Radiant Logistics, Inc. (NYSE MKT:RLGT) Q4 2020 Earnings Conference Call - Final Transcript

Sep 28, 2020 • 04:30 pm ET

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Radiant Logistics, Inc. (NYSE MKT:RLGT) Q4 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. Ladies and gentlemen, the floor is now open for questions. [Operator Instructions] We'll take our first question from John Godin with Lake Street Capital. Please go ahead.

Analyst
John Godin

Hey, guys, I appreciate you taking my question, I guess kind of big picture here as you look at the business and as maybe, things are starting to kind of turnaround off the lows. Are there any verticals in particular where you're seeing maybe some increased strength or that you think could help drive results going into 2021? Thanks.

Executive
Bohn Crain

Sure. There are -- there's a number of categories, right. Certainly some of the categories that have performed well recently life sciences, food and beverage, CPG, all of those have proved very durable, and so we expect those to continue to perform well in this market environment. We did quite a bit obviously this last quarter in the humanitarian aid category and PPE, it remains to be seen kind of what type of opportunities around the ultimate distribution of the vaccine might present themselves. But we're very bullish on life sciences and what those opportunities might represent over the longer-term. At the same time with -- in this kind of increasingly tight market environment, some other segments of our business. I'm thinking specifically of Clipper, our US brokerage, intermodal and truck brokerage operations out of Chicago, I think, we'll see some good results coming out of that group in the quarters ahead.

Analyst
John Godin

Okay, cool. And just flipping to the PPE. I guess, could you help us kind of understand how those transactions initially came about and maybe walk us through at a high level, kind of what the margin profile of that type of business looks like compared to your more traditional business? Thanks.

Executive
Bohn Crain

Sure. Well I mean, PPE can take lots of forms, I guess, for us, we did a significant amount of international air charters, chartering aircraft, and ultimately charters are relatively low margin business. So that's why, you see kind of the unusually high top line revenues and the unusually low gross margin percentage as that spike in activity, while certainly helped our gross margin dollars and it was something we were proud to be a part of. If you look at it on a gross margin percentage basis that would manifest itself as margin compression for the quarter. But, so I guess precisely to your question for us, it was a lot of international air charters moving mask, gowns, face guards from manufacturing points in Asia inbound to various points across North America.

Analyst
John Godin

Okay. And last one for me, I know you touched on it a little bit, but as you kind of sit back and look at the landscape of potential acquisitions, just kind of given the current environment, I mean has -- how are you guys going to think about those, changed at all or could there potentially be more opportunities out there given the current environment?

Executive
Bohn Crain

I think, it'll be an interesting time. We are very