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November 8, 2021 11:15 AM, EST

TFI Reports 124% Jump in Revenue for Q3

TFI headquarters TFI headquarters in Quebec. (TFI International)

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TFI International saw adjusted net income increase 59% during the third quarter of 2021, the company reported Oct. 28.

The Montreal-based transportation and logistics company posted adjusted net income of $138.9 million, or $1.46 a diluted share, for the three months ending Sept. 30. That compared with $87.4 million, 94 cents, during the same time the previous year.

Total revenue increased by 124% to $2.09 billion from $936.1 million.

TFI International

Bédard

Net income includes $1.4 million in losses from the sale of land and buildings and assets held for sale. It also includes a loss of $1.2 million from bargain purchases. Net income from continuing operations grew 60% to $132.8 million from $83.1 million the prior-year period.

Although based in Canada, TFI reports financial results in U.S. currency.

“TFI International further built upon this year’s achievements with robust cash flow and strong performance across all business segments, many of which are already surpassing pre-pandemic performance despite ongoing macro disruptions,” Alain Bédard, chairman and president of TFI, said in a statement.

TForce Freight truck

TFI purchased UPS Freight and rebranded it TForce Freight. (TForce Freight)

Its UPS Freight acquisition has helped drive quarterly results, though there does appear to be some sequential degradation since second quarter. TFI purchased the less-than-truckload business before rebranding it as TForce Freight. The report noted it made a strong early contribution with significant synergy and operational upside still ahead.

“I’m particularly pleased that our strong performance comes at a time when the most compelling benefits from our pivotal acquisition of UPS Freight are still ahead,” Bédard said. “Yet firmly within grasp as the newly branded TForce Freight continues to exceed expectations under the TFI umbrella.”

The less-than-truckload segment reported that third-quarter revenue increased 547% to $860.8 million from $133.1 million during the prior-year quarter. Operating income increased 224% to $85.1 million from $26.2 million last year.

“I’m pleased that our longtime attention to the fundamental details of the business, such as maximizing efficiencies, generating strong cash flow and strategically allocating capital, not only continues to serve us well during rapidly changing times, but has indeed left us in a position of historic strength as we approach year end,” Bédard said.

TFI still had to absorb $700,000 during the quarter in transaction-related costs incurred in the acquisition of UPS Freight. The company also faced a $5.5 million loss recognized on the mark-to-market of deferred share units, and a reduction in the contribution from the Canada Emergency Wage Subsidy worth $16.9 million.

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The package and courier segment saw revenue increase 9% to $133.3 million from $122.4 million during the same time last year. Operating income increased 12% to $23.9 million from $21.4 million.

The truckload segment saw revenue increase 19% to $488.6 million from $409 million during the same time last year. Operating income decreased 1% to $55.8 million from $56 million.

The logistics segment reported revenue increased 94% to $408.1 million from $210 million. Operating income increased 102% to $45.3 million from $22.4 million during the prior-year period.

Cowen and Co. said the less-than-truckload segment saw some sequential degradation. The investment bank and financial services company noted the TForce Freight division has historically faced seasonal challenges during the Decembe- to-February period.

“While TFII came in above our estimates on the top and bottom line in 3Q, the stock sold off post print as more was expected after two competing LTL companies handily beat expectations for the quarter,” Cowen analyst Jason Seidl wrote in a report. “We still see TFII gaining margin traction.”

TFI International ranks No. 5 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

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