TFI International Inc. (NYSE and TSX: TFII), a North American
leader in the transportation and logistics industry, today
announced its results for the first quarter ended March 31, 2020.
“During these unprecedented times, our utmost
priority is the health and wellbeing of our customers, our
workforce, and the communities we serve throughout North
America. TFI is a remarkably strong company with a solid
foundation, and through our relentless focus on the fundamentals we
produced record first quarter results and have continued to
perform, despite the weaker economic landscape,” said Alain Bédard,
Chairman, President and Chief Executive Officer. “During the
first quarter, our operating income climbed 13% over the prior year
period, and we again generated robust net cash from operating
activities. We also achieved a major milestone with our
public listing on the New York Stock Exchange, which was both
well-timed and well-received, further strengthening our financial
position. In early March as the pandemic began to spread, we
quickly implemented cost-saving measures with an eye toward helping
TFI emerge even stronger when conditions normalize. Looking ahead,
as our highly engaged workforce continues to serve our customers
and as we execute on our strategies to create long-term shareholder
value, our thoughts remain with the many families impacted by
today’s economic disruption.”
Financial highlights |
Quarters ended Mar. 31 |
(in millions of dollars, except per share
data) |
2020 |
2019* |
Total revenue |
1,240.5 |
1,230.8 |
Revenue before fuel
surcharge |
1,112.7 |
1,097.4 |
Adjusted EBITDA1 |
200.5 |
187.6 |
Operating income |
118.5 |
104.9 |
Net cash from operating
activities |
191.7 |
160.7 |
Adjusted net income1 |
71.3 |
67.1 |
Adjusted EPS - diluted1
($) |
0.83 |
0.77 |
Net income |
75.8 |
65.1 |
EPS - diluted ($) |
0.88 |
0.74 |
Weighted average number of shares ('000s) |
84,658 |
85,174 |
* Recasted for changes in presentation, see note 18 in the
unaudited condensed consolidated interim financial statements.1
This is a non-IFRS measure. For a reconciliation, please refer to
the “Non-IFRS Financial Measures” section below. |
|
FIRST QUARTER RESULTSTotal
revenue of $1.24 billion was up 1% and, net of fuel surcharge,
revenue of $1.11 billion was also up 1% compared to the prior year
period.
Operating income grew 13% to $118.5 million from
$104.9 million the prior year period, primarily driven by business
acquisitions, strong execution across the organization, an
asset-light approach, and cost efficiencies.
Net income was $75.8 million, an increase of 16%
compared to net income of $65.1 million the prior year period, and
net income of $0.88 per diluted share was up relative to $0.74 per
diluted share the prior year period. Adjusted net income, a
non-IFRS measure, was $71.3 million, or $0.83 per diluted share, as
compared to $67.1 million, or $0.77 per diluted share, the prior
year period.
Revenue grew 1% for Truckload and 20% for
Logistics, driven by business acquisitions, and declined 5% for
Package and Courier and 13% for Less-Than-Truckload, relative to
the prior year period. Operating income was higher for Truckload
and Logistics, while operating income for Package and Courier and
Less-Than-Truckload declined.
SEGMENTED RESULTS |
|
|
|
|
(in millions of
dollars) |
Quarters ended Mar. 31 |
|
2020 |
2019* |
|
$ |
|
$ |
|
Revenue1 |
|
|
|
|
Package and Courier |
139.5 |
|
146.9 |
|
Less-Than-Truckload |
180.2 |
|
208.0 |
|
Truckload |
533.5 |
|
527.1 |
|
Logistics |
268.8 |
|
224.3 |
|
Eliminations |
(9.3) |
|
(8.9) |
|
|
1,112.7 |
|
1,097.4 |
|
|
$ |
% ofRev.1 |
$ |
% ofRev.1 |
Operating income (loss) |
|
|
|
|
Package and Courier |
15.5 |
11.1% |
21.0 |
14.3% |
Less-Than-Truckload |
17.7 |
9.8% |
27.6 |
13.3% |
Truckload |
63.0 |
11.8% |
50.7 |
9.6% |
Logistics |
26.0 |
9.7% |
15.2 |
6.8% |
Corporate |
(3.7) |
|
(9.6) |
|
|
118.5 |
10.6% |
104.9 |
9.6% |
Note: due to
rounding, totals may differ slightly from the sum.* Recasted for
changes in presentation, see note 18 in the unaudited condensed
consolidated interim financial statements.1 Revenue before fuel
surcharge. |
|
CASH FLOWNet cash from
operating activities was $191.7 million during Q1 2020 versus
$160.7 million the prior year quarter. The 19% increase was
due to stronger operating performance and the deferral of certain
tax payments due to economic stimulus measures initiated in
response to COVID-19. The Company returned $65.5 million to
shareholders during the quarter, of which $21.7 million was through
dividends and $43.8 million was through share repurchases.
On February 13, 2020 the Company issued common
shares in the United States and Canada as part of its initial
public offering in the United States raising net proceeds of $288.5
million.
On March 16, 2020, the Board of Directors of TFI
International declared a quarterly dividend of $0.26 per
outstanding common share payable on April 15, 2020, representing an
8% increase over the $0.24 quarterly dividend declared in Q1
2019.
COST SAVING MEASURESIn March as
Coronavirus spread, TFI quickly acted to implement temporary cost
saving measures spanning all operating companies and its entire
workforce, including a wage reduction of 5-15% for executives, a
15% reduction in directors’ fees, a workweek reduction for more
than a thousand full-time employees, and a reduction-in-force which
management expects to be temporary. Employees subject to a
reduction-in-force will be eligible for a salary recovery program
upon their return to the Company. Management also suspended all
capital expenditures to which it had not already committed, to be
re-evaluated as conditions allow.
CONFERENCE CALLTFI
International will host a conference call on Wednesday, April 22,
2020 at 8:30 a.m. Eastern Time to discuss these results. Interested
parties can join the call by dialing 1-877-223-4471. A recording of
the call will be available until midnight, May 6, 2020, by dialing
1-800-585-8367 or 416-621-4642 and entering passcode 7078728.
ABOUT TFI INTERNATIONALTFI
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:
- Package and Courier;
- 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 http://www.tfiintl.com.
FORWARD-LOOKING
STATEMENTSExcept for historical information provided
herein, this press release may contain information and statements
of a forward-looking nature concerning the future performance of
TFI International. These statements are based on assumptions and
uncertainties as well as on management's best possible evaluation
of future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in
customer demand for TFI International's products and services, the
impact of price pressures exerted by competitors, and general
market trends or economic changes. As a result, readers are advised
that actual results may differ from expected results.
NON-IFRS FINANCIAL MEASURESThis
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 (IFRS) 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, not 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 below.
Adjusted EBITDA Adjusted EBITDA is calculated as
net income or loss before finance income and costs, income tax
expense, depreciation, amortization, bargain purchase gain, and
gain or loss on sale of land and buildings and assets held for
sale. 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 EBITDA |
Quarters ended Mar. 31 |
(unaudited, in millions of dollars) |
2020 |
2019* |
Net income |
75.8 |
65.1 |
Net finance costs |
19.2 |
19.1 |
Income tax expense |
23.5 |
20.7 |
Depreciation of property and equipment |
57.1 |
52.4 |
Depreciation of right-of-use assets |
25.7 |
24.5 |
Amortization of intangible assets |
15.6 |
15.8 |
Bargain purchase gain |
(5.6) |
- |
Gain on sale of land and buildings and assets held for sale |
(10.7) |
(10.1) |
Adjusted EBITDA |
200.5 |
187.6 |
Note: due to rounding, totals may differ slightly
from the sum.* Recasted for change in presentation, see note 18 in
the unaudited condensed consolidated interim financial
statements. |
|
Adjusted net income and adjusted earnings per
share (adjusted “EPS”), basic or dilutedAdjusted 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, bargain purchase gain, and gain or loss on sale of land
and buildings and assets held for sale. 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.
Adjusted net income (unaudited, in
millions of dollars, except per share data) |
Quarters endedMar. 31 |
|
2020 |
2019 |
Net income |
75.8 |
65.1 |
Amortization of intangible assets related to business acquisitions,
net of tax |
11.1 |
11.3 |
Net change in fair value and accretion expense of contingent
considerations, net of tax |
0.1 |
0.1 |
Net change in fair value of derivatives, net of tax |
0.5 |
(0.0) |
Net foreign exchange gain, net of tax |
(1.2) |
(0.5) |
Bargain purchase gain |
(5.6) |
- |
Gain on sale of land and buildings and assets held for sale, net of
tax |
(9.2) |
(8.7) |
Adjusted net income |
73.1 |
67.1 |
Adjusted earnings per
share - basic |
0.84 |
0.79 |
Adjusted earnings per share - diluted |
0.83 |
0.77 |
Note: due to
rounding, totals may differ slightly from the sum. |
Note to readers: |
Unaudited condensed consolidated interim financial statements and
Management’s Discussion & Analysis are available on TFI
International’s website at http://www.tfiintl.com. |
|
|
For further information:Alain BédardChairman,
President and CEOTFI International Inc.(647)
729-4079abedard@tfiintl.com
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