TFI International (US:TFII)2023-02-06 21:06Financial 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].