Q3 2024 TFI International Inc Earnings Call Transcript
Key Points
- TFI International Inc (TFII) reported a strong year-over-year increase in free cash flow by 37% to over $270 million.
- The company successfully reduced its debt by $130 million during the quarter, improving its funded debt-to-EBITDA ratio.
- TFI International Inc (TFII)'s logistics segment performed well, with operating income up 19% and an improved operating margin.
- The truckload segment saw significant revenue growth, largely due to the acquisition of Daseke, with operating income rising from $50 million to $72 million.
- The company announced a 13% increase in its quarterly dividend and a renewal of its share repurchase program, reflecting confidence in its financial position.
- Operating income margin decreased to 10.7% from 12.3% a year earlier, indicating pressure on profitability.
- US LTL segment experienced a decline in revenue and operating income, with a 2% drop in tonnage and a 35% decline in GFP revenue.
- The Canadian LTL segment saw a decrease in revenue per shipment by 5%, despite an increase in the number of shipments.
- TFI International Inc (TFII) faced challenges in improving service levels, with claims ratio increasing to 0.8% of revenue.
- The company anticipates that its full-year performance for 2024 will be similar to 2023, indicating limited growth expectations due to challenging market conditions.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to TFI International's Third Quarter 2024 Results Conference Call. (Operator Instructions)
Please be advised that this conference call will contain statements that are forward-looking in nature and subject to a number of risks and uncertainties that can cause actual results to differ materially. Also, I would like to remind everyone that this conference call is being recorded on Tuesday, October 22, 2024.
I will now turn the conference call over to Alain Bedard, Chairman, President and Chief Executive Officer of TFI International. Please go ahead, sir.
Well, thank you, operator, and thank you, everyone, for joining today's call. Yesterday, after market closed, we reported quarterly results that reflects industry-wide challenging condition. We generated strong free cash flow, which has always been one of our primary areas of focus, with a year-over-year increase of 37% to more than
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