Although several year-on-year operating comparisons for TFI International (NYSE: TFII) were negative compared to the first quarter a year ago, the company in its prepared statement released in conjunction with the earnings was upbeat.<\/p>\n
The bottom line numbers were positive for TFI in one sense. According to SeekingAlpha, the company\u2019s non-GAAP earnings per share of 69 cents per share beat consensus forecasts by 8 cts. Revenue of $1.95 billion was better than consensus by $50 million.<\/p>\n
\u201c\u201cWe easily exceeded our first quarter earnings outlook on stronger revenue and higher profitability for both Truckload and Logistics despite adverse weather early in the quarter, thanks to the hard work of our talented team and benefitting from our strategic investments in recent years,\u201d Alain B\u00e9dard, chairman, president and CEO said in the statement.<\/p>\n
The first quarter was the introduction of a revised system for reporting LTL earnings at TFI. Previously, the company broke out separate performance figures for its U.S. and Canadian LTL operations. But that has ended, so all LTL figures are for the company as a whole.<\/p>\n
LTL continued to struggle by some measurements. The combined operating ratio (OR) rose 220 basis points to 95.3%. Operating income declined 35.12% and its revenue per shipments excluding fuel, which is known as yield in the LTL sector, dropped 2.16% to $303.36. Adjusted EBITDA was down 14.4% to $79.2 million.<\/p>\n
The Truckload sector fared better. Total revenue inched up 0.83%, adjusted EBITDA was up just over 4%, and operating income rose 14.32%.<\/p>\n
TFI\u2019s revenue split between LTL and Truckload was 51% for LTL and 49% for Truckload.<\/p>\n
Adjusted EBITDA in TFI\u2019s Logistics segment rose 16.44%.<\/p>\n \u201cCombined with our team\u2019s sharp focus on efficiencies and bottom-line profitability, TFI is well positioned as freight dynamics build on the improvement in March,\u201d Bedard said in the statement. \u201cAll the while, we continue to fortify our balance sheet with ample free cash flow that facilitates our timely and strategic allocation of capital as well as our attractive dividend, with the return of excess capital a cornerstone of our mission to produce long-term shareholder value.\u201d<\/p>\n Even in its toughest quarters, TFI management has always touted the company\u2019s cash flow. But net cash flow in the quarter from operating activities dropped to $121.5 million from $193.6 million. That was also a big drop from the fourth quarter, when TFI reported net cash flow from operating activities of $282.2 million.<\/p>\n TFI\u2019s presentation blamed the decline in that figure on an increase in accounts receivable relative to accounts payable, which have different payment periods for fuel and payroll.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n