Radiant Logistics sees double-digit growth in FQ4, shares up 16%

Radiant Logistics, a third-party logistics provider, reported double-digit growth in its fiscal fourth quarter (FQ4) and saw its shares rise by 16% on the first trading day following the release of the results. The company's performance was driven by a volatile trade landscape, which increased demand for its customs brokerage and compliance services. CEO Bohn Crain noted that these market trends, while not fully reflected in the FQ4 results, were viewed as constructive for the company's domestic operations.

The company reported revenue of $261 million for its FQ4, which ended on June 30, representing a 19% increase year-over-year and $30 million above the consensus estimate. Adjusted earnings per share (EPS) of 15 cents ($7.4 million) were also 4 cents higher year-over-year and 6 cents above the consensus estimate. Additionally, Radiant Logistics reported adjusted EBITDA of $10.4 million, a 31% increase year-over-year, and a 240 basis point improvement in the adjusted EBITDA margin to 15.5%.

Radiant Logistics' performance was further bolstered by disaster relief shipments following typhoons in the Western Pacific, which drove international airfreight results higher. The company ended the quarter with no net debt and had amended its $200 million revolving credit facility in August, extending the maturity of the credit line by five years and increasing the accordion feature to facilitate acquisitions from $75 million to $100 million.

Furthermore, Radiant Logistics recently introduced an independent agent program for its over-the-road and intermodal brokerage platform, Radiant Road & Rail. This new program extends the company's agent-based freight forwarding model and offers freight brokers capacity purchasing power, access to better technology, and backend support.

The program also provides an avenue for owners to sell their operations to Radiant. CEO Bohn Crain expressed satisfaction with the early response to the program, seeing it as a meaningful new avenue for organic growth as the company brings the Radiant model to a new market.