Radiant Logistics, Inc. (AMEX:RLGT) Q4 2022 Earnings Call Transcript

Bohn Crain: I’m not envisioning that we would move to a dividend. I think we’ll, as we kind of alluded to, kind of get back to our core business strategy, which we’ve been kind of taken off task somewhat by this restatement process unfortunately. So that would manifest itself as continuing to look for acquisitions that are more likely to be tuck-in type acquisitions, and doing our stock buyback taking a balanced approach to both. And as we kind of think about some of those things, one of the kind of very early on thesis is, if that’s a word, for Radiant was providing exit strategies for our agent stations and kind of the built in pipeline of potential tuck-in acquisitions of our agent stations, that opportunity remains very real and vibrant.

And I think one of the trends we’re expecting to find is ultimately an acceleration of conversion of agency stations to company owned stores, because the fact is people aren’t getting any younger, right? So I think those opportunities will present itself. And it’s good to have financial flexibility, right, and not to be over levered because of all of the uncertainties. Had we been super aggressive in a buyback and been in this restatement period, that could have gotten a lot more uncomfortable. And believe me, it was uncomfortable enough as it was. So normalized leverage kind of 2.5x, trying to get back to our knitting of taking our free cash flows, notionally putting half of that to work on the buyback and half of it to work on transactions that we believe are accretive and of strategic value.

Mark Argento: That’s super helpful. Again, good to hear from you guys. And look forward and see how things play out here moving forward, but congrats on the great execution.

Bohn Crain: We’re just happy you’re here on the other end of the phone to talk to us. It’s good to be here.

Operator: Next question comes from Jeff Kauffman with Vertical Research. Please proceed.

Jeff Kauffman: Thank you very much and congratulations on getting to the other side of the mountain here.

Bohn Crain: Thanks, Jeff.

Jeff Kauffman: So two questions, if I can. First one is I’m sure that between lawyers and consultants, accountants, et cetera, there’s been a lot of expenses maybe a little bit more billable hours than would normally be the case. Is this been running through SG&A, because I noticed a big step up from a run rate of about 7 million.

Bohn Crain: Yes.

Jeff Kauffman: Okay. So it’s been running about 2 million to 3 million extra per quarter, and that should start to go down now that this is done.

Bohn Crain: Correct.

Jeff Kauffman: Okay.

Bohn Crain: Hopefully, I don’t think it was — my rough estimate of kind of what did the restatement cost us in the aggregate, I would put it at $2.5 million to $3 million. I wouldn’t put that — not on a per quarter. So I just want to dial that back. As (ph), some of those invoices fill sometimes. They haven’t gotten that enthusiastic.

Jeff Kauffman: All right, so let me recast that. In third quarter a year ago, we went from a run rate of about 7.5 million per quarter, maybe low 7s up to a run rate of about 10 million a quarter. And that run rate is coming down a little. But it’s kind of stayed up around 40 million a year from 28 million a year where it was running. So you’re saying only 3 million of that might be related to this? What would the other 7 million or 8 million be?

Bohn Crain: We can talk after the call. I’d have to dive into to get —