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XPO 8-K Report, Financial Results (Feb 7, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 7, 2024
Period End
February 7, 2024
Security
XPO
In the record · 2016–202610-K1110-Q338-K243

XPO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 243 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’18Feb ’18
  2. Leadership change8-K · May ’20May ’20
  3. Deal closed8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 7, 2024. Cited figures are marked; the original filing is the authoritative source.

XPO, Inc. reported fourth-quarter 2023 revenue of $1.94 billiona, up 6.0% from $1.83 billion a year earlier, and diluted earnings from continuing operations of $0.49 per share, compared with a loss of $0.31 per share in the fourth quarter of 2022.

Operating income was $119 millionb, versus $4 million, and net income from continuing operations was $58 million, versus a net loss of $36 million. Adjusted diluted EPS from continuing operations was $0.77, down 21.4% from $0.98, and adjusted EBITDA was $264 million, up 0.8% from $262 million. The 2022 period included $55 million of real estate gains.

Management attributed the results to strength in North American LTL, where revenue rose 8.6% to $1.19 billionc, yield excluding fuel increased 10.3%, and the adjusted operating ratio was 86.5%, an improvement of 380 basis points. The European Transportation segment's revenue rose 2.0% to $753 million, and its operating loss narrowed to $2 million from $60 million. Corporate operating loss declined to $28 million from $88 million, reflecting lower transaction, integration and restructuring costs, partly offset by an $8 million non-cash accrual related to an environmental matter.

For the full year 2023, revenue was $7.74 billiond, up 0.3%, diluted EPS from continuing operations was $1.62, and adjusted diluted EPS was $2.92, compared with $3.53 in 2022. Full-year net income was $189 million, compared with $666 million. Cash and cash equivalents ended the year at $412 million.

In the fourth quarter, the company generated $251 million of operating cash flow and recorded $1.03 billion of net capital expenditures, including $878 million for the acquisition of 28 service center locations. Long-term debt rose to $3.34 billion from $2.47 billion at the end of 2022. The filing furnishes the earnings press release as Exhibit 99.1 under Item 2.02, and the company scheduled a conference call for February 7, 2024.

02—Key points

Key Highlights

  1. Q4 2023 diluted EPS from continuing operations was $0.49, versus a loss of $0.31 in Q4 2022; adjusted diluted EPS was $0.77, versus $0.98.
  2. Q4 2023 revenue rose 6.0% to $1.94 billion, and operating income increased to $119 million from $4 million.
  3. North American LTL revenue increased 8.6% to $1.19 billion, with yield excluding fuel up 10.3% and tonnage per day up 2.0%.
  4. North American LTL adjusted operating ratio was 86.5%, an improvement of 380 basis points year over year.
  5. European Transportation operating loss narrowed to $2 million from $60 million on revenue of $753 million, up 2.0%.
  6. Full-year 2023 net income was $189 million and adjusted diluted EPS was $2.92, compared with $3.53 in 2022.
  7. Q4 2023 operating cash flow was $251 million; net capital expenditures were $1.03 billion, including $878 million for 28 service center locations.

03—Questions

Frequently Asked Questions

  1. Did XPO return to profitability in the fourth quarter of 2023?

    Yes. The company reported net income from continuing operations of $58 million, compared with a net loss of $36 million in the fourth quarter of 2022, and diluted EPS from continuing operations of $0.49 versus a loss of $0.31.

  2. What drove the improvement in North American LTL?

    Management cited higher yield excluding fuel, up 10.3%, and an increase in tonnage per day of 2.0%. Revenue rose 8.6% to $1.19 billion, and adjusted operating income increased to $160 million from $106 million. The CEO also cited service quality, with a damage claims ratio of 0.3%, described as a company record.

  3. Why did adjusted EPS decline even though GAAP results improved?

    Adjusted diluted EPS from continuing operations was $0.77, compared with $0.98 a year earlier, a decline of 21.4%. The filing notes that the 2022 period included $55 million of real estate gains, and that adjusted EPS excludes items such as transaction and integration costs, restructuring costs and amortization of acquisition-related intangible assets. Adjusted net income was $93 million, compared with $113 million.

  4. How is the company funding its capital investments?

    The filing shows that for full-year 2023 the company issued $2.96 billion of debt and repurchased $2.12 billion of debt. Payments for property and equipment totaled $1.53 billion, and long-term debt rose to $3.34 billion from $2.47 billion. Cash and cash equivalents were $412 million at year end.

04—Continue

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