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Category: Stock Market and Radiant Logistics
Date: 13 September 2019 Stock Price: $5.47 We take a look at the 4th quarter earnings release of their 2019 fiscal year of Radiant Logistics a third party logistics and multimodal transportation services group.
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About Radiant Logistics
Radiant Logistics, Inc. (www.radiantdelivers.com) is a comprehensive North American provider of third-party logistics and multimodal transportation services. Through its comprehensive service offering, Radiant provides domestic and international freight forwarding services, truck and rail brokerage services and other value-added supply chain management services, including customs brokerage, order fulfillment, inventory management and warehousing to a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world.
The image below shows the industries served by Radiant Logistics, which includes aviation and automotive, oil & gas, retail as well as industrial and farms.
The image below shows the industries served by Radiant Logistics, which includes aviation and automotive, oil & gas, retail as well as industrial and farms.
Financial overview of Radiant Logistics' latest earnings report
The numbers we are interested in (for the quarter):
- Revenue: $204.648 million (down from $233.805 million from the same quarter of the previous year)
- Radiant Logistics revenue declined by -12.7% over the last year
- Radiant Logistics revenue declined by -12.7% over the last year
- Total operating expenses: $198.381 million (down from $227.134 million for the same quarter of the previous year)
- Radiant Logistics operating expenses declined by -12.7%
- Radiant Logistics operating expenses declined by -12.7%
- Net earnings: $4.389 million (down from $5.218 million for the same quarter of the previous year)
- Diluted earnings per share: $0.09 (unchanged from $0.09 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 51.391 million (up from 50.557 million for the same quarter of the previous year)
- Cash and cash equivalents: $5.420 million
- Cash and cash equivalents makes up 2.02% of Radiant's total assets
- Accounts receivable: $93.123 million
- Accounts receivable makes up 34.7% of Radiant Logistics total assets
- Total stockholders equity: $127.280 million
- Stockholders equity per share: $2.47
- Radiant Logistics trades at 2.21 times its stockholders equity per share
- Stockholders equity per share: $2.47
Radiant Logistics' management commentary on the results and earnings guidance
BELLEVUE, WA September 12, 2019 – Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics and multimodal transportation services company, today reported financial results for the three and twelve months ended June 30, 2019
CEO Comments “We are very pleased to report another year of solid financial results for fiscal 2019”, said Bohn Crain, Founder and CEO. “We set new records across several key financial metrics including record revenues of $890.5 million, up $48.1 million or 5.7%, record net revenues of $230.1 million up $30.0 million or 15.0%, record net income attributable to common stockholders of $13.7 million, up $5.6 million or 69.1%, record adjusted net income attributable to common stockholders of $26.6 million, up $11.8 million or 79.7%, and record Adjusted EBITDA of $40.8 million, up $11.6 million or 39.7%. In addition, we also set a new record in terms of our Adjusted EBITDA margins increased 310 basis points to 17.7% up from 14.6% over the comparable prior year period. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further expansion in our Adjusted EBITDA margins as we continue to scale the business and leverage the benefits of our on-going technology investments.
In the U.S., for our fiscal year ended June 30, 2019 we reported revenues of $779.7 million, up $44.3 million or 6.0% and net revenues of $198.1 million, up $23.4 million or 13.4% over the comparable prior year period. U.S. transportation net revenues of $193.8 million were up $21.9 million or 12.7% from the comparable prior year period. U.S. value added services net revenues of $4.3 million were up $1.5 million or 53.6%. In Canada we reported revenues of $111.3 million, up $3.0 million or 2.8% and net revenues of $32.0 million, up $6.6 million or 26.0% over the comparable prior year period. Canada’s transportation net revenues of $19.7 million were up $2.8 million or 16.6% from the comparable prior year period. Canada’s value added services net revenues of $12.3 million were up $3.8 million or 44.7%.” Crain continued: “We are also pleased with our results for the fourth fiscal quarter ended June 30, 2019 given what was generally recognized as a softer freight environment,” said Bohn Crain, Founder and CEO, “Although we saw a reduction in revenues during the quarter, the economic impact to the company was generally off-set by improving net revenue margins, up 354 basis points, and a reduction of $1.2 million in operating partner commissions, which resulted in Adjusted EBITDA of $11.0 million, up $1.1 million or 11.1% over the comparable prior year period on relatively flat net revenues. In addition, we also saw improvement in our Adjusted 2 EBITDA margins, which increased 189 basis points to a record 18.8% from 16.9% for the comparable prior year period. In addition, we also reported net income attributable to common stockholders of $4.5 million, up $0.2 million and adjusted net income attributable to common shareholders of $7.5 million, up $1.8 million or 31.6% for the comparable prior year period.
The business also continues to deliver strong cashflows generating $6.3 million in cash from operations from the three months ended June 30, 2019 and generating $39.8 million in cash from operations for the year ended June 30, 2019. Having retired the $21.0 million preferred stock last December, we continue to pay down debt and as of the quarter ended June 30, 2019 we had approximately $13.8 million drawn on the Company’s $75.0 million credit facility and total net debt of approximately $31.2 million, less than one times our trailing twelve month adjusted EBITDA of $40.8 million. Our now more than 10-year first market advantage in executing our multi-brand strategy in consolidating agent-based forwarding networks, ongoing investment in technology and low leverage on our balance sheet puts us in a unique position to support further consolidation in the marketplace.
We are patiently persistent in the pursuit of this long-term vision which we believe, over time, will deliver meaningful value for shareholders, our operating partners and the end customers that we serve.”
CEO Comments “We are very pleased to report another year of solid financial results for fiscal 2019”, said Bohn Crain, Founder and CEO. “We set new records across several key financial metrics including record revenues of $890.5 million, up $48.1 million or 5.7%, record net revenues of $230.1 million up $30.0 million or 15.0%, record net income attributable to common stockholders of $13.7 million, up $5.6 million or 69.1%, record adjusted net income attributable to common stockholders of $26.6 million, up $11.8 million or 79.7%, and record Adjusted EBITDA of $40.8 million, up $11.6 million or 39.7%. In addition, we also set a new record in terms of our Adjusted EBITDA margins increased 310 basis points to 17.7% up from 14.6% over the comparable prior year period. As we have previously discussed, our incremental cost of supporting that next dollar of gross margin is very small and we are very excited about our opportunity to drive further expansion in our Adjusted EBITDA margins as we continue to scale the business and leverage the benefits of our on-going technology investments.
In the U.S., for our fiscal year ended June 30, 2019 we reported revenues of $779.7 million, up $44.3 million or 6.0% and net revenues of $198.1 million, up $23.4 million or 13.4% over the comparable prior year period. U.S. transportation net revenues of $193.8 million were up $21.9 million or 12.7% from the comparable prior year period. U.S. value added services net revenues of $4.3 million were up $1.5 million or 53.6%. In Canada we reported revenues of $111.3 million, up $3.0 million or 2.8% and net revenues of $32.0 million, up $6.6 million or 26.0% over the comparable prior year period. Canada’s transportation net revenues of $19.7 million were up $2.8 million or 16.6% from the comparable prior year period. Canada’s value added services net revenues of $12.3 million were up $3.8 million or 44.7%.” Crain continued: “We are also pleased with our results for the fourth fiscal quarter ended June 30, 2019 given what was generally recognized as a softer freight environment,” said Bohn Crain, Founder and CEO, “Although we saw a reduction in revenues during the quarter, the economic impact to the company was generally off-set by improving net revenue margins, up 354 basis points, and a reduction of $1.2 million in operating partner commissions, which resulted in Adjusted EBITDA of $11.0 million, up $1.1 million or 11.1% over the comparable prior year period on relatively flat net revenues. In addition, we also saw improvement in our Adjusted 2 EBITDA margins, which increased 189 basis points to a record 18.8% from 16.9% for the comparable prior year period. In addition, we also reported net income attributable to common stockholders of $4.5 million, up $0.2 million and adjusted net income attributable to common shareholders of $7.5 million, up $1.8 million or 31.6% for the comparable prior year period.
The business also continues to deliver strong cashflows generating $6.3 million in cash from operations from the three months ended June 30, 2019 and generating $39.8 million in cash from operations for the year ended June 30, 2019. Having retired the $21.0 million preferred stock last December, we continue to pay down debt and as of the quarter ended June 30, 2019 we had approximately $13.8 million drawn on the Company’s $75.0 million credit facility and total net debt of approximately $31.2 million, less than one times our trailing twelve month adjusted EBITDA of $40.8 million. Our now more than 10-year first market advantage in executing our multi-brand strategy in consolidating agent-based forwarding networks, ongoing investment in technology and low leverage on our balance sheet puts us in a unique position to support further consolidation in the marketplace.
We are patiently persistent in the pursuit of this long-term vision which we believe, over time, will deliver meaningful value for shareholders, our operating partners and the end customers that we serve.”
Radiant Logisitcs (NYSE: RLGT) stock price history
The image below, obtained from Google shows the stock price history of Radiant logistics over the last 5 years. And its been a very volatile but overall very good time for Radiant stockholders over the last 5 years. 5 years ago the stock was trading at around $3.30 and its currently trading at $5.47. That's a return of 65.8% offered by the stock of Radiant logistics over the last 5 years. Interestingly the stock is trading at close to the mid point between its 52 week low and 52 week high. So one can assume the sentiment and momentum over the short term for the stock is neutral with no catalyst for driving the stock price higher or lower.
Radiant Logistics (NYSE: RLGT) latest stock valuation
So what is Radiant Logistics stock worth based on their latest earnings release? Based on Radiant Logistics earnings release our valuation model provides a target (full value) price for Radiant Logistics of $5.70 a stock. We therefore believe Radiant Logistics is fully valued at its current price. We therefore advise long term investors or value investor not invest in the stock at the current price. We would suggest looking to enter the stock at, at least 10% below our target (full value) price of $5.70. so a good buying price would be around $5.10 and below