Market Overview

TFI International Announces 2019 Second Quarter Results

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  • Record second quarter operating results
  • Record operating income from continuing operations up 21% over the prior year period to $149 million
  • Diluted EPS from continuing operations of $1.16 compares to $0.89 in Q2 2018, while Adjusted Diluted EPS1 from continuing operations increased 19% to $1.18
  • Net cash from continuing operating activities of $141 million2
  • $85 million returned to shareholders through dividends and share repurchases; Board authorization and approval from TSX to expand share repurchase program

MONTREAL, July 25, 2019 (GLOBE NEWSWIRE) -- TFI International Inc. (TSX:TFII, OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the second quarter ended June 30, 2019.

"TFI International again produced record quarterly results, continuing our strong momentum.  Our consistent ability to perform even during challenging freight environments is a result of our relentless focus on profitable growth, through strong execution of business fundamentals," said Alain Bédard, Chairman, President and Chief Executive Officer.  "We produced record quarterly operating income from continuing operations, up 21% the past year, with three of our four segments generating double digit growth, and our capital allocation remains highly strategic.  During the quarter we completed three attractive acquisitions while also returning $85 million to shareholders through dividends and share repurchases, and we're pleased to be expanding our share repurchase program.  In summary, regardless of the transportation environment, our focus will remain on creating and unlocking shareholder value, and returning excess capital to shareholders whenever possible."

Financial highlights Quarters ended June 30   Six months ended June 30
(in millions of dollars, except per share data) 2019 20182   2019 20182
Total revenue 1,337.8 1,317.7   2,568.6 2,514.2
Revenue before fuel surcharge 1,183.9 1,156.9   2,281.3 2,218.5
Adjusted EBITDA from continuing operations1 236.5 186.7   425.4 315.7
Operating income from continuing operations 149.2 123.6   255.4 199.0
Net cash from continuing operating activities 141.4 145.3   302.1 203.1
Adjusted net income from continuing operations1 102.0 89.9   169.1 140.3
Adjusted EPS from continuing operations - diluted1 ($) 1.18 0.99   1.94 1.54
Net income from continuing operations 100.2 80.4   165.3 128.6
EPS from continuing operations - diluted ($) 1.16 0.89   1.90 1.42
Weighted average number of shares ('000s) 84,183 87,850   84,676 88,397
1 This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Financial Measures" section below.
2 The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.

SECOND QUARTER RESULTS
Total revenue of $1.34 billion was up 2%, and net of fuel surcharge, revenue of $1.18 billion was also up 2%, compared to the prior year period.

Operating income from continuing operations grew 21% to $149.2 million from $123.6 million the prior year period, mainly driven by strong execution across the organization, increased quality of revenue, and cost efficiencies.

Net income from continuing operations was $100.2 million, or $1.16 per diluted share, up from net income of $80.4 million, or $0.89 per diluted share, the prior year period, with the increase primarily attributable to higher revenues and stronger operating margins. Adjusted net income from continuing operations, a non-IFRS measure, was $102.0 million, or $1.18 per diluted share, up from $89.9 million, or $0.99 per diluted share, the prior year period.

SIX-MONTH RESULTS
For the first six months of 2019, total revenue reached $2.57 billion, versus $2.51 billion in the first six months of 2018. Net of fuel surcharge, revenue reached $2.28 billion, as compared to $2.22 billion last year. Operating income from continuing operations totalled $255.4 million, or 11.2% of revenue before fuel surcharge, an increase compared to $199.0 million and 9.0% of revenue before fuel surcharge last year.

Net income from continuing operations was $165.3 million, or $1.90 per diluted share, versus $128.6 million, or $1.42 per diluted share, a year ago. Adjusted net income was $169.1 million compared to $140.3 million the prior year period.

During the first half of 2019, total revenue grew for Truckload and Package and Courier, while the Less-Than-Truckload and Logistics and Last Mile segments declined 4% and 3%, respectively relative to the first half of 2018.

Operating income was higher for all segments, driven by strong operating performance in addition to the sale of three properties in Less-Than-Truckload, for total consideration of $17.2 million, generating a gain of $9.4 million.

SEGMENTED RESULTS                  
(in millions of dollars) Quarters ended June 30
      Six months ended June 30
   
  2019     20182       2019     20182    
  $     $       $     $    
Revenue1                  
 Package and Courier 158.5     158.8       305.5     301.2    
 Less-Than-Truckload 219.1     239.2       427.1     442.8    
 Truckload 570.4     525.1       1,097.5     1,015.8    
 Logistics and Last Mile 244.9     246.9       469.2     483.4    
 Eliminations (9.0 )   (13.1 )     (17.9 )   (24.7 )  
  1,183.9     1,156.9       2,281.3     2,218.5    
  $   % of
Rev.1
  $   % of
Rev.1
    $   % of
Rev.1
  $   % of
Rev.1
 
Operating income (loss)                  
 Package and Courier 29.9   18.9 % 30.2   19.0 %   50.9   16.7 % 50.8   16.9 %
 Less-Than-Truckload 30.3   13.8 % 24.9   10.4 %   57.9   13.6 % 36.3   8.2 %
 Truckload 67.2   11.8 % 55.5   10.6 %   118.0   10.8 % 91.8   9.0 %
 Logistics and Last Mile 28.7   11.7 % 19.8   8.0 %   43.8   9.3 % 34.8   7.2 %
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