RADIANT LOGISTICS ANNOUNCES SELECT PRELIMINARY UNAUDITED FINANCIAL RESULTS FOR FIRST FISCAL QUARTER ENDED SEPTEMBER 30, 2022

Record Results of Operation Estimated for First Fiscal Quarter

SEC Filings Expected to be Brought Current by Calendar Year End

CEO Crain Comments on Restatement Process

RENTON, Wash., Nov. 9, 2022 /PRNewswire/ — Radiant Logistics, Inc. (NYSE American: RLGT), a third-party logistics firm offering technology-enabled world transportation and worth added logistics options to clients, immediately introduced choose preliminary unaudited monetary outcomes for the three months ended September 30, 2022, and that it is going to be submitting a Form 12b-25 with the U.S. Securities and Exchange Commission, because the Company will likely be late in submitting its Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 (the “Form 10-Q”). The delay within the submitting of the Company’s Form 10-Q for the quarter ended September 30, 2022, is a results of the beforehand disclosed delay of the Company’s Annual Report on Form 10-Ok for the yr ended June 30, 2022 and the Company’s on-going efforts to finish the restatement of its fiscal 2021 audited monetary statements, every of the interim quarterly monetary statements filed on Form 10-Q throughout fiscal 2021, in addition to every of the interim quarterly monetary statements filed on Form 10-Q throughout its 2022 fiscal yr (the “Restatement Periods”). The Company presently expects that it’s going to deliver all of its filings present earlier than the tip of the calendar yr.

The monetary outcomes offered beneath for the quarterly interval ended September 30, 2022, mirror the Company’s preliminary, inner administration ready and unaudited outcomes of operations as of the date of this press launch. These monetary statements haven’t but been reviewed by our unbiased auditors. Accordingly, not solely will these preliminary outcomes be topic to vary upon completion of normal quarterly evaluate procedures by our unbiased auditors, however they could even be topic to vary upon the completion of the audit of the Company’s full-year monetary statements and any stream by way of results of changes arising from the restatement course of, and precise outcomes could differ from these preliminary outcomes.

To preserve its stockholders and the general public knowledgeable on its present operations, the Company has decided to report on its preliminary administration ready unaudited outcomes for the Company’s first fiscal quarter ended September 30, 2022 as follows:

Financial Highlights – Three Months Ended September 30, 2022 (Preliminary)

• Revenues elevated to a document $331.0 million for the primary fiscal quarter ended September 30, 2022, up in comparison with revenues for the comparable prior yr interval.
• Net revenues, a non-GAAP monetary measure, elevated to a document $76.5 million for the primary fiscal quarter ended September 30, 2022, up in comparison with web revenues for the comparable prior yr interval.
• Net revenue attributable to Radiant Logistics, Inc. elevated to a document $8.0 million for the primary fiscal quarter ended September 30, 2022, or $0.17 per fundamental and $0.16 per absolutely diluted share, up in comparison with web revenue per fundamental and absolutely diluted share for the comparable prior yr interval.
• Adjusted web revenue, a non-GAAP monetary measure, elevated to a document $13.4 million, or $0.27 per fundamental and absolutely diluted share for the primary fiscal quarter ended September 30, 2022, up in comparison with adjusted web revenue per fundamental and absolutely diluted share for the comparable prior yr interval. Adjusted web revenue is calculated by making use of a normalized tax charge of 24.5% and excluding different objects not thought of a part of common working actions.
• Adjusted EBITDA, a non-GAAP monetary measure, elevated to a document $18.5 million for the primary fiscal quarter ended September 30, 2022, up in comparison with adjusted EBITDA for the comparable prior yr interval.
• Adjusted EBITDA margin (adjusted EBITDA expressed as a share of web revenues), a non-GAAP monetary measure, elevated to a document 24.2% for the primary fiscal quarter ended September 30, 2022, up in comparison with adjusted EBITDA margin for the comparable prior yr interval.

Acquisition Update

On October 5, 2022, the Company introduced that it acquired Cascade Enterprises of Minnesota, Inc. (“Cascade”), a Minnesota primarily based, privately held firm that has operated as a strategic working companion below the Company’s Airgroup model since 2007. The Company structured the transaction just like its earlier transactions, with a portion of the anticipated buy value payable in subsequent durations primarily based on the long run efficiency of the acquired operations. Cascade will proceed to function below the Airgroup model by way of the rest of 2022 and is anticipated to transition to the Radiant model in early 2023 as Cascade is mixed with present Company owned operations within the Minneapolis space.

Stock Buy-back

The Company bought 219,517 shares of its frequent inventory at a mean value of $6.11 per share for an combination value of $1.3 million throughout the three months ended September 30, 2022. An extra 352,231 shares of its frequent inventory have been repurchased throughout October 2022 for a value of $2.1 million, such that throughout the 4 months ended October 31, 2022, the Company bought an combination of 571,748 shares of its frequent inventory at a mean value of $5.97 per share for an combination value of $3.4 million. As of November 1, 2022, the Company had 48,315,935 shares excellent.

CEO Bohn Crain feedback on preliminary outcomes, and the Company efforts to deliver its filings present

“We are very pleased to share our preliminary results for the September quarter, which reflects our continued trend of solid financial performance and solid gains as compared to our comparable prior year results, as we currently estimate our prior year results, subject to the completion of our prior year financial statements for the Restatement Periods” stated Bohn Crain, Founder and CEO of Radiant Logistics. “We saw improvement in all aspects of our financial results, including in our revenues, net revenues, net income, adjusted net income, adjusted EBITDA and adjusted EBITDA margin. Based on our preliminary estimates, we are reporting record first quarter results consisting of: $331.0 million of revenues; net revenues of $76.5 million; net income attributable to Radiant Logistics, Inc. of $8.0 million; adjusted net income of $13.4 million; and adjusted EBITDA of $18.5 million. We additionally noticed enchancment in our adjusted EBITDA margin.

In addition, we proceed to make good progress in our balanced method to capital allocation by way of a mixture of our strategic acquisition and inventory buy-back initiatives. We accomplished the acquisition of our long-time strategic working companion, Cascade Enterprises in Minnesota efficient as of October 1, 2022, and throughout the first 4 months ended October 31, 2022, acquired $3.4 million of our frequent inventory at what we consider may be very enticing pricing. For the quarter we additionally generated an estimated $25.6 million in money from operations and proceed to keep up very low leverage on our steadiness sheet. As of September 30, 2022, we had $26.5 million of money available and web debt of $19.7 million.

As now we have beforehand mentioned, whereas we stay very optimistic about our prospects for fiscal 2023 and past, we’re starting to see indicators of a slowing economy and anticipate operations to return to extra normalized ranges and development charges in coming quarters. We consider we’re effectively positioned with a sturdy, various service providing and robust steadiness sheet to help our clients and proceed to execute in opposition to our broader strategic initiatives.”

Crain continued: “Notwithstanding our continued sturdy outcomes, the Board and management group stay hyper-focused on bringing our filings present with the SEC. We are working expeditiously to finish our beforehand reported efforts to restate sure historic monetary statements associated principally to the timing of recognition of the Company’s estimated accrual of in-transit revenues and associated prices, and anticipate to deliver our filings present with the SEC by the tip of the calendar yr.

As beforehand disclosed, on September 28, 2022, the Audit and Executive Oversight Committee (the “Committee”) of the Board of Directors of the Company, after assembly with administration and session with Moss Adams LLP (“Moss Adams”), its present registered unbiased public accounting agency, and BDO USA, LLP (“BDO”), its predecessor registered unbiased public accounting agency, concluded that the Company’s beforehand issued monetary statements for the Restatement Periods needs to be restated to appropriate historic errors associated principally to the timing of recognition of the Company’s estimated accrual of in-transit revenues and associated prices.

Based on our work thus far, the Company nonetheless believes the online impact of the restatements to completely diluted earnings per share throughout the Restatement Periods will likely be comparatively modest as in comparison with our initially reported outcomes. This  displays our greatest estimate of the changes that may stream although our monetary statements and stay topic to additional adjustment pending the completion of our work with the auditors to finalize the restated quantities. In any occasion, it’s value re-enforcing that, no matter the restatement course of, we anticipate to report document outcomes by way of income and earnings for fiscal 2022 whereas sustaining traditionally low leverage on our steadiness sheet and luxuriate in good monetary flexibility to proceed to execute our technique transferring ahead. I’d characterize the work to be carried out round accruing for in-transit revenues as unlucky rising pains, however we stay very optimistic about our prospects and alternatives to proceed to leverage our best-in-class know-how, sturdy North American footprint, in depth world community of service companions and up to date acquisition of Navegate to proceed to construct on the nice platform now we have created right here at Radiant.”

About Radiant Logistics (NYSE American: RLGT)

Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party logistics firm offering technology-enabled world transportation and value-added logistics options to clients primarily based primarily in the United States and Canada. Through its complete service officering, Radiant supplies home and worldwide freight forwarding together with truck and rail brokerage companies to a diversified account base together with producers, distributors and retailers which it helps from an in depth community of Radiant and agent-owned places of work all through North America and different key markets world wide. Radiant’s value-added logistics companies embody warehouse and distribution, customs brokerage, order achievement, stock administration and know-how companies.

This announcement incorporates “forward-looking statements” inside the that means set forth in United States securities legal guidelines and rules – that’s, statements associated to future, not previous, occasions. In this context, forward-looking statements typically tackle our anticipated future business, monetary efficiency and monetary situation, and sometimes comprise phrases equivalent to “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the adverse thereof or any variation thereon or related terminology or expressions. These forward-looking statements will not be ensures and are topic to recognized and unknown dangers, uncertainties and assumptions about us which will trigger our precise outcomes, ranges of exercise, efficiency or achievements to be materially totally different from any future outcomes, ranges of exercise, efficiency or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements primarily based on administration’s beliefs and assumptions, which in flip depend upon info out there to them on the time such statements have been made. Such forward-looking statements mirror our present views on our business, future efficiency, present developments and knowledge as of the date of this announcement. These embody, however will not be restricted to, our beliefs about future income and expense ranges, development charges, prospects associated to our strategic initiatives and business methods, together with categorical or implied assumptions about, amongst different issues: our continued relationships with our strategic working companions; the efficiency of our historic business, in addition to the companies now we have not too long ago acquired, at ranges in line with current developments and reflective of the synergies we consider will likely be out there to us because of such acquisitions; our potential to efficiently combine our not too long ago acquired companies; our potential to find appropriate acquisition alternatives and safe the financing vital to finish such acquisitions; transportation prices remaining in-line with current ranges and anticipated developments; our potential to mitigate, to the perfect extent attainable, our dependence on present administration and sure of our bigger strategic working companions; our compliance with monetary and different covenants below our indebtedness; the absence of any opposed legal guidelines or governmental rules affecting the transportation trade normally, and our operations particularly; the affect of COVID-19 on our operations and monetary outcomes; the worldwide financial local weather and present battle in Ukraine amplify many of those dangers the Company’s ongoing evaluation of the ransomware incident, opposed authorized, reputational and monetary results on the Company ensuing from the ransomware incident or future cyber incidents and the effectiveness of the Company’s business continuity plans in response to cyber incidents, just like the ransomware incident; and such different components that could be recognized occasionally in our Securities and Exchange Commission (“SEC”) filings and different public bulletins, together with these set forth below the caption “Risk Factors” in our Form 10-Ok for the yr ended June 30, 2021. In addition, the worldwide financial local weather and present battle in Ukraine amplify many of those dangers. Our forward-looking statements are additionally primarily based upon administration’s beliefs and assumptions concerning, amongst others: the character and estimated quantity of changes to our monetary statements masking the Restatement Periods as the ultimate changes could differ from the quantities estimated in prior SEC Reports, and such variance could also be materials; the character and estimated quantity of changes to our printed estimated outcomes for the primary quarter of fiscal 2023 lined on this Press Release, with the popularity that such changes could also be materials; the timing for completion of the restated monetary statements included inside the Restatement Periods and the related Securities and Exchange Commission filings inside which the restated monetary statements are to be included, together with the Form 10-Q that’s the subject material of this Press Release; and such different components that could be recognized: (i) in our Form 10-Ok for the fiscal yr ended June 30, 2021, together with these set forth below the caption “Risk Factors” in such Form 10-Ok; and (ii) in such different Securities and Exchange Commission filings and different public bulletins, following our Form 10-Ok for the fiscal yr ended June 30, 2021. For the aim of our forward-looking statements, we assume that we’ll inside the short-term remediate any short-term compliance points we’re presently experiencing with the NYSE as we ponder having the ability to regain compliance with all relevant SEC and alternate compliance necessities as soon as we’re capable of file the delinquent Form 10-Ok and Form 10-Q with the SEC. We additionally assume that we can safe no matter waivers and/or consents as could also be vital, if in any respect, to keep up compliance below our senior credit score facility as a consequence of our incapability to well timed present monetary statements to our senior lenders, in addition to the modifications that could be required of previous compliance certifications that now we have offered to our senior lenders throughout the Restatement Periods. All subsequent written and oral forward-looking statements attributable to us, or individuals performing on our behalf, are expressly certified of their entirety by the foregoing. Readers are cautioned to not place undue reliance on our forward-looking statements, as they converse solely as of the date made. We disclaim any obligation to publicly replace any forward-looking statements, whether or not because of new info, future occasions or in any other case.

Reconciliation of Non-GAAP Measures
RADIANT LOGISTICS, INC.

Reconciliation of Total Revenues to Net Revenues, Net Income Attributable to Radiant Logistics, Inc.
to Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin
(Preliminary)

As used on this report, Net Revenues, Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin will not be measures of monetary efficiency or liquidity below United States Generally Accepted Accounting Principles (“GAAP”). Net Revenues, Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are offered herein as a result of they’re essential metrics utilized by administration to guage and perceive the efficiency of the continued operations of Radiant’s business. For Adjusted Net Income, administration makes use of a 24.5% tax charge to calculate the supply for revenue taxes to normalize Radiant’s tax charge to that of its rivals and to match Radiant’s reporting durations with totally different efficient tax charges. In addition, in arriving at Adjusted Net Income, the Company adjusts for sure non-cash prices and important objects that aren’t a part of common working actions. These changes embody revenue taxes, depreciation and amortization, change in truthful worth of contingent consideration, transition prices, lease termination prices, acquisition associated prices, litigation prices, amortization of debt issuance prices, change in truthful worth of rate of interest swap contracts, and acquire on forgiveness of debt.

We generally seek advice from the time period “net revenues” when commenting about our Company and the outcomes of operations. Net revenues are a Non-GAAP measure calculated as revenues much less immediately associated operations and bills attributed to the Company’s companies. We consider web revenues are a greater measurement than are whole revenues when analyzing and discussing the effectiveness of our business and is used as a portion of a key metric the Company makes use of to debate its progress.

EBITDA is a non-GAAP measure of revenue and doesn’t embody the results of curiosity, taxes, and the “non-cash” results of depreciation and amortization on long-term belongings. Companies have some discretion as to which parts of depreciation and amortization are excluded within the EBITDA calculation. We exclude all depreciation prices associated to property, know-how and tools, and all amortization prices (together with amortization of leasehold enhancements). We then additional modify EBITDA to exclude modifications in truthful worth of contingent consideration, bills particularly attributable to acquisitions, transition and lease termination prices, international forex transaction features and losses, extraordinary objects, share-based compensation expense, litigation bills unrelated to our core operations, acquire on forgiveness of debt, and different non-cash prices. While administration considers EBITDA, and adjusted EBITDA helpful in analyzing our outcomes, it’s not supposed to interchange any presentation included in our consolidated monetary statements.

We consider that these non-GAAP monetary measures, as offered, characterize a helpful technique of assessing the efficiency of our working actions, as they mirror our earnings developments with out the affect of sure non-cash prices and different non-recurring prices. These non-GAAP monetary measures are supposed to complement the GAAP monetary info by offering extra perception concerning outcomes of operations to permit a comparability to different firms, lots of whom use related non-GAAP monetary measures to complement their GAAP outcomes. However, these non-GAAP monetary measures is not going to be outlined in the identical method by all firms and will not be akin to different firms. Net Revenues, Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin shouldn’t be thought of in isolation or as an alternative to any of the consolidated statements of complete revenue ready in accordance with GAAP, or as a sign of Radiant’s working efficiency or liquidity.

SOURCE Radiant Logistics, Inc.