The company continues to focus on organic growth and expanding its footprint in the refrigerated market.
Bellevue, Wash.-based Radiant Logistics recorded a net income of $700,000 for the third fiscal quarter, which ended March 31, down from $922,000 from the corresponding prior-year period, according to financial statements released Wednesday by the third-party logistics and multimodal transportation provider.
The non-asset-based company’s revenues for the quarter rose 12.2 percent year-over-year to $203.9 million. Radiant CEO Bohn Crain said on the earnings webcast the double-digit revenues increase was mostly driven by organic growth.
Radiant is making back-office investments to continue to drive organic growth, he explained.
“As we think about deploying our own capital, it makes more sense than ever for us to look at our stock buyback and kind of investing in ourselves,” he said. “There’s no better value we’ve been able to identify in the marketplace other than our own stock at this point.”
In March, Radiant authorized the repurchase of up to 5 million shares of its common stock through Dec. 31, 2019. As of May 3, Radiant had 49.36 million shares outstanding. There have not been any purchases of common stock executed under the repurchase program.
The positive results during the quarter were “negatively impacted over the short-term principally as a result of an increase in our personnel costs, up $2.1 million, and an increase in our SG&A costs, up $1.6 million in connection with our recent acquisitions of Lomas and DLT, along with several sales and technology initiatives, which are expected to deliver organic growth and productivity improvement in future periods,” Crain said in a press release.
In April, Radiant, through its wholly owned subsidiary Clipper Exxpress, entered into a lease financing agreement with Banc of America Leasing & Capital, for the lease of up to 100 refrigerated trailers with the aggregate acquisition cost not to exceed $5 million through Dec. 31, 2018.
Radiant sees opportunity in the refrigerated market because the rising focus on organic and fresh goods is driving more demand in the temperature-controlled space, while the e-commerce space has pulled temperature-controlled capacity out of the market, putting more of a pinch on temperature-controlled availability, Crain explained in the webcast. Radiant currently has about 350 temperature-controlled units in the Clipper fleet.
Radiant posts double-digit revenues growth
