TFI International Inc. has announced its results for Q4 and full year ended December 31, 2017.
Q4 total revenue from continuing operations reached $1.18bn, up 4% from last year. Net of fuel surcharge, revenue from continuing operations rose 2% to $1.06bn. The increase reflects business acquisitions offset by revenue declines in some existing operations as well as a negative currency impact.
Operating income from continuing operations decreased by $2.9m to $66.8m, compared to $69.7m in Q4 2016 mainly due to $4.6m of lower gains on sale of rolling stock and equipment.
Net income from continuing operations was $120.2m, or $1.31 per diluted share, versus $46.4m, or $0.49 per diluted share in the year earlier period. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to business acquisitions, net change in the fair value of derivatives, net foreign exchange gain or loss, gain or loss on sale of property, impairment of intangible assets and the impact from U.S. tax reform, net of tax, was $54.6m compared to $50.6m in Q4 2016, up $4.0m or 8%. Net income was $120.2m compared to $45.3m in Q4 2016.
For the full year 2017, total revenue from continuing operations increased 18%, to $4.74bn from $4.03bn in 2016. The contribution from business acquisitions of $824.1m and higher fuel surcharge was offset by decreases in revenue from existing operations. Net of fuel surcharge, revenue from continuing operations reached $4.28bn, up from $3.70bn last year. Operating income from continuing operations decreased by $5.6m to $243.7m compared to $249.3m in 2016. The decrease is attributable to an operating loss from business acquisitions of $13.2m offset by improvement from existing operations’ operating income of $7.6m.
Net income from continuing operations was $158.0m, or $1.70 per diluted share, versus $157.1m, or $1.64 per diluted share last year. Adjusted net income from continuing operations increased by $5.2m to $192.6m. Net income was $158.0m compared to $639.6m for 2016. The decrease is mainly attributable to last year’s net income from discontinued operations of $482.5m, which includes a gain on the sale of the Waste Management segment in the amount of $490.8m, net of tax, and to 2017’s intangible impairment charge of $138.4m, net of tax, offset by the income tax recovery recorded as a result of U.S. tax reform for $76.1m and by $59.2m of higher gains on sale of property.
The Truckload division accounted for $1,965m of total revenues for the full year 2017 whereas the Package and Courier division produced revenues of $1,267m. The Less-Than-Truckload and the Logistics division recorded revenues of $799m and $299m respectively.
Operating income was the highest in the Package and Courier division ($124.4m) followed by the Truckload division ($77.3m). The Less-Than-Truckload and Logistics divisions recorded operating income of $52.4m and $25.5m for the year ended December 31, 2017.
“The fourth quarter capped a year of continued strong progress on our key initiatives, including greater operational efficiency and continued robust cash flow. Organic growth in operating income was strong in 2017 excluding our U.S. Truckload operations,” said Alain Bédard, Chairman, President and Chief Executive Officer. “Throughout the year, we generated strong cash flow, which we used to reduce our debt and return excess cash to shareholders through dividends and share buybacks.”
Source: TFI International
