TFI International Announces 2020 Fourth Quarter and Full-Year Results Toronto Stock Exchange:TFII
- 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 $3.94)
MONTREAL, Feb. 08, 2021 (GLOBE NEWSWIRE) — TFI International Inc. (NYSE and TSX: TFII), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and full year ended December 31, 2020.
“TFI International had a successful 2020 that began with our listing on the New York Stock exchange and culminated with our robust fourth quarter results that featured a 26% increase in operating income and a 36% increase in adjusted diluted EPS,” said Alain Bédard, Chairman, President and Chief Executive Officer. “Throughout the ongoing global pandemic, we’ve remained true to our operating philosophy including our asset-right business plan and an emphasis on free cash flow that we put toward growth objectives while returning excess capital to our shareholders. We strategically made thirteen acquisitions during 2020 including five during the fourth quarter, and in the new year have already announced two additional strategic acquisitions, including the transformational purchase of UPS Freight. I wish to thank all of our employees for their extraordinary efforts during an unprecedented year, placing TFI International in an enviable position of strength to create additional shareholder value as we move through 2021.”
SELECTED FINANCIAL DATA AND HIGHLIGHTS (UNAUDITED)
Financial highlights | Quarters ended December 31 |
Years ended December 31 |
||||||
(in millions of U.S. dollars, except per share data) | 2020 | 2019* | 2020 | 2019* | ||||
Total revenue | 1,122.0 | 989.0 | 3,781.1 | 3,903.5 | ||||
Revenue before fuel surcharge | 1,048.1 | 883.7 | 3,484.3 | 3,477.6 | ||||
Adjusted EBITDA1 | 193.5 | 163.4 | 699.6 | 649.0 | ||||
Operating income from continuing operations | 117.1 | 92.8 | 416.6 | 382.9 | ||||
Net cash from continuing operating activities | 164.9 | 133.3 | 610.9 | 500.5 | ||||
Adjusted net income1 | 93.4 | 60.1 | 299.8 | 253.6 | ||||
Adjusted EPS – diluted1 ($) | 0.98 | 0.72 | 3.30 | 2.97 | ||||
Net income from continuing operations | 86.3 | 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 RESULTS
Total 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 RESULTS
Total 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) |
Package and Courier |
Less- Than-Truckload |
Truckload | Logistics | Corporate | Eliminations | Total | |||||||
Three months ended December 31, 2020 | ||||||||||||||
Revenue before fuel surcharge1 | 154,094 | 141,081 | 438,135 | 322,319 | — | (7,482 | ) | 1,048,147 | ||||||
% of total revenue2 | 15 | % | 14 | % | 42 | % | 29 | % | 100 | % | ||||
Adjusted EBITDA | 35,934 | 37,084 | 101,383 | 35,809 | (16,672 | ) | — | 193,538 | ||||||
Adjusted EBITDA margin3 | 23.3 | % | 26.3 | % | 23.1 | % | 11.1 | % | 18.5 | % | ||||
Operating income (loss) | 29,401 | 24,464 | 53,604 | 26,462 | (16,809 | ) | — | 117,122 | ||||||
Operating margin3 | 19.1 | % | 17.3 | % | 12.2 | % | 8.2 | % | 11.2 | % | ||||
Net capital expenditures4 | 2,550 | 6,194 | 21,155 | 70 | 244 | — | 30,213 | |||||||
Three months ended December 31, 2019* | ||||||||||||||
Revenue before fuel surcharge1 | 127,301 | 151,303 | 412,760 | 198,961 | — | (6,608 | ) | 883,717 | ||||||
% of total revenue2 | 15 | % | 18 | % | 47 | % | 20 | % | 100 | % | ||||
Adjusted EBITDA | 29,295 | 31,269 | 90,447 | 21,933 | (9,547 | ) | — | 163,397 | ||||||
Adjusted EBITDA margin3 | 23.0 | % | 20.7 | % | 21.9 | % | 11.0 | % | 18.5 | % | ||||
Operating income (loss) | 22,680 | 19,311 | 46,417 | 14,216 | (9,840 | ) | — | 92,784 | ||||||
Operating margin3 | 17.8 | % | 12.8 | % | 11.2 | % | 7.1 | % | 10.5 | % | ||||
Net capital expenditures4 | 3,321 | 27,945 | 17,783 | 1,002 | 5,158 | — | 55,209 | |||||||
YTD December 31, 2020 | ||||||||||||||
Revenue before fuel surcharge1 | 481,490 | 522,851 | 1,584,837 | 923,456 | — | (28,331 | ) | 3,484,303 | ||||||
% of total revenue2 | 14 | % | 15 | % | 46 | % | 25 | % | 100 | % | ||||
Adjusted EBITDA | 104,019 | 138,361 | 383,155 | 113,885 | (39,831 | ) | — | 699,589 | ||||||
Adjusted EBITDA margin3 | 21.6 | % | 26.5 | % | 24.2 | % | 12.3 | % | 20.1 | % | ||||
Operating income (loss) | 78,753 | 87,950 | 206,346 | 84,459 | (40,941 | ) | — | 416,567 | ||||||
Operating margin3 | 16.4 | % | 16.8 | % | 13.0 | % | 9.1 | % | 12.0 | % | ||||
Total assets less intangible assets | 194,631 | 404,074 | 1,193,730 | 272,592 | 34,564 | — | 2,099,591 | |||||||
Net capital expenditures4 | 16,798 | 19,230 | 29,179 | 567 | 444 | — | 66,218 | |||||||
YTD December 31, 2019* | ||||||||||||||
Revenue before fuel surcharge1 | 473,666 | 627,219 | 1,657,797 | 745,322 | — | (26,428 | ) | 3,477,576 | ||||||
% of total revenue2 | 14 | % | 18 | % | 48 | % | 20 | % | 100 | % | ||||
Adjusted EBITDA | 106,278 | 126,641 | 362,641 | 83,030 | (29,569 | ) | — | 649,021 | ||||||
Adjusted EBITDA margin3 | 22.4 | % | 20.2 | % | 21.9 | % | 11.1 | % | 18.7 | % | ||||
Operating income (loss) | 82,228 | 82,230 | 192,172 | 57,447 | (31,209 | ) | — | 382,868 | ||||||
Operating margin3 | 17.4 | % | 13.1 | % | 11.6 | % | 7.7 | % | 11.0 | % | ||||
Total assets less intangible assets | 180,811 | 407,358 | 1,206,568 | 159,152 | 49,771 | — | 2,003,660 | |||||||
Net capital expenditures4 | 10,967 | 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) costs
1 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 CURRENCY
The 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 CALL
TFI 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, February
22, 2021, by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 9095057.
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:
- 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 STATEMENTS
The 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 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 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 Bédard
Chairman, President and CEO
TFI International Inc.
(647) 729-4079
[email protected]
TFI International Inc. | UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DECEMBER 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 INCOME YEARS 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 INCOME YEARS 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 EQUITY YEARS 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 FLOWS YEARS 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 ended December 31 |
Years ended December 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 ended December 31 |
Years ended December 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 ended December 31 |
Years ended December 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 | 83,030 | ||||||||||||
Corporate | ||||||||||||||||
Operating loss | (16,809 | ) | (9,840 | ) | (40,941 | ) | (31,209 | ) | ||||||||
Depreciation and amortization | 137 | 293 | 1,110 | 1,520 | ||||||||||||
Loss on sale of assets held for sale | — | — | — | 120 | ||||||||||||
Adjusted EBITDA | (16,672 | ) | (9,547 | ) | (39,831 | ) | (29,569 | ) |
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.
Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue before fuel surcharge.
Operating margin from continuing operations is calculated as operating income (loss) from continuing operations as a percentage of revenue before fuel surcharge.
Adjusted operating ratio: Operating expenses from continuing operations before 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 (“Adjusted operating expenses”), net of fuel surcharge revenue, divided by revenue before fuel surcharge. Although the adjusted operating ratio is not a recognized financial measure defined by IFRS, it is a widely recognized measure in the transportation industry, which the Company believes provides a comparable benchmark for evaluating the Company’s performance. Also, 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.
Consolidated adjusted operating ratio from continuing operations reconciliation:
(unaudited) (in thousands of U.S. dollars) |
Three months ended December 31 |
Years ended December 31 |
||||||||||||||
2020 | 2019* | 2020 | 2019* | |||||||||||||
Operating expenses | 1,004,884 | 896,248 | 3,364,567 | 3,520,677 | ||||||||||||
Gain on sale of business | 306 | — | 306 | — | ||||||||||||
Bargain purchase gain | — | — | 4,008 | 8,014 | ||||||||||||
Gain (loss) on sale of land and building | (5 | ) | 8 | (6 | ) | 9 | ||||||||||
Gain on sale of assets held for sale | 2,211 | 6,365 | 11,899 | 21,571 | ||||||||||||
Adjusted operating expenses | 1,007,396 | 902,621 | 3,380,774 | 3,550,271 | ||||||||||||
Fuel surcharge revenue | (73,859 | ) | (105,315 | ) | (296,831 | ) | (425,969 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 933,537 | 797,306 | 3,083,943 | 3,124,302 | ||||||||||||
Revenue before fuel surcharge | 1,048,147 | 883,717 | 3,484,303 | 3,477,576 | ||||||||||||
Adjusted operating ratio | 89.1 | % | 90.2 | % | 88.5 | % | 89.8 | % | ||||||||
*Recasted for change in presentation currency from Canadian dollar to U.S. dollar. |
Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations:
(unaudited) (in thousands of U.S. dollars) |
Three months ended December 31 |
Years ended December 31 |
||||||||||||||
2020 | 2019* | 2020 | 2019* | |||||||||||||
Less-Than-Truckload | ||||||||||||||||
Total revenue | 157,628 | 175,319 | 589,235 | 727,249 | ||||||||||||
Total operating expenses | 133,164 | 156,008 | 501,285 | 645,019 | ||||||||||||
Operating income | 24,464 | 19,311 | 87,950 | 82,230 | ||||||||||||
Operating expenses | 133,164 | 156,008 | 501,285 | 645,019 | ||||||||||||
Gain (loss) on sale of land and buildings and assets held for sale | (9 | ) | 1,478 | (57 | ) | 8,509 | ||||||||||
Adjusted operating expenses | 133,155 | 157,486 | 501,228 | 653,528 | ||||||||||||
Fuel surcharge revenue | (16,547 | ) | (24,016 | ) | (66,384 | ) | (100,030 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 116,608 | 133,470 | 434,844 | 553,498 | ||||||||||||
Revenue before fuel surcharge | 141,081 | 151,303 | 522,851 | 627,219 | ||||||||||||
Adjusted operating ratio | 82.7 | % | 88.2 | % | 83.2 | % | 88.2 | % | ||||||||
Truckload | ||||||||||||||||
Total revenue | 477,262 | 469,798 | 1,748,359 | 1,891,554 | ||||||||||||
Total operating expenses | 423,658 | 423,381 | 1,542,013 | 1,699,382 | ||||||||||||
Operating income | 53,604 | 46,417 | 206,346 | 192,172 | ||||||||||||
Operating expenses | 423,658 | 423,381 | 1,542,013 | 1,699,382 | ||||||||||||
Gain on sale of business | 306 | — | 306 | — | ||||||||||||
Gain on sale of land and buildings and assets held for sale | 2,127 | 4,957 | 11,864 | 12,348 | ||||||||||||
Adjusted operating expenses | 426,091 | 428,338 | 1,554,183 | 1,711,730 | ||||||||||||
Fuel surcharge revenue | (39,127 | ) | (57,038 | ) | (163,522 | ) | (233,757 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 386,964 | 371,300 | 1,390,661 | 1,477,973 | ||||||||||||
Revenue before fuel surcharge | 438,135 | 412,760 | 1,584,837 | 1,657,797 | ||||||||||||
Adjusted operating ratio | 88.3 | % | 90.0 | % | 87.7 | % | 89.2 | % | ||||||||
Truckload – Revenue before fuel surcharge | ||||||||||||||||
U.S. based Conventional TL | 161,476 | 156,678 | 632,590 | 646,782 | ||||||||||||
Canadian based Conventional TL | 58,497 | 56,668 | 206,418 | 226,816 | ||||||||||||
Specialized TL | 219,093 | 200,452 | 749,655 | 791,087 | ||||||||||||
Eliminations | (931 | ) | (1,038 | ) | (3,826 | ) | (6,888 | ) | ||||||||
438,135 | 412,760 | 1,584,837 | 1,657,797 | |||||||||||||
Truckload – Fuel surcharge revenue | ||||||||||||||||
U.S. based Conventional TL | 19,006 | 26,720 | 81,222 | 112,165 | ||||||||||||
Canadian based Conventional TL | 4,798 | 7,677 | 19,408 | 31,628 | ||||||||||||
Specialized TL | 15,244 | 22,686 | 63,018 | 90,650 | ||||||||||||
Eliminations | 79 | (45 | ) | (126 | ) | (686 | ) | |||||||||
39,127 | 57,038 | 163,522 | 233,757 | |||||||||||||
Truckload – Operating income | ||||||||||||||||
U.S. based Conventional TL | 13,722 | 11,931 | 51,857 | 55,055 | ||||||||||||
Canadian based Conventional TL | 8,673 | 8,001 | 28,337 | 32,610 | ||||||||||||
Specialized TL | 31,209 | 26,485 | 126,152 | 104,507 | ||||||||||||
53,604 | 46,417 | 206,346 | 192,172 |
Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations (continued):
(unaudited) (in thousands of U.S. dollars) |
Three months ended December 31 |
Years ended December 31 |
||||||||||||||
2020 | 2019* | 2020 | 2019* | |||||||||||||
U.S. based Conventional TL | ||||||||||||||||
Operating expenses** | 166,760 | 171,467 | 661,955 | 703,892 | ||||||||||||
Gain on sale of land and buildings and assets held for sale | — | — | 1,103 | — | ||||||||||||
Adjusted operating expenses | 166,760 | 171,467 | 663,058 | 703,892 | ||||||||||||
Fuel surcharge revenue | (19,006 | ) | (26,720 | ) | (81,222 | ) | (112,165 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 147,754 | 144,747 | 581,836 | 591,727 | ||||||||||||
Revenue before fuel surcharge | 161,476 | 156,678 | 632,590 | 646,782 | ||||||||||||
Adjusted operating ratio | 91.5 | % | 92.4 | % | 92.0 | % | 91.5 | % | ||||||||
Canadian based Conventional TL | ||||||||||||||||
Operating expenses** | 54,622 | 56,344 | 197,489 | 225,834 | ||||||||||||
Gain on sale of land and buildings and assets held for sale | — | 8 | — | 8 | ||||||||||||
Adjusted operating expenses | 54,622 | 56,352 | 197,489 | 225,842 | ||||||||||||
Fuel surcharge revenue | (4,798 | ) | (7,677 | ) | (19,408 | ) | (31,628 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 49,824 | 48,675 | 178,081 | 194,214 | ||||||||||||
Revenue before fuel surcharge | 58,497 | 56,668 | 206,418 | 226,816 | ||||||||||||
Adjusted operating ratio | 85.2 | % | 85.9 | % | 86.3 | % | 85.6 | % | ||||||||
Specialized TL | ||||||||||||||||
Operating expenses** | 203,128 | 196,653 | 686,521 | 777,230 | ||||||||||||
Gain on sale of business | 306 | — | 306 | — | ||||||||||||
Gain on sale of assets held for sale | 2,127 | 4,949 | 10,761 | 12,340 | ||||||||||||
Adjusted operating expenses | 205,561 | 201,602 | 697,588 | 789,570 | ||||||||||||
Fuel surcharge revenue | (15,244 | ) | (22,686 | ) | (63,018 | ) | (90,650 | ) | ||||||||
Adjusted operating expenses, net of fuel surcharge revenue | 190,317 | 178,916 | 634,570 | 698,920 | ||||||||||||
Revenue before fuel surcharge | 219,093 | 200,452 | 749,655 | 791,087 | ||||||||||||
Adjusted operating ratio | 86.9 | % | 89.3 | % | 84.6 | % | 88.3 | % |
*Recasted for change in presentation currency from Canadian dollar to U.S. dollar
** Operating expenses excluding intra TL eliminations
Free cash flow conversion : Adjusted EBITDA less additions and proceeds from rolling stock and equipment, divided by the adjusted EBITDA.
(unaudited) (in thousands of U.S. dollars) |
Three months ended December 31 |
Years ended December 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 | ||||||||||||
Additions to rolling stock and equipment | (55,355 | ) | (52,623 | ) | (123,483 | ) | (223,965 | ) | ||||||||
Proceeds from sale of rolling stock and equipment | 24,144 | 20,654 | 52,719 | 71,365 | ||||||||||||
Adjusted EBITDA net of net rolling stock and equipment | 162,327 | 131,428 | 628,825 | 496,421 | ||||||||||||
Free cash flow conversion | 83.9 | % | 80.4 | % | 89.9 | % | 76.5 | % |
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar
Free cash flow from continuing operations: Net cash from continuing operating activities less additions to property and equipment plus proceeds from sale of property and equipment and assets held for sale. Management believes that this measure provides a benchmark to evaluate the performance eof the Company in regard to its ability to meet capital requirements.
(unaudited) (in thousands of U.S. dollars) |
Three months ended December 31 |
Years ended December 31 |
||||||||||||||
2020 | 2019* | 2020 | 2019* | |||||||||||||
Net cash from continuing operating activities | 164,928 | 133,262 | 610,862 | 500,496 | ||||||||||||
Additions to property and equipment | (60,410 | ) | (89,073 | ) | (142,814 | ) | (263,698 | ) | ||||||||
Proceeds from sale of property and equipment | 23,949 | 20,785 | 52,116 | 71,754 | ||||||||||||
Proceeds from sale of assets held for sale | 6,248 | 13,079 | 24,480 | 39,146 | ||||||||||||
Free cash flow from continuing operations | 134,715 | 78,053 | 544,644 | 347,698 |
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar
Covenants : The following table indicates the Company’s financial covenants to be maintained under its credit facility. These covenants are measured on a consolidated rolling twelve-month basis and are calculated as prescribed by the credit agreement which, among other things, requires the exclusion of the impact of the new standard IFRS 16 Leases:
Covenants | Requirements | As at December 31, 2020 |
||||
Funded debt-to- EBITDA ratio [ratio of total debt plus letters of credit and some other long-term liabilities to earnings before interest, income tax, depreciation and amortization (“EBITDA”), including last twelve months adjusted EBITDA from business acquisitions] | < 3.50 | 1.33 | ||||
EBITDAR-to-interest and rent ratio [ratio of EBITDAR (EBITDA before rent and including last twelve months adjusted EBITDAR from business acquisitions) to interest and net rent expenses] | > 1.75 | 4.78 |