EX-99.1 4 ex99-1.htm
EXHIBIT 99.1

Contact:
Bohn H. Crain
 
Chief Executive Officer
 
Radiant Logistics, Inc.
 
(425) 943-4599


RADIANT ANNOUNCES FIRST QUARTER RESULTS AND REAFFIRMS ANTICPATED ORGANIC REVENUE GROWTH OF 30-40%

Expansion Plans Remain on Track with Calendar Year 2007 Revenues
Targeted at $65-$70 Million
 
 
BELLEVUE, WA, November 14, 2006 - Radiant Logistics, Inc. (OTC BB: RLGT), a domestic and international freight forwarding and logistics services company, today reported financial results for the three months ended September 30, 2006.

For the three months ended September 30, 2006, Radiant reported net income of $160,000 on $14.4 million of revenues, or $0.00 per basic and fully diluted share. For the three months ended September 30, 2005, when it remained in the development stage, the Company reported no revenues and a net loss of $15,000.

The Company also reported adjusted EBITDA (earnings before interest, taxes, depreciation amortization) of $398,000 for the three months ended September 30, 2006, compared to an adjusted EBITDA loss of $14,000 for the comparable prior year period. A reconciliation of our adjusted EBITDA to the most directly comparable GAAP measure appears at the end of this release.

Radiant completed its platform acquisition effective January 1, 2006, when it purchased Airgroup Corporation (“Airgroup”), a Seattle, Washington-based, company providing a full range of domestic and international freight forwarding services. Founded in 1987, Airgroup services a diversified account base including manufacturers, distributors and retailers through its extensive network of exclusive agent offices across North America.

The Company has also provided additional prior period analysis using pro forma results of operations presented as if Radiant had acquired Airgroup as of July 1, 2005 which is included on the Company’s Form 10-Q for the quarter ended September 30, 2006 and filed November 14, 2006.
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“Radiant posted another profitable quarter with $14.4 million in revenue and $398,000 in adjusted EBITDA for the three months ended September 30,” said Bohn Crain, Chairman and CEO. “Our results through September are generally reflective of the historical base of business that we enjoy through our acquisition of Airgroup. In future quarters we should begin to see the positive impact to top-line revenue growth and margin expansion as a result of our expansion efforts in Los Angeles, Long Beach, Dallas/Ft. Worth and others new agent partners that are in the pipeline. We are re-affirming our preliminary revenue guidance for calendar year 2007 which we expect to be in the range of $65-$70 million, or an increase of 30-40%, from our current base of approximately $50 million in revenues and we look forward to providing additional updates as we progress.”

Supplemental Pro Forma Information

We believe that supplemental disclosure of our adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization adjusted for stock-based compensation and other non-cash costs is a useful measure for investors because it eliminates the effect of certain non-cash costs and provides an important metric for our business. A reconciliation of adjusted EBITDA amounts to the most directly comparable GAAP measure for the three and six months ended June 30, 2006 and 2005 is shown below:
 
(Amounts in 000’s)
  
Three months ended
June 30,
  
   
2006
  
2005
  
Net income (loss)
  
$
160
  
$
(15
)
               
Depreciation and amortization
    
186
    
—
  
Interest expense, net
    
5
    
1
  
Income tax expense (benefit)
    
2
    
—
  
               
EBITDA
    
353
    
(14
)
Stock-based compensation
    
45
        
Adjusted EBITDA
  
$
398
  
$
(14
)

This supplemental pro forma financial information is presented for informational purposes only and is not a substitute for the historical financial information presented in accordance with accounting principles generally accepted in the United States.
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Investor Conference Call

Radiant will host a conference call for shareholders and the investing community on Thursday November 16, 2006 at 11:00am, ET to discuss the contents of the release. The call can be accessed by dialing (877) 407-8031, or (201) 689-8031 for international participants, and is expected to last approximately 30 minutes. Callers are requested to dial in 5 minutes before the start of the call. An audio replay will be available for one week after the teleconference by dialing (877) 660-6853, or (201) 612-7415 for international callers, and using account number 286 and conference ID number 220976.
 
About Radiant Logistics (OTC BB: RLGT)
 
Radiant Logistics (www.radiant-logistics.com) is executing a strategy to build a global transportation and supply chain management company through organic growth and the strategic acquisition of regional best-of-breed non-asset based transportation and logistics providers, to offer its customers domestic and international freight forwarding and an expanding array of value added supply chain management services, including order fulfillment, inventory management and warehousing. For more information about Radiant Logistics, please contact Bohn Crain at (425) 943-4599.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. While it is impossible to identify all of the factors that may cause our actual operating performance, events, trends or plans to differ materially from those set forth in such forward looking statements, such factors include, but are not limited to, the level of economic activity of our current customers, our ability to attract and retain new and existing customers, competitive conditions in our industry, our ability to successfully integrate newly established stations into our network, our ability to maintain relationships with our exclusive agents, our ability to identify and secure additional financing to execute our growth strategy, and those other factors disclosed in our Transition Report on Form 10-KT under the caption "Risk Factors" and other filings in our filings with Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiant-logistics.com). Readers are cautioned not to place undue reliance on our forward- looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statement to reflect events or circumstances occurring after the date hereof.
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RADIANT LOGISTICS, INC.
(f/k/a Golf Two, Inc.)
Consolidated Balance Sheets
(UNAUDITED)
 
   
September 30,
  
June 30,
  
   
2006
  
2006
  
ASSETS
          
Current assets -
      
 
  
Cash and cash equivalents
  
$
894,711
  
$
510,970
  
Accounts receivable, net of allowance for doubtful accounts of $201,682 at September, 30 2006 and $202,830 at June 30, 2006
    
8,290,692
    
8,487,899
  
Current portion of employee loan receivables and other receivables
    
41,929
    
40,329
  
Prepaid expenses and other current assets
    
12,276
    
93,087
  
Deferred tax asset
    
232,864
    
277,417
  
Total current assets
    
9,472,472
    
9,409,702
  
 
            
Furniture and equipment, net
    
559,359
    
258,119
  
Acquired intangibles, net
    
2,248,641
    
2,401,600
  
Goodwill
    
4,718,189
    
4,712,062
  
Employee loan receivable
    
120,000
    
120,000
  
Investment in real estate
    
40,000
    
40,000
  
Deposits and other assets
    
118,025
    
103,376
  
   
$
17,276,686
  
$
17,044,859
  
 
            
           
Current liabilities -
            
Accounts payable
  
$
4,680,473
  
$
4,096,538
  
Accrued transportation costs
    
1,562,873
    
1,501,374
  
Commissions payable
    
506,976
    
429,312
  
Other accrued costs
    
255,684
    
303,323
  
Income taxes payable
    
847,450
    
1,093,996
  
Total current liabilities
    
7,853,456
    
7,424,543
  
 
              
Long term debt
    
1,867,838
    
2,469,936
  
Deferred tax liability
    
764,538
    
816,544
  
Total liabilities
    
10,485,832
    
10,711,023
  
 
            
Commitments & contingencies
    
—
    
—
  
 
            
Stockholders' equity:
            
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued or outstanding
    
—
    
—
  
Common stock, $0.001 par value, 50,000,000 shares authorized: issued and outstanding: 33,861,639 at September 30, 2006 and 33,611,639 at June 30, 2006
   
17,567
    
15,067
  
Additional paid-in capital
    
6,885,347
    
6,590,355
  
Accumulated deficit
    
(112,060
)
  
(271,586
)
Total Stockholders’ equity
   
6,790,854
    
6,333,836
  
   
$
17,276,686
  
$
17,044,859
  
 
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RADIANT LOGISTICS, INC.
(f/k/a Golf Two, Inc.)
Consolidated Statements of Income (Operations)
(UNAUDITED)
 
   
THREE MONTHS ENDED
SEPTEMBER 30,
  
 
  
2006
  
 2005
  
            
Revenue
  
$
14,417,101
  
$
—
  
Cost of transportation
    
9,423,319
    
—
  
Net transportation revenues
    
4,993,782
    
—
  
 
              
 
              
Agent Commissions
    
3,727,317
    
—
  
Personnel costs
    
507,032
    
—
  
Selling, general and administrative expenses
    
405,905
    
14,075
  
Depreciation and amortization
    
186,106
    
—
  
Total operating expenses
    
4,826,360
    
14,075
  
               
Income (loss) from operations
    
167,422
    
(14,075
)
 
              
Other income (expense):
              
Interest income
    
1,805
    
—
  
Interest expense
    
(7,491
)
  
(500
)
Other
   
(402
)
  
—
  
Total other income (expense)
    
(6,088
)
  
(500
)
               
Income (loss) before income tax expense (benefit)
    
161,334
    
(14,575
)
 
              
Income tax (benefit)
    
1,808
    
—
  
Net income (loss)
  
$
159,526
  
$
(14,575
)
 
              
Net income (loss) per common share - basic
 
$
0.00
  
$
0.00
  
Net income (loss) per common share - diluted
  
$
0.00
  
$
0.00
  
             
Weighted average shares outstanding:
              
Basic shares
    
33,652,400
    
25,964,176
  
Diluted share
    
36,137,182
    
25,964,176
  
 
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RADIANT LOGISTICS, INC.
Reconciliation of EBITDA to Net Income and Net Cash Provided By (Used In) Operating Activities
(UNAUDITED)

As used in this report, adjusted EBITDA means earnings before interest, income taxes, depreciation and amortization adjusted for stock-based compensation and other non-cash costs. We believe that adjusted EBITDA, as presented, represents a useful method of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash charges. Adjusted EBITDA is also used by our creditors in assessing debt covenant compliance. We understand that although securities analysts frequently use EBITDA in their evaluation of companies, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. EBITDA is not intended as an alternative to cash flow provided by (used in) operating activities as a measure of liquidity, as an alternative to net income as an indicator of our operating performance, nor as an alternative to any other measure of performance in conformity with accounting principles generally accepted in the United States of America.

The following is a reconciliation of adjusted EBITDA to both net income and cash flow provided by (used in) operating activities:
 
   
THREE MONTHS ENDED
SEPTEMBER 30,
  
   
2006
  
 2005
  
Adjusted EBITDA
  
$
398,119
  
$
(14,075
)
Stock-based compensation
    
44,992
   
—
  
EBITDA
    
353,127
    
(14,075
)
               
Depreciation and amortization
    
186,106
    
—
  
Interest expense net of interest income
    
5,686
    
500
  
Income tax expense (benefit)
    
1,809
   
—
  
Net income (loss)
    
159,526
   
(14,575
)
               
               
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH
              
PROVIDED BY (USED FOR) OPERATING ACTIVITIES:
              
non-cash contribution to capital (rent)
    
—
    
300
  
non-cash compensation expense (stock options)
    
44,992
    
—
  
amortization of intangibles
    
152,959
    
—
  
amortization of deferred tax liability
    
(52,006
)
  
—
  
depreciation
    
25,994
        
amortization
    
7,153
    
—
  
provision for doubtful accounts
    
—
    
—
  
change in accounts receivable
    
(6,128
)
  
—
  
 
              
CHANGE IN OPERATING ASSETS AND LIABILITIES:
              
restricted cash
    
—
    
(9,340
)
accounts receivable
    
197,207
    
—
  
employee receivable and other receivables
    
(1,600
)
  
—
  
prepaid expenses and other current assets
    
103,562
    
—
  
accounts payable
    
583,935
    
—
  
accrued transportation costs
    
61,499
    
—
  
commissions payable
    
77,664
    
—
  
other current liabilities
    
(47,639
)
  
500
  
income tax payable
    
(246,546
)
  
—
  
Net cash provided by (used for)
              
operating activities
  
$
1,060,572
  
$
(23,115
)
               
 
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