The following is a summary of the TFI International Inc. (TFII) Q1 2024 Earnings Call Transcript:
Financial Performance:
TFI reported a Q1 operating income of $152m, a decline from $166m a year earlier.
Adjusted net income was down to $106m from $116m in the first quarter of 2023.
Free cash flow reduced to $137m compared to $196m in the previous year.
LTL operating income grew up by 15% to $67m.
Logistics revenue rose by 24% with operating income increasing by 27% to $40m.
P&C operating income decreased from 24% to 18%.
Business Progress:
TFI is focusing on cost reduction and service improvements for growth despite the unfavorable freight market.
They are transitioning from lighter to heavier freight, underpinned by increased pick-ups from customers and a more strategic approach towards service areas.
TFI closed the acquisition of Daseke to improve service offerings and plans to reduce its leverage ratio through a reduction of debt.
They are planning a reinvestment in their truckload segment, possibly through small M&As, to target niche markets.
TFI projects improved efficiency from potential consolidation of terminals.
Their goal is to implement service improvements to achieve 24,000 shipments by the end of the year.
More details: TFI International IR
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