A little logistics play that looks to take on giants UPS and FedEx, coming out with a very strong earnings report last week. Worth expanding on given the data and the charts! The name: Radiant Logistics, Inc. (RLGT.OB)
0.600.01 1.69%48,100 Last Trade as of 11:35 AM ET 11/16/10
Radiant Posts 136.7% Earnings Growth With Adjusted EBITDA of $1,709,000 for the Fiscal First Quarter Ended September 30, 2010
Thursday 11/11/2010 8:00 AM ET – PR Newswire
For the three months ended September 30, 2010, Radiant reported net income of $783,000 on $46.4 million of revenues, or $0.03 per basic and fully diluted share. For the three months ended September 30, 2009, Radiant reported net income of $116,000 on $34.0 million of revenues, or $0.00 per basic and fully diluted share.
The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization), of $1,709,000 for the three months ended September 30, 2010, compared to adjusted EBITDA of $722,000 for the comparable prior year period.
“We are seeing encouraging trends with the improving economy and glad to see the benefits of our scalable non-asset based business model beginning to show themselves,” said Bohn Crain, Chairman and CEO. “For the quarter ended September 30, 2010, our revenues increased 36.2% to $46.4 million as compared to $34.0 million for the comparable prior year period. Net transportation revenues also increased 33.8% to $14.1 million as compared to $10.5 million for the comparable prior year period. We often talk about our business in terms of people, process and technology. Our ability to leverage our personnel and general administrative costs as a function of our net revenues is what will really allow us to drive profitable growth. We continue to make gains in this area through technology and business process improvements that are creating operating efficiencies across the network. As a percentage of net revenues, our personnel costs decreased from 13.5% to 11.0%. Our selling, general and administrative costs, as a percentage of net revenues, decreased from 10.4% to 7.5%. We are very excited about these trends and the anticipated margin expansion available to us as we continue to execute our growth strategy.”
Mr. Crain continued, “As we look forward to the balance of our fiscal year ending June 30, 2011, we believe we remain well positioned to benefit from an improving economic environment and we are updating our prior guidance from $4.5 million on $158.0 million in annual revenues to $5.0 million in adjusted EBITDA on $165.0 million in annual revenues, or approximately $0.07 per basic and diluted share. This is before considering the impact of any future acquisitions or organic network expansion. Looking forward, our strategy remains unchanged. From our current platform, we believe profitable growth can be best achieved by continuing to bring value to the agent-based forwarder community and continuing to execute our three-prong strategy of first, providing continuous improvement to our existing network participants in terms of technology, buy rates and enhanced service offerings; second, building upon the success of our organic growth initiative by on-boarding additional agent stations; and third, opportunistically pursuing acquisition opportunities, including strategic opportunities within the community of agent-based forwarders.”
Mr. Crain concluded, “Although we have seen some recent appreciation in our stock price, at approximately 7.0x this year’s projected earnings per share, our stock trades at a significant discount to our competitors. We would also like to remind investors that our free cashflow is generally higher than our net income because we have significant non-cash depreciation and amortization expenses flowing through our financial statements as a result of the mechanics of accounting for acquisitions and the fact that we have minimal maintenance capital expenditure requirements.”
Steady Trending Charts:
Impressive float ratio (source: Yahoo):
Another interesting stat ROE. In fact, this is largest figure we’ve seen in this category yearlong….
Return on Equity (ttm):6,204.41%
Insider votes of confidence:
Insider Transactions Reported – Last Two Years
DateInsiderSharesTypeTransactionValue*Oct 5, 2010CRAIN BOHN HOfficer130,000IndirectPurchase at $0.38 per share.49,400Sep 30, 2010CRAIN BOHN HOfficer21,500DirectPurchase
Among top tier YTD gains on our OTCBB list at www.greenbackers.com
CompanyMarket CapYTD Price PerformanceRLGT
Radiant Logistics Incorporated
Radiant Logistics, Inc. is a non-asset based logistics company providing domestic and international freight forwarding services through a network, which includes a combination of company owned and exclusive agent offices across North America..
Competitors: FedEx UPS
Bottom Line: A nice discovery! Especially like the CEO Comments in last week’s earnings……Anticipate trending to continue….A buy/hold initially to year end with .75 initial target. One bagger into 2011 quite reasonable, especially if they keep coming out with earnings rpts like this most recent!.