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TFI International Announces 2021 Fourth Quarter and Full-Year Results

  • 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 highlightsQuarters ended
December 31
Years ended
December 31
 
(in millions of U.S. dollars, except per share data)202120202021*2020 
Total revenue2,140.9 1,122.0 7,220.4 3,781.1 
Revenue before fuel surcharge1,888.4 1,048.1 6,468.8 3,484.3 
Adjusted EBITDA1318.5 193.5 1,076.5 699.6 
Operating income215.0 117.1 889.2 416.6 
Net cash from operating activities190.3 164.9 855.4 610.9 
Net income144.1 86.3 664.4 275.7 
EPS - diluted ($)1.52 0.91 6.97 3.03 
Adjusted net income1148.6 93.4 498.3 299.8 
Adjusted EPS - diluted1 ($)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
[email protected]



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 
Share-based payment transactions  15,424   7,046 
Net finance costs  73,018   53,910 
Income tax expense  151,806   86,982 
Gain on sale of business  -   (306)
Bargain purchase gain  (193,549)  (4,008)
Gain on sale of property and equipment  (24,625)  (7,882)
Gain on derecognition of right-of-use assets  (1,282)  (1,159)
Gain on sale of assets held for sale  (12,209)  (11,899)
Loss on disposal of intangible assets  1   - 
Employee benefits  (20,193)  (1,656)
Provisions net of payments  21,890   7,930 
   1,067,674   703,862 
Net change in non-cash operating working capital  41,940   33,661 
Cash generated from operating activities before the following  1,109,614   737,523 
Interest paid  (65,453)  (50,366)
Income tax paid  (188,810)  (73,256)
Settlement of derivative contract  -   (3,039)
Net cash from operating activities  855,351   610,862 
         
Cash flows used in investing activities        
Purchases of property and equipment  (268,656)  (142,710)
Proceeds from sale of property and equipment  92,842   52,116 
Proceeds from sale of assets held for sale  19,869   24,480 
Purchases of intangible assets  (7,143)  (1,665)
Proceeds from sale of business  -   2,351 
Business combinations, net of cash acquired  (1,008,131)  (327,650)
Purchases of investments  (35,913)  (7,446)
Proceeds from sale of investments  40,686   - 
Proceeds from collection of promissory note  -   18,892 
Others  3,789   3,151 
Net cash used in investing activities  (1,162,657)  (378,481)
         
Cash flows from (used in) financing activities        
Decrease in bank indebtedness  (7,173)  (2,231)
Proceeds from long-term debt  661,039   33,175 
Repayment of long-term debt  (43,868)  (191,221)
Net increase (decrease) in revolving facilities  118,859   (326,201)
Repayment of lease liabilities  (115,336)  (82,587)
(Decrease) increase in other financial liabilities  (11,216)  4,738 
Dividends paid  (85,386)  (67,604)
Repurchase of own shares  (198,153)  (38,021)
Proceeds from exercise of stock options  20,114   21,361 
Repurchase of own shares for restricted share unit settlement  (16,579)  (4,843)
Proceeds from the issuance of common shares, net of expenses  -   425,350 
Net cash from (used in) financing activities  322,301   (228,084)
         
Net change in cash and cash equivalents  14,995   4,297 
Cash and cash equivalents, beginning of year  4,297   - 
Cash and cash equivalents, end of year  19,292   4,297 



SEGMENT INFORMATION

Geographical information (Unaudited)

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

  Package  Less-                 
  and  Than-                 
  Courier  Truckload  Truckload  Logistics  Eliminations  Total 
2021 
Canada  641,449   576,311   912,166   269,568   (31,193)  2,368,301 
United States  -   2,239,079   1,250,586   1,370,843   (30,041)  4,830,467 
Mexico  -   -   -   21,661   -   21,661 
Total  641,449   2,815,390   2,162,752   1,662,072   (61,234)  7,220,429 
                         
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 


Package and Courier

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2021  %  2020  %  2021  %  2020  % 
Total revenue  177,368       167,555       641,449       529,155     
Fuel surcharge  (27,294)      (13,461)      (81,302)      (47,665)    
Revenue  150,074   100.0%  154,094   100.0%  560,147   100.0%  481,490   100.0%
Materials and services expenses (net of fuel
surcharge)
  60,636   40.4%  72,115   46.8%  243,786   43.5%  220,741   45.8%
Personnel expenses  39,060   26.0%  39,821   25.8%  154,820   27.6%  133,552   27.7%
Other operating expenses  6,905   4.6%  6,234   4.0%  26,762   4.8%  23,145   4.8%
Depreciation of property and equipment  3,297   2.2%  3,168   2.1%  12,392   2.2%  11,539   2.4%
Depreciation of right-of-use assets  3,300   2.2%  3,210   2.1%  13,109   2.3%  12,871   2.7%
Amortization of intangible assets  186   0.1%  248   0.2%  903   0.2%  947   0.2%
(Gain) loss on sale of rolling stock and equipment  (23)  -0.0%  (10)  -0.0%  (59)  -0.0%  43   0.0%
Gain on derecognition of right-of-use assets  -   -   0   0.0%  (7)  -0.0%  (10)  -0.0%
Gain on sale of land and buildings and assets
held for sale
  -   -   (93)  -0.1%     -   (91)  -0.0%
Loss on disposal of intangible assets  -   -      -   1   0.0%     - 
Operating income  36,713   24.5%  29,401   19.1%  108,440   19.4%  78,753   16.4%
Adjusted EBITDA1  43,496   29.0%  35,934   23.3%  134,845   24.1%  104,019   21.6%
Return on invested capital1      25.3%      18.2%                

1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below.

Operational data      
(unaudited) Three months ended December 31  Years ended December 31 
(Revenue in U.S. dollars) 2021  2020  Variance  %  2021  2020  Variance  % 
Revenue per pound (including fuel) $0.43  $0.40  $0.03   7.5% $0.44  $0.36  $0.08   21.6%
Revenue per pound (excluding fuel) $0.36  $0.36  $     $0.39  $0.33  $0.06   16.7%
Revenue per shipment (excluding fuel) $6.11  $5.88  $0.23   3.9% $6.21  $5.67  $0.53   9.4%
Tonnage (in thousands of metric tons)  187   192   (5)  -2.6%  656   658   (2)  -0.3%
Shipments (in thousands)  24,581   26,185   (1,604)  -6.1%  90,257   84,854   5,403   6.4%
Average weight per shipment (in lbs.)  16.77   16.16   0.61   3.8%  16.03   17.09   (1.06)  -6.2%
Vehicle count, average  1,139   1,008   131   13.0%  1,069   1,023   46   4.5%
Weekly revenue per vehicle (incl. fuel, in thousands of U.S. dollars) $11.98  $12.79  $(0.81)  -6.2% $11.54  $9.95  $1.59   16.0%


Less-Than-Truckload

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2021  %  2020  %  2021  %  2020  % 
Total revenue  959,546       157,628       2,815,390       589,235     
Fuel surcharge  (136,635)      (16,547)      (374,750)      (66,384)    
Revenue  822,911   100.0%  141,081   100.0%  2,440,640   100.0%  522,851   100.0%
Materials and services expenses (net of fuel
surcharge)
  274,166   33.3%  67,140   47.6%  848,273   34.8%  252,334   48.3%
Personnel expenses  348,237   42.3%  33,338   23.6%  1,022,214   41.9%  116,257   22.2%
Other operating expenses  60,196   7.3%  3,587   2.5%  155,992   6.4%  16,593   3.2%
Depreciation of property and equipment  25,846   3.1%  4,886   3.5%  73,242   3.0%  19,407   3.7%
Depreciation of right-of-use assets  9,398   1.1%  5,546   3.9%  33,050   1.4%  22,555   4.3%
Amortization of intangible assets  2,495   0.3%  2,179   1.5%  9,768   0.4%  8,392   1.6%
Bargain Purchase Gain     0.0%     0.0%  (181,549)  -7.4%     0.0%
Gain on sale of rolling stock and equipment  (842)  -0.1%  (62)  -0.0%  (907)  -0.0%  (519)  -0.1%
Gain on derecognition of right-of-use assets  (35)  -0.0%  (6)  -0.0%  (573)  -0.0%  (175)  -0.0%
(Gain) loss on sale of land and buildings and assets
held for sale
  1   0.0%  9   0.0%  (1,624)  -0.1%  57   0.0%
Operating income  103,449   12.6%  24,464   17.3%  482,754   19.8%  87,950   16.8%
Adjusted EBITDA1  141,189   17.2%  37,084   26.3%  415,641   17.0%  138,361   26.5%

1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below.

Operational data      
(unaudited) Three months ended December 31  Years ended December 31 
(Revenue in U.S. dollars) 2021  2020  Variance  %  2021  2020  Variance  % 
U.S. LTL                                
Revenue (in thousands of dollars)1  568,761   625   568,136  NM   1,586,228   2,692   1,583,537  NM 
Adjusted Operating Ratio2  89.4%  87.7%          90.1%  88.2%        
Revenue per hundredweight (excluding fuel)1 $29.20   -  $29.20      $28.52   -  $28.52     
Revenue per shipment (excluding fuel)1 $310.97   -  $310.97      $299.91   -  $299.91     
Tonnage (in thousands of tons)1  974   -   974       2,781   -   2,781     
Shipments (in thousands)1  1,829   -   1,829       5,289   -   5,289     
Average weight per shipment (in lbs)1  1,065   -   1,065       1,052   -   1,052     
Average length of haul (in miles)1  1,110   -   1,110       1,089   -   1,089     
Vehicle count, average4  4,583   8   4,575  NM   4,866   8   4,858  NM 
Return on invested capital2,3 -  -                         
Canadian LTL                                
Revenue (in thousands of dollars)  144,697   141,081   3,616   2.6%  556,891   522,842   34,049   6.5%
Adjusted Operating Ratio2  78.3%  82.7%          79.9%  83.2%        
Revenue per hundredweight (excluding fuel) $11.13  $10.15  $0.98   9.7% $10.80  $9.77  $1.03   10.5%
Revenue per shipment (excluding fuel) $223.30  $215.72  $7.58   3.5% $222.40  $213.06  $9.34   4.4%
Tonnage (in thousands of tons)  650   695   (45)  -6.5%  2,579   2,675   (96)  -3.6%
Shipments (in thousands)  648   654   (6)  -0.9%  2,504   2,454   50   2.0%
Average weight per shipment (in lbs)  2,006   2,125   (119)  -5.6%  2,060   2,180   (120)  -5.5%
Average length of haul (in miles)  791   811   (20)  -2.5%  773   818   (45)  -5.5%
Vehicle count, average  810   894   (84)  -9.4%  837   910   (73)  -8.0%
Return on invested capital2  17.8%  13.6%                        
1 Operational statistics exclude figures from Ground Freight Pricing (“GFP”). 
2 This is a non-IFRS measure. For a reconciliation please refer to the “Non-IFRS and Other Financial Measures” section below. 
3 The Return on invested capital for the U.S. LTL is not disclosed as complete annual information is not yet available. 
4 The vehicle count, average for the year ended December 31, 2021 was adjusted to calculate the average since the acquisition of UPS Freight on April 30, 2021. 

Truckload

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2021  %  2020  %  2021  %  2020  % 
Total revenue  584,009       477,262       2,162,752       1,748,359     
Fuel surcharge  (77,577)      (39,127)      (261,595)      (163,522)    
Revenue  506,432   100.0%  438,135   100.0%  1,901,157   100.0%  1,584,837   100.0%
Materials and services expenses (net of fuel
surcharge)
  221,538   43.7%  188,660   43.1%  823,645   43.3%  654,220   41.3%
Personnel expenses  160,351   31.7%  135,911   31.0%  604,041   31.8%  503,242   31.8%
Other operating expenses  19,193   3.8%  14,323   3.3%  66,468   3.5%  52,337   3.3%
Depreciation of property and equipment  35,652   7.0%  34,986   8.0%  137,301   7.2%  136,859   8.6%
Depreciation of right-of-use assets  15,087   3.0%  10,055   2.3%  52,680   2.8%  32,229   2.0%
Amortization of intangible assets  5,960   1.2%  5,171   1.2%  21,580   1.1%  19,891   1.3%
Gain on sale of business     0.0%  (306)  -0.1%     0.0%  (306)  -0.0%
Gain on sale of rolling stock and equipment  (6,338)  -1.3%  (2,129)  -0.5%  (23,747)  -1.2%  (7,785)  -0.5%
Gain on derecognition of right-of-use assets  (160)  -0.0%  (13)  -0.0%  (431)  -0.0%  (332)  -0.0%
Gain on sale of land and buildings and assets held for
sale
  (6,649)  -1.3%  (2,127)  -0.5%  (10,569)  -0.6%  (11,864)  -0.7%
Gain on disposal of intangible assets  (5)  -0.0%     -      0.0%     - 
Operating income  61,803   12.2%  53,604   12.2%  230,189   12.1%  206,346   13.0%
Adjusted EBITDA1  111,848   22.1%  101,383   23.1%  431,181   22.7%  383,155   24.2%
  

1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below.

Operational data Three months ended December 31  Years ended December 31 
(unaudited) 2021  2020  Variance  %  2021  2020  Variance  % 
U.S. based Conventional TL                                
Revenue (in thousands of U.S. dollars)  186,988   161,476   25,512   15.8%  734,027   632,590   101,437   16.0%
Adjusted operating ratio  95.5%  91.5%          93.3%  92.0%        
Total mileage (in thousands)  83,335   86,427   (3,092)  -3.6%  348,870   349,349   (479)  -0.1%
Tractor count, average  3,447   2,932   515   17.6%  3,294   2,949   345   11.7%
Trailer count, average  11,984   11,005   979   8.9%  11,751   10,938   813   7.4%
Tractor age  3.1   2.2   0.9   42.7%  3.1   2.2   0.1   42.7%
Trailer age  7.9   6.6   1.3   19.7%  7.9   6.6   1.3   19.7%
Number of owner operators, average  391   560   (169)  -30.1%  468   509   (42)  -8.1%
Return on invested capital1  5.3%  5.3%                        
Canadian based Conventional TL                                
Revenue (in thousands of U.S. dollars)  73,786   58,497   15,288   26.1%  250,177   206,418   43,759   21.2%
Adjusted operating ratio  88.4%  85.2%          87.9%  86.3%        
Total mileage (in thousands)  26,467   23,095   3,372   14.6%  92,236   89,212   3,024   3.4%
Tractor count, average  728   623   105   16.9%  640   606   34   5.5%
Trailer count, average  3,401   2,809   592   21.1%  2,884   2,796   88   3.1%
Tractor age  4.1   2.5   1.6   64.5%  4.1   2.5   1.6   64.5%
Trailer age  7.5   5.9   1.6   27.4%  7.5   5.9   1.6   27.4%
Number of owner operators, average  324   314   10   3.3%  306   302   4   1.5%
Return on invested capital1  10.9%  11.4%                        
Specialized TL                                
Revenue (in thousands of U.S. dollars)  247,641   219,093   28,549   13.0%  923,683   749,655   174,028   23.2%
Adjusted operating ratio  84.6%  86.9%          84.8%  84.6%        
Tractor count, average  2,356   2,314   43   1.8%  2,329   2,096   233   11.1%
Trailer count, average  7,029   6,619   410   6.2%  6,773   6,251   522   8.3%
Tractor age  4.0   4.0   (0.0)  -0.8%  4.0   4.0   (0.0)  -0.8%
Trailer age  12.7   12.9   (0.2)  -1.9%  12.7   12.9   (0.2)  -1.9%
Number of owner operators, average  1,168   1,132   36   3.2%  1,114   1,115   (1)  -0.1%
Return on invested capital1  11.2%  9.9%                        
1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below. 

Logistics

(unaudited) Three months ended December 31  Years ended December 31 
(in thousands of U.S. dollars) 2021  %  2020  %  2021  %  2020  % 
Total revenue  441,086       327,689       1,662,072       945,130     
Fuel surcharge  (13,525)      (5,370)      (41,146)      (21,674)    
Revenue  427,561   100.0%  322,319   100.0%  1,620,926   100.0%  923,456   100.0%
Materials and services expenses (net of fuel
surcharge)
  323,164   75.6%  241,798   75.0%  1,223,846   75.5%  668,225   72.4%
Personnel expenses  29,419   6.9%  24,381   7.6%  116,523   7.2%  93,579   10.1%
Other operating expenses  32,443   7.6%  19,983   6.2%  111,742   6.9%  48,012   5.2%
Depreciation of property and equipment  375   0.1%  596   0.2%  1,581   0.1%  2,336   0.3%
Depreciation of right-of-use assets  3,442   0.8%  3,138   1.0%  13,943   0.9%  13,204   1.4%
Amortization of intangible assets  5,776   1.4%  5,608   1.7%  22,684   1.4%  17,889   1.9%
Bargain purchase gain              (12,000)  -0.7%  (4,008)  -0.4%
Loss on sale of rolling stock and equipment  70   0.0%  368   0.1%  70   0.0%  373   0.0%
Gain on derecognition of right-of-use assets        (20)  -0.0%  (260)  -0.0%  (618)  -0.1%
Loss on sale of land and building  3   0.0%  5   0.0%  3   0.0%  5   0.0%
Operating income  32,869   7.7%  26,462   8.2%  142,794   8.8%  84,459   9.1%
Adjusted EBITDA1  42,465   9.9%  35,809   11.1%  169,005   10.4%  113,885   12.3%
Return on invested capital1      19.9%      15.3%                

1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS and Other Financial Measures” section below.

NON-IFRS AND OTHER FINANCIAL MEASURES

Financial data have been prepared in conformity with IFRS, including the following measures:

Operating expenses: Operating expenses include: a) materials and services expenses, which are primarily costs related to independent contractors and vehicle operation; vehicle operation expenses, which primarily include fuel, repairs and maintenance, vehicle leasing costs, insurance, permits and operating supplies; b) personnel expenses; c) other operating expenses, which are primarily composed of costs related to offices’ and terminals’ rent, taxes, heating, telecommunications, maintenance and security and other general administrative expenses; d) depreciation of property and equipment, depreciation of right-of-use assets, amortization of intangible assets and gain or loss on the sale of rolling stock and equipment, on derecognition of right-of use assets, on sale of business and on sale of land and buildings and assets held for sale; e) bargain purchase gain; and f) impairment of intangible assets.

Operating income (loss): Net income or loss before finance income and costs and income tax expense, as stated in the consolidated financial statements.

This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS financial measures are not standardized financial measures under IFRS used to prepare the financial statements of the Company to which the measures relates and might not be comparable to similar financial measures disclosed by other issuers. 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 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, gain or loss on the disposal of intangible assets 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
 
  2021  2020  2021  2020 
Net income  144,139   86,328   664,361   275,675 
Amortization of intangible assets related to business acquisitions  13,127   13,786   50,498   47,623 
Net change in fair value and accretion expense of contingent considerations  1,571   141   1,932   224 
Net change in fair value of derivatives     (488)     (488)
Net foreign exchange (gain) loss  (939)  373   (1,471)  (1,237)
Gain on sale of business     (306)     (306)
Bargain purchase gain        (193,549)  (4,008)
Gain on sale of land and buildings and assets held for sale  (6,645)  (2,206)  (12,190)  (11,893)
(Gain) loss on disposal of intangible assets  (5)     1