U.S. markets closed
  • S&P 500

    3,639.66
    -104.86 (-2.80%)
     
  • Dow 30

    29,296.79
    -630.15 (-2.11%)
     
  • Nasdaq

    10,652.40
    -420.91 (-3.80%)
     
  • Russell 2000

    1,702.15
    -50.36 (-2.87%)
     
  • Crude Oil

    93.20
    +4.75 (+5.37%)
     
  • Gold

    1,701.80
    -19.00 (-1.10%)
     
  • Silver

    20.16
    -0.50 (-2.42%)
     
  • EUR/USD

    0.9743
    -0.0052 (-0.54%)
     
  • 10-Yr Bond

    3.8830
    +0.0570 (+1.49%)
     
  • GBP/USD

    1.1098
    -0.0071 (-0.63%)
     
  • USD/JPY

    145.3300
    +0.2620 (+0.18%)
     
  • BTC-USD

    19,544.03
    -413.53 (-2.07%)
     
  • CMC Crypto 200

    445.50
    -9.53 (-2.09%)
     
  • FTSE 100

    6,991.09
    -6.18 (-0.09%)
     
  • Nikkei 225

    27,116.11
    -195.19 (-0.71%)
     

TFI International Announces 2021 Fourth Quarter and Full-Year Results

·19 min read
GlobeNewswire Inc.
  • Fourth quarter diluted EPS of $1.52 up from $0.91 in Q4 2020, while adjusted diluted EPS1 of $1.57 increased from $0.98

  • Fourth quarter operating income of $215.0 million increased from $117.1 million in Q4 2020

  • Fourth quarter net cash from operating activities of $190.3 million increased from $164.9 million in Q4 2020

  • Full-year diluted EPS of $6.97 up from $3.03 in 2020, while adjusted diluted EPS1 of $5.23 increased from $3.30

MONTREAL, Feb. 07, 2022 (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, 2021.

“TFI International completed a highly successful year that featured our transformational acquisition of UPS Ground Freight, which is already helping to drive our robust financial results reported today. During the fourth quarter, our operating income grew 84% and our adjusted diluted EPS grew 60%,” said Alain Bédard, Chairman, President and Chief Executive Officer. “It is gratifying to see all our business segments delivering year-over-year growth in revenues and operating income, on the tremendous efforts of our thousands of talented team members. By focusing through the pandemic on our longstanding operating principles that emphasize efficiency, strong cash flow, and the strategic allocation of capital, we have entered the new year stronger than ever. I am therefore confident that regardless of operating conditions, our proven approach to the business and the synergies still to come from our rebranded TForce Freight position us well over the long term, for additional growth, superior customer service, and the continued creation of shareholder value.”

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)

2021

2020

2021*

2020

Total revenue

2,140.9

1,122.0

7,220.4

3,781.1

Revenue before fuel surcharge

1,888.4

1,048.1

6,468.8

3,484.3

Adjusted EBITDA1

318.5

193.5

1,076.5

699.6

Operating income

215.0

117.1

889.2

416.6

Net cash from operating activities

190.3

164.9

855.4

610.9

Net income

144.1

86.3

664.4

275.7

EPS - diluted ($)

1.52

0.91

6.97

3.03

Adjusted net income1

148.6

93.4

498.3

299.8

Adjusted EPS - diluted1 ($)

1.57

0.98

5.23

3.30

Weighted average number of shares ('000s)

92,669

93,374

93,054

89,113

* The year end December 31, 2021 balances include an adjustment to the bargain purchase gain of $69.4 millon applied retrospectively to the second quarter of 2021, the quarter of the business acquisition, as a result of new information becoming available since the preliminary purchase price allocation was performed. .
1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below.

FOURTH QUARTER RESULTS
Total revenue of $2.14 billion was up 91% and, revenue before fuel surcharge of $1.89 billion was up 80% compared to the prior year period.

Operating income grew 84% to $215.0 million from $117.1 million the prior year period, primarily driven by acquisitions, strong execution across the organization, increased quality of revenue, an asset-right approach, and cost efficiencies.

Net income grew 67% to $144.1 million from $86.3 million the prior year period, and net income of $1.52 per diluted share was up relative to $0.91 the prior year period. Adjusted net income, a non-IFRS measure, was $148.6 million, or $1.57 per diluted share, as compared to $93.4 million, or $0.98 per diluted share, the prior year period.

Total revenue grew for all segments relative to the prior year period with increases of 6% for Package and Courier, 509% for Less-Than-Truckload, 22% for Truckload and 35% for Logistics. Operating income was also higher across all segments in the fourth quarter in comparison to the prior-year.

FULL-YEAR RESULTS
Total revenue was $7.22 billion for 2021 versus $3.78 billion in 2020. Revenue before fuel surcharge of $6.47 billion was up 86% compared to the prior year.

Operating income totalled $889.2 million, or 14% of revenue before fuel surcharge, an increase of 113% compared to $416.6 million and 12% of revenue before fuel surcharge in the prior year. The increase is mainly attributable to the contributions from acquisitions, including a bargain purchase gain of $193.5 million, and despite a decrease in the Canadian Emergency Wage Subsidy of $40.0 million and an expense recognized on the mark-to-market of the DSUs of $22.9 million.

Net income was $664.4 million, or $6.97 per diluted share, compared to $275.7 million, or $3.03 per diluted share a year earlier. Adjusted net income and Adjusted EPS, non-IFRS measures, were $498.3 million, or $5.23 per diluted share, compared to $299.8 million, or $3.30 per diluted share the prior year period.

During 2021, total revenue grew 21% for Package and Courier, 378% for Less-Than-Truckload, 24% for Truckload and 76% for Logistics relative to the prior year. Operating income was up 38% for Package and Courier, 449% for Less-Than-Truckload, 12% for Truckload and 69% for Logistics.

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, 2021

Revenue before fuel surcharge1

150,074

822,911

506,432

427,561

(18,555

)

1,888,423

% of total revenue2

8

%

44

%

27

%

20

%

99

%

Adjusted EBITDA3

43,496

141,189

111,848

42,465

(20,532

)

318,466

Adjusted EBITDA margin3,4

29.0

%

17.2

%

22.1

%

9.9

%

16.9

%

Operating income (loss)

36,713

103,449

61,803

32,869

(19,855

)

214,979

Operating margin3,4

24.5

%

12.6

%

12.2

%

7.7

%

11.4

%

Total assets less intangible assets3

186,116

2,031,994

1,362,007

292,026

88,059

3,960,202

Net capital expenditures3

5,926

46,986

15,113

192

20

68,237

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 EBITDA3

35,934

37,084

101,383

35,809

(16,672

)

193,538

Adjusted EBITDA margin3,4

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 margin3,4

19.1

%

17.3

%

12.2

%

8.2

%

11.2

%

Total assets less intangible assets3

194,631

404,074

1,193,730

272,592

34,564

2,099,591

Net capital expenditures3

2,533

5,415

22,955

83

225

31,211

YTD December 31, 2021

Revenue before fuel surcharge1

560,147

2,440,640

1,901,157

1,620,926

(54,085

)

6,468,785

% of total revenue2

9

%

39

%

30

%

23

%

100

%

Adjusted EBITDA3

134,845

415,641

431,181

169,005

(74,193

)

1,076,479

Adjusted EBITDA margin3,4

24.1

%

17.0

%

22.7

%

10.4

%

16.6

%

Operating income (loss)

108,440

482,754

230,189

142,794

(74,992

)

889,185

Operating margin3,4

19.4

%

19.8

%

12.1

%

8.8

%

13.7

%

Total assets less intangible assets3

186,116

2,031,994

1,362,007

292,026

88,059

3,960,202

Net capital expenditures3

14,445

52,703

69,177

316

141

136,782

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 EBITDA3

104,019

138,361

383,155

113,885

(39,831

)

699,589

Adjusted EBITDA margin3,4

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 margin3,4

16.4

%

16.8

%

13.0

%

9.1

%

12.0

%

Total assets less intangible assets3

194,631

404,074

1,193,730

272,592

34,564

2,099,591

Net capital expenditures3

16,673

11,673

41,781

288

349

70,764

1 Includes intersegment revenue.
2 Segment revenue including fuel and intersegment revenue to consolidated revenue including fuel and intersegment revenue.
3 This is a non-IFRS measure. For a reconciliation, refer to the “Non-IFRS and Other Financial Measures” section below.
4 As a percentage of revenue before fuel surcharge.

CASH FLOW
Net cash from operating activities was $855.4 million during 2021 compared to $610.9 million the prior year. The 40% increase was due to stronger operating performance and contributions from acquisitions. The Company returned $283.5 million to shareholders during the year, of which $85.4 million was through dividends and $198.2 million was through share repurchases.

On December 16, 2021, the Board of Directors of TFI International declared a quarterly dividend of US $0.27 per outstanding common share payable on January 17, 2022, representing a 17% increase over the US $0.23 quarterly dividend declared in Q4 2020.

LIQUIDITY
The Company has an unsecured term loan of $324.4 million recognized as a current liability as it matures in less than a year. The Company has adequate available liquidty through its revolving credit facilities, $797.9 million as at December 31, 2021, to repay the unsecured term loan.

INTERNAL CONTROL OVER FINANCIAL REPORTING
The Company’s 2021 annual report will include management’s first required assessment of the effectiveness of internal control over financial reporting and the registered public accounting firm’s attestation report, each in accordance with Section 404 of the Sarbanes-Oxley Act. To date, the Company has identified a number of deficiencies in the design, operation, and documentation of various internal controls, primarily in the areas of information general technology controls and the order-to-cash process. These deficiencies, along with the effectiveness of various compensating controls, are being assessed. Management has not yet concluded whether any specific deficiencies, or the aggregation of deficiencies, will result in a material weakness in internal control over financial reporting. If management concludes that one or more material weaknesses exists, the independent registered accounting firm will issue an adverse opinion on such controls as well. The assessment of management and the attestation of the independent registered accounting firm on internal controls over financial reporting will be contained in the Company’s annual report.

CONFERENCE CALL
TFI International will host a conference call on Tuesday, February 8, 2022 at 8:30 a.m. Eastern Time to discuss these results. Interested parties can join the call by dialing 1-888-440-2069. A recording of the call will be available until midnight, March 8, 2022, by dialing 1-800-770-2030 or 647-362-9199 and entering passcode 4012037.

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. . In addition, any material weaknesses in internal control over financial reporting that are identified, and the cost of remediation of any such material weakness and any other control deficiencies, may have adverse effects on the Company and impact future results. See “Risks and Uncertainties” at the end of the 2021 Q3 MD&A.

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 2021 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
abedard@tfiintl.com



TFI International Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2021 AND 2020

(in thousands of U.S. dollars)

As at

As at

December 31,
2021

December 31,
2020*

Assets

Cash and cash equivalents

19,292

4,297

Trade and other receivables

1,056,023

597,873

Inventoried supplies

24,402

8,761

Current taxes recoverable

6,080

7,606

Prepaid expenses

54,518

29,904

Assets held for sale

1,943

4,331

Current assets

1,162,258

652,772

Property and equipment

2,331,874

1,074,428

Right-of-use assets

398,533

337,285

Intangible assets

1,792,921

1,747,663

Other assets

37,842

23,899

Deferred tax assets

29,695

11,207

Non-current assets

4,590,865

3,194,482

Total assets

5,753,123

3,847,254

Liabilities

Trade and other payables

861,362

468,238

Current taxes payable

16,250

33,220

Provisions

39,012

17,452

Other financial liabilities

10,566

4,031

Long-term debt

363,586

42,997

Lease liabilities

115,344

88,522

Current liabilities

1,406,120

654,460

Long-term debt

1,244,508

829,547

Lease liabilities

313,862

267,464

Employee benefits

68,037

15,502

Provisions

83,630

36,803

Other financial liabilities

8,033

22,699

Deferred tax liabilities

408,622

232,167

Non-current liabilities

2,126,692

1,404,182

Total liabilities

3,532,812

2,058,642

Equity

Share capital

1,133,181

1,120,049

Contributed surplus

39,150

19,783

Accumulated other comprehensive income

(144,665

)

(154,723

)

Retained earnings

1,192,645

803,503

Equity attributable to owners of the Company

2,220,311

1,788,612

Contingencies, letters of credit and other commitments

Subsequent events

Total liabilities and equity

5,753,123

3,847,254

* Recasted for change in accounting policy following the 2021 IFRS Interpretation Committee’s agenda decision on Configuration or Customization Cost in a Cloud Computing Arrangement (IAS 38 Intangible Assets). The result was a decrease in intangible assets of $2,110, a decrease in deferred tax liabilities of $545, and a decrease in retained earnings of $1,565



TFI International Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2021 AND 2020

(In thousands of U.S. dollars, except per share amounts)

2021

2020

Revenue

6,468,785

3,484,303

Fuel surcharge

751,644

296,831

Total revenue

7,220,429

3,781,134

Materials and services expenses

3,815,453

2,051,835

Personnel expenses

1,974,081

888,185

Other operating expenses

380,342

150,572

Depreciation of property and equipment

225,007

170,520

Depreciation of right-of-use assets

112,782

80,496

Amortization of intangible assets

55,243

48,213

Gain on sale of business

-

(306

)

Bargain purchase gain

(193,549

)

(4,008

)

Gain on sale of rolling stock and equipment

(24,644

)

(7,888

)

Gain on derecognition of right-of-use assets

(1,282

)

(1,159

)

Loss on sale of land and buildings

19

6

Gain on sale of assets held for sale

(12,209

)

(11,899

)

Loss on disposal of intangible assets

1

-

Total operating expenses

6,331,244

3,364,567

Operating income

889,185

416,567

Finance (income) costs

Finance income

(5,127

)

(2,776

)

Finance costs

78,145

56,686

Net finance costs

73,018

53,910

Income before income tax

816,167

362,657

Income tax expense

151,806

86,982

Net income for the year attributable to owners of the Company

664,361

275,675

Earnings per share attributable to owners of the Company

Basic earnings per share

7.14

3.09

Diluted earnings per share

6.97

3.03



TFI International Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2021 AND 2020

(In thousands of U.S. dollars)

2021

2020

Net income for the year attributable to owners of the Company

664,361

275,675

Other comprehensive income (loss)

Items that may be reclassified to income or loss in future years:

Foreign currency translation differences

12,960

21,182

Net investment hedge, net of tax

(15,542

)

(2,010

)

Changes in fair value of cash flow hedge, net of tax

-

(487

)

Employee benefits, net of tax

87

(10

)

Items that may never be reclassified to income:

Defined benefit plan remeasurement, net of tax

(4,128

)

(1,623

)

Items directly reclassified to retained earnings:

Unrealized gain on investments in equity securities measured at fair value

through OCI, net of tax

24,147

-

Other comprehensive income for the year, net of tax

17,524

17,052

Total comprehensive income for the year attributable to owners of the Company

681,885

292,727




TFI International Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY
YEARS ENDED DECEMBER 31, 2021 AND 2020

(In thousands of U.S. dollars)

Accumulated

foreign

Accumulated

Accumulated

currency

unrealized

unrealized

translation

gain (loss)

Total equity

loss on

Accumulated

differences

on invest-

attributable

employee

cash flow

and net

ments in

Retained

to owners

Share

Contributed

benefit

hedge

investment

equity

earnings

of the

capital

surplus

plans

gain (loss)

hedge

securities

(deficit)

Company

Balance as at December 31, 2020*

1,120,049

19,783

(379

)

-

(154,344

)

-

803,503

1,788,612

Net income for the year

-

-

-

-

-

-

664,361

664,361

Other comprehensive income (loss) for the year, net of tax

-

-

87

-

(2,582

)

24,147

(4,128

)

17,524

Realized gain (loss) on equity securities

-

-

-

-

-

(11,594

)

11,594

-

Total comprehensive income (loss) for the year

-

-

87

-

(2,582

)

12,553

671,827

681,885

Share-based payment transactions, net of tax

-

27,577

-

-

-

-

-

27,577

Stock options exercised, net of tax

26,324

(3,266

)

-

-

-

-

-

23,058

Dividends to owners of the Company

-

-

-

-

-

-

(89,121

)

(89,121

)

Repurchase of own shares

(23,449

)

-

-

-

-

-

(174,704

)

(198,153

)

Net settlement of restricted share units, net of tax

10,257

(4,944

)

-

-

-

-

(18,860

)

(13,547

)

Total transactions with owners, recorded directly in equity

13,132

19,367

-

-

-

-

(282,685

)

(250,186

)

Balance as at December 31, 2021

1,133,181

39,150

(292

)

-

(156,926

)

12,553

1,192,645

2,220,311

Balance as at December 31, 2019*

678,915

19,549

(369

)

487

(173,516

)

-

632,661

1,157,727

Net income for the year

-

-

-

-

-

-

275,675

275,675

Other comprehensive income (loss) for the year, net of tax

-

-

(10

)

(487

)

19,172

-

(1,623

)

17,052

Total comprehensive income (loss) 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

)

-

803,503

1,788,612

* Recasted for change in accounting policy following the 2021 IFRS Interpretation Committee’s agenda decision on Configuration or Customization Cost in a Cloud Computing Arrangement (IAS 38 Intangible Assets). The result was a decrease in intangible assets of $2,110, a decrease in deferred tax liabilities of $545, and a decrease in retained earnings of $1,565 reflected in the closing balances of December 31, 2019.



TFI International Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2021 AND 2020

(In thousands of U.S. dollars)

2021

2020

Cash flows from operating activities

Net income for the year

664,361

275,675

Adjustments for:

Depreciation of property and equipment

225,007

170,520

Depreciation of right-of-use assets

112,782

80,496

Amortization of intangible assets

55,243

48,213