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Radiant Logistics Understates Revenue, Restates Financials
Logistics firm cannot raise capital via its shelf registration until after it files its financials on time for a year.
March 9, 2023
Radiant Logistics (RLGT), a third party provider of multi-modal transportation services, recognized less in-transit revenue than it should have for the year ended June 30, 2021. The error also impacted financial statements in quarterly reports through March 31, 2022. Each period’s financials has been restated and includes the following adjustments:
—Understated revenue by $10.6 million, or 1.17% in the year ended June 30, 2021
—Understated operating income $0.2 million, or 0.84% in the year ended June 30, 2021
—Understated net income $0.1, or 0.70% in the year ended June 30, 2021
In-transit revenue is recognized over time as a customer’s goods move from point of origin to point of destination. Though relatively straight forward, Radiant blamed inaccurate underlying shipment data and described the error as:
“... differences between the estimated accrued amounts and the actual revenues and expenses recorded due primarily to errors in the underlying shipment information that was used to calculate the original estimates of the accrued amounts.”
Importantly, the restatements, belatedly filed annual report, and inability to issue financials within the SEC’s permitted extension periods have reduced Radiant’s ability to raise capital. The company must file reports on time for a year before once again being allowed to issue shares via its $150 million shelf registration.
The company has access to a $200 million revolver.
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