Radiant Logistics Inc (RLGT) 2011 Q4 法說會逐字稿

Greetings, and welcome to the Radiant Logistics financial discussion for fiscal year ended June 30, 2011.

This afternoon, Bohn Crain, Radiant Logistics Founder and CEO, will discuss financial results for the Company's fourth fiscal quarter and year ended June 30, 2011. Following his comments, we will open the call to questions. This conference is scheduled for 30 minutes.

This conference call may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Company has based these forward-looking statements on its current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties, and assumptions about the Company that may cause the Company's actual results or achievements to be materially different from the results or achievements expressed or implied by such forward-looking statements.

While it is impossible to identify all the factors that may cause the Company's actual results or achievements to differ materially from these set forth in our forward-looking statements, such factors include those that have in the past and may in the future be identified in the Company's SEC filings and other public announcements, which are available on the Radiant website at www.radiantdelivers.com. In addition, past results are not necessarily an indication of future performance.

Now I'd like to pass the call over to Radiant's Founder and CEO, Bohn Crain.

Thank you. Good afternoon, everyone, and thank you for joining in on today's call.

As we anticipated, the operating leverage available through our non-asset-based business model continues to show itself as we scale the business. And while the future direction of our economy remains unclear, we believe we remain well positioned to continue to drive profitable growth with an ability to aggressively manage our cost structure and our continued efforts to bring value to the agent-based forwarding community; leveraging our status as a public company to provide our partners with an opportunity to share in the value that they help create; providing a robust platform in terms of people, process, and technology, which is translating into better purchasing power with our vendors and more sophisticated e-business solutions for our customers; and offering a unique opportunity in terms of succession planning and liquidity for our station owners.

This approach has made us unique in the marketplace and has been key to our demonstrated ability to grow even through tough market conditions.

We are very pleased with our progress in integrating DBA and the results for the quarter and fiscal year ended June 30, 2011. For the quarter ended June 30, 2011, we posted record revenues of $70.9 million, an improvement of $30.2 million, or 74.2%, over the comparable prior-year period. Net transportation revenues also increased 60.6% to $21.2 million, as compared to $13.2 million for the comparable prior-year period.

For the same quarter, we also reported $1.9 million in adjusted EBITDA, an improvement of $500,000, or 35.7%, over the comparable prior-year period. Excluding $583,000 in nonrecurring transition costs associated with our acquisition of DBA, we would have reported $2.485 million in adjusted EBITDA for the three months ended June 30, or an improvement of $1.085 million, or 77.5%.

For the fiscal year ended June 30, 2011, we also posted record revenues of $203.8 million, an improvement of $57.1 million, or 38.9%, compared to $146.7 million in revenues for the prior year. Net transportation revenues also increased 36.3% to $62.5 million as compared to $45.6 million for the comparable prior-year period.

This positive trend also continued in terms of profitability as we reported $6.823 million in adjusted EBITDA for the year ended June 30, 2011, an improvement of $2.577 million, or 60.7%, over the comparable prior-year period. Excluding the $583,000 in nonrecurring transition costs associated with DBA, we would have reported $7.406 million in adjusted EBITDA for the year, an improvement of $3.16 million, or 74.4%.

As we move further into our new fiscal year, our three-pronged strategy for profitable growth remains unchanged, providing continuous improvement to our existing network participants in terms of technology, buy rates, and enhanced service offerings; building upon the success of our organic growth initiative by onboarding additional agent stations; and opportunistically pursuing acquisition opportunities that can leverage our platform.

Our organic expansion efforts continue to deliver positive results with recent new additions in Tucson, Houston, and Nogales. We also are in conversations with a number of additional candidates, which look promising in the relatively near term. I can also tell you that we have never been more bullish on our acquisition pipeline, both in terms of quantity and quality of potential new partners that can benefit from our platform and further enhance our network.

I will now shift my comments to a more detailed view of our financial results, and then we will open it up for Q&A. Today, we will be discussing our financial results for our fourth fiscal quarter and year ended June 30, 2011. As we discuss our financial results, in addition to a discussion of reported net income, we will also provide financial metrics in terms of EBITDA.

EBITDA remains an important metric for us for a couple of reasons. First, we believe EBITDA is a useful measure with respect to understanding our earnings trends without the impact of certain non-cash charges associated with purchase accounting and the amortization of the acquired customer relationship asset. And secondly, EBITDA is used by our creditors in assessing debt covenant compliance.

For the three months ended June 30, 2011, we reported net income of $582,000 on $70.9 million in revenues, or $0.02 per basic and fully diluted share, and that is including $139,000 in nonrecurring transaction and severance costs and the $583,000 in nonrecurring transaction costs associated with DBA. For the three months ended June 30, 2010, we reported net income of $844,000 on $40.7 million in revenues, or $0.03 per basic and fully diluted share, including a nonrecurring gain of $135,000 on an extinguishment of debt.

For the year ended June 30, 2011, we reported net income of $2.852 million on $203.8 million of revenues, or $0.09 per basic and fully diluted share, including $139,000 in nonrecurring transaction and severance costs and the $583,000 nonrecurring transition costs associated with DBA. For the year ended June 30, 2010, we reported net income of $1.959 million on $146.7 million in revenues, or $0.06 per basic and fully diluted share, including $854,000 in nonrecurring gains.

In the quarter ended June 30, 2011, we incurred $139,000 in non-recurring transaction and severance costs in connection with our acquisition of DBA, which is considered as add-backs for purposes of calculating our adjusted EBITDA. In addition during the same period, we also incurred $583,000 in non-recurring transition costs, which are principally personnel costs that are being eliminated in connection with the winding down of DBA's historical back office operations, as these functions are being transitioned to our headquarters here in Bellevue.

There are three components to the $854,000 of nonrecurring gains from the prior year. In June of 2010, we recognized a gain of $135,000 related to payments made to the former shareholder of Adcom and satisfaction of integration and earnout obligations payable in Company stock that were ultimately paid in cash at a discount. In March of 2010, we recognized a benefit of $364,000 resulting from a refund of overpayments made to the state of Washington in connection with business and occupancy taxes. And in December of 2009, we recognized a gain of $355,000 in connection with a favorable settlement of a dispute with the former owner of Adcom related to the calculation and payment of working capital and certain related post-closing items.

On an EBITDA basis, we reported adjusted EBITDA of $1.902 million for the three months ended June 30, 2011, which excludes the $139,000 of nonrecurring transaction and severance costs, compared to adjusted EBITDA of $1.4 million for the three months ended June 30, 2010, for an increase of $502,000 and 35.9% over the comparable prior-year period. Excluding the $583,000 in nonrecurring transition costs associated with DBA, we would have reported $2.485 million in adjusted EBITDA for the three months, an increase of $1.085 million and 77.5% over the comparable prior-year period.

We also reported adjusted EBITDA of $6.823 million for the year ended June 30, 2011, again excluding $139,000 of nonrecurring transaction and severance costs. That compared to $4.246 million for the year ended June 30, 2010, for a net increase of $2.577 million and 60.7% over the comparable prior-year period. Again, excluding the $583,000 in nonrecurring transition costs from DBA, we would have reported $7.406 million in adjusted EBITDA for the year ended June 30, 2011, or an increase of $3.16 million and 74.4% over the comparable prior-year period.

A reconciliation of our adjusted EBITDA to our most directly-comparable GAAP measures appear at the end of our release.

The operating leverage available through our non-asset-based business model also continues to improve as we scale the business. Excluding the $583,000 in transition costs, as a percentage of net revenues our operating income increased from 9.2 -- from 5.4%, and those same metrics on an EBITDA basis increased to 11.8%.

We remain focused on these metrics and are very excited about these trends, the leverage of our scalable business model, and the anticipated margin expansion available to us as we continue to execute our growth strategy.

For all the opportunity to drive growth, obviously the key is to deliver profitable growth. As we have discussed in prior calls, we believe we have the platform in terms of people, process, and technology to do just that, deliver profitable growth. Again, we expect EBITDA to net revenue margins of approximately 12% to be a good proxy for margins based upon our current platform. As we continue to scale the business, we will have opportunity for meaningful margin expansion.

Based upon our progress in the DBA integration, we have also updated our prior guidance for fiscal 2012 and are increasing our guidance from $9 million in adjusted EBITDA to $9.25 million in adjusted EBITDA on the previously projected $285 million in annual revenues. This is before considering the impact of any future acquisitions or new agent stations that we may onboard over the balance of the fiscal year.

With respect to our credit facility with B of A, even after our acquisition of DBA we only have approximately $6 million drawn against our $20 million credit facility and enjoy a fair amount of financial flexibility to pursue acquisitions should the right opportunity present itself.

With that, I'll turn the call back over to our moderator to facilitate any Q&A from our callers.

(Operator Instructions). Howard Halpern, Taglich Brothers.

Congratulations. This is an outstanding quarter and a great year.

Thank you very much.

Just first off, a modeling question. For personnel costs and SG&A costs going forward, just the $3 million and $2 million, respectively, that occurred in the fourth quarter, is that a good baseline number to work off of going forward?

Yes, it is. We specifically tried to carve out those costs that we expected to be eliminated as we wound down the operations there in Somerset to try to give people better visibility to what a runrate cost structure was going to look like. So the $3 million and $2 million are good representative numbers based -- before our next acquisition.

Okay, and when you first started off the call, you talked about the economy, which is what everybody is chattering about. But what are you actually seeing right now? Are you seeing any kind of slowdown in activity or what is your general perspective?

I think our general perspective is that the economy has flattened. We are not seeing extraordinary growth, but at the same time we really are not seeing any significant re-trenching at this point in time.

Historically, when we went through the last cycle, we really did not see ourselves losing any customers or that our individual customers were shipping less. And so, we still hold the same general customer list that we have enjoyed and we have not seen any dramatic falloff on those customers.

At the same time, I think over the -- I guess what I would call the intermediate term, I'm actually optimistic. And what I mean by that is as the corporate customers have looked to assess their supply chains and see if they can wrench out any further costs, they are more willing to take meetings to hear about our capabilities and competency. So I think if there is any one thing to kind of compare and contrast some of our sales opportunities now versus a couple of years ago is that we are getting the opportunities to get in front of customers that historically would not have even given us an audience. And so, we're hopeful over time that that will obviously convert into freight on the dock and dollars to the bottom line.

And how excited are you in bringing in Texas and Arizona locations, in that part of the country?

Well, we're very bullish on the cross-border opportunities specifically, but even on a more macro basis than that, we -- on prior calls, we have talked about our model, our business strategy in terms of runway.

I think our ability to fairly consistently drive this organic growth through the addition of additional agent stations to our network is really indicative of the value proposition that we are bringing to the market place, and we continue to believe there is going to be a lot of opportunity to partner with more entrepreneurs out there that see value in our platform.

Well, thanks, and keep up the great work.

Thanks so much.

Thomas McGannon, Whetstone Capital.

Bohn, great quarter. Congratulations. I wanted to talk real quickly about the onboards. Could you give us a perspective on where they came from? Are they from competing networks or were they single-office entrepreneurs? Were they existing businesses? Are they new businesses? How big are they relative to the average size of one of your agent stations?

And then, what, if any, incremental, ongoing, or one-time corporate cost are you guys going to experience with those onboards?

Rather than get into these with great precision, I'm going to describe them more generically, just out of respect for confidences and not wanting to target any particular competitor.

But generally speaking, these are all long-time logistics entrepreneurs with books of business who basically decided to change teams and left other networks to come join us because of the value proposition that we have to offer. Individually, none of them are, I guess, what you from the investor standpoint would view as big fish in terms of the magnitude of their business today. But that certainly does not mean that we don't have high expectations of what we can do together as partners within this part of our network.

So I think to reduce that to numbers, which at some level that is what you are looking for, I would think of these as being $1 million to $1.5 million type revenue stations that are coming our way. And there is virtually no incremental cost to us from onboarding them. So there is nothing of any significance. A couple of airplane tickets and a dinner would be the short version of that.

But with all that said, I think it is important to recognize that it is these types of individuals and these entrepreneurs out there that are, in some respects, at the heart of our business model, and it is very important to us that we continue to attract these types of people and make good on our brand promise to them, to support them and help them grow their business, and be there when and if they want to have an exit strategy and monetize their life's work. That is part of what Radiant is about, and we intend to make good on that.

Thanks, Bohn. Yes, this quarter was really a strong showing on the onboard, so that was definitely a job well done.

The other question that I might have that I don't know if I've ever really heard much addressed before is same-store growth. Can you give any indication for, in an economy like this, on an agent station by agent station basis, where you guys are coming out on what would be similar to a same-store growth trend?

I'm not in a position to get into that with a lot of granularity. What I can tell you is last year over, I believe it was, over 40% of our stations grew by more than 20%.

Within any portfolio over 100 locations right now, at any point in time you are going to have a few people that are down and a few people that are up. How each of the individual stations does is really unique to their markets, the customers they serve, and the skill sets of the individual entrepreneurs that are in place.

I would -- and again, I don't have the numbers in front of me to respond with the precision that you would be looking for, but directionally I would say same-store growth is probably 15%, is kind of where I would estimate that to be on a pure same-store basis. But then, I would follow that comment with a reminder that there is really two prongs to our organic growth strategy. One is a same-store growth that we are speaking to, and the other bit was the prior topic, which was our ability to onboard these new agent stations that are coming to our platform, which are really incremental customer wins for us.

Yes, that is great color. Thank you very much. We are finished.

Adam Wyden, ADW Capital Partners.

Congratulations on a great quarter. Just a couple of things. So just looking at your guidance on -- you accelerated or you guys are ahead of plan for your integration of DBA, which I guess is good for a couple of reasons. A, it probably puts you in a position to start thinking about doing another deal. But B, you can move forward and work on some other stuff.

Your guidance for revenue is $285 million, and you guys basically did that in the quarter ended June. Now even if sales were to flatten like volumes, and you were not getting any market-share gains, which I expect that you would get just from the purchasing power of a bigger network, you're basically guiding for no sequential revenue growth. Now, is that because you are leaving in a lot of room for a down economy or -- what is the thinking behind $285 million of revenue, considering what you did in the last quarter?

Well, we are -- we do our best to be conservative in our views in terms of the numbers that we put out. So we certainly didn't -- we aren't forecasting doom and gloom, nor are we expecting huge same-store growth in this economic environment. So I guess I wouldn't -- I certainly wouldn't read any negativity into the numbers that we put out there, but just trying to be conservative in our approach and to the numbers.

And then, I guess I would just follow that by at the end of the day, and I don't mean to beat the horse to death, but at the end of the day we are much more interested in our net revenue growth than our absolute growth in topline revenue. So the real gain for us is being played at our personnel and SG&A costs as a function of our net revenues.

Right.

And at the end of the day, more of our stations are independent than company owned, and we don't have a ton of visibility into what they are going to do. We know that they're all entrepreneurs and they're all out there scrapping and working as hard as they can to put every dollar they can in their pocket. But it would be, I think, a little ambitious for us to really try to dial in on a station-by-station basis to construct that granular of a topline revenue projection for this agent-based network.

Okay, and the EBITDA margin that you are guiding for for fiscal 2012 is basically very similar to what you did in this previous year. But in reality, correct me if I'm wrong, in this type of business model when there is a lot of capacity out there, your -- like weaker economic environments, you are in a better position to expand your margins. Above and beyond the operational leverage that you are going to get in the business, if sales seem to decline or slow down, that doesn't necessarily mean that margins are going to go away? In some cases, it makes them grow, right? That's just not even including the operational leverage. So I would think that there is some opportunity as well on the EBITDA side for some upside with not a lot of hand wringing. Is that right?

Yes, I think that is fair. I mean, we will count it when it is in the box, but it is certainly not -- that is, I think, a reasonable interpretation of things.

We went out of our way to try to break out these nonrecurring transition costs at DBA to really show people that today we are on a run rate of $10 million. We are there today. And we basically, with the exception of, I think, three targeted people, we exited the balance of the historical back-office folks in Somerset, New Jersey, effective September 30. So we have got another full quarter to report to you for the quarter ended September that will have this line item of transition costs, but then that is gone.

Right. You also brought in some more people. I mean, you brought in a VP of Operations. You are growing the business, but at the same time you have layered on some additional things to actually grow the business. So in reality, if you were to not include that, you would be growing -- EBITDA would be even higher. I mean, you have also invested in the business to make it a much bigger business, right? You have made some key hires, stuff like that, right? That necessarily (multiple speakers)

Absolutely. We are -- we are doing our best to manage this business for the long term, and that includes continuing to add resources here corporately to support our expanding network. It's just part of the program. But those costs are reflected in our numbers -- or those incremental costs are reflected in the numbers we're looking at here for the quarter.

So when you look at your -- you kind of are in a triple threat in that you've got a bunch of different options. Which of the options do you think are more on the table now, if you had to guess, as opposed to the franchise privatizations or the network deals or the onboards? What are you seeing right now that is most imminent? What is the opportunity set within your existing network for privatizations and how do you think about those versus doing a network deal in terms of valuation and all that?

Right. Well, I think that the good news is is I think there is opportunities across all of those different, I will call them, silos that you referenced.

With that said, to try to be responsive to your question, over the near term I don't see us doing another network-type deal. Not that we don't think we can do other ones, but that is not near term. I think the more immediate term is what most people on this call would think of as a tuck-in type acquisition, kind of individual station locations that we can buy in, and those can take the form of conversions of existing agent stations within our network, as well as independent agent stations in our competitors' networks that can't get liquidity where they are and would consider joining us in connection with that liquidity event.

Right. Now, how do you think about purchase price on those types of privatizations? Are those more or less expensive than a network deal? I have to imagine there should not be a lot of tremendous integration or transition costs associated with a guy who is already on your network, right?

Well, without getting into a lot of detail on that, let me just observe that a lot of these potential sellers are fairly sophisticated, and I'm sure a number of them are on this call listening. So I don't exactly want to negotiate against myself. I will assure you and them that we will give them -- they will be getting fair value.

Okay, that is fair. Let's talk, now that you bring up an interesting point, why do you think the stock market isn't giving you fair value for your business? What kind of things do you anticipate getting the conversions to value? Because just at face value, you basically brought this business from $4 million of EBITDA to $10 million run rate in kind of the part of a year, and you're really in a position to keep aggressively growing.

Why do you think you trade at a discount to the peer group? What types of things do you think that you are able to plan on doing to get that value gap? Because it seems like something like this, given your ability to invest capital in the asset-light nature of this and the point at which you are in the cycle, you would think that something like this would trade at 20, 30 times EBITDA. What do you think the holdup is and what do you think is going to converge that going forward?

Well, I love the multiples you're talking about, but fundamentally, at some level -- I'm going to give you a couple different responses here. At some level, we can't worry about what the market is doing. Fundamentally, we have got to execute.

We have -- I think certainly one of my favorite slides, if not my favorite absolute favorite slide when I have an opportunity to do an investor-type presentation, is the five-year or year-over-year quarterly charts that show our revenue and EBITDA growth right through this last economic cycle that we went through. And at least from my way of thinking, we have really executed and delivered on the operations side of things.

And we believe, and we have certainly had some taste of it, but we think the cumulative weight of our continued performance will ultimately find the light of day.

Now with that said, there certainly are some things that we can and are doing. One of them has to do, obviously, with liquidity. We have a keen interest in getting over to the American Stock Exchange and we are working in that direction. From a protocol standpoint, I can't get into much more detail on it than that.

Then, obviously, our shareholder base and the Company as well, as well as potential acquisition candidates who might consider taking stock as currency, we all collectively are interested in getting over on a listed exchange and the anticipated liquidity that would come with that. It is our belief that we currently satisfy all of the listing criteria to find our way over there, and we are hoping that we'd have something to report in that regard before Christmas.

That would be great. That would be a nice Christmas present. So, one other thing. A couple of people have asked the question about the NT 10-K, the late 10-K, and I wanted to give you an opportunity to give a rationale for that and let everybody know why you guys were late with your filing and why you guys took your time to get the document out?

Okay, well, thanks for that opportunity. I thought about putting it in my prepared remarks, but I figured this would be a better forum for it.

First and foremost, I would say or would, I guess, reiterate for me what is kind of the blinding flash of the obvious, which is we take our financial reporting obligations very, very seriously. Any time you do a transaction, it's very important that you get a good understanding and a very crisp understanding of what are effectively the balance-sheet accounts that you pull over into your opening balance sheet. We have a responsibility to effectively record the assets and liabilities of the Company at fair value, and that requires a fair amount of investigation and scrutiny to make sure that we're bringing over the right numbers.

Secondarily, we expected this particular 10-K, given our interest in the AMEX, to receive particular scrutiny, so we were, I guess, double-dotting the Is and crossing the Ts to the best of our ability.

And finally, and I have to be, I guess, a little careful on how I phrase some of this, but I think we still run a lean shop. We had a lot going on, and I think in the not-too-distant future, people will have a better appreciation for why we might have been a week late on getting the 10-K filed given some of the other business opportunities available to us.

Very good. And just taking a step back, where do you see this business -- for some people who have not been following the story that long, can you talk a little bit about why you got involved in this and what you're really playing for in the two-year, five-year time horizon and what you really think Radiant can become, taking a step back and saying what you're trying to build out and what you think -- what your hopes are in terms of the greater scale of the business are longer term?

Sure, and I apologize for many folks, this is the broken record. But for any new folks on the line, we created Radiant really with the intention of bringing value to the agent-based forwarding community.

We recognized that there was effectively a structural change afoot within this community of businesses. The entire agent-based business model was born out of some deregulation that took place in the late 1970s and early 1980s, and as a consequence, the initial founders of these businesses who I described as being 45 in 1980 now, 30 years later, are 75 years old. And so, all of these early pioneers of these agent-based forwarding networks are in various states of transition, and we placed Radiant smack dab in the middle of that to try to bring value and exit strategies for those folks, and at the same time inheriting a set of what I'll call franchisees or the independent agent stations that they themselves -- maybe not near term, but certainly over the intermediate term, are looking to align themselves with a partner that can support them in their own exit strategies.

So we have had an opportunity to acquire businesses that have within them a series of very attractive tuck-in acquisitions. These businesses from a macro math standpoint are low margin businesses rich in accounts receivables which have allowed us to take our initial $5 million of equity capital and grow it to now a market cap of approximately $70 million.

We think there is a lot of runway to go in terms of onboarding additional agent stations to help drive organic growth and acquiring other companies that have what I will call a common heritage within this agent-based forwarding community. That can take the form of acquiring additional agent-based networks, bringing in additional brands to the network. It can take the form of acquiring in or converting our existing agent stations to company-owned stores, acquiring agent stations in some of our competitors' networks, as well as acquiring what I will call stand-alone businesses who once were part of agent-based networks who went out on their own and decided it is not necessarily the best place to be, to value and reaffiliating themselves with the network and would be talking to us in that context. And that is what I will call generally silo number one in terms of our acquisition opportunities.

We also think there are a number of adjacent segments of the supply chain, while remaining true to our non-asset-based, service-oriented business model, would also be very complementary to what we do and complementary to the other participants in our agent-based network. And those adjacent segments could include truck brokerage operations, customs house brokerage operations, NVOCC which is an acronym for non-vessel owner common carrier. These are all complementary adjacent segments of the supply chain services that we buy from third parties today that we think are very similar and complementary to our core business.

So it is interesting, as I look back on -- it was what now seems like six short years ago when we started Radiant with initially a PowerPoint presentation and then $5 million in equity, and what we were able to accomplish with that small capital base. And to have grown the business to where it is, it is very exciting for me personally in terms of the art of the possible, in terms of where we go from here. So it's very much within my own personal objectives that I fully expect us to be $0.5 billion in the next three, five, at the latest, years, and over the next 10 years there is absolutely no reason why we can't be a $1 billion business.

I don't use those numbers -- I don't mean to be flip about the achievability of that, but there is just so much opportunity, I believe, for us in the marketplace to bring value to the people that we are looking to partner with. And it seems recently we really have begun to reach some critical mass where people are starting to find us. It is a very rewarding position not only for me, but for all the people that have come together to make Radiant what it is.

Well, congratulations. I'm happy I'm along for the ride and I think we have got a good thing going. So that is it for me.

[John Rawls], [Argon Capital].

Most of my questions have been answered. I did want to ask you, though, could you give any color on the operating cash flow in the fourth fiscal quarter? It looked like there was a bit of an outflow there. Was that related to integration of the DBA accounts or was there something else specific going on there?

No, I think it was more just receivables. I think it was just good old working capital and receivables and payables as we were pushing through.

We made a really good effort -- how do I best say this? There was a lot of opportunity for improvement in the historical working capital practices at DBA. And so, we put a lot of effort into tightening up their credit and collection process and receivables. And so, I think that is where most of that delta would lie.

Mr. Crain, there are no further questions at this time. I would like to turn the floor back over to you for closing comments.

All right, thank you. Let me close by saying that we remain very excited with our progress and prospects here at Radiant.

We have made tremendous progress in executing our strategy, leveraging the Radiant platform to bring value to the agent-forwarding community. We remain very excited about the opportunity for continued organic growth available through expansion of our network and believe that we remain uniquely positioned to bring value to our network participants.

We believe we are executing the right strategy to deliver profitable growth, providing continuous improvement to our existing network participants in terms of technology, buy rates, and enhanced service offerings; building upon the success of our organic growth initiative by onboarding additional agent stations; and opportunistically pursuing acquisition opportunities that can leverage our platform.

We have a robust acquisition pipeline and look forward to providing you with further updates as things develop. Thanks for listening in and your interest in Radiant Logistics.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.