TFI International (TFII) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

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

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the TFI International Second Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Callers will be limited to one question and a follow-up. Again, that's one question and a follow-up, so that we can get to as many callers as possible. For the instruction for entering the queue will be provided at that time. Please be advised that this conference call will contain statements that are forward-looking in nature and subject to a number of risks and uncertainties that could cause actual results to differ materially. Also, I would like to remind everyone that this conference call is being recorded on Friday, July 29, 2022.

I will now turn the call over to Mr. Alain Bedard, Chairman and President and Chief Executive Officer of TFI International. Please go ahead, sir.

Alain Bedard

[Technical Difficulty] our remarkable performance so far this year reflects our long-standing adherence to our principal operating philosophies, as well as the many internal or self-help opportunities that we see regardless of economic condition, not the least of which is the continuing successful integration of TForce Freight acquired just a year ago.

In addition, our favorable quarterly results reflect strong execution across our diversified business, driven by the many dedicated individuals at TFI International. We look forward to having you met some of our many talented leaders at our upcoming Investor Day on November 10 with more details to follow.

For the second quarter of 2022, we reported 76% increase in our adjusted net income over the prior year and an 81% increase in our adjusted diluted EPS, along with more than $300 million in quarterly free cash flow for the first time in our company's history.

All four of our business segments contributed to this strong outcome by producing very strong returns on invested capital. And today, we are again raising our outlook the full year.

The economic headwinds, as I'm sure you're all aware include the rising interest rates, along with inflationary pressure at multi-digit, continued elevated energy prices, unprecedented labor shortage, resurfacing regional pandemic outbreaks. And of course, the ongoing global supply chain challenges.

Especially during uncertain time, this is when we re-sharpen our focus our long-held operating principle, which bear repeating as they are so instrumental to our strong performance. We have a relentless detailed focus on getting the fundamentals of our business right in our quest to maximize efficiencies, everything is with an eye towards optimizing our free cash flow, generating strong returns on invested capital and growing our earnings per share.