Radiant Logistics Inc.
Logistical Nightmare
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Research Overview

INDEX:
S&P 500
Sector:
Industrials
Position:
Short
Date:
Jun 8, 2017

After conducting a forensic financial and accounting review, Spruce Point believes Radiant Logistics Inc. (NYSEMKT: RLGT), which specializes in transporting unique or difficult shipments, should cause shareholders to pause following its revenue recognition methods being questioned by the SEC. Based on our investigation, we estimate 30% to 50% downside risk.

The report highlights several key concerns with the company, including:

  • We question management's history which has been tarnished by a previous accounting scandal
  • We believe the Company is implementing a non-accretive roll-up strategy
  • We are concerned by an unattractive capital structure and unfavorable shareholder policies
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