XPO Logistics has announced financial results for the third quarter of 2016. Total revenue increased 57.2% year-over-year to $3.7bn. Net income attributable to common shareholders was $13.8m for the quarter, or earnings of $0.11 per diluted share, compared with a net loss attributable to common shareholders of $93.1m, or a loss of $0.94 per diluted share, for the same period in 2015.
Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), improved to $352.7m for the quarter, compared with $166.1m for the same period in 2015. Adjusted EBITDA in the third quarter of 2016 excludes $19.8m of one-time transaction-related and rebranding costs.
In the third quarter, the company generated $137.0m of cash flow from operations and $64.8m of free cash flow. In the first nine months of 2016, the company generated $404.6m of cash flow from operations and $144.0m of free cash flow.
Bradley Jacobs, Chairman and Chief Executive Officer of XPO Logistics, said, “Today, we reported record third quarter results for net income, cash flow from operations and adjusted EBITDA. Importantly, we generated free cash flow of $65m in the quarter, and raised our 2016 target for free cash flow to at least $175m.
“We achieved this strong performance in a mixed operating environment. In North America, vigorous demand from e-commerce drove growth in our contract logistics and last mile operations, while brokerage and intermodal were generally soft. Our less-than-truckload business in North America had another outstanding quarter, with higher yield and lower SG&A [Selling, General and Administrative Expenses]. This propelled a 40% increase in LTL operating income versus a year ago, pre-acquisition. In Europe, where XPO is the market leader in e-fulfilment, we continued to win new business from major retailers based on our e-commerce expertise.”
Jacobs continued, “Our business model gives us substantial autonomy from macro cycles, due to the diversity of our service offering and the company-specific nature of our profit improvement opportunities. We have a well-defined bridge from where we stand today to our target of $1.58bn of EBITDA in 2018. Every component of that bridge is underway – including the optimization of over $13bn of spend, a dual focus on cross-selling and market penetration, and the adoption of global best practices that benefit our employees as well as our customers.”
Source: XPO Logistics