Radiant Logistics Achieves Solid Q4 2024 with Key Acquisitions

Financial Highlights for Q4 2024

Revenue and Gross Profit

Radiant Logistics reported $206.0 million in revenue for the fourth fiscal quarter ended June 30, 2024. While this represents a 11.3% decrease from the previous year's $232.2 million, it shows an 11.6% sequential improvement from Q3 2024, when the company reported $184.6 million.

Gross profit for Q4 2024 was $57.3 million, a 9.0% drop from $63.0 million in Q4 2023. However, gross profit increased by 17.4% compared to Q3 2024, which saw $48.8 million.

Adjusted gross profit, a non-GAAP measure, was $60.6 million, down 8.6% from the previous year's $66.3 million, but up 14.1% from Q3 2024’s $53.1 million.

Net Income and EBITDA

The company posted a net income of $4.8 million for Q4 2024, compared to $3.1 million for the same period in 2023. This marks a 54.8% year-over-year growth and a significant sequential increase of 785.7%, as the company faced a $0.7 million loss in Q3 2024.

Adjusted net income was $7.0 million in Q4 2024, a 7.7% increase from $6.5 million in Q4 2023, and a 94.4% sequential rise compared to $3.6 million in Q3 2024.

Adjusted EBITDA for Q4 2024 was $9.1 million, almost flat compared to $9.2 million in Q4 2023. However, adjusted EBITDA rose 75% sequentially from $5.2 million in Q3 2024. The adjusted EBITDA margin improved to 15.0%, up from 13.9% in Q4 2023 and 9.8% in Q3 2024.

Full-Year Financial Results for Fiscal 2024

For the fiscal year ended June 30, 2024, Radiant Logistics recorded $802.5 million in revenue, down from $1,085.5 million in the prior year. Net income dropped to $7.7 million, down from $20.6 million in 2023.

Adjusted net income was $22.6 million for 2024, down from $39.3 million in 2023. Meanwhile, adjusted EBITDA was $31.2 million, compared to $55.6 million in 2023. The company generated $17.3 million in cash from operations during the year.

Strategic Acquisitions and Growth

Recent Acquisitions

Radiant Logistics made several key acquisitions in fiscal 2024, including:

• Daleray Corporation in October 2023
• Select Logistics, Inc. in February 2024
• Viking Worldwide, Inc. in April 2024
• Cascade Transportation, Inc. and DVA Associates, Inc. in June 2024
• Foundation Logistics & Services, LLC in September 2024

These acquisitions strengthen Radiant's capabilities in high-tech, life sciences, cruise logistics, and oil and gas sectors. Each deal was structured with performance-based payments, similar to Radiant’s previous acquisitions.

Stock Buy-Back Program

Radiant purchased 726,449 shares of its common stock during fiscal 2024 at an average cost of $5.64 per share, spending a total of $4.1 million. The company had 46.8 million shares outstanding as of June 30, 2024.

CEO Commentary on Q4 and Year-End Results

Radiant Logistics' CEO Bohn Crain expressed optimism about the company’s future, citing the 785.7% increase in net income and sequential improvements in gross profit, adjusted net income, and EBITDA in Q4 2024. Crain believes the company is well-positioned for growth as market conditions improve.

Despite year-over-year challenges, Radiant generated $31.2 million in adjusted EBITDA and maintained a strong balance sheet with $24.9 million in cash on hand and no debt drawn from its $200 million credit facility.

Focus on Long-Term Growth

Radiant’s growth strategy involves organic expansion, acquisitions, and agent station conversions. The company completed three station conversions in fiscal 2024 and added two new teams through the acquisition of Cascade Transportation and DVA Associates. Crain emphasized Radiant’s commitment to creating value for shareholders through these initiatives.

Conclusion

Radiant Logistics has successfully navigated challenging freight markets, posting strong financial results in Q4 2024 and positioning itself for further growth. With multiple acquisitions, a robust balance sheet, and a strategic focus on long-term expansion, the company is well-equipped for future success in the global logistics industry.

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