- Third quarter operating income of $203.3 million increased from $200.6 million the same quarter last year, primarily from contributions from business acquisitions offset by weaker market conditions and higher net gains on sale of assets held for sale in the prior year period.
- Third quarter net income of $128.0 million compared to $133.3 million in Q3 2023, while adjusted net incomeof $136.6 million increased from $136.0 million.
- Third quarter diluted earnings per share (diluted 鈥淓PS鈥) of $1.50 compared to $1.54 in Q3 2023, while adjusted diluted EPS of $1.60 increased from $1.57.
- Third quarter net cash from operating activities of $351.1 million increased from $278.7 million in Q3 2023 and free cash flowof $272.5 million increased from $198.3 million, used in part to repay over $130 million of debt.
- The Board of Directors approved today a $0.45 quarterly dividend, an increase of 13%.
MONTREAL, Oct. 21, 2024 (GLOBE NEWSWIRE) -- TFI International Inc. (NYSE and TSX: TFII), a North American leader in the transportation and logistics industry, today announced its results for the third quarter ended September 30, 2024. All amounts are shown in U.S. dollars.
鈥淒espite soft market conditions, TFI International performed well during quarter, generating more than $350 million of net cash from operating activities and over $270 million of free cash flow, up 26% and 37%, respectively, over the year-ago period,鈥 said Alain B茅dard, Chairman, President and Chief Executive Officer. 鈥淲hile business conditions for US LTL are challenging, our Logistics segment performed very well, and both our Truckload and Canadian LTL operations have remained solid. We were also able to reduce debt during the quarter, reducing our leverage ratio. In the current freight environment, our talented team remains focused on operational enhancements and tapping into the potential of recent acquisitions, while our overarching focus on free cash flow allows us to opportunistically invest during weaker cycles and return significant capital to shareholders while maintaining a strong balance sheet.鈥
THIRD QUARTER RESULTS
Total revenue of $2.18 billion increased from $1.91 billion in the prior year period and revenue before fuel surcharge of $1.91 billion increased from $1.63 billion. The increase is due to contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and a reduction in fuel surcharge revenue.
Operating income of $203.3 million increased from $200.6 million in the prior year period. The increase in operating income is from business acquisitions and is partially offset by lower volumes and $15.3 million less gain, net of impairment, on sale of assets held for sale.
Net income of $128.0 million compared to $133.3 million in the prior year period, and net income of $1.50 per diluted share compared to $1.54 in the prior year period. Net income included an increase in interest expense of $21.6 million related to the financing of the Daseke acquisition. Adjusted net income, a non-IFRS measure, was $136.6 million, or $1.60 per diluted share, up from $136.0 million, or $1.57 per diluted share, the prior year period.
Total revenue increased 74% in the Truckload segment relative to the prior year period, primarily from the acquisition of Daseke, increased 2% for Logistics and decreased by 9% for Less-Than-Truckload. Operating income increased 44% for Truckload and 19% for Logistics, and decreased 24% for Less-Than-Truckload in the third quarter compared to the prior year.
NINE-MONTH RESULTS Total revenue of $6.32 billion increased from $5.55 billion in the prior year period and revenue before fuel surcharge of $5.48 billion increased from $4.74 billion. The increase is due to contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and a reduction in fuel surcharge revenue.
Operating income of $563.0 million increased from $559.4 million in the prior year period. The increase in operating income is from business acquisitions and is partially offset by lower volumes and a $19.7 million restructuring charge related to the acquisition of Daseke recorded in the Corporate segment and $21.4 million higher gains, net of impairment, on sale of assets held for sale in the prior year period.
Net income of $338.6 million compared to $373.5 million in the prior year period, and net income of $3.97 per diluted share compared to $4.28 in the prior year period. Net income included an increase in interest expense of $56.1 million primarily related to the financing of the Daseke acquisition. Adjusted net income, a non-IFRS measure, was $387.7 million, or $4.55 per diluted share, compared to $391.4 million, or $4.48 per diluted share, the prior year period.
Total revenue increased relative to the prior year period with increases of 48% for Truckload, primarily from the acquisition of Daseke, and 17% for Logistics, and a decrease of 4% for Less-Than-Truckload. Operating income increased 6% for Truckload and 32% for Logistics, and decreased 9% for Less-Than-Truckload in the third quarter compared to the prior year.
CASH FLOW Net cash flow from operating activities was $351.1 million during Q3, an increase from $278.7 million the prior year. This increase was due primarily to an increase in depreciation and amortization of $39.6 million and an increase in non-cash working capital of $35.1 million.
Net cash from investing activities increased by $470.0 million as a result of a decrease in spending on business acquisitions of $472.6 million.
The Company returned $33.9 million to shareholders during the quarter through dividends and repaid $130.2 million of debt during the quarter.
DIVIDEND AND SHARE REPURCHASE On September 16, 2024, the Board of Directors of TFI International declared a quarterly dividend of $0.40 per outstanding common share paid on October 15, 2024, representing a 14% increase over the $0.35 quarterly dividend declared in Q3 2023. The annualized dividend represents 16.8% of the trailing twelve month free cash flow.
On October 21, 2024, the Board of Directors approved a quarterly dividend of $0.45 per outstanding common share of the Company鈥檚 capital, for an expected aggregate payment of $38.1 million to be paid on January 15, 2025, to shareholders of record at the close of business on December 31, 2024.
The Board of Directors today approved the renewal of TFI International鈥檚 normal course issuer bid (鈥淣CIB鈥). Under the renewed NCIB, the Company may purchase for cancellation a maximum of 7,918,103 common shares from November 2, 2024 to November 1, 2025. The renewed NCIB is subject to approval of the Toronto Stock Exchange.
WEBCAST DETAILS TFI International will host a webcast on Tuesday October 22, 2024 at 8:30 a.m. Eastern Time to discuss these results. Interested parties can join the webcast or access the replay of the webcast via the link accessible on the TFI website under the Presentations and Reports section.
ABOUT TFI INTERNATIONAL TFI International Inc. is a North American leader in the transportation and logistics industry, operating across the United States, Canada and Mexico through its subsidiaries. TFI International creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TFI International umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TFI International companies service the following segments:
- Less-Than-Truckload;
- Truckload;
- Logistics.
TFI International Inc. is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII. For more information, visit .
FORWARD-LOOKING STATEMENTS The Company may make statements in this report that reflect its current expectations regarding future results of operations, performance and achievements. These are 鈥渇orward-looking鈥 statements and reflect management鈥檚 current beliefs. They are based on information currently available to management. Words such as 鈥渕ay鈥, 鈥渕ight鈥, 鈥渆xpect鈥, 鈥渋ntend鈥, 鈥渆stimate鈥, 鈥渁nticipate鈥, 鈥減lan鈥, 鈥渇oresee鈥, 鈥渂elieve鈥, 鈥渢o its knowledge鈥, 鈥渃ould鈥, 鈥渄esign鈥, 鈥渇orecast鈥, 鈥済oal鈥, 鈥渉ope鈥, 鈥渋ntend鈥, 鈥渓ikely鈥, 鈥減redict鈥, 鈥減roject鈥, 鈥渟eek鈥, 鈥渟hould鈥, 鈥渢arget鈥, 鈥渨ill鈥, 鈥渨ould鈥 or 鈥渃ontinue鈥 and words and expressions of similar import are intended to identify these forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and those presently anticipated or projected.
The Company wishes to caution readers not to place undue reliance on any forward-looking statements which reference issues only as of the date made. The following important factors could cause the Company鈥檚 actual financial performance to differ materially from that expressed in any forward-looking statement: the highly competitive market conditions, the Company鈥檚 ability to recruit, train and retain qualified drivers, fuel price variations and the Company鈥檚 ability to recover these costs from its customers, foreign currency fluctuations, the impact of environmental standards and regulations, changes in governmental regulations applicable to the Company鈥檚 operations, adverse weather conditions, accidents, the market for used equipment, changes in interest rates, cost of liability insurance coverage, downturns in general economic conditions affecting the Company and its customers, credit market liquidity, and the Company鈥檚 ability to identify, negotiate, consummate, and successfully integrate acquisitions. In addition, any material weaknesses in internal control over financial reporting that are identified, and the cost of remediation of any such material weakness and any other control deficiencies, may have adverse effects on the Company and impact future results.
The foregoing list should not be construed as exhaustive, and the Company disclaims any subsequent obligation to revise or update any previously made forward-looking statements unless required to do so by applicable securities laws. Unanticipated events are likely to occur. Readers should also refer to the section 鈥淩isks and Uncertainties鈥 at the end of the 2024 Q3 MD&A for additional information on risk factors and other events that are not within the Company鈥檚 control. The Company鈥檚 future financial and operating results may fluctuate as a result of these and other risk factors.
NON-IFRS FINANCIAL MEASURES This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards as issued by the international Accounting Standards Board (IASB) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, nor as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of the non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided in the exhibits.
Adjusted EBITDA: Adjusted EBITDA is calculated as net income before finance income and costs, income tax expense, depreciation, amortization, impairment of intangible assets, bargain purchase gain, restructuring from business acquisitions, and gain or loss on sale of land and buildings, assets held for sale, sale of business, and gain or loss on disposal of intangible assets. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.
Adjusted net income and adjusted earnings per share (adjusted 鈥淓PS鈥), basic or diluted Adjusted net income is calculated as net income excluding amortization of intangible assets related to business acquisitions, net change in the fair value and accretion expense of contingent considerations, net change in the fair value of derivatives, net foreign exchange gain or loss, impairment of intangible assets, bargain purchase gain, restructuring from business acquisitions, gain or loss on sale of land and buildings and assets held for sale, impairment on assets held for sale, gain or loss on the sale of business and directly attributable expenses due to the disposal of the business. Adjusted earnings per share, basic or diluted, is calculated as adjusted net income divided by the weighted average number of common shares, basic or diluted. The Company uses adjusted net income and adjusted earnings per share to measure its performance from one period to the next, without the variation caused by the impact of the items described above. The Company excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Excluding these items does not imply they are necessarily non-recurring.
Free cash flow: Net cash from operating activities less additions to property and equipment plus proceeds from sale of property and equipment and assets held for sale. Management believes that this measure provides a benchmark to evaluate the performance of the Company in regard to its ability to meet capital requirements.
Note to readers: Unaudited condensed consolidated interim financial statements and Management鈥檚 Discussion & Analysis are available on TFI International鈥檚 website at .
For further information: Alain B茅dard Chairman, President and CEO TFI International Inc. 647-729-4079
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