TFI International's truckload profit nearly doubles in third quarter
Montreal-based TFI International says operating income in its truckload business nearly doubled in the third quarter, even as the company ran fewer trucks. Its less-than-truckload (LTL) segment earned less.
The company reported results for the quarter ended Sept. 30 on Oct. 29. All figures are in U.S. dollars.
The headline numbers
- Total revenue rose 13 per cent to $2.23 billion, from $1.97 billion a year earlier.
- Revenue before fuel surcharge rose 8 per cent to $1.86 billion. Acquisitions added $59.3 million and better market conditions added $73.7 million.
- Operating income rose 17 per cent to $180.0 million, from $153.3 million.
- Net income rose 25 per cent to $105.7 million, or $1.28 per diluted share.
- Adjusted net income was $137.3 million, or $1.67 per diluted share, up 39 per cent per share.
By segment
Truckload operating income was $100.2 million, up 91 per cent from $52.6 million. Segment revenue before fuel surcharge rose to $753.0 million from $684.1 million.
Logistics operating income rose 59 per cent to $49.4 million, on revenue before fuel surcharge of $437.0 million.
LTL operating income fell to $44.4 million from $77.7 million. That figure includes a non-cash impairment of $14.4 million on an office building. LTL revenue before fuel surcharge slipped to $677.7 million from $687.0 million.
Chairman and CEO Alain Bédard said truckload posted double-digit top-line growth "despite fewer trucks." He said pricing initiatives in LTL began to help results late in the quarter and into October.
Cash and outlook
Net cash from operating activities was $235.2 million, down from $255.4 million. Free cash flow was $116.4 million, compared with $199.4 million a year earlier, as spending on equipment rose. The board approved a quarterly dividend of $0.47 a share, up 4 per cent.
For the fourth quarter, TFI expects adjusted diluted earnings of $1.30 to $1.40 per share. It forecasts year-over-year improvement in adjusted operating ratio of 400 to 500 basis points for truckload and 100 to 200 basis points for logistics. For LTL, it expects a decline of up to 100 basis points.