Mr. Alain Bedard reports

TFI INTERNATIONAL ANNOUNCES 2023 FOURTH QUARTER AND FULL-YEAR RESULTS

TFI International Inc. has released its results for the fourth quarter and full year ended Dec. 31, 2023. All amounts are shown in U.S. dollars.

"We generated robust free cash flow during the quarter, bringing our full-year total to more than $9 per share and wrapping up 2023 on a favourable note as our team continues to strive for day-to-day efficiencies while delivering superior service. Despite market conditions, during the fourth quarter, we were able to grow revenue over the prior-year period and deliver adjusted diluted [earnings per share] of $1.71. Strategically, we capitalized on our cash flow and strong balance sheet by significantly investing during periods of weaker freight demand, committing $2-billion of capital during 2023 into announced acquisitions and share buybacks," said Alain Bedard, chairman, president and chief executive officer. "We're entering 2024 in an attractive position across all four business segments, with logistics outperforming the market boosted by our recent successful acquisition of JHT, with truckload standing to significantly benefit from our Daseke acquisition expected to close in the second quarter, and with the ongoing turnaround at LTL a top priority. This involves a renewed focus on LTL growth and quality of revenue through improved service, as evidenced by our latest cargo claims ratio of only 0.5 per cent for U.S. LTL, down from 1.5 per cent a year earlier, and our second-to-none Canadian LTL cargo claims ratio of 0.1 per cent. Looking ahead, while continuing our sharp focus on day-to-day operations, we can also seek highly strategic investment opportunities while returning excess cash to shareholders, consistent with our board's recently approved 14-per-cent increase to our quarterly dividend."

Fourth quarter results

Total revenue of $1.97-billion compared with $1.96-billion in the prior-year period, and revenue before fuel surcharge of $1.67-billion compared with $1.62-billion in the prior-year period. The increase is primarily due to contributions from business acquisitions offset by reduced volumes driven by weaker end market demand.

Operating income of $198.3-million compared with $216.9-million the prior-year period. The decrease is primarily attributable to the decline in revenues as a result of weaker market demand in the quarter and the impact of a decrease in gains from assets held for sale of $23.0-million, partially offset by contributions from business acquisitions of $24.1-million.

Net income of $131.4-million compares with $153.5-million in the prior-year period, and net income of $1.53 per diluted share compared with $1.74 in the prior-year period. Adjusted net income, a non-international financial reporting standard measure, was $147.0-million, or $1.71 per diluted share, compared with $151.8-million, or $1.72 per diluted share, the prior-year period.

Total revenue declined for three segments relative to the prior-year period with decreases of 9 per cent for package and courier, 6 per cent for less than truckload, and 5 per cent for truckload, while total revenue for logistics increased 28 per cent. Operating income declined for package and courier by 8 per cent, for less than truckload by 19 per cent, and for truckload by 29 per cent, and increased for logistics by 60 per cent in the fourth quarter in comparison with the prior year. Operating income in the truckload segment decreased due to a $16.0-million gain on the sale of assets held for sale being recognized in the same prior-year period while operating income in the logistics segment increased primarily through business acquisitions.

Full-year results

Total revenue was $7.52-billion for 2023 versus $8.81-billion in 2022. Revenue before fuel surcharge of $6.42-billion compared with $7.36-billion the prior year. The decrease is primarily due to weaker market demand and the sale of CFI in 2022 resulting in a decrease of $333.3-million.

Operating income totalled $757.6-million compared with $1,146.0-million. The decrease is mainly attributable to the weaker market demand referenced above and a gain on sale of business of $73.7-million in 2022, as well as $107.3-million fewer gains from the sale of rolling stock, equipment and assets held for sale, and the 2022 sale of CFI, which contributed $46.1-million in 2022.

Net income was $504.9-million, or $5.80 per diluted share, compared with $823.2-million, or $9.02 per diluted share, a year earlier. Adjusted net income and adjusted diluted EPS, non-IFRS measures, were $538.3-million or $6.18 per diluted share, compared with $731.7-million or $8.02 per diluted share the prior year.

During 2023, total revenue declined 10 per cent for package and courier, 16 per cent for less than truckload, 21 per cent for truckload, and 4 per cent for logistics relative to the prior year. Operating income was down 15 per cent for package and courier, 34 per cent for less than truckload, and 35 per cent for truckload, and up 14 per cent for logistics.

On Dec. 15, 2023, the board of directors of TFI International declared a quarterly dividend of 40 cents per outstanding common share paid on Jan. 15, 2024, representing a 14-per-cent increase over the 35-cent quarterly dividend declared in fourth quarter 2022.

Conference call

TFI International will host a conference call on Friday, Feb. 9, 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 on Friday, Feb. 23, 2024, by dialling 1-844-512-2921 or 1-412-317-6671 by entering passcode 13743370.

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.

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