Slide 1: Radiant Global Logistics (NYSE-MKT: RLGT)
RADIANT & GLOBAL LOGISTICS (NYSE-MKT: RLGT) May 2015 CC :C‘C;7;3 }PSCt:~:
Slide 2: Disclaimer
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: Radiant Logistics – Investment Highlights
Radiant Logistics – Investment Highlights Non-Asset Based Transportation and 3rd Party Logistics (3PL) Provider Low capital intensity offers strong cash flow characteristics and significant flexibility in responding to changing industries and economic conditions Dense Geographical Footprint Approx.
Slide 4: The Radiant Network Brands
The Radiant Network Brands Radiant has significant experience executing and integrating attractive acquisition targets, and has built a strong network brand portfolio Radiant Acquisition History ALBS Logistics $12MM $60MM $92MM $25MM $20MM $28MM Incremental Revenues: ISLA Intl Phoenix Cartage//Don C
Slide 5: Radiant – Geographic Footprint
Radiant – Geographic Footprint Radiant has one of the largest network footprints in its industry with approx. 100 stations in the U.S. 14 company owned and 84 agent owned stations in major port & logistics centers in 27 states Network of independent carriers and international agents around the world
Slide 6: Radiant – Customer Base
Radiant – Customer Base Over 3,000 individual customers No single agency station accounts for more than 5% of net revenues Top 5 agency stations account for less than 20% of net revenues Top 10 customers account for only 20% of net revenues Best in class customer service Aviation & Automotive Milita
Slide 7: Opportunity to support the logistics entrepreneur in transition
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 status as a public company to provide
Slide 8: Radiant – Financial Performance
Radiant – Financial Performance Since its inception, Radiant has delivered consistent revenue and earnings growth Gross Revenue Net Revenue Breakdown EBITDA 38% CAGR Fiscal years ending June 30th Margin expansion potential through conversion of agencies to company-owned locations and reaching critic
Slide 9: Transaction Summary
Transaction Summary Structure Board-approved plan of arrangement under which Wheels and Radiant amalgamate and Wheels shareholders receive a consideration of cash and common shares of Radiant Consideration CAD $0.77per Wheels share with an option to receive a portion of the consideration in Radiant
Slide 10: Wheels – Investment Highlights
Wheels (TSX-V:WGI) – Investment Highlights Strong Track Record of Profitable Organic Growth Double digit organic revenue growth since 1988 (18% with acquisitions; 14% organic) Market leading position in Canada with a significant footprint in the U.S. Broad Intermodal and Truck Brokerage Capabilities
Slide 11: Well Established North American Platform
Founded in 1988, leading non-asset third party logistics (3PL) Dominant player in Canada, significant foot print in the U.S. Non-asset model enabling highly scalable growth, flexibility to shift modes, markets, services Canada Headquarters: Mississauga, Ontario U.S. Headquarters: Woodridge, IL Emplo
Slide 12: Extensive Network of Over 6,000 Partners
Extensive network of over 6,000 qualified transportation partners: One of the largest highway supplier bases in Canada Carrier selection expertise Direct and deep relationships with all Class I railroads in Canada and the United States Ensures dependable service and favourable pricing for customers
Slide 13: Wheels – Business Overview
Wheels – Business Overview Wheels’ strategic focus is on 3PL accounts, providing a single source solution for supply chain management, analysis and optimization Multi-mode capability targets the customer’s full wallet spend Highway Intermodal Boxcar Ocean Air Courier Full Load LTL Dry Van Temp. Cont
Slide 14: Wheels – Financial Performance
Wheels – Financial Performance Note: 2010 – 2011 are FYs ending Jan. 31st 2011 – 2012, respectively; 2012 is 11 months ending Dec. 31st 2012; FY is calendar year thereafter; TTM period ends September 30, 2014 Well-established North American platform Gross Revenue Gross Revenue Breakdown Adjusted EBI
Slide 15: Transaction Rationale
Transaction Rationale Service Verticals Free-Standing Forwarders Agent-Based Forwarding Networks Agent Conversions The transaction will bring geographic and service line expansion
Slide 16: Pro-Forma Financial Summary
Pro-Forma Financial Summary Pro-Forma Gross Revenue Pro-Forma EBITDA Fiscal years ending June 30th; management estimates for normalized baseline Radiant contribution of USD $19.5M plus Wheels contribution of USD $10.0M USD; Wheels financials converted to $USD using an FX rate of 1.15; full year cont
Slide 17: Benefits to Shareholders
Benefits to Shareholders Accelerated Growth Cross-sales opportunities between brokerage and forwarding service lines Particular focus on leveraging Radiant’s extensive U.S. footprint to sell Canadian competencies. Further differentiates the Radiant platform in terms of attracting additional agent st
Slide 18: Pro-Forma Management Team
Pro-Forma Management Team Bohn Crain Chairman & CEO Founder, Chairman and CEO of Radiant 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 (Accounting) from the University of Texa
Slide 19: Preliminary Projections for FYE 2016
Preliminary Projections for FYE 2016
Slide 20: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS
Slide 21: Understanding Our Debt
Understanding Our Debt (Dollars in Millions) estimated as of 3.31.15 Senior Credit Facilty 87 Other Debt Lease termination & other 0.9 Total debt before acquistion of Wheels 9.6 Cash and cash equivalents (based on 3.31.15 balances) (2.2) Debt, net of cash before Wheels Acquisiton” 7A Term Loan (IAM)
Slide 22: Valuing our Stock - EBITDA
Valuing our Stock - EBITDA (Dollars in Millions) Normalized Run-Rate EBITDA Valuation Multiple (10x-14x) Enterprise Value Less: Debt Redeemable Perpetual Preferred Value of Common Equity Fully Diluted Outstanding Price per Share
Slide 23: Leveraging the Platform to Create Shareholder Value
Leveraging the Platform to Create Shareholder Value
Slide 24: Thank You
THANK YOU It’s the Network that Delivers! ®