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TFII TFI International

Filed: 8 Feb 21, 5:08pm

Earnings Press Release

Exhibit 99.1

For Immediate Release

TFI International Announces 2020 Fourth Quarter and Full-Year Results

 

 

Elective change of presentation currency to U.S. dollars effective on December 31, 2020

 

 

Fourth quarter diluted EPS from continuing operations of $0.91 (CAD $1.18) up from $0.70 (CAD $0.92) in Q4 2019, while adjusted diluted EPS1 of $0.98 (CAD $1.27) increased from $0.72 (CAD $0.95)

 

 

Fourth quarter operating income from continuing operations of $117.1 million increased from $92.8 million in Q4 2019

 

 

Fourth quarter net cash from continuing operating activities of $164.9 million increased from $133.3 million in Q4 2019

 

 

Annual diluted EPS from continuing operations of $3.03 (CAD $4.06) up from $2.86 (CAD $3.80) in 2019, while adjusted diluted EPS1 of $3.30 (CAD $4.39) increased from $2.97 (CAD $3.94)

 

Montreal, Quebec, February 8, 2021 – TFI International Inc. (NYSE and TSX: TFII), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and full year ended December 31, 2020.

“TFI International had a successful 2020 that began with our listing on the New York Stock exchange and culminated with our robust fourth quarter results that featured a 26% increase in operating income and a 36% increase in adjusted diluted EPS,” said Alain Bédard, Chairman, President and Chief Executive Officer.  “Throughout the ongoing global pandemic, we’ve remained true to our operating philosophy including our asset-right business plan and an emphasis on free cash flow that we put toward growth objectives while returning excess capital to our shareholders.  We strategically made thirteen acquisitions during 2020 including five during the fourth quarter, and in the new year have already announced two additional strategic acquisitions, including the transformational purchase of UPS Freight.  I wish to thank all of our employees for their extraordinary efforts during an unprecedented year, placing TFI International in an enviable position of strength to create additional shareholder value as we move through 2021.”

SELECTED FINANCIAL DATA AND HIGHLIGHTS (UNAUDITED)

Financial highlights

 

Quarters ended

December 31

 

 

Years ended

December 31

 

(in millions of U.S. dollars, except per share data)

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Total revenue

 

 

1,122.0

 

 

 

989.0

 

 

 

3,781.1

 

 

 

3,903.5

 

Revenue before fuel surcharge

 

 

1,048.1

 

 

 

883.7

 

 

 

3,484.3

 

 

 

3,477.6

 

Adjusted EBITDA1

 

 

193.5

 

 

 

163.4

 

 

 

699.6

 

 

 

649.0

 

Operating income from continuing operations

 

 

117.1

 

 

 

92.8

 

 

 

416.6

 

 

 

382.9

 

Net cash from continuing operating activities

 

 

164.9

 

 

 

133.3

 

 

 

610.9

 

 

 

500.5

 

Adjusted net income1

 

 

93.4

 

 

 

60.1

 

 

 

299.8

 

 

 

253.6

 

Adjusted EPS - diluted1 ($)

 

 

0.98

 

 

 

0.72

 

 

 

3.30

 

 

 

2.97

 

Net income from continuing operations

 

 

86.3

 

 

 

58.0

 

 

 

275.7

 

 

 

244.2

 

EPS from continuing operations - diluted ($)

 

 

0.91

 

 

 

0.70

 

 

 

3.03

 

 

 

2.86

 

Weighted average number of shares ('000s)

 

 

93,374

 

 

 

81,551

 

 

 

89,113

 

 

 

83,390

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS Financial Measures” section below.


1


Earnings Press Release

FOURTH QUARTER RESULTS

Total revenue of $1.12 billion was up 13% and, net of fuel surcharge, revenue of $1.05 billion was up 19% compared to the prior year period.

 

Operating income from continuing operations grew 26% to $117.1 million from $92.8 million the prior year period, primarily driven by acquisitions, strong execution across the organization, increased quality of revenue, an asset-right approach, cost efficiencies, and Canadian Emergency Wage Subsidy contributions of $6.3 million.

 

Net income from continuing operations grew 49% to $86.3 million from $58.0 million the prior year period, and net income from continuing operations of $0.91 (CAD $1.18) per diluted share was up relative to $0.70 (CAD $0.92) the prior year period.  Adjusted net income, a non-IFRS measure, was $93.4 million, or $0.98 (CAD $1.27) per diluted share, as compared to $60.1 million, or $0.72 (CAD $0.95) per diluted share, the prior year period.

 

Total revenue grew 16% for Package and Courier, 2% for Truckload and 59% for Logistics, and declined 10% for Less-Than-Truckload, relative to the prior year period.  Operating income was higher across all segments in Q4 in comparison to the prior-year.

 

FULL-YEAR RESULTS

Total revenue was $3.78 billion for 2020 versus $3.90 billion in 2019. Net of fuel surcharge, revenue was $3.48 billion, flat with the prior year.

 

Operating income from continuing operations totalled $416.6 million, or 12.0% of revenue before fuel surcharge, an increase of 9% compared to $382.9 million and 11.0% of revenue before fuel surcharge in the prior year. The increase is mainly attributable to the Canadian Emergency Wage Subsidy of $52.3 million offset by a decrease in revenues due to the COVID-19 pandemic.

 

Net income from continuing operations was $275.7 million, or $3.03 (CAD $4.06) per diluted share, compared to $244.2 million, or $2.86 (CAD $3.80) per diluted share a year earlier. Adjusted net income from continuing operations, a non-IFRS measure, was $299.8 million, or $3.30 (CAD $4.39) per diluted share, compared to $253.6 million, or $2.97 (CAD $3.94) per diluted share the prior year period.

 

During 2020, total revenue grew 22% for Logistics, and declined 2% for Package and Courier, 19% for Less-Than-Truckload and 8% for Truckload relative to 2019.  Operating income was up 7% for Less-Than-Truckload, 7% for Truckload and 48% for Logistics, and down 4% for Package and Courier.


2


Earnings Press Release

SEGMENTED RESULTS

To facilitate the comparison of business level activity and operating costs between periods, the Company compares the revenue before fuel surcharge (“revenue”) and reallocates the fuel surcharge revenue to materials and services expenses within operating expenses. Note that “Total revenue” is not affected by this reallocation.

Selected segmented financial information

(unaudited)

(in thousands of U.S. dollars)

 

Package

and

Courier

 

 

Less-

Than-Truckload

 

 

Truckload

 

 

 

 

Logistics

 

 

Corporate

 

 

Eliminations

 

 

Total

 

Three months ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before fuel surcharge1

 

 

154,094

 

 

 

141,081

 

 

 

438,135

 

 

 

322,319

 

 

 

 

 

 

(7,482

)

 

 

1,048,147

 

% of total revenue2

 

 

15

%

 

 

14

%

 

 

42

%

 

 

29

%

 

 

 

 

 

 

 

 

 

 

100

%

Adjusted EBITDA

 

 

35,934

 

 

 

37,084

 

 

 

101,383

 

 

 

35,809

 

 

 

(16,672

)

 

 

 

 

 

193,538

 

Adjusted EBITDA margin3

 

 

23.3

%

 

 

26.3

%

 

 

23.1

%

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

18.5

%

Operating income (loss)

 

 

29,401

 

 

 

24,464

 

 

 

53,604

 

 

 

26,462

 

 

 

(16,809

)

 

 

 

 

 

117,122

 

Operating margin3

 

 

19.1

%

 

 

17.3

%

 

 

12.2

%

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

11.2

%

Net capital expenditures4

 

 

2,550

 

 

 

6,194

 

 

 

21,155

 

 

 

70

 

 

 

244

 

 

 

 

 

 

30,213

 

Three months ended December 31, 2019*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before fuel surcharge1

 

 

127,301

 

 

 

151,303

 

 

 

412,760

 

 

 

198,961

 

 

 

 

 

 

(6,608

)

 

 

883,717

 

% of total revenue2

 

 

15

%

 

 

18

%

 

 

47

%

 

 

20

%

 

 

 

 

 

 

 

 

 

 

100

%

Adjusted EBITDA

 

 

29,295

 

 

 

31,269

 

 

 

90,447

 

 

 

21,933

 

 

 

(9,547

)

 

 

 

 

 

163,397

 

Adjusted EBITDA margin3

 

 

23.0

%

 

 

20.7

%

 

 

21.9

%

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

18.5

%

Operating income (loss)

 

 

22,680

 

 

 

19,311

 

 

 

46,417

 

 

 

14,216

 

 

 

(9,840

)

 

 

 

 

 

92,784

 

Operating margin3

 

 

17.8

%

 

 

12.8

%

 

 

11.2

%

 

 

7.1

%

 

 

 

 

 

 

 

 

 

 

10.5

%

Net capital expenditures4

 

 

3,321

 

 

 

27,945

 

 

 

17,783

 

 

 

1,002

 

 

 

5,158

 

 

 

 

 

 

55,209

 

YTD December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before fuel surcharge1

 

 

481,490

 

 

 

522,851

 

 

 

1,584,837

 

 

 

923,456

 

 

 

 

 

 

(28,331

)

 

 

3,484,303

 

% of total revenue2

 

 

14

%

 

 

15

%

 

 

46

%

 

 

25

%

 

 

 

 

 

 

 

 

 

 

100

%

Adjusted EBITDA

 

 

104,019

 

 

 

138,361

 

 

 

383,155

 

 

 

113,885

 

 

 

(39,831

)

 

 

 

 

 

699,589

 

Adjusted EBITDA margin3

 

 

21.6

%

 

 

26.5

%

 

 

24.2

%

 

 

12.3

%

 

 

 

 

 

 

 

 

 

 

20.1

%

Operating income (loss)

 

 

78,753

 

 

 

87,950

 

 

 

206,346

 

 

 

84,459

 

 

 

(40,941

)

 

 

 

 

 

416,567

 

Operating margin3

 

 

16.4

%

 

 

16.8

%

 

 

13.0

%

 

 

9.1

%

 

 

 

 

 

 

 

 

 

 

12.0

%

Total assets less intangible assets

 

 

194,631

 

 

 

404,074

 

 

 

1,193,730

 

 

 

272,592

 

 

 

34,564

 

 

 

 

 

 

2,099,591

 

Net capital expenditures4

 

 

16,798

 

 

 

19,230

 

 

 

29,179

 

 

 

567

 

 

 

444

 

 

 

 

 

 

66,218

 

YTD December 31, 2019*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue before fuel surcharge1

 

 

473,666

 

 

 

627,219

 

 

 

1,657,797

 

 

 

745,322

 

 

 

 

 

 

(26,428

)

 

 

3,477,576

 

% of total revenue2

 

 

14

%

 

 

18

%

 

 

48

%

 

 

20

%

 

 

 

 

 

 

 

 

 

 

100

%

Adjusted EBITDA

 

 

106,278

 

 

 

126,641

 

 

 

362,641

 

 

 

83,030

 

 

 

(29,569

)

 

 

 

 

 

649,021

 

Adjusted EBITDA margin3

 

 

22.4

%

 

 

20.2

%

 

 

21.9

%

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

18.7

%

Operating income (loss)

 

 

82,228

 

 

 

82,230

 

 

 

192,172

 

 

 

57,447

 

 

 

(31,209

)

 

 

 

 

 

382,868

 

Operating margin3

 

 

17.4

%

 

 

13.1

%

 

 

11.6

%

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

11.0

%

Total assets less intangible assets

 

 

180,811

 

 

 

407,358

 

 

 

1,206,568

 

 

 

159,152

 

 

 

49,771

 

 

 

 

 

 

2,003,660

 

Net capital expenditures4

 

 

10,967

 

 

 

27,536

 

 

 

108,039

 

 

 

1,995

 

 

 

4,261

 

 

 

 

 

 

152,798

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs

1 Includes intersegment revenue.

2 Segment revenue including fuel and intersegment revenue to consolidated revenue including fuel and intersegment revenue.

3 As a percentage of revenue before fuel surcharge.

4 Additions to rolling stock and equipment, net of proceeds from sale of rolling stock and equipment and assets held for sale excluding property.

 

CASH FLOW

Net cash from continuing operating activies was $610.9 million during 2020 compared to $500.5 million the prior year. The 22% increase was due to stronger operating performance, reduction of interest payments as a result of lower debt levels, and contributions from acquisitions. The Company returned $105.6 million to shareholders during the year, of which $67.6 million was through dividends and $38.0 million was through share repurchases.

 

On December 15, 2020, the Board of Directors of TFI International declared a quarterly dividend of $0.23 (CAD $0.29) per outstanding common share payable on January 15, 2021, representing an 14% increase over the $0.20 (CAD $0.26) quarterly dividend declared in Q4 2019.

 

3


Earnings Press Release

CHANGE IN PRESENTATION CURRENCY

The Company has elected to change its presentation currency from Canadian dollars (“CAD”) to United States dollars (“U.S. Dollars” or “USD”) effective December 31st, 2020. Due to the Company’s growing market presence in the U.S. with our equity listing in the U.S., financial reporting in USD provides a more relevant presentation of the Company’s financial position in comparison to its peers. The change in presentation currency is a voluntary change which is accounted for retrospectively. For comparative purposes, the historical consolidated financial statements have been restated to U.S. dollars using the procedures outlined below:

 

Consolidated Statements of Income, Comprehensive Income, and Cash Flows have been translated into U.S. dollars using average foreign currency rates prevailing for the relevant periods.

 

Assets and liabilities in the Consolidated Statement of Financial Position have been translated into U.S. dollars at the closing foreign currency rates on the relevant balance sheet dates.

 

Equity in the Consolidated Statement of Financial Position and Consolidated Statements of changes in Equity, including foreign currency translation reserve and net investment hedge, retained earnings, share capital, contributed surplus and other reserves, have been translated into U.S. dollars using historical rates.

 

Consolidated Earnings per share and dividend disclosures have also been translated to U.S. dollars to reflect the change in presentation currency.

The Company has also presented an opening consolidated statement of financial position as at January 1, 2019 in USD, which has been derived from the consolidated financial statements as at and for the year ended December 31, 2018. The Company’s consolidated financial statements will now be presented in U.S. dollars. All information in this press release is presented in USD unless otherwise specified.

 

The Company’s functional currency remains Canadian dollar. Translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar is the functional currency are included as part of the cumulative foreign currency translation adjustment. All financial information presented in U.S. dollars has been rounded to the nearest thousand.

 

CONFERENCE CALL

TFI International will host a conference call on Monday, February 8, 2021 at 5:00 p.m. Eastern Time to discuss these results.

Interested parties can join the call by dialing 1-877-223-4471. A recording of the call will be available until midnight, February

22, 2021, by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 9095057.

 

ABOUT TFI INTERNATIONAL

TFI International Inc. is a North American leader in the transportation and logistics industry, operating across the United States, Canada and Mexico through its subsidiaries. TFI International creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TFI International umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TFI International companies service the following segments:

 

Package and Courier;

 

Less-Than-Truckload;

 

Truckload;

 

Logistics.

 

TFI International Inc. is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII. For more information, visit www.tfiintl.com.

4


Earnings Press Release

FORWARD-LOOKING STATEMENTS

The Company may make statements in this report that reflect its current expectations regarding future results of operations, performance and achievements. These are “forward-looking” statements and reflect management’s current beliefs. They are based on information currently available to management. Words such as “may”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “to its knowledge”, “could”, “design”, “forecast”, “goal”, “hope”, “intend”, “likely”, “predict”, “project”, “seek”, “should”, “target”, “will”, “would” or “continue” and words and expressions of similar import are intended to identify these forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and those presently anticipated or projected.

 

The Company wishes to caution readers not to place undue reliance on any forward-looking statements which reference issues only as of the date made. The following important factors could cause the Company’s actual financial performance to differ materially from that expressed in any forward-looking statement: the highly competitive market conditions, the Company’s ability to recruit, train and retain qualified drivers, fuel price variations and the Company’s ability to recover these costs from its customers, foreign currency fluctuations, the impact of environmental standards and regulations, changes in governmental regulations applicable to the Company’s operations, adverse weather conditions, accidents, the market for used equipment, changes in interest rates, cost of liability insurance coverage, downturns in general economic conditions affecting the Company and its customers, credit market liquidity, and the Company’s ability to identify, negotiate, consummate, and successfully integrate acquisitions.

 

The foregoing list should not be construed as exhaustive, and the Company disclaims any subsequent obligation to revise or update any previously made forward-looking statements unless required to do so by applicable securities laws. Unanticipated events are likely to occur. Readers should also refer to the section “Risks and Uncertainties” at the end of the 2020 Q3 MD&A for additional information on risk factors and other events that are not within the Company’s control. The Company’s future financial and operating results may fluctuate as a result of these and other risk factors.

 

NON-IFRS FINANCIAL MEASURES

This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards as issued by the international Accounting Standards Board (IFRS) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of the non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided in the exhibits.

 

For further information:

Alain Bédard

Chairman, President and CEO

TFI International Inc.

(647) 729-4079

abedard@tfiintl.com

 

5


Earnings Press Release

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December 31, 2020 AND 2019

 

(in thousands of U.S. dollars)

 

As at

 

 

As at

 

 

As at

 

 

 

December 31,

2020

 

 

December 31,

2019*

 

 

January 1,

2019*

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

4,297

 

 

 

-

 

 

 

-

 

Trade and other receivables

 

 

597,873

 

 

 

452,241

 

 

 

463,075

 

Inventoried supplies

 

 

8,761

 

 

 

10,659

 

 

 

9,350

 

Current taxes recoverable

 

 

7,606

 

 

 

13,211

 

 

 

9,541

 

Prepaid expenses

 

 

29,904

 

 

 

27,777

 

 

 

28,256

 

Derivative financial instruments

 

 

-

 

 

 

30

 

 

 

3,980

 

Assets held for sale

 

 

4,331

 

 

 

3,561

 

 

 

5,551

 

Other assets

 

 

-

 

 

 

19,105

 

 

 

-

 

Current assets

 

 

652,772

 

 

 

526,584

 

 

 

519,753

 

Property and equipment

 

 

1,074,428

 

 

 

1,125,429

 

 

 

1,023,595

 

Right-of-use assets

 

 

337,285

 

 

 

334,168

 

 

 

-

 

Intangible assets

 

 

1,749,773

 

 

 

1,505,160

 

 

 

1,393,854

 

Other assets

 

 

23,899

 

 

 

8,655

 

 

 

24,685

 

Deferred tax assets

 

 

11,207

 

 

 

8,824

 

 

 

4,698

 

Derivative financial instruments

 

 

-

 

 

 

-

 

 

 

2,159

 

Non-current assets

 

 

3,196,592

 

 

 

2,982,236

 

 

 

2,448,991

 

Total assets

 

 

3,849,364

 

 

 

3,508,820

 

 

 

2,968,744

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Bank indebtedness

 

 

-

 

 

 

2,927

 

 

 

9,041

 

Trade and other payables

 

 

468,238

 

 

 

341,443

 

 

 

348,618

 

Current taxes payable

 

 

33,220

 

 

 

4,658

 

 

 

13,892

 

Provisions

 

 

17,452

 

 

 

18,264

 

 

 

18,372

 

Other financial liabilities

 

 

4,031

 

 

 

2,043

 

 

 

1,446

 

Derivative financial instruments

 

 

-

 

 

 

649

 

 

 

-

 

Long-term debt

 

 

42,997

 

 

 

41,305

 

 

 

89,679

 

Lease liabilities

 

 

88,522

 

 

 

76,326

 

 

 

-

 

Current liabilities

 

 

654,460

 

 

 

487,615

 

 

 

481,048

 

Long-term debt

 

 

829,547

 

 

 

1,302,002

 

 

 

1,071,751

 

Lease liabilities

 

 

267,464

 

 

 

279,265

 

 

 

-

 

Employee benefits

 

 

15,502

 

 

 

14,310

 

 

 

11,824

 

Provisions

 

 

36,803

 

 

 

22,522

 

 

 

31,375

 

Other financial liabilities

 

 

22,699

 

 

 

2,810

 

 

 

4,329

 

Derivative financial instruments

 

 

-

 

 

 

684

 

 

 

-

 

Deferred tax liabilities

 

 

232,712

 

 

 

240,320

 

 

 

212,535

 

Non-current liabilities

 

 

1,404,727

 

 

 

1,861,913

 

 

 

1,331,814

 

Total liabilities

 

 

2,059,187

 

 

 

2,349,528

 

 

 

1,812,862

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

1,120,049

 

 

 

678,915

 

 

 

697,232

 

Contributed surplus

 

 

19,783

 

 

 

19,549

 

 

 

19,082

 

Accumulated other comprehensive income

 

 

(154,723

)

 

 

(173,398

)

 

 

(200,029

)

Retained earnings

 

 

805,068

 

 

 

634,226

 

 

 

639,597

 

Equity attributable to owners of the Company

 

 

1,790,177

 

 

 

1,159,292

 

 

 

1,155,882

 

Contingencies, letters of credit and other commitments

 

 

-

 

 

 

-

 

 

 

-

 

Total liabilities and equity

 

 

3,849,364

 

 

 

3,508,820

 

 

 

2,968,744

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

6


Earnings Press Release

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

Years ended December 31, 2020 and 2019

 

(In thousands of U.S. dollars, except per share amounts)

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019*

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

3,484,303

 

 

 

3,477,576

 

Fuel surcharge

 

 

296,831

 

 

 

425,969

 

Total revenue

 

 

3,781,134

 

 

 

3,903,545

 

 

 

 

 

 

 

 

 

 

Materials and services expenses

 

 

2,051,835

 

 

 

2,134,720

 

Personnel expenses

 

 

888,185

 

 

 

980,785

 

Other operating expenses

 

 

150,572

 

 

 

156,121

 

Depreciation of property and equipment

 

 

170,520

 

 

 

168,720

 

Depreciation of right-of-use assets

 

 

80,496

 

 

 

77,326

 

Amortization of intangible assets

 

 

48,213

 

 

 

49,701

 

Gain on sale of business

 

 

(306

)

 

 

-

 

Bargain purchase gain

 

 

(4,008

)

 

 

(8,014

)

Gain on sale of rolling stock and equipment

 

 

(7,888

)

 

 

(15,386

)

Gain on derecognition of right-of-use assets

 

 

(1,159

)

 

 

(1,716

)

Loss (gain) on sale of land and buildings

 

 

6

 

 

 

(9

)

Gain on sale of assets held for sale

 

 

(11,899

)

 

 

(21,571

)

Total operating expenses

 

 

3,364,567

 

 

 

3,520,677

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

416,567

 

 

 

382,868

 

 

 

 

 

 

 

 

 

 

Finance (income) costs

 

 

 

 

 

 

 

 

Finance income

 

 

(2,776

)

 

 

(2,285

)

Finance costs

 

 

56,686

 

 

 

64,392

 

Net finance costs

 

 

53,910

 

 

 

62,107

 

 

 

 

 

 

 

 

 

 

Income before income tax

 

 

362,657

 

 

 

320,761

 

Income tax expense

 

 

86,982

 

 

 

76,536

 

Net income from continuing operations

 

 

275,675

 

 

 

244,225

 

Net loss from discontinued operations

 

 

-

 

 

 

(10,548

)

 

 

 

 

 

 

 

 

 

Net income for the year attributable to owners of the Company

 

 

275,675

 

 

 

233,677

 

 

 

 

 

 

 

 

 

 

Earnings per share attributable to owners of the Company

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

3.09

 

 

 

2.80

 

Diluted earnings per share

 

 

3.03

 

 

 

2.74

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations attributable  to owners of the Company

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

3.09

 

 

 

2.93

 

Diluted earnings per share

 

 

3.03

 

 

 

2.86

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs.

 

">

TFI International Inc. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31, 2020 and 2019

(In thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019*

 

 

 

 

 

 

 

 

 

 

Net income for the year attributable to owners of the Company

 

 

275,675

 

 

 

233,677

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Items that may be reclassified to income or loss in future years:

 

 

 

 

 

 

 

 

Foreign currency translation differences

 

 

21,182

 

 

 

17,476

 

Net investment hedge, net of tax

 

 

(2,010

)

 

 

12,158

 

Changes in fair value of cash flow hedge, net of tax

 

 

(487

)

 

 

(7,394

)

Employee benefits, net of tax

 

 

(10

)

 

 

32

 

Items that may never be reclassified to income

 

 

 

 

 

 

 

 

Defined benefit plan remeasurement

 

 

(1,623

)

 

 

(1,228

)

Items directly reclassified to retained earnings:

 

 

 

 

 

 

 

 

Unrealized gain on investment in equity securities measured at fair value

 

 

 

 

 

 

 

 

through OCI, net of tax

 

 

-

 

 

 

970

 

Other comprehensive income for the year, net of tax

 

 

17,052

 

 

 

22,014

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year attributable to owners of the Company

 

 

292,727

 

 

 

255,691

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

 

 

 

 

 

 

 

">

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY

Years Ended December 31, 2020 and 2019

(In thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

foreign

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unrealized

 

 

 

 

 

 

currency

 

 

unrealized

 

 

 

 

 

 

Total equity

 

 

 

 

 

 

 

 

 

 

 

loss on

 

 

Accumulated

 

 

translation

 

 

loss on

 

 

 

 

 

 

attributable

 

 

 

 

 

 

 

 

 

 

 

employee

 

 

cash flow

 

 

differences

 

 

investment in

 

 

 

 

 

 

to owners

 

 

 

Share

 

 

Contributed

 

 

benefit

 

 

hedge

 

 

and net invest-

 

 

equity

 

 

Retained

 

 

of the

 

 

 

capital

 

 

surplus

 

 

plans

 

 

gain (loss)

 

 

ment hedge

 

 

securities

 

 

earnings

 

 

Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2019*

 

 

678,915

 

 

 

19,549

 

 

 

(369

)

 

 

487

 

 

 

(173,516

)

 

 

-

 

 

 

634,226

 

 

 

1,159,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

275,675

 

 

 

275,675

 

Other comprehensive (loss) income for the year, net of tax

 

 

-

 

 

 

-

 

 

 

(10

)

 

 

(487

)

 

 

19,172

 

 

 

-

 

 

 

(1,623

)

 

 

17,052

 

Total comprehensive (loss) income for the year

 

 

-

 

 

 

-

 

 

 

(10

)

 

 

(487

)

 

 

19,172

 

 

 

-

 

 

 

274,052

 

 

 

292,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions

 

 

-

 

 

 

7,046

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,046

 

Stock options exercised

 

 

25,915

 

 

 

(4,554

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

21,361

 

Issuance of shares, net of expenses

 

 

425,350

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

425,350

 

Dividends to owners of the Company

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(72,735

)

 

 

(72,735

)

Repurchase of own shares

 

 

(12,025

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(25,996

)

 

 

(38,021

)

Net settlement of restricted share units

 

 

1,894

 

 

 

(2,258

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,479

)

 

 

(4,843

)

Total transactions with owners, recorded directly in equity

 

 

441,134

 

 

 

234

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(103,210

)

 

 

338,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2020

 

 

1,120,049

 

 

 

19,783

 

 

 

(379

)

 

 

-

 

 

 

(154,344

)

 

 

-

 

 

 

805,068

 

 

 

1,790,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at January 1, 2019*

 

 

697,232

 

 

 

19,082

 

 

 

(401

)

 

 

7,881

 

 

 

(203,150

)

 

 

(4,359

)

 

 

639,597

 

 

 

1,155,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment on initial application of IFRS 16

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(18,880

)

 

 

(18,880

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the year

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

233,677

 

 

 

233,677

 

Other comprehensive (loss) income for the year, net of tax

 

 

-

 

 

 

-

 

 

 

32

 

 

 

(7,394

)

 

 

29,634

 

 

 

970

 

 

 

(1,228

)

 

 

22,014

 

Realized loss on equity securities, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,389

 

 

 

(3,389

)

 

 

-

 

Total comprehensive (loss) income for the year

 

 

-

 

 

 

-

 

 

 

32

 

 

 

(7,394

)

 

 

29,634

 

 

 

4,359

 

 

 

229,060

 

 

 

255,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions

 

 

-

 

 

 

6,227

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,227

 

Stock options exercised

 

 

20,580

 

 

 

(4,233

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

16,347

 

Dividends to owners of the Company

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(61,631

)

 

 

(61,631

)

Repurchase of own shares

 

 

(39,621

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(152,835

)

 

 

(192,456

)

Net settlement of restricted share units

 

 

724

 

 

 

(1,527

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,085

)

 

 

(1,888

)

Total transactions with owners, recorded directly in equity

 

 

(18,317

)

 

 

467

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(215,551

)

 

 

(233,401

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2019*

 

 

678,915

 

 

 

19,549

 

 

 

(369

)

 

 

487

 

 

 

(173,516

)

 

 

-

 

 

 

634,226

 

 

 

1,159,292

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

">

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2020 and 2019

(In thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

2020

 

 

2019*

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income for the year

 

 

275,675

 

 

 

233,677

 

Net loss from discontinued operations

 

 

-

 

 

 

(10,548

)

Net income from continuing operations

 

 

275,675

 

 

 

244,225

 

Adjustments for

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

170,520

 

 

 

168,720

 

Depreciation of right-of-use assets

 

 

80,496

 

 

 

77,326

 

Amortization of intangible assets

 

 

48,213

 

 

 

49,701

 

Share-based payment transactions

 

 

7,046

 

 

 

6,227

 

Net finance costs

 

 

53,910

 

 

 

62,107

 

Income tax expense

 

 

86,982

 

 

 

76,536

 

Gain on sale of business

 

 

(306

)

 

 

-

 

Bargain purchase gain

 

 

(4,008

)

 

 

(8,014

)

Gain on sale of property and equipment

 

 

(7,882

)

 

 

(15,395

)

Gain on derecognition of right-of-use assets

 

 

(1,159

)

 

 

(1,716

)

Gain on sale of assets held for sale

 

 

(11,899

)

 

 

(21,571

)

Provisions and employee benefits

 

 

6,274

 

 

 

(3,696

)

 

 

 

703,862

 

 

 

634,450

 

Net change in non-cash operating working capital

 

 

33,661

 

 

 

16,337

 

Cash generated from operating activities

 

 

737,523

 

 

 

650,787

 

Interest paid

 

 

(50,366

)

 

 

(65,075

)

Income tax paid

 

 

(73,256

)

 

 

(85,216

)

Settlement of derivative contract

 

 

(3,039

)

 

 

-

 

Net cash from continuing operating activities

 

 

610,862

 

 

 

500,496

 

Net cash used in discontinued operating activities

 

 

-

 

 

 

(12,022

)

Net cash from operating activities

 

 

610,862

 

 

 

488,474

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(142,710

)

 

 

(261,295

)

Proceeds from sale of property and equipment

 

 

52,116

 

 

 

71,754

 

Proceeds from sale of assets held for sale

 

 

24,480

 

 

 

39,146

 

Purchases of intangible assets

 

 

(1,665

)

 

 

(3,636

)

Proceeds from sale of business

 

 

2,351

 

 

 

-

 

Business combinations, net of cash acquired

 

 

(327,650

)

 

 

(150,912

)

Proceeds from sale of intangible assets

 

 

-

 

 

 

201

 

Purchases of investments

 

 

(7,446

)

 

 

(600

)

Proceeds from sale of investments

 

 

-

 

 

 

1,814

 

Proceeds from collection of promissory notes

 

 

18,892

 

 

 

-

 

Others

 

 

3,151

 

 

 

(329

)

Net cash used in continuing investing activities

 

 

(378,481

)

 

 

(303,857

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Decrease in bank indebtedness

 

 

(2,231

)

 

 

(6,083

)

Proceeds from long-term debt

 

 

33,175

 

 

 

328,045

 

Repayment of long-term debt

 

 

(191,221

)

 

 

(103,247

)

Net decrease in revolving facility

 

 

(326,201

)

 

 

(88,229

)

Repayment of lease liabilities

 

 

(82,587

)

 

 

(75,072

)

Increase (decrease) in other financial liabilities

 

 

4,738

 

 

 

(1,556

)

Dividends paid

 

 

(67,604

)

 

 

(60,478

)

Repurchase of own shares

 

 

(38,021

)

 

 

(192,455

)

Proceeds from the issuance of common shares, net of expenses

 

 

425,350

 

 

 

-

 

Proceeds from exercise of stock options

 

 

21,361

 

 

 

16,347

 

Repurchase of own shares for restricted share unit settlement

 

 

(4,843

)

 

 

(1,889

)

Net cash used in continuing financing activities

 

 

(228,084

)

 

 

(184,617

)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

4,297

 

 

 

-

 

Cash and cash equivalents, beginning of year

 

 

-

 

 

 

-

 

Cash and cash equivalents, end of year

 

 

4,297

 

 

 

-

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

 

 

 

 

 

 

 

">

SEGMENT INFORMATION

Geographical information (Unaudited)

Revenue is attributed to geographical locations based on the origin of service’s location.

Total revenue

 

Package

 

 

Less-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and

 

 

Than-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Courier

 

 

Truckload

 

 

Truckload

 

 

Logistics

 

 

Eliminations

 

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

529,155

 

 

 

517,199

 

 

 

725,347

 

 

 

239,413

 

 

 

(26,019

)

 

 

1,985,095

 

United States

 

 

-

 

 

 

72,036

 

 

 

1,023,012

 

 

 

686,811

 

 

 

(4,726

)

 

 

1,777,133

 

Mexico

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,906

 

 

 

-

 

 

 

18,906

 

Total

 

 

529,155

 

 

 

589,235

 

 

 

1,748,359

 

 

 

945,130

 

 

 

(30,745

)

 

 

3,781,134

 

2019*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

539,610

 

 

 

607,086

 

 

 

799,396

 

 

 

216,232

 

 

 

(28,352

)

 

 

2,133,972

 

United States

 

 

-

 

 

 

120,162

 

 

 

1,092,159

 

 

 

542,911

 

 

 

(1,349

)

 

 

1,753,883

 

Mexico

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,690

 

 

 

-

 

 

 

15,690

 

Total

 

 

539,610

 

 

 

727,248

 

 

 

1,891,555

 

 

 

774,833

 

 

 

(29,701

)

 

 

3,903,545

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

 

Package and Courier

(unaudited)

 

Three months ended December 31

 

 

Years ended December 31

 

(in thousands of U.S. dollars)

 

2020

 

 

%

 

 

2019*

 

 

%

 

 

2020

 

 

%

 

 

2019*

 

 

%

 

Total revenue

 

 

167,555

 

 

 

 

 

 

 

145,018

 

 

 

 

 

 

 

529,155

 

 

 

 

 

 

 

539,610

 

 

 

 

 

Fuel surcharge

 

 

(13,461

)

 

 

 

 

 

 

(17,717

)

 

 

 

 

 

 

(47,665

)

 

 

 

 

 

 

(65,944

)

 

 

 

 

Revenue

 

 

154,094

 

 

 

100.0

%

 

 

127,301

 

 

 

100.0

%

 

 

481,490

 

 

 

100.0

%

 

 

473,666

 

 

 

100.0

%

Materials and services expenses (net of fuel

   surcharge)

 

 

72,115

 

 

 

46.8

%

 

 

55,737

 

 

 

43.8

%

 

 

220,741

 

 

 

45.8

%

 

 

203,441

 

 

 

43.0

%

Personnel expenses

 

 

39,821

 

 

 

25.8

%

 

 

35,222

 

 

 

27.7

%

 

 

133,552

 

 

 

27.7

%

 

 

138,125

 

 

 

29.2

%

Other operating expenses

 

 

6,234

 

 

 

4.0

%

 

 

7,015

 

 

 

5.5

%

 

 

23,145

 

 

 

4.8

%

 

 

25,973

 

 

 

5.5

%

Depreciation of property and equipment

 

 

3,168

 

 

 

2.1

%

 

 

2,606

 

 

 

2.0

%

 

 

11,539

 

 

 

2.4

%

 

 

10,046

 

 

 

2.1

%

Depreciation of right-of-use assets

 

 

3,210

 

 

 

2.1

%

 

 

3,713

 

 

 

2.9

%

 

 

12,871

 

 

 

2.7

%

 

 

13,956

 

 

 

2.9

%

Amortization of intangible assets

 

 

248

 

 

 

0.2

%

 

 

234

 

 

 

0.2

%

 

 

947

 

 

 

0.2

%

 

 

891

 

 

 

0.2

%

(Gain) loss on sale of rolling stock and equipment

 

 

(10

)

 

 

0.0

%

 

 

47

 

 

 

0.0

%

 

 

43

 

 

 

0.0

%

 

 

(135

)

 

 

-0.0

%

Gain on derecognition of right-of-use assets

 

 

-

 

 

 

0.0

%

 

 

(15

)

 

 

-0.0

%

 

 

(10

)

 

 

-0.0

%

 

 

(16

)

 

 

-0.0

%

(Gain) loss on sale of land and buildings and assets

   held for sale

 

 

(93

)

 

 

(0.1

)%

 

 

62

 

 

 

0.0

%

 

 

(91

)

 

 

-0.0

%

 

 

(843

)

 

 

-0.2

%

Operating income

 

 

29,401

 

 

 

19.1

%

 

 

22,680

 

 

 

17.8

%

 

 

78,753

 

 

 

16.4

%

 

 

82,228

 

 

 

17.4

%

Adjusted EBITDA

 

 

35,934

 

 

 

23.3

%

 

 

29,295

 

 

 

23.0

%

 

 

104,019

 

 

 

21.6

%

 

 

106,278

 

 

 

22.4

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Operational data

 

Three months ended December 31

 

 

Years ended December 31

 

(unaudited)

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

Revenue per pound (including fuel)

 

$

0.40

 

 

$

0.36

 

 

$

0.04

 

 

 

11.1

%

 

$

0.36

 

 

$

0.35

 

 

$

0.01

 

 

 

2.9

%

Revenue per pound (excluding fuel)

 

$

0.36

 

 

$

0.31

 

 

$

0.05

 

 

 

16.1

%

 

$

0.33

 

 

$

0.31

 

 

$

0.02

 

 

 

6.5

%

Revenue per shipment (including fuel)

 

$

6.40

 

 

$

6.52

 

 

$

(0.12

)

 

 

-1.8

%

 

$

6.24

 

 

$

6.29

 

 

$

(0.05

)

 

 

-0.8

%

Tonnage (in thousands of metric tons)

 

 

192

 

 

 

185

 

 

 

7

 

 

 

3.8

%

 

 

658

 

 

 

695

 

 

 

(37

)

 

 

-5.3

%

Shipments (in thousands)

 

 

26,185

 

 

 

22,244

 

 

 

3,941

 

 

 

17.7

%

 

 

84,854

 

 

 

85,743

 

 

 

(889

)

 

 

-1.0

%

Average weight per shipment (in lbs.)

 

 

16.16

 

 

 

18.33

 

 

 

(2.17

)

 

 

-11.8

%

 

 

17.09

 

 

 

17.86

 

 

 

(0.77

)

 

 

-4.3

%

Vehicle count, average

 

 

1,008

 

 

 

972

 

 

 

36

 

 

 

3.7

%

 

 

1,023

 

 

 

981

 

 

 

42

 

 

 

4.3

%

Weekly revenue per vehicle (incl. fuel, in thousands of dollars)

 

$

12.79

 

 

$

11.48

 

 

$

1.31

 

 

 

11.4

%

 

$

9.95

 

 

$

10.58

 

 

$

(0.63

)

 

 

-6.0

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

 

7


Earnings Press Release

Less-Than-Truckload

(unaudited)

 

Three months ended December 31

 

 

Years ended December 31

 

(in thousands of U.S. dollars)

 

2020

 

 

%

 

 

2019*

 

 

%

 

 

2020

 

 

%

 

 

2019*

 

 

%

 

Total revenue

 

 

157,628

 

 

 

 

 

 

 

175,319

 

 

 

 

 

 

 

589,235

 

 

 

 

 

 

 

727,249

 

 

 

 

 

Fuel surcharge

 

 

(16,547

)

 

 

 

 

 

 

(24,016

)

 

 

 

 

 

 

(66,384

)

 

 

 

 

 

 

(100,030

)

 

 

 

 

Revenue

 

 

141,081

 

 

 

100.0

%

 

 

151,303

 

 

 

100.0

%

 

 

522,851

 

 

 

100.0

%

 

 

627,219

 

 

 

100.0

%

Materials and services expenses (net of fuel

   surcharge)

 

 

67,140

 

 

 

47.6

%

 

 

75,026

 

 

 

49.6

%

 

 

252,334

 

 

 

48.3

%

 

 

315,648

 

 

 

50.3

%

Personnel expenses

 

 

33,338

 

 

 

23.6

%

 

 

38,202

 

 

 

25.2

%

 

 

116,257

 

 

 

22.2

%

 

 

159,820

 

 

 

25.5

%

Other operating expenses

 

 

3,587

 

 

 

2.5

%

 

 

7,788

 

 

 

5.1

%

 

 

16,593

 

 

 

3.2

%

 

 

26,720

 

 

 

4.3

%

Depreciation of property and equipment

 

 

4,886

 

 

 

3.5

%

 

 

5,148

 

 

 

3.4

%

 

 

19,407

 

 

 

3.7

%

 

 

19,736

 

 

 

3.1

%

Depreciation of right-of-use assets

 

 

5,546

 

 

 

3.9

%

 

 

6,159

 

 

 

4.1

%

 

 

22,555

 

 

 

4.3

%

 

 

24,825

 

 

 

4.0

%

Amortization of intangible assets

 

 

2,179

 

 

 

1.5

%

 

 

2,129

 

 

 

1.4

%

 

 

8,392

 

 

 

1.6

%

 

 

8,359

 

 

 

1.3

%

Gain on sale of rolling stock and equipment

 

 

(62

)

 

 

-0.0

%

 

 

(147

)

 

 

-0.1

%

 

 

(519

)

 

 

-0.1

%

 

 

(510

)

 

 

-0.1

%

Gain on derecognition of right-of-use assets

 

 

(6

)

 

 

-0.0

%

 

 

(835

)

 

 

-0.6

%

 

 

(175

)

 

 

-0.0

%

 

 

(1,100

)

 

 

-0.2

%

Loss (gain) on sale of land and buildings and assets

   held for sale

 

 

9

 

 

 

0.0

%

 

 

(1,478

)

 

 

-1.0

%

 

 

57

 

 

 

0.0

%

 

 

(8,509

)

 

 

-1.4

%

Operating income

 

 

24,464

 

 

 

17.3

%

 

 

19,311

 

 

 

12.8

%

 

 

87,950

 

 

 

16.8

%

 

 

82,230

 

 

 

13.1

%

Adjusted EBITDA

 

 

37,084

 

 

 

26.3

%

 

 

31,269

 

 

 

20.7

%

 

 

138,361

 

 

 

26.5

%

 

 

126,641

 

 

 

20.2

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Operational data

 

Three months ended December 31

 

 

Years ended December 31

 

(unaudited)

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

Adjusted operating ratio

 

 

82.7

%

 

 

88.2

%

 

 

 

 

 

 

 

 

 

 

83.2

%

 

 

88.2

%

 

 

 

 

 

 

 

 

Revenue per hundredweight (excluding fuel)

 

$

10.15

 

 

$

9.99

 

 

 

0.16

 

 

 

1.6

%

 

$

9.77

 

 

$

10.01

 

 

$

(0.24

)

 

 

-2.4

%

Revenue per shipment (including fuel)

 

$

241.02

 

 

$

253.35

 

 

$

(12.33

)

 

 

-4.9

%

 

$

240.11

 

 

$

242.98

 

 

$

(2.87

)

 

 

-1.2

%

Tonnage (in thousands of tons)

 

 

695

 

 

 

757

 

 

 

(62

)

 

 

-8.2

%

 

 

2,675

 

 

 

3,132

 

 

 

(457

)

 

 

-14.6

%

Shipments (in thousands)

 

 

654

 

 

 

692

 

 

 

(38

)

 

 

-5.5

%

 

 

2,454

 

 

 

2,993

 

 

 

(539

)

 

 

-18.0

%

Average weight per shipment (in lbs)

 

 

2,125

 

 

 

2,188

 

 

 

(63

)

 

 

-2.9

%

 

 

2,180

 

 

 

2,093

 

 

 

87

 

 

 

4.2

%

Average length of haul (in miles)

 

 

811

 

 

 

839

 

 

 

(28

)

 

 

-3.3

%

 

 

818

 

 

 

830

 

 

 

(12

)

 

 

-1.4

%

Vehicle count, average

 

 

902

 

 

 

1,016

 

 

 

(114

)

 

 

-11.2

%

 

 

918

 

 

 

1,024

 

 

 

(106

)

 

 

-10.4

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Truckload

(unaudited)

 

Three months ended December 31

 

 

Years ended December 31

 

(in thousands of U.S. dollars)

 

2020

 

 

%

 

 

2019*

 

 

%

 

 

2020

 

 

%

 

 

2019*

 

 

%

 

Total revenue

 

 

477,262

 

 

 

 

 

 

 

469,798

 

 

 

 

 

 

 

1,748,359

 

 

 

 

 

 

 

1,891,554

 

 

 

 

 

Fuel surcharge

 

 

(39,127

)

 

 

 

 

 

 

(57,038

)

 

 

 

 

 

 

(163,522

)

 

 

 

 

 

 

(233,757

)

 

 

 

 

Revenue

 

 

438,135

 

 

 

100.0

%

 

 

412,760

 

 

 

100.0

%

 

 

1,584,837

 

 

 

100.0

%

 

 

1,657,797

 

 

 

100.0

%

Materials and services expenses (net of fuel

   surcharge)

 

 

188,660

 

 

 

43.1

%

 

 

178,936

 

 

 

43.4

%

 

 

654,220

 

 

 

41.3

%

 

 

707,028

 

 

 

42.6

%

Personnel expenses

 

 

135,911

 

 

 

31.0

%

 

 

134,572

 

 

 

32.6

%

 

 

503,242

 

 

 

31.8

%

 

 

549,723

 

 

 

33.2

%

Other operating expenses

 

 

14,323

 

 

 

3.3

%

 

 

12,534

 

 

 

3.0

%

 

 

52,337

 

 

 

3.3

%

 

 

53,472

 

 

 

3.2

%

Depreciation of property and equipment

 

 

34,986

 

 

 

8.0

%

 

 

36,218

 

 

 

8.8

%

 

 

136,859

 

 

 

8.6

%

 

 

136,139

 

 

 

8.2

%

Depreciation of right-of-use assets

 

 

10,055

 

 

 

2.3

%

 

 

7,091

 

 

 

1.7

%

 

 

32,229

 

 

 

2.0

%

 

 

24,263

 

 

 

1.5

%

Amortization of intangible assets

 

 

5,171

 

 

 

1.2

%

 

 

5,678

 

 

 

1.4

%

 

 

19,891

 

 

 

1.3

%

 

 

22,415

 

 

 

1.4

%

Gain on sale of business

 

 

(306

)

 

 

-0.1

%

 

 

 

 

 

0.0

%

 

 

(306

)

 

 

-0.0

%

 

 

 

 

 

0.0

%

Gain on sale of rolling stock and equipment

 

 

(2,129

)

 

 

-0.5

%

 

 

(3,603

)

 

 

-0.9

%

 

 

(7,785

)

 

 

-0.5

%

 

 

(14,698

)

 

 

-0.9

%

Gain on derecognition of right-of-use assets

 

 

(13

)

 

 

-0.0

%

 

 

(126

)

 

 

-0.0

%

 

 

(332

)

 

 

-0.0

%

 

 

(369

)

 

 

-0.0

%

Gain on sale of land and buildings and assets held for

   sale

 

 

(2,127

)

 

 

-0.5

%

 

 

(4,957

)

 

 

-1.2

%

 

 

(11,864

)

 

 

-0.7

%

 

 

(12,348

)

 

 

-0.7

%

Operating income

 

 

53,604

 

 

 

12.2

%

 

 

46,417

 

 

 

11.2

%

 

 

206,346

 

 

 

13.0

%

 

 

192,172

 

 

 

11.6

%

Adjusted EBITDA

 

 

101,383

 

 

 

23.1

%

 

 

90,447

 

 

 

21.9

%

 

 

383,155

 

 

 

24.2

%

 

 

362,641

 

 

 

21.9

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

 

8


Earnings Press Release

 

 

 

 

Operational data (unaudited)

 

Three months ended December 31

 

 

Years ended December 31

 

(in thousands of U.S. dollars)

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

 

2020

 

 

2019*

 

 

Variance

 

 

%

 

U.S. based Conventional TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

161,476

 

 

 

156,678

 

 

 

4,798

 

 

 

3.1

%

 

 

632,590

 

 

 

646,782

 

 

 

(14,192

)

 

 

-2.2

%

Adjusted operating ratio

 

 

91.5

%

 

 

92.4

%

 

 

 

 

 

 

 

 

 

 

92.0

%

 

 

91.5

%

 

 

 

 

 

 

 

 

Total mileage (in thousands)

 

 

86,427

 

 

 

84,291

 

 

 

2,136

 

 

 

2.5

%

 

 

349,349

 

 

 

351,490

 

 

 

(2,141

)

 

 

-0.6

%

Tractor count, average

 

 

2,932

 

 

 

2,929

 

 

 

3

 

 

 

0.1

%

 

 

2,949

 

 

 

2,960

 

 

 

(11

)

 

 

-0.4

%

Trailer count, average

 

 

11,005

 

 

 

11,007

 

 

 

(2

)

 

 

-0.0

%

 

 

10,938

 

 

 

11,008

 

 

 

(70

)

 

 

-0.6

%

Tractor age

 

 

2.2

 

 

 

1.8

 

 

 

0.4

 

 

 

22.2

%

 

 

2.2

 

 

 

1.8

 

 

 

0.4

 

 

 

22.2

%

Trailer age

 

 

6.6

 

 

 

6.5

 

 

 

0.1

 

 

 

1.5

%

 

 

6.6

 

 

 

6.5

 

 

 

0.1

 

 

 

1.5

%

Number of owner operators, average

 

 

560

 

 

 

424

 

 

 

136

 

 

 

32.1

%

 

 

509

 

 

 

400

 

 

 

109

 

 

 

27.3

%

Canadian based Conventional TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

58,497

 

 

 

56,668

 

 

 

1,829

 

 

 

3.2

%

 

 

206,418

 

 

 

226,816

 

 

 

(20,398

)

 

 

-9.0

%

Adjusted operating ratio

 

 

85.2

%

 

 

85.9

%

 

 

 

 

 

 

 

 

 

 

86.3

%

 

 

85.6

%

 

 

 

 

 

 

 

 

Total mileage (in thousands)

 

 

23,095

 

 

 

24,236

 

 

 

(1,141

)

 

 

-4.7

%

 

 

89,212

 

 

 

98,943

 

 

 

(9,731

)

 

 

-9.8

%

Tractor count, average

 

 

623

 

 

 

641

 

 

 

(18

)

 

 

-2.8

%

 

 

606

 

 

 

684

 

 

 

(78

)

 

 

-11.4

%

Trailer count, average

 

 

2,809

 

 

 

2,826

 

 

 

(17

)

 

 

-0.6

%

 

 

2,796

 

 

 

2,884

 

 

 

(88

)

 

 

-3.1

%

Tractor age

 

 

2.5

 

 

 

2.3

 

 

 

0.2

 

 

 

8.7

%

 

 

2.5

 

 

 

2.3

 

 

 

0.2

 

 

 

8.7

%

Trailer age

 

 

5.9

 

 

 

5.4

 

 

 

0.5

 

 

 

9.3

%

 

 

5.9

 

 

 

5.4

 

 

 

0.5

 

 

 

9.3

%

Number of owner operators, average

 

 

314

 

 

 

317

 

 

 

(3

)

 

 

-0.9

%

 

 

302

 

 

 

333

 

 

 

(31

)

 

 

-9.3

%

Specialized TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

219,093

 

 

 

200,452

 

 

 

18,641

 

 

 

9.3

%

 

 

749,655

 

 

 

791,087

 

 

 

(41,432

)

 

 

-5.2

%

Adjusted operating ratio

 

 

86.8

%

 

 

89.3

%

 

 

 

 

 

 

 

 

 

 

84.6

%

 

 

88.3

%

 

 

 

 

 

 

 

 

Tractor count, average

 

 

2,314

 

 

 

2,189

 

 

 

125

 

 

 

5.7

%

 

 

2,096

 

 

 

2,099

 

 

 

(3

)

 

 

-0.1

%

Trailer count, average

 

 

6,619

 

 

 

6,142

 

 

 

477

 

 

 

7.8

%

 

 

6,251

 

 

 

6,121

 

 

 

130

 

 

 

2.1

%

Tractor age

 

 

4.0

 

 

 

4.0

 

 

 

0.0

 

 

 

0.0

%

 

 

4.0

 

 

 

4.0

 

 

 

0.0

 

 

 

0.0

%

Trailer age

 

 

12.9

 

 

 

11.7

 

 

 

1.2

 

 

 

10.3

%

 

 

12.9

 

 

 

11.7

 

 

 

1.2

 

 

 

10.3

%

Number of owner operators, average

 

 

1,132

 

 

 

1,224

 

 

 

(92

)

 

 

-7.5

%

 

 

1,115

 

 

 

1,191

 

 

 

(76

)

 

 

-6.4

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

 

Logistics

(unaudited)

 

Three months ended December 31

 

 

Years ended December 31

 

(in thousands of U.S. dollars)

 

2020

 

 

%

 

 

2019*

 

 

%

 

 

2020

 

 

%

 

 

2019*

 

 

%

 

Total revenue

 

 

327,689

 

 

 

 

 

 

 

206,268

 

 

 

 

 

 

 

945,130

 

 

 

 

 

 

 

774,833

 

 

 

 

 

Fuel surcharge

 

 

(5,370

)

 

 

 

 

 

 

(7,307

)

 

 

 

 

 

 

(21,674

)

 

 

 

 

 

 

(29,511

)

 

 

 

 

Revenue

 

 

322,319

 

 

 

100.0

%

 

 

198,961

 

 

 

100.0

%

 

 

923,456

 

 

 

100.0

%

 

 

745,322

 

 

 

100.0

%

Materials and services expenses (net of fuel

   surcharge)

 

 

241,798

 

 

 

75.0

%

 

 

140,019

 

 

 

70.4

%

 

 

668,225

 

 

 

72.4

%

 

 

524,098

 

 

 

70.3

%

Personnel expenses

 

 

24,381

 

 

 

7.6

%

 

 

25,427

 

 

 

12.8

%

 

 

93,579

 

 

 

10.1

%

 

 

96,593

 

 

 

13.0

%

Other operating expenses

 

 

19,983

 

 

 

6.2

%

 

 

11,745

 

 

 

5.9

%

 

 

48,012

 

 

 

5.2

%

 

 

41,865

 

 

 

5.6

%

Depreciation of property and equipment

 

 

596

 

 

 

0.2

%

 

 

640

 

 

 

0.3

%

 

 

2,336

 

 

 

0.3

%

 

 

2,147

 

 

 

0.3

%

Depreciation of right-of-use assets

 

 

3,138

 

 

 

1.0

%

 

 

2,520

 

 

 

1.3

%

 

 

13,204

 

 

 

1.4

%

 

 

14,148

 

 

 

1.9

%

Amortization of intangible assets

 

 

5,608

 

 

 

1.7

%

 

 

4,557

 

 

 

2.3

%

 

 

17,889

 

 

 

1.9

%

 

 

17,302

 

 

 

2.3

%

Bargain purchase gain

 

 

 

 

 

 

 

 

 

 

 

0.0

%

 

 

(4,008

)

 

 

-0.4

%

 

 

(8,014

)

 

 

-1.1

%

(Gain) loss on sale of rolling stock and equipment

 

 

368

 

 

 

0.1

%

 

 

(5

)

 

 

-0.0

%

 

 

373

 

 

 

0.0

%

 

 

(43

)

 

 

-0.0

%

Gain on derecognition of right-of-use assets

 

 

(20

)

 

 

-0.0

%

 

 

(158

)

 

 

-0.1

%

 

 

(618

)

 

 

-0.1

%

 

 

(221

)

 

 

-0.0

%

Loss on sale of land and buildings and assets

   held for sale

 

 

5

 

 

 

0.0

%

 

 

 

 

 

0.0

%

 

 

5

 

 

 

0.0

%

 

 

 

 

 

0.0

%

Operating income

 

 

26,462

 

 

 

8.2

%

 

 

14,216

 

 

 

7.1

%

 

 

84,459

 

 

 

9.1

%

 

 

57,447

 

 

 

7.7

%

Adjusted EBITDA

 

 

35,809

 

 

 

11.1

%

 

 

21,933

 

 

 

11.0

%

 

 

113,885

 

 

 

12.3

%

 

 

83,030

 

 

 

11.1

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

 

NON-IFRS FINANCIAL MEASURES

This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of IFRS and non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided below.

9


Earnings Press Release

Adjusted net income: Net income or loss excluding amortization of intangible assets related to business acquisitions, net change in the fair value and accretion expense of contingent considerations, net change in the fair value of derivatives, net foreign exchange gain or loss, impairment of intangible assets, bargain purchase gain, gain or loss on sale of land and buildings, assets held for sale and sale of business, and loss from discontinued operations, net of tax and U.S. Tax Reform. In presenting an adjusted net income and adjusted EPS, the Company’s intent is to help provide an understanding of what would have been the net income and earnings per share in a context of significant business combinations and excluding specific impacts and to reflect earnings from a strictly operating perspective. The amortization of intangible assets related to business acquisitions comprises amortization expense of customer relationships, trademarks and non-compete agreements accounted for in business combinations and the income tax effects related to this amortization. Management also believes, in excluding amortization of intangible assets related to business acquisitions, it provides more information on the amortization of intangible asset expense portion, net of tax, that will not have to be replaced to preserve the Company’s ability to generate similar future cash flows. The Company excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Excluding these items does not imply they are necessarily non-recurring.

Adjusted net income reconciliation:

(unaudited)

(in thousands of U.S.dollars, except per share data)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Net income

 

 

86,328

 

 

 

56,680

 

 

 

275,675

 

 

 

233,677

 

Amortization of intangible assets related to business acquisitions, net of

   tax

 

 

10,221

 

 

 

9,263

 

 

 

35,286

 

 

 

35,756

 

Net change in fair value and accretion expense of contingent

   considerations, net of tax

 

 

104

 

 

 

40

 

 

 

165

 

 

 

146

 

Net change in fair value of derivatives, net of tax

 

 

(373

)

 

 

 

 

 

(373

)

 

 

 

Net foreign exchange (gain) loss, net of tax

 

 

227

 

 

 

(328

)

 

 

(895

)

 

 

161

 

Gain on sale of business, net of tax

 

 

(230

)

 

 

 

 

 

(230

)

 

 

 

Bargain purchase gain

 

 

 

 

 

 

 

 

(4,008

)

 

 

(8,014

)

Gain on sale of land and buildings and assets held for sale, net of tax

 

 

(1,848

)

 

 

(6,872

)

 

 

(10,308

)

 

 

(18,691

)

Net loss from discontinued operations

 

 

 

 

 

1,302

 

 

 

 

 

 

10,548

 

U.S. Tax Reform

 

 

(1,072

)

 

 

 

 

 

4,451

 

 

 

 

Adjusted net income

 

 

93,357

 

 

 

60,085

 

 

 

299,763

 

 

 

253,583

 

Adjusted EPS – basic

 

 

1.00

 

 

 

0.74

 

 

 

3.36

 

 

 

3.04

 

Adjusted EPS – diluted

 

 

0.98

 

 

 

0.72

 

 

 

3.30

 

 

 

2.97

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Adjusted earnings per share (adjusted “EPS”) - basic: Adjusted net income divided by the weighted average number of common shares.

Adjusted EPS - diluted: Adjusted net income divided by the weighted average number of diluted common shares.

Adjusted EBITDA: Net income or loss from continuing operations before finance income and costs, income tax expense, depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of land and buildings, assets held for sale and sale of business.

Segmented adjusted EBITDA refers to operating income (loss) from continuing operations before depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of business, land and buildings, and assets held for sale. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.

10


Earnings Press Release

Consolidated adjusted EBITDA reconciliation:

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Net income from continuing operations

 

 

86,328

 

 

 

57,955

 

 

 

275,675

 

 

 

244,225

 

Net finance costs

 

 

15,382

 

 

 

15,552

 

 

 

53,910

 

 

 

62,107

 

Income tax expense

 

 

15,412

 

 

 

19,277

 

 

 

86,982

 

 

 

76,536

 

Depreciation of property and equipment

 

 

43,753

 

 

 

44,721

 

 

 

170,520

 

 

 

168,720

 

Depreciation of right-of-use assets

 

 

21,618

 

 

 

19,508

 

 

 

80,496

 

 

 

77,326

 

Amortization of intangible assets

 

 

13,557

 

 

 

12,757

 

 

 

48,213

 

 

 

49,701

 

Gain on sale of business

 

 

(306

)

 

 

 

 

 

(306

)

 

 

 

Bargain purchase gain

 

 

 

 

 

 

 

 

(4,008

)

 

 

(8,014

)

(Gain) loss on sale of land and buildings

 

 

5

 

 

 

(8

)

 

 

6

 

 

 

(9

)

Gain on sale of assets held for sale

 

 

(2,211

)

 

 

(6,365

)

 

 

(11,899

)

 

 

(21,571

)

Adjusted EBITDA

 

 

193,538

 

 

 

163,397

 

 

 

699,589

 

 

 

649,021

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Segmented adjusted EBITDA from continuing operations reconciliation:

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Package and Courier

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

29,401

 

 

 

22,680

 

 

 

78,753

 

 

 

82,228

 

Depreciation and amortization

 

 

6,626

 

 

 

6,553

 

 

 

25,357

 

 

 

24,893

 

Gain on sale of land and buildings

 

 

(1

)

 

 

 

 

 

 

 

 

 

(Gain) loss on sale of assets held for sale

 

 

(92

)

 

 

62

 

 

 

(91

)

 

 

(843

)

Adjusted EBITDA

 

 

35,934

 

 

 

29,295

 

 

 

104,019

 

 

 

106,278

 

Less-Than-Truckload

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

24,464

 

 

 

19,311

 

 

 

87,950

 

 

 

82,230

 

Depreciation and amortization

 

 

12,611

 

 

 

13,436

 

 

 

50,354

 

 

 

52,920

 

Loss on sale of land and buildings

 

 

1

 

 

 

 

 

 

1

 

 

 

 

(Gain) loss on sale of assets held for sale

 

 

8

 

 

 

(1,478

)

 

 

56

 

 

 

(8,509

)

Adjusted EBITDA

 

 

37,084

 

 

 

31,269

 

 

 

138,361

 

 

 

126,641

 

Truckload

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

53,604

 

 

 

46,417

 

 

 

206,346

 

 

 

192,172

 

Depreciation and amortization

 

 

50,212

 

 

 

48,987

 

 

 

188,979

 

 

 

182,817

 

Gain on sale of business

 

 

(306

)

 

 

 

 

 

(306

)

 

 

 

Gain on sale of land and buildings

 

 

 

 

 

(8

)

 

 

 

 

 

(9

)

Gain on sale of assets held for sale

 

 

(2,127

)

 

 

(4,949

)

 

 

(11,864

)

 

 

(12,339

)

Adjusted EBITDA

 

 

101,383

 

 

 

90,447

 

 

 

383,155

 

 

 

362,641

 

Logistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

26,462

 

 

 

14,216

 

 

 

84,459

 

 

 

57,447

 

Depreciation and amortization

 

 

9,342

 

 

 

7,717

 

 

 

33,429

 

 

 

33,597

 

Bargain purchase gain

 

 

 

 

 

 

 

 

(4,008

)

 

 

(8,014

)

Loss on sale of land and buildings

 

 

5

 

 

 

 

 

 

5

 

 

 

 

Adjusted EBITDA

 

 

35,809

 

 

 

21,933

 

 

 

113,885

 

 

 

83,030

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(16,809

)

 

 

(9,840

)

 

 

(40,941

)

 

 

(31,209

)

Depreciation and amortization

 

 

137

 

 

 

293

 

 

 

1,110

 

 

 

1,520

 

Loss on sale of assets held for sale

 

 

 

 

 

 

 

 

 

 

 

120

 

Adjusted EBITDA

 

 

(16,672

)

 

 

(9,547

)

 

 

(39,831

)

 

 

(29,569

)

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue before fuel surcharge.

Operating margin from continuing operations is calculated as operating income (loss) from continuing operations as a percentage of revenue before fuel surcharge.

Adjusted operating ratio: Operating expenses from continuing operations before impairment of intangible assets, bargain purchase gain, and gain or loss on sale of land and buildings, assets held for sale and sale of business (“Adjusted operating expenses”), net of fuel surcharge revenue, divided by revenue before fuel surcharge. Although the adjusted operating ratio is not a recognized financial measure defined by IFRS, it is a widely recognized measure in the transportation industry, which the Company believes provides a comparable benchmark for evaluating the Company’s performance. Also, to facilitate the comparison of business level activity and operating costs between periods, the Company compares the revenue before fuel surcharge (“revenue”) and reallocates the fuel surcharge revenue to materials and services expenses within operating expenses.

11


Earnings Press Release

Consolidated adjusted operating ratio from continuing operations reconciliation:

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Operating expenses

 

 

1,004,884

 

 

 

896,248

 

 

 

3,364,567

 

 

 

3,520,677

 

Gain on sale of business

 

 

306

 

 

 

 

 

 

306

 

 

 

 

Bargain purchase gain

 

 

 

 

 

 

 

 

4,008

 

 

 

8,014

 

Gain (loss) on sale of land and building

 

 

(5

)

 

 

8

 

 

 

(6

)

 

 

9

 

Gain on sale of assets held for sale

 

 

2,211

 

 

 

6,365

 

 

 

11,899

 

 

 

21,571

 

Adjusted operating expenses

 

 

1,007,396

 

 

 

902,621

 

 

 

3,380,774

 

 

 

3,550,271

 

Fuel surcharge revenue

 

 

(73,859

)

 

 

(105,315

)

 

 

(296,831

)

 

 

(425,969

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

933,537

 

 

 

797,306

 

 

 

3,083,943

 

 

 

3,124,302

 

Revenue before fuel surcharge

 

 

1,048,147

 

 

 

883,717

 

 

 

3,484,303

 

 

 

3,477,576

 

Adjusted operating ratio

 

 

89.1

%

 

 

90.2

%

 

 

88.5

%

 

 

89.8

%

*Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

 

 

Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations:

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Less-Than-Truckload

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

157,628

 

 

 

175,319

 

 

 

589,235

 

 

 

727,249

 

Total operating expenses

 

 

133,164

 

 

 

156,008

 

 

 

501,285

 

 

 

645,019

 

Operating income

 

 

24,464

 

 

 

19,311

 

 

 

87,950

 

 

 

82,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

133,164

 

 

 

156,008

 

 

 

501,285

 

 

 

645,019

 

Gain (loss) on sale of land and buildings and assets held for sale

 

 

(9

)

 

 

1,478

 

 

 

(57

)

 

 

8,509

 

Adjusted operating expenses

 

 

133,155

 

 

 

157,486

 

 

 

501,228

 

 

 

653,528

 

Fuel surcharge revenue

 

 

(16,547

)

 

 

(24,016

)

 

 

(66,384

)

 

 

(100,030

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

116,608

 

 

 

133,470

 

 

 

434,844

 

 

 

553,498

 

Revenue before fuel surcharge

 

 

141,081

 

 

 

151,303

 

 

 

522,851

 

 

 

627,219

 

Adjusted operating ratio

 

 

82.7

%

 

 

88.2

%

 

 

83.2

%

 

 

88.2

%

Truckload

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

477,262

 

 

 

469,798

 

 

 

1,748,359

 

 

 

1,891,554

 

Total operating expenses

 

 

423,658

 

 

 

423,381

 

 

 

1,542,013

 

 

 

1,699,382

 

Operating income

 

 

53,604

 

 

 

46,417

 

 

 

206,346

 

 

 

192,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

423,658

 

 

 

423,381

 

 

 

1,542,013

 

 

 

1,699,382

 

Gain on sale of business

 

 

306

 

 

 

 

 

 

306

 

 

 

 

Gain on sale of land and buildings and assets held for sale

 

 

2,127

 

 

 

4,957

 

 

 

11,864

 

 

 

12,348

 

Adjusted operating expenses

 

 

426,091

 

 

 

428,338

 

 

 

1,554,183

 

 

 

1,711,730

 

Fuel surcharge revenue

 

 

(39,127

)

 

 

(57,038

)

 

 

(163,522

)

 

 

(233,757

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

386,964

 

 

 

371,300

 

 

 

1,390,661

 

 

 

1,477,973

 

Revenue before fuel surcharge

 

 

438,135

 

 

 

412,760

 

 

 

1,584,837

 

 

 

1,657,797

 

Adjusted operating ratio

 

 

88.3

%

 

 

90.0

%

 

 

87.7

%

 

 

89.2

%

Truckload - Revenue before fuel surcharge

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. based Conventional TL

 

 

161,476

 

 

 

156,678

 

 

 

632,590

 

 

 

646,782

 

Canadian based Conventional TL

 

 

58,497

 

 

 

56,668

 

 

 

206,418

 

 

 

226,816

 

Specialized TL

 

 

219,093

 

 

 

200,452

 

 

 

749,655

 

 

 

791,087

 

Eliminations

 

 

(931

)

 

 

(1,038

)

 

 

(3,826

)

 

 

(6,888

)

 

 

 

438,135

 

 

 

412,760

 

 

 

1,584,837

 

 

 

1,657,797

 

Truckload - Fuel surcharge revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. based Conventional TL

 

 

19,006

 

 

 

26,720

 

 

 

81,222

 

 

 

112,165

 

Canadian based Conventional TL

 

 

4,798

 

 

 

7,677

 

 

 

19,408

 

 

 

31,628

 

Specialized TL

 

 

15,244

 

 

 

22,686

 

 

 

63,018

 

 

 

90,650

 

Eliminations

 

 

79

 

 

 

(45

)

 

 

(126

)

 

 

(686

)

 

 

 

39,127

 

 

 

57,038

 

 

 

163,522

 

 

 

233,757

 

Truckload - Operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. based Conventional TL

 

 

13,722

 

 

 

11,931

 

 

 

51,857

 

 

 

55,055

 

Canadian based Conventional TL

 

 

8,673

 

 

 

8,001

 

 

 

28,337

 

 

 

32,610

 

Specialized TL

 

 

31,209

 

 

 

26,485

 

 

 

126,152

 

 

 

104,507

 

 

 

 

53,604

 

 

 

46,417

 

 

 

206,346

 

 

 

192,172

 


12


Earnings Press Release

Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations (continued):

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. based Conventional TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses**

 

 

166,760

 

 

 

171,467

 

 

 

661,955

 

 

 

703,892

 

Gain on sale of land and buildings and assets held for sale

 

 

 

 

 

 

 

 

1,103

 

 

 

 

Adjusted operating expenses

 

 

166,760

 

 

 

171,467

 

 

 

663,058

 

 

 

703,892

 

Fuel surcharge revenue

 

 

(19,006

)

 

 

(26,720

)

 

 

(81,222

)

 

 

(112,165

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

147,754

 

 

 

144,747

 

 

 

581,836

 

 

 

591,727

 

Revenue before fuel surcharge

 

 

161,476

 

 

 

156,678

 

 

 

632,590

 

 

 

646,782

 

Adjusted operating ratio

 

 

91.5

%

 

 

92.4

%

 

 

92.0

%

 

 

91.5

%

Canadian based Conventional TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses**

 

 

54,622

 

 

 

56,344

 

 

 

197,489

 

 

 

225,834

 

Gain on sale of land and buildings and assets held for sale

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Adjusted operating expenses

 

 

54,622

 

 

 

56,352

 

 

 

197,489

 

 

 

225,842

 

Fuel surcharge revenue

 

 

(4,798

)

 

 

(7,677

)

 

 

(19,408

)

 

 

(31,628

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

49,824

 

 

 

48,675

 

 

 

178,081

 

 

 

194,214

 

Revenue before fuel surcharge

 

 

58,497

 

 

 

56,668

 

 

 

206,418

 

 

 

226,816

 

Adjusted operating ratio

 

 

85.2

%

 

 

85.9

%

 

 

86.3

%

 

 

85.6

%

Specialized TL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses**

 

 

203,128

 

 

 

196,653

 

 

 

686,521

 

 

 

777,230

 

Gain on sale of business

 

 

306

 

 

 

 

 

 

306

 

 

 

 

Gain on sale of assets held for sale

 

 

2,127

 

 

 

4,949

 

 

 

10,761

 

 

 

12,340

 

Adjusted operating expenses

 

 

205,561

 

 

 

201,602

 

 

 

697,588

 

 

 

789,570

 

Fuel surcharge revenue

 

 

(15,244

)

 

 

(22,686

)

 

 

(63,018

)

 

 

(90,650

)

Adjusted operating expenses, net of fuel surcharge revenue

 

 

190,317

 

 

 

178,916

 

 

 

634,570

 

 

 

698,920

 

Revenue before fuel surcharge

 

 

219,093

 

 

 

200,452

 

 

 

749,655

 

 

 

791,087

 

Adjusted operating ratio

 

 

86.9

%

 

 

89.3

%

 

 

84.6

%

 

 

88.3

%

*Recasted for change in presentation currency from Canadian dollar to U.S. dollar

** Operating expenses excluding intra TL eliminations

 

Free cash flow conversion : Adjusted EBITDA less additions and proceeds from rolling stock and equipment, divided by the adjusted EBITDA.

 

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Net income from continuing operations

 

 

86,328

 

 

 

57,955

 

 

 

275,675

 

 

 

244,225

 

Net finance costs

 

 

15,382

 

 

 

15,552

 

 

 

53,910

 

 

 

62,107

 

Income tax expense

 

 

15,412

 

 

 

19,277

 

 

 

86,982

 

 

 

76,536

 

Depreciation of property and equipment

 

 

43,753

 

 

 

44,721

 

 

 

170,520

 

 

 

168,720

 

Depreciation of right-of-use assets

 

 

21,618

 

 

 

19,508

 

 

 

80,496

 

 

 

77,326

 

Amortization of intangible assets

 

 

13,557

 

 

 

12,757

 

 

 

48,213

 

 

 

49,701

 

Gain on sale of business

 

 

(306

)

 

 

 

 

 

(306

)

 

 

 

Bargain purchase gain

 

 

 

 

 

 

 

 

(4,008

)

 

 

(8,014

)

(Gain) loss on sale of land and buildings

 

 

5

 

 

 

(8

)

 

 

6

 

 

 

(9

)

Gain on sale of assets held for sale

 

 

(2,211

)

 

 

(6,365

)

 

 

(11,899

)

 

 

(21,571

)

Adjusted EBITDA

 

 

193,538

 

 

 

163,397

 

 

 

699,589

 

 

 

649,021

 

Additions to rolling stock and equipment

 

 

(55,355

)

 

 

(52,623

)

 

 

(123,483

)

 

 

(223,965

)

Proceeds from sale of rolling stock and equipment

 

 

24,144

 

 

 

20,654

 

 

 

52,719

 

 

 

71,365

 

Adjusted EBITDA net of net rolling stock and equipment

 

 

162,327

 

 

 

131,428

 

 

 

628,825

 

 

 

496,421

 

Free cash flow conversion

 

 

83.9

%

 

 

80.4

%

 

 

89.9

%

 

 

76.5

%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

Free cash flow from continuing operations: Net cash from continuing operating activities less additions to property and equipment plus proceeds from sale of property and equipment and assets held for sale. Management believes that this measure provides a benchmark to evaluate the performance eof the Company in regard to its ability to meet capital requirements.

 

13


Earnings Press Release

(unaudited)

(in thousands of U.S. dollars)

 

Three months ended

December 31

 

 

Years ended

December 31

 

 

 

2020

 

 

2019*

 

 

2020

 

 

2019*

 

Net cash from continuing operating activities

 

 

164,928

 

 

 

133,262

 

 

 

610,862

 

 

 

500,496

 

Additions to property and equipment

 

 

(60,410

)

 

 

(89,073

)

 

 

(142,814

)

 

 

(263,698

)

Proceeds from sale of property and equipment

 

 

23,949

 

 

 

20,785

 

 

 

52,116

 

 

 

71,754

 

Proceeds from sale of assets held for sale

 

 

6,248

 

 

 

13,079

 

 

 

24,480

 

 

 

39,146

 

Free cash flow from continuing operations

 

 

134,715

 

 

 

78,053

 

 

 

544,644

 

 

 

347,698

 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

 

Covenants : The following table indicates the Company’s financial covenants to be maintained under its credit facility. These covenants are measured on a consolidated rolling twelve-month basis and are calculated as prescribed by the credit agreement which, among other things, requires the exclusion of the impact of the new standard IFRS 16 Leases:

 

Covenants

 

Requirements

 

As at

December 31, 2020

 

Funded debt-to- EBITDA ratio [ratio of total debt plus letters of credit and some other long-term liabilities to earnings before interest, income tax, depreciation and amortization (“EBITDA”), including last twelve months adjusted EBITDA from business acquisitions]

 

< 3.50

 

 

1.33

 

EBITDAR-to-interest and rent ratio [ratio of EBITDAR (EBITDA before rent and including last twelve months adjusted EBITDAR from business acquisitions) to interest and net rent expenses]

 

> 1.75

 

 

4.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14