Radiant Logistics, Inc.

This afternoon, Bond Crane Radiant Logistics founder and CEO and Radiant's chief financial officer, Todd Maycumber, will provide a general business update and discuss financial results for the company's first fiscal quarter ended September 30, 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 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 those 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, 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.

Thank you. Good afternoon, everyone, and thank you for joining in on today's call. While the slower freight markets persist, we continue to deliver solid financial results and generated $9.5 million in adjusted EBITDA for the fiscal quarter ended September 30, 2024, which is generally in line with results from the comparable prior year period, as well as our most recent previous quarter ended June 30, 2024. And although we believe our industry will likely continue to face market headwinds into 2025, we do expect to benefit from project type opportunities over the near term, that should fortify our results while we wait for a more durable broad-based recovery. 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. We continue to enjoy a strong balance sheet with approximately $10 million in cash on hand as of September 30, 2024, no meaningful debt, and a virtually 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 relevering our balance sheet through a combination of strategic operating partner conversions, strategic 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 and the conversion of our Michigan-based strategic operating partner location, Focus Logistics, which is combining with our existing Radian operations in Detroit. We believe these two transactions are representative of our broader pipeline of opportunities, which includes both greenfield acquisitions i.e., companies not currently part of our network, as well as acquisition opportunities inherent in our agent-based forwarding network where we can support our current operating partners in their exit strategies. We look forward to providing further updates as we progress along these lines. With that, I'll now turn it over to Todd Maycumber, our CFO, to walk us through our detailed financial results, and then we'll open it up for Q&A.

Thanks, Bon, and good afternoon, everyone. Today we will be discussing our financial results, including adjusted net income and adjusted EBITDA for the three months ended September 30th, 2024. For the three months ended September 30th, 2024, we reported net income attributable to Radiant Logistics of $3,376,000 on $203.6 million of revenues, or $0.07 per basic and fully diluted share. which includes a million-dollar gain on litigation. For the three months ended September 30th, 2023, we reported net income attributable to Radiant Logistics of $2,622,000 on $210.8 million of revenues, or six cents per basic and five cents per fully diluted share. This represents an increase of approximately $754,000 of net income over the comparable prior year period, or 28.8%. For adjusted net income, we reported $7,883,000 for the three months ended September 30th, 2024, compared to adjusted net income of $6,549,000 for the three months ended September 30th, 2023. This represents an increase of approximately $1,334,000, or approximately 20.4%. For adjusted EBITDA, we reported $9,452,000 for the three months ended September 30th, 2024, compared to adjusted EBITDA of $9,167,000 for the three months ended September 30th, 2023. This represents an increase of approximately $285,000, or 3.1%. With that, I will turn the call back over to our moderator, to facilitate in the Q&A from our callers.