TFI International (TFII) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 28, 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 TFI International’s Third 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, October 28, 2022.

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

Alain Bedard

Well, thank you so much, operator, and welcome everyone to this morning's call. We released our third quarter results yesterday after the market close and we're pleased to again be reporting a strong quarter with relative stability right through September for most of our segment, despite ongoing macro volatility.

In two weeks, we'll host our first ever Investor Day at the New York Stock Exchange on November 10. During that event, we'll expand on the operating principle’s that drives TFI International and our plan to create additional shareholder value. Instructions on how to RSVP are in yesterday's press release.

As a result, I'll keep today's remarks more brief than usual, but suffice it to say, our continued strong growth and profitability is a direct result of our principal operating philosophies that we stick to regardless of the economic cycles such as quickly adjusting capacity to our variable cost to match changing demand. In addition, our performance reflect the ongoing self help opportunities we are delivering on that are entirely within our control. Most importantly, our performance reflects the skill and tireless dedication of everyone at TFI International. And at our coming Investor Day, you'll have the chance to hear from many of our talented leaders.

For the third quarter of 2022, we reported a 30% increase in adjusted net income over the prior year, despite a non-recurring charge and we've produced a 38% increase in adjusted diluted EPS. We also generated $292 million in quarterly free cash flow that was up 73% and giving the emphasis we place on intelligent capital allocation, we view our robust free cash flow as a strategically important, yes.