XPO Logistics Third Quarter 2017 Results Up

XPO Logistics, Inc. has announced financial results for the third quarter 2017. Revenue was $3.89 billion for the quarter, compared with $3.71 billion for the same period in 2016.

Revenue increased year-over-year by $305.1 million, excluding third quarter 2016 revenue of $131.8 million from the North American truckload unit divested in October 2016.

Net income attributable to common shareholders was $57.5 million for the quarter, or earnings of $0.44 per diluted share, compared with net income attributable to common shareholders of $13.8 million, or earnings of $0.11 per diluted share, for the same period in 2016.

Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $76.7 million for the quarter, compared with $49.8 million for the same period in 2016. Adjusted earnings per diluted share, a non-GAAP financial measure, was $0.59 for the quarter, compared with $0.41 for the same period in 2016.

Adjusted net income attributable to common shareholders and adjusted earnings per diluted share for the third quarter 2017 exclude: $14.2 million, or $10.6 million after-tax, of integration and rebranding costs; $9.6 million, or $7.4 million after-tax, of non-cash unrealized losses on foreign currency contracts; and a loss of $4.7 million, or $3.4 million net of tax, on debt extinguishment and conversions of convertible senior notes.

Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, improved to $369.6 million for the quarter, excluding $14.2 million of integration and rebranding costs. This compares with $352.7 million of adjusted EBITDA for the same period in 2016, which included the divested North American truckload unit.

For the third quarter 2017, XPO Logistics generated $293.7 million of cash flow from operations and $183.2 million of free cash flow.

Reaffirms Financial Guidance

XPO Logistics reaffirmed its full year targets for adjusted EBITDA of at least $1.365 billion in 2017 and at least $1.6 billion in 2018. The company also reaffirmed its 2017–2018 cumulative free cash flow target of approximately $900 million, including at least $350 million of free cash flow generated in 2017.

CEO Comments  

Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “In the third quarter, we generated the highest revenue, net income and cash flow of any quarter in our history, and our $370 million of adjusted EBITDA beat expectations. We benefited from positive market dynamics, including e-commerce demand for contract logistics and last mile, growth in intermodal, and a brokerage market that is trending in our favor. Our diversification is yielding results.”

Jacobs continued, “We’re executing major initiatives around pricing, utilization and sales productivity to capitalize on the large opportunities at hand. Our sales force has closed $2.1 billion of new business through September, up 49%, and our pipeline continues to exceed $3 billion globally. These levers, combined with our leading positions in key sectors, are fueling organic growth that continues to outpace the industry. We’re exploring acquisition opportunities that will augment this momentum.”

Tags: Logistic, XPO, XPO Logistic

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