First Quarter Ended March 31, 2024
Forward-Looking Statements
In the interest of providing shareholders and potential investors with information regarding TFI International, including management's assessment of future plans and operations, certain statements in this presentation are forward-looking statements subject to risks, uncertainties and other important factors that could cause the Company's actual performance to differ materially from those expressed in or implied by such statements.
Such factors are further discussed under Risks and Uncertainties in the Company's Annual Information Form and MD&A, but readers are cautioned
that the list of factors that may affect future growth, results and performance is not exhaustive, and undue reliance should not be placed on forward- looking statements.
The expectations conveyed by the forward-looking statements are based on information available to it on the date such statements were made, and there can be no assurance that such expectations will prove to be correct. All subsequent forward-looking statements, whether written or orally attributable to the Company or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
Unless otherwise required by applicable securities laws, the Company expressly disclaims any intention, and assumes no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2
TFI International: Who We Are
Full service: | Diversified: |
Package & Courier, | |
Transport and | Less-Than-Truckload, |
logistics | Truckload and |
Logistics |
North | Number of | Extensive |
American | Operating | Network: |
Leader: | Companies: | 620 facilities, |
Operations across | 18,462 trucks1, | |
90+ | ||
U.S. and Canada | 33,771 trailers |
25,005 | Decentralized, |
employees, | entrepreneurial |
of which 12,041 | management |
are drivers | approach |
1 11,051 owned or leased; 7,411 are independent contractors
3
Our Customer Value Proposition
- We create transportation and supply chain advantages to…
…mitigate risk for customers |
…improve their efficiency and delivery timing |
…reduce their delivery costs |
…drive satisfaction for the end consumer |
4
Why Invest in TFI International?
Superior record | Market leader in |
of growth and | key transportation |
shareholder value | and logistics |
creation | segments |
Track record of M&A execution with well-defined acquisition pipeline
Robust Return on
Invested Capital
Diversification by industry sectors and geography
5
Investment Highlights
Best-in-class operating margins, | ◼ 11.5% Operating Margin2 | ||
◼ 5.3% FCF Yield1,3 | |||
FCF yield and FCF conversion | |||
◼ 82.5% FCF Conversion1,4 | |||
Proven track record of growth | ◼ Completed 87 acquisitions since 2015, | ||
through disciplined | of which 4 were major acquisitions6 | ||
acquisition strategy | ◼ Industry remains fragmented | ||
Balanced capital allocation | ◼ US$5.8 billion 20-year total FCF1 | ||
approach to drive | ◼ US$2.0 billion returned to shareholders | ||
shareholder value | since 2017 | ||
Robust balance sheet position | ◼ Access to US$1.0 billion revolving | ||
facilities | |||
Note: All financial results presented on this page represent continuing operations. | ◼ | Annual Forward Dividend Yield of 1.0% | 5 |
1 This is a Non-IFRS measure. This and other non-IFRS measures presented throughout the presentation do not have standardized meaning | |||
under IFRS and therefore may not be comparable to similar measures presented by other issuers. See reconciliation of measures on page 49. |
2TTM Q1 2024, calculated using revenue before surcharge.
- TTM Q1 2024 FCF divided by the March 31, 2024 market cap.
- Calculated as TTM Q1 2024 (Adjusted EBITDA - Net Capex of rolling stock and equipment) / Adjusted EBITDA.
- Based on US $0.40 dividend approved by the Board on April 25, 2024 and stock price of US $159.46, as of March 31, 2024.
- Major acquisitions are defined as having a purchase price of US $200.0 million and over.
6
Low Capex Facilitates Asset-Light Model
TTM Net Capex (% of Total Revenue) |
15.2%
3.5%
6.6%
10.1%
1.4%
Truckload Peer Average1 | Package & Courier Peer Average2 Less-than-Truckload Peer Average3 | Logistics Peer Average4 |
Note: TFI Net Capex excludes purchases and sales of property.
- Truckload: Heartland, Knight-Swift, Werner, Schneider, J.B. Hunt, and P.A.M. Transportation.
- Package & Courier: FedEx and UPS.
- Less-Than-Truckload:ArcBest, Old Dominion Freight Line, and Saia.
- Logistics: CH Robinson, Landstar, Forward Air, GXO, and RXO.
7
Market Leadership in Key Transportation and Logistics Segments: TTM FCF Conversion
Package & Courier |
85.0%
48.7%
1
Peer Average
Truckload |
Less-Than-Truckload |
70.9%
51.9%
Peer Average 2
Logistics |
89.7% | 98.1% |
75.9%
-5.2%
Peer Average3 | Peer Average4 |
Note: FCF Conversion (%) calculated as (Adjusted EBITDA - Net Capex of rolling stock and equipment) / Adjusted EBITDA. This is a non-IFRS measure. Please refer to the reconciliation on page 48.
- Package & Courier: FedEx and UPS.
- Less-Than-Truckload:ArcBest, Old Dominion Freight Line, and Saia.
- Truckload: Heartland, Knight-Swift, Werner, Schneider, J.B. Hunt, and P.A.M. Transportation.
- Logistics: CH Robinson, Landstar, Forward Air, GXO, and RXO.
8
Our Strategy of Growth Through Acquisitions
- Proven track record of executing on M&A strategy across highly fragmented markets
- Completed 87 acquisitions since 2015, of which 4 were major acquisitions1.
- Strong focus on integration, operations and realization of synergies
- Our disciplined acquisition criteria:
- Immediately accretive to EPS and free cash flow
- Fit with one of our four segments (Package & Courier, LTL, TL, Logistics)
- High free cash flow generation
- U.S. or Canada footprint
- Strong management team
- Synergy and growth potential
1Major acquisitions are defined as having a purchase price of US $200.0 million and over.
9
Overview of the TFI International Platform
Package & Courier |
(7% of YTD Q1-2024 |
Revenue) |
Less-Than-Truckload |
(43% of YTD Q1-2024 |
Revenue) |
Truckload |
(25% of YTD Q1-2024 |
Revenue) |
Logistics |
(25% of YTD Q1-2024 |
Revenue) |
Canadian |
(9% of YTD Q1- |
2024 Revenue) |
US |
(34% of YTD |
Q1-2024 |
Revenue) |
Conventional |
(5% of YTD Q1- |
2024 Revenue) |
Specialized |
(20% of YTD |
Q1-2024 |
Revenue) |
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
TFI International Inc. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 20:42:16 UTC.