01—Abstract
Summary
Summary of the 8-K filed May 3, 2024. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. (NYSE: XPO) furnished a press release under Item 2.02 reporting its results for the fiscal quarter ended March 31, 2024.
Revenue rose to $2.02 billiona from $1.91 billion, operating income increased to $138 million from $58 million, and net income from continuing operations was $67 million versus $17 million a year earlier. Diluted EPS from continuing operations was $0.56 compared with $0.15, and adjusted diluted EPS was $0.81 compared with $0.56. Adjusted EBITDA rose to $288 million from $210 million, and the company generated $145 million of operating cash flow with $229 million of cash and cash equivalents at quarter-end.
The North American Less-Than-Truckload segment drove most of the improvement. Its revenue grew to $1.22 billionb from $1.12 billion, operating income rose to $165 million from $103 million, and adjusted operating ratio improved to 85.7%, a 390-basis-point improvement year over year. Management attributed this to yield growth excluding fuel of 9.8% and higher shipments and tonnage per day.
European Transportation revenue was $797 millionc, essentially flat, with an operating loss of $4 million, while Corporate operating loss narrowed to $23 million from $42 million on lower transaction, integration and restructuring costs. CEO Mario Harik said the company is still in the early stages of unlocking its full potential under its LTL 2.0 plan.
The filing's balance sheet shows total long-term debt of $3.32 billiond at March 31, 2024, and capital expenditures of $306 million in the quarter. The results are furnished, not filed, under Item 2.02 and include forward-looking statements subject to the risks described in the release.
02—Key points
Key Highlights
- Diluted EPS from continuing operations was $0.56 versus $0.15 a year earlier; adjusted diluted EPS was $0.81 versus $0.56.
- Total revenue increased to $2.02 billion from $1.91 billion, and operating income rose to $138 million from $58 million.
- Adjusted EBITDA was $288 million versus $210 million, with the North American LTL segment contributing $255 million versus $182 million.
- North American LTL adjusted operating ratio improved 390 basis points to 85.7%, driven by yield excluding fuel up 9.8% and shipments per day up 4.7%.
- European Transportation revenue was $797 million, up slightly from $787 million, with an operating loss of $4 million.
- Corporate operating loss narrowed to $23 million from $42 million, reflecting lower transaction, integration and restructuring costs.
- Operating cash flow was $145 million, with cash and equivalents of $229 million and net capital expenditures of $299 million at quarter-end.
03—Questions
Frequently Asked Questions
How did XPO perform in the first quarter of 2024 compared with the prior year?
Revenue was $2.02 billion, up from $1.91 billion. Operating income was $138 million versus $58 million, and net income from continuing operations was $67 million versus $17 million. Diluted EPS from continuing operations was $0.56 versus $0.15.
What drove the improvement in the North American LTL segment?
The filing attributes the gains to yield growth excluding fuel of 9.8%, a 4.7% increase in shipments per day and a 2.6% increase in tonnage per day. Adjusted operating ratio improved 390 basis points to 85.7%, and adjusted operating income rose to $175 million from $117 million.
What are the company's non-GAAP measures and how are they defined?
The release presents adjusted EBITDA, adjusted net income from continuing operations, adjusted diluted EPS, adjusted operating income and adjusted operating ratio. These exclude items such as transaction and integration costs, restructuring costs and amortization of acquisition-related intangible assets, and the company states they should be used only as supplemental measures.
What is XPO's liquidity and debt position at the end of the quarter?
Cash and cash equivalents were $229 million at March 31, 2024, down from $412 million at December 31, 2023. Long-term debt was $3.32 billion, and short-term borrowings and current maturities of long-term debt were $63 million.
Is the press release filed as part of this 8-K?
The press release is furnished as Exhibit 99.1. Under Item 2.02, the information is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into other filings unless expressly stated.
04—Continue