Management at 3PL Radiant Logistics expressed optimism for a turnaround in demand in the latter half of 2024, citing an increase in ocean container traffic. Founder and CEO Bohn Crain stated that they believe the market is reaching the bottom of the current cycle and expects to see more sustainable levels in the coming months.
Radiant (NYSE: RLGT) reported adjusted earnings per share of 11 cents for the fiscal second quarter, surpassing estimates but lower than the previous year. Revenue declined by 28% year over year, with adjusted earnings also decreasing by 52%. The company generated $12.1 million in cash flow during the period and remains debt-free with $32.9 million in cash reserves.
Furthermore, Radiant announced the acquisition of Select Logistics and Select Cartage, which operate under the Adcom Worldwide brand. The company plans to continue acquiring independent agent stations and nonaffiliated 3PLs, aiming to expand its services in the industry.
In addition, Radiant repurchased $3.1 million in stock in the first six months of the fiscal year and stated its intention to continue share repurchases in the future. The company believes it can acquire one station every quarter, with most conversions producing significant EBITDA.
