Market Overview

TFI International Announces 2019 Third Quarter Results

Share:
  • Third quarter operating income up 3% over the prior year period to $131.9 million
  • Diluted EPS of $0.98 up from $0.96 in Q3 2018, while Adjusted Diluted EPS1 remained at $1.04
  • Net cash from operating activities grew 12% to $187.1 million2
  • $84.2 million returned to shareholders through dividends and share repurchases; Board authorization and approval from TSX to expand, then renew, share repurchase program
  • Raising quarterly dividend to $0.26 from $0.24

MONTREAL, Oct. 24, 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 third quarter ended September 30, 2019.

"TFI International has continued to perform well throughout 2019 and we are pleased to report record third quarter results.  While we closely monitor economic conditions and their impact on the North American freight business, our own attention to the fundamentals of the business has allowed us to outperform," said Alain Bédard, Chairman, President and Chief Executive Officer.  "We set another third quarter TFI record for operating income, and produced double-digit growth in net cash from operating activities.  Three of our four segments produced higher operating income than a year earlier, including a 19% increase for Truckload.  On the capital allocation front, we returned $84 million to shareholders through dividends and share repurchases, and we're pleased to have recently renewed our share repurchase program.  During the quarter we also completed two attractive acquisitions, continuing our disciplined approach to M&A.  Looking ahead, we plan to continue our emphasis on creating and unlocking shareholder value, and returning excess capital to shareholders whenever possible."

       
Financial highlights Quarters ended Sept 30   Nine months ended Sept 30
(in millions of dollars, except per share data) 2019 20182   2019 20182
Total revenue 1,304.8 1,287.6   3,873.4 3,801.8
Revenue before fuel surcharge 1,165.8 1,127.4   3,447.2 3,345.9
Adjusted EBITDA from continuing operations1 221.6 190.0   647.0 505.6
Operating income from continuing operations 131.9 128.2   387.3 327.2
Net cash from continuing operating activities 187.1 166.6   489.1 369.7
Adjusted net income from continuing operations1 88.1 95.0   257.2 235.4
Adjusted EPS from continuing operations - diluted1 ($) 1.04 1.04   2.99 2.58
Net income from continuing operations 82.6 86.7   247.9 215.3
EPS from continuing operations - diluted ($) 0.98 0.96   2.88 2.37
Weighted average number of shares ('000s) 82,707 87,673   84,013 88,153
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.
 

THIRD QUARTER RESULTS
Total revenue of $1.3 billion was up 1%, and net of fuel surcharge, revenue of $1.17 billion was up 3%, compared to the prior year period.

Operating income grew 3% to $131.9 million from $128.2 million the prior year period, driven by strong execution across the organization, increased quality of revenue, an asset-light approach, and cost efficiencies.

Net income was $82.6 million, or $0.98 per diluted share, down from net income of $86.7 million, or $0.96 per diluted share, the prior year period.  Adjusted net income, a non-IFRS measure, was $88.1 million, or $1.04 per diluted share, as compared to $95.0 million, or $1.04 per diluted share, the prior year period.

Total revenue grew for Package and Courier, Truckload and Logistics and Last Mile, while Less-Than-Truckload declined 10% relative to the prior year period.  Operating income was higher for Package and Courier, Less-Than-Truckload and Truckload, while Logistics and Last Mile declined 18%.

NINE-MONTH RESULTS
For the first nine months of 2019, total revenue reached $3.87 billion, versus $3.80 billion in the first nine months of 2018. Net of fuel surcharge, revenue reached $3.45 billion, as compared to $3.35 billion last year. Operating income from continuing operations totalled $387.3 million, or 11.2% of revenue before fuel surcharge, an increase of 18% compared to $327.2 million and 9.8% of revenue before fuel surcharge last year.

Net income from continuing operations was $247.9 million, or $2.88 per diluted share, versus $215.3 million, or $2.37 per diluted share, a year ago. Adjusted net income from continuing operations, a non-IFRS measure, was $257.2 million, or $2.99 per diluted share, compared to $235.4 million, or $2.58 per diluted share the prior year period.

During the first nine months of 2019, total revenue grew for Package and Courier, Truckload and Logistics and Last Mile, while the Less-Than-Truckload declined 6% relative to the first nine months of 2018.  Operating income from continuing operations was higher for all four segments.

 
SEGMENTED RESULTS 
(in millions of dollars) Quarters ended Sept 30   Nine months ended Sept 30
  2019
20182   2019
20182 
  $       $         $       $      
Revenue1                  
 Package and Courier 154.8     154.6       460.3     455.7    
 Less-Than-Truckload 205.4     227.5       632.5     670.3    
 Truckload 557.2     520.6       1,654.7     1,536.4    
 Logistics and Last Mile 256.8     234.7       726.0     718.1    
 Eliminations (8.4 )   (10.0 )     (26.3 )   (34.7 )  
  1,165.8     1,127.4       3,447.2     3,345.9    
  $   % of
Rev.1
  $   % of
Rev.1
    $   % of
Rev.1
  $   % of
Rev.1
 
Operating income (loss) from continuing
 operations
                 
 Package and Courier 28.2   18.2 % 28.0   18.1 %   79.2   17.2 % 78.8   17.3 %
 Less-Than-Truckload 25.8   12.6 % 25.4   11.2 %   83.7   13.2 % 61.7   9.2
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com