Radiant Logistics, Inc. (NYSE:RLGT), a third-party logistics and multimodal transportation services company, announced today in a Form 8-K filed with the Securities and Exchange Commission, that it did not timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2022, and, following consultation with the Company’s current and predecessor independent registered public accounting firms, has determined to restate its fiscal 2021 audited financial statements, each of the interim quarterly financial statements filed on Form 10-Q during fiscal 2021, as well as each of the interim quarterly financial statements filed on Form 10-Q during its 2022 fiscal year (the “Restatement Periods”), to correct for historical errors related principally to the timing of the recognition of the Company’s estimated accrual of in-transit revenues and related costs. As a result, investors, analysts and all other persons should not rely on the Company’s previously released financial statements, press releases, earnings releases, investor presentations or other financial information or communications describing the Company’s consolidated financial statements, that cover any periods during the Restatement Periods. The Company is still in the process of completing its analysis of the impact of the errors on the financial statements of the Company for the fiscal year ended June 30, 2020.
Based on its preliminary findings, the Company determined that the impact of the errors on its previously reported financial statements for the fiscal year ended June 30, 2021, include the following:
- Reported Revenues of $889.1 million were understated by approximately $14.1 million to $17.3 million
- Reported Total Operating Expenses of $863.1 million were understated by approximately $14.7 million to $18.0 million
- Reported Net Income Attributable to Radiant Logistics, Inc. of $22.9 million was overstated by approximately $0.4 million to $0.5 million
- Reported Contract Assets of $27.8 million were understated by approximately $21.7 million to $26.4 million
- Reported Total Liabilities of $195.8 million were understated by approximately $21.5 million to $26.3 million
In addition to the impact on the Company’s financial statements noted above, the Company determined that the errors resulted in the overstatement of its previously reported Adjusted EBITDA, a non-GAAP financial measure, of $48.8 million for the fiscal year ended June 30, 2021, by approximately $0.5 million to $0.7 million.
For further information please refer to the Company’s Current Report on Form 8-K filed with the SEC today.
Given the time and focus dedicated to review of the underlying accounting issues associated with the planned restatement, the Company was unable to timely file its Annual Report on Form 10–K for the fiscal year ended June 30, 2022. As a result, it received a notice on September 29, 2022 from the New York Stock Exchange (the “NYSE”) stating that the Company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria established in Section 1007 of the NYSE American Company Guide. In accordance with NYSE rules, the Company contacted the NYSE to discuss the status of the late filing. The noncompliance with the timely filing criteria under the NYSE American Company Guide has no immediate effect on the listing or trading of the Company’s common stock on the NYSE. The NYSE has informed the Company that, under NYSE rules, the Company will have up to six months from the Form 10-K due date to file the Form 10-K with the SEC; however, under the NYSE American Company Guide, the NYSE retains discretion to accelerate the time within which the Company will be required to regain compliance with all applicable listing standards. The Company expects to regain compliance with the NYSE listing standards at any time prior to that date by filing its Form 10-K with the SEC. The Company expects to complete this filing within the next thirty (30) days.