Financial Data and Key Metrics Changes - Adjusted net income for the fourth quarter was $147 million, slightly down from $152 million in the same period of 2022, with adjusted EPS at $1.71, down by $0.01 [4] - Net cash from operating activities increased significantly to $303 million from $248 million a year ago, totaling over $1 billion for the full year, up from the previous year despite market conditions [4] - Return on invested capital for the P&C segment was 28.1%, indicating solid performance despite weaker demand [5] Business Line Data and Key Metrics Changes - Truckload revenue before fuel surcharge was nearly flat at just under $400 million, down 1% year-over-year, while operating income decreased to $51 million from $72 million, with an operating ratio of 87.3% compared to 86.1% [7] - Revenue before fuel surcharge for another segment climbed 24% year-over-year, with operating income jumping 60% to $55 million, benefiting from a successful acquisition and effective cost control [8] - The Canadian-based conventional truckload business held revenue before fuel surcharge at $78 million, with miles driven slightly up and rates increasing by about 7% [29] Market Data and Key Metrics Changes - The company noted a 4% decline in volume year-over-year in Q4, with a 13% decrease year-to-date, indicating a challenging market environment [38] - The average weight per shipment increased by 10%, although it remains below peers' averages [24] Company Strategy and Development Direction - The company is focused on profitability and cash flow, with plans to invest in the business, pursue attractive M&A opportunities, and return capital to shareholders even in weak market conditions [3] - The ongoing turnaround at US LTL emphasizes improving service quality and revenue, with a target operating ratio of 88% for 2024 [14][21] - The acquisition of Daseke is seen as a strategic move to enhance size and capabilities in the specialized truckload market [36][100] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding Q1 2024 due to poor weather conditions and a soft market, indicating that guidance for 2024 will be provided after Q1 results [10][34] - The company aims to improve service and reduce customer churn, which has been a significant issue affecting revenue growth [48][124] - Management believes that improvements in service and operational efficiency will lead to better pricing power and revenue growth in 2024 [126][128] Other Important Information - The Board of Directors raised the quarterly dividend by 14% during the fourth quarter, reflecting a strong financial position [31] - The funded debt-to-EBITDA ratio stood at 1.49, with a weighted average interest rate of 4.4% [30] Q&A Session Summary Question: Can you provide guidance for 2024? - Management stated that they are cautious about providing guidance due to the Daseke acquisition and current market conditions, preferring to wait until after Q1 [10][34] Question: What are the expectations for EPS in Q1? - Management indicated that while Q1 is expected to be tough, they believe EPS will be flat or slightly up compared to Q1 2023 [145][163] Question: How is the company addressing high customer churn? - Management acknowledged high churn rates and emphasized ongoing efforts to improve customer service and billing processes to enhance customer retention [48][124] Question: What is the target operating ratio for 2024? - The target operating ratio for 2024 is set at 88%, with a commitment to achieving this despite current challenges [14][21] Question: How does the company plan to improve service quality? - Management highlighted the importance of focusing on the right freight types and improving operational efficiency to enhance service quality [111][126]

Revenue Performance - Total revenue for Q4 2023 was $1.97 billion, a slight increase from $1.96 billion in Q4 2022, while full-year revenue decreased to $7.52 billion from $8.81 billion in 2022, reflecting a 10% decline [4][11]. - Total revenue for 2023 was $7,521,167, a decrease of 15% from $8,812,491 in 2022 [32]. - Total revenue for the three months ended December 31, 2023, was $1,604.8 million, a decrease from $1,689.1 million in 2022, reflecting a variance of -5.0% [46]. - Total revenue before fuel surcharge for Q4 2023 was $1,674,114 thousand, compared to $1,616,495 thousand in Q4 2022, reflecting a 3.6% increase [61]. Earnings and Income - Adjusted diluted EPS for Q4 2023 was $1.71, compared to $1.72 in Q4 2022, and full-year adjusted diluted EPS was $6.18, down from $8.02 in 2022 [5][13]. - Full-year net income was $504.9 million, or $5.80 per diluted share, compared to $823.2 million, or $9.02 per diluted share in 2022 [13]. - Net income for 2023 was $504,877, down 39% from $823,232 in 2022 [32]. - Adjusted net income for the year ended December 31, 2023, was $538.3 million, down from $731.7 million in 2022, a decrease of 26.4% [52]. Cash Flow and Investments - Net cash from operating activities for Q4 2023 increased by 22% to $302.6 million, while full-year net cash flow from operating activities rose to $1,013.8 million, a 4% increase from $971.6 million in 2022 [5][20]. - The company returned $409.1 million to shareholders in 2023, including $121.1 million in dividends and $288.0 million in share repurchases [20]. - Free cash flow for the year 2023 was $775,895,000, compared to $880,892,000 in 2022, a decrease of 11.9% [66]. - Cash flows from operating activities increased to $1,013,839 thousand in 2023, compared to $971,645 thousand in 2022, reflecting a growth of approximately 4.3% [37]. Dividends - The Board of Directors approved a quarterly dividend of $0.40, representing a 14% increase [5]. - TFI International declared a quarterly dividend of $0.40 per share, a 14% increase from $0.35 in Q4 2022 [21]. - The company paid dividends totaling $121,095 thousand in 2023, an increase from $97,321 thousand in 2022, representing a growth of approximately 24.4% [37]. Segment Performance - Logistics segment revenue increased by 28% in Q4 2023, while Package and Courier, Less-Than-Truckload, and Truckload segments saw declines of 9%, 6%, and 5% respectively [10]. - Operating income for Q4 2023 was $198.3 million, down from $216.9 million in Q4 2022, primarily due to weaker market demand [5][8]. - Operating income for the Package and Courier segment was $34,711 thousand in Q4 2023, down from $37,563 thousand in Q4 2022, a decline of approximately 4.9% [40]. - Operating income for Truckload in Q4 2023 was $50.66 million, a decrease of 12.7% from $71.84 million in Q4 2022 [44]. Assets and Liabilities - Total assets increased to $6,283,620 in 2023, up from $5,505,830 in 2022 [30]. - Total liabilities rose to $3,692,210 in 2023, compared to $3,042,760 in 2022 [30]. - Total assets less intangible assets as of December 31, 2023, were $4,264,319,000, compared to $3,913,720,000 in 2022, reflecting an increase of 9.0% [68]. Operational Efficiency - Adjusted operating ratio for Q4 2023 was 87.7%, slightly up from 87.4% in Q4 2022 [61]. - Adjusted operating ratio for Truckload segment increased to 87.3% in Q4 2023 from 86.1% in Q4 2022, indicating a decrease in operational efficiency [63]. - Free cash flow conversion rate improved to 83.3% in Q4 2023 from 74.5% in Q4 2022, indicating better efficiency in converting operating profit into free cash flow [64]. Future Outlook - TFI International will host a conference call on February 9, 2024, to discuss these results [22].

TFI International Inc. (NYSE:TFII) Q3 2023 Earnings Conference Call October 24, 2023 9:00 AM ET Conference Call Participants Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TFI International's Third Quarter 2023 Results Conference Call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please be advised that this conference call will contain statements that are forward-looking ...

Alain Bedard Operator Alain Bedard - President, CEO & Chairman Operator I will now turn the call over to Alain Bedard, Chairman, President and Chief Executive Officer of TFI International. Please go ahead, sir. Throughout our organization, we recognize the importance of profitability and cash flow. This is what allowed us to produce solid results during a difficult quarter with solid operating ratio across all four of our business segments. In turns, this focus on profitability and cash flow, as I've mentio ...

Alain Bedard - Chairman, President and Chief Executive Officer Please be advised that this conference call will contain statements that are forward-looking in nature and subject to a number of risks and uncertainties that could cause actual results to differ materially. Also, I would like to remind everyone that this conference call is being recorded on Wednesday, April 26, 2023. Our operating income during the first quarter was $166 million with an operating margin of 10.7% versus the year earlier period o ...

TFI International Inc. (NYSE:TFII) Q4 2022 Earnings Conference Call February 6, 2023 5:00 PM ET Company Participants Alain Bedard - Chairman, President and Chief Executive Officer Conference Call Participants Scott Group - Wolfe Research, LLC Kenneth Hoexter - Bank of America Merrill Lynch Walter Spracklin - RBC Capital Markets Ravi Shanker - Morgan Stanley Jordan Alliger - Goldman Sachs Group, Inc. Konark Gupta - Scotiabank Brian Ossenbeck - JPMorgan Chase & Co. Jason Seidl - Cowen & Co. Thomas Wadewitz - ...

Financial Performance - TFI International reported total revenue of $1.96 billion for Q4 2022, down from $2.14 billion in Q4 2021, primarily due to the sale of CFI assets and reduced volumes in US LTL operations [7]. - Full-year total revenue increased to $8.81 billion in 2022, up 22% from $7.22 billion in 2021, with revenue before fuel surcharge rising 14% to $7.36 billion [11]. - Operating income for Q4 2022 was $216.9 million, a 1% increase from $215.0 million in Q4 2021, with an operating margin improvement of 200 basis points [8]. - Net income for Q4 2022 grew 6% to $153.5 million, with diluted EPS increasing 14% to $1.74 compared to Q4 2021 [9]. - Full-year adjusted diluted EPS rose to $8.02 in 2022, up from $5.23 in 2021, reflecting a 53% increase [12]. - Operating income for the year ended December 31, 2022, was $470.81 million, representing a decrease of 17.8% from $572.80 million in 2021 [42]. - Net income for 2022 was $823.2 million, up from $754.4 million in 2021, marking a 9.1% increase [30]. - Basic earnings per share increased to $9.21 in 2022 from $8.11 in 2021, representing a 13.6% growth [30]. Cash Flow and Shareholder Returns - Free cash flow for Q4 2022 reached $188.3 million, a significant increase of 56% compared to the prior year period [6]. - TFI International returned $665.3 million to shareholders in 2022, including $97.3 million in dividends and $568.0 million in share repurchases [18]. - The Board of Directors approved a quarterly dividend of $0.35, representing a 30% increase [6]. - Free cash flow for the year ended December 31, 2022, was $880.9 million, compared to $700.9 million in 2021, reflecting a strong cash generation capability [72]. Operational Efficiency - The company emphasizes the importance of strategic acquisitions and operational efficiency to enhance shareholder value [21]. - The adjusted operating ratio for Q4 2022 improved to 87.4%, compared to 89.0% in Q4 2021, indicating enhanced operational efficiency [65]. - Adjusted operating ratio improved to 86.1% in Q4 2022 from 89.1% in Q4 2021, indicating better operational efficiency [67]. - The company achieved an adjusted EBITDA margin of 19.0% for the year ended December 31, 2022, compared to 15.9% in 2021, indicating improved profitability [62]. Segment Performance - The company experienced a 43% revenue growth in the Less-Than-Truckload segment for the full year 2022 compared to 2021 [13]. - Operating income for the Truckload segment increased by 59% year-over-year, contributing to overall revenue growth [13]. - Revenue from the United States segment was $6,071,806,000 in 2022, a 25.7% increase from $4,830,467,000 in 2021 [39]. - The Canadian segment generated $2,723,060,000 in revenue for 2022, up from $2,368,301,000 in 2021, reflecting a growth of 15% [39]. - Total revenue for the logistics segment in Q4 2022 was $394.07 million, down 10.7% from $441.09 million in Q4 2021 [49]. Asset and Liability Management - Total assets decreased to $5,505.8 million as of December 31, 2022, from $5,883.7 million in 2021 [28]. - Total liabilities decreased to $3,042.8 million in 2022 from $3,573.3 million in 2021, indicating improved financial health [28]. - The funded debt-to-EBITDA ratio as of December 31, 2022, was 0.96, significantly below the covenant requirement of less than 3.50 [75]. Investment and Capital Expenditures - Net capital expenditures for the year were $175.9 million, an increase from $136.8 million in 2021, indicating ongoing investment in infrastructure [70]. - The company reported a total of $286,277 thousand in additions to rolling stock for the year ended December 31, 2022, compared to $217,080 thousand in 2021, indicating a 31.9% increase [75]. Market Trends and Challenges - Tonnage decreased by 10.7% to 167,000 metric tons in Q4 2022 compared to 187,000 metric tons in Q4 2021 [41]. - The company reported a 19.5% decrease in shipments, totaling 1,473,000 in Q4 2022 compared to 1,829,000 in Q4 2021 [44]. - Revenue per shipment (including fuel) increased by 13.3% to $419.26 in Q4 2022 from $371.17 in Q4 2021 [44].

TFI International Inc. (NYSE:TFII) Q3 2022 Earnings Conference Call October 28, 2022 8:30 AM ET Company Participants Alain Bedard - Chairman and President and Chief Executive Officer Conference Call Participants Jordan Alliger - Goldman Sachs Ravi Shanker - Morgan Stanley Brian Ossenbeck - JPMorgan Konark Gupta - Scotiabank Tom Wadewitz - UBS Jack Atkins - Stephens Scott Group - Wolfe Research Walter Spracklin - RBC Capital Markets Jason Seidl - Cowen Ken Hoexter - Bank of America Bascome Majors - Susquehan ...

Financial Data and Key Metrics Changes - For Q2 2022, TFI International reported a 76% increase in adjusted net income year-over-year and an 81% increase in adjusted diluted EPS, with quarterly free cash flow exceeding $300 million for the first time in company history [6][11][28] - Total quarterly revenue reached $2.4 billion, reflecting a 32% increase compared to the same quarter last year [11] - Adjusted operating income was impacted by a prior year bargain purchase price gain of $284 million, leading to a 17% decrease in reported operating income [12] Business Segment Data and Key Metrics Changes - The P&C segment, representing 7% of total revenue, experienced a 14% decline in revenue due to slower e-commerce activity, but operating income increased by 25% to $37 million, with a return on invested capital of 27.6% [14][15] - The LTL segment, accounting for 45% of segment revenue, generated $870 million in revenue, a 39% increase year-over-year, but operating income decreased to $187 million due to a prior year gain [16][17] - Truckload segment revenue before fuel surcharge was $557 million, up 16% year-over-year, with operating income more than doubling to $127 million [21] - Logistics segment revenue grew 12% to $454 million, while operating income decreased to $42 million due to a prior year bargain purchase gain [27] Market Data and Key Metrics Changes - Canadian LTL operations showed solid growth, with an operating ratio of 69.1%, an improvement of 880 basis points year-over-year [18] - U.S. LTL revenue reached $725 million with an operating ratio of 88, improving over 200 basis points from the previous year [20] - The truckload segment's Canadian operations benefited from favorable market conditions, achieving a significant margin improvement [90] Company Strategy and Development Direction - The company plans to continue optimizing TForce Freight while focusing on improving density, service quality, pricing, and driver retention [32] - TFI International aims to create long-term shareholder value through strategic acquisitions and returning excess capital to shareholders [9][30] - The company is investing in technology and equipment to enhance operational efficiency and profitability [41][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic headwinds such as rising interest rates, inflation, and supply chain challenges but expressed confidence in the company's ability to navigate these issues [7][31] - The outlook for 2022 has been raised, with expected earnings per share now forecasted at $8 and free cash flow at $900 million [33] Other Important Information - The company repurchased approximately 2.6 million shares during the quarter and increased its NCIB program to a maximum of approximately 8.8 million shares [29] - TFI International's balance sheet remains strong, with a debt to adjusted EBITDA ratio of only 1.32 [30] Q&A Session Summary Question: What is the macro environment and outlook in Canada? - Management indicated a positive outlook for the Canadian economy, supported by high oil prices and strong performance in key provinces, despite potential recession concerns [36][39] Question: What message does the buyback signal to investors? - Management believes the stock is undervalued and sees buybacks as a strong use of cash, indicating confidence in long-term growth [41][42] Question: What are the targets for U.S. LTL operations? - Management aims for an ADOR target within the next two years, focusing on improving operational efficiency and reducing excess capacity [48][50] Question: How is the company addressing labor challenges? - Management has prepared for regulatory changes and is focused on improving employee productivity while maintaining competitive salaries [70][72] Question: What is the outlook for truckload profitability? - Management expressed optimism about truckload margins, citing strong performance and market conditions, while also focusing on specialized operations [90][94]

Financial Data and Key Metrics Changes - The company reported first quarter adjusted diluted earnings per share (EPS) of $1.68, more than double compared to the previous year [3][7] - Total quarterly revenue increased by over 90% year-over-year to $2.2 billion, with operating income reaching $220 million, an increase of 116% over the prior year [6][8] - Net cash from operating activities was $138 million, down 11% year-over-year due to higher working capital needs [8][20] Business Segment Data and Key Metrics Changes - The P&C segment, representing 7% of total revenue, experienced a 5% decline in revenue but a 42% increase in operating income to $26.1 million, with an operating margin up 700 basis points to 20.9% [10] - The LTL segment, accounting for 45% of total revenue, generated $835 million in revenue before fuel surcharge, up from $132 million a year earlier, with operating income rising to $95 million [11] - Truckload revenue before fuel surcharge was $516 million, up 22% year-over-year, with operating income climbing 42% to $71 million [14] - The Logistics segment saw revenue before fuel surcharge increase by 15% to $435 million, with operating income growing to $35 million [18][19] Market Data and Key Metrics Changes - The Canadian LTL operation grew revenue before fuel surcharge by 8%, while the U.S. LTL business generated $696 million in revenue, reflecting strong integration post-acquisition [12][13] - The company noted a shortage of drivers and power, impacting service levels and customer demand [32][49] Company Strategy and Development Direction - The company aims to enhance efficiencies by focusing on internal execution, improving density, and optimizing pricing [23] - There is a strong emphasis on profitability and cash flow over simple growth, with plans to continue optimizing TForce Freight following last year's acquisition [5][24] - The management is preparing for potential M&A activity in Q2 and Q3, focusing on logistics and specialty truckload sectors [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges, citing strong execution and internal opportunities [4][25] - The outlook for full-year EPS has been raised to a range of $6.50 to $6.75, reflecting optimism despite potential economic headwinds [24][81] - Management noted that current market conditions do not indicate a freight recession, with ongoing demand for services [32][49] Other Important Information - The company generated free cash flow of $92 million after higher equipment purchases, ending March with a debt to adjusted EBITDA ratio of 1.72 [20] - A private placement of $300 million in notes was completed to refinance a maturing term loan, maintaining a leverage-neutral position [21][22] Q&A Session Summary Question: Concerns about the end of the cycle and TFI's cyclical nature - Management indicated that TFI's business is less cyclical compared to traditional truckload operations, with significant opportunities for improvement in the U.S. LTL network [29][30] Question: Near-term trajectory of the P&C business - Management acknowledged a slowdown in B2C but noted improvements in B2B, expecting profitability to increase despite volume declines [35][36] Question: Update on U.S. LTL margin improvement - Management aims for an ADOR within the next two years, with ongoing efforts to optimize operations and reduce costs [39][40] Question: Guidance dependency on pricing power and M&A - Management clarified that the new guidance does not include M&A impacts and emphasized cost management and pricing power as key factors [44][45] Question: Impact of spot rates on contract rates - Management stated that while spot rates are declining, contract rates remain strong due to ongoing supply chain issues and demand for service [84][85]