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

Todd Macomber: A part of it will be the incremental acquisitions that we’ve done, so you’ll have Navegate there, you’ll have our acquisition of Cascade will be two component parts.

Jeff Kauffman: Okay, well that’s what I was fishing for there. Thank you.

Todd Macomber: I’m just trying to remember myself. That line item — I don’t think that line item includes personnel costs. Personnel is broken out separately.

Jeff Kauffman: Right. We got commissions, we got Personnel and then we got SG&A. Okay. Now that we have numbers, I get a chance to go through the numbers. That’s all. Okay, so second question. Bohn, obviously, a lot of things are changing. And then you alluded to it in your comments. And we’re getting back to normalization. And you alluded to some of the specific headwinds, right, that we’re facing over the next six to nine months that are going to drag that down a little bit. But I’d love to hear a little more specificity if you could talk about maybe regions of the world, or maybe different industry groups where you’re seeing. And then just kind of give us, because you’ve got a great view of trade going on globally, and how things are moving from A to B, could you give us a better feel for kind of where things might actually be getting better at the increment?

And maybe where things are getting worse where it might not be as obvious as okay, we got a retail inventory correction going on.

Bohn Crain: So I guess just a quick backdrop for this, our core business ultimately is domestic boarding and happy to say domestic boarding in both the company owned and agency stores has continued to do very well even today, it’s continuing to do really well as we think about kind of the most durable pieces of our business through this cycle. Canada as well to date has done very well. Again, just as a reminder, we do a lot of kind of contract logistics bundled with our core transportation service offering in Canada, that’s continued to serve us really, really well. And Harry and his team are doing a great job. We have a little bit of exposure to intermodal and truck brokerage through what we used to call Clipper, now rebranded as Radiant Road & Rail, that business has been under pressures, not unlike the C.H. Robinson of the world or the truck brokerage boats with a slower economy, the asset base guys are gobbling up most of the freight or more freight than they would in a more normal environment.

So the brokerage folks are taking it on the chin right now a little bit. And so that will ultimately work its way through as supply and demand comes back into a better phase. And then candidly, the area that’s been hardest hit is international trade and ocean in particular, and specifically in comparative to the euphoria of what was taking place with the ocean carriers and the Transpac trade. So that’s definitely kind of where the softness has been most acute. But we’re pretty optimistic in terms of — we’re kind of late to some of these conversations, but part of that dynamic was the outbreak of COVID in China again. Part of their strategy in China taking extended Chinese New Year and the manufacturing facilities being on extended holiday and all of those things have contributed to that slowdown.