XPO(US:XPO)2023-10-30 20:15Financial Performance - Consolidated revenue for Q3 2023 increased by 1.7% to $1.98 billion compared to Q3 2022, while revenue for the first nine months of 2023 decreased by 1.4% to $5.8 billion compared to the same period in 2022 [104]. - Operating income for Q3 2023 was $154 million, a 10.8% increase from $139 million in Q3 2022 [103]. - Net income for Q3 2023 was $84 million, a decrease of 35.9% from $131 million in Q3 2022 [103]. - Revenue for the North American LTL segment increased 1.9% to $1.23 billion in Q3 2023, while it decreased 1.9% to $3.48 billion for the first nine months of 2023 [122]. - Revenue in the European Transportation segment increased by 1.5% to $752 million for Q3 2023, compared to $741 million in Q3 2022 [129]. - Revenue for the first nine months of 2023 decreased by 0.6% to $2.32 billion, down from $2.34 billion in the same period of 2022 [129]. - Adjusted EBITDA for Q3 2023 was $241 million, or 19.6% of revenue, compared to $240 million, or 19.9% of revenue in Q3 2022 [126]. - Adjusted EBITDA for Q3 2023 was $44 million, or 5.8% of revenue, compared to $43 million, or 5.9% of revenue in Q3 2022 [130]. Operational Metrics - For the trailing 12 months ended September 30, 2023, the company delivered approximately 18 billion pounds of freight [93]. - The company aims to add 900 net new doors to its terminal footprint by the first half of 2024, having already added 531 net new doors since implementing the LTL 2.0 growth plan [94]. - The in-house trailer manufacturing facility produced 4,705 trailers in 2022, with a goal to exceed 6,000 trailers in 2023 [95]. - The average weight per shipment decreased to 1,347 pounds in Q3 2023, down 4.3% from 1,408 pounds in Q3 2022 [123]. Employee and Operational Costs - Salaries, wages, and employee benefits for Q3 2023 were $809 million, or 40.9% of revenue, up from $739 million, or 38.0% of revenue in Q3 2022 [106]. - Purchased transportation costs for Q3 2023 were $437 million, or 22.1% of revenue, down from $480 million, or 24.7% of revenue in Q3 2022 [107]. - Fuel, operating expenses, and supplies for Q3 2023 were $406 million, or 20.5% of revenue, compared to $425 million, or 21.8% of revenue in Q3 2022 [108]. - Interest expense increased to $41 million in Q3 2023 from $35 million in Q3 2022, primarily due to higher prevailing interest rates [116]. - Depreciation and amortization expense for Q3 2023 was $110 million, up from $99 million in Q3 2022 [111]. - Restructuring costs for Q3 2023 were $1 million, down from $7 million in Q3 2022 [113]. - Other income for Q3 2023 was $4 million, down from $15 million in Q3 2022, reflecting lower net periodic pension income [114]. Liquidity and Capital Expenditures - Total liquidity as of September 30, 2023, was approximately $944 million, down from $1.06 billion as of December 31, 2022 [132]. - Cash generated from operating activities for the first nine months of 2023 was $443 million, a decrease of $185 million compared to $628 million in the same period of 2022 [144]. - Cash used in investing activities increased to $473 million in the first nine months of 2023, compared to $315 million in the same period of 2022 [147]. - The company had $2.4 billion total outstanding principal amount of debt as of September 30, 2023, with $112 million maturing in 2025 [149]. - Future interest payments associated with the company's debt are estimated to aggregate approximately $1.0 billion [149]. - The company anticipates full-year gross capital expenditures to be between $675 million and $725 million in 2023 [150]. - A hypothetical 1% increase in interest rates would increase annual interest expense by $7 million based on the $700 million outstanding on the term loan facility [152]. Market Position - The North American Less-Than-Truckload (LTL) segment holds approximately 8% market share of the $59 billion U.S. market as of December 31, 2022 [91]. - The proprietary technology used by the company optimizes linehaul, pickup-and-delivery, and pricing, which are critical for managing its extensive LTL network [99].