TFI International Inc. Reports Third Quarter 2024 Financial Results
Montreal, Oct. 21, 2024 (GLOBE NEWSWIRE) — TFI International Inc. (TSX: TFII), a leading North American transportation and logistics company, announced its results for the third quarter ending September 30, 2024.
Financial Overview
Key Financial Metrics
The following table provides a summary of TFI International's financial performance for Q3 2024:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $2.18 billion | $1.91 billion | +14% |
| Net Income | $128.0 million | $133.3 million | -4% |
| Adjusted Net Income | $136.6 million | $136.0 million | +0.4% |
| Diluted EPS | $1.50 | $1.54 | -3% |
| Adjusted Diluted EPS | $1.60 | $1.57 | +2% |
Interpretation:
TFI International reported total revenue of $2.18 billion, a 14% increase year-over-year, primarily driven by business acquisitions despite softer market conditions. However, the company’s diluted EPS slightly missed the consensus estimate of $1.78, standing at $1.50.
Revenue by Segment
Segment Performance
Here is a breakdown of TFI International’s revenue performance by segment:
| Segment | Q3 2024 Revenue Change | Operating Income Change |
|---|---|---|
| Truckload | +74% | +44% |
| Logistics | +2% | +19% |
| Less-Than-Truckload (LTL) | -9% | -24% |
Interpretation:
The Truckload segment experienced significant growth, buoyed by the acquisition of Daseke, while the Logistics segment saw moderate growth. The Less-Than-Truckload segment, however, faced challenges due to the prevailing weak transportation environment.
Key Developments and Operational Highlights
- Generated $351.1 million in net cash from operating activities, a 26% increase over the previous year.
- Achieved $272.5 million in free cash flow, up 37% year-over-year.
- Successfully reduced debt by over $130 million during the quarter.
- Announced a quarterly dividend increase to $0.45 per share, a rise of 13%.
Executive Comments
Alain Bédard, Chairman, President and CEO, noted the company’s strong cash flow generation and its strategic focus on operational enhancements and acquisitions. Despite challenging conditions in the US LTL segment, Bédard highlighted solid performance in the Logistics and Canadian LTL operations and reaffirmed TFI’s focus on maintaining a strong balance sheet to support shareholder returns and strategic investments.
Dividends and Share Repurchase Program
TFI International declared a quarterly dividend of $0.45 per share, payable on January 15, 2025. Additionally, the Board approved the renewal of the normal course issuer bid (NCIB) for the purchase and cancellation of up to 7,918,103 common shares over the next year, pending approval from the Toronto Stock Exchange.
Forward Guidance
The company did not provide explicit forward guidance but indicated a focus on leveraging acquisitions and operational efficiencies to navigate the current freight environment.
Stock Price Movement
Following the earnings release, TFI International’s stock experienced a 2.19% decrease, reflecting the market's response to the quarterly results.
Conclusion:
TFI International demonstrated resilience in the face of a challenging transportation market, driven by strategic acquisitions and operational efficiency. The company's solid cash flow generation and commitment to returning capital to shareholders through dividends and share repurchase programs were notable highlights of the quarter.
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