Investor Overview
Q1 2024
May 2024
Forward-looking statements
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our full year 2024 expectations of gross capex, interest expense, pension income, adjusted effective tax rate, and diluted share count, and future financial targets of North American LTL revenue CAGR, adjusted EBITDA CAGR, adjusted operating ratio improvement, and capex as a percentage of revenue. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target," "trajectory" or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers' demands; our ability to implement our cost and revenue initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain key employees including qualified drivers; labor matters; litigation; and competition and pricing pressures.
All forward-looking statements set forth in this document are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this document speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.
Non-GAAP financial measures
This presentation contains non-GAAP financial measures. For a description of these non-GAAP financial measures, including a reconciliation to the most comparable measure under GAAP, see the Appendix to this presentation.
2
First quarter 2024 highlights
$2.02 billion of revenue, up 6% YoY
$288 million of adjusted EBITDA, up 37% YoY
$0.81 of adjusted diluted EPS1, up 45% YoY
LTL adjusted operating income of $175 million, up 50% YoY
LTL adjusted operating ratio of 85.7%, improving by 390 bps YoY
LTL tonnage per day up 2.6% YoY, with shipments per day up 4.7%
LTL yield, excluding fuel, up 9.8% YoY
LTL revenue per shipment, excluding fuel, up 7.9% YoY, accelerating from Q4'23
LTL damage claims ratio of 0.3%, a company record
Second consecutive quarter with nearly 400 bps of adjusted OR YoY improvement
1 Diluted earnings from continuing operations per share
Refer to "Financial Reconciliations" and "Non-GAAP Financial Measures" sections in Appendix for related information
3
First quarter 2024 performance
REVENUE | $2.02 billion |
OPERATING INCOME | $138 million |
NET INCOME | $67 million |
DILUTED EARNINGS PER SHARE | $0.56 |
ADJUSTED NET INCOME | $97 million |
ADJUSTED DILUTED EPS | $0.81 |
ADJUSTED EBITDA | $288 million |
CASH FLOW FROM OPERATING ACTIVITIES | $145 million |
Refer to "Financial Reconciliations" and "Non-GAAP Financial Measures" sections in Appendix for related information
BY SEGMENT | |
NORTH AMERICAN LTL | |
REVENUE | $1.22 billion |
ADJUSTED EBITDA | $255 million |
ADJUSTED OPERATING RATIO | 85.7% |
EUROPEAN TRANSPORTATION | |
REVENUE | $797 million |
ADJUSTED EBITDA | $38 million |
4
Four pillars of LTL 2.0 plan driving significant margin and earnings expansion
1 | 2 | 3 | 4 |
Provide best-in- | Invest in network | Accelerate yield | Drive cost |
class service | for the long-term | growth | efficiencies |
Targets for LTL Growth, Profitability and
Efficiency, 2021-2027
Revenue CAGR of 6% to 8%
Adjusted EBITDA CAGR of 11% to 13%
Adjusted operating ratio improvement of at least 600 bps
Refer to "Non-GAAP Financial Measures" section in Appendix for related information
5
Strong position in North American LTL
6
A leading carrier in a compelling industry
5% CAGR: North American LTL industry revenue
- $52 billion bedrock industry for the US economy, with nearly 75% of share held by top 10 LTL players
- Diverse demand across verticals, with secular growth drivers
- Attractive pricing environment, with industry pricing positive YoY each year for over a decade
- Strong service quality is key gating factor for yield growth and margin expansion
- Industry service center capacity stayed nearly flat for a decade1
Sources: Third-party research; company filings
Note: Revenue CAGR for periods 2010-2023; industry size and market share from 2023 1 US service centers, includes ARCB, FDX, ODFL, SAIA, XPO and YELL
7
A major player in the supply-chain ecosystem
$4.7 billion | 9% | 3rd largest | 12.4% |
2023 revenue | 2023 industry share | LTL carrier by 2023 revenue | 2023 revenue allocated |
to gross capex | |||
33,000 | 650 million | 13 million | 18 billion |
customers served | linehaul miles run | shipments per year | pounds of freight |
per year | per year | ||
23,000 | 13,000 | 33,000 | 293 |
employees | drivers | trailers | service centers1 |
1 Excludes the company's December 2023 acquisition of 28 service centers, not yet operational as of March 31, 2024
Note: Company data for North American LTL segment only as of March 31, 2024, unless otherwise noted as 2023 (full year)
8
Expansive network covering 99% of US
zip codes
Service Centers
Acquired Service Centers1
- 293 service centers
- 28 additional service centers acquired
- Cross-borderand offshore capabilities
- Strategic investments in high-demand markets
1 Indicates planned expansion of footprint with 28 service centers acquired in December 2023, being integrated throughout 2024-2025
9
Strategic mix of blue-chip and local customers
33,000
customers
2.9% revenue
from largest customer, low
concentration risk
16-year
average tenure of top 10
customers
Note: Company data for North American LTL segment only as of March 31, 2024; selected customers of XPO
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
XPO Logistics Inc. published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 10:58:03 UTC.