TFI International Announces 2020 Fourth Quarter and Full-Year Results

February 8, 2021 4:57 PM EST

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
  • Elective change of presentation currency to U.S. dollars effective on December 31, 2020
  • Fourth quarter diluted EPS from continuing operations of $0.91 (CAD $1.18) up from $0.70 (CAD $0.92) in Q4 2019, while adjusted diluted EPS1 of $0.98 (CAD $1.27) increased from $0.72 (CAD $0.95)
  • Fourth quarter operating income from continuing operations of $117.1 million increased from $92.8 million in Q4 2019
  • Fourth quarter net cash from continuing operating activities of $164.9 million increased from $133.3 million in Q4 2019
  • Annual diluted EPS from continuing operations of $3.03 (CAD $4.06) up from $2.86 (CAD $3.80) in 2019, while adjusted diluted EPS1 of $3.30 (CAD $4.39) increased from $2.97 (CAD $3.94)

MONTREAL, Feb. 08, 2021 (GLOBE NEWSWIRE) -- TFI International Inc. (NYSE and TSX: TFII), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and full year ended December 31, 2020.

“TFI International had a successful 2020 that began with our listing on the New York Stock exchange and culminated with our robust fourth quarter results that featured a 26% increase in operating income and a 36% increase in adjusted diluted EPS,” said Alain Bédard, Chairman, President and Chief Executive Officer. “Throughout the ongoing global pandemic, we’ve remained true to our operating philosophy including our asset-right business plan and an emphasis on free cash flow that we put toward growth objectives while returning excess capital to our shareholders. We strategically made thirteen acquisitions during 2020 including five during the fourth quarter, and in the new year have already announced two additional strategic acquisitions, including the transformational purchase of UPS Freight. I wish to thank all of our employees for their extraordinary efforts during an unprecedented year, placing TFI International in an enviable position of strength to create additional shareholder value as we move through 2021.”

SELECTED FINANCIAL DATA AND HIGHLIGHTS (UNAUDITED)

Financial highlightsQuarters endedDecember 31 Years endedDecember 31 
(in millions of U.S. dollars, except per share data)2020 2019* 2020 2019* 
Total revenue1,122.0 989.0 3,781.1 3,903.5 
Revenue before fuel surcharge1,048.1 883.7 3,484.3 3,477.6 
Adjusted EBITDA1193.5 163.4 699.6 649.0 
Operating income from continuing operations117.1 92.8 416.6 382.9 
Net cash from continuing operating activities164.9 133.3 610.9 500.5 
Adjusted net income193.4 60.1 299.8 253.6 
Adjusted EPS - diluted1 ($)0.98 0.72 3.30 2.97 
Net income from continuing operations86.3 58.0 275.7 244.2 
EPS from continuing operations - diluted ($)0.91 0.70 3.03 2.86 
Weighted average number of shares ('000s)93,374 81,551 89,113 83,390 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS Financial Measures” section below.

FOURTH QUARTER RESULTSTotal revenue of $1.12 billion was up 13% and, net of fuel surcharge, revenue of $1.05 billion was up 19% compared to the prior year period.

Operating income from continuing operations grew 26% to $117.1 million from $92.8 million the prior year period, primarily driven by acquisitions, strong execution across the organization, increased quality of revenue, an asset-right approach, cost efficiencies, and Canadian Emergency Wage Subsidy contributions of $6.3 million.

Net income from continuing operations grew 49% to $86.3 million from $58.0 million the prior year period, and net income from continuing operations of $0.91 (CAD $1.18) per diluted share was up relative to $0.70 (CAD $0.92) the prior year period. Adjusted net income, a non-IFRS measure, was $93.4 million, or $0.98 (CAD $1.27) per diluted share, as compared to $60.1 million, or $0.72 (CAD $0.95) per diluted share, the prior year period.

Total revenue grew 16% for Package and Courier, 2% for Truckload and 59% for Logistics, and declined 10% for Less-Than-Truckload, relative to the prior year period. Operating income was higher across all segments in Q4 in comparison to the prior-year.

FULL-YEAR RESULTSTotal revenue was $3.78 billion for 2020 versus $3.90 billion in 2019. Net of fuel surcharge, revenue was $3.48 billion, flat with the prior year.

Operating income from continuing operations totalled $416.6 million, or 12.0% of revenue before fuel surcharge, an increase of 9% compared to $382.9 million and 11.0% of revenue before fuel surcharge in the prior year. The increase is mainly attributable to the Canadian Emergency Wage Subsidy of $52.3 million offset by a decrease in revenues due to the COVID-19 pandemic.

Net income from continuing operations was $275.7 million, or $3.03 (CAD $4.06) per diluted share, compared to $244.2 million, or $2.86 (CAD $3.80) per diluted share a year earlier. Adjusted net income from continuing operations, a non-IFRS measure, was $299.8 million, or $3.30 (CAD $4.39) per diluted share, compared to $253.6 million, or $2.97 (CAD $3.94) per diluted share the prior year period.

During 2020, total revenue grew 22% for Logistics, and declined 2% for Package and Courier, 19% for Less-Than-Truckload and 8% for Truckload relative to 2019. Operating income was up 7% for Less-Than-Truckload, 7% for Truckload and 48% for Logistics, and down 4% for Package and Courier.

SEGMENTED RESULTS

To facilitate the comparison of business level activity and operating costs between periods, the Company compares the revenue before fuel surcharge (“revenue”) and reallocates the fuel surcharge revenue to materials and services expenses within operating expenses. Note that “Total revenue” is not affected by this reallocation.

Selected segmented financial information

(unaudited)(in thousands of U.S. dollars)PackageandCourier Less-Than-Truckload Truckload Logistics Corporate Eliminations Total 
Three months ended December 31, 2020              
Revenue before fuel surcharge1154,094 141,081 438,135 322,319  (7,482)1,048,147 
% of total revenue215%14%42%29%    100%
Adjusted EBITDA35,934 37,084 101,383 35,809 (16,672) 193,538 
Adjusted EBITDA margin323.3%26.3%23.1%11.1%    18.5%
Operating income (loss)29,401 24,464 53,604 26,462 (16,809) 117,122 
Operating margin319.1%17.3%12.2%8.2%    11.2%
Net capital expenditures42,550 6,194 21,155 70 244  30,213 
Three months ended December 31, 2019*              
Revenue before fuel surcharge1127,301 151,303 412,760 198,961  (6,608)883,717 
% of total revenue215%18%47%20%    100%
Adjusted EBITDA29,295 31,269 90,447 21,933 (9,547) 163,397 
Adjusted EBITDA margin323.0%20.7%21.9%11.0%    18.5%
Operating income (loss)22,680 19,311 46,417 14,216 (9,840) 92,784 
Operating margin317.8%12.8%11.2%7.1%    10.5%
Net capital expenditures43,321 27,945 17,783 1,002 5,158  55,209 
YTD December 31, 2020              
Revenue before fuel surcharge1481,490 522,851 1,584,837 923,456  (28,331)3,484,303 
% of total revenue214%15%46%25%    100%
Adjusted EBITDA104,019 138,361 383,155 113,885 (39,831) 699,589 
Adjusted EBITDA margin321.6%26.5%24.2%12.3%    20.1%
Operating income (loss)78,753 87,950 206,346 84,459 (40,941) 416,567 
Operating margin316.4%16.8%13.0%9.1%    12.0%
Total assets less intangible assets194,631 404,074 1,193,730 272,592 34,564  2,099,591 
Net capital expenditures416,798 19,230 29,179 567 444  66,218 
YTD December 31, 2019*              
Revenue before fuel surcharge1473,666 627,219 1,657,797 745,322  (26,428)3,477,576 
% of total revenue214%18%48%20%    100%
Adjusted EBITDA106,278 126,641 362,641 83,030 (29,569) 649,021 
Adjusted EBITDA margin322.4%20.2%21.9%11.1%    18.7%
Operating income (loss)82,228 82,230 192,172 57,447 (31,209) 382,868 
Operating margin317.4%13.1%11.6%7.7%    11.0%
Total assets less intangible assets180,811 407,358 1,206,568 159,152 49,771  2,003,660 
Net capital expenditures410,967 27,536 108,039 1,995 4,261  152,798 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs1 Includes intersegment revenue.2 Segment revenue including fuel and intersegment revenue to consolidated revenue including fuel and intersegment revenue.3 As a percentage of revenue before fuel surcharge.4 Additions to rolling stock and equipment, net of proceeds from sale of rolling stock and equipment and assets held for sale excluding property.

CASH FLOW Net cash from continuing operating activities was $610.9 million during 2020 compared to $500.5 million the prior year. The 22% increase was due to stronger operating performance, reduction of interest payments as a result of lower debt levels, and contributions from acquisitions. The Company returned $105.6 million to shareholders during the year, of which $67.6 million was through dividends and $38.0 million was through share repurchases.

On December 15, 2020, the Board of Directors of TFI International declared a quarterly dividend of $0.23 (CAD $0.29) per outstanding common share payable on January 15, 2021, representing an 14% increase over the $0.20 (CAD $0.26) quarterly dividend declared in Q4 2019.

CHANGE IN PRESENTATION CURRENCYThe Company has elected to change its presentation currency from Canadian dollars (“CAD”) to United States dollars (“U.S. Dollars” or “USD”) effective December 31st, 2020. Due to the Company’s growing market presence in the U.S. with our equity listing in the U.S., financial reporting in USD provides a more relevant presentation of the Company’s financial position in comparison to its peers. The change in presentation currency is a voluntary change which is accounted for retrospectively. For comparative purposes, the historical consolidated financial statements have been restated to U.S. dollars using the procedures outlined below:

  • Consolidated Statements of Income, Comprehensive Income, and Cash Flows have been translated into U.S. dollars using average foreign currency rates prevailing for the relevant periods.
  • Assets and liabilities in the Consolidated Statement of Financial Position have been translated into U.S. dollars at the closing foreign currency rates on the relevant balance sheet dates.
  • Equity in the Consolidated Statement of Financial Position and Consolidated Statements of changes in Equity, including foreign currency translation reserve and net investment hedge, retained earnings, share capital, contributed surplus and other reserves, have been translated into U.S. dollars using historical rates.
  • Consolidated Earnings per share and dividend disclosures have also been translated to U.S. dollars to reflect the change in presentation currency.

The Company has also presented an opening consolidated statement of financial position as at January 1, 2019 in USD, which has been derived from the consolidated financial statements as at and for the year ended December 31, 2018. The Company’s consolidated financial statements will now be presented in U.S. dollars. All information in this press release is presented in USD unless otherwise specified.

The Company’s functional currency remains Canadian dollar. Translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar is the functional currency are included as part of the cumulative foreign currency translation adjustment. All financial information presented in U.S. dollars has been rounded to the nearest thousand.

CONFERENCE CALLTFI International will host a conference call on Monday, February 8, 2021 at 5:00 p.m. Eastern Time to discuss these results.Interested parties can join the call by dialing 1-877-223-4471. A recording of the call will be available until midnight, February22, 2021, by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 9095057.

ABOUT TFI INTERNATIONALTFI 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:

  • Package and Courier;
  • Less-Than-Truckload;
  • Truckload;
  • Logistics.

TFI International Inc. is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII. For more information, visit www.tfiintl.com.

FORWARD-LOOKING STATEMENTSThe Company may make statements in this report that reflect its current expectations regarding future results of operations, performance and achievements. These are “forward-looking” statements and reflect management’s current beliefs. They are based on information currently available to management. Words such as “may”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “to its knowledge”, “could”, “design”, “forecast”, “goal”, “hope”, “intend”, “likely”, “predict”, “project”, “seek”, “should”, “target”, “will”, “would” or “continue” and words and expressions of similar import are intended to identify these forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and those presently anticipated or projected.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements which reference issues only as of the date made. The following important factors could cause the Company’s actual financial performance to differ materially from that expressed in any forward-looking statement: the highly competitive market conditions, the Company’s ability to recruit, train and retain qualified drivers, fuel price variations and the Company’s ability to recover these costs from its customers, foreign currency fluctuations, the impact of environmental standards and regulations, changes in governmental regulations applicable to the Company’s operations, adverse weather conditions, accidents, the market for used equipment, changes in interest rates, cost of liability insurance coverage, downturns in general economic conditions affecting the Company and its customers, credit market liquidity, and the Company’s ability to identify, negotiate, consummate, and successfully integrate acquisitions.

The foregoing list should not be construed as exhaustive, and the Company disclaims any subsequent obligation to revise or update any previously made forward-looking statements unless required to do so by applicable securities laws. Unanticipated events are likely to occur. Readers should also refer to the section “Risks and Uncertainties” at the end of the 2020 Q3 MD&A for additional information on risk factors and other events that are not within the Company’s control. The Company’s future financial and operating results may fluctuate as a result of these and other risk factors.

NON-IFRS FINANCIAL MEASURESThis press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards as issued by the international Accounting Standards Board (IFRS) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of the non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided in the exhibits.

For further information:Alain BédardChairman, President and CEOTFI International Inc.(647) 729-4079abedard@tfiintl.com

TFI International Inc. UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONDECEMBER 31, 2020 AND 2019 
(in thousands of U.S. dollars) As at  As at  As at 
  December 31,2020  December 31,2019*  January 1,2019* 
Assets            
Cash and cash equivalents  4,297   -   - 
Trade and other receivables  597,873   452,241   463,075 
Inventoried supplies  8,761   10,659   9,350 
Current taxes recoverable  7,606   13,211   9,541 
Prepaid expenses  29,904   27,777   28,256 
Derivative financial instruments  -   30   3,980 
Assets held for sale  4,331   3,561   5,551 
Other assets  -   19,105   - 
Current assets  652,772   526,584   519,753 
Property and equipment  1,074,428   1,125,429   1,023,595 
Right-of-use assets  337,285   334,168   - 
Intangible assets  1,749,773   1,505,160   1,393,854 
Other assets  23,899   8,655   24,685 
Deferred tax assets  11,207   8,824   4,698 
Derivative financial instruments  -   -   2,159 
Non-current assets  3,196,592   2,982,236   2,448,991 
Total assets  3,849,364   3,508,820   2,968,744 
Liabilities            
Bank indebtedness  -   2,927   9,041 
Trade and other payables  468,238   341,443   348,618 
Current taxes payable  33,220   4,658   13,892 
Provisions  17,452   18,264   18,372 
Other financial liabilities  4,031   2,043   1,446 
Derivative financial instruments  -   649   - 
Long-term debt  42,997   41,305   89,679 
Lease liabilities  88,522   76,326   - 
Current liabilities  654,460   487,615   481,048 
Long-term debt  829,547   1,302,002   1,071,751 
Lease liabilities  267,464   279,265   - 
Employee benefits  15,502   14,310   11,824 
Provisions  36,803   22,522   31,375 
Other financial liabilities  22,699   2,810   4,329 
Derivative financial instruments  -   684   - 
Deferred tax liabilities  232,712   240,320   212,535 
Non-current liabilities  1,404,727   1,861,913   1,331,814 
Total liabilities  2,059,187   2,349,528   1,812,862 
Equity            
Share capital  1,120,049   678,915   697,232 
Contributed surplus  19,783   19,549   19,082 
Accumulated other comprehensive income  (154,723)  (173,398)  (200,029)
Retained earnings  805,068   634,226   639,597 
Equity attributable to owners of the Company  1,790,177   1,159,292   1,155,882 
Contingencies, letters of credit and other commitments  -   -   - 
Total liabilities and equity  3,849,364   3,508,820   2,968,744 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar 

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED DECEMBER 31, 2020 AND 2019
(In thousands of U.S. dollars, except per share amounts)        
  2020  2019* 
         
Revenue  3,484,303   3,477,576 
Fuel surcharge  296,831   425,969 
Total revenue  3,781,134   3,903,545 
         
Materials and services expenses  2,051,835   2,134,720 
Personnel expenses  888,185   980,785 
Other operating expenses  150,572   156,121 
Depreciation of property and equipment  170,520   168,720 
Depreciation of right-of-use assets  80,496   77,326 
Amortization of intangible assets  48,213   49,701 
Gain on sale of business  (306)  - 
Bargain purchase gain  (4,008)  (8,014)
Gain on sale of rolling stock and equipment  (7,888)  (15,386)
Gain on derecognition of right-of-use assets  (1,159)  (1,716)
Loss (gain) on sale of land and buildings  6   (9)
Gain on sale of assets held for sale  (11,899)  (21,571)
Total operating expenses  3,364,567   3,520,677 
         
Operating income  416,567   382,868 
         
Finance (income) costs        
Finance income  (2,776)  (2,285)
Finance costs  56,686   64,392 
Net finance costs  53,910   62,107 
         
Income before income tax  362,657   320,761 
Income tax expense  86,982   76,536 
Net income from continuing operations  275,675   244,225 
Net loss from discontinued operations  -   (10,548)
         
Net income for the year attributable to owners of the Company  275,675   233,677 
         
Earnings per share attributable to owners of the Company        
Basic earnings per share  3.09   2.80 
Diluted earnings per share  3.03   2.74 
         
Earnings per share from continuing operations attributable to owners of the Company        
Basic earnings per share  3.09   2.93 
Diluted earnings per share  3.03   2.86 
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs. 

TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED DECEMBER 31, 2020 AND 2019 
(In thousands of U.S. dollars)  
  2020  2019* 
         
Net income for the year attributable to owners of the Company  275,675   233,677 
         
Other comprehensive income (loss)        
Items that may be reclassified to income or loss in future years:        
Foreign currency translation differences  21,182   17,476 
Net investment hedge, net of tax  (2,010)  12,158 
Changes in fair value of cash flow hedge, net of tax  (487)  (7,394)
Employee benefits, net of tax  (10)  32 
Items that may never be reclassified to income        
Defined benefit plan remeasurement  (1,623)  (1,228)
Items directly reclassified to retained earnings:        
Unrealized gain on investment in equity securities measured at fair value        
through OCI, net of tax  -   970 
Other comprehensive income for the year, net of tax  17,052   22,014 
         
Total comprehensive income for the year attributable to owners of the Company  292,727   255,691 
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar        

TFI International Inc.   UNAUDITED CONSOLIDATED STATEMENTS OF EQUITYYEARS ENDED DECEMBER 31, 2020 AND 2019 
(In thousands of U.S. dollars)                 Accumulated             
         Accumulated      foreign  Accumulated         
          unrealized      currency  unrealized      Total equity 
          loss on  Accumulated  translation  loss on      attributable 
          employee  cash flow  differences  investment in      to owners 
  Share  Contributed  benefit  hedge  and net invest-  equity  Retained  of the 
  capital  surplus  plans  gain (loss)  ment hedge  securities  earnings  Company 
                                 
Balance as at December 31, 2019*  678,915   19,549   (369)  487   (173,516)  -   634,226   1,159,292 
                                 
Net income for the year  -   -   -   -   -   -   275,675   275,675 
Other comprehensive (loss) income for the year, net of tax  -   -   (10)  (487)  19,172   -   (1,623)  17,052 
Total comprehensive (loss) income for the year  -   -   (10)  (487)  19,172   -   274,052   292,727 
                                 
Share-based payment transactions  -   7,046   -   -   -   -   -   7,046 
Stock options exercised  25,915   (4,554)  -   -   -   -   -   21,361 
Issuance of shares, net of expenses  425,350   -   -   -   -   -   -   425,350 
Dividends to owners of the Company  -   -   -   -   -   -   (72,735)  (72,735)
Repurchase of own shares  (12,025)  -   -   -   -   -   (25,996)  (38,021)
Net settlement of restricted share units  1,894   (2,258)  -   -   -   -   (4,479)  (4,843)
Total transactions with owners, recorded directly in equity  441,134   234   -   -   -   -   (103,210)  338,158 
                                 
Balance as at December 31, 2020  1,120,049   19,783   (379)  -   (154,344)  -   805,068   1,790,177 
                                 
Balance as at January 1, 2019*  697,232   19,082   (401)  7,881   (203,150)  (4,359)  639,597   1,155,882 
                                 
Adjustment on initial application of IFRS 16  -   -   -   -   -   -   (18,880)  (18,880)
                                 
Net income for the year  -   -   -   -   -   -   233,677   233,677 
Other comprehensive (loss) income for the year, net of tax  -   -   32   (7,394)  29,634   970   (1,228)  22,014 
Realized loss on equity securities, net of tax  -   -   -   -   -   3,389   (3,389)  - 
Total comprehensive (loss) income for the year  -   -   32   (7,394)  29,634   4,359   229,060   255,691 
                                 
Share-based payment transactions  -   6,227   -   -   -   -   -   6,227 
Stock options exercised  20,580   (4,233)  -   -   -   -   -   16,347 
Dividends to owners of the Company  -   -   -   -   -   -   (61,631)  (61,631)
Repurchase of own shares  (39,621)  -   -   -   -   -   (152,835)  (192,456)
Net settlement of restricted share units  724   (1,527)  -   -   -   -   (1,085)  (1,888)
Total transactions with owners, recorded directly in equity  (18,317)  467   -   -   -   -   (215,551)  (233,401)
                                 
Balance as at December 31, 2019*  678,915   19,549   (369)  487   (173,516)  -   634,226   1,159,292 
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar 

 

TFI International Inc. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED DECEMBER 31, 2020 AND 2019 
(In thousands of U.S. dollars)       
  2020  2019* 
         
Cash flows from operating activities        
Net income for the year  275,675   233,677 
Net loss from discontinued operations  -   (10,548)
Net income from continuing operations  275,675   244,225 
Adjustments for        
Depreciation of property and equipment  170,520   168,720 
Depreciation of right-of-use assets  80,496   77,326 
Amortization of intangible assets  48,213   49,701 
Share-based payment transactions  7,046   6,227 
Net finance costs  53,910   62,107 
Income tax expense  86,982   76,536 
Gain on sale of business  (306)  - 
Bargain purchase gain  (4,008)  (8,014)
Gain on sale of property and equipment  (7,882)  (15,395)
Gain on derecognition of right-of-use assets  (1,159)  (1,716)
Gain on sale of assets held for sale  (11,899)  (21,571)
Provisions and employee benefits  6,274   (3,696)
   703,862   634,450 
Net change in non-cash operating working capital  33,661   16,337 
Cash generated from operating activities  737,523   650,787 
Interest paid  (50,366)  (65,075)
Income tax paid  (73,256)  (85,216)
Settlement of derivative contract  (3,039)  - 
Net cash from continuing operating activities  610,862   500,496 
Net cash used in discontinued operating activities  -   (12,022)
Net cash from operating activities  610,862   488,474 
         
Cash flows from investing activities        
Purchases of property and equipment  (142,710)  (261,295)
Proceeds from sale of property and equipment  52,116   71,754 
Proceeds from sale of assets held for sale  24,480   39,146 
Purchases of intangible assets  (1,665)  (3,636)
Proceeds from sale of business  2,351   - 
Business combinations, net of cash acquired  (327,650)  (150,912)
Proceeds from sale of intangible assets  -   201 
Purchases of investments  (7,446)  (600)
Proceeds from sale of investments  -   1,814 
Proceeds from collection of promissory notes  18,892   - 
Others  3,151   (329)
Net cash used in continuing investing activities  (378,481)  (303,857)
         
Cash flows from financing activities        
Decrease in bank indebtedness  (2,231)  (6,083)
Proceeds from long-term debt  33,175   328,045 
Repayment of long-term debt  (191,221)  (103,247)
Net decrease in revolving facility  (326,201)  (88,229)
Repayment of lease liabilities  (82,587)  (75,072)
Increase (decrease) in other financial liabilities  4,738   (1,556)
Dividends paid  (67,604)  (60,478)
Repurchase of own shares  (38,021)  (192,455)
Proceeds from the issuance of common shares, net of expenses  425,350   - 
Proceeds from exercise of stock options  21,361   16,347 
Repurchase of own shares for restricted share unit settlement  (4,843)  (1,889)
Net cash used in continuing financing activities  (228,084)  (184,617)
         
Net change in cash and cash equivalents  4,297   - 
Cash and cash equivalents, beginning of year  -   - 
Cash and cash equivalents, end of year  4,297   - 
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar        

SEGMENT INFORMATION

Geographical information (Unaudited)

Revenue is attributed to geographical locations based on the origin of service’s location.

Total revenue Package  Less-                 
  and  Than-                 
  Courier  Truckload  Truckload  Logistics  Eliminations  Total 
2020                        
Canada  529,155   517,199   725,347   239,413   (26,019)  1,985,095 
United States  -   72,036   1,023,012   686,811   (4,726)  1,777,133 
Mexico  -   -   -   18,906   -   18,906 
Total  529,155   589,235   1,748,359   945,130   (30,745)  3,781,134 
2019*                        
Canada  539,610   607,086   799,396   216,232   (28,352)  2,133,972 
United States  -   120,162   1,092,159   542,911   (1,349)  1,753,883 
Mexico  -   -   -   15,690   -   15,690 
Total  539,610   727,248   1,891,555   774,833   (29,701)  3,903,545 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Package and Courier

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2020  %  2019*  %  2020  %  2019*  % 
Total revenue  167,555       145,018       529,155       539,610     
Fuel surcharge  (13,461)      (17,717)      (47,665)      (65,944)    
Revenue  154,094   100.0%  127,301   100.0%  481,490   100.0%  473,666   100.0%
Materials and services expenses (net of fuel surcharge)  72,115   46.8%  55,737   43.8%  220,741   45.8%  203,441   43.0%
Personnel expenses  39,821   25.8%  35,222   27.7%  133,552   27.7%  138,125   29.2%
Other operating expenses  6,234   4.0%  7,015   5.5%  23,145   4.8%  25,973   5.5%
Depreciation of property and equipment  3,168   2.1%  2,606   2.0%  11,539   2.4%  10,046   2.1%
Depreciation of right-of-use assets  3,210   2.1%  3,713   2.9%  12,871   2.7%  13,956   2.9%
Amortization of intangible assets  248   0.2%  234   0.2%  947   0.2%  891   0.2%
(Gain) loss on sale of rolling stock and equipment  (10)  0.0%  47   0.0%  43   0.0%  (135)  -0.0%
Gain on derecognition of right-of-use assets  -   0.0%  (15)  -0.0%  (10)  -0.0%  (16)  -0.0%
(Gain) loss on sale of land and buildings and assets held for sale  (93)  (0.1)%  62   0.0%  (91)  -0.0%  (843)  -0.2%
Operating income  29,401   19.1%  22,680   17.8%  78,753   16.4%  82,228   17.4%
Adjusted EBITDA  35,934   23.3%  29,295   23.0%  104,019   21.6%  106,278   22.4%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Operational data Three months ended December 31  Years ended December 31 
(unaudited) 2020  2019*  Variance  %  2020  2019*  Variance  % 
Revenue per pound (including fuel) $0.40  $0.36  $0.04   11.1% $0.36  $0.35  $0.01   2.9%
Revenue per pound (excluding fuel) $0.36  $0.31  $0.05   16.1% $0.33  $0.31  $0.02   6.5%
Revenue per shipment (including fuel) $6.40  $6.52  $(0.12)  -1.8% $6.24  $6.29  $(0.05)  -0.8%
Tonnage (in thousands of metric tons)  192   185   7   3.8%  658   695   (37)  -5.3%
Shipments (in thousands)  26,185   22,244   3,941   17.7%  84,854   85,743   (889)  -1.0%
Average weight per shipment (in lbs.)  16.16   18.33   (2.17)  -11.8%  17.09   17.86   (0.77)  -4.3%
Vehicle count, average  1,008   972   36   3.7%  1,023   981   42   4.3%
Weekly revenue per vehicle (incl. fuel, in thousands of dollars) $12.79  $11.48  $1.31   11.4% $9.95  $10.58  $(0.63)  -6.0%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Less-Than-Truckload

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2020  %  2019*  %  2020  %  2019*  % 
Total revenue  157,628       175,319       589,235       727,249     
Fuel surcharge  (16,547)      (24,016)      (66,384)      (100,030)    
Revenue  141,081   100.0%  151,303   100.0%  522,851   100.0%  627,219   100.0%
Materials and services expenses (net of fuel surcharge)  67,140   47.6%  75,026   49.6%  252,334   48.3%  315,648   50.3%
Personnel expenses  33,338   23.6%  38,202   25.2%  116,257   22.2%  159,820   25.5%
Other operating expenses  3,587   2.5%  7,788   5.1%  16,593   3.2%  26,720   4.3%
Depreciation of property and equipment  4,886   3.5%  5,148   3.4%  19,407   3.7%  19,736   3.1%
Depreciation of right-of-use assets  5,546   3.9%  6,159   4.1%  22,555   4.3%  24,825   4.0%
Amortization of intangible assets  2,179   1.5%  2,129   1.4%  8,392   1.6%  8,359   1.3%
Gain on sale of rolling stock and equipment  (62)  -0.0%  (147)  -0.1%  (519)  -0.1%  (510)  -0.1%
Gain on derecognition of right-of-use assets  (6)  -0.0%  (835)  -0.6%  (175)  -0.0%  (1,100)  -0.2%
Loss (gain) on sale of land and buildings and assets held for sale  9   0.0%  (1,478)  -1.0%  57   0.0%  (8,509)  -1.4%
Operating income  24,464   17.3%  19,311   12.8%  87,950   16.8%  82,230   13.1%
Adjusted EBITDA  37,084   26.3%  31,269   20.7%  138,361   26.5%  126,641   20.2%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Operational data Three months ended December 31  Years ended December 31 
(unaudited) 2020  2019*  Variance  %  2020  2019*  Variance  % 
Adjusted operating ratio  82.7%  88.2%          83.2%  88.2%        
Revenue per hundredweight (excluding fuel) $10.15  $9.99   0.16   1.6% $9.77  $10.01  $(0.24)  -2.4%
Revenue per shipment (including fuel) $241.02  $253.35  $(12.33)  -4.9% $240.11  $242.98  $(2.87)  -1.2%
Tonnage (in thousands of tons)  695   757   (62)  -8.2%  2,675   3,132   (457)  -14.6%
Shipments (in thousands)  654   692   (38)  -5.5%  2,454   2,993   (539)  -18.0%
Average weight per shipment (in lbs)  2,125   2,188   (63)  -2.9%  2,180   2,093   87   4.2%
Average length of haul (in miles)  811   839   (28)  -3.3%  818   830   (12)  -1.4%
Vehicle count, average  902   1,016   (114)  -11.2%  918   1,024   (106)  -10.4%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Truckload

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2020  %  2019*  %  2020  %  2019*  % 
Total revenue  477,262       469,798       1,748,359       1,891,554     
Fuel surcharge  (39,127)      (57,038)      (163,522)      (233,757)    
Revenue  438,135   100.0%  412,760   100.0%  1,584,837   100.0%  1,657,797   100.0%
Materials and services expenses (net of fuel surcharge)  188,660   43.1%  178,936   43.4%  654,220   41.3%  707,028   42.6%
Personnel expenses  135,911   31.0%  134,572   32.6%  503,242   31.8%  549,723   33.2%
Other operating expenses  14,323   3.3%  12,534   3.0%  52,337   3.3%  53,472   3.2%
Depreciation of property and equipment  34,986   8.0%  36,218   8.8%  136,859   8.6%  136,139   8.2%
Depreciation of right-of-use assets  10,055   2.3%  7,091   1.7%  32,229   2.0%  24,263   1.5%
Amortization of intangible assets  5,171   1.2%  5,678   1.4%  19,891   1.3%  22,415   1.4%
Gain on sale of business  (306)  -0.1%     0.0%  (306)  -0.0%     0.0%
Gain on sale of rolling stock and equipment  (2,129)  -0.5%  (3,603)  -0.9%  (7,785)  -0.5%  (14,698)  -0.9%
Gain on derecognition of right-of-use assets  (13)  -0.0%  (126)  -0.0%  (332)  -0.0%  (369)  -0.0%
Gain on sale of land and buildings and assets held for sale  (2,127)  -0.5%  (4,957)  -1.2%  (11,864)  -0.7%  (12,348)  -0.7%
Operating income  53,604   12.2%  46,417   11.2%  206,346   13.0%  192,172   11.6%
Adjusted EBITDA  101,383   23.1%  90,447   21.9%  383,155   24.2%  362,641   21.9%
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar. 

Operational data (unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2020  2019*  Variance  %  2020  2019*  Variance  % 
U.S. based Conventional TL                                
Revenue  161,476   156,678   4,798   3.1%  632,590   646,782   (14,192)  -2.2%
Adjusted operating ratio  91.5%  92.4%          92.0%  91.5%        
Total mileage (in thousands)  86,427   84,291   2,136   2.5%  349,349   351,490   (2,141)  -0.6%
Tractor count, average  2,932   2,929   3   0.1%  2,949   2,960   (11)  -0.4%
Trailer count, average  11,005   11,007   (2)  -0.0%  10,938   11,008   (70)  -0.6%
Tractor age  2.2   1.8   0.4   22.2%  2.2   1.8   0.4   22.2%
Trailer age  6.6   6.5   0.1   1.5%  6.6   6.5   0.1   1.5%
Number of owner operators, average  560   424   136   32.1%  509   400   109   27.3%
Canadian based Conventional TL                                
Revenue  58,497   56,668   1,829   3.2%  206,418   226,816   (20,398)  -9.0%
Adjusted operating ratio  85.2%  85.9%          86.3%  85.6%        
Total mileage (in thousands)  23,095   24,236   (1,141)  -4.7%  89,212   98,943   (9,731)  -9.8%
Tractor count, average  623   641   (18)  -2.8%  606   684   (78)  -11.4%
Trailer count, average  2,809   2,826   (17)  -0.6%  2,796   2,884   (88)  -3.1%
Tractor age  2.5   2.3   0.2   8.7%  2.5   2.3   0.2   8.7%
Trailer age  5.9   5.4   0.5   9.3%  5.9   5.4   0.5   9.3%
Number of owner operators, average  314   317   (3)  -0.9%  302   333   (31)  -9.3%
Specialized TL                                
Revenue  219,093   200,452   18,641   9.3%  749,655   791,087   (41,432)  -5.2%
Adjusted operating ratio  86.8%  89.3%          84.6%  88.3%        
Tractor count, average  2,314   2,189   125   5.7%  2,096   2,099   (3)  -0.1%
Trailer count, average  6,619   6,142   477   7.8%  6,251   6,121   130   2.1%
Tractor age  4.0   4.0   0.0   0.0%  4.0   4.0   0.0   0.0%
Trailer age  12.9   11.7   1.2   10.3%  12.9   11.7   1.2   10.3%
Number of owner operators, average  1,132   1,224   (92)  -7.5%  1,115   1,191   (76)  -6.4%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Logistics

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2020  %  2019*  %  2020  %  2019*  % 
Total revenue  327,689       206,268       945,130       774,833     
Fuel surcharge  (5,370)      (7,307)      (21,674)      (29,511)    
Revenue  322,319   100.0%  198,961   100.0%  923,456   100.0%  745,322   100.0%
Materials and services expenses (net of fuel surcharge)  241,798   75.0%  140,019   70.4%  668,225   72.4%  524,098   70.3%
Personnel expenses  24,381   7.6%  25,427   12.8%  93,579   10.1%  96,593   13.0%
Other operating expenses  19,983   6.2%  11,745   5.9%  48,012   5.2%  41,865   5.6%
Depreciation of property and equipment  596   0.2%  640   0.3%  2,336   0.3%  2,147   0.3%
Depreciation of right-of-use assets  3,138   1.0%  2,520   1.3%  13,204   1.4%  14,148   1.9%
Amortization of intangible assets  5,608   1.7%  4,557   2.3%  17,889   1.9%  17,302   2.3%
Bargain purchase gain           0.0%  (4,008)  -0.4%  (8,014)  -1.1%
(Gain) loss on sale of rolling stock and equipment  368   0.1%  (5)  -0.0%  373   0.0%  (43)  -0.0%
Gain on derecognition of right-of-use assets  (20)  -0.0%  (158)  -0.1%  (618)  -0.1%  (221)  -0.0%
Loss on sale of land and buildings and assets held for sale  5   0.0%     0.0%  5   0.0%     0.0%
Operating income  26,462   8.2%  14,216   7.1%  84,459   9.1%  57,447   7.7%
Adjusted EBITDA  35,809   11.1%  21,933   11.0%  113,885   12.3%  83,030   11.1%

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

NON-IFRS FINANCIAL MEASURES

This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of IFRS and non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided below.

Adjusted net income: Net income or loss excluding amortization of intangible assets related to business acquisitions, net change in the fair value and accretion expense of contingent considerations, net change in the fair value of derivatives, net foreign exchange gain or loss, impairment of intangible assets, bargain purchase gain, gain or loss on sale of land and buildings, assets held for sale and sale of business, and loss from discontinued operations, net of tax and U.S. Tax Reform. In presenting an adjusted net income and adjusted EPS, the Company’s intent is to help provide an understanding of what would have been the net income and earnings per share in a context of significant business combinations and excluding specific impacts and to reflect earnings from a strictly operating perspective. The amortization of intangible assets related to business acquisitions comprises amortization expense of customer relationships, trademarks and non-compete agreements accounted for in business combinations and the income tax effects related to this amortization. Management also believes, in excluding amortization of intangible assets related to business acquisitions, it provides more information on the amortization of intangible asset expense portion, net of tax, that will not have to be replaced to preserve the Company’s ability to generate similar future cash flows. The Company excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Excluding these items does not imply they are necessarily non-recurring.

Adjusted net income reconciliation:

(unaudited)(in thousands of U.S.dollars, except per share data) Three months endedDecember 31  Years endedDecember 31 
  2020  2019*  2020  2019* 
Net income  86,328   56,680   275,675   233,677 
Amortization of intangible assets related to business acquisitions, net of tax  10,221   9,263   35,286   35,756 
Net change in fair value and accretion expense of contingent considerations, net of tax  104   40   165   146 
Net change in fair value of derivatives, net of tax  (373)     (373)   
Net foreign exchange (gain) loss, net of tax  227   (328)  (895)  161 
Gain on sale of business, net of tax  (230)     (230)   
Bargain purchase gain        (4,008)  (8,014)
Gain on sale of land and buildings and assets held for sale, net of tax  (1,848)  (6,872)  (10,308)  (18,691)
Net loss from discontinued operations     1,302      10,548 
U.S. Tax Reform  (1,072)     4,451    
Adjusted net income  93,357   60,085   299,763   253,583 
Adjusted EPS – basic  1.00   0.74   3.36   3.04 
Adjusted EPS – diluted  0.98   0.72   3.30   2.97 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Adjusted earnings per share (adjusted “EPS”) - basic: Adjusted net income divided by the weighted average number of common shares.

Adjusted EPS - diluted: Adjusted net income divided by the weighted average number of diluted common shares.

Adjusted EBITDA: Net income or loss from continuing operations before finance income and costs, income tax expense, depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of land and buildings, assets held for sale and sale of business.

Segmented adjusted EBITDA refers to operating income (loss) from continuing operations before depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of business, land and buildings, and assets held for sale. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.

Consolidated adjusted EBITDA reconciliation:

(unaudited)(in thousands of U.S. dollars) Three months endedDecember 31  Years endedDecember 31 
  2020  2019*  2020  2019* 
Net income from continuing operations  86,328   57,955   275,675   244,225 
Net finance costs  15,382   15,552   53,910   62,107 
Income tax expense  15,412   19,277   86,982   76,536 
Depreciation of property and equipment  43,753   44,721   170,520   168,720 
Depreciation of right-of-use assets  21,618   19,508   80,496   77,326 
Amortization of intangible assets  13,557   12,757   48,213   49,701 
Gain on sale of business  (306)     (306)   
Bargain purchase gain        (4,008)  (8,014)
(Gain) loss on sale of land and buildings  5   (8)  6   (9)
Gain on sale of assets held for sale  (2,211)  (6,365)  (11,899)  (21,571)
Adjusted EBITDA  193,538   163,397   699,589   649,021 

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Segmented adjusted EBITDA from continuing operations reconciliation:

(unaudited)(in thousands of U.S. dollars) Three months endedDecember 31  Years endedDecember 31 
  2020  2019*  2020  2019* 
Package and Courier                
Operating income  29,401   22,680   78,753   82,228 
Depreciation and amortization  6,626   6,553   25,357   24,893 
Gain on sale of land and buildings  (1)         
(Gain) loss on sale of assets held for sale  (92)  62   (91)  (843)
Adjusted EBITDA  35,934   29,295   104,019   106,278 
Less-Than-Truckload                
Operating income  24,464   19,311   87,950   82,230 
Depreciation and amortization  12,611   13,436   50,354   52,920 
Loss on sale of land and buildings  1      1    
(Gain) loss on sale of assets held for sale  8   (1,478)  56   (8,509)
Adjusted EBITDA  37,084   31,269   138,361   126,641 
Truckload                
Operating income  53,604   46,417   206,346   192,172 
Depreciation and amortization  50,212   48,987   188,979   182,817 
Gain on sale of business  (306)     (306)   
Gain on sale of land and buildings     (8)     (9)
Gain on sale of assets held for sale  (2,127)  (4,949)  (11,864)  (12,339)
Adjusted EBITDA  101,383   90,447   383,155   362,641 
Logistics                
Operating income  26,462   14,216   84,459   57,447 
Depreciation and amortization  9,342   7,717   33,429   33,597 
Bargain purchase gain        (4,008)  (8,014)
Loss on sale of land and buildings  5      5    
Adjusted EBITDA  35,809   21,933   113,885