Radiant Logistics beats expectations to start year

Radiant Logistics posted better-than-expected results for the first quarter of the year but noted a recent slowing in international trade volumes will likely weigh on results in the second.

The Renton, Washington-based 3PL reported adjusted earnings per share of 14 cents for its fiscal third quarter ended March 31, 10 cents higher than the consensus estimate and 6 cents higher year over year.

Consolidated revenue increased 16% y/y to $214 million. Revenue net of purchased transportation expenses increased 10% y/y to $58 million. 

Management from Radiant (NYSE: RLGT) said even with the U.S. and China agreeing to step down tariffs while trade talks continue, its fiscal fourth quarter ending June 30 will likely be soft. It said roughly 25% to 30% of the recent quarter’s gross margin would have been impacted by previously announced tariffs. However, it doesn’t believe the slowdown means that shipments will be lost.

“With that said, we also expect that any near-term slowdown will likely result in a corresponding bullwhip effect, with a surge in global trade as these tariff disputes are brought to rest and are encouraged by the de-escalation of U.S – China trade tensions that occurred over the weekend,” said CEO Bohn Crain in a Monday news release.

Adjusted earnings before interest, taxes, depreciation and amortization of $9.4 million in the quarter was 81% higher y/y. Approximately $2 million of the increase was tied to recent acquisitions.

Radiant ended the quarter with $19 million in cash and only a $15 million outstanding balance on a $200 million credit facility.

The company said its acquisition of Houston-based operating partner Universal Logistics closed at the beginning of the month. Universal has been operating under Radiant’s Airgroup banner since 2001. The acquisition was the third of the year for the company.

Shares of RLGT were up 5.3% in after-hours trading on Monday.

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