TFI International Inc 6-K, filed Oct 23, 2020

About this 6-K

TFI International Inc. (TFII)

6-K 2020-10-23 For: 2020-10-22

View Original

Added on April 11, 2026

TFI International Inc.

Date: October 22, 2020

/s/ Josiane M. Langlois

Name: Josiane M. Langlois

Title: Vice-President, Legal Affairs & Corporate Secretary

TFI International Inc filed this 6-K on October 23, 2020.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


EXHIBIT NUMBER		EXHIBIT DESCRIPTION

99.1		News Release

99.2		Management Discussion & Analysis for period ended September 30, 2020

99.3		Interim Financial Statements for period ended September 30, 2020

99.4		CEO Certification

99.5		CFO Certification


SEGMENTED RESULTS
*(in millions of dollars)*	Quarters ended September 30						Nine months ended September 30
	2020			2019*			2020			2019*
	$			$			$			$
Revenue¹
Package and Courier		163.2			154.8			442.2			460.3
Less-Than-Truckload		177.4			205.4			516.0			632.5
Truckload		544.7			557.2			1,549.4			1,654.7
Logistics		279.8			256.8			813.5			726.0
Eliminations		(10.1	)		(8.4	)		(28.2	)		(26.3	)

	1,155.0			1,165.8			3,293.0			3,447.2


	$			% of Rev.¹			$			% of Rev.¹			$			% of Rev.¹			$			% of Rev.¹
Operating income (loss)
Package and Courier		28.5			17.5	%		28.2			18.2	%		66.6			15.1	%		79.2			17.2	%
Less-Than-Truckload		35.0			19.7	%		25.8			12.6	%		86.1			16.7	%		83.7			13.2	%
Truckload		74.6			13.7	%		75.8			13.6	%		207.1			13.4	%		193.7			11.7	%
Logistics		29.9			10.7	%		13.8			5.4	%		78.6			9.7	%		57.6			7.9	%
Corporate		(12.0	)					(11.6	)					(32.5	)					(28.4	)

		156.0			13.5	%		131.9			11.3	%		405.9			12.3	%		385.9			11.2	%


*Adjusted EBITDA* *(unaudited in millions of dollars)*	Quarters ended September 30						Nine months ended September 30
	2020			2019*			2020			2019*
Net income from continuing operations		110.7			82.6			256.1			247.9
Net finance costs		15.4			21.2			52.2			61.8
Income tax expense		29.9			28.1			97.7			76.1
Depreciation of property and equipment		56.4			56.6			171.5			164.8
Depreciation of right-of-use assets		26.7			26.4			79.7			76.8
Amortization of intangible assets		15.8			16.8			46.8			49.1
Bargain purchase gain		—			—			(5.6	)		(10.8	)
Gain on sale of land and buildings and assets held for sale		(2.6	)		(10.1	)		(13.4	)		(20.2	)

Adjusted EBITDA		252.3			221.6			685.0			645.5


*Adjusted net income* *(unaudited, in millions of dollars, except per share data)*	Quarters ended September 30						Nine months ended September 30
	2020			2019			2020			2019
Net income		110.7			82.6			256.1			235.5
Amortization of intangible assets related to business acquisitions, net of tax		11.1			12.0			33.1			35.1
Net change in fair value and accretion expense of contingent considerations, net of tax		—			—			0.1			0.1
Net change in fair value of derivatives, net of tax		(0.2	)		—			—			—
Net foreign exchange (gain) loss, net of tax		(0.3	)		0.4			(1.5	)		0.6
Bargain purchase gain		—			—			(5.6	)		(10.8	)
Gain on sale of land and buildings and assets held for sale, net of tax		(2.2	)		(7.0	)		(11.7	)		(15.7	)
Net loss from discontinued operations		—			—			—			12.5
U.S. Tax Reform		(3.2	)		—			7.5			—

Adjusted net income		115.8			88.1			278.0			257.2

Adjusted earnings per share - basic		1.27			1.07			3.17			3.06
Adjusted earnings per share - diluted		1.25			1.04			3.11			2.99


CONTENTS

GENERAL INFORMATION			2

FORWARD-LOOKING STATEMENTS			2

SELECTED FINANCIAL DATA AND HIGHLIGHTS			3

ABOUT TFI INTERNATIONAL			4

CONSOLIDATED RESULTS			4

SEGMENTED RESULTS			8

LIQUIDITY AND CAPITAL RESOURCES			14

OUTLOOK			17

SUMMARY OF EIGHT MOST RECENT QUARTERLY RESULTS			18

NON-IFRS FINANCIAL MEASURES			18

RISKS AND UNCERTAINTIES			22

CRITICAL ACCOUNTING POLICIES AND ESTIMATES			35

CHANGES IN ACCOUNTING POLICIES			36

CONTROLS AND PROCEDURES			36


*(unaudited)* *(in thousands of dollars, except per share data)*				Three months ended September 30									Nine months ended September 30
	2020			2019*			2018**			2020			2019*			2018**
Revenue before fuel surcharge		1,155,035			1,165,820			1,127,440			3,292,975			3,447,153			3,345,918
Fuel surcharge		92,126			138,945			160,163			300,885			426,224			455,845
Total revenue		1,247,161			1,304,765			1,287,603			3,593,860			3,873,377			3,801,763

Adjusted EBITDA¹		252,330			221,627			189,974			684,957			645,512			505,629
Operating income from continuing operations		155,972			131,949			126,196			405,902			385,854			322,856
Net income		110,661			82,641			86,713			256,076			235,455			215,266
Net income from continuing operations		110,661			82,641			86,713			256,076			247,933			215,266
Adjusted net income¹		115,761			88,123			95,017			277,980			257,220			235,350

Net cash from continuing operating activities		189,598			187,062			166,557			609,210			489,116			369,655
Free cash flow¹		164,839			129,714			86,287			560,688			359,744			235,790

Per share data
EPS – diluted		1.19			0.98			0.96			2.87			2.74			2.37
EPS from continuing operations - diluted		1.19			0.98			0.96			2.87			2.88			2.37
Adjusted EPS – diluted¹		1.25			1.04			1.04			3.11			2.99			2.58
Dividends		0.26			0.24			0.21			0.78			0.72			0.63

As a percentage of revenue before fuel surcharge
Adjusted EBITDA margin¹		21.8	%		19.0	%		16.9	%		20.8	%		18.7	%		15.1	%
Depreciation of property and equipment		4.9	%		4.9	%		4.4	%		5.2	%		4.8	%		4.4	%
Depreciation of right-of-use assets		2.3	%		2.3	%		—			2.4	%		2.2	%		—
Amortization of intangible assets		1.4	%		1.4	%		1.4	%		1.4	%		1.4	%		1.4	%
Operating margin¹		13.5	%		11.3	%		11.2	%		12.3	%		11.2	%		9.6	%
Adjusted operating ratio¹		86.7	%		89.5	%		88.9	%		88.2	%		89.7	%		90.6	%


Revenue by Top Customers’ Industry (68% of total revenue)
Retail	26	%
Manufactured Goods	16	%
Building Materials	8	%
Metals & Mining	8	%
Automotive	7	%
Food & Beverage	7	%
Services	7	%
Chemicals & Explosives	5	%
Forest Products	5	%
Energy	3	%
Waste Management	2	%
Maritime Containers	1	%
Others	5	%


*(unaudited)* *(in thousands of dollars)*	Package and Courier			Less- Than- Truckload			Truckload			Logistics			Corporate			Eliminations			Total
Three months ended September 30, 2020
Revenue before fuel surcharge¹		163,191			177,384			544,739			279,818			—			(10,097	)		1,155,035
% of total revenue²		14	%		16	%		47	%		23	%								100	%
Adjusted EBITDA		36,956			51,423			134,914			40,463			(11,426	)		—			252,330
Adjusted EBITDA margin³		22.6	%		29.0	%		24.8	%		14.5	%								21.8	%
Operating income (loss)		28,527			34,993			74,569			29,910			(12,027	)		—			155,972
Operating margin³		17.5	%		19.7	%		13.7	%		10.7	%								13.5	%
Net capital expenditures excluding property⁴		2,668			2,248			12,019			18			93						17,046

Three months ended September 30, 2019*
Revenue before fuel surcharge¹		154,830			205,434			557,205			256,791			—			(8,440	)		1,165,820
% of total revenue²		14	%		18	%		48	%		20	%								100	%
Adjusted EBITDA		35,490			43,621			127,380			25,926			(10,790	)		—			221,627
Adjusted EBITDA margin³		22.9	%		21.2	%		22.9	%		10.1	%								19.0	%
Operating income (loss)		28,232			25,791			75,762			13,796			(11,632	)		—			131,949
Operating margin³		18.2	%		12.6	%		13.6	%		5.4	%								11.3	%
Net capital expenditures excluding property ⁴		6,869			2,145			62,552			(9	)		8						71,565

Nine months ended September 30, 2020
Revenue before fuel surcharge¹		442,202			515,984			1,549,445			813,544			—			(28,200	)		3,292,975
% of total revenue²		13	%		16	%		47	%		24	%								100	%
Adjusted EBITDA		91,979			137,260			381,380			105,556			(31,218	)		—			684,957
Adjusted EBITDA margin³		20.8	%		26.6	%		24.6	%		13.0	%								20.8	%
Operating income (loss)		66,633			86,093			207,097			78,550			(32,471	)		—			405,902
Operating margin³		15.1	%		16.7	%		13.4	%		9.7	%								12.3	%
Total assets less intangibles assets		243,505			508,730			1,560,962			199,015			402,944						2,915,156
Net capital expenditures excluding property⁴		18,782			9,136			25,316			279			166						53,679

Nine months ended September 30, 2019*
Revenue before fuel surcharge¹		460,302			632,495			1,654,710			725,990			—			(26,344	)		3,447,153
% of total revenue²		14	%		19	%		48	%		19	%								100	%
Adjusted EBITDA		102,328			126,763			361,800			81,211			(26,590	)		—			645,512
Adjusted EBITDA margin³		22.2	%		20.0	%		21.9	%		11.2	%								18.7	%
Operating income (loss)		79,163			83,701			193,747			57,618			(28,375	)		—			385,854
Operating margin³		17.2	%		13.2	%		11.7	%		7.9	%								11.2	%
Total assets less intangibles assets		226,099			518,349			1,610,566			214,194			56,171						2,625,379
Net capital expenditures excluding property ⁴		12,304			14,592			130,481			618			715						158,710


*(unaudited)*	Three months ended September 30												Nine months ended September 30
*(in thousands of dollars)*	2020			%			2019			%			2020			%			2019			%
Total revenue		177,557						176,170						488,318						524,399
Fuel surcharge		(14,366	)					(21,340	)					(46,116	)					(64,097	)

Revenue		163,191			100.0	%		154,830			100.0	%		442,202			100.0	%		460,302			100.0	%

Materials and services expenses (net of fuel surcharge)		76,327			46.8	%		67,569			43.6	%		200,700			45.4	%		196,263			42.6	%
Personnel expenses		42,719			26.2	%		44,344			28.6	%		126,597			28.6	%		136,753			29.7	%
Other operating expenses		7,147			4.4	%		7,424			4.8	%		22,861			5.2	%		25,201			5.5	%
Depreciation of property and equipment		3,839			2.4	%		3,504			2.3	%		11,333			2.6	%		9,884			2.1	%
Depreciation of right-of-use assets		4,276			2.6	%		4,643			3.0	%		13,063			3.0	%		13,607			3.0	%
Amortization of intangible assets		314			0.2	%		310			0.2	%		946			0.2	%		873			0.2	%
(Gain) loss on sale of rolling stock and equipment		46			0.0	%		2			0.0	%		78			0.0	%		(242	)		-0.1	%
(Gain) loss on derecognition of right-of-use assets		(4	)		-0.0	%		1			0.0	%		(13	)		-0.0	%		(1	)		-0.0	%
(Gain) loss on sale of land and buildings and assets held for sale		—			—			(1,199	)		-0.8	%		4			0.0	%		(1,199	)		-0.3	%

Operating income		28,527			17.5	%		28,232			18.2	%		66,633			15.1	%		79,163			17.2	%

Adjusted EBITDA		36,956			22.6	%		35,490			22.9	%		91,979			20.8	%		102,328			22.2	%


Operational data	Three months ended September 30												Nine months ended September 30
*(unaudited)*	2020			2019			Variance			%			2020			2019			Variance			%
Revenue per pound (including fuel)	$	0.45		$	0.44		$	0.01			2.3	%	$	0.48		$	0.47		$	0.01			2.1	%
Revenue per pound (excluding fuel)	$	0.41		$	0.39		$	0.02			5.1	%	$	0.43		$	0.41		$	0.02			4.9	%
Revenue per shipment (including fuel)	$	8.14		$	8.23		($	0.09	)		-1.1	%	$	8.32		$	8.26		$	0.06			0.7	%
Tonnage (in thousands of metric tons)		179			180			(1	)		-0.6	%		466			510			-44			-8.6	%
Shipments (in thousands)		21,806			21,398			408			1.9	%		58,669			63,499			-4,830			-7.6	%
Average weight per shipment (in lbs.)		18.09			18.54			(0.45	)		-2.4	%		17.51			17.70			-0.19			-1.1	%
Vehicle count, average		1,031			1,001			30			3.0	%		1,028			984			44			4.5	%
Weekly revenue per vehicle (incl. fuel, in thousands of dollars)	$	13.25		$	13.54		($	0.29	)		-2.1	%	$	12.18		$	13.66		($	1.48	)		-10.8	%


Operational data *(unaudited)*	Three months ended September 30												Nine months ended September 30
*(all Canadian dollars unless otherwise specified)*	2020			2019			Variance			%			2020			2019			Variance			%
U.S. based Conventional TL
Revenue (in thousands of U.S. dollars)		166,413			162,377			4,036			2.5	%		471,115			490,297			(19,182	)		-3.9	%
Adjusted operating ratio		91.2	%		90.9	%								92.1	%		91.2	%
Total mileage (in thousands)		91,443			88,636			2,807			3.2	%		262,922			267,199			(4,277	)		-1.6	%
Tractor count, average		3,028			2,942			86			2.9	%		2,955			2,970			(15	)		-0.5	%
Trailer count, average		11,294			11,028			266			2.4	%		10,916			11,008			(92	)		-0.8	%
Tractor age		2.3			1.8			0.5			27.8	%		2.3			1.8			0.5			27.8	%
Trailer age		6.4			6.8			(0.4	)		-5.9	%		6.4			6.8			(0.4	)		-5.9	%
Number of owner operators, average		578			376			202			53.7	%		493			387			106			27.4	%

Canadian based Conventional TL
Revenue (in thousands of dollars)		68,732			71,299			(2,567	)		-3.6	%		199,929			226,131			(26,202	)		-11.6	%
Adjusted operating ratio		85.7	%		83.1	%								86.7	%		85.5	%
Total mileage (in thousands)		21,870			23,019			(1,149	)		-5.0	%		66,117			74,706			(8,589	)		-11.5	%
Tractor count, average		591			657			(66	)		-10.0	%		601			698			(97	)		-13.9	%
Trailer count, average		2,761			2,824			(63	)		-2.2	%		2,791			2,903			(112	)		-3.9	%
Tractor age		2.2			2.6			(0.4	)		-15.4	%		2.2			2.6			(0.4	)		-15.4	%
Trailer age		5.5			5.5			0.0			0.0	%		5.5			5.5			0.0			0.0	%
Number of owner operators, average		298			348			(50	)		-14.4	%		297			351			(54	)		-15.4	%

Specialized TL
Revenue (in thousands of dollars)		255,952			273,029			(17,077	)		-6.3	%		716,387			784,955			(68,568	)		-8.7	%
Adjusted operating ratio		83.3	%		87.1	%								83.7	%		88.0	%
Tractor count, average		2,219			2,194			25			1.1	%		2,023			2,066			(43	)		-2.1	%
Trailer count, average		6,594			6,341			253			4.0	%		6,128			6,104			24			0.4	%
Tractor age		3.9			4.1			(0.2	)		-4.9	%		3.9			4.1			(0.2	)		-4.9	%
Trailer age		12.4			11.4			1.0			8.8	%		12.4			11.4			1.0			8.8	%
Number of owner operators, average		1,122			1,225			(103	)		-8.4	%		1,111			1,175			(64	)		-5.4	%


*(unaudited)* *(in thousands of dollars)*	As at September 30, 2020		As at December 31, 2019		As at December 31, 2018*
Total assets		4,920,133		4,557,255		4,049,960
Long-term debt		1,278,953		1,744,687		1,584,423
Lease liabilities		458,326		461,842		—
Shareholders’ equity		2,250,786		1,505,689		1,576,854


*(unaudited)* *(in thousands of dollars)*	Total		Less than 1 year		1 to 3 years		3 to 5 years		After 5 years
Unsecured revolving facility – June 2023		133,931		—		133,931		—		—
Unsecured term loan – June 2021 & 2022		610,000		200,000		410,000		—		—
Unsecured debenture – December 2024		200,000		—		—		200,000		—
Unsecured senior notes – December 2026		200,940		—		—		—		200,940
Conditional sales contracts		138,109		42,784		72,651		21,484		1,190
Lease liabilities		458,326		109,731		169,515		90,751		88,329

Total contractual obligations		1,741,306		352,515		786,097		312,235		290,459


*Covenants*	*Requirements*		*As at* *September 30, 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]¹		< 3.50		1.63

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		4.50


*(unaudited) - (in millions of dollars, except per share data)*
	Q3’20		Q2’20		Q1’20		Q4’19*		Q3’19*		Q2’19*		Q1’19*		Q4’18**
Total revenue		1,247.2		1,106.2		1,240.5		1,305.5		1,304.8		1,337.8		1,230.8		1,321.4
Adjusted EBITDA¹		252.3		232.1		200.5		215.7		221.7		236.3		187.6		180.7
Operating income from continuing operations		156.0		131.5		118.5		122.5		132.0		149.0		104.9		103.3

Net income		110.7		69.7		75.8		74.8		82.6		87.7		65.1		76.7
EPS – basic		1.22		0.80		0.89		0.92		1.00		1.04		0.76		0.88
EPS – diluted		1.19		0.79		0.88		0.90		0.98		1.01		0.74		0.85

Net income from continuing operations		110.7		69.7		75.8		76.5		82.6		100.2		65.1		76.7
EPS from continuing operations – basic		1.22		0.80		0.89		0.94		1.00		1.19		0.76		0.88
EPS from continuing operations – diluted		1.19		0.79		0.88		0.92		0.98		1.16		0.74		0.85

Adjusted net income¹		115.8		92.1		71.3		79.2		88.1		102.0		67.1		86.3
Adjusted EPS - diluted¹		1.25		1.04		0.83		0.95		1.04		1.18		0.77		0.96


CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION			1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME			2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME			3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY			4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS			5

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS			6


TFI International Inc.		CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
		(UNAUDITED)


(in thousands of Canadian dollars)			As at		As at
			September 30,		December 31,
	Note		2020		2019
Assets
Cash and cash equivalents				371,923		—
Trade and other receivables				633,476		587,370
Inventoried supplies				10,859		13,844
Current taxes recoverable				—		17,158
Prepaid expenses				40,945		36,077
Derivative financial instruments		22		—		39
Assets held for sale				5,572		4,625
Other assets		11		—		24,814

Current assets				1,062,775		683,927

Property and equipment		8		1,398,624		1,461,707
Right-of-use assets		9		433,194		434,017
Intangible assets		10		2,004,977		1,954,902
Other assets		11		8,463		11,241
Deferred tax assets				12,100		11,461

Non-current assets				3,857,358		3,873,328

Total assets				4,920,133		4,557,255

Liabilities
Bank indebtedness				—		3,801
Trade and other payables				502,807		443,468
Current taxes payable				28,512		6,050
Provisions		14		20,219		23,721
Other financial liabilities				2,326		2,654
Derivative financial instruments		22		2,327		843
Long-term debt		12		242,682		53,647
Lease liabilities		13		109,731		99,133

Current liabilities				908,604		633,317

Long-term debt		12		1,036,271		1,691,040
Lease liabilities		13		348,595		362,709
Employee benefits				18,616		18,585
Provisions		14		40,049		29,251
Other financial liabilities				6,783		3,649
Derivative financial instruments		22		2,327		888
Deferred tax liabilities				308,102		312,127

Non-current liabilities				1,760,743		2,418,249

Total liabilities				2,669,347		3,051,566

Equity
Share capital		15		1,260,646		680,233
Contributed surplus				22,054		21,063
Accumulated other comprehensive income				37,858		24,473
Retained earnings				930,228		779,920

Equity attributable to owners of the Company				2,250,786		1,505,689

Contingencies, letters of credit and other commitments		23

Total liabilities and equity				4,920,133		4,557,255


TFI International Inc.		CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		(UNAUDITED)


(In thousands of Canadian dollars, except per share amounts)			Three months			Three months			Nine months			Nine months
			ended			ended			ended			ended
	Note		Sept. 30, 2020			Sept. 30, 2019*			Sept. 30, 2020			Sept. 30, 2019*
Revenue				1,155,035			1,165,820			3,292,975			3,447,153
Fuel surcharge				92,126			138,945			300,885			426,224

Total revenue				1,247,161			1,304,765			3,593,860			3,873,377

Materials and services expenses		18		660,776			711,973			1,911,751			2,113,864
Personnel expenses		19		289,300			324,083			868,198			978,938
Other operating expenses				46,433			53,272			138,601			151,346
Depreciation of property and equipment				56,377			56,576			171,536			164,766
Depreciation of right-of-use assets				26,733			26,362			79,661			76,822
Amortization of intangible assets				15,842			16,799			46,818			49,087
Bargain purchase gain		5		—			—			(5,584	)		(10,787	)
Gain on sale of rolling stock and equipment				(1,494	)		(6,121	)		(8,159	)		(15,521	)
Gain on derecognition of right-of-use assets				(184	)		(69	)		(1,488	)		(762	)
(Gain) loss on sale of land and building				—			(2	)		2			(2	)
Gain on sale of assets held for sale				(2,594	)		(10,057	)		(13,378	)		(20,228	)

Total operating expenses				1,091,189			1,172,816			3,187,958			3,487,523

Operating income				155,972			131,949			405,902			385,854

Finance (income) costs
Finance income		20		(963	)		(728	)		(3,129	)		(2,183	)
Finance costs		20		16,354			21,948			55,291			64,006

Net finance costs				15,391			21,220			52,162			61,823

Income before income tax				140,581			110,729			353,740			324,031
Income tax expense		21		29,920			28,088			97,664			76,098

Net income from continuing operations				110,661			82,641			256,076			247,933
Net loss from discontinued operations		6		—			—			—			(12,478	)

Net income for the period attributable to owners of the Company				110,661			82,641			256,076			235,455

Earnings per share attributable to owners of the Company
Basic earnings per share		16		1.22			1.00			2.92			2.80
Diluted earnings per share		16		1.19			0.98			2.87			2.74

Earnings per share from continuing operations attributable to owners of the Company
Basic earnings per share		16		1.22			1.00			2.92			2.95
Diluted earnings per share		16		1.19			0.98			2.87			2.88


TFI International Inc.		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
		(UNAUDITED)


TFI International Inc.		CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
		PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 - (UNAUDITED)


(In thousands of Canadian 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			equity			Retained			of the
	Note		capital			surplus			plans			gain (loss)			investment hedge			securities			earnings			Company
Balance as at December 31, 2019				680,233			21,063			(486	)		375			24,584			—			779,920			1,505,689

Net income for the period				—			—			—			—			—			—			256,076			256,076
Other comprehensive (loss) income for the period, net of tax				—			—			—			(3,342	)		16,727			—			—			13,385

Total comprehensive (loss) income for the period				—			—			—			(3,342	)		16,727			—			256,076			269,461

Share-based payment transactions		17		—			7,063			—			—			—			—			—			7,063
Stock options exercised		15, 17		34,001			(6,046	)		—			—			—			—			—			27,955
Issuance of shares		15		563,080			—			—			—			—			—			—			563,080
Dividends to owners of the Company				—			—			—			—			—			—			(69,780	)		(69,780	)
Repurchase of own shares		15		(16,681	)		—			—			—			—			—			(35,959	)		(52,640	)
Net settlement of restricted share units		15, 17		13			(26	)		—			—			—			—			(29	)		(42	)

Total transactions with owners, recorded directly in equity				580,413			991			—			—			—			—			(105,768	)		475,636

Balance as at September 30, 2020				1,260,646			22,054			(486	)		(2,967	)		41,311			—			930,228			2,250,786

Balance as at December 31, 2018				704,510			20,448			(528	)		10,210			60,971			(5,863	)		787,106			1,576,854

Adjustment on initial application of IFRS 16				—			—			—			—			—			—			(25,678	)		(25,678	)

Net income for the period				—			—			—			—			—			—			235,455			235,455
Other comprehensive (loss) income for the period, net of tax				—			—			—			(9,612	)		(27,562	)		1,326			—			(35,848	)
Realized loss on equity securities, net of tax				—			—			—			—			—			4,537			(4,537	)		—

Total comprehensive (loss) income for the period				—			—			—			(9,612	)		(27,562	)		5,863			230,918			199,607

Share-based payment transactions		17		—			6,286			—			—			—			—			—			6,286
Stock options exercised		15, 17		19,992			(4,521	)		—			—			—			—			—			15,471
Dividends to owners of the Company				—			—			—			—			—			—			(59,972	)		(59,972	)
Repurchase of own shares		15		(46,633	)		—			—			—			—			—			(178,926	)		(225,559	)
Net settlement of restricted share units		15, 17		44			(69	)		—			—			—			—			(86	)		(111	)

Total transactions with owners, recorded directly in equity				(26,597	)		1,696			—			—			—			—			(238,984	)		(263,885	)

Balance as at September 30, 2019				677,913			22,144			(528	)		598			33,409			—			753,362			1,486,898


TFI International Inc.		NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS


(Tabular amounts in thousands of Canadian dollars, unless otherwise noted.)		PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 - (UNAUDITED)


Package and Courier:		Pickup, transport and delivery of items across North America.

Less-Than-Truckload:		Pickup, consolidation, transport and delivery of smaller loads.

Truckload ^(a):		Full loads carried directly from the customer to the destination using a closed van or specialized equipment to meet customers’ specific needs. Includes expedited transportation, flatbed, tank, container and dedicated services.

Logistics ^(b):		Asset-light logistics services, including brokerage, freight forwarding and transportation management, as well as small package parcel delivery.


	Package		Less-
	and		Than-
	Courier		Truckload			Truckload		Logistics		Corporate			Eliminations			Total
Three months ended September 30, 2020
External revenue		161,950		175,427			539,363		278,295		—			—			1,155,035
External fuel surcharge		14,256		20,754			50,440		6,676		—			—			92,126
Inter-segment revenue and fuel surcharge		1,351		2,020			5,892		1,536		—			(10,799	)		—

Total revenue		177,557		198,201			595,695		286,507		—			(10,799	)		1,247,161

Operating income (loss)		28,527		34,993			74,569		29,910		(12,027	)		—			155,972

Selected items:
Depreciation and amortization		8,429		16,409			62,960		10,553		601			—			98,952
Gain (loss) on sale of assets held for sale		—		(21	)		2,615		—		—			—			2,594
Intangible assets		246,125		237,121			1,180,217		337,722		3,792			—			2,004,977
Total assets		489,630		745,851			2,741,179		536,737		406,736			—			4,920,133
Total liabilities		147,324		257,785			574,760		147,651		1,541,996			(169	)		2,669,347
Additions to property and equipment		2,791		11,500			31,884		211		97			—			46,483

Three months ended September 30, 2019*
External revenue		153,619		203,006			553,306		255,889		—			—			1,165,820
External fuel surcharge		21,193		32,037			75,672		10,043		—			—			138,945
Inter-segment revenue and fuel surcharge		1,358		2,601			4,569		924		—			(9,452	)		—

Total revenue		176,170		237,644			633,547		266,856		—			(9,452	)		1,304,765

Operating income (loss)		28,232		25,791			75,762		13,796		(11,632	)		—			131,949

Selected items:
Depreciation and amortization		8,457		17,830			60,638		12,130		682			—			99,737
Gain on sale of land and building		—		—			2		—		—			—			2
Gain (loss) on sale of assets held for sale		1,199		—			9,018		—		(160	)		—			10,057
Intangible assets		247,083		247,417			1,131,670		346,473		3,438			—			1,976,081
Total assets		473,182		765,766			2,742,236		560,667		59,609			—			4,601,460
Total liabilities		131,485		300,192			531,742		160,058		1,991,085			—			3,114,562
Additions to property and equipment		6,944		4,003			89,315		487		8			—			100,757


				Less-
	Package and			Than-
	Courier			Truckload			Truckload		Logistics		Corporate			Eliminations			Total
Nine months ended September 30, 2020
External revenue		438,854			509,993			1,534,753		809,375		—			—			3,292,975
External fuel surcharge		45,785			67,006			166,116		21,978		—			—			300,885
Inter-segment revenue and fuel surcharge		3,679			6,257			16,441		4,216		—			(30,593	)		—

Total revenue		488,318			583,256			1,717,310		835,569		—			(30,593	)		3,593,860

Operating income (loss)		66,633			86,093			207,097		78,550		(32,471	)		—			405,902

Depreciation and amortization		25,342			51,101			187,729		32,590		1,253			—			298,015
Loss on sale of land and buildings		(2	)		—			—		—		—			—			(2	)
Gain (loss) on sale of assets held for sale		(2	)		(66	)		13,446		—		—			—			13,378
Bargain purchase gain		—			—			—		5,584		—			—			5,584
Intangible assets		246,125			237,121			1,180,217		337,722		3,792			—			2,004,977
Total assets		489,630			745,851			2,741,179		536,737		406,736			—			4,920,133
Total liabilities		147,324			257,785			574,760		147,651		1,541,996			(169	)		2,669,347
Additions to property and equipment		20,150			21,441			68,849		853		270			—			111,563

Nine months ended September 30, 2019*
External revenue		456,838			625,218			1,641,869		723,228		—			—			3,447,153
External fuel surcharge		63,675			100,548			232,550		29,451		—			—			426,224
Inter-segment revenue and fuel surcharge		3,886			7,764			15,211		2,821		—			(29,682	)		—

Total revenue		524,399			733,530			1,889,630		755,500		—			(29,682	)		3,873,377

Operating income (loss)		79,163			83,701			193,747		57,618		(28,375	)		—			385,854

Selected items:
Depreciation and amortization		24,364			52,461			177,845		34,380		1,625			—			290,675
Gain on sale of land and buildings		—			—			2		—		—			—			2
Gain (loss) on sale of assets held for sale		1,199			9,399			9,790		—		(160	)		—			20,228
Bargain purchase gain		—			—			—		10,787		—			—			10,787
Intangible assets		247,083			247,417			1,131,670		346,473		3,438			—			1,976,081
Total assets		473,182			765,766			2,742,236		560,667		59,609			—			4,601,460
Total liabilities		131,485			300,192			531,742		160,058		1,991,085			—			3,114,562
Additions to property and equipment		13,126			19,829			196,608		1,524		715			—			231,802


Total revenue	Package		Less-
	and		Than-
	Courier		Truckload		Truckload		Logistics		Eliminations			Total
Three months ended September 30, 2020
Canada		177,557		174,458		247,210		79,701		(9,023	)		669,903
United States		—		23,743		348,485		200,509		(1,776	)		570,961
Mexico		—		—		—		6,297		—			6,297

Total		177,557		198,201		595,695		286,507		(10,799	)		1,247,161

Three months ended September 30, 2019
Canada		176,170		199,288		271,453		71,627		(8,942	)		709,596
United States		—		38,356		362,094		189,944		(510	)		589,884
Mexico		—		—		—		5,285		—			5,285

Total		176,170		237,644		633,547		266,856		(9,452	)		1,304,765

Nine months ended September 30, 2020
Canada		488,318		512,660		707,583		231,030		(26,033	)		1,913,558
United States		—		70,596		1,009,727		588,461		(4,560	)		1,664,224
Mexico		—		—		—		16,078		—			16,078

Total		488,318		583,256		1,717,310		835,569		(30,593	)		3,593,860

Nine months ended September 30, 2019
Canada		524,399		611,715		801,878		211,379		(28,658	)		2,120,713
United States		—		121,815		1,087,752		528,661		(1,024	)		1,737,204
Mexico		—		—		—		15,460		—			15,460

Total		524,399		733,530		1,889,630		755,500		(29,682	)		3,873,377


Identifiable assets acquired and liabilities assumed	Note		2020*
Cash and cash equivalents				2,749
Trade and other receivables				35,555
Inventoried supplies and prepaid expenses				1,936
Property and equipment		8		21,589
Right-of-use assets		9		48,537
Intangible assets		10		33,884
Trade and other payables				(8,939	)
Income tax payable				1,615
Other non-current liabilities				(455	)
Long-term debt				(7,055	)
Lease liabilities		13		(48,889	)
Deferred tax liabilities				(6,304	)

Total identifiable net assets				74,223
Total consideration transferred				115,062

Goodwill		10		46,423
Bargain purchase gain				(5,584	)

Cash				115,623
Contingent consideration				(561	)

Total consideration transferred				115,062


Operating segment	Reportable segment	2020*
U.S. Truckload	Truckload		748
Specialized Truckload	Truckload		42,110
Logistics	Logistics		3,565

			46,423


	Land and			Rolling
	buildings			stock			Equipment			Total
Cost
Balance at December 31, 2019		400,909			1,645,986			162,735			2,209,630
Additions through business combinations		1,057			20,179			353			21,589
Other additions		19,188			81,207			11,168			111,563
Disposals		(301	)		(112,772	)		(4,696	)		(117,769	)
Reclassification to assets held for sale		(18,751	)		(11,048	)		—			(29,799	)
Effect of movements in exchange rates		1,424			20,383			81			21,888

Balance at September 30, 2020		403,526			1,643,935			169,641			2,217,102


Depreciation
Balance at December 31, 2019		76,121			567,787			104,015			747,923
Depreciation for the period		8,325			152,583			10,628			171,536
Disposals		(227	)		(83,335	)		(4,301	)		(87,863	)
Reclassification to assets held for sale		(7,073	)		(10,218	)		—			(17,291	)
Effect of movements in exchange rates		219			4,114			(160	)		4,173

Balance at September 30, 2020		77,365			630,931			110,182			818,478

Net carrying amounts
At December 31, 2019		324,788			1,078,199			58,720			1,461,707

At September 30, 2020		326,161			1,013,004			59,459			1,398,624


			Other intangible assets
							Non-
			Customer				compete			Information
	Goodwill		relationships		Trademarks		agreements			technology			Total
Cost
Balance at December 31, 2019		1,728,871		625,279		111,379		15,498			27,072			2,508,099
Additions through business combinations*		46,423		32,016		654		1,214			—			80,307
Other additions		—		—		—		—			1,765			1,765
Extinguishments		—		—		—		(1,107	)		(122	)		(1,229	)
Effect of movements in exchange rates		14,499		5,206		1,560		165			114			21,544

Balance at September 30, 2020		1,789,793		662,501		113,593		15,770			28,829			2,610,486

Amortization and impairment losses
Balance at December 31, 2019		190,780		285,430		52,186		5,806			18,995			553,197
Amortization for the period		—		38,562		4,046		2,044			2,166			46,818
Extinguishments		—		—		—		(1,107	)		(122	)		(1,229	)
Effect of movements in exchange rates		3,180		2,795		628		56			64			6,723

Balance at September 30, 2020		193,960		326,787		56,860		6,799			21,103			605,509

Net carrying amounts
At December 31, 2019		1,538,091		339,849		59,193		9,692			8,077			1,954,902

At September 30, 2020		1,595,833		335,714		56,733		8,971			7,726			2,004,977


	As at September 30,
	2020
Less than 1 year		124,306
Between 1 and 5 years		289,263
More than 5 years		100,198

		513,767