RENTON, Wash. - Radiant Logistics (NYSE:RLGT), Inc. (NYSE American: RLGT), a third-party logistics company, has announced its acquisition of DVA Associates, Inc., a Portland, Oregon-based logistics services provider. This move aims to strengthen Radiant's presence in the Portland market and further expand its North American operations.
DVA Associates, established in 1984, offers a range of domestic and international transportation and logistics services, with a client base in various sectors including footwear, apparel, and tradeshows. The acquisition follows Radiant's strategy of purchasing companies with a portion of the price contingent upon the acquired company's future performance.
Danielle Van Auken, a representative from DVA, expressed enthusiasm for joining forces with Radiant, citing the potential for customer value enhancement and professional growth opportunities for their team. Bohn Crain, Founder and CEO of Radiant, also commented on the acquisition, highlighting the alignment with Radiant's growth strategy and the potential for revenue and cost synergies in markets like Portland.
Radiant Logistics, with operations in over 20 North American markets, provides a broad spectrum of logistics services, including freight forwarding, truck and rail brokerage, and value-added logistics such as warehousing, customs brokerage, and inventory management.
The financial details of the transaction were not disclosed. However, Radiant emphasized that it remains debt-free and has access to a $200 million credit facility, positioning the company to integrate additional operating partners.
This acquisition is part of Radiant's broader plan to attract logistics entrepreneurs to its network, leveraging its existing platforms for expansion. The company's forward-looking statements suggest a continued focus on growth through strategic acquisitions and service enhancements.
The information in this article is based on a press release statement from Radiant Logistics, Inc.
In other recent news, Radiant Logistics, a third-party logistics company, announced the acquisition of Seattle-based Cascade Transportation, Inc. This acquisition is part of Radiant's strategic initiative to expand its service offerings and market reach. Under Radiant's ownership, Cascade will maintain its current leadership and be rebranded as Radiant Global Logistics (RGL-SEA).
In other developments, Radiant Logistics reported a net loss of $703,000 for the quarter ended March 31, 2024, a contrast from the net income of $4.183 million from the same period last year. This was attributed to a sluggish freight market and industry overcapacity. Despite this loss, the company expects sequential quarterly recovery, highlighted by its strong cash position of $31.2 million and no debt.
The company's strategic focus remains on organic growth and acquisitions, as evidenced by its recent acquisition of Cascade Transportation. Analysts from various firms have noted these developments, stating their expectations for the company's future performance. However, these prognostications should be taken with caution as they are based on current market conditions and trends.
InvestingPro Insights
Amidst Radiant Logistics' strategic expansion with the recent acquisition of DVA Associates, the company's financial health and market performance provide critical insights for investors. According to InvestingPro, analysts have expressed caution, revising earnings downwards for the upcoming period and anticipating a sales decline in the current year. This outlook may reflect market conditions and challenges the logistics industry faces.
Despite these concerns, Radiant Logistics appears to be maintaining a solid financial position. The company's liquid assets surpass its short-term obligations, suggesting a strong liquidity profile that could support ongoing operations and potential future acquisitions. Moreover, analysts predict the company will remain profitable this year, a positive sign for investors considering the company's growth trajectory.
From a valuation perspective, Radiant's price-to-earnings (P/E) ratio stands at 25.53, and its price-to-book (P/B) ratio is 1.22, as of the last twelve months ending Q3 2024. These metrics, coupled with a revenue of $828.66 million and a gross profit margin of 19.81%, highlight the company's financial outcomes in a challenging environment.
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