Borderlands: CanadaNewsTrucking

Maple Leaf Motoring: TFI earnings to spotlight truckload efficiencies, BeavEx revenue

Maple Leaf Motoring is a weekly rundown of developments in the world of Canadian transportation. This week: Previewing TFI’s earnings, GFL files for IPO and Canadian Trucking Alliance releases infrastructure priorities.

When Canada’s largest transportation and logistics company, TFI International (TSX:TFI), reports second-quarter earnings on July 25, analysts will likely focus on the performance of its core truckload business and signs that a U.S. courier acquisition is boosting revenues. 

Analysts estimate that TFI will earn C$1.05 per share on C$1.36 billion of revenue (the Canadian dollar equals US$0.76), according to Yahoo Finance. While those figures suggest a 3 percent increase in revenue and a 6 percent increase in profits, TFI beat earnings estimates in the last four quarters.

TFI reported a 33 percent increase in profits during the first quarter of 2019, even as revenue increased by just 3 percent compared to the first quarter of 2018. In part, the strong performance on the bottom line in weaker market conditions reflected improved operating ratios.

CEO Alain Bedard told analysts in April that the company was focusing on improving operating ratios of its U.S. truckload units, including CFI and Transport America, to push them below 90 percent, in line with their Canadian counterparts. 

Continued improvement in operating ratios combined with increases of TFI’s truckload rates in the U.S. by 3 to 6 percent could yield good results from its U.S. truckload business. 

Second-quarter results will offer some insight into how TFI is handing the acquisition of assets of bankrupt courier BeavEx. Bedard told analysts that the deal would give TFI a “shot in the arm” to the tune of US$100 million in revenue per year, but it’s unclear how quickly that will happen.

Revenue from TFI’s logistics and final-mile units dropped by 5 percent in the first quarter of 2019, to C$224 million. These businesses account for about 20 percent of the company’s revenue. Weakness came largely from those U.S. units, dominated by TFI’s TForce businesses.

TFI’s TForce units are absorbing BeavEx business. On July 15, TFI announced that the head of its Canadian TForce final-mile operation, Kal Atwal, would also oversee the U.S. counterparts. 

GFL Environmental files for IPO

Photo: GFL Environmental

Canadian waste hauler GFl Environmental filed for an initial public offering, reportedly seeking to raise US$1.5 billion

The company plans to list on the Toronto Stock Exchange and a yet-to-be-named U.S. exchange, according to documents filed with the U.S. Securities and Exchange Commission on July 19.

Based in Toronto, GFl operates in Canada and 20 U.S. states. It offers comprehensive solid- and liquid-waste services. 

The company has Canada’s 14th largest for-hire trucking fleet, with 2,355 trucks and 170 tractors, according to Today’s Trucking

Canadian Trucking Alliance releases infrastructure priorities list

The Canadian Trucking Alliance (CTA), along with its provincial partners, released its annual list of road infrastructure priorities

The CTA identified projects across Canada that would impact the trucking industry. 

“The CTA and our provincial trucking association partners are hopeful that the new 2019-2020 list will once again have a strong impact on government infrastructure funding priorities,” said CTA director for policy affairs Jonathan Blackham in a statement. 

The projects include expanding Highway 401 in the Greater Toronto Area and Route 185, linking New Brunswick and Quebec. The CTA estimates that twinning highway 185 could add C$1 billion to C$1.78 billion to Canada’s GDP. 

One Comment

  1. First .

    Bedard appears to say many things . One example would be back on February 28 2019 :

    “While the company is always on the lookout for good acquisitions, Bedard said buying back TFII stock is an attractive alternative.
    “This is the best thing we can do is buying our own, because we know 100% what TFI is all about. I know the company inside out,” Bedard said.”

    Now while he was advocating buying more TFII stock due to knowing 100% what TFII is all about , what he didn’t mention was that he was going to DISPOSE OF QUITE A BIT OF TFII SHARES IN THE PUBLIC MARKET ! How ? By granting himself options at a very low price and exercising them to sell shares quickly at a higher price in the market . He did that for quite some time and he pocketed MILLIONS while advocating that buying back TFII stock is an attractive alternative based on the fact that he knows TFII inside and out .

    Second :
    Concerning the CTA and its provincial partners which are associations(Public Relations Groups) that are controlled by major carriers ,when they say : Quote: “Trucking Moves The Canadian Economy ” they omitted to include the most vital part in what really moves the Canadian economy . LABOURERS & CONSUMERS ! Whether they be in Finance , Politics, Transportation , Agriculture, Mining, Education , or in the Manufacturing industry etc . It’s the “people” collaborating together which moves an economy , not one sector and industry .

    And the real backbone in the trucking industry is the DRIVERS ! Without them you’re moving a heck of a lot less GOODS ! In fact , without those truck drivers we wouldn’t even be able to survive in this day and age . We are extremely dependant upon them for the quality of life that we enjoy every day .

    And while the CTA is tooting their horn about the trucking industry being responsible for creating 300,000 truck driving jobs in Canada , the major carriers are trying to replace the drivers by slowly integrating autonomous trucks into the industry ! That’s their agenda !

    So does it make sense for Tax Payers to fund more parking for truck drivers which carriers intend on replacing with autonomous trucks ?

    Truck drivers are a decreasing breed due to the undignified treatment they have endured and still endure to this very day . The majority of the carriers have destroyed what was once considered to be a great middle class trade in Canada . The industry is poorly structured and exploits the hands that feeds it . Carriers are in the trucking business for one reason . PROFIT ! And they couldn’t careless about who’s pocket they pick in their attempt to increase their profits while attempting to decrease their costs . Their primitive behavior has lead us to the problems we face today .

    They could have literally and collectively transformed the world to be a better place due to the power the transportation sector contains . They could have created a tremendous positive impact on their bottom lines by simply doing a few things differently . I guess it wasn’t their destiny . That sort of power cannot be kept within the hands of primitive minds . No wonder they are destroying themselves .

    The primitive design of those commercial vehicles are a safety hazard for drivers and the public . But who gets the blame ? The truck driver . Who pushes truck drivers to extremes ? And then who blames them when they try to conform to unrealistic demands ? And then who cuts their throat for the supposed sake of “safety” ? Who didn’t train drivers properly and then gave them licenses to drive ? Notice I said “drivers”, not “truck drivers” .

    Open your eyes . Those trucking associations(carriers) are working hand in hand with government . They both failed the people . But they blame the people ! The people are over taxed beyond reason and are continuously deceived by those two groups . And those two groups want more money from the people ? Here is a suggestion . Why don’t we make a real sustainable change and just replace these two groups with innovative ethical people who will really cater to the people’s best interest .

    The whole industry needs to be restructured . Aren’t we fed up with the gong show already ?

    They should have thought about the lack of parking spots before lobbying to enforce ELD’s and speed limiters . That just confirms how primitive their thinking is . THEY cause the problems in the trucking industry due to their lack of savoir fair !

    In my humble opinion ……………..

Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at