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Third Quarter Ended September 30, 2019
2
In the interest of providing shareholders and potential investors with information regarding TFI International, including management’s assessment of
future plans and operations, certain statements in this presentation are forward-looking statements subject to risks, uncertainties and other
important factors that could cause the Company’s actual performance to differ materially from those expressed in or implied by such statements.
Such factors are further discussed under Risks and Uncertainties in the Company’s Annual Information Form and MD&A, but readers are cautioned
that the list of factors that may affect future growth, results and performance is not exhaustive, and undue reliance should not be placed on forward-
looking statements.
The expectations conveyed by the forward-looking statements are based on information available to it on the date such statements were made, and
there can be no assurance that such expectations will prove to be correct. All subsequent forward-looking statements, whether written or orally
attributable to the Company or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.
Unless otherwise required by applicable securities laws, the Company expressly disclaims any intention, and assumes no obligation, to update or
revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-Looking Statements
TFI International: Who We Are
3
Diversified: Package & Courier,
Less-Than-Truckload, Truckload and
Logistics & Last Mile
Full service: Transport and
logistics
North American Leader:
Operations across U.S., Canada and
Mexico
Extensive Network:
390 facilities, 17,351 tractors1,
25,952 trailers
Decentralized, entrepreneurial
management approach
17,651employees, of which 8,835
are drivers
1 7,834 owned or leased; 9,517 are independent contractors
…mitigate risk for customers
Our Customer Value Proposition
4
…improve their efficiency and delivery timing
…drive satisfaction for the end consumer
We create transportation and supply chain advantages to…
…reduce their delivery costs
5
Why Invest in TFI International?
Superior record of growth and
shareholder value creation
Market leader in key transportation
and logistics segments
Diversification by industry sectors and geography
Robust Return on Equity
Track record of M&A execution
with well-defined acquisition
pipeline
Investment Highlights
6
Note: All financial results presented on this page represent continuing operations.1 TTM as of Q3 2019, calculated using revenue before fuel surcharge.2 TTM FCF divided by the September 30, 2019 market cap. 3 Calculated as TTM Q3 2019 (Adjusted EBITDA – Net Capex ex-property) / Adjusted EBITDA.4 Before impairment.5 Based on next $0.26 dividend approved by the Board on October 24, 2019
Best-in-class operating margins, FCF yield and FCF conversion
10.6% Operating Margin1
14.3% FCF Yield2
72.3% FCF Conversion3
Avg. Adjusted ROE of 17.7% since 20154
Proven track record of growth through disciplined acquisition strategy
Completed 80 acquisitions since 2008
Industry remains fragmented
Balanced capital allocation approach to drive shareholder value
$3.5 billion 20-year total FCF
$1.1 billion returned to shareholders since 2015
Robust balance sheet position
Access to $1.2 billion revolving facility ($253 million undrawn)
Annual dividend yield of 2.6%5
4.4%
8.2% 8.2%
9.7%
1.2%
TFII Package & Courier PeerAverage
Less-Than-Truckload PeerAverage
Truckload PeerAverage
Logistics & Last Mile PeerAverage
7
Low Capex Facilitates Asset-Light Model
Note: TFI Net Capex excludes purchases and sales of property. TFI data reflects TTM Q3-2019 while peer data is TTM Q2-2019.1 Package & Courier: FedEx and UPS. 2 Less-Than-Truckload: ArcBest, Old Dominion Freight Line, Saia and YRC Worldwide. 3 Truckload: Covenant, Heartland, Knight-Swift, Marten, Werner, Schneider and U.S. Xpress. 4 Logistics & Last Mile: CH Robinson, Expeditors and Forward Air.
2 31 4
Net Capex (% of Total Revenue)
99.2%89.4%
59.6%
39.8%
87.4%
45.3%
85.1%
36.4%
Peer AveragePeer Average
Peer Average
8
Market Leadership in Key Transportation and
Logistics Segments: FCF Conversion
Package & Courier Less-Than-Truckload
Truckload Logistics & Last Mile
Note: TFI FCF Conversion (%) calculated as (Adjusted EBITDA – Net Capex ex-property) / Adjusted EBITDA. TFI data reflects TTM Q3-2019 while peer data is TTM Q2-2019. 1 Package & Courier: FedEx and UPS. 2 Less-Than-Truckload: ArcBest, Old Dominion Freight Line, Saia and YRC Worldwide. 3 Truckload: Covenant, Heartland, Knight-Swift, Marten, Werner, Schneider and U.S. Xpress. 4 Logistics & Last Mile: CH Robinson, Expeditors and Forward Air.
2
4
3
1Peer Average
9
Our Strategy of Growth Through Acquisitions
Proven track record of executing on M&A strategy across highly fragmented markets
– Completed 80 acquisitions since 2008
– Strong focus on integration, operations and realization of synergies
Our disciplined acquisition criteria:
– Immediately accretive to EPS and free cash flow
– Fit with one of our four segments (Package & Courier, LTL, TL, Logistics & Last Mile)
– High free cash flow generation
– U.S. or Canada footprint
– Strong management team
– Synergy and growth potential
10
Overview of the TFI International Platform
Over-the-road(13% of YTD
2019 Revenue)
Intermodal(6% of YTD
2019 Revenue)
Less-Than-Truckload(19% of YTD 2019
Revenue)
Conventional(26% of YTD
2019 Revenue)
Specialized(22% of YTD
2019 Revenue)
Truckload(48% of YTD 2019
Revenue)
Package & Courier(14% of YTD 2019
Revenue)
Logistics & Last Mile(19% of YTD 2019
Revenue)
Logistics(6% of YTD
2019 Revenue)
Last Mile(13% of YTD
2019 Revenue)
11
Services by Geography
TruckloadLogistics & Last Mile
Less-Than-Truckload
Package & Courier
✔ ✔ ✔ ✔
✔ ✔ ✔
✔ ✔ ✔
Canada
United States
Mexico1
TFI has built a robust and well-diversified revenue base
— No client accounts for > 5% of consolidated revenue
1 Truckload and LTL in Mexico provided by CFI Logistica.
By Geography (YTD Q3-2019)
By Top Customers' Industry(YTD Q2-2019)
26%
16%
11%9%
8%
6%
5%
4%
4%3%
2% 1%
5%
Retail Manufactured Goods
Food & Beverage Automotive
Building Materials Metals & Mining
Forest Products Energy
Chemicals & Explosives Services
Waste Management Maritime Containers
Others
54.8%
44.8%
0.4%
Canada
United States
Mexico
12
Truckload Segment
Dry van full truckload
Flatbed, tanks, dumps, oversized and other specialized services
Modern fleet
We own the majority of our assets and have long established partner carrier relationships
48% of YTD Revenue
Truckload Operating Companies
CONVENTIONAL (26% of Total Revs.) SPECIALIZED (22% of Total Revs.)A&M Intl.
Besner
CFI
Clarke Road Transport
Couture
Ganeca
Grégoire
Aulick Leasing
Bergeron
Brasseur
BTC East
Charbonneau
Contrans Flatbed Group
Contrans Tank Group
Contrans Vrac
Laidlaw Carriers Van
Papineau Intl.
TF Dedicated
Transport America
Transport J.C. Germain
Durocher Intl.
E.L. Farmer
GBT
GHL Transport
Golden Intl.
JAF
JAG
Kingsway Bulk
Laidlaw Carriers Bulk
McArthur Express
Mirabel Logistic
Nordique
P&W Intermodal
Piston Tank
Rebel Transport
SAF
TF Truckload & Logistics
Timeline Logisitc
Tri-Line Carriers
TST Expedited
TTL
Villeneuve Tank Lines
Westfreight Systems
Winalta
1 Truckload in Mexico provided by CFI Logistica.
Geographic Footprint1 Segment Overview
13
Logistics & Last Mile Segment
Full service logistics and transportation management
Last mile in the U.S. and Canada
Provides a complete one-stop experience for TFI customers, completing TFI’s portfolio of services
19% of YTD Revenue
Logistics & Last Mile Operating Companies
Cavalier Logistics
CFI Logistica
CFI Logistics
CK Logistics
Clarke North America
Cornerstone Logistics
Craler
E&L Logistics
Hyphen Transportation Management
Kobelt Transportation
Landry
Logikit
Patriot Freight Services
Quik X Logistics
St-Lambert
Stream Logistics
TForce Premier Distribution
Geographic Footprint Segment Overview
AC Final Mile
Guardian Medical Logistics
TForce Critical
TForce Final Mile Canada
TForce Final Mile U.S.
TForce Logistics
LOGISTICS (6% of Total Revs.) LAST MILE (13% of Total Revs.)
14
Less-Than-Truckload Segment
Over-the-road and intermodal LTL services
Solid track record for safety and on-time delivery
Focus on customer facing technology
Asset light intermodal
19% of YTD Revenue
Less-Than-Truckload Operating Companies
OVER-THE-ROAD (13% of Total Revs.) INTERMODAL (6% of Total Revs.)
Canadian Freightways
Cavalier
Concord
La Crete Transport
McMurray Serv-U Expediting
Clarke Transport
National Fast Freight
Quiktrax Intermodal
Vitran
Normandin
Quik X Transportation
Tripar Transportation
TST Overland Express
1 LTL in U.S. provided by partners and in Mexico provided by CFI Logistica.
Geographic Footprint1 Segment Overview
15
Package & Courier Segment
Package & Courier Operating Companies
Next-day in Canada and globally through partnership with DHL
Cutting edge technology
Specialized supply chain services
14% of YTD Revenue
Canpar Express
ICS Courier
Loomis Express
TForce Integrated Solutions
Geographic Footprint Segment Overview
Our Decentralized Structure: Uniquely Delivering
Value for Shareholders
16
…reaping the benefits of both economies of scale and specialization
…more efficiently allocating resources
Our four segments are constituted of wholly-owned subsidiaries operating under their own brands
Our differentiated approach to operating our businesses enables us to create shareholder value by…
…capitalizing on market opportunities and exploiting market dislocations in real time
Superior Track Record of Growth
17
Revenue Before Fuel Surcharge (C$ in millions)
1 These are non-IFRS measures. Please refer to the tables at the end of the presentation for a reconciliation of non-IFRS measures.2 Please refer to pages 32 and 33 for the most directly comparable measure determined under IFRS, being net income and diluted EPS.3 Tax adjusted for 2002-2008 when TFI was an income trust.
Adjusted EBITDA1,2 (C$ in millions)
Diluted Adjusted EPS1,2,3
$0
$1,000
$2,000
$3,000
$4,000
$5,000
1998 2018
$686
$0
$200
$400
$600
$800
1998 2018
$0
$1
$2
$3
$4
1998 2018
$4,508
$3.54
$0
$100
$200
$300
$400
$500
$600
1998 2018
Net Cash from Operating Activities (C$ in millions)
$544
18
Total Shareholder Return Over Various Periods
Peer Average
Package & Courier1
Less-Than-Truckload2 Truckload3
Logistics & Last Mile4
Tota
l Sh
are
ho
lde
r R
etu
rn
15-Year 1,321% 296% 113% 614% 189% 268%
10-Year 1,030% 234% 147% 464% 181% 143%
5-Year 145% 38% 18% 33% 38% 63%
1-Year 49% (11%) (16%) (19%) (4%) (6%)
1 Package & Courier: FedEx and UPS. 2 Less-Than-Truckload: ArcBest, Old Dominion Freight Line, Saia and YRC Worldwide. 3 Truckload: Covenant, Heartland, Knight-Swift, Marten, Werner, Schneider and U.S. Xpress. 4 Logistics & Last Mile: CH Robinson, Expeditors and Forward Air.Note: All periods above are through September 30, 2019. Peers included only in rows during which their stocks were public throughout the period. Total return performance includes dividends, assuming dividends reinvested.
706%
536%
70%
(11% )
19
Resilience Through the Cycle
1 Total Revenue and Adjusted EBITDA have not been restated to reflect discontinued operations, including the exit from oil rig moving operations in 2015 and the sale of the Waste Management segment in 2016.2 Adjusted EBITDA is a non-IFRS measure. Please refer to page 34 for the most directly comparable measure determined under IFRS, being net income.3 Adjusted EBITDA margin is a non-IFRS measure calculated as adjusted EBITDA as a percentage of total revenue.
TFI’s Adjusted EBITDA margin1, 3 held virtually flat through the Great Recession
(C$ in Millions) 2007 2008 2009 2010 2011 2012
Total Revenue1 1,940 2,262 1,847 2,002 2,691 3,140
Annual Growth 8% 17% -18% 8% 34% 17%
Adjusted EBITDA1, 2 243 280 227 263 312 386
Annual Growth 1% 15% -19% 16% 19% 24%
Adjusted EBITDA Margin1, 3 12.5% 12.4% 12.3% 13.1% 11.6% 12.3%
$ 165
$ 411
2012 TTM Q3-2019
E-Commerce Revenue(C$ in millions)
20
E-Commerce Provides Additional Growth
74% 69% 68% 66%59% 58% 59% 60%
26% 31% 32% 34%41% 42% 41% 40%
12 13 14 15 16 17 18 TTMQ3-2019
B2B B2C
Evolution of B2B/B2C Split
14.4% CAGR
E-Commerce is a powerful secular force, driving new shipping demands including greater emphasis on last-mile logistics
Same-Day Services
The evolution of E-Commerce fulfillment has created numerous opportunitiesfor TFI companies – both next-day (Canada) and same-day (Canada & U.S.)
Next-Day Services
21
Shipper - Warehouse
Evolution of E-Commerce Fulfillment
Shipper - Warehouse
Sorting Facility
Sorting Facility
Pickup
Delivery
DeliveryLinehaulRegion A
Region B
Business Customer CustomerBusiness
22
TFI International Serves a Vast E-Commerce Network
TFI services E-Commerce from nearly 80 North American cities
Further opportunities for the Logistics & Last Mile segment, both through acquisitions and organic growth
Increasing facility utilization with addition of same-day service
Total Canadian E-Commerce revenue: $140.3 million
Total U.S. E-Commerce revenue: $270.5 million
TTM E-Commerce Revenue by Segment(C$ in millions)
Note: TTM as of Q3 2019
$1.0
$169.4
$101.1
$44.8
$13.5
$81.0
Logistics & LastMile
TL P&C LTL
United States Canada
23
Robust Balance Sheet With Strategic Flexibility
Note: The table above 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 RequirementsAs at
September 30, 2019
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]
< 3.50 2.29
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 4.94
24
Track Record of M&A Execution and Integration
Number of Acquisitions per Year
Acquired 80 companies across our highly fragmented markets since 2008
14
5
3
6
4 4
6
4
10
7
9
8
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2019
Winalta
La Crete
TForce Integrated
Solutions
Lafleche
Total Transfer
Quik X
Transportation E.L. Farmer
Contrans
Clarke
Vitran
Transport
America
AC Final Mile
Cavalier
TForce Critical
TForce Premier
Distribution
GBT
Brasseur
Normandin
TForce Final Mile
Loomis Express
CFI
National Fast
FreightTTL
Schilli
BeavEx
25
Our Approach To Creating Shareholder Value
Our People
Market Leadership
Growth & ROIC
We continually solidify our position as a leader in the North American transportation and logistics industry
We deliver earnings growth and strong ROIC, both organically and through our proven acquisition strategy
We maintain a strong balance sheet andaccess to capital
We leverage our team of dedicated professionals to provide value-added services and solutions across each of our business segments
Prudent Balance Sheet
26
Appendix
27
Balance Sheet Details— As of September 30, 2019 —
Debt structure
— $1.2 billion unsecured revolving facility
– Matures in June 2023 and can be extended annually
– Provides favorable terms and conditions and capital management flexibility
— $575 million unsecured term loan
– Two tranches, $200 million maturing in June 2021 and $375 million maturing in June 2022
– Same covenants and conditions as the banking revolving facility
— $125 million unsecured debentures
– Interest rate between 3% and 3.45% and matures in December 2020
– Can be repaid, without penalty, after December 18, 2019
28
Additional Operating Data (Slide 1 of 3)
Operating Data – TL 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
U.S. based Conventional TL
Revenue before fuel surcharge (in thousands of U.S. dollars)
164,500 166,757 172,009 171,766 168,451 163,749 164,171 162,377
Adjusted operating ratio1 100.0% 98.3% 94.5% 92.4% 93.3% 92.4% 90.2% 90.9%
Total mileage (in thousands) 99,340 97,465 98,337 94,735 90,658 88,588 89,975 88,636
Tractor count, average 3,115 3,100 3,088 3,109 3,053 3,001 2,966 2,942
Trailer count, average 11,360 11,201 11,143 11,210 11,180 11,035 10,962 11,028
Tractor age 2.4 2.5 2.3 2.1 2.0 2.1 2.0 1.8
Trailer age 6.4 6.5 6.9 6.8 6.8 6.9 7.0 6.8
Number of owner operators, average 548 520 474 425 408 398 376 376
Canadian based Conventional TL
Revenue before fuel surcharge (in thousands of dollars)
74,398 73,603 82,531 78,154 79,017 77,882 76,949 71,299
Adjusted operating ratio1 92.0% 90.5% 86.6% 85.2% 85.9% 86.2% 87.1% 83.1%
Total mileage (in thousands) 27,427 26,142 27,867 26,139 26,019 25,536 26,151 23,019
Tractor count, average 731 703 719 700 708 720 718 657
Trailer count, average 3,072 3,021 3,086 3,182 3,043 2,932 2,953 2,824
Tractor age 2.9 3.1 2.8 2.8 2.7 2.5 2.7 2.6
Trailer age 5.2 5.4 5.2 5.6 5.5 5.6 5.6 5.5
Number of owner operators, average 370 344 380 371 363 353 348 348
1 This is a non-IFRS measure. Please refer to the reconciliation on pages 35, 36, 37 and 38.
29
Additional Operating Data (Slide 2 of 3)
Operating Data – TL 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Specialized TL
Revenue before fuel surcharge (in thousands of dollars)
198,098 207,258 222,434 220,333 227,438 235,964 275,963 273,029
Adjusted operating ratio1 91.5% 91.1% 86.0% 85.6% 89.2% 90.4% 87.0% 87.1%
Tractor count, average 1,346 1,365 1,407 1,439 1,546 1,771 2,116 2,194
Trailer count, average 4,663 4,625 4,525 4,541 4,693 5,519 6,095 6,341
Tractor age 3.5 3.5 3.3 3.6 3.5 3.7 4.6 4.1
Trailer age 10.7 10.6 9.5 10.2 9.7 10.0 11.1 11.4
Number of owner operators, average 1,242 1,108 1,075 1,054 1,102 1,192 1,157 1,225
1 This is a non-IFRS measure. Please refer to the reconciliation on pages 35, 36, 37 and 38.
30
Additional Operating Data (Slide 3 of 3)
Operating Data - LTL 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Revenue before fuel surcharge (in thousands of dollars)
204,136 203,567 239,245 227,514 231,994 207,986 219,075 205,434
Adjusted operating ratio1 92.9% 95.3% 89.8% 88.8% 90.0% 91.2% 86.2% 87.4%
Revenue per hundredweight (excluding fuel) $11.40 $12.13 $11.89 $13.18 $13.79 $12.82 $13.62 $13.51
Revenue per shipment (including fuel) $254.55 $278.72 $303.29 $316.68 $324.84 $319.92 $316.36 $320.28
Tonnage (in thousands of tons) 895 839 1,005 863 841 811 804 760
Shipments (in thousands) 922 846 927 847 838 753 806 742
Average weight per shipment (in lbs) 1,941 1,983 2,168 2,038 2,007 2,154 1,995 2,049
Average length of haul (in miles) 839 827 820 833 831 838 820 824
Vehicle count, average 838 766 1,080 1,081 1,020 1,031 1,019 1,031
1 This is a non-IFRS measure. Please refer to the reconciliation on page 39.
31
Reconciliations
32
Five-Year Reconciliation of Adjusted EBITDA1
(C$ in millions)(from Continuing Operations)
TTM Q3-2019
2018 2017 2016 2015
Net Income $324.6 $292.0 $158.0 $157.1 $145.7
Net Finance Costs $63.3 $48.3 $61.1 $54.9 $75.7
Income Tax Expense (Recovery) $102.7 $90.2 $(40.6) $46.3 $55.1
Depreciation of Property and Equipment $217.2 $198.5 $209.6 $139.4 $129.1
Depreciation of Right-of-Use Assets $76.8 – – – –
Amortization of Intangible Assets $64.6 $62.1 $61.2 $53.7 $47.1
Impairment of Intangible Assets $12.6 $12.6 $143.0 – –
Bargain Purchase Gain $(10.8) – – – –
Gain on Sale of Land and Buildings $(0.3) $(0.5) $(0.2) $(8.9) $(12.0)
Gain on Sale of Assets Held for Sale $(21.7) $(15.6) $(77.4) – $(3.9)
Gain on Sale of Intangible $(1.2) $(1.2) – – –
Adjusted EBITDA $827.7 $686.3 $514.5 $442.4 $436.8
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
33
Five-Year Reconciliation of Adjusted Net Income1
and Adjusted EPS – Diluted1
(C$ in millions, except per share data)TTM
Q3-20192018 2017 2016 2015
Net Income $312.2 $292.0 $158.0 $639.6 $163.4
Amortization of Intangible Assets Related to Business Acquisitions, Net of Tax $46.1 $44.0 $38.3 $32.7 $28.8
Net Change in Fair Value and Accretion Expense of Contingent Considerations, Net of Tax $(9.2) $(8.9) $(0.4) $0.1 –
Net Change in Fair Value of Derivatives, Net of Tax $(0.0) $(0.3) $(1.2) $3.5 $9.5
Net Foreign Exchange (Gain) Loss, Net of Tax $1.8 $0.5 $1.8 $1.6 $(1.0)
Impairment of Intangible Assets, Net of Tax $9.1 $9.1 $138.4 – –
Bargain Purchase Gain $(10.8) – – – –
Gain on Sale of Land and Buildings and Assets Held for Sale, Net of Tax $(17.3) $(13.9) $(66.7) $(7.5) $(13.5)
Gain on Sale of Intangible Assets, Net of Tax $(0.9) $(0.9) – – –
U.S. Tax Reform – – $(76.1) – –
Net (Income) Loss from Discontinued Operations 12.5 – – $(482.5) $(17.7)
Adjusted Net Income from Continuing Operations $343.5 $321.6 $192.2 $187.5 $169.5
Adjusted EPS from Continuing Operations – Basic $4.05 $3.66 $2.12 $2.00 $1.69
Adjusted EPS from Continuing Operations – Diluted $3.95 $3.54 $2.07 $1.96 $1.66
EPS from Continuing Operations – Diluted $3.73 $3.22 $1.70 $1.64 $1.43
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
34
2007-2012 Reconciliation of Adjusted EBITDA1
1 This is a non-IFRS measure.Note: Figures have not been restated to reflect discontinued operations, including the exit from oil rig moving operations in 2015 and the sale of the Waste Management segment in 2016.
(C$ in millions) 2012 2011 2010 2009 2008 2007
Net income $154.2 $102.2 $102.7 $10.9 $79.7 $44.8
Net Finance Costs $38.4 $50.3 $8.0 $29.5 $60.5 $36.2
Income Tax Expense $54.6 $33.9 $33.5 $21.4 $19.5 $3.6
Depreciation of Property and Equipment $103.4 $97.5 $98.8 $102.6 $106.3 $96.6
Amortization of Intangible Assets $44.2 $35.0 $27.6 $20.0 $16.7 $11.1
Gain on Sale of Property and Equipment $(8.8) $(6.5) $(7.9) $(2.9) $(2.7) $(5.3)
Impairment of Intangible Assets – – – $45.0 – $56.0
Adjusted EBITDA $386.0 $312.4 $262.7 $226.5 $280.0 $243.0
35
Adjusted Operating Ratio1 Reconciliation
(C$ in thousands) 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Truckload
Total revenue 546,251 564,133 609,812 604,759 610,161 600,535 655,548 633,547
Total operating expenses 523,438 527,871 554,291 541,101 557,879 549,791 588,307 557,785
Operating income 22,813 36,262 55,521 63,658 52,282 50,744 67,241 75,762
Operating expenses 523,438 527,871 554,291 541,101 557,879 549,791 588,307 557,785
Gain (loss) on sale of land and buildings and assets held for sale
(18) 7,253 1,167 3,208 1,560 696 76 9,020
Adjusted operating expenses 523,420 535,124 555,458 544,309 559,439 550,487 588,383 566,805
Fuel surcharge revenue (65,300) (73,466) (84,702) (84,112) (81,997) (73,388) (85,190) (76,342)
Adjusted operating expenses, net of fuel surcharge revenue
458,120 461,658 470,756 460,197 477,442 477,099 503,193 490,463
Revenue before fuel surcharge 480,951 490,667 525,110 520,647 528,164 527,147 570,358 557,205
Adjusted operating ratio 95.3% 94.1% 89.6% 88.4% 90.4% 90.5% 88.2% 88.0%
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
36
Adjusted Operating Ratio1 Reconciliation
(C$ in thousands) 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Truckload - Revenue before fuel surcharge
U.S. based Conventional TL 209,174 211,182 222,206 224,115 223,128 217,606 219,480 214,318
Canadian based Conventional TL 74,398 73,603 82,531 78,153 79,017 77,882 76,949 71,299
Specialized TL 198,098 207,258 222,434 220,333 227,438 235,964 275,963 273,029
Eliminations (719) (1,376) (2,061) (1,954) (1,419) (4,305) (2,034) (1,441)
480,951 490,667 525,110 520,647 528,164 527,147 570,358 557,205
Truckload - Fuel surcharge revenue
U.S. based Conventional TL 36,674 39,715 43,944 43,980 43,034 37,318 39,867 36,404
Canadian based Conventional TL 10,098 11,411 13,269 12,756 12,257 10,567 11,478 9,795
Specialized TL 18,728 22,494 27,659 27,496 26,815 26,224 33,923 30,195
Eliminations (200) (154) (170) (120) (109) (721) (78) (52)
65,300 73,466 84,702 84,112 81,997 73,388 85,190 76,342
Truckload - Operating income (loss)
U.S. based Conventional TL (15) 3,536 12,181 17,091 15,012 16,507 21,435 19,429
Canadian based Conventional TL 6,049 13,979 11,088 11,553 11,172 10,777 9,901 12,024
Specialized TL 16,779 18,747 32,252 35,013 26,098 23,460 35,905 44,308
22,813 36,262 55,521 63,657 52,282 50,744 67,241 75,7611 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
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Adjusted Operating Ratio1 Reconciliation
(C$ in thousands) 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
U.S. based Conventional TL
Operating expenses** 245,863 247,361 253,969 251,004 251,150 238,417 237,912 231,294
Loss on sale of land and buildings and assets held for sale
(119) - - - - - - -
Adjusted operating expenses 245,744 247,361 253,969 251,004 251,150 238,417 237,912 231,294
Fuel surcharge revenue (36,674) (39,715) (43,944) (43,980) (43,034) (37,318) (39,867) (36,404)
Adjusted operating expenses, net of fuel surcharge
209,070 207,646 210,025 207,024 208,116 201,099 198,045 194,890
Revenue before fuel surcharge 209,174 211,182 222,206 224,115 223,128 217,606 219,480 214,318
Adjusted operating ratio 100.0% 98.3% 94.5% 92.4% 93.3% 92.4% 90.2% 90.9%
Canadian based Conventional TL
Operating expenses** 78,447 71,035 84,712 79,357 80,102 77,672 78,526 69,070
Gain on sale of land and buildings and assets held for sale
101 7,023 - - - - - -
Adjusted operating expenses 78,548 78,058 84,712 79,357 80,102 77,672 78,526 69,070
Fuel surcharge revenue (10,098) (11,411) (13,269) (12,756) (12,257) (10,567) (11,478) (9,795)
Adjusted operating expenses, net of fuel surcharge revenue
68,450 66,647 71,443 66,601 67,845 67,105 67,048 59,275
Revenue before fuel surcharge 74,398 73,603 82,531 78,153 79,017 77,882 76,949 71,299
Adjusted operating ratio 92.0% 90.5% 86.6% 85.2% 85.9% 86.2% 87.1% 83.1%
** Operating expenses excluding intra TL eliminations
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
38
Adjusted Operating Ratio1 Reconciliation
(C$ in thousands) 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Specialized TL
Operating expenses** 200,047 211,005 217,841 212,817 228,155 238,728 273,981 258,916
Gain on sale of land and buildings and assets held for sale
- 230 1,167 3,208 1,560 696 76 9,020
Adjusted operating expenses 200,047 211,235 219,008 216,025 229,715 239,424 274,057 267,936
Fuel surcharge revenue (18,728) (22,494) (27,659) (27,496) (26,815) (26,224) (33,923) (30,195)
Adjusted operating expenses, net of fuel surcharge revenue
181,319 188,741 191,349 188,529 202,900 213,200 240,134 237,741
Revenue before fuel surcharge 198,098 207,258 222,434 220,333 227,438 235,964 275,963 273,029
Adjusted operating ratio 91.5% 91.1% 86.0% 85.6% 89.2% 90.4% 87.0% 87.1%
** Operating expenses excluding intra TL eliminations
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.
39
Adjusted Operating Ratio1 Reconciliation
(C$ in thousands) 2017-Q4 2018-Q1 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3
Less-Than-Truckload
Total revenue 234,696 235,801 281,152 268,231 272,212 240,897 254,989 237,644
Total operating expenses 221,475 224,433 256,258 242,822 248,751 213,255 224,721 211,853
Operating income 13,221 11,368 24,894 25,409 23,461 27,642 30,268 25,791
Operating expenses 221,475 224,433 256,258 242,822 248,751 213,255 224,721 211,853
Gain (loss) on sale of land and buildings and assets held for sale
(1,355) 1,872 509 (61) 254 9,401 (2) (0)
Adjusted operating expenses 220,120 226,305 256,767 242,761 249,005 222,656 224,719 211,853
Fuel surcharge revenue (30,560) (32,234) (41,907) (40,717) (40,218) (32,911) (35,914) (32,210)
Adjusted operating expenses, net of fuel surcharge revenue
189,560 194,071 214,860 202,044 208,787 189,745 188,805 179,643
Revenue before fuel surcharge 204,136 203,567 239,245 227,514 231,994 207,986 219,075 205,434
Adjusted operating ratio 92.9% 95.3% 89.8% 88.8% 90.0% 91.2% 86.2% 87.4%
1 This is a non-IFRS measure.Note: The current period results include the impacts from the adoption of the new IFRS 16 Leases as discussed in note 3 of the unaudited condensed consolidated interim financial statements. As is permitted with this new standard, comparative information has not been restated and, therefore, may not be comparable.