- Third quarter operating income from continuing operations of $156.0 million increased from $131.9 million in Q3 2019
- Net cash from continuing operating activities of $189.6 million increased from $187.1 million in Q3 2019
- Net income of $110.7 million increased 34% compared to $82.6 million in Q3 2019
- Adjusted net income1, a non-IFRS measure, of $115.8 million increased from $88.1 million in Q3 2019
- Diluted EPS of $1.19 increased from $0.98 in Q3 2019
- Adjusted diluted EPS1, a non-IFRS measure, of $1.25 increased from $1.04 in Q3 2019
- Free cash flow1, a non-IFRS measure, of
$164.8 million increased from$129.7 million in Q3 2019 - Raising quarterly dividend to
$0.29 from$0.26 , a 12% increase.
“TFI International had an outstanding quarter as we continue to navigate through an unprecedented year. Relentless focus on our proven operating principles helped generate a 18% year-over-year increase in operating income and a robust 27% increase in free cash flow, all while continuing to protect our customers and employees,” said Alain Bédard, Chairman, President and Chief Executive Officer. “Regardless of fluctuating macro conditions, we have the experience and financial strength to create shareholder value through disciplined execution of our asset-light business plan, and are pleased to announce today a 12% increase in our quarterly dividend. We also acquired or agreed to acquire an additional five businesses during the quarter that are each an outstanding fit with our proven operating philosophy, and add to my confidence in TFI’s continued success going forward.”
Financial highlights (in millions of dollars, except per share data) | Quarters ended September 30 | Nine months ended September 30 | |||
2020 | 2019* | 2020 | 2019* | ||
Total revenue | 1,247.2 | 1,304.8 | 3,593.9 | 3,873.4 | |
Revenue before fuel surcharge | 1,155.0 | 1,165.8 | 3,293.0 | 3,447.2 | |
Adjusted EBITDA1 | 252.3 | 221.6 | 685.0 | 645.5 | |
Operating income from continuing operations | 156.0 | 131.9 | 405.9 | 385.9 | |
Net cash from continuing operating activities | 189.6 | 187.1 | 609.2 | 489.1 | |
Adjusted net income1 | 115.8 | 88.1 | 278.0 | 257.2 | |
Adjusted EPS - diluted1 ($) | 1.25 | 1.04 | 3.11 | 2.99 | |
Net income from continuing operations | 110.7 | 82.6 | 256.1 | 247.9 | |
EPS from continuing operations - diluted ($) | 1.19 | 0.98 | 2.87 | 2.88 | |
Weighted average number of shares ('000s) | 90,954 | 82,707 | 87,693 | 84,013 | |
* Recasted for changes in presentation, see note 20 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. |
THIRD QUARTER RESULTS
Total revenue of
Operating income from continuing operations increased by 18% to
Net income from continuing operations was
Total revenue grew 7% for Logistics, driven by business acquisitions and e-commerce, and 1% for Package and Courier, declined 6% for Truckload and 17% for Less-Than-Truckload, relative to the prior year.
The operating income in all segments improved from the prior year period except for the Truckload segment, where the comparative period benefited from
TFI acquired four companies in Q3 and two post Q3. Additionally, TFI has agreed to purchase DLS Worldwide which is expected to close in the fourth quarter, and terminated the previously announced agreement to acquire
NINE-MONTH RESULTS
For the first nine months of 2020, total revenue was
Net income from continuing operations was
For the first nine months of 2020, total revenue grew 11% for Logistics, driven by business acquisitions and e-commerce, and declined 9% for Truckload, 7% for Package and Courier and 20% for Less-Than-Truckload, relative to the prior year.
Operating income was higher for the Truckload, Logistics and Less-Than-Truckload segments, while operating income for Package and Courier declined.
SEGMENTED RESULTS | |||||||||||||||
(in millions of dollars) | Quarters ended September 30 | Nine months ended September 30 | |||||||||||||
2020 | 2019* | 2020 | 2019* | ||||||||||||
$ | $ | $ | $ | ||||||||||||
Revenue1 | |||||||||||||||
Package and Courier | 163.2 | 154.8 | 442.2 | 460.3 | |||||||||||
Less-Than-Truckload | 177.4 | 205.4 | 516.0 | 632.5 | |||||||||||
Truckload | 544.7 | 557.2 | 1,549.4 | 1,654.7 | |||||||||||
Logistics | 279.8 | 256.8 | 813.5 | 726.0 | |||||||||||
Eliminations | (10.1) | (8.4) | (28.2) | (26.3) | |||||||||||
1,155.0 | 1,165.8 | 3,293.0 | 3,447.2 | ||||||||||||
$ | % of Rev.1 | $ | % of Rev.1 | $ | % of Rev.1 | $ | % of Rev.1 | ||||||||
Operating income (loss) | |||||||||||||||
Package and Courier | 28.5 | 17.5% | 28.2 | 18.2% | 66.6 | 15.1% | 79.2 | 17.2% | |||||||
Less-Than-Truckload | 35.0 | 19.7% | 25.8 | 12.6% | 86.1 | 16.7% | 83.7 | 13.2% | |||||||
Truckload | 74.6 | 13.7% | 75.8 | 13.6% | 207.1 | 13.4% | 193.7 | 11.7% | |||||||
Logistics | 29.9 | 10.7% | 13.8 | 5.4% | 78.6 | 9.7% | 57.6 | 7.9% | |||||||
Corporate | (12.0) | (11.6) | (32.5) | (28.4) | |||||||||||
156.0 | 13.5% | 131.9 | 11.3% | 405.9 | 12.3% | 385.9 | 11.2% | ||||||||
Note: due to rounding, totals may differ slightly from the sum. * Recasted for changes in presentation, see note 20 in the unaudited condensed consolidated interim financial statements. | |||||||||||||||
1 Revenue before fuel surcharge. |
CASH FLOW
Net cash from continuing operating activities was
Cash used for the purchases of property and equipment was
On
The Board of Directors of TFI has approved a
REVERSAL OF CERTAIN COST SAVING MEASURES
TFI has rolled back certain cost saving measures implemented at the onset of the COVID-19 pandemic that had spanned all operating companies and its entire workforce. In the third quarter TFI has reinstated a full five-day work week for 486 employees and rehired 176 employees full-time who had been furloughed.
CONFERENCE CALL
ABOUT
- Package and Courier;
- Less-Than-Truckload;
- Truckload;
- Logistics.
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of
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 (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 from continuing operations 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 (unaudited in millions of dollars) | Quarters ended September 30 | Nine months ended September 30 | |||||||
2020 | 2019* | 2020 | 2019* | ||||||
Net income from continuing operations | 110.7 | 82.6 | 256.1 | 247.9 | |||||
Net finance costs | 15.4 | 21.2 | 52.2 | 61.8 | |||||
Income tax expense | 29.9 | 28.1 | 97.7 | 76.1 | |||||
Depreciation of property and equipment | 56.4 | 56.6 | 171.5 | 164.8 | |||||
Depreciation of right-of-use assets | 26.7 | 26.4 | 79.7 | 76.8 | |||||
Amortization of intangible assets | 15.8 | 16.8 | 46.8 | 49.1 | |||||
Bargain purchase gain | - | - | (5.6 | ) | (10.8 | ) | |||
Gain on sale of land and buildings and assets held for sale | (2.6 | ) | (10.1 | ) | (13.4 | ) | (20.2 | ) | |
Adjusted EBITDA | 252.3 | 221.6 | 685.0 | 645.5 | |||||
Note: due to rounding, totals may differ slightly from the sum. | |||||||||
* Recasted for change in presentation, see note 20 in the unaudited condensed consolidated interim financial statements. |
Adjusted net income and adjusted earnings per share (adjusted “EPS”), 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, bargain purchase gain, gain or loss on sale of land and buildings and assets held for sale, net of tax, net loss from discontinued operations and
Adjusted net income (unaudited, in millions of dollars, except per share data) | Quarters ended September 30 | Nine months ended September 30 | |||||||
2020 | 2019 | 2020 | 2019 | ||||||
Net income | 110.7 | 82.6 | 256.1 | 235.5 | |||||
Amortization of intangible assets related to business acquisitions, net of tax | 11.1 | 12.0 | 33.1 | 35.1 | |||||
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 | (0.2 | ) | - | - | - | ||||
Net foreign exchange (gain) loss, net of tax | (0.3 | ) | 0.4 | (1.5 | ) | 0.6 | |||
Bargain purchase gain | - | - | (5.6 | ) | (10.8 | ) | |||
Gain on sale of land and buildings and assets held for sale, net of tax | (2.2 | ) | (7.0 | ) | (11.7 | ) | (15.7 | ) | |
Net loss from discontinued operations | - | - | - | 12.5 | |||||
(3.2 | ) | - | 7.5 | - | |||||
Adjusted net income | 115.8 | 88.1 | 278.0 | 257.2 | |||||
Adjusted earnings per share - basic | 1.27 | 1.07 | 3.17 | 3.06 | |||||
Adjusted earnings per share - diluted | 1.25 | 1.04 | 3.11 | 2.99 | |||||
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 www.tfiintl.com. |
For further information:
Alain Bédard
Chairman, President and CEO
(647) 729-4079
abedard@tfiintl.com
Source:
2020 GlobeNewswire, Inc., source