TFI International Announces 2017 First Quarter Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 04/26/17 -- TFI International Inc. (TSX: TFII)(OTCQX: TFIFF)
(i) This is a non-IFRS measure. For a reconciliation, please refer to the "Non-IFRS Measures" section below.
TFI International Inc. (TSX: TFII)(OTCQX: TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the first quarter ended March 31, 2017.
"As anticipated, TFI International''s first quarter results were affected by difficult conditions in the U.S. Truckload market and certain integration costs related to the CFI acquisition. This overshadowed significant profitability increases in all other business segments, reflecting our commitment to improve efficiency and to focus on niches generating superior returns," said Alain Bedard, Chairman, President and Chief Executive Officer of TFI International.
"During the quarter, we rebranded several same-day, last mile Package & Courier (P&C) divisions to the TForce Final Mile name. This initiative should allow TFI International to capture new e-commerce opportunities. Meanwhile, the profitability of our Less-Than-Truckload (LTL) activities continues to improve, driven by efficiency gains. Excluding CFI, operating margins in the Truckload (TL) segment held steady despite adverse market conditions. We are also witnessing some improvement in specialized divisions, including those servicing the energy sector, which bodes well for the rest of 2017. Finally, our Logistics activities produced organic revenue growth and solid returns," added Mr. Bedard.
FIRST-QUARTER RESULTS
Total revenue from continuing operations reached $1.17 billion, up 25% from last year. Net of fuel surcharge, revenue from continuing operations rose 22% to $1.06 billion. The increase reflects the contribution from business acquisitions, mainly CFI, completed on October 27, 2016. This was partially offset by a negative currency impact and slightly lower business volume for existing operations.
Operating income from continuing operations totalled $28.9 million, compared with $40.3 million last year. During the quarter, TFI International recorded a non-cash impairment charge of $13.2 million related to the decrease in the fair value of certain trade names in the P&C segment following their conversion to TForce Final Mile. Excluding this charge, adjusted operating income from continuing operations amounted to $42.1 million. In the first quarter of 2017, non-recurring costs of $7.5 million were also incurred related to the integration of CFI, mainly in regards to fleet rebranding and renewal programs. As a percentage of revenue before fuel surcharge, adjusted operating income stood at 4.0% of revenue in the first quarter of 2017, versus 4.6% a year ago. This decrease reflects lower margins in the TL segment due to difficult market conditions, partially offset by higher margins in all other segments, mainly resulting from efficiency gains.
Net income from continuing operations reached $14.1 million, or $0.15 per diluted share, versus $15.3 million, or $0.15 per diluted share, a year ago. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to business acquisitions, net changes in the fair value of derivatives, net foreign exchange gain or loss, impairment of intangible assets and items not in the Company''s normal business, net of tax, amounted to $32.7 million, or $0.35 per diluted share, up 5% from $31.3 million last year, or $0.32 per diluted share. Net income was $14.1 million, or $0.15 per diluted share, versus $503.6 million last year, or $5.09 per diluted share. Last year''s net income included a $490.8 million after-tax gain on the sale of the Waste Management segment.
SEGMENTED RESULTS FROM CONTINUING OPERATIONS
FREE CASH FLOW AND FINANCIAL POSITION
Free cash flow from continuing operations was $29.5 million, or $0.32 per share, up 20% from $24.7 million last year, or $0.25 per share. The variation is essentially related to a $10.0 million increase in net cash from operating activities from continuing operations. During the quarter, TFI International also continued to dispose of excess assets, realizing total proceeds of $15.8 million.
As business acquisitions made in the first quarter were mainly financed through additional borrowings, the Company''s long-term-debt-to-equity ratio increased slightly to 1.13 as at March 31, 2017, versus 1.09 three months earlier. TFI International maintained its strong commitment to apply excess funds to debt reduction by reimbursing $11.1 million during the quarter.
OUTLOOK
"We remain cautiously optimistic in regards to the North American economy given low unemployment and healthy consumer spending. We are also seeing a modest rebound in the level of investment in the energy sector. These factors should, over time, improve market conditions, but we do not expect any significant improvement before the end of 2017. TFI International will also continue to execute its selective acquisition strategy, targeting profitable and well-managed companies that offer synergies, reinforce existing operations and further expand its geographic footprint. Our operating strategy is aimed at producing a solid cash flow that will be invested in high-return activities, applied to debt reimbursement and returned to shareholders. Overall, TFI International boasts a solid team dedicated to build a company defined by its excellence and its capacity to create greater value for its shareholders," concluded Mr. Bedard.
CONFERENCE CALL
TFI International will hold a conference call for analysts and portfolio managers on Thursday, April 27, 2017 at 9:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, May 11, 2017, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 90305101.
ABOUT TFI INTERNATIONAL
TFI International Inc. 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:
TFI International Inc. is publicly traded on the Toronto Stock Exchange (TSX: TFII) and the OTCQX marketplace in the U.S. (OTCQX: TFIFF). For more information, visit .
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TFI International. These statements are based on suppositions and uncertainties as well as on management''s best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TFI International''s products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
NON-IFRS MEASURES
Adjusted operating income from continuing operations, adjusted net income from continuing operations, adjusted earnings from continuing operations per share, free cash flow from continuing operations and free cash flow from continuing operations per share are financial measures not prescribed by IFRS and are not likely to be comparable to similar measures presented by other issuers. Management considers these to be useful information to assist investors in evaluating the Company''s profitability, liquidity and ability to generate funds to finance its operations. These measures do not have any standardized meaning under IFRS and could be calculated differently by other companies. These measures should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS.
Note to readers: Unaudited condensed consolidated interim financial statements and Management''s Discussion & Analysis are available on TFI International''s website at .
Contacts:
Investors:
Alain Bedard
Chairman, President and CEO
TFI International Inc.
(647) 729-4079
Media:
Rick Leckner
MaisonBrison Communications
(514) 731-0000
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Datum: 26.04.2017 - 11:30 Uhr
Sprache: Deutsch
News-ID 1500698
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