TFI International (US:TFII)2024-02-08 21:10Revenue 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].