TFI’s truckload business shines in record quarter, year

TFI International (TSX:TFII) reported record fourth quarter and full-year financial results driven by strong growth in the Canadian transportation and logistics company’s truckload business.

TFI’s adjusted net income for the fourth quarter reached C$86.3 million, a 60 percent increase from 2017, on C$1.32 billion in revenue, an 11 percent increase. (A Canadian dollar currently is valued at $0.76 U.S. dollars.) The quarter capped a strong year for TFI, which saw its adjusted net income grow 67 percent to C$292 million on C$5.12 billion of revenue, up from C$C4.84 billion.

“These strong results reflect not only our unique and favorable positioning but our execution of the fundamentals, cycle in and cycle out,” CEO Alain Bédard said in a written statement accompanying the results, released today (February 27).

TFI’s Truckload segment, its largest, saw its operating income more than double quarter over quarter to C$52.3 million from C$22.8 million. Income from its Less-Than-Truckload segment also increased to C$23.5 million from C$13.2 million.

The Package and Courier segment showed a smaller increase, with TFI reporting C$34.4 in income in the fourth quarter of 2018 compared to C$28.1 a year earlier. The Logistics and Last-Mile segment’s income declined significantly from C$14.1 million to C$2.9 million.

The company also reported that its operating margin had reached 8.9 percent, an increase of 270 basis points.

TFI’s adjusted earnings per share were C$0.85 for the quarter and C$3.22 for the year.

Montreal-based TFI has 26,487 trailers and 7,465 power units, and operates throughout the Canada, the United States and Mexico.

The company will host a conference call with analysts on February 28.