- TFI International (TSX:TFII) has reported consistent results for the first quarter of 2020, despite significant economic challenges
- Revenue was up one per cent to C$1.24 billion, while operating income was up 13 per cent to $118.5 million
- As a result of the COVID-19 outbreak, the company has implemented a range of cost-cutting measures
- TFI International (TFII) is currently up 9.38 per cent to $35.45 per share, with a market cap of $3.12 billion
TFI International (TSX:TFII) has reported consistent results for the first quarter of 2020, despite significant economic challenges.
The Montreal-based transport and logistics company attributed the strong financial performance to its “relentless focus on fundamentals” and a solid operational foundation.
Revenue for the quarter was up one per cent to C$1.24 billion, compared to $1.23 billion in the first quarter of 2019.
Most notably, however, operating income was up 13 per cent, from $104.9 million to $118.5 million. TFI said this was primarily driven by strategic acquisitions, an asset-light approach, increased cost efficiencies and strong execution across the whole organisation.
In addition, net cash from operating activities was up 19 per cent to $191.7 million, compared to $160.7 million in 2019. This reportedly came from stronger operating performance, as well as the deferral of certain tax payments due to the economic stimulus measures brought on by COVID-19.
On February 13, TFI also raised $288.5 million through the issuance of shares in the US and Canada as part of its IPO on the NYSE.
Alain Bédard, Chairman, President and CEO of TFI International, noted that despite the company’s solid performance in the face of a challenging economic environment, the overriding priority remains with the health and wellbeing of TFI’s employees and customers.
“In early March as the pandemic began to spread, we quickly implemented cost-saving measures with an eye toward helping TFI emerge even stronger when conditions normalize,” he said.
These measures included a salary reduction of 5 to 15 per cent for all executive personnel, as well as a 15 per cent reduction in director’s fees. More than 1,000 employees were subject to a reduced work week, and all capital expenditures were suspended.
“Looking ahead, as our highly engaged workforce continues to serve our customers and as we execute on our strategies to create long-term shareholder value, our thoughts remain with the many families impacted by today’s economic disruption,” Alain concluded.
TFI International (TFII) is currently up 9.38 per cent to $35.45 per share at 12:55pm EST.