TFI International Announces 2018 Second Quarter Results

• Diluted earnings per share of $0.89, up from a loss of $0.82 in the prior year period
• Adjusted diluted earnings per share¹ up 65% over the prior year period to $0.99
• Operating income up 64% over the prior year period to $122.0 million
• Operating margin up 400 basis points over the prior year period to 10.5%
• Operating margin expansion in all four segments, with Truckload more than doubling
• Net cash from operating activities from continuing operations up 88% to $145.3 million

MONTREAL, July 26, 2018 (GLOBE NEWSWIRE) -- TFI International Inc. (TSX:TFII) (OTCQX:TFIFF), a North American leader in the transportation and logistics industry, today announced its results for the second quarter ended June 30, 2018.

“Our consistent focus on profitable growth and operating efficiencies drove strong results across our entire business this quarter,” said Alain Bédard, Chairman, President and Chief Executive Officer. “We generated an operating margin of 10.5% compared to 6.5% a year earlier, with margin expansion at all four segments.  In addition, we nearly doubled our net cash from operating activities. Looking ahead, TFI is uniquely positioned to capitalize on the evolving transportation dynamics across North America.”

SECOND QUARTER RESULTS
Total revenue of $1.32 billion was up 4% compared to the prior year period. Net of fuel surcharge, revenue of $1.16 billion compares to $1.15 billion in the prior year period.

Operating income grew 64% to $122.0 million from $74.3 million the prior year period, driven by strong execution across the organization, increased quality of revenue, and cost efficiencies.

Net income was $80.4 million, or $0.89 per diluted share, representing an increase from the net loss of $75.0 million, or negative $0.82 per diluted share, the prior year period. Adjusted net income, which excludes amortization of intangible assets related to business acquisitions, net change in the fair value of derivatives, net foreign exchange gain or loss, gain or loss on sale of property and impairment of intangible assets, net of tax, was $89.7 million, up from $56.2 million the prior year period.

SIX-MONTH RESULTS
For the first six months of 2018, total revenue reached $2.51 billion, versus $2.47 billion in the first six months of 2017. Net of fuel surcharge, revenue reached $2.22 billion, as compared to $2.24 billion last year. Operating income totalled $187.8 million, or 8.5% of revenue before fuel surcharge, an increase compared to $116.4 million and 5.2% last year.

Net income was $128.6 million, or $1.42 per diluted share, versus a net loss of $61.0 million, or negative $0.67 per diluted share, a year ago. Adjusted net income was $140.5 million compared to $89.1 million the prior year period.

CASH FLOW AND FINANCIAL POSITION
Net cash from operating activities from continuing operations was $145.3 million, up 88% from $77.3 million the prior year quarter. The company returned $55.1 million to shareholders, of which $18.5 million was through dividends and $36.5 million was through share repurchases. TFI International’s long-term-debt-to-equity ratio stood at 1.04 as of June 30, 2018, down slightly from 1.06 as of December 31, 2017.

In the first six months of 2018, the net cash from operating activities from continuing operations amounted to $203.1 million, versus $127.5 million last year.

CONFERENCE CALL
TFI International will host a conference call on Thursday, July 26, 2018 at 5:00 p.m. Eastern Time to discuss these results. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, August 9, 2018, by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 8474425.

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 and Last Mile.

TFI International Inc. is publicly traded on the Toronto Stock Exchange (TSX:TFII) and the OTCQX marketplace in the U.S. (OTCQX:TFIFF). For more information, visit http://www.tfiintl.com.

FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of TFI International. These statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for TFI International's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

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 (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 below.

Adjusted EBITDA
Adjusted EBITDA is calculated as net income or loss before finance income and costs, income tax expense, depreciation, amortization, gain or loss on sale of land and buildings and assets held for sale and impairment 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 generate cash from its operations.

Adjusted net income and adjusted earnings per share, basic or diluted
Adjusted net income is calculated as net income or loss excluding amortization of intangible assets related to business acquisitions, net change in the fair value of derivatives, net foreign exchange gain or loss, gain or loss on sale of land and buildings and assets held for sale and impairment of intangible assets, net of tax. Adjusted earnings per share, basic or diluted, is calculated as adjusted net income divided by the weighted average number of common shares, basic or diluted. The Company uses adjusted net income and adjusted earnings per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. 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.

Note to readers:  Unaudited condensed consolidated interim financial statements and Management’s Discussion & Analysis are available on TFI International’s website at http://www.tfiintl.com.

For further information:
Alain Bédard
Chairman, President and CEO
TFI International Inc.
(647) 729-4079
abedard@tfiintl.com