TFI International Announces 2024 Third Quarter Results
Third quarter operating income of $203.3 million increased from $200.6 million the same quarter last year, primarily from contributions from business acquisitions offset by weaker market conditions and higher net gains on sale of assets held for sale in the prior year period.
Third quarter net income of $128.0 million compared to $133.3 million in Q3 2023, while adjusted net income1 of $136.6 million increased from $136.0 million.
Third quarter diluted earnings per share (diluted "EPS") of $1.50 compared to $1.54 in Q3 2023, while adjusted diluted EPS1 of $1.60 increased from $1.57.
Third quarter net cash from operating activities of $351.1 million increased from $278.7 million in Q3 2023 and free cash flow1 of $272.5 million increased from $198.3 million, used in part to repay over $130 million of debt.
The Board of Directors approved today a $0.45 quarterly dividend, an increase of 13%.
MONTREAL, Oct. 21, 2024 (GLOBE NEWSWIRE) -- TFI International Inc. (NYSE and TSX:TFII), a North American leader in the transportation and logistics industry, today announced its results for the third quarter ended September 30, 2024. All amounts are shown in U.S. dollars.
"Despite soft market conditions, TFI International performed well during quarter, generating more than $350 million of net cash from operating activities and over $270 million of free cash flow, up 26% and 37%, respectively, over the year-ago period," said Alain Bédard, Chairman, President and Chief Executive Officer. "While business conditions for US LTL are challenging, our Logistics segment performed very well, and both our Truckload and Canadian LTL operations have remained solid. We were also able to reduce debt during the quarter, reducing our leverage ratio. In the current freight environment, our talented team remains focused on operational enhancements and tapping into the potential of recent acquisitions, while our overarching focus on free cash flow allows us to opportunistically invest during weaker cycles and return significant capital to shareholders while maintaining a strong balance sheet."
THIRD QUARTER RESULTS
Financial highlights
Three months ended
Nine months ended
September 30
September 30
(in millions of U.S. dollars, except per share data)
2024
2023
2024
2023
Total revenue
2,184.6
1,911.0
6,319.9
5,552.5
Revenue before fuel surcharge
1,905.3
1,632.9
5,478.0
4,742.8
Adjusted EBITDA1
357.2
302.5
1,005.7
867.0
Operating income
203.3
200.6
563.0
559.4
Net cash from operating activities
351.1
278.7
800.3
711.3
Net income
128.0
133.3
338.6
373.5
EPS - diluted ($)
1.50
1.54
3.97
4.28
Adjusted net income1
136.6
136.0
387.7
391.4
Adjusted EPS - diluted¹ ($)
1.60
1.57
4.55
4.48
Weighted average number of shares ('000s)
84,609
85,849
84,528
86,186
Weighted average number of diluted shares ('000s)
85,123
86,582
85,222
87,330
Number of share outstanding - end of period ('000s)
84,635
85,932
84,635
85,932
1 This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Financial Measures" section below.
Total revenue of $2.18 billion increased from $1.91 billion in the prior year period and revenue before fuel surcharge of $1.91 billion increased from $1.63 billion. The increase is due to contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and a reduction in fuel surcharge revenue.
Operating income of $203.3 million increased from $200.6 million in the prior year period. The increase in operating income is from business acquisitions and is partially offset by lower volumes and $15.3 million less gain, net of impairment, on sale of assets held for sale.
Net income of $128.0 million compared to $133.3 million in the prior year period, and net income of $1.50 per diluted share compared to $1.54 in the prior year period. Net income included an increase in interest expense of $21.6 million related to the financing of the Daseke acquisition. Adjusted net income, a non-IFRS measure, was $136.6 million, or $1.60 per diluted share, up from $136.0 million, or $1.57 per diluted share, the prior year period.
Total revenue increased 74% in the Truckload segment relative to the prior year period, primarily from the acquisition of Daseke, increased 2% for Logistics and decreased by 9% for Less-Than-Truckload. Operating income increased 44% for Truckload and 19% for Logistics, and decreased 24% for Less-Than-Truckload in the third quarter compared to the prior year.
NINE-MONTH RESULTS Total revenue of $6.32 billion increased from $5.55 billion in the prior year period and revenue before fuel surcharge of $5.48 billion increased from $4.74 billion. The increase is due to contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and a reduction in fuel surcharge revenue.
Operating income of $563.0 million increased from $559.4 million in the prior year period. The increase in operating income is from business acquisitions and is partially offset by lower volumes and a $19.7 million restructuring charge related to the acquisition of Daseke recorded in the Corporate segment and $21.4 million higher gains, net of impairment, on sale of assets held for sale in the prior year period.
Net income of $338.6 million compared to $373.5 million in the prior year period, and net income of $3.97 per diluted share compared to $4.28 in the prior year period. Net income included an increase in interest expense of $56.1 million primarily related to the financing of the Daseke acquisition. Adjusted net income, a non-IFRS measure, was $387.7 million, or $4.55 per diluted share, compared to $391.4 million, or $4.48 per diluted share, the prior year period.
Total revenue increased relative to the prior year period with increases of 48% for Truckload, primarily from the acquisition of Daseke, and 17% for Logistics, and a decrease of 4% for Less-Than-Truckload. Operating income increased 6% for Truckload and 32% for Logistics, and decreased 9% for Less-Than-Truckload in the third quarter compared to the prior year.
SEGMENTED RESULTS
(in million of U.S. dollars)
Three months ended September 30
Nine months ended September 30
2024
2023
2024
2023
$
$
$
$
Revenue before fuel surcharge
