Radiant Logistics, Inc. · AMEX:RLGT
Radiant Logistics — 7th Annual Cowen & Company Global Transportation and Aerospace/Defense Conference (September 2014)
28 slides from Radiant Logistics's conference presentation, Sep 4, 2014
Slide 1: 7th Annual Cowen & Company Global Transportation and Aerospace/Defense Conference
(NYSE-MKT: RLGT) 7th Annual Cowen & Company Global Transportation and Aerospace/Defense Conference September 4, 2014
Slide 2: Forward-looking statements
This presentation may include 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. We have based these forward-looking statements on our current expectations and projections about future events.
Slide 3: Our Mission
Our Mission To build a global transportation and logistics company through organic growth and the strategic acquisition of best-of-breed non-asset based transportation and logistics providers.
Slide 4: Overview
se = Overview Page RADIANT, »
Slide 5: What We Do
What We Do Non-Asset based 3rd Party Logistics Provider (3PL) As a non-asset based service provider, our CAPEX requirements for transportation assets is minimal Providing customized time critical domestic and int’l transportation and logistics solutions Shipments are generally larger than shipments
Slide 6: Background
Background In October of 2005, we launched Radiant Logistics, Inc. as a public company (OTC:RLGT) and in January of 2006, acquired Airgroup Corporation, then generating +/- $50.0M in freight forwarding revenues through a network of 34 exclusive agent offices across North America Through organic expa
Slide 7: On Time Express – Line Haul Network
On Time Express – Line Haul Network Dedicated Line Haul Network supporting Radiant’s 90+ locations across North America.
Slide 8: Acquisition History (through 2013)
Acquisition History (through 2013) Significant experience executing and integrating attractive acquisition targets 2008 Adcom Worldwide Revenues $60MM Revenue $337MM $51MM 2005 Revenues $51MM 2006 Automotive Services Group Revenues $12MM 2011 DBA Distribution Revenues $92MM 2012 ALBS Logistics Reven
Slide 9: Strategic Direction – The "Gray Tail"
Strategic Direction – The “Gray Tail” Structural changes resulting from industry deregulation (1) and the natural “graying” of industry pioneers provides an opportunity to support the logistics entrepreneur in transition Uniquely positioned to bring value to the logistics entrepreneur Leveraging our
Slide 10: $21.0M in Non-Dilutive Growth Capital – December 2013
$21.0M in Non-Dilutive Growth Capital – December 2013 Redeemable, Perpetual Preferred Stock; publically traded as RLGT-PA Dividends - 9.75%, quarterly cash pay Maturity – Perpetual Redemption – Non-call 5 years, thereafter at par plus accrued and unpaid dividends Use of Proceeds – Retired 13.5% mezz
Slide 11: The Network
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Slide 12: The Radiant Network Brands
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Slide 13: Dense Geographical Footprint
Dense Geographical Footprint – Over 90 Stations in the US 13 Company owned stations in major port and logistics centers 79 Agent owned stations in 27 states Radiant's growing critical mass and market reputation makes it increasingly attractive to new agents looking to join its network Conversion of
Slide 14: Highly Diversified Customer Base
Highly Diversified Customer Base Industries Served Aviation & Automotive Military & Government Manufacturing & Consumer Goods Industrial & Farm Medical, Healthcare & Pharmaceuticals Electronics & High Tech Oil & Gas/Energy Trade Shows, Events & Advertising Retail Radiant serves over 3,000 individual
Slide 15: Network Attributes
Network Attributes Net Revenues by Geography Net Revenues by Location Ownership Strong margin expansion potential in company-owned locations through agent conversions and reaching critical mass in international markets
Slide 16: Experienced Management Team
Experienced Management Team Bohn Crain Chairman & CEO Founder, Chairman and CEO since October 2005 20 years of industry and capital markets experience in transportation and logistics, including over 10 years at CSX Bachelor of Business Administration with a focus on Accounting from the University of
Slide 17: Financial Highlights
———— _—— Financial Highlights Page16 RADIANT, »
Slide 18: Consistent Revenue and Earnings Growth
Consistent Revenue and Earnings Growth Radiant Logistics business model drives strong earnings and Adjusted EBITDA growth Adjusted EBITDA2 CAGR – 47% Revenue CAGR – 42% Note: June 30 fiscal year end Pro forma for the acquisition of On Time Express See “Management’s Discussion and Analysis of Financi
Slide 19: Leveraging the Agent Based Model
Agent Commissions $43MM Leveraging the Agent Based Model Attracting new agents to the network increases earnings, and converting existing independent agents to company owned stores can further increase earnings dramatically $141MM Purchased Transportation $63MM Net Revenues $13MM Radiant Personnel,
Slide 20: The Benefits of Acquiring Agent Forwarders
The Benefits of Acquiring Agent Forwarders Radiant’s network of agents provides a pool of attractive acquisition opportunities Agent Financials $20MM $242MM Purchased Transportation $95MM Radiant Net Revenues $28MM Radiant Personnel, SGA & Other Costs Illustrative Example Radiant Revenues $337MM $53
Slide 21: Adjusted EBITDA
* Adjusted EBITDA (Amount in 000's) Annual Quarterly Trend FYE6/30/13 FOE 9/30/13, FOE 12/31/13 FOE 3/31/14 FOE 6/30/14 (Actual) (Actual) (Actual) (Actual) (Estimate) Revenue $ 310,885 76,702 $ 84,144 § 86,033 $88,100-$92,800 Net income before preferred dividend $3,657 1092 $ wa S$ 1,648 $1,017-$1,3
Slide 22: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS
Slide 23: Understanding our Debt
* Understanding our Debt (Dollars in Millions) as of 3.31.14 Total Senior Credit Facility $ 5.2 Other Debt Seller Notes 0.8 Due to shareholder = Lease Termination 0.3 Total Other Debt 11 Total Debt per F/S $ 63 Cash and cash equivalents (4.0) Adjusted Debt, net of cash (1) Excludes contingent purcha
Slide 24: Valuing Our Stock – EBITDA
Valuing Our Stock – EBITDA (1) Excludes contingent purchase on acquisitions. (1)
Slide 25: Agent Conversions and Acquisition Verticals
Contract Logistics Customs Brokerage Truck Brokerage Intermodal(IMC) Forwarding Agent based Forwarding Networks Agent Conversions Acquisition Verticals Free-Standing Forwarders
Slide 26: Leveraging the Platform to Create Shareholder Value
Leveraging the Platform to Create Shareholder Value (1) Excludes contingent purchase on acquisitions. (1)
Slide 27: Radiant Logistics – Investment Highlights
Radiant Logistics – Investment Highlights Over 90 Stations in the USA: 13 Company owned locations 79 Agent owned locations Dense Geographical Footprint Radiant serves over 3,000 individual customers No single agency station accounts for more than 5% of net revenues Best in class customer service Hig
Slide 28: Thank You
THANK YOU It’s the Network that Delivers! ®