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GXO LOGISTICS, INC.

(GXO)
  Report
Delayed Nyse  -  04:00 2022-09-26 pm EDT
35.40 USD   -3.59%
09:31aCredit Suisse Lowers GXO Logistics' Price Target to $56 from $65 on Macro Headwinds, Reiterates Outperform Rating
MT
09/23Susquehanna Adjusts GXO Logistics Price Target to $55 From $65, Maintains Positive Rating
MT
09/22GXO Advances OMNES' “Climate Positive” Mission with ESG-Focused Initiatives
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GXO Logistics : Factoring and Securitization

08/03/2022 | 05:19pm EDT

GXO Logistics, Inc.:Benefit to free cash flow from trade receivables programs

GXO Factoring & Securitization

Principle:When the company sells receivables, it accelerates cash receipts, thereby increasing reported free cash flow.

Examples:

On 6/1, company generates an accounts receivable invoice of $100. If the receivable is outstanding at end of quarter (customer has not paid) and the company sells the receivable for cash consideration on 6/30, operating cash flows (and free cash flow) during the quarter have benefitted from the receivable sale.

By way of contrast, if the company sells the receivable on 6/1 and the customer remits payment on or before 6/30, the sale

of the receivable has not benefitted free cash flow during the quarter because, absent the sale, operating cash flows would have reflected the cash receipt.

(Note, GXO has visibility to customer remittances post‐sale as it functions as a servicer on behalf of receivable purchasers)

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

$m

Benefit (reduction) to free cash flow from trade receivables programs

3

(12)

(1)

6

(8)

Securitization Programs *

A

Receivables sold in period

474

418

530

B

Cash consideration

474

418

530

C

Less: cash collected as servicer on sold receivables

(471)

(425)

(537)

(118)

D

Total cash impact of securitization programs (B + C)

3

(7)

(7)

(118)

Factoring Programs

E

Receivables sold in period

100

132

118

229

229

F

Cash Consideration

100

132

117

228

228

G

Less: sold receivables due or collected within period

(37)

(16)

(3)

(11)

H

Cash consideration from prior sequential quarter

(100)

(100)

(95)

(101)

(225)

I

Total cash impact of factoring programs (F + G + H)

0

(5)

6

124

(8)

Benefit (reduction) to free cash flow from trade receivables programs (D + I)

3

(12)

(1)

6

(8)

Year‐to‐date benefit (reduction) to free cash flow from trade receivables programs

(5)

(2)

* Securitization initiated Q4 '18 and terminated Q1 '22

B

With respect to trade receivables sold in the period indicated, represents portion of purchase price received in cash on day of sale

C

Represents cash collected in servicing capacity on sold receivables during the referenced period

F

With respect to trade receivables sold during the period indicated, represents cash received on sold receivables

Any difference between cash purchase price and gross amount of receivables sold represents the discount on sale of receivables and

is recorded within interest expense

G

Receivables sold with a due date intra quarter are excluded from cash impact

The examples above are for illustrative purposes only. Neither the Company's independent auditors, nor any other independent accountants, have compiled, examined or performed any procedures with respect to the examples, nor have they expressed any opinion or any other form of assurance on such examples.

Disclaimer

GXO Logistics Inc. published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 21:13:32 UTC.


© Publicnow 2022
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Analyst Recommendations on GXO LOGISTICS, INC.
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Financials (USD)
Sales 2022 9 036 M - -
Net income 2022 259 M - -
Net Debt 2022 2 093 M - -
P/E ratio 2022 17,2x
Yield 2022 -
Capitalization 4 356 M 4 356 M -
EV / Sales 2022 0,71x
EV / Sales 2023 0,62x
Nbr of Employees 75 000
Free-Float 99,4%
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Income Statement Evolution
Consensus
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Mean consensus BUY
Number of Analysts 15
Last Close Price 36,72 $
Average target price 68,71 $
Spread / Average Target 87,1%
EPS Revisions
Managers and Directors
Malcolm Wilson Chief Executive Officer & Director
Baris Oran Chief Financial Officer
Bradley S. Jacobs Chairman
Sandeep Sakharkar Chief Information Officer
Meagan Fitzsimmons Chief Compliance Officer
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