Mr. Alain Bedard reports

TFI INTERNATIONAL ANNOUNCES 2024 FIRST QUARTER RESULTS

TFI International Inc. today released its results for the first quarter ended March 31, 2024. All amounts are shown in United States dollars.

• First quarter operating income of $151.6-million compares with $166.4-million the same quarter last year, primarily reflecting weaker market conditions.
• First quarter net income of $92.8-million compared with $111.9-million in Q1 2023, while adjusted net income of $105.5-million compared with $116.5-million.
• First quarter diluted earnings per share (diluted EPS) of $1.09 compared with $1.27 in Q1 2023, while adjusted diluted EPS of $1.24 compared with $1.33.
• First quarter net cash from operating activities of $200.7-million compares with $232.1-million in Q1 2023 and free cash flow of $137.2-million compares with $195.7-million in Q1 2023.

"TFI International performed well in a challenging environment, while making notable advancements in our U.S. LTL business," said Alain Bedard, chairman, president and chief executive officer. "Through strong execution, we've reached an important inflection point in our turnaround of TForce Freight, with rapidly improving service driving tonnage growth, resulting in revenue per shipment before fuel surcharge increasing 12 per cent. Also noteworthy, our logistics segment turned in very strong results, benefiting from last year's acquisition of JHT. On a consolidated basis, during the first quarter TFI generated more than $200-million in net cash from operating activities, with our solid free cash flow and other recent balance sheet enhancements further strengthening our financial resources to strategically capitalize on market conditions. Illustrative of this is our recently closed acquisition of Daseke, whose attractive and complementary operations will add scale to our truckload operations beginning this month, and we are already working with the team to enhance performance. Over all, we remain both strategic and prudent in our approach to the business, with an emphasis on service, efficiencies and cash flow in our drive to further expand shareholder value."

Total revenue of $1.87-billion increased from $1.85-billion in the prior-year period and revenue before fuel surcharge of $1.61-billion increased from $1.56-billion in the prior-year period. The increase is due to contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and to a reduction in fuel surcharge revenue.

Operating income of $151.6-million compares with $166.4-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 a reduction on gains on sale of rolling stock and equipment and assets held for sale of $10.4-million relative to the same prior-year period.

Net income of $92.8-million compared with $111.9-million in the prior-year period, and net income of $1.09 per diluted share compared with $1.27 in the prior-year period. Adjusted net income, a non-IFRS (international financial reporting standards) measure, was $105.5-million, or $1.24 per diluted share, compared with $116.5-million, or $1.33 per diluted share, the prior-year period.

Total revenue declined in three segments relative to the prior-year period with decreases of 11 per cent for package and courier, 4 per cent for less than truckload, and 6 per cent for truckload, and increased 26 per cent for logistics, primarily from the acquisition of JHT. Operating income increased 15 per cent for less than truckload and 27 per cent for logistics, and decreased by 34 per cent for package and courier and 41 per cent for truckload in the first quarter in comparison with the prior year.

Cash flow

Net cash flow from operating activities was $200.7-million during Q1 compared with $232.1-million the prior year. This decrease was due primarily to a decrease in non-cash working capital of $85.8-million, resulting primarily from an increase in sales which increased the accounts receivable balance and was partially offset by a decrease in income taxes paid of $51.4-million.

Net cash from investing activities decreased by $34.1-million as a result of an increase in spending on business acquisitions of $24.2-million and to an increase in net capital expenditures of $27.1-million.

The company returned $33.6-million to shareholders during the quarter through dividends.

On March 18, 2024, the board of directors of TFI International declared a quarterly dividend of 40 cents per outstanding common share paid on April 15, 2024, representing a 14-per-cent increase over the 35-cent quarterly dividend declared in Q1 2023. The annualized dividend represents 18.9 per cent of the trailing-12-month free cash flow.

Conference call

TFI International will host a conference call on Friday, April 26, 2024, 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, Friday, May 10, 2024, by dialling 1-844-512-2921 or 1-412-317-6671 and entering pass code 13745062.

About TFI International Inc.

TFI International 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 is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII.

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