Founded in 2001, Bellevue, Washington-based, Radiant Logistics, Inc. (OTCBB:RLGT) operates as a non-asset transportation and supply chain management company throughout the world. Operating out of approximately 70 offices across North America, and through several brands, Airgroup, Adcom and Radiant Logistics, the Company provides international and domestic door-to-door services, as well as air and ocean freight forwarding globally. Through its extensive network of independent carriers and international agents, Radiant serves distributors, manufacturers and retailers of all sizes and locations.
Radiant has been fulfilling its business strategy to build a global footprint through strategic acquisitions of other non-asset transportation and logistics companies. By maintaining its position as a non-asset based provider, the Company has controlled expenses by limiting costs associated with equipment, facilities and required working capital through contracts and preferred provider arrangements with select providers. Through negotiations of these contracts, Radiant is able to secure preferred rates, priority handling positioning and capacity assurances. Additional flexibility that is often not seen within the industry is available to Radiant through these solid business strategies that have also allotted the Company the ability to maintain a relatively flat operating structure and a high volume of business which has a ''snowball effect'' by providing for very attractive pricing.
The toils of Radiant’s business platform showed through in the Company’s recently reported financial results for the three months ended September 30, 2010. For that quarter, Radiant reported net income of $783,000 on $46.4 million of revenues, or $0.03 per basic and fully diluted share, as compared to the same quarter in 2009 in which Radiant reported net income of $116,000 on $34.0 million of revenues, or $0.00 per basic and fully diluted shares. This represents an increase of approximately 36% in revenues and a 5,750% increase in net income. Also reported was an 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.
If the increased revenues weren’t enough, the Company also decreased costs when compared to the revenues. As a percentage of net revenues, the Company’s personnel costs decreased from 13.5% to 11.0%. Selling, general and administrative costs, as a percentage of net revenues, decreased from 10.4% to 7.5%. Furthermore, Radiant updated its 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.
Radiant Logistics is a company that is moving forward. Many companies ''talk the talk'' about their business strategies and how it can pay off for shareholders. This company is ''walking the walk'' with their low-overhead business strategies in an industry that will always be essential in the world are clearly paying off with exponential growth. Shares have been pushing north consistently since it broke through $0.28 in August and, with reporting these type of financials, doesn’t appear to be slowing down in the near future.
