BELLEVUE, Wash., Nov. 14, 2006 (PRIMEZONE) -- Radiant Logistics, Inc. (OTCBB:RLGT), a domestic and international freight forwarding and logistics services company, today reported financial results for the three months ended September 30, 2006.
For the three months ended September 30, 2006, Radiant reported net income of $160,000 on $14.4 million of revenues, or $0.00 per basic and fully diluted share. For the three months ended September 30, 2005, when it remained in the development stage, the Company reported no revenues and a net loss of $15,000.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization) of $398,000 for the three months ended September 30, 2006, compared to an adjusted EBITDA loss of $14,000 for the comparable prior year period. A reconciliation of our adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.
Radiant completed its platform acquisition effective January 1, 2006, when it purchased Airgroup Corporation ("Airgroup"), a Seattle, Washington-based, company providing a full range of domestic and international freight forwarding services. Founded in 1987, Airgroup services a diversified account base including manufacturers, distributors and retailers through its extensive network of exclusive agent offices across North America.
The Company has also provided additional prior period analysis using pro forma results of operations presented as if Radiant had acquired Airgroup as of July 1, 2005 which is included on the Company's Form 10-Q for the quarter ended September 30, 2006 and filed November 14, 2006.
"Radiant posted another profitable quarter with $14.4 million in revenue and $398,000 in adjusted EBITDA for the three months ended September 30," said Bohn Crain, Chairman and CEO. "Our results through September are generally reflective of the historical base of business that we enjoy through our acquisition of Airgroup. In future quarters we should begin to see the positive impact to top-line revenue growth and margin expansion as a result of our expansion efforts in Los Angeles, Long Beach, Dallas/Ft, Worth and others new agent partners that are in the pipeline. We are re-affirming our preliminary revenue guidance for calendar year 2007 which we expect to be in the range of $65-$70 million, or an increase of 30-40%, from our current base of approximately $50 million in revenues and we look forward to providing additional updates as we progress."
Supplemental Pro Forma Information
We believe that supplemental disclosure of our adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for stock-based compensation and other non-cash costs is a useful measure for investors because it eliminates the effect of certain non-cash costs and provides an important metric for our business. A reconciliation of adjusted EBITDA amounts to the most directly comparable GAAP measure for the three months ended September 30, 2006 and 2005 is shown below:
(Amounts in 000's) Three months ended Sept. 30,
----------------------------
2006 2005
------ ------
Net income (loss) $ 160 $ (15)
Depreciation and amortization 186 --
Interest expense, net 5 1
Income tax expense (benefit) 2 --
------ ------
EBITDA 353 (14)
Stock-based compensation 45
------ ------
Adjusted EBITDA $ 398 $ (14)
====== ======
This supplemental pro forma financial information is presented for informational purposes only and is not a substitute for the historical financial information presented in accordance with accounting principles generally accepted in the United States.
Investor Conference Call
Radiant will host a conference call for shareholders and the investing community on Thursday November 16, 2006 at 11:00am, ET to discuss the contents of the release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using account number 286 and conference ID number 220976.
About Radiant Logistics (OTCBB:RLGT)
Radiant Logistics (www.radiant-logistics.com) is executing a strategy to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers, to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including order fulfillment, inventory management and warehousing. For more information about Radiant Logistics, please contact Bohn Crain at (425) 943-4599.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. While it is impossible to identify all of the factors that may cause our actual operating performance, events, trends or plans to differ materially from those set forth in such forward looking statements, such factors include, but are not limited to: the level of economic activity of our current customers, our ability to attract and retain new and existing customers, competitive conditions in our industry, our ability to successfully integrate newly established stations into our network, our ability to maintain relationships with our exclusive agents, our ability to identify and secure additional financing to execute our growth strategy, and those other factors disclosed in our Transition Report on Form 10-KT under the caption "Risk Factors" and other filings with Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiant-logistics.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statement to reflect events or circumstances occurring after the date hereof.
RADIANT LOGISTICS, INC.
(f/k/a Golf Two, Inc.)
Consolidated Balance Sheets
(UNAUDITED)
September 30, June 30,
------------ ------------
2006 2006
------------ ------------
ASSETS
Current assets -
Cash and cash equivalents $ 894,711 $ 510,970
Accounts receivable, net of
allowance for doubtful accounts of
$201,682 at September, 30 2006
and $202,830 at June 30, 2006 8,290,692 8,487,899
Current portion of employee loan
receivables and other Receivables 41,929 40,329
Prepaid expenses and other current
assets 12,276 93,087
Deferred tax asset 232,864 277,417
------------ ------------
Total current assets 9,472,472 9,409,702
Furniture and equipment, net 559,359 258,119
Acquired intangibles, net 2,248,641 2,401,600
Goodwill 4,718,189 4,712,062
Employee loan receivable 120,000 120,000
Investment in real estate 40,000 40,000
Deposits and other assets 118,025 103,376
------------ ------------
$ 17,276,686 $ 17,044,859
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities -
Accounts payable $ 4,680,473 $ 4,096,538
Accrued transportation costs 1,562,873 1,501,374
Commissions payable 506,976 429,312
Other accrued costs 255,684 303,323
Income taxes payable 847,450 1,093,996
------------ ------------
Total current liabilities 7,853,456 7,424,543
Long term debt 1,867,838 2,469,936
Deferred tax liability 764,538 816,544
------------ ------------
Total liabilities 10,485,832 10,711,023
------------ ------------
Commitments & contingencies -- --
Stockholders' equity:
Preferred stock, $0.001 par value,
5,000,000 shares authorized; no
shares issued or outstanding -- --
Common stock, $0.001 par value,
50,000,000 shares authorized:
issued and outstanding: 33,861,639
at September 30, 2006 and
33,611,639 at June 30, 2006 17,567 15,067
Additional paid-in capital 6,885,347 6,590,355
Accumulated deficit (112,060) (271,586)
------------ ------------
Total Stockholders' equity 6,790,854 6,333,836
------------ ------------
$ 17,276,686 $ 17,044,859
============ ============
RADIANT LOGISTICS, INC.
(f/k/a Golf Two, Inc.)
Consolidated Statements of Income (Operations)
(UNAUDITED)
THREE MONTHS ENDED
September 30,
----------------------------
2006 2005
------------ ------------
Revenue $ 14,417,101 --
Cost of transportation 9,423,319 --
------------ ------------
Net revenues 4,993,782 --
Agent Commissions 3,727,317 --
Personnel costs 507,032 --
Selling, general and administrative
expenses 405,905 14,075
Depreciation and amortization 186,106 --
------------ ------------
Total operating expenses 4,826,360 14,075
------------ ------------
Income (loss) from operations 167,422 (14,075)
Other income (expense):
Interest income 1,805 --
Interest expense (7,491) (500)
Other (402) --
------------ ------------
Total other income (expense) (6,088) (500)
------------ ------------
Income (loss) before income tax expense
(benefit) 161,334 (14,575)
Income tax (benefit) 1,808 --
------------ ------------
Net income (loss) $ 159,526 (14,575)
============ ============
Net income (loss) per common share -
basic $ 0.00 0.00
Net income (loss) per common share -
diluted $ 0.00 0.00
Weighted average shares outstanding:
Basic shares 33,652,400 25,964,176
Diluted share 36,137,182 25,964,176
RADIANT LOGISTICS, INC.
Reconciliation of EBITDA to Net Income and
Net Cash Provided By (Used In) Operating Activities
(UNAUDITED)
As used in this report, adjusted EBITDA means earnings before interest, income taxes, depreciation and amortization adjusted for stock-based compensation and other non-cash costs. We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges. Adjusted EBITDA is also used by our creditors in assessing debt covenant compliance. We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. EBITDA is not intended as an alternative to cash flow provided by (used in) operating activities as a measure of liquidity, as an alternative to net income as an indicator of our operating performance, nor as an alternative to any other measure of performance in conformity with accounting principles generally accepted in the United States of America.
The following is a reconciliation of adjusted EBITDA to both net income and cash flow provided by (used in) operating activities:
THREE MONTHS ENDED
SEPTEMBER 30,
-------------------------------
2006 2005
--------------- --------------
Adjusted EBITDA $ 398,119 $ (14,075)
Stock-based compensation 44,992 --
--------------- --------------
EBITDA 353,127 (14,075)
Depreciation and amortization 186,106 --
Interest expense net of interest
income 5,686 500
Income tax expense (benefit) 1,809 --
--------------- --------------
Net income (loss) 159,526 (14,575)
ADJUSTMENTS TO RECONCILE NET
LOSS TO NET CASH
PROVIDED BY (USED FOR) OPERATING
ACTIVITIES:
non-cash contribution to
capital(rent) -- 300
non-cash compensation
expense (stock options) 44,992 --
amortization of intangibles 152,959 --
amortization of deferred tax
liability (52,006) --
Depreciation 25,994 --
Amortization 7,153
provision for doubtful
accounts - --
change in accounts receivable (6,128) --
CHANGE IN OPERATING ASSETS
AND LIABILITIES:
restricted cash - (9,340)
accounts receivable 197,207 --
employee receivable and
other receivables (1,600) --
prepaid expenses and other
current assets 103,562 --
accounts payable 583,935 --
accrued transportation costs 61,499 --
commissions payable 77,664 --
other current liabilities (47,639) 500
income tax payable (246,546) --
--------------- --------------
Net cash provided by
(used for) operating
activities $ 1,060,572 $ (23,115)
=============== ==============