Our results for the quarter ended March 31 of 2024. continue to reflect the difficult freight markets being experienced by the entire industry as well as our own operations. This extended period of weak freight demand combined with excess capacity continues to negatively impact not only our current results but also the year-over-year comparison to our record results for prior year period. With that said, we saw a very difficult January and then steadily improvements throughout the quarter, and we expect to report sequential quarterly improvement moving forward as markets find their way to more sustainable and normalized levels. Notwithstanding the tough year-over-year comparisons, we continue to deliver meaningfully positive results and have generated $22.1 million in adjusted EBITDA and $16 million in net cash for operations for the nine months ended March 31 of 2024. In addition, we continue to enjoy a strong balance sheet, finishing the quarter with approximately $31.2 million of cash on hand and 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 the same time, we remain focused on delivering profitable growth through a combination of organic and acquisition initiatives, and thoughtfully relevering our balance sheet through a combination of agent station 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. In this regard, we are very excited about our recent agent station conversions with the acquisition of Delray in October of 2023 and the select businesses in February of 2024, which will combine to solidify our offering to support the cruise line industry in South Florida, along with our most recent acquisition of Minnesota-based Viking Worldwide in April of 2024. We launched Radian in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition and the built-in exit strategy available to the entrepreneurs participating in our network. We believe these three transactions are representative of a broader pipeline of opportunities inherent in our agent-based network and we look forward to supporting other strategic operating partners when they are ready to begin their transition from an agency to company-owned location. With that said, I'll now turn it over to Todd Maycumber, our CFO, to walk through the details of our 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, adjusted EBITDA, for the three and nine months ended March 31st, 2024. For the three months ended March 31st, 2024, we reported a net loss attributable to Radiant Logistics of $703,000 on 184.6 million of revenues or two cents per basic and fully diluted share. For the three months ended March 31st, 2023, we reported net income attributable to Radiant Logistics of $4,183,000 on $244.2 million of revenues for $0.09 per basic and $0.08 per fully diluted share. This represents a decrease of approximately $4,886,000 of net income over the comparable prior year period. For adjusted net income, we reported $3,586,000 for the three months ended March 31, 2024, compared to adjusted net income of $8,221,000 for the three months ended March 31, 2023. This represents a decrease of approximately $4,635,000, or approximately 56.4%. For adjusted EBITDA, we reported $5,208,000 for the three months ended March 31st, 2024, compared to adjusted EBITDA of $11,560,000 for the three months ended March 31st, 2023. This represents a decrease of approximately $6,352,000 or approximately 54.9%. Moving along to the nine months, For the nine months ended March 31st, 2024, we reported net income attributable to Radiant Logistics of $2,904,000 on $596.4 million of revenues or $0.06 per basic inflow share. For the three months ended March 31st, we reported net income attributable to Radiant Logistics of $17,452,000 on $853.3 million of revenues or $0.36 for a basic of 35 cents per fully diluted share. This represents a decrease of approximately $14,548,000 over the comparable prior year period, or 83.4%. For adjusted net income, we reported $15,632,000 for the nine months ended March 31st, 2024, compared to adjusted net income of $32,845,000 for the nine months ended March 31st, 2023. This represents a decrease of approximately $17,213,000, or approximately 52.4%. For adjusted EBITDA, we reported $22,083,000 for the nine months ended March 31, 2024, compared to adjusted EBITDA of $46,434,000 for the nine months ended March 31, 2023. This represents a decrease of approximately $24,351,000 or approximately 52.4%. With that, I will turn the call back over to our moderator to facilitate any Q&A from our call.