BELLEVUE, Wash., Oct. 12, 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 and six months ended June 30, 2006.
For the three months ended June 30, 2006, Radiant reported net income of $98,000 on $14.7 million of revenues, or $0.00 per basic and fully diluted share. For the three months ended June 30, 2005, when it remained in the development stage, the Company reported no revenues and a net loss of $9,000.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization) of $430,000 for the three months ended June 30, 2006, compared to an adjusted EBITDA loss of $8,000 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.
For the six months ended June 30, 2006, Radiant reported net income of $71,000 on $26.5 million of revenues, or $0.00 per basic and fully diluted share. For the six months ended June 30, 2005, when it remained in the development stage, the Company reported no revenues and a net loss of $23,000.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization) of $552,000 for the six months ended June 30, 2006, compared to an adjusted EBITDA loss of $22,000 for the comparable prior year period.
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, 2004. This analysis is included on the Company's Form 10-K/T for the period January 1, 2006 though June 30, 2006 and filed October 12, 2006. The Form 10-K/T was filed to reflect a change in the Company's fiscal year end from December 31 to June 30 in order to conform to the June 30 fiscal year of its principal operating subsidiary, Airgroup.
"Radiant delivered another solid quarter with $14.7 million in revenue and $430,000 in adjusted EBITDA for the three months ended June 30," said Bohn Crain, Chairman and CEO. "In a short six months we have made significant progress in positioning the Company for future growth and we are pleased with the positive trend in revenue growth and profitability. We plan to build on this early success through a combination of organic growth and acquisition initiatives that should continue to build on the great platform that we enjoy through our acquisition of Airgroup. We recently announced expansions in our network of exclusive agent offices with new logistics operations in Seattle, Los Angeles and Long Beach. We are also in conversations with a select number of additional candidates that, over time, could bring significant incremental organic growth to our platform. On the acquisition front, we continue to explore opportunities to enhance our international freight forwarding and global logistics capabilities. We will continue to execute our strategy with a focus on profitable growth, integration and productivity improvement. Through this disciplined approach we believe we will continue to build a world class global logistics enterprise, creating significant value for our shareholders and customers along the way."
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 and six months ended June 30, 2006 and 2005 is shown below:
(Amounts in 000's) Three months ended Six Months ended
June 30, June 30,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Net income (loss) $ 98 $ (9) $ 71 $ (23)
Depreciation and amortization 217 -- 423 --
Interest expense, net 9 1 11 1
Income tax expense (benefit) 63 -- (39) --
--------- --------- --------- ---------
EBITDA 387 (8) 466 (22)
Stock-based compensation 43 -- 86 --
--------- --------- --------- ---------
Adjusted EBITDA $ 430 $ (8) $ 552 $ (22)
========= ========= ========= =========
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 Tuesday October 17, 2006 at 9:00am, 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 216995.
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 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: (i) our assumption that the post-closing level of operations of Airgroup will remain consistent with or exceed its historic level of operations; (ii) our ability to use Airgroup as a "platform" upon which we can build a profitable global transportation and supply-chain management company;(iii) our ability to identify and secure sufficient financing to complete other acquisitions, as well as those other factors disclosed in our 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)
June 30, December 31,
-------------- --------------
2006 2005
-------------- --------------
ASSETS
Current assets -
Cash and cash equivalents $ 510,970 $ 5,266,451
Accounts receivable, net of allowance
June, 30 2006: $203,000, June 30,
2005: $0, December 31, 2005: $0 8,487,899 --
Current portion of employee loan
receivables and other receivables 40,329 25,055
Prepaid expenses and other
current assets 93,087 --
Deferred tax asset 277,417 --
-------------- --------------
Total current assets 9,409,702 5,291,506
Goodwill and acquired intangibles, net 7,113,662 --
Furniture and equipment, net 258,119 --
Employee loan receivable 120,000 --
Investment in real estate 40,000 --
Deposits and other assets 103,376 15,907
-------------- --------------
$ 17,044,859 $ 5,307,413
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities -
Accounts payable $ 4,096,538 $ --
Accrued transportation costs 1,501,374 --
Commissions payable 429,312 --
Other accrued costs 303,323 148,388
Income taxes payable 1,093,996 --
-------------- --------------
Total current liabilities 7,424,543 148,388
Long term debt 2,469,936 --
Deferred tax liability 816,544 --
-------------- --------------
Total liabilities 10,711,023 148,388
-------------- --------------
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:June 30,
2006 -- 33,611,639 issued and
outstanding;June 30, 2005 --
7,418,336 issued and outstanding;
December 31, 2005 -- 31,135,849
issued and outstanding 15,067 12,590
Additional paid-in capital 6,590,355 5,488,707
Accumulated deficit (271,586) (342,272)
-------------- --------------
Total Stockholders' equity
(deficit) 6,333,836 5,159,025
-------------- --------------
$ 17,044,859 $ 5,307,413
============== ==============
RADIANT LOGISTICS, INC
(f/k/a Golf Two, Inc.)
Consolidated Statements of Income (Operations)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenue $14,626,332 $ -- $ 26,469,049 $ --
Cost of
transportation 9,486,259 -- 16,965,966 --
------------ ------------ ------------ ------------
Net revenues 5,140,073 -- 9,503,083 --
Agent Commissions 3,839,654 -- 7,037,363 --
Personnel costs 515,362 -- 1,154,449 --
Selling, general
and administrative
expenses 395,383 8,051 842,391 21,881
Depreciation and
amortization 217,362 -- 423,465 --
------------ ------------ ------------ ------------
Total operating
expenses 4,967,761 8,051 9,457,668 21,881
------------ ------------ ------------ ------------
Income (loss) from
operations 172,312 (8,051) 45,415 (21,881)
Other income
(expense):
Interest income 3,334 -- 14,800 --
Interest expense (12,527) (500) (25,851) (1,000)
Other (2,773) -- (2,773) --
------------ ------------ ------------ ------------
Total other income
(expense) (11,966) (500) (13,824) (1,000)
------------ ------------ ------------ ------------
Income (loss) before
income tax expense
(benefit) 160,346 (8,551) 31,591 (22,811)
Income tax
(benefit) 62,550 -- (39,095) --
------------ ------------ ------------ ------------
Net income (loss) $ 97,796 $ (8,551) $ 70,686 $ (22,811)
============ ============ ============ ============
Net income (loss)
per common share --
basic and diluted $ -- $ -- $ -- $ --
Weighted average
shares outstanding:
Basic shares 33,611,639 25,964,176 33,185,665 25,964,176
Diluted share 35,036,639 25,964,176 34,584,836 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Adjusted EBITDA $ 429,710 $ (8,051) 551,726 (21,881)
Stock-based
compensation 42,809 -- 85,619 --
------------ ------------ ------------ ------------
EBITDA 386,901 (8,051) 466,107 (21,881)
Depreciation and
amortization 217,362 -- 423,465 --
Interest income,
net of interest
expense 9,193 500 11,051 1,000
Income tax expense
(benefit) 62,550 -- (39,095) --
------------ ------------ ------------ ------------
Net income 97,796 (8,551) 70,686 (22,881)
ADJUSTMENTS TO
RECONCILE NET LOSS
TO NET CASH
PROVIDED BY (USED FOR)
OPERATING
ACTIVITIES:
Non-cash
contribution to
capital (rent) -- 300 -- 600
Non-cash compensation
expense (stock
options) 42,809 -- 85,619 --
amortization of
intangibles 170,200 -- 340,400 --
depreciation and
amortization 47,162 -- 83,065 --
amortization of
deferred tax
liability (57,867) -- (115,735) --
provision for
doubtful
accounts (135,000) -- -- --
change in fair
value of
accounts
receivable 225,271 -- 225,271 --
CHANGE IN OPERATING
ASSETS AND
LIABILITIES:
accounts
receivable (1,730,640) -- 1,739 --
employee receivable
and other
receivables 9,201 -- 12,230 --
prepaid expenses
and other current
assets (53,223) -- (116,446) --
accounts payable (285,199) -- (2,590,831) --
accrued transportation
costs 439,012 -- 1,501,374 --
commissions
payable 521,286 -- 9,280 --
other current
liabilities (232,688) (3,247) (182,677) 1,000
income tax payable 219,845 -- (298,388) --
------------ ------------ ------------ ------------
Total
adjustments (819,831) (2,947) 1,045,099 1,600
------------ ------------ ------------ ------------
Net cash provided
by (used for)
operating
activities $ (722,035) $ (11,498) $ (974,413) $ (21,281)
============ ============ ============ ============