Attached files
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| 8-K/A - RADIANT LOGISTICS, INC | v226176_8ka.htm |
Exhibit 99.1
Radiant Logistics, Inc.
Unaudited Pro Forma Condensed
Consolidated Financial Information
Basis of Presentation
The accompanying unaudited pro forma condensed balance sheet as of March 31, 2011 gives effect to the acquisition of all of the issued and outstanding stock of DBA Distribution Services, Inc. ("DBA") by Radiant Logistics, Inc. (the "Company") as if the acquisition occurred on that date, including the Company's May 2011 election to exercise its right to convert $2.4 million in seller notes to equity. The accompanying unaudited pro forma condensed statements of operations for the nine months ended March 31, 2011 and the year ended June 30, 2010, give effect to the acquisition as if it occurred on the first day of each period presented.
Pro forma adjustments have been limited to only those adjustments that are: directly attributable to the transaction, factually supportable, and in the case of pro forma income statement adjustments, expected to have a continuing impact on the Company’s financial results.
The unaudited pro forma condensed financial information is provided for information purposes only and is not necessarily indicative of the results that would have occurred if the acquisition had occurred on the first day of each period presented. The unaudited pro forma financial statements should not be construed as being representative of future operating results or financial position of the Company and should be read in conjunction with the:
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1)
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Accompanying Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements;
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2)
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The Company’s historical audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2010, as filed with the Securities and Exchange Commission on September 27, 2010;
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3)
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DBA historical audited financial statements and notes for the fiscal years ended August 31, 2010 and 2009 (included as Item 9.01 (a) within the 8-K filed with the Securities and Exchange Commission on behalf of DBA on April 12, 2011); and
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RADIANT LOGISTICS, INC.
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Unaudited Pro Forma Condensed Consolidated Statement of Operations
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Nine months ended March 31, 2011
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(amounts in thousands, except share and per share information)
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| Historical Statements | |||||||||||||||||
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Radiant
Logistics, Inc.
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Distribution by Air, Inc. | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||||||
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Revenue
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$ | 132,888 | $ | 74,715 | $ | - | $ | 207,603 | |||||||||
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Cost of transportation
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91,562 | 65,497 | (15,663 | ) |
(a)
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141,396 | |||||||||||
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Net revenues
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41,326 | 9,218 | 15,663 | 66,207 | |||||||||||||
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Agent commissions
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28,530 | - | 15,663 |
(a)
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44,193 | ||||||||||||
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Personnel costs
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4,695 | 5,446 | - | 10,141 | |||||||||||||
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Selling, general and administrative expenses
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3,303 | 2,950 | - | 6,253 | |||||||||||||
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Depreciation and amortization
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906 | 140 | 526 |
(b)
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1,572 | ||||||||||||
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Total operating expenses
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37,434 | 8,536 | 16,189 | 62,159 | |||||||||||||
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Income from operations
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3,892 | 682 | (526 | ) | 4,048 | ||||||||||||
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Other expense
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(112 | ) | (124 | ) | (162 | ) |
(c)
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(515 | ) | ||||||||
| (117 | ) | (d) | |||||||||||||||
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Income before income tax expense
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3,780 | 558 | (688 | ) | 3,533 | ||||||||||||
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Income tax benefit (expense)
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(1,391 | ) | (223 | ) | 261 |
(e)
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(1,353 | ) | |||||||||
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Net income
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2,389 | 335 | (427 | ) | 2,180 | ||||||||||||
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Less: Net income attributable to non-controlling interest
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(119 | ) | - | - | (119 | ) | |||||||||||
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Net income attributable to Radiant Logistics, Inc.
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$ | 2,270 | $ | 335 | $ | (427 | ) | $ | 2,061 | ||||||||
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Basic earnings per common share
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0.07 | 0.07 | |||||||||||||||
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Diluted earnings per common share
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0.07 | 0.06 | |||||||||||||||
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Basic weighted average common
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30,368,446 | 1,071,429 | (f) | 31,439,875 | |||||||||||||
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shares outstanding
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Diluted weighted average common
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31,543,046 | 1,071,429 | (f) | 32,614,475 | |||||||||||||
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shares outstanding
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(a)
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To reclassify station commisions from cost of transportation to a separate line item of operating costs consistent with the financial presentation of the Company.
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||||||||||||
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(b)
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To reflect amortization of acquired identifiable intangibles.
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(c)
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To reflect incremental interest expense at 4.0% associated with borrowings for the $5.4 million in cash paid at closing.
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| (d) |
To reflect incremental interest expense at 6.5% associated with the $4.8 million in seller notes issued at closing (less the $2.4 million converted to equity effective May 31, 2011).
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(e)
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To reflect taxes.
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(f)
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To reflect the issuance of 1,071,429 shares in connection with the conversion of $2.4 million in DBA seller notes to equity.
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RADIANT LOGISTICS, INC.
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Unaudited Pro Forma Condensed Consolidated Balance Sheet
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Nine months ended March 31, 2011
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(amounts in thousands)
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Historical Statements
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Radiant
Logistics, Inc.
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Distribution by Air, Inc.
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Pro Forma
Adjustments
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Pro Forma
Consolidated
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Current assets:
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Cash and cash equivalents
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$ | 61 | $ | 1,974 | $ | (5,400 | ) |
(a)
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$ | 1,005 | |||||||
| 5,400 |
(b)
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||||||||||||||||
| (1,030 | ) |
(d)
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Accounts receivable, net
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23,361 | 14,822 | - | 38,183 | |||||||||||||
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Current portion of employee receivable
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16 | - | - | 16 | |||||||||||||
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Current portion of station receivable
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95 | - | - | 95 | |||||||||||||
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Income tax deposit
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- | 41 | - | 41 | |||||||||||||
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Prepaid expenses and other current assets
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916 | 438 | (207 | ) |
(d)
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1,147 | |||||||||||
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Deferred tax asset
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351 | 211 | - | 562 | |||||||||||||
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Total current assets
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24,800 | 17,486 | (1,237 | ) | 41,049 | ||||||||||||
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Furniture and equipment, net
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866 | 527 | - | 1,393 | |||||||||||||
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Goodwill and acquired intangibles, net
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2,370 | - | 5,930 |
(c)
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9,695 | ||||||||||||
| 1,395 |
(e)
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Employee receivable
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41 | - | - | 41 | |||||||||||||
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Station receivable
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127 | - | - | 127 | |||||||||||||
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Investment in real estate
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40 | - | - | 40 | |||||||||||||
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Deposits & other assets
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206 | 187 | - | 393 | |||||||||||||
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Deferred tax asset
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188 | 266 | - | 454 | |||||||||||||
| $ | 28,638 | $ | 18,466 | $ | 6,088 | $ | 53,192 | ||||||||||
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Current liabilities:
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Notes payable
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$ | - | $ | 555 | $ | (555 | ) |
(d)
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$ | - | |||||||
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Accounts payable and accrued transportation costs
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17,149 | 8,590 | - | 25,739 | |||||||||||||
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Commission payable
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2,306 | - | - | 2,306 | |||||||||||||
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Accrued expenses
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762 | 2,098 | - | 2,860 | |||||||||||||
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Income taxes payable
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91 | 3 | - | 94 | |||||||||||||
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Capital lease obligations
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- | 58 | - | 58 | |||||||||||||
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Due former Adcom shareholder
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34 | - | - | 34 | |||||||||||||
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Due former DBA shareholders
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- | - | 1,600 |
(f)
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2,600 | ||||||||||||
| 1,800 |
(g)
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| (800 | ) |
(h)
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Other current liabilities
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75 | - | - | 75 | |||||||||||||
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Total current liabilities
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20,417 | 11,304 | 2,045 | 33,766 | |||||||||||||
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Long-term debt
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4,611 | 682 | 5,400 |
(b)
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10,011 | ||||||||||||
| (682 | ) |
(d)
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Other long term liabilities
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659 | 272 | 3,200 |
(f)
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2,531 | ||||||||||||
| (1,600 | ) |
(h)
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Capital lease obligations
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- | 138 | - | 138 | |||||||||||||
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Deferred tax liability
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- | - | 1,395 |
(e)
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1,395 | ||||||||||||
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Total liabilities
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25,687 | 12,396 | 9,758 | 47,841 | |||||||||||||
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Stockholders' equity
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Common stock
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16 | 5 | (5 | ) |
(d)
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17 | |||||||||||
| 1 |
(h)
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Additional paid in capital
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8,462 | 605 | (605 | ) |
(d)
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10,861 | |||||||||||
| 2,399 |
(h)
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Treasury stock
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(1,407 | ) | (1,765 | ) | 1,765 |
(d)
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(1,407 | ) | |||||||||
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Accumulated earning (deficit)
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(4,197 | ) | 7,225 | (7,225 | ) |
(d)
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(4,197 | ) | |||||||||
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Noncontrolling interest
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77 | - | - | 77 | |||||||||||||
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Total stockholders' equity
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2,951 | 6,070 | (3,670 | ) | 5,351 | ||||||||||||
| $ | 28,638 | $ | 18,466 | $ | 6,088 | $ | 53,192 |
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(a)
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To reflect payment of $5.4 million in cash paid at closing.
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(b)
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To reflect $5.4 million of incremental borrowings in connection with the transaction.
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(c)
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To reflect goodwill and other acquired intangibles.
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(d)
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To reflect the payment of founder notes satisfied at closing and the elimination of equity balances.
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(e)
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To reflect the deferred tax liability associated with the intangible assets
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(f)
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To reflect issuance of $4.8 million in seller notes payable over three years.
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(g)
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To reflect integration payment of $1.8 million in connection with the transaction, due not later than 18 months after consummation of the transaction.
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(h)
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To reflect the May 2011 exercise of Forced Conversion Rights whereby the Company converted $2.4 million of DBA seller notes to equity.
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RADIANT LOGISTICS, INC.
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Unaudited Pro Forma Condensed Consolidated Statement of Operations
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Year ended June 30, 2010
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(amounts in thousands, except share and per share information)
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| Historical Statements | |||||||||||||||||
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Radiant
Logistics, Inc.
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Distribution by
Air, Inc.
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Pro Forma
Adjustments
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Pro Forma
Consolidated
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Revenue
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$ | 146,716 | $ | 87,345 | $ | - | $ | 234,061 | |||||||||
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Cost of transportation
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101,086 | 75,803 | (17,700 | ) |
(a)
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159,189 | |||||||||||
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Net revenues
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45,630 | 11,542 | 17,700 | 74,872 | |||||||||||||
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Agent commissions
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31,377 | - | 17,700 |
(a)
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49,077 | ||||||||||||
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Personnel costs
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5,882 | 7,014 | - | 12,896 | |||||||||||||
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Selling, general and administrative expenses
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4,295 | 4,081 | - | 8,376 | |||||||||||||
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Depreciation and amortization
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1,598 | 224 | 928 |
(b)
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2,750 | ||||||||||||
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Total operating expenses
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43,152 | 11,319 | 18,628 | 73,099 | |||||||||||||
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Income from operations
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2,478 | 223 | (928 | ) | 1,773 | ||||||||||||
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Other expense
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694 | 40 | (216 | ) |
(c)
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362 | |||||||||||
| (156 | ) | (d) | |||||||||||||||
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Income before income tax expense
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3,172 | 263 | (1,144 | ) | 2,291 | ||||||||||||
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Income tax benefit (expense)
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(1,094 | ) | (119 | ) | 435 |
(e)
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(778 | ) | |||||||||
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Net income
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2,078 | 144 | (709 | ) | 1,513 | ||||||||||||
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Less: Net income attributable to non-controlling interest
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(119 | ) | - | - | (119 | ) | |||||||||||
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Net income attributable to Radiant Logistics, Inc.
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$ | 1,959 | $ | 144 | $ | (709 | ) | $ | 1,394 | ||||||||
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Basic earnings per common share
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0.06 | 0.04 | |||||||||||||||
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Diluted earnings per common share
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0.06 | 0.04 | |||||||||||||||
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Basic weighted average common
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32,548,492 | 1,071,429 | (f) | 33,619,921 | |||||||||||||
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shares outstanding
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Diluted weighted average common
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32,720,019 | 1,071,429 | (f) | 33,791,448 | |||||||||||||
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shares outstanding
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|||||||||||||||||
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(a)
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To reclassify station commisions from cost of transportation to a separate line item of operating costs consistent with the financial presentation of the Company.
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||||||||||||
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(b)
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To reflect amortization of acquired identifiable intangibles.
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||||||||||||
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(c)
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To reflect incremental interest expense at 4.0% associated with borrowings for the $5.4 million in cash paid at closing.
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||||||||||||
| (d) |
To reflect incremental interest expense at 6.5% associated with the $4.8 million in seller notes issued at closing (less the $2.4 million converted to equity effective May 31, 2011).
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||||||||||||
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(e)
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To reflect taxes.
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(f)
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To reflect the issuance of 1,071,429 shares in connection with the conversion of $2.4 million in DBA seller notes to equity.
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