Radiant Logistics beats FQ3 expectations

Third-party logistics provider Radiant Logistics noted strength in its domestic truckload and intermodal offerings on Monday. However, it said the global trade landscape is “considerably more challenging” due to ongoing tariff uncertainty and shipment rerouting away from the Strait of Hormuz. It said the international headwinds are creating some opportunities for freight forwarders.

“Near-term volumes on affected lanes have softened, but the complexity of navigating new trade routes, customs regimes, and compliance requirements increases the premium on experienced, technology-enabled partners who can guide customers through the transition,” said Bohn Crain, Radiant founder and CEO, on a Monday call with analysts.

The Renton, Washington-based company reported adjusted net income of $5.3 million, or 11 cents per share, for the fiscal third quarter ended Mar. 31. The result was 4 cents ahead of the consensus estimate but 3 cents lower year over year. (Two analysts cover the stock.)

Revenue of $214 million was in line with the consensus estimate as well as the prior-year quarter. Management said the U.S. truckload market was slow in January and February, but experienced sequential improvement through March. It said it’s getting high-single-digit rate increases on its TL contractual renewals.

Radiant (NYSE: RLGT) reported adjusted earnings before interest, taxes, depreciation and amortization of $7.8 million, which was 18% lower y/y. The adjusted EBITDA margin fell 240 basis points to 13.8%.

Radiant’s proprietary global trade management platform, Navegate, continues to gain traction with shippers. The offering aggregates and organizes supply chain data, providing customers with better routing and capacity purchasing options.

The company ended the quarter with $40 million in cash, which exceeded debt, finance lease obligations and contingent earnout liabilities linked to prior acquisitions.

It will continue to use a $200 million credit facility to buy back stock, fund acquisitions and convert third-party agent stations into company-owned operations.

Shares of RLGT were up 3.9% in after-hours trading on Monday.

More FreightWaves articles by Todd Maiden:

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