Shares of third-party logistics provider Radiant Logistics jumped 12.4% in after-hours trading on Monday following the company’s better-than-expected quarterly report.
Radiant (NYSE: RLGT) reported revenue of $280 million for its fiscal first quarter ended Sept. 30. The result was 23% higher year over year and $34 million ahead of the consensus estimate.
Adjusted net income of $8.6 million, or 18 cents per share, was 9 cents higher y/y and 6 cents better than consensus.
Adjusted EBITDA of $12.2 million was nearly 80% higher y/y, and 18% higher than the prior quarter. The adjusted EBITDA margin improved 630 basis points to 17.7%.
The period benefitted from a decision to consolidate transportation management systems as well as an increase in airfreight volumes tied to disaster relief (between $1 million and $2 million). The year-ago quarter also had a $1.3-million credit loss tied to the First Brands bankruptcy.
The company ended the period with no net debt.
In August, it amended its $200 million revolving credit facility, extending the maturity of the credit line by five years, and increasing the accordion feature to facilitate acquisitions from $75 million to $100 million.
“That capacity, together with our long-term strategy of growing organically where our network gives us an advantage and supplementing that growth through disciplined acquisitions, positions us well to build on the encouraging signs of a domestic freight recovery while continuing to help customers navigate a volatile global trade environment,” said Bohn Crain, founder and CEO, in a news release.
The company has acquired several 3PLs in recent years. It has also continued to convert agent stations into company-owned operations.
It acquired the Dallas brokerage arm of Whitacre Logistics Services in October. The new Dallas operation primarily serves customers in the building materials, manufacturing and packaging sectors.
Last year, it expanded its footprint by securing a majority stake in Weport, a Mexico City-based logistics operator, right after acquiring California air and ocean freight forwarder Transcon Shipping.
Why it matters? Radiant Logistics is seeing strong international results amid a volatile trade landscape along with a meaningful tightening in both the domestic truckload and intermodal markets. The company’s enhanced debt agreement will allow it to further consolidate the 3PL space through M&A.
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