6-K
TFI International Inc. (TFII)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2022
Commission File No. 001-39224
TFI INTERNATIONAL INC.
(Translation of registrant’s name into English)
8801 Trans-Canada Highway, Suite 500
Saint-Laurent, Québec
H4S 1Z6 Canada
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
EXHIBIT INDEX
| EXHIBIT<br><br><br>NUMBER | EXHIBIT DESCRIPTION |
|---|---|
| 99.1 | News release |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TFI International Inc. | ||
|---|---|---|
| Date: February 7^th^, 2022 | By: | /s/ Josiane M. Langlois |
| Name: Josiane M. Langlois | ||
| Title: Vice-President, Legal Affairs & Corporate Secretary |
tfii-ex991_7.htm
Earnings Press Release
| Exhibit 99.1 |
|---|
For Immediate Release
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 EPS^1^ 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 EPS^1^ of $5.23 increased from $3.30 |
| --- | --- |
Montreal, Quebec, February 7, 2022 – 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 | Years ended<br><br><br>December 31 | ||||||
|---|---|---|---|---|---|---|---|
| (in millions of U.S. dollars, except per share data) | 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 |
All values are in US Dollars.
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.
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Earnings Press Release
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.
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Earnings Press Release
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)<br><br><br>(in thousands of U.S. dollars) | Package<br><br><br>and<br><br><br>Courier | Less-<br><br><br>Than-Truckload | Truckload | Logistics | Corporate | Eliminations | Total | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended December 31, 2021 | |||||||||||||||||||||
| Revenue before fuel surcharge^1^ | 150,074 | 822,911 | 506,432 | 427,561 | — | (18,555 | ) | 1,888,423 | |||||||||||||
| % of total revenue^2^ | 8 | % | 44 | % | 27 | % | 20 | % | 99 | % | |||||||||||
| Adjusted EBITDA^3^ | 43,496 | 141,189 | 111,848 | 42,465 | (20,532 | ) | — | 318,466 | |||||||||||||
| Adjusted EBITDA margin^3,4^ | 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 margin^3,4^ | 24.5 | % | 12.6 | % | 12.2 | % | 7.7 | % | 11.4 | % | |||||||||||
| Total assets less intangible assets^3^ | 186,116 | 2,031,994 | 1,362,007 | 292,026 | 88,059 | — | 3,960,202 | ||||||||||||||
| Net capital expenditures^3^ | 5,926 | 46,986 | 15,113 | 192 | 20 | — | 68,237 | ||||||||||||||
| Three months ended December 31, 2020 | |||||||||||||||||||||
| Revenue before fuel surcharge^1^ | 154,094 | 141,081 | 438,135 | 322,319 | — | (7,482 | ) | 1,048,147 | |||||||||||||
| % of total revenue^2^ | 15 | % | 14 | % | 42 | % | 29 | % | 100 | % | |||||||||||
| Adjusted EBITDA^3^ | 35,934 | 37,084 | 101,383 | 35,809 | (16,672 | ) | — | 193,538 | |||||||||||||
| Adjusted EBITDA margin^3,4^ | 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 margin^3,4^ | 19.1 | % | 17.3 | % | 12.2 | % | 8.2 | % | 11.2 | % | |||||||||||
| Total assets less intangible assets^3^ | 194,631 | 404,074 | 1,193,730 | 272,592 | 34,564 | 2,099,591 | |||||||||||||||
| Net capital expenditures^3^ | 2,533 | 5,415 | 22,955 | 83 | 225 | — | 31,211 | ||||||||||||||
| YTD December 31, 2021 | |||||||||||||||||||||
| Revenue before fuel surcharge^1^ | 560,147 | 2,440,640 | 1,901,157 | 1,620,926 | — | (54,085 | ) | 6,468,785 | |||||||||||||
| % of total revenue^2^ | 9 | % | 39 | % | 30 | % | 23 | % | 100 | % | |||||||||||
| Adjusted EBITDA^3^ | 134,845 | 415,641 | 431,181 | 169,005 | (74,193 | ) | — | 1,076,479 | |||||||||||||
| Adjusted EBITDA margin^3,4^ | 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 margin^3,4^ | 19.4 | % | 19.8 | % | 12.1 | % | 8.8 | % | 13.7 | % | |||||||||||
| Total assets less intangible assets^3^ | 186,116 | 2,031,994 | 1,362,007 | 292,026 | 88,059 | — | 3,960,202 | ||||||||||||||
| Net capital expenditures^3^ | 14,445 | 52,703 | 69,177 | 316 | 141 | — | 136,782 | ||||||||||||||
| YTD December 31, 2020 | |||||||||||||||||||||
| Revenue before fuel surcharge^1^ | 481,490 | 522,851 | 1,584,837 | 923,456 | — | (28,331 | ) | 3,484,303 | |||||||||||||
| % of total revenue^2^ | 14 | % | 15 | % | 46 | % | 25 | % | 100 | % | |||||||||||
| Adjusted EBITDA^3^ | 104,019 | 138,361 | 383,155 | 113,885 | (39,831 | ) | — | 699,589 | |||||||||||||
| Adjusted EBITDA margin^3,4^ | 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 margin^3,4^ | 16.4 | % | 16.8 | % | 13.0 | % | 9.1 | % | 12.0 | % | |||||||||||
| Total assets less intangible assets^3^ | 194,631 | 404,074 | 1,193,730 | 272,592 | 34,564 | — | 2,099,591 | ||||||||||||||
| Net capital expenditures^3^ | 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.
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Earnings Press Release
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.
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Earnings Press Release
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
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Earnings Press Release
TFI International Inc.UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2021 AND 2020
| (in thousands of U.S. dollars) | As at | ||||
|---|---|---|---|---|---|
| December 31,<br><br><br>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 |
All values are in US Dollars. ">
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 | ||||||||||||||||||
| Contributed | benefit | hedge | investment | equity | earnings | of the | |||||||||||||||||
| 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. |
All values are in US Dollars. ">
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<br><br><br>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<br><br><br>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 EBITDA^1^ | 43,496 | 29.0 | % | 35,934 | 23.3 | % | 134,845 | 24.1 | % | 104,019 | 21.6 | % | ||||||||||||
| Return on invested capital^1^ | 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 | % | |||
|
6 | |||||||||||||||||||
| --- | --- |
Earnings Press Release
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<br><br><br>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<br><br><br>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 EBITDA^1^ | 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 Ratio^2^ | 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, average^4^ | 4,583 | 8 | 4,575 | NM | 4,866 | 8 | 4,858 | NM | ||||||||||||||||
| Return on invested capital^2,3^ | - | - | ||||||||||||||||||||||
| 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 Ratio^2^ | 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 capital^2^ | 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. | ||||||||||||||||||||||||
|
7 | |||||||||||||||||||||||
| --- | --- |
Earnings Press Release
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<br><br><br>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<br><br><br>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 EBITDA^1^ | 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 capital^1^ | 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 capital^1^ | 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 capital^1^ | 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. | ||||||||||||||||||||||||
|
8 | |||||||||||||||||||||||
| --- | --- |
Earnings Press Release
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<br><br><br>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 EBITDA^1^ | 42,465 | 9.9 | % | 35,809 | 11.1 | % | 169,005 | 10.4 | % | 113,885 | 12.3 | % | ||||||||||||
| Return on invested capital^1^ | 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.
|
9 |
|---|
Earnings Press Release
Adjusted net income reconciliation:
| (unaudited)<br><br><br>(in thousands of U.S. dollars, except per share data) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>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<br><br><br>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 | — | |||||||
| U.S. Tax Reform | — | (1,072 | ) | — | 4,451 | |||||||
| Tax impact of adjustments | (2,628 | ) | (3,199 | ) | (11,234 | ) | (10,278 | ) | ||||
| Adjusted net income | 148,620 | 93,357 | 498,348 | 299,763 | ||||||||
| Adjusted EPS – basic | 1.60 | 1.00 | 5.36 | 3.36 | ||||||||
| Adjusted EPS – diluted | 1.57 | 0.98 | 5.23 | 3.30 |
Adjusted earnings per share (adjusted “EPS”) - basic: Adjusted net income divided by the weighted average number of common shares.
Adjusted EPS - diluted: Adjusted net income divided by the weighted average number of diluted common shares.
Adjusted EBITDA: Net income or loss before finance income and costs, income tax expense, depreciation, amortization, impairment of intangible assets, bargain purchase gain, gain or loss on sale of land and buildings, assets held for sale and sale of business, and gain or loss on dispospal of intangible assets. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.
Segmented adjusted EBITDA refers to operating income (loss) before depreciation, amortization, impairment of intangible assets, bargain purchase gain, gain or loss on sale of business, land and buildings, and assets held for sale and gain or loss on dispospal of intangible assets. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.
Consolidated adjusted EBITDA reconciliation:
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net income | 144,139 | 86,328 | 664,361 | 275,675 | ||||||||
| Net finance costs | 21,441 | 15,382 | 73,018 | 53,910 | ||||||||
| Income tax expense | 49,399 | 15,412 | 151,806 | 86,982 | ||||||||
| Depreciation of property and equipment | 65,294 | 43,753 | 225,007 | 170,520 | ||||||||
| Depreciation of right-of-use assets | 31,190 | 21,618 | 112,782 | 80,496 | ||||||||
| Amortization of intangible assets | 13,653 | 13,557 | 55,243 | 48,213 | ||||||||
| Gain on sale of business | — | (306 | ) | — | (306 | ) | ||||||
| Bargain purchase gain | — | — | (193,549 | ) | (4,008 | ) | ||||||
| Loss on sale of land and buildings | 9 | 5 | 19 | 6 | ||||||||
| Gain loss on sale of assets held for sale | (6,654 | ) | (2,211 | ) | (12,209 | ) | (11,899 | ) | ||||
| Loss on sale of intangible assets | (5 | ) | — | 1 | — | |||||||
| Adjusted EBITDA | 318,466 | 193,538 | 1,076,479 | 699,589 | ||||||||
|
10 | |||||||||||
| --- | --- |
Earnings Press Release
Segmented adjusted EBITDA reconciliation:
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Package and Courier | ||||||||||||
| Operating income | 36,713 | 29,401 | 108,440 | 78,753 | ||||||||
| Depreciation and amortization | 6,783 | 6,626 | 26,404 | 25,357 | ||||||||
| Gain on sale of land and buildings | — | (1 | ) | — | — | |||||||
| Gain on sale of assets held for sale | — | (92 | ) | — | (91 | ) | ||||||
| Loss on disposal of intangible assets | — | — | 1 | — | ||||||||
| Adjusted EBITDA | 43,496 | 35,934 | 134,845 | 104,019 | ||||||||
| Less-Than-Truckload | ||||||||||||
| Operating income | 103,449 | 24,464 | 482,754 | 87,950 | ||||||||
| Depreciation and amortization | 37,739 | 12,611 | 116,060 | 50,354 | ||||||||
| Bargain purchase gain | — | — | (181,549 | ) | — | |||||||
| Loss on sale of land and buildings | 6 | 1 | 16 | 1 | ||||||||
| (Gain) loss on sale of assets held for sale | (5 | ) | 8 | (1,640 | ) | 56 | ||||||
| Adjusted EBITDA | 141,189 | 37,084 | 415,641 | 138,361 | ||||||||
| Truckload | ||||||||||||
| Operating income | 61,803 | 53,604 | 230,189 | 206,346 | ||||||||
| Depreciation and amortization | 56,699 | 50,212 | 211,561 | 188,979 | ||||||||
| Gain on sale of business | — | (306 | ) | — | (306 | ) | ||||||
| Gain on sale of assets held for sale | (6,649 | ) | (2,127 | ) | (10,569 | ) | (11,864 | ) | ||||
| Gain on disposal of intangible assets | (5 | ) | — | — | — | |||||||
| Adjusted EBITDA | 111,848 | 101,383 | 431,181 | 383,155 | ||||||||
| Logistics | ||||||||||||
| Operating income | 32,869 | 26,462 | 142,794 | 84,459 | ||||||||
| Depreciation and amortization | 9,593 | 9,342 | 38,208 | 33,429 | ||||||||
| Bargain purchase gain | — | — | (12,000 | ) | (4,008 | ) | ||||||
| Loss on sale of land and buildings | 3 | 5 | 3 | 5 | ||||||||
| Adjusted EBITDA | 42,465 | 35,809 | 169,005 | 113,885 | ||||||||
| Corporate | ||||||||||||
| Operating loss | (19,855 | ) | (16,809 | ) | (74,992 | ) | (40,941 | ) | ||||
| Depreciation and amortization | (677 | ) | 137 | 799 | 1,110 | |||||||
| Adjusted EBITDA | (20,532 | ) | (16,672 | ) | (74,193 | ) | (39,831 | ) |
Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue before fuel surcharge.
Operating margin is calculated as operating income (loss) as a percentage of revenue before fuel surcharge.
Adjusted operating ratio: Operating expenses before gain on sale of business, bargain purchase gain, and gain or loss on sale of land and buildings and assets held for sale, and gain or loss on disposal of intangible assets (“Adjusted operating expenses”), net of fuel surcharge revenue, divided by revenue before fuel surcharge. Although the adjusted operating ratio is not a recognized financial measure defined by IFRS, it is a widely recognized measure in the transportation industry, which the Company believes provides a comparable benchmark for evaluating the Company’s performance. Also, 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.
Consolidated adjusted operating ratio reconciliation:
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Operating expenses | 1,925,935 | 1,004,884 | 6,331,244 | 3,364,567 | ||||||||
| Gain on sale of business | — | 306 | — | 306 | ||||||||
| Bargain purchase gain | — | — | 193,549 | 4,008 | ||||||||
| Loss on sale of land and building | (9 | ) | (5 | ) | (19 | ) | (6 | ) | ||||
| Gain on sale of assets held for sale | 6,654 | 2,211 | 12,209 | 11,899 | ||||||||
| Gain (loss) on disposal of intangible assets | 5 | — | (1 | ) | — | |||||||
| Adjusted operating expenses | 1,932,585 | 1,007,396 | 6,536,982 | 3,380,774 | ||||||||
| Fuel surcharge revenue | (252,491 | ) | (73,859 | ) | (751,644 | ) | (296,831 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 1,680,094 | 933,537 | 5,785,338 | 3,083,943 | ||||||||
| Revenue before fuel surcharge | 1,888,423 | 1,048,147 | 6,468,785 | 3,484,303 | ||||||||
| Adjusted operating ratio | 89.0 | % | 89.1 | % | 89.4 | % | 88.5 | % | ||||
|
11 | |||||||||||
| --- | --- |
Earnings Press Release
Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations:
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Less-Than-Truckload | ||||||||||||
| Total revenue | 959,546 | 157,628 | 2,815,390 | 589,235 | ||||||||
| Total operating expenses | 856,097 | 133,164 | 2,332,636 | 501,285 | ||||||||
| Operating income | 103,449 | 24,464 | 482,754 | 87,950 | ||||||||
| Operating expenses | 856,097 | 133,164 | 2,332,636 | 501,285 | ||||||||
| Bargain purchase gain | — | — | 181,549 | — | ||||||||
| Gain (loss) on sale of land and buildings and assets held for sale | (1 | ) | (9 | ) | 1,624 | (57 | ) | |||||
| Adjusted operating expenses | 856,096 | 133,155 | 2,515,809 | 501,228 | ||||||||
| Fuel surcharge revenue | (136,635 | ) | (16,547 | ) | (374,750 | ) | (66,384 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 719,461 | 116,608 | 2,141,059 | 434,844 | ||||||||
| Revenue before fuel surcharge | 822,911 | 141,081 | 2,440,640 | 522,851 | ||||||||
| Adjusted operating ratio | 87.4 | % | 82.7 | % | 87.7 | % | 83.2 | % | ||||
| Less-Than-Truckload - Revenue before fuel surcharge | ||||||||||||
| U.S. based LTL | 680,212 | 625 | 1,889,611 | 2,692 | ||||||||
| Canadian based LTL | 144,697 | 141,081 | 556,891 | 522,842 | ||||||||
| Eliminations | (1,998 | ) | (625 | ) | (5,862 | ) | (2,683 | ) | ||||
| 822,911 | 141,081 | 2,440,640 | 522,851 | |||||||||
| Less-Than-Truckload - Fuel surcharge revenue | ||||||||||||
| U.S. based LTL | 108,275 | - | 281,110 | - | ||||||||
| Canadian based LTL | 28,598 | 16,547 | 94,166 | 66,384 | ||||||||
| Eliminations | (238 | ) | - | (526 | ) | - | ||||||
| 136,635 | 16,547 | 374,750 | 66,384 | |||||||||
| Less-Than-Truckload - Operating income (loss) | ||||||||||||
| U.S. based LTL | 72,077 | 77 | 369,027 | 317 | ||||||||
| Canadian based LTL | 31,372 | 24,387 | 113,727 | 87,633 | ||||||||
| 103,449 | 24,464 | 482,754 | 87,950 | |||||||||
| U.S. based LTL | ||||||||||||
| Operating expenses* | 716,410 | 548 | 1,801,694 | 2,375 | ||||||||
| Bargain purchase gain | - | - | 181,549 | - | ||||||||
| Loss on sale of land and buildings and assets held for sale | (7 | ) | - | (17 | ) | - | ||||||
| Adjusted operating expenses | 716,403 | 548 | 1,983,226 | 2,375 | ||||||||
| Fuel surcharge revenue | (108,275 | ) | - | (281,110 | ) | - | ||||||
| Adjusted operating expenses, net of fuel surcharge | 608,128 | 548 | 1,702,116 | 2,375 | ||||||||
| Revenue before fuel surcharge | 680,212 | 625 | 1,889,611 | 2,692 | ||||||||
| Adjusted operating ratio | 89.4 | % | 87.7 | % | 90.1 | % | 88.2 | % | ||||
| Canadian based LTL | ||||||||||||
| Operating expenses* | 141,923 | 133,241 | 537,330 | 501,593 | ||||||||
| Gain (loss) on sale of land and buildings and assets held for sale | 6 | (9 | ) | 1,641 | (57 | ) | ||||||
| Adjusted operating expenses | 141,929 | 133,232 | 538,971 | 501,536 | ||||||||
| Fuel surcharge revenue | (28,598 | ) | (16,547 | ) | (94,166 | ) | (66,384 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge | 113,331 | 116,685 | 444,805 | 435,152 | ||||||||
| Revenue before fuel surcharge | 144,697 | 141,081 | 556,891 | 522,842 | ||||||||
| Adjusted operating ratio | 78.3 | % | 82.7 | % | 79.9 | % | 83.2 | % | ||||
|
12 | |||||||||||
| --- | --- |
Earnings Press Release
Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations (continued):
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Truckload | ||||||||||||
| Total revenue | 584,009 | 477,262 | 2,162,752 | 1,748,359 | ||||||||
| Total operating expenses | 522,206 | 423,658 | 1,932,563 | 1,542,013 | ||||||||
| Operating income | 61,803 | 53,604 | 230,189 | 206,346 | ||||||||
| Operating expenses | 522,206 | 423,658 | 1,932,563 | 1,542,013 | ||||||||
| Gain on sale of business | — | 306 | — | 306 | ||||||||
| Gain on sale of land and buildings and assets held for sale | 6,649 | 2,127 | 10,569 | 11,864 | ||||||||
| Adjusted operating expenses | 528,855 | 426,091 | 1,943,132 | 1,554,183 | ||||||||
| Fuel surcharge revenue | (77,577 | ) | (39,127 | ) | (261,595 | ) | (163,522 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 451,278 | 386,964 | 1,681,537 | 1,390,661 | ||||||||
| Revenue before fuel surcharge | 506,432 | 438,135 | 1,901,157 | 1,584,837 | ||||||||
| Adjusted operating ratio | 89.1 | % | 88.3 | % | 88.4 | % | 87.7 | % | ||||
| Truckload - Revenue before fuel surcharge | ||||||||||||
| U.S. based Conventional TL | 186,988 | 161,476 | 734,027 | 632,590 | ||||||||
| Canadian based Conventional TL | 73,786 | 58,497 | 250,177 | 206,418 | ||||||||
| Specialized TL | 247,641 | 219,093 | 923,683 | 749,655 | ||||||||
| Eliminations | (1,983 | ) | (931 | ) | (6,730 | ) | (3,826 | ) | ||||
| 506,432 | 438,135 | 1,901,157 | 1,584,837 | |||||||||
| Truckload - Fuel surcharge revenue | ||||||||||||
| U.S. based Conventional TL | 33,864 | 19,006 | 122,134 | 81,222 | ||||||||
| Canadian based Conventional TL | 9,414 | 4,798 | 29,043 | 19,408 | ||||||||
| Specialized TL | 34,485 | 15,244 | 110,930 | 63,018 | ||||||||
| Eliminations | (186 | ) | 79 | (512 | ) | (126 | ) | |||||
| 77,577 | 39,127 | 261,595 | 163,522 | |||||||||
| Truckload - Operating income | ||||||||||||
| U.S. based Conventional TL | 15,070 | 13,722 | 55,464 | 51,857 | ||||||||
| Canadian based Conventional TL | 8,565 | 8,673 | 30,367 | 28,337 | ||||||||
| Specialized TL | 38,168 | 31,209 | 144,358 | 126,152 | ||||||||
| 61,803 | 53,604 | 230,189 | 206,346 | |||||||||
| U.S. based Conventional TL | ||||||||||||
| Operating expenses* | 205,782 | 166,760 | 800,697 | 661,955 | ||||||||
| Gain on sale of land and buildings and assets held for sale | 6,643 | — | 6,643 | 1,103 | ||||||||
| Adjusted operating expenses | 212,425 | 166,760 | 807,340 | 663,058 | ||||||||
| Fuel surcharge revenue | (33,864 | ) | (19,006 | ) | (122,134 | ) | (81,222 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 178,561 | 147,754 | 685,206 | 581,836 | ||||||||
| Revenue before fuel surcharge | 186,988 | 161,476 | 734,027 | 632,590 | ||||||||
| Adjusted operating ratio | 95.5 | % | 91.5 | % | 93.3 | % | 92.0 | % | ||||
| Canadian based Conventional TL | ||||||||||||
| Operating expenses* | 74,635 | 54,622 | 248,853 | 197,489 | ||||||||
| Gain on sale of land and buildings and assets held for sale | — | — | 17 | — | ||||||||
| Adjusted operating expenses | 74,635 | 54,622 | 248,870 | 197,489 | ||||||||
| Fuel surcharge revenue | (9,414 | ) | (4,798 | ) | (29,043 | ) | (19,408 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 65,221 | 49,824 | 219,827 | 178,081 | ||||||||
| Revenue before fuel surcharge | 73,786 | 58,497 | 250,177 | 206,418 | ||||||||
| Adjusted operating ratio | 88.4 | % | 85.2 | % | 87.9 | % | 86.3 | % | ||||
| Specialized TL | ||||||||||||
| Operating expenses* | 243,958 | 203,128 | 890,255 | 686,521 | ||||||||
| Gain on sale of business | — | 306 | — | 306 | ||||||||
| Gain on sale of assets held for sale | 6 | 2,127 | 3,909 | 10,761 | ||||||||
| Adjusted operating expenses | 243,964 | 205,561 | 894,164 | 697,588 | ||||||||
| Fuel surcharge revenue | (34,485 | ) | (15,244 | ) | (110,930 | ) | (63,018 | ) | ||||
| Adjusted operating expenses, net of fuel surcharge revenue | 209,479 | 190,317 | 783,234 | 634,570 | ||||||||
| Revenue before fuel surcharge | 247,641 | 219,093 | 923,683 | 749,655 | ||||||||
| Adjusted operating ratio | 84.6 | % | 86.9 | % | 84.8 | % | 84.6 | % |
* Operating expenses excluding intra TL eliminations
|
13 |
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Earnings Press Release
Free cash flow conversion : Adjusted EBITDA less net capital expenditures, divided by the adjusted EBITDA. Management believes that this measure provides a benchmark to evaluate the performance of the Company in regard to its ability to convert its operating profit into free cash flow.
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net income | 144,139 | 86,328 | 664,361 | 275,675 | ||||||||
| Net finance costs | 21,441 | 15,382 | 73,018 | 53,910 | ||||||||
| Income tax expense | 49,399 | 15,412 | 151,806 | 86,982 | ||||||||
| Depreciation of property and equipment | 65,294 | 43,753 | 225,007 | 170,520 | ||||||||
| Depreciation of right-of-use assets | 31,190 | 21,618 | 112,782 | 80,496 | ||||||||
| Amortization of intangible assets | 13,653 | 13,557 | 55,243 | 48,213 | ||||||||
| Gain on the sale of business | — | (306 | ) | — | (306 | ) | ||||||
| Bargain purchase gain | — | — | (193,549 | ) | (4,008 | ) | ||||||
| Loss on sale of land and buildings | 9 | 5 | 19 | 6 | ||||||||
| Gain on sale of assets held for sale | (6,654 | ) | (2,211 | ) | (12,209 | ) | (11,899 | ) | ||||
| (Gain) loss on sale of intangible assets | (5 | ) | — | 1 | — | |||||||
| Adjusted EBITDA | 318,466 | 193,538 | 1,076,479 | 699,589 | ||||||||
| Net capital expenditures | (68,237 | ) | (31,211 | ) | (136,782 | ) | (70,764 | ) | ||||
| Adjusted EBITDA less net capital expenditures | 250,229 | 162,327 | 939,697 | 628,825 | ||||||||
| Free cash flow conversion | 78.6 | % | 83.9 | % | 87.3 | % | 89.9 | % |
Free cash flow: Net cash from operating activities less additions to property and equipment plus proceeds from sale of property and equipment and assets held for sale. Management believes that this measure provides a benchmark to evaluate the performance of the Company in regard to its ability to meet capital requirements.
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Three months ended<br><br><br>December 31 | Years ended<br><br><br>December 31 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Net cash from operating activities | 190,333 | 164,928 | 855,351 | 610,862 | ||||||||
| Additions to property and equipment | (102,595 | ) | (60,410 | ) | (267,173 | ) | (142,814 | ) | ||||
| Proceeds from sale of property and equipment | 22,508 | 23,949 | 92,842 | 52,116 | ||||||||
| Proceeds from sale of assets held for sale | 10,503 | 6,248 | 19,869 | 24,480 | ||||||||
| Free cash flow | 120,749 | 134,715 | 700,889 | 544,644 |
Total assets less intangible assets: Management believes that this presents a more useful basis to evaluate the return on the productive assets. The excluded intangibles relate primarily to intangibles assets acquired through business acquisitions.
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Package<br><br><br>and<br><br><br>Courier | Less-<br><br><br>Than-Truckload | Truckload | Logistics | Corporate | Eliminations | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As at December 31, 2021 | ||||||||||||||
| Total assets | 379,881 | 2,220,598 | 2,317,615 | 746,638 | 88,391 | - | 5,753,123 | |||||||
| Intangible assets | 193,765 | 188,604 | 955,608 | 454,612 | 332 | - | 1,792,921 | |||||||
| Total assets less intangible assets | 186,116 | 2,031,994 | 1,362,007 | 292,026 | 88,059 | - | 3,960,202 | |||||||
| As at December 31, 2020 | ||||||||||||||
| Total assets | 387,919 | 593,653 | 2,100,900 | 729,690 | 35,092 | - | 3,847,254 | |||||||
| Intangible assets | 193,288 | 189,579 | 907,170 | 457,098 | 528 | - | 1,747,663 | |||||||
| Total assets less intangible assets | 194,631 | 404,074 | 1,193,730 | 272,592 | 34,564 | - | 2,099,591 |
Net capital expenditures: Additions to rolling stock and equipment, net of proceeds from the sale of rolling stock and equipment and assets held for sale excluding property. Management believes that this measure illustrates the recurring net capital expenditures which is required for the respective period.
|
14 |
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Earnings Press Release
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | Package<br><br><br>and<br><br><br>Courier | Less-<br><br><br>Than-Truckload | Truckload | Logistics | Corporate | Eliminations | Total | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three months ended December 31, 2021 | |||||||||||||||||||
| Additions to rolling stock | 4,794 | 47,680 | 33,394 | - | - | 85,868 | |||||||||||||
| Additions to equipment | 1,112 | 1,620 | 1,801 | 235 | 20 | 4,788 | |||||||||||||
| Proceeds from the sale of rolling stock | 20 | (2,313 | ) | (20,075 | ) | (26 | ) | (22,394 | ) | ||||||||||
| Proceeds from the sale of equipment | (1 | ) | (7 | ) | (17 | ) | (25 | ) | |||||||||||
| Net capital expenditures | 5,926 | 46,986 | 15,113 | 192 | 20 | - | 68,237 | ||||||||||||
| Three months ended ended December 31, 2020 | |||||||||||||||||||
| Additions to rolling stock | 1,571 | 6,107 | 45,008 | 58 | - | - | 52,744 | ||||||||||||
| Additions to equipment | 1,014 | 89 | 1,211 | 72 | 225 | - | 2,611 | ||||||||||||
| Proceeds from the sale of rolling stock | (52 | ) | (781 | ) | (23,256 | ) | 11 | (24,078 | ) | ||||||||||
| Proceeds from the sale of equipment | - | - | (8 | ) | (58 | ) | (66 | ) | |||||||||||
| Net capital expenditures | 2,533 | 5,415 | 22,955 | 83 | 225 | - | 31,211 | ||||||||||||
| YTD ended December 31, 2021 | |||||||||||||||||||
| Additions to rolling stock | 11,569 | 55,087 | 150,282 | 142 | — | - | 217,080 | ||||||||||||
| Additions to equipment | 3,125 | 2,655 | 6,897 | 373 | 141 | - | 13,191 | ||||||||||||
| Proceeds from the sale of rolling stock | (246 | ) | (5,024 | ) | (87,995 | ) | (146 | ) | — | - | (93,411 | ) | |||||||
| Proceeds from the sale of equipment | (3 | ) | (15 | ) | (7 | ) | (53 | ) | - | - | (78 | ) | |||||||
| Net capital expenditures | 14,445 | 52,703 | 69,177 | 316 | 141 | - | 136,782 | ||||||||||||
| YTD ended December 31, 2020 | |||||||||||||||||||
| Additions to rolling stock | 11,799 | 13,680 | 86,950 | 216 | - | - | 112,645 | ||||||||||||
| Additions to equipment | 5,382 | 1,558 | 3,299 | 250 | 349 | - | 10,838 | ||||||||||||
| Proceeds from the sale of rolling stock | (504 | ) | (3,556 | ) | (48,305 | ) | (103 | ) | - | (52,468 | ) | ||||||||
| Proceeds from the sale of equipment | (4 | ) | (9 | ) | (163 | ) | (75 | ) | (251 | ) | |||||||||
| Net capital expenditures | 16,673 | 11,673 | 41,781 | 288 | 349 | - | 70,764 |
Covenants : The following table indicates the Company’s financial covenants to be maintained under its credit facility. These covenants are measured on a consolidated rolling twelve-month basis and are calculated as prescribed by the credit agreement which, among other things, requires the exclusion of the impact of the new standard IFRS 16 Leases:
| Covenants | Requirements | As at<br><br><br>December 31, 2021 | |
|---|---|---|---|
| Funded debt-to- EBITDA ratio [ratio of total debt, net of cash, 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] | < 3.50 | 1.51 | |
| EBITDAR Coverage 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 | 5.59 |
Return on invested capital (“ROIC”): Management believes ROIC at the segment level is a useful measure in the efficiency in the use of capital funds. The Company calculates ROIC as segment operating income net of exclusions, after tax, divided by the segment average invested capital. Operating income net of exclusions, after tax, is calculated as the trailing twelve months of operating income before bargain purchase gain, gain or loss on the sale of land and buildings and assets held for sale, and amortization of intangible assets, after tax using the statutory tax rate of the Company. Average invested capital is calculated as total assets excluding intangibles, net of trade and other payables, income taxes payable and provisions averaged between the beginning and ending balance over a twelve-month period.
|
15 |
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Earnings Press Release
| Return on invested capital segment reconciliation: | ||||||
|---|---|---|---|---|---|---|
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | As at<br><br><br>December 31 | |||||
| 2021 | 2020 | |||||
| Package and Courier | ||||||
| Operating income | 108,440 | 78,753 | ||||
| (Gain) loss on sale of land and buildings | — | — | ||||
| Gain on sale of assets held for sale | — | (91 | ) | |||
| Amortization of intangible assets | 903 | 947 | ||||
| Operating income, net of exclusions | 109,343 | 79,609 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 80,367 | 58,513 | ||||
| Intangible assets | 193,765 | 193,288 | ||||
| Total assets, excluding intangible assets | 186,116 | 194,631 | ||||
| less: Trade and other payables, income taxes payable and provisions | (65,438 | ) | (66,793 | ) | ||
| Total invested capital, current year | 314,443 | 321,126 | ||||
| Intangible assets, prior year | 193,288 | 190,135 | ||||
| Total assets, excluding intangible assets, prior year | 194,631 | 180,902 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (66,793 | ) | (49,963 | ) | ||
| Total invested capital, prior year | 321,126 | 321,074 | ||||
| Average invested capital | 317,785 | 321,100 | ||||
| Return on invested capital | 25.3 | % | 18.2 | % | ||
| Less-Than-Truckload - Canadian based LTL | ||||||
| Operating income | 113,727 | 87,633 | ||||
| Gain on sale of assets held for sale | (1,640 | ) | 56 | |||
| Amortization of intangible assets | 9,004 | 8,392 | ||||
| Operating income, net of exclusions | 121,091 | 96,081 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 89,002 | 70,620 | ||||
| Intangible assets | 182,084 | 189,579 | ||||
| Total assets, excluding intangible assets | 373,655 | 403,549 | ||||
| less: Trade and other payables, income taxes payable and provisions | (74,241 | ) | (76,608 | ) | ||
| Total invested capital, current year | 481,498 | 516,520 | ||||
| Intangible assets, prior year | 189,579 | 188,448 | ||||
| Total assets, excluding intangible assets, prior year | 403,549 | 406,488 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (76,608 | ) | (74,156 | ) | ||
| Total invested capital, prior year | 516,520 | 520,780 | ||||
| Average invested capital | 499,009 | 518,650 | ||||
| Return on invested capital | 17.8 | % | 13.6 | % | ||
| Truckload - U.S. based Conventional TL | ||||||
| Operating income | 55,464 | 51,857 | ||||
| Gain on sale of assets held for sale | (6,643 | ) | (1,103 | ) | ||
| Amortization of intangible assets | 7,206 | 7,067 | ||||
| Operating income, net of exclusions | 56,027 | 57,821 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 41,180 | 42,498 | ||||
| Intangible assets | 311,195 | 317,145 | ||||
| Total assets, excluding intangible assets | 593,049 | 540,648 | ||||
| less: Trade and other payables, income taxes payable and provisions | (117,621 | ) | (95,275 | ) | ||
| Total invested capital, current year | 786,623 | 762,518 | ||||
| Intangible assets, prior year | 317,145 | 320,425 | ||||
| Total assets, excluding intangible assets, prior year | 540,648 | 578,459 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (95,275 | ) | (67,963 | ) | ||
| Total invested capital, prior year | 762,518 | 830,921 | ||||
| Average invested capital | 774,571 | 796,720 | ||||
| Return on invested capital | 5.3 | % | 5.3 | % | ||
|
16 | |||||
| --- | --- |
Earnings Press Release
| Return on invested capital segment reconciliation (continued): | ||||||
|---|---|---|---|---|---|---|
| (unaudited)<br><br><br>(in thousands of U.S. dollars) | As at<br><br><br>December 31 | |||||
| 2021 | 2020 | |||||
| Truckload - Canadian based Conventional TL | ||||||
| Operating income | 30,367 | 28,337 | ||||
| Gain on sale of land and buildings | — | (8 | ) | |||
| Gain on sale of assets held for sale | (17 | ) | — | |||
| Amortization of intangible assets | 2,124 | 2,081 | ||||
| Operating income, net of exclusions | 32,474 | 30,410 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 23,868 | 22,351 | ||||
| Intangible assets | 104,947 | 96,737 | ||||
| Total assets, excluding intangible assets | 169,197 | 121,407 | ||||
| less: Trade and other payables, income taxes payable and provisions | (28,473 | ) | (24,839 | ) | ||
| Total invested capital, current year | 245,671 | 193,305 | ||||
| Intangible assets, prior year | 96,737 | 96,909 | ||||
| Total assets, excluding intangible assets, prior year | 121,407 | 124,428 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (24,839 | ) | (21,569 | ) | ||
| Total invested capital, prior year | 193,305 | 199,768 | ||||
| Average invested capital | 219,488 | 196,537 | ||||
| Return on invested capital | 10.9 | % | 11.4 | % | ||
| Truckload - Specialized TL | ||||||
| Operating income | 144,358 | 126,152 | ||||
| Gain on sale of land and buildings | — | — | ||||
| Gain on sale of assets held for sale | (3,910 | ) | (13,583 | ) | ||
| Amortization of intangible assets | 12,250 | 10,194 | ||||
| Operating income, net of exclusions | 152,698 | 122,763 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 112,233 | 90,231 | ||||
| Intangible assets | 539,466 | 493,287 | ||||
| Total assets, excluding intangible assets | 599,761 | 531,677 | ||||
| less: Trade and other payables, income taxes payable and provisions | (81,776 | ) | (83,225 | ) | ||
| Total invested capital, current year | 1,057,451 | 941,739 | ||||
| Intangible assets, prior year | 493,287 | 443,245 | ||||
| Total assets, excluding intangible assets, prior year | 531,677 | 503,682 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (83,225 | ) | (63,649 | ) | ||
| Total invested capital, prior year | 941,739 | 883,278 | ||||
| Average invested capital | 999,595 | 912,509 | ||||
| Return on invested capital | 11.2 | % | 9.9 | % | ||
| Logistics | ||||||
| Operating income | 142,794 | 84,459 | ||||
| Loss on sale of land and buildings | 3 | 5 | ||||
| Amortization of intangible assets | 22,683 | 17,889 | ||||
| Bargain Purchase gain | (12,000 | ) | (4,008 | ) | ||
| Operating income, net of exclusions | 153,480 | 98,345 | ||||
| Income tax | 26.5 | % | 26.5 | % | ||
| Operating income net of exclusions, after tax | 112,808 | 72,284 | ||||
| Intangible assets | 454,612 | 457,098 | ||||
| Total assets, excluding intangible assets | 292,026 | 272,592 | ||||
| less: Trade and other payables, income taxes payable and provisions | (199,967 | ) | (144,305 | ) | ||
| Total invested capital, current year | 546,671 | 585,385 | ||||
| Intangible assets, prior year | 457,098 | 262,691 | ||||
| Total assets, excluding intangible assets, prior year | 272,592 | 159,152 | ||||
| less: Trade and other payables, income taxes payable and provisions, prior year | (144,305 | ) | (61,560 | ) | ||
| Total invested capital, prior year | 585,385 | 360,283 | ||||
| Average invested capital | 566,028 | 472,834 | ||||
| Return on invested capital | 19.9 | % | 15.3 | % | ||
|
17 | |||||
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