MONTREAL, QC – TFI International believes recent improvements in the U.S. truckload market will allow it to increase contract renewal rates through 2018.
The observation was made by chairman, president and Chief Executive Officer Alain Bedard this week along with the fleet’s third-quarter results.
Quarterly revenue before fuel surcharges was $1.05 billion — up 17% over the same quarter last year — with the adjusted EBITDA from continuing operations up 13% to $128.2 million. Another $70.1 million was realized by selling property.
For the first nine months of this year, total revenue from continuing operations reached $3.6 billion, compared to $2.9 billion in the first nine months of 2016. Net of fuel surcharges, revenue from continuing operations reached $3.2 billion, up from $2.7 billion last year.
Business activities through the quarter included a focus on operational efficiencies, executing the sale and leaseback of select real estate assets, and producing strong cash flows, Bedard said.
“In the Package and Courier segment, our focus on business mix and cost reduction yielded a slightly higher margin despite a volume decline. Our logistics activities generated positive revenue growth and stable margins. And while Less-Than-Truckload activities in Eastern Canada saw lower volumes from the U.S., we are proactively adapting supply to demand,” he added.
Rebranding and renewal programs linked to the integration of CFI also cost $3.2 million.