Radiant Logistics (NYSE: RLGT) reported Q4 EPS of $0.11, $0.05 better than the analyst estimate of $0.06. Revenue for the quarter came in at $233.8 million versus the consensus estimate of $220.16 million.

Fourth Fiscal Quarter Financial Highlights (Quarter Ended June 30, 2018)

Revenues increased to a record $233.8 million for the fourth fiscal quarter ended June 30, 2018, up $32.0 million or 15.9% compared to revenues of $201.8 million for the comparable prior year period.
Net revenues increased to a record $59.3 million for the fourth fiscal quarter ended June 30, 2018, up $9.5 million or 19.0% compared to net revenues of $49.8 million for the comparable prior year period.
Net income allocable to common stockholders increased to a record $4.3 million, or $0.09 per basic and fully diluted share, compared to net loss allocable to common stockholders of $1.0 million, or $0.02 per basic and fully diluted share for the comparable prior year period.
Adjusted net income allocable to common stockholders increased to a record $5.7 million, or $0.11 per basic and fully diluted share for the fourth fiscal quarter ended June 30, 2018, compared to adjusted net income allocable to common stockholders of $3.8 million, or $0.08 per basic and fully diluted share for the comparable prior year period. Periods are calculated by applying a normalized tax rate of 31% and excluding other items not considered part of regular operating activities.
Adjusted EBITDA increased to a record $9.9 million for the fourth fiscal quarter ended June 30, 2018, up $3.0 million or 43.5% compared to adjusted EBITDA of $6.9 million for the comparable prior year period.
Adjusted EBITDA margin (expressed as a function of net revenues) increased 280 basis points to 16.7% for the fourth fiscal quarter ended June 30, 2018, compared to Adjusted EBITDA margin of 13.9% for the comparable prior year period.

CEO Comments

"We are pleased to report record results for the quarter ended June 30, 2018 and broad-based improvement in our financial performance," said Bohn Crain, Founder and CEO. "We posted record revenues of $233.8 million, up $32.0 million or 15.9%; record net revenues of $59.3 million, up $9.5 million or 19.0%; record net income allocable to common stockholders of $4.3 million, up $5.3 million; record adjusted net income allocable to common shareholders of $5.7 million, up $1.9 million or 50.0%; and Adjusted EBITDA of $9.9 million, up $3.0 million or 43.5% over the comparable prior year period. In addition, we also set a new record in terms of our Adjusted EBITDA margins, up 280 basis points to 16.7%, from 13.9% for the comparable prior year period."

"While we continued to see anticipated margin pressure with our underlying asset-based carrier partners during the quarter, we also saw the benefit of our focused effort on organic growth, delivering double-digit revenue growth across all categories of our business, with forwarding revenues up $23.7 million, or 16.0%, brokerage revenues up $7.1 million, or 14.0%, and value-added services revenues up $1.3 million and 44.6%. This ultimately translated to an incremental $9.5 million in net revenues over the comparable prior year period. As we have previously discussed, we remain most interested in growing our gross margin dollars and getting more of those dollars to the bottom line as we scale the business. In this regard, we were quite pleased to not only see the growth in our gross margin dollars, but also see the leverage in our back-office operations as reflected in our expanding EBITDA margins."

"On the technology front we also continue to make meaningful progress on a number of strategic technology initiatives, including (1) the continued expansion of our new SAP-based transportation management system ("SAP-TM") that is now deployed in 7 of our company owned locations and on track for deployment to our strategic operating partners later this year, (2) the recent launch of our new customer portal which provides our customers with on-line booking and event based tracking through direct integration with SAP-TM with future phases of functionality that will include additional collaboration, quoting, and a user operated reporting engine, (3) the completion of our blue-printing efforts to operationalize international air and ocean functionality within our new SAP-TM platform, (4) the successful deployment of our new back-office digitization technology to provide optical character recognition and process automation solution to streamline our procure-to-pay processes with our carriers provides and (5) further progress on migrating our SAP production environment to Amazon's cloud computing platform which is also on track to occur later this year which will give us cost effective access to the computing power, database storage and other functionality to help us scale and grow our business."

Crain Continued: "As we head into the new year, we remain committed to our long-standing strategy to deliver profitable growth through a combination of organic and acquisition growth initiatives. We have low leverage on our balance sheet, strong free cash flow, and continue our disciplined search for acquisition candidates that bring critical mass to our current platform with respect to geography, purchasing power, and complementary service offerings. We believe we remain well positioned to continue to benefit from a favorable market environment given the healthy economy and look forward to continuing to build on the success of this most recent quarter."

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