Mr. Alain Bedard reports

TFI INTERNATIONAL ANNOUNCES 2023 THIRD QUARTER RESULTS

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

"We executed well during this stretch of weaker demand as our team was able to quickly adapt to changing market conditions while further streamlining operations. As a result, we were able to post solid results, including close to $280-million of net cash from operating activities," said Alain Bedard, chairman, president and chief executive officer. "Looking ahead, we're well positioned to capitalize on the eventual pickup in demand given our efficient platform, our team's focus on profitability and cash flow, and our solid financial foundation, which further benefited from our postquarter, half-billion-dollar private placement. It's this foundation that allows us to strategically allocate capital, including 11 acquisitions this year, along with our share repurchases and our board's recently approved dividend increase."

Total revenue of $1.91-billion compared with $2.24-billion in the prior-year period and revenue before fuel surcharge of $1.63-billion compared with $1.86-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 (CFI) in August, 2022, which had sales of $107.6-million in Q3 2022.

Operating income of $200.6-million compares with $318.4-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 $75.7-million from the gain on sale and $5.6-million from Q3 2022 contribution, $5.5-million of information technology system and transition expenses in U.S. LTL, a $4.7-million expense for the MTM of director share units, and a $2.9-million unfavourable currency translation impact (1) relative to the same prior-year period.

Net income of $133.3-million compared with $245.2-million in the prior-year period, and net income of $1.54 per diluted share compared with $2.72 in the prior-year period. Adjusted net income, a non-international financial reporting standard measure, was $136.0-million, or $1.57 per diluted share, compared with $181.2-million, or $2.01 per diluted share, in the prior-year period. The net income was burdened by the items described in the operating income.

Total revenue declined in three segments relative to the prior-year period with decreases of 12 per cent for package and courier, 15 per cent for less than truckload, 25 per cent for truckload, which is due in part to a $107.6-million decrease from the divestiture of CFI, and 0 per cent for logistics. Operating income decreased by 26 per cent for package and courier and 48 per cent for truckload, was relatively flat for less than truckload, and increased 41 per cent for logistics in the third quarter in comparison with the prior year.

Nine-month results

Total revenue of $5.55-billion compared with $6.86-billion in the prior-year period and revenue before fuel surcharge of $4.74-billion compared with $5.74-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 $415.2-million for the nine-month period in 2022.

Operating income of $559.4-million compares with $929.2-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 $75.7-million for the gain on sale and $46.1-million for the year-to-date contribution, $19.2-million of IT system and transition expenses in U.S. LTL, $11.8-million variance in the MTM of DSUs, and a $16.6-million unfavourable currency translation impact (1) relative to the same prior-year period.

Net income of $373.5-million compared with $669.7-million in the prior-year period, and net income of $4.28 per diluted share was compared with $7.27 in the prior-year period. Adjusted net income, a non-IFRS measure, was $391.4-million, or $4.48 per diluted share, compared with $579.9-million, or $6.29 per diluted share, the prior-year period. The net income was burdened by the items described in the operating income.

Total revenue declined for all segments relative to the prior-year period with decreases of 11 per cent for package and courier, 19 per cent for less than truckload, 25 per cent for truckload, which is due to a $415.2-million decrease from the divestiture of CFI, and 13 per cent for logistics. Operating income decreased by 18 per cent for package and courier, 38 per cent for less than truckload, 37 per cent for truckload, and 1 per cent for logistics as compared with the prior-year period. Truckload operating income in the prior-year period included a $46.1-million contribution from CFI.

(1) This is a non-IFRS measure.

Conference call

TFI International will host a conference call on Tuesday, Oct. 24, 2023, at 9 a.m. Eastern Time, to discuss these results.

Interested parties can join the call by dialling 1-855-327-6837 or 1-631-891-4304. A recording of the call will be available until 11:59 p.m. Eastern Time on Tuesday, Nov. 7, 2023, by dialling 1-844-512-2921 or 1-412-317-6671 and entering passcode 10022413.

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 the symbol TFII.

We seek Safe Harbor.