Mr. Alain Bedard reports

TFI INTERNATIONAL ANNOUNCES 2023 SECOND QUARTER RESULTS

TFI International Inc. has released its results for the second quarter ended June 30, 2023. All amounts are shown in U.S. dollars.

"Despite a difficult freight market and reduced volumes industrywide, our results reflect the quality of our operations and our team's skill in responding to rapidly changing market conditions. We produced solid operating ratios across all our business segments while again generating more than $200-million in net cash from operating activities," said Alain Bedard, chairman, president and chief executive officer. "During challenging times for our industry, TFI International's relentless focus on our long-standing operating principles, our business line diversity and niche positioning, and our ongoing progress on multiple self-help initiatives are what differentiates our performance and future potential. TFI's strong financial foundation and focus on profitability and cash flow is allowing us to remain strategic in our allocation of capital, remaining active in [mergers and acquisitions], including seven completed acquisitions year to date, while also returning capital to shareholders through both our dividend, with our board approving a 30-per-cent increase over the past year and our opportunistic share repurchases. I wish to thank the talented men and women of TFI for their hard work in our continual quest to create shareholder value."

Total revenue of $1.79-billion compared with $2.42-billion in the prior-year period, and revenue before fuel surcharge of $1.55-billion compared with $1.99-billion in the prior-year period. The decline is primarily due to a reduction in volumes driven by weaker end market demand and the sale of CFI's truckload, temp control and Mexican non-asset logistics business in August, 2022, which had sales of $162.2-million in second quarter 2022.

Operating income of $192.4-million compares with $391.0-million from the prior-year period. The decrease in the operating income can be attributed to overall lower revenues and volumes associated with freight, as well as the divestiture of CFI of $23.0-million, a $60.6-million reduction in the gain on sale of real estate assets held for sale, $5.8-million of information technology system and transition expenses in U.S. LTL, $5.3-million variance in the MTM of DSUs, and a $6.1-million unfavourable currency translation impact relative to the same prior-year period.

Net income of $128.2-million compared with $276.8-million in the prior-year period, and net income of $1.47 per diluted share compared with $3 in the prior-year period. Adjusted net income, a non-international financial reporting standard measure, was $138.9-million, or $1.59 per diluted share, compared with $241.1-million, or $2.61 per diluted share, in the prior-year period. The net income was burdened by the items described in operating income.

Total revenue declined for all segments relative to the prior-year period with decreases of 15 per cent for package and courier, 27 per cent for less than truckload, 32 per cent for truckload, which is due in part to a $153.5-million decrease from the divestiture of CFI, and 20 per cent for logistics. Operating income decreased by 26 per cent for package and courier, 57 per cent for less than truckload, 48 per cent for truckload, and 22 per cent for logistics in the second quarter in comparison with the prior year. Truckload operating income in the prior-year period included a $22.8-million contribution from CFI in the quarter. Less-than-truckload operating income, more specifically U.S. LTL, included $53.7-million more of gains on sale of land and buildings and assets held for sale in the prior-year period.

Six-month results

Total revenue of $3.64-billion compared with $4.61-billion in the prior-year period, and revenue before fuel surcharge of $3.11-billion compared with $3.88-billion in the prior-year period. The decline is primarily due to a reduction in volumes driven by weaker end market demand, and the sale of CFI in August, 2022, which had sales of $307.6-million for the six-month period in 2022.

Operating income of $358.8-million compares with $610.7-million from the prior-year period. The decrease in the operating income can be attributed to overall lower revenues and volumes associated with freight, as well as the divestiture of CFI of $40.5-million, a $54.3-million reduction in the gain on sale of assets held for sale, $13.7-million of information technology system and transition expenses in U.S. LTL, $12.4-million variance in the MTM of DSUs, and a $13.7-million unfavourable currency translation impact1 relative to the same prior-year period.

Net income of $240.2-million compared with $424.5-million in the prior-year period, and net income of $2.74 per diluted share was compared with $4.56 in the prior-year period. Adjusted net income, a non-IFRS measure, was $255.4-million, or $2.92 per diluted share, compared with $398.7-million, or $4.28 per diluted share, in the prior-year period. The net income was burdened by the items described in operating income.

Total revenue declined for all segments relative to the prior-year period with decreases of 10 per cent for package and courier, 21 per cent for less than truckload, 25 per cent for truckload, which is due to a $291.2-million decrease from the divestiture of CFI, and 19 per cent for logistics. Operating income decreased by 13 per cent for package and courier, 51 per cent for less than truckload, 31 per cent for truckload, and 16 per cent for logistics as compared with the prior-year period. Truckload operating income in the prior-year period included a $40.1-million contribution from CFI.

Conference call

TFI International will host a conference call on Tuesday, Aug. 1, 2023, at 8:30 a.m. Eastern Time, to discuss these results.

Interested parties can join the call by dialling 1-877-704-4453 or 1-201-389-0920. A recording of the call will be available until 11:59 p.m. Eastern Time on Tuesday, Aug. 15, 2023, by dialling 1-844-512-2921 or 1-412-317-6671 and entering passcode 13739002.

About TFI International Inc.

TFI International is a North American leader in the transportation and logistics industry, operating across the United States and Canada 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 is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII.

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