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Restatement of Previously Issued Consolidated Financial Statements
12 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Restatement of Previously Issued Annual Consolidated Financial Statements for the Fiscal Year Ended June 30, 2021

NOTE 2 - RESTATEMENT OF PREVIOUSLY ISSUED ANNUAL CONSOLIDATED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

As further described below, (i) our audited consolidated financial statements for the fiscal year ended June 30, 2021, and (ii) our unaudited consolidated financial statements covering the quarterly reporting periods during fiscal year 2021, consisting of the quarters ended September 30, 2020, December 31, 2020, March 31, 2021; and (iii) our unaudited consolidated financial statements covering the quarterly reporting periods during fiscal year 2022, consisting of September 30, 2021, December 31, 2021, and March 31, 2022 have been restated to reflect the correction of material errors. For restatement information on these interim periods, see Note 20, Quarterly Financial Data (Unaudited and Restated).

Restatement Background

The need for the restatement arose out of the results of certain financial analysis the Company performed in the course of preparing its fiscal year-end 2022 consolidated financial statements. Principally, in response to its December 2021 cyber event, which is discussed in Note 19, the Company completed a detailed lookback analysis to compare its estimated accrued in-transit revenues and related costs, primarily, purchased transportation and applicable commission expenses, to its actual customer invoicing, related transportation costs and other costs subsequently recorded. In the course of its analysis of the information gathered through the lookback process, the Company detected differences between the estimated accrued amounts and the actual revenues and expenses recorded due primarily to errors in the underlying shipment information that was used to calculate the original estimates of the accrued amounts. Management and the Audit and Executive Oversight Committee have concluded that, in the ordinary course of closing its financial books and records, the Company previously inadvertently excluded certain shipments for in-transit revenues and associated costs from the appropriate periods as required under GAAP. Therefore, the Company misstated gross revenues, associated costs, and related assets and liabilities during the Restatement Periods.

Restatement Adjustments

The Company inadvertently excluded certain in-transit revenues and associated costs, which led to accounting adjustments to correct errors identified as part of the revenue lookback process. The following table summarizes the effect of the errors on the Company’s consolidated balance sheet as of June 30, 2021 and consolidated statement of comprehensive income and consolidated statement of cash flows for the fiscal year ended June 30, 2021:

 

(In thousands)

June 30, 2021
As Previously Reported

 

Adjustment

 

June 30, 2021
As Restated

 

Contract assets

$

27,753

 

$

17,287

 

$

45,040

 

 

Total current assets

176,310

17,287

193,597

Total assets

357,241

17,287

374,528

Accounts payable

87,941

15,768

103,709

Operating partner commissions payable

13,779

1,286

15,065

Accrued expenses

6,801

11

6,812

Income tax payable

2,713

55

2,768

Total current liabilities

126,357

17,120

143,477

Total liabilities

195,838

17,120

212,958

Retained earnings

60,367

167

60,534

Total equity

161,403

167

161,570

 

(In thousands, except per share data)

Year Ended June 30, 2021
As Previously Reported

 

Adjustment

 

Year Ended
June 30, 2021
As Restated

 

Revenues

$

889,124

 

$

10,688

 

$

899,812

 

Cost of transportation and other services

 

668,299

 

 

10,107

 

 

678,406

 

Operating partner commissions

 

94,040

 

 

1,101

 

 

95,141

 

Personnel costs

 

55,378

 

 

(26

)

 

55,352

 

Selling, general and administrative expenses

 

24,434

 

 

(716

)

 

23,718

 

Income from operations

 

25,981

 

 

222

 

 

26,203

 

Income tax expense

 

(5,896

)

 

(55

)

 

(5,951

)

Net income

 

23,462

 

 

167

 

 

23,629

 

Net income attributable to Radiant Logistics, Inc.

 

22,943

 

 

167

 

 

23,110

 

 

 

 

 

 

 

 

Income per share:

 

 

 

 

 

 

Basic

$

0.46

 

$

 

$

0.46

 

Diluted

$

0.45

 

$

 

$

0.45

 

While the adjustments changed contract assets, accounts payable, and operating partner commissions payable line items in the consolidated cash flow statement, they did not have an impact on total net cash provided by operating activities, net cash used in investing activities, or net cash provided by (used for) financing activities.

 

(In thousands)

Year Ended
June 30, 2021
As Previously Reported

 

Adjustment

 

Year Ended
June 30, 2021
As Restated

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

$23,462

 

$167

 

$23,629

ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES

 

 

 

 

 

CHANGES IN OPERATING ASSETS AND LIABILITIES:

 

 

 

 

 

Contract assets

(11,392)

 

(17,287)

 

(28,679)

Income tax receivable/payable

3,578

 

55

 

3,633

Accounts payable

24,078

 

15,768

 

39,846

Operating partner commissions payable

4,648

 

1,286

 

5,934

Accrued expenses, other liabilities, and operating lease liability

(6,962)

 

11

 

(6,951)

Net cash provided by operating activities

14,100

 

 

14,100