Radiant Logistics, Inc.

and welcome to the Radiant Logistics third quarter fiscal year 2025 earnings call. At this time, all participants are on a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. This afternoon, Bon Crane, Radiant Logistics founder and Chief Executive Officer, and Radiant's Chief Financial Officer, Todd McCumber, We'll provide a general business update and discuss financial results for the company's third fiscal quarter and nine months ended March 31st, 2025. 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 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 in the past and may in the future be identified in the company's SEC filings and other public announcements that 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 Radian'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. With the benefit of our diverse service offering, we continue to deliver solid financial results and generated $9.4 million in adjusted EBITDA for our third fiscal quarter ended March 31, 2025, which is up $4.2 million and just over 80% relative to the comparable prior year period. The comparable year-over-year improvement in adjusted EBITDA was driven through a combination of improvements in our base business operations, along with contributions from our recent acquisitions. For the quarter ended March 31, our legacy US operations generated 1.5 million in incremental adjusted EBITDA, while our legacy Canadian operations generated 0.5 million in incremental adjusted EBITDA. An additional 2 million in adjusted EBITDA for the quarter ended March is driven principally by our greenfield acquisitions of Seattle-based Cascade Transportations from June of 2024 Houston-based Foundation Logistics and Services from our September 24 acquisition, St. Louis-based TCB Transportation from our December 2024 acquisition, and Los Angeles-based Transcon Shipping from our March 25 acquisition, along with the conversion of our strategic operating partner, Miami-based Select Logistics, in February of 2024. Notwithstanding the strong results for the quarter ended March 31, we are expecting some near-term volatility in our results tied to the ebb and flow of the ongoing U.S. negotiations around trade and tariffs, and estimate that approximately 25 to 30 percent of our gross margins for the March quarter would have been impacted by the recently announced tariffs. With that said, we also expect that any near-term slowdown will likely result in a corresponding bullwhip effect with the surge in global trade as these tariff disputes are brought to rest and are encouraged by the de-escalation of U.S. and China trade tensions that have occurred over the weekend. In any event, we intend to remain nimble in our response to tariff announcements by the U.S. administration and continue to support our customers in navigating these quickly evolving markets. and executing thoughtful supply chain strategies to provide our customers with competitive advantage. As previously discussed, we believe we are well positioned with a durable business model, diverse service offering, and strong balance sheet to navigate through a slower freight market. We continue to enjoy a strong balance sheet with approximately 19 million of cash on hand as of March 31. and only $15 million drawn on our $200 million credit facility. At the same time, we remain focused on the long term, staying true to our strategy to deliver profitable growth through a combination of organic and acquisition initiatives, while thoughtfully relevering 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 California-based Transcon Shipping, the conversion of our Pennsylvania-based strategic operating partner, USA Logistics and USA Carriers, which is being combined with our existing Radian operations in Philadelphia. and the conversion of our Texas-based strategic operating partner, Universal Logistics, which is being combined with our existing Radiant operation in Houston. We believe these three transactions are representative of our broader pipeline of opportunities, which includes both greenfield acquisitions, 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. With that, I'll now turn it over to Todd Maycombe, 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 nine months ended March 31st, 2025. For the three months ended March 31st, 2025, we reported net income attributable to Radiant Logistics of $2,541,000 on $214 million of revenues for five cents per basic and fully diluted share. 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 revenue or two cents per basic and fully diluted share. This represents an improvement of approximately $3,244,000 of net income over the comparable prior year period. For adjusted net income, we reported $6,881,000 for the three months ended March 31, 2025, compared to adjusted net income of $3,586,000 for the three months ended March 31, 2024. This represents an increase of approximately $3,295,000, or approximately 91.9%. For adjusted EBITDA, we reported $9,398,000 for the three months ended March 31, 2025, compared to adjusted EBITDA of $5,208,000 for the three months ended March 31, 2024. This represents an increase of approximately $4,190,000, or approximately 80.5 percent. Moving along to the nine-month results, for the nine months ended March 31st, 2025, we reported net income attributable to Radian Logistics of $12,384,000 on 682.1 million of revenues, or 26 cents per basic and 25 cents per fully diluted share. The nine months ended March 31, 2024, reported net income attributable to Radiant Logistics of $2,904,000 on $596.4 million of revenues for $0.06 per basic and fully diluted share. This represents an increase of approximately $9,480,000 over the comparable prior year period, or 326.4%. For adjusted net income, we reported $25,459,000 for the nine months ended March 31st, 2025, compared to adjusted net income of $15,632,000 for the nine months ended March 31st, 2024. This represents an increase of approximately $9,827,000 or approximately 62.9%. For adjusted EBITDA, we reported $30,866,000 for the nine months ended March 31st, 2025, compared to adjusted EBITDA of $22,083,000 for the nine months ended March 31st, 2024. This represents an increase of approximately $8,783,000, or approximately 39.8%. With that, I will turn the call over to our moderator, to facilitate any Q&A from our callers.