Freightwaves: Radiant Logistics beats FQ2 expectations

Radiant Logistics beat quarterly expectations on Monday after the market closed.

Management from the company said on a call with analysts that customers are “growing increasingly bullish” even as international ocean volumes remain soft. It noted broad tightening in domestic truck capacity but said the impact hasn’t yet shown up in the financials.

The Renton, Washington-based 3PL said it is having success with the rollout of Navegate, a proprietary global trade management platform. The offering aggregates and organizes supply chain data, providing customers with better routing and capacity purchasing options. (Radiant acquired Navegate in 2021.)

“We believe this speed to market and ease of deployment represent a clear competitive advantage and that Navegate will serve as a meaningful catalyst for organic growth as we introduce the technology to our current and prospective customers in coming quarters,” said Bohn Crain, Radiant founder and CEO, in a news release.

Radiant (NYSE: RLGT) reported revenue of $232 million for the fiscal second quarter ended Dec. 31. That was $32 million lower year over year and $3 million light of consensus (two analysts cover the stock). However, the y/y comparisons are skewed as the year-ago result had the benefit of $64.8 million in air charter revenue from Hurricane Milton relief operations.

Radiant reported adjusted net income of $8.1 million, or 17 cents per share. That was 9 cents ahead of the consensus estimate but 5 cents lower y/y. (Hurricane Milton project work contributed $4.5 million to adjusted net income in the year-ago quarter.)

Adjusted earnings before interest, taxes, depreciation and amortization of $11.8 million came in 2% lower y/y, but the comp had a $5.9 million headwind from the hurricane project last year.

Radiant ended the quarter with $32 million in cash, which exceeded debt and finance lease obligations by nearly $1 million. The company has a $200 million credit facility, which it will use to continue to buy back stock, fund acquisitions and convert third-party agent stations into company-owned operations.