TFI International (TFII) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 29, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Speakers, you are now in the main room and you can proceed with your conference.

Alain Bedard

Thank you, operator. And I would like to welcome everyone to today's call that's been delayed for about 15 minutes. I'm really sorry about that. But yesterday, after the market closed, we released our first quarter results, we entered 2022 in the strongest position in our company's history, and the year is off to a very strong start. The results we are now reporting reflects the broad diversification of our business, the ongoing successful integration of TForce Freight and strong execution across our entire company. In fact, all of our 4 business segments grew operating income again this quarter. This led to a strong overall performance, including first quarter adjusted diluted earnings per share of $1.68 and which is more than double compared to a year earlier. And today, we're raising our outlook for the full year.

First of all, we have multiple internal opportunities ahead to further enhance results. These ongoing opportunities help explain our current strong performance despite macro-related headwinds that I'm sure you have heard, included higher inflation, elevated energy prices, rising interest rates, labor shortage and a global supply chain challenges.

While we continue to drive both revenue and cost synergies following last year's major acquisition, we're also maintaining a relentless focus on what we at TFI International have always done best. As you've heard me say many times, we get the fundamentals of the business right by focusing on the details and always looking to maximize efficiencies. We run our business to produce free cash flow, generate strong returns on invested capital and grow our earnings per share. This helps us achieve our ultimate goal which is to create long-term shareholder value, including through the identification of strategic acquisition opportunities while returning excess capital to shareholders whenever possible. It is this consistent operating philosophy that we are there to along before the pandemic that provides us with confidence that we can continue to successfully navigate the constantly changing macro landscape.

Let's now review our strong first quarter results, which serves as a testament to our guiding principle and our many ongoing internal opportunities to unlock value.

Our total quarterly revenue climbed by more than 90% year-over-year to $2.2 billion. Freight volumes were generally solid across B2B, and we capitalized with appropriated pricing. More important to us given our focus on profitability, our operating income reached $220 million during the quarter, that's an increase of 116% over the prior year. And as I mentioned, our adjusted fully diluted EPS of $1.60 was well above the prior year's $0.77 and that's up 118%.