XPO (NYSE: XPO) today announced its financial results for the
fourth quarter 2023, reflecting a strong performance in a soft
industry environment for freight transportation. The company
reported diluted earnings from continuing operations per share of
$0.49 and adjusted diluted earnings from continuing operations per
share of $0.77.
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Fourth
Quarter 2023 Summary Results |
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Three months ended December 31, |
|
Revenue |
|
Operating Income (Loss) |
(in
millions) |
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|
2023 |
|
|
2022 |
|
|
Change % |
|
2023 |
|
|
|
2022 |
|
|
Change % |
North
American Less-Than-Truckload Segment |
|
$ |
1,187 |
|
$ |
1,093 |
|
|
8.6 |
% |
|
$ |
149 |
|
|
$ |
152 |
|
|
-2.0 |
% |
European
Transportation Segment |
|
|
753 |
|
|
738 |
|
|
2.0 |
% |
|
|
(2 |
) |
|
|
(60 |
) |
|
-96.7 |
% |
Corporate |
|
|
- |
|
|
- |
|
|
0.0 |
% |
|
|
(28 |
) |
|
|
(88 |
) |
|
-68.2 |
% |
Total |
|
$ |
1,940 |
|
$ |
1,831 |
|
|
6.0 |
% |
|
$ |
119 |
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$ |
4 |
|
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NM |
Memo: Gains on real estate transactions for NA LTL |
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- |
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55 |
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Three months ended December 31, |
|
Adjusted Operating Income(1) |
|
Adjusted EBITDA(1) |
(in
millions) |
|
|
2023 |
|
|
2022 |
|
|
Change % |
|
|
2023 |
|
|
|
2022 |
|
|
Change % |
North
American Less-Than-Truckload Segment |
|
$ |
160 |
|
$ |
106 |
|
|
50.9 |
% |
|
$ |
233 |
|
|
$ |
232 |
|
|
0.4 |
% |
European
Transportation Segment |
|
|
5 |
|
|
12 |
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|
-58.3 |
% |
|
|
36 |
|
|
|
39 |
|
|
-7.7 |
% |
Corporate |
|
|
NA |
|
|
NA |
|
NA |
|
|
(5 |
) |
|
|
(9 |
) |
|
-44.4 |
% |
Total |
|
$ |
NA |
|
$ |
NA |
|
NA |
|
$ |
264 |
|
|
$ |
262 |
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|
0.8 |
% |
Memo: Gains on real estate transactions for NA LTL |
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- |
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55 |
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Three months ended December 31, |
|
Net Income (Loss)(2) |
|
Diluted EPS(3) |
(in
millions, except for per-share data) |
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|
2023 |
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2022 |
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Change % |
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|
2023 |
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2022 |
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Change % |
Total |
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$ |
58 |
|
$ |
(36 |
) |
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NM |
|
$ |
0.49 |
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$ |
(0.31 |
) |
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NM |
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Diluted Weighted-Average Common Shares
Outstanding |
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Three months ended December 31, |
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|
Adjusted Diluted EPS(1)(3) |
(in
millions, except for per-share data) |
|
|
2023 |
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|
2022 |
|
|
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|
|
2023 |
|
|
|
2022 |
|
|
Change % |
Total |
|
|
120 |
|
|
115 |
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$ |
0.77 |
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$ |
0.98 |
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-21.4 |
% |
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NM - Not
meaningful |
NA - Not
applicable |
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(1) Reconciliations of
adjusted operating income, adjusted EBITDA and adjusted diluted EPS
are provided in the attached financial tables |
(2) Net income (loss)
from continuing operations |
(3) Diluted earnings
(loss) from continuing operations per share |
Mario Harik, chief executive officer of XPO, said, “We delivered
fourth quarter results that were solidly above expectations,
reflecting substantial momentum in service quality, pricing and
productivity. Companywide, year-over-year, we grew revenue by 6%
and adjusted EBITDA by 28%, excluding real estate gains in
2022.
“In North American LTL, we outperformed on every key operating
metric. This includes fourth quarter yield growth, excluding fuel,
of 10.3%, adjusted operating income growth of 51%, and adjusted
operating ratio improvement of 380 basis points. Our tonnage per
day was 2% higher than a year ago, with nearly 6% more shipments
per day.
“Behind each of these gains is our LTL 2.0 growth plan and our
commitment to provide premium customer service. In the fourth
quarter, we improved our damage claims ratio to a new company
record of 0.3%. The more service quality we deliver, the more value
our customers realize from doing business with us. This dynamic is
a key driver of our margin expansion.”
Harik continued, “It was gratifying to see our strategy take
root in 2023, XPO’s first full year as a standalone LTL company in
North America. Every positive trend in the business comes from our
team’s strong execution. We’re excited to continue to capitalize on
our momentum, while laying more groundwork for the years
ahead."
Fourth Quarter Highlights
For the fourth quarter 2023, revenue was $1.94 billion, compared
to $1.83 billion for the same period in 2022. The year-over-year
increase in revenue was due primarily to higher yield, excluding
fuel, and an increase in tonnage per day in the North American LTL
segment, partially offset by lower fuel surcharge revenue.
Net income from continuing operations was $58 million for the
fourth quarter, compared with a net loss of $36 million for the
same period in 2022. Operating income was $119 million for the
fourth quarter, compared with $4 million for the same period in
2022. Diluted earnings from continuing operations per share was
$0.49 for the fourth quarter, compared with a loss per share of
$0.31 for the same period in 2022.
Adjusted net income from continuing operations, a non-GAAP
financial measure, was $93 million for the fourth quarter, compared
with $113 million for the same period in 2022. Adjusted diluted
earnings from continuing operations per share (“adjusted diluted
EPS”), a non-GAAP financial measure, was $0.77 for the fourth
quarter, compared with $0.98 for the same period in 2022.
Adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA”), a non-GAAP financial measure, was
$264 million for the fourth quarter, compared with $262 million for
the same period in 2022. The fourth quarter 2022 included $55
million of real estate gains.
The company generated $251 million of cash flow from operating
activities in the fourth quarter, and ended the quarter with $412
million of cash and cash equivalents on hand, after $1.03 billion
of net capital expenditures, including $878 million related to the
acquisition of 28 service center locations.
Results by Business Segment
-
North American Less-Than-Truckload (LTL): The segment
generated revenue of $1.19 billion for the fourth quarter 2023,
compared with $1.09 billion for the same period in 2022. On a
year-over-year basis, shipments per day increased 5.7%, tonnage per
day increased 2.0%, and yield, excluding fuel, increased 10.3%.
Including fuel, yield increased 5.8%.Operating income was $149
million for the fourth quarter 2023, compared with $152 million for
the same period in 2022. Adjusted operating income, a non-GAAP
financial measure, was $160 million for the fourth quarter,
compared with $106 million for the same period in 2022. Adjusted
operating ratio, a non-GAAP financial measure, was 86.5%,
reflecting a year-over-year improvement of 380 basis
points.Adjusted EBITDA for the fourth quarter 2023 was $233
million, compared with $232 million for the same period in 2022.
The year-over-year increase in adjusted EBITDA was due primarily to
higher yield, excluding fuel, and an increase in tonnage per day,
partially offset by lower fuel surcharge revenue and pension
income, as well as $55 million of gains from real estate sales in
the 2022 period, compared with no gains in 2023. Excluding the
impact of real estate sales, adjusted EBITDA for the fourth quarter
2023 increased by 32% year-over-year.
-
European Transportation: The segment generated revenue of $753
million for the fourth quarter 2023, compared with $738 million for
the same period in 2022.Operating loss was $2 million for the
fourth quarter 2023, compared with a loss of $60 million for the
same period in 2022.Adjusted EBITDA was $36 million for the fourth
quarter, compared with $39 million for the same period in
2022.
-
Corporate: The segment generated an operating loss of $28
million for the fourth quarter 2023, compared with a loss of $88
million for the same period in 2022. The year-over-year decrease in
operating loss was due primarily to a $29 million reduction in
transaction and integration costs and a $29 million reduction in
restructuring costs as the company continues to rationalize
corporate overhead. This was partially offset by an $8 million
non-cash accrual in 2023 related to the expected resolution of a
previously disclosed environmental matter.Adjusted EBITDA, a
non-GAAP financial measure, was a loss of $5 million for the fourth
quarter, compared with a loss of $9 million for the same period in
2022.
Conference Call
The company will hold a conference call on Wednesday, February
7, 2024, at 8:30 a.m. Eastern Time. Participants can call toll-free
(from US/Canada) 1-877-269-7756; international callers dial
+1-201-689-7817. A live webcast of the conference will be available
on the investor relations area of the company’s website,
xpo.com/investors. The conference will be archived until March 9,
2024. To access the replay by phone, call toll-free (from
US/Canada) 1-877-660-6853; international callers dial
+1-201-612-7415. Use participant passcode 13743551.
About XPO
XPO, Inc. (NYSE: XPO) is one of the largest providers of
asset-based less-than-truckload (LTL) transportation in North
America, with proprietary technology that moves goods efficiently
through its network. Together with its business in Europe, XPO
serves approximately 52,000 customers with 596 locations and 38,000
employees. The company is headquartered in Greenwich, Conn., USA.
Visit xpo.com for more information, and connect with XPO on
Facebook, X, LinkedIn, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange
Commission (“SEC”), we provide reconciliations of the non-GAAP
financial measures contained in this press release to the most
directly comparable measure under GAAP, which are set forth in the
financial tables attached to this press release.
XPO’s non-GAAP financial measures in this press release include:
adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA”) on a consolidated basis and for
corporate; adjusted EBITDA margin on a consolidated basis; adjusted
EBITDA excluding gains on real estate transactions on a
consolidated basis and for our North American Less-Than-Truckload
segment; adjusted net income from continuing operations; adjusted
diluted earnings from continuing operations per share (“adjusted
diluted EPS”); adjusted operating income for our North American
Less-Than-Truckload and European Transportation segments; and
adjusted operating ratio for our North American Less-Than-Truckload
segment.
We believe that the above adjusted financial measures facilitate
analysis of our ongoing business operations because they exclude
items that may not be reflective of, or are unrelated to, XPO and
its business segments’ core operating performance, and may assist
investors with comparisons to prior periods and assessing trends in
our underlying businesses. Other companies may calculate these
non-GAAP financial measures differently, and therefore our measures
may not be comparable to similarly titled measures of other
companies. These non-GAAP financial measures should only be used as
supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA
excluding gains on real estate transactions, adjusted net income
from continuing operations, adjusted diluted EPS, adjusted
operating income and adjusted operating ratio include adjustments
for transaction and integration costs, as well as restructuring
costs and other adjustments as set forth in the attached tables.
Transaction and integration adjustments are generally incremental
costs that result from an actual or planned acquisition,
divestiture or spin-off and may include transaction costs,
consulting fees, stock-based compensation, retention awards,
internal salaries and wages (to the extent the individuals are
assigned full-time to integration and transformation activities)
and certain costs related to integrating and converging IT systems.
Restructuring costs primarily relate to severance costs associated
with business optimization initiatives. Management uses these
non-GAAP financial measures in making financial, operating and
planning decisions and evaluating XPO’s and each business segment’s
ongoing performance.
We believe that adjusted EBITDA and adjusted EBITDA margin
improve comparability from period to period by removing the impact
of our capital structure (interest and financing expenses), asset
base (depreciation and amortization), goodwill impairment charge,
tax impacts and other adjustments as set out in the attached tables
that management has determined are not reflective of core operating
activities and thereby assist investors with assessing trends in
our underlying businesses. We believe that adjusted net income from
continuing operations and adjusted diluted EPS improve the
comparability of our operating results from period to period by
removing the impact of certain costs and gains that management has
determined are not reflective of our core operating activities,
including amortization of acquisition-related intangible assets,
transaction and integration costs, restructuring costs and other
adjustments as set out in the attached tables. We believe that
adjusted operating income and adjusted operating ratio improve the
comparability of our operating results from period to period by
removing the impact of certain transaction and integration costs
and restructuring costs, as well as amortization expenses as set
out in the attached tables.
Forward-looking Statements
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements. In some cases,
forward-looking statements can be identified by the use of
forward-looking terms such as “anticipate,” “estimate,” “believe,”
“continue,” “could,” “intend,” “may,” “plan,” “potential,”
“predict,” “should,” “will,” “expect,” “objective,” “projection,”
“forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,”
“trajectory” or the negative of these terms or other comparable
terms. These forward-looking statements are based on certain
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate in the circumstances.
These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions that may cause actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute
to a material difference include the risks discussed in our filings
with the SEC, and the following: the effects of business, economic,
political, legal, and regulatory impacts or conflicts upon our
operations; supply chain disruptions, the global shortage of
certain components such as semiconductor chips, strains on
production or extraction of raw materials, cost inflation and labor
and equipment shortages; our ability to align our investments in
capital assets, including equipment, service centers, and
warehouses and other network facilities, to our customers’ demands;
our ability to implement our cost and revenue initiatives; the
effectiveness of our action plan, and other management actions, to
improve our North American LTL business; our ability to benefit
from a sale, spin-off or other divestiture of one or more business
units; our ability to successfully integrate and realize
anticipated synergies, cost savings and profit improvement
opportunities with respect to acquired companies; goodwill
impairment, including in connection with a business unit sale or
other divestiture; changes in tariffs, trade restrictions, trade
agreements, tax policies, the impacts of our defined benefit plans,
difficulties in managing or overseeing foreign operations and
external agents different liability standards, issues related to
compliance with data protection laws, competition laws, and
intellectual property laws in countries that we provide services
in; fluctuations in currency exchange rates; fuel price and fuel
surcharge changes; the expected benefits of the spin-offs of GXO
Logistics, Inc. and RXO, Inc. on the size and business diversity of
our company; our ability to develop and implement suitable
information technology systems; the impact of potential
cyber-attacks and information technology or data security breaches
or failures; our indebtedness; our ability to raise debt and equity
capital; fluctuations in fixed and floating interest rates;
seasonal fluctuations; issues related to our intellectual property
rights; our ability to maintain positive relationships with our
network of third-party transportation providers; our ability to
successfully manage the transitions of certain management roles;
our ability to attract and retain key employees, including
qualified drivers; labor matters; litigation; risks associated with
our self-insured claims; governmental or political actions; and
competition and pricing pressures.
All forward-looking statements set forth in this release are
qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by us
will be realized or, even if substantially realized, that they will
have the expected consequences to or effects on us or our business
or operations. Forward-looking statements set forth in this release
speak only as of the date hereof, and we do not undertake any
obligation to update forward-looking statements except to the
extent required by law.
Investor ContactBrian Scasserra+1
617-607-6429brian.scasserra@xpo.com
Media ContactJaycie Cooper+1
475-400-5003jaycie.cooper@xpo.com
XPO,
Inc. |
Consolidated
Statements of Income (Loss) |
(Unaudited) |
(In
millions, except per share data) |
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Three Months
Ended |
|
Years
Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
Change % |
|
|
2023 |
|
|
|
2022 |
|
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
1,940 |
|
|
$ |
1,831 |
|
|
6.0 |
% |
|
$ |
7,744 |
|
|
$ |
7,718 |
|
|
0.3 |
% |
Salaries, wages and employee benefits |
|
805 |
|
|
|
729 |
|
|
10.4 |
% |
|
|
3,159 |
|
|
|
2,945 |
|
|
7.3 |
% |
Purchased transportation |
|
422 |
|
|
|
449 |
|
|
-6.0 |
% |
|
|
1,760 |
|
|
|
1,964 |
|
|
-10.4 |
% |
Fuel, operating expenses and supplies |
|
400 |
|
|
|
410 |
|
|
-2.4 |
% |
|
|
1,623 |
|
|
|
1,687 |
|
|
-3.8 |
% |
Operating taxes and licenses |
|
15 |
|
|
|
14 |
|
|
7.1 |
% |
|
|
60 |
|
|
|
58 |
|
|
3.4 |
% |
Insurance and claims |
|
38 |
|
|
|
38 |
|
|
0.0 |
% |
|
|
167 |
|
|
|
183 |
|
|
-8.7 |
% |
Gains on sales of property and equipment |
|
(1 |
) |
|
|
(57 |
) |
|
-98.2 |
% |
|
|
(5 |
) |
|
|
(60 |
) |
|
-91.7 |
% |
Depreciation and amortization expense |
|
114 |
|
|
|
103 |
|
|
10.7 |
% |
|
|
432 |
|
|
|
392 |
|
|
10.2 |
% |
Goodwill impairment |
|
- |
|
|
|
64 |
|
|
-100.0 |
% |
|
|
- |
|
|
|
64 |
|
|
-100.0 |
% |
Litigation matter (1) |
|
8 |
|
|
|
- |
|
|
NM |
|
|
8 |
|
|
|
- |
|
|
NM |
Transaction and integration costs |
|
11 |
|
|
|
42 |
|
|
-73.8 |
% |
|
|
58 |
|
|
|
58 |
|
|
0.0 |
% |
Restructuring costs |
|
9 |
|
|
|
35 |
|
|
-74.3 |
% |
|
|
44 |
|
|
|
50 |
|
|
-12.0 |
% |
Operating income |
|
119 |
|
|
|
4 |
|
|
NM |
|
|
438 |
|
|
|
377 |
|
|
16.2 |
% |
Other income |
|
(3 |
) |
|
|
(13 |
) |
|
-76.9 |
% |
|
|
(15 |
) |
|
|
(55 |
) |
|
-72.7 |
% |
Debt extinguishment loss |
|
2 |
|
|
|
13 |
|
|
-84.6 |
% |
|
|
25 |
|
|
|
39 |
|
|
-35.9 |
% |
Interest expense |
|
42 |
|
|
|
32 |
|
|
31.3 |
% |
|
|
168 |
|
|
|
135 |
|
|
24.4 |
% |
Income (loss) from continuing operations before income tax
provision |
|
78 |
|
|
|
(28 |
) |
|
NM |
|
|
260 |
|
|
|
258 |
|
|
0.8 |
% |
Income tax provision |
|
20 |
|
|
|
8 |
|
|
150.0 |
% |
|
|
68 |
|
|
|
74 |
|
|
-8.1 |
% |
Income (loss) from continuing operations |
|
58 |
|
|
|
(36 |
) |
|
NM |
|
|
192 |
|
|
|
184 |
|
|
4.3 |
% |
Income (loss) from discontinued operations, net of taxes |
|
- |
|
|
|
(58 |
) |
|
-100.0 |
% |
|
|
(3 |
) |
|
- |
482 |
|
|
NM |
Net
income (loss) |
$ |
58 |
|
|
$ |
(94 |
) |
|
NM |
|
$ |
189 |
|
|
$ |
666 |
|
|
-71.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
58 |
|
|
$ |
(36 |
) |
|
|
|
$ |
192 |
|
|
$ |
184 |
|
|
|
Discontinued operations |
|
- |
|
|
|
(58 |
) |
|
|
|
|
(3 |
) |
|
|
482 |
|
|
|
Net income (loss) |
$ |
58 |
|
|
$ |
(94 |
) |
|
|
|
$ |
189 |
|
|
$ |
666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.50 |
|
|
$ |
(0.31 |
) |
|
|
|
$ |
1.66 |
|
|
$ |
1.60 |
|
|
|
Discontinued operations |
|
- |
|
|
|
(0.50 |
) |
|
|
|
|
(0.02 |
) |
|
|
4.19 |
|
|
|
Basic earnings (loss) per share |
$ |
0.50 |
|
|
$ |
(0.81 |
) |
|
|
|
$ |
1.64 |
|
|
$ |
5.79 |
|
|
|
Diluted earnings (loss) per share
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.49 |
|
|
$ |
(0.31 |
) |
|
|
|
$ |
1.62 |
|
|
$ |
1.59 |
|
|
|
Discontinued operations |
|
- |
|
|
|
(0.50 |
) |
|
|
|
|
(0.02 |
) |
|
|
4.17 |
|
|
|
Diluted earnings (loss) per share |
$ |
0.49 |
|
|
$ |
(0.81 |
) |
|
|
|
$ |
1.60 |
|
|
$ |
5.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
116 |
|
|
|
115 |
|
|
|
|
|
116 |
|
|
|
115 |
|
|
|
Diluted weighted-average common shares outstanding |
|
120 |
|
|
|
115 |
|
|
|
|
|
118 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful. |
|
|
(1) Relates to
California Environmental Matters as described in Note 9 to the
Company's third quarter Form 10-Q. |
(2) The sum of
quarterly earnings (loss) per share may not equal year-to-date
amounts due to differences in the weighted-average number of shares
outstanding during the respective periods. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XPO,
Inc. |
Consolidated
Balance Sheets |
(Unaudited) |
(In
millions, except per share data) |
|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
412 |
|
|
$ |
460 |
|
Accounts receivable, net of allowances of $45 and $43,
respectively |
|
973 |
|
|
|
954 |
|
Other current assets |
|
208 |
|
|
|
199 |
|
Current assets of discontinued operations |
|
- |
|
|
|
17 |
|
Total current assets |
|
1,593 |
|
|
|
1,630 |
|
Long-term assets |
|
|
|
|
|
Property and equipment, net of $1,853 and $1,679 in accumulated
depreciation, respectively |
|
3,075 |
|
|
|
1,832 |
|
Operating lease assets |
|
708 |
|
|
|
719 |
|
Goodwill |
|
1,498 |
|
|
|
1,472 |
|
Identifiable intangible assets, net of $452 and $392 in accumulated
amortization, respectively |
422 |
|
|
|
407 |
|
Other long-term assets |
|
196 |
|
|
|
209 |
|
Total long-term assets |
|
5,899 |
|
|
|
4,639 |
|
Total assets |
$ |
7,492 |
|
|
$ |
6,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
532 |
|
|
$ |
521 |
|
Accrued expenses |
|
775 |
|
|
|
774 |
|
Short-term borrowings and current maturities of long-term debt |
|
69 |
|
|
|
59 |
|
Short-term operating lease liabilities |
|
121 |
|
|
|
107 |
|
Other current liabilities |
|
93 |
|
|
|
30 |
|
Current liabilities of discontinued operations |
|
- |
|
|
|
16 |
|
Total current liabilities |
|
1,590 |
|
|
|
1,507 |
|
Long-term liabilities |
|
|
|
|
|
Long-term debt |
|
3,335 |
|
|
|
2,473 |
|
Deferred tax liability |
|
337 |
|
|
|
319 |
|
Employee benefit obligations |
|
91 |
|
|
|
93 |
|
Long-term operating lease liabilities |
|
588 |
|
|
|
606 |
|
Other long-term liabilities |
|
285 |
|
|
|
259 |
|
Total long-term liabilities |
|
4,636 |
|
|
|
3,750 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Common stock, $0.001 par value; 300 shares authorized; 116 and 115
shares issued and |
|
|
|
|
|
outstanding as of December 31, 2023 and December 31, 2022,
respectively |
|
- |
|
|
|
- |
|
Additional paid-in capital |
|
1,298 |
|
|
|
1,238 |
|
Retained earnings (accumulated deficit) |
|
185 |
|
|
|
(4 |
) |
Accumulated other comprehensive loss |
|
(217 |
) |
|
|
(222 |
) |
Total equity |
|
1,266 |
|
|
|
1,012 |
|
Total liabilities and equity |
$ |
7,492 |
|
|
$ |
6,269 |
|
|
|
|
|
|
|
XPO,
Inc. |
|
Consolidated
Statements of Cash Flows |
|
(Unaudited) |
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
Years
Ended |
|
|
|
December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Cash flows from operating activities of continuing
operations |
|
|
|
|
|
|
Net income |
$ |
189 |
|
|
$ |
666 |
|
|
Income (loss) from discontinued operations, net of taxes |
|
(3 |
) |
|
|
482 |
|
|
Income from continuing operations |
|
192 |
|
|
|
184 |
|
|
Adjustments to reconcile income from continuing operations
to net cash from operating activities |
|
|
|
|
|
|
|
Depreciation, amortization and net lease activity |
|
432 |
|
|
|
392 |
|
|
|
Goodwill
impairment |
|
- |
|
|
|
64 |
|
|
|
Stock
compensation expense |
|
78 |
|
|
|
77 |
|
|
|
Accretion of
debt |
|
11 |
|
|
|
16 |
|
|
|
Deferred tax
expense |
|
31 |
|
|
|
80 |
|
|
|
Gains on
sales of property and equipment |
|
(5 |
) |
|
|
(60 |
) |
|
|
Other |
|
54 |
|
|
|
70 |
|
|
Changes in assets and liabilities |
|
|
|
|
|
|
|
Accounts
receivable |
|
(46 |
) |
|
|
(100 |
) |
|
|
Other
assets |
|
(9 |
) |
|
|
(3 |
) |
|
|
Accounts
payable |
|
(48 |
) |
|
|
62 |
|
|
|
Accrued
expenses and other liabilities |
|
4 |
|
|
|
42 |
|
|
Net cash provided by operating activities from continuing
operations |
|
694 |
|
|
|
824 |
|
|
Cash flows from investing activities of continuing
operations |
|
|
|
|
|
|
|
Payment for
purchases of property and equipment |
|
(1,533 |
) |
|
|
(521 |
) |
|
|
Proceeds
from sale of property and equipment |
|
29 |
|
|
|
88 |
|
|
|
Proceeds
from settlement of cross currency swaps |
|
2 |
|
|
|
29 |
|
|
Net cash used in investing activities from continuing
operations |
|
(1,502 |
) |
|
|
(404 |
) |
|
Cash flows from financing activities of continuing
operations |
|
|
|
|
|
|
|
Proceeds
from issuance of debt |
|
2,962 |
|
|
|
- |
|
|
|
Repurchase
of debt |
|
(2,117 |
) |
|
|
(1,068 |
) |
|
|
Proceeds
from borrowings on ABL facility |
|
- |
|
|
|
275 |
|
|
|
Repayment of
borrowings on ABL facility |
|
- |
|
|
|
(275 |
) |
|
|
Repayment of
debt and finance leases |
|
(71 |
) |
|
|
(61 |
) |
|
|
Payment for
debt issuance costs |
|
(27 |
) |
|
|
- |
|
|
|
Change in
bank overdrafts |
|
34 |
|
|
|
(20 |
) |
|
|
Payment for
tax withholdings for restricted shares |
|
(19 |
) |
|
|
(27 |
) |
|
|
Distribution
from RXO and GXO spins, net |
|
- |
|
|
|
312 |
|
|
|
Other |
|
(1 |
) |
|
|
3 |
|
|
Net cash provided by (used in) financing activities from
continuing operations |
|
761 |
|
|
|
(861 |
) |
|
Cash flows from discontinued operations |
|
|
|
|
|
|
|
Operating
activities of discontinued operations |
|
(12 |
) |
|
|
8 |
|
|
|
Investing
activities of discontinued operations |
|
3 |
|
|
|
649 |
|
|
|
Financing
activities of discontinued operations |
|
- |
|
|
|
(1 |
) |
|
Net cash provided by (used in) discontinued
operations |
|
(9 |
) |
|
|
656 |
|
|
Effect of exchange rates on cash, cash equivalents and restricted
cash |
|
5 |
|
|
|
(18 |
) |
|
Net increase (decrease) in cash, cash equivalents and
restricted cash |
|
(51 |
) |
|
|
197 |
|
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
470 |
|
|
|
273 |
|
|
Cash, cash equivalents and restricted cash, end of
period |
$ |
419 |
|
|
$ |
470 |
|
|
|
|
|
|
|
|
|
|
North
American Less-Than-Truckload Segment |
|
Summary
Financial Table |
|
(Unaudited) |
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
Change % |
|
2023 |
|
|
2022 |
|
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge revenue) |
$ |
966 |
|
|
$ |
851 |
|
|
13.5 |
% |
|
$ |
3,814 |
|
|
$ |
3,631 |
|
|
5.0 |
% |
|
Fuel surcharge revenue |
|
221 |
|
|
|
242 |
|
|
-8.7 |
% |
|
|
857 |
|
|
|
1,014 |
|
|
-15.5 |
% |
|
Revenue |
|
1,187 |
|
|
|
1,093 |
|
|
8.6 |
% |
|
|
4,671 |
|
|
|
4,645 |
|
|
0.6 |
% |
|
Salaries, wages and employee benefits |
|
602 |
|
|
|
546 |
|
|
10.3 |
% |
|
|
2,346 |
|
|
|
2,176 |
|
|
7.8 |
% |
|
Purchased transportation |
|
83 |
|
|
|
106 |
|
|
-21.7 |
% |
|
|
366 |
|
|
|
499 |
|
|
-26.7 |
% |
|
Fuel, operating expenses and supplies (1) |
|
238 |
|
|
|
242 |
|
|
-1.7 |
% |
|
|
956 |
|
|
|
983 |
|
|
-2.7 |
% |
|
Operating taxes and licenses |
|
13 |
|
|
|
11 |
|
|
18.2 |
% |
|
|
48 |
|
|
|
48 |
|
|
0.0 |
% |
|
Insurance and claims |
|
21 |
|
|
|
25 |
|
|
-16.0 |
% |
|
|
102 |
|
|
|
123 |
|
|
-17.1 |
% |
|
(Gains) losses on sales of property and equipment |
|
2 |
|
|
|
(54 |
) |
|
NM |
|
|
8 |
|
|
|
(54 |
) |
|
NM |
|
Depreciation and amortization |
|
77 |
|
|
|
64 |
|
|
20.3 |
% |
|
|
291 |
|
|
|
239 |
|
|
21.8 |
% |
|
Transaction and integration costs |
|
- |
|
|
|
1 |
|
|
-100.0 |
% |
|
|
- |
|
|
|
3 |
|
|
-100.0 |
% |
|
Restructuring costs |
|
2 |
|
|
|
- |
|
|
NM |
|
|
12 |
|
|
|
5 |
|
|
140.0 |
% |
|
Operating income |
|
149 |
|
|
|
152 |
|
|
-2.0 |
% |
|
|
542 |
|
|
|
623 |
|
|
-13.0 |
% |
|
Operating ratio (2) |
|
87.4 |
% |
|
|
86.1 |
% |
|
|
|
|
88.4 |
% |
|
|
86.6 |
% |
|
|
|
Other income |
|
1 |
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
Amortization expense |
|
8 |
|
|
|
8 |
|
|
|
|
|
34 |
|
|
|
34 |
|
|
|
|
Transaction and integration costs |
|
- |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
3 |
|
|
|
|
Restructuring costs |
|
2 |
|
|
|
- |
|
|
|
|
|
12 |
|
|
|
5 |
|
|
|
|
Gains on real estate transactions |
|
- |
|
|
|
(55 |
) |
|
|
|
|
- |
|
|
|
(55 |
) |
|
|
|
Adjusted operating income
(3) |
$ |
160 |
|
|
$ |
106 |
|
|
50.9 |
% |
|
$ |
589 |
|
|
$ |
611 |
|
|
-3.6 |
% |
|
Adjusted operating ratio (3)
(4) |
|
86.5 |
% |
|
|
90.3 |
% |
|
|
|
|
87.4 |
% |
|
|
86.8 |
% |
|
|
|
Depreciation expense |
|
69 |
|
|
|
56 |
|
|
|
|
|
257 |
|
|
|
205 |
|
|
|
|
Pension income |
|
4 |
|
|
|
15 |
|
|
|
|
|
17 |
|
|
|
59 |
|
|
|
|
Gains on real estate transactions |
|
- |
|
|
|
55 |
|
|
|
|
|
- |
|
|
|
55 |
|
|
|
|
Other |
|
- |
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
|
Adjusted EBITDA (5) |
$ |
233 |
|
|
$ |
232 |
|
|
0.4 |
% |
|
$ |
864 |
|
|
$ |
932 |
|
|
-7.3 |
% |
|
Adjusted EBITDA margin (6) |
|
19.6 |
% |
|
|
21.2 |
% |
|
|
|
|
18.5 |
% |
|
|
20.1 |
% |
|
|
|
Gains on real estate transactions |
|
- |
|
|
|
55 |
|
|
|
|
|
- |
|
|
|
55 |
|
|
|
|
Adjusted EBITDA, excluding gains on real estate
transactions (3) |
$ |
233 |
|
|
$ |
177 |
|
|
31.6 |
% |
|
$ |
864 |
|
|
$ |
877 |
|
|
-1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful. |
|
(1) Fuel, operating
expenses and supplies includes fuel-related taxes. |
|
(2) Operating ratio is
calculated as (1 - (Operating income divided by Revenue)). |
|
(3) See the “Non-GAAP
Financial Measures” section of the press release. |
|
(4) Adjusted operating
ratio is calculated as (1 - (Adjusted operating income divided by
Revenue)); adjusted operating margin is the inverse of adjusted
operating ratio. |
|
(5) Adjusted EBITDA is
used by our chief operating decision maker to evaluate segment
profit (loss) in accordance with ASC 280. |
|
(6) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by Revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
American Less-Than-Truckload |
|
Summary Data
Table |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds per
day (thousands) |
|
69,357 |
|
|
67,996 |
|
2.0 |
% |
|
|
70,196 |
|
|
70,163 |
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
per day |
|
51,382 |
|
|
48,622 |
|
5.7 |
% |
|
|
51,322 |
|
|
49,257 |
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
weight per shipment (in pounds) |
|
1,350 |
|
|
1,398 |
|
-3.4 |
% |
|
|
1,368 |
|
|
1,424 |
|
-3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per
shipment |
$ |
378.49 |
|
$ |
368.27 |
|
2.8 |
% |
|
$ |
362.38 |
|
$ |
373.10 |
|
-2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
revenue per hundredweight (including fuel surcharges) (1) |
$ |
28.60 |
|
$ |
27.03 |
|
5.8 |
% |
|
$ |
27.07 |
|
$ |
26.90 |
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
revenue per hundredweight (excluding fuel surcharges) (1) |
$ |
23.37 |
|
$ |
21.19 |
|
10.3 |
% |
|
$ |
22.21 |
|
$ |
21.18 |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
length of haul (in miles) |
|
852.6 |
|
|
832.3 |
|
|
|
|
842.6 |
|
|
831.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
average load factor (2) |
|
22,564 |
|
|
23,099 |
|
-2.3 |
% |
|
|
22,789 |
|
|
23,718 |
|
-3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average age
of tractor fleet (years) |
|
5.0 |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
working days |
|
61.0 |
|
|
61.0 |
|
|
|
|
251.0 |
|
|
252.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gross revenue per
hundredweight excludes the adjustment required for financial
statement purposes in accordance with the company's revenue
recognition policy. |
|
(2) Total average load
factor equals freight pound miles divided by total linehaul
miles. |
|
Note: Table excludes
the company's trailer manufacturing operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European
Transportation Segment |
|
Summary
Financial Table |
|
(Unaudited) |
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
Change % |
|
2023 |
|
|
2022 |
|
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
753 |
|
|
$ |
738 |
|
|
2.0 |
% |
|
$ |
3,073 |
|
|
$ |
3,073 |
|
|
0.0 |
% |
|
Salaries, wages and employee benefits |
|
200 |
|
|
|
180 |
|
|
11.1 |
% |
|
|
795 |
|
|
|
717 |
|
|
10.9 |
% |
|
Purchased transportation |
|
339 |
|
|
|
343 |
|
|
-1.2 |
% |
|
|
1,394 |
|
|
|
1,465 |
|
|
-4.8 |
% |
|
Fuel, operating expenses and supplies (1) |
162 |
|
|
|
161 |
|
|
0.6 |
% |
|
|
661 |
|
|
|
660 |
|
|
0.2 |
% |
|
Operating taxes and licenses |
|
2 |
|
|
|
3 |
|
|
-33.3 |
% |
|
|
12 |
|
|
|
10 |
|
|
20.0 |
% |
|
Insurance and claims |
|
16 |
|
|
|
15 |
|
|
6.7 |
% |
|
|
59 |
|
|
|
57 |
|
|
3.5 |
% |
|
Gains on sales of property and equipment |
(3 |
) |
|
|
(3 |
) |
|
0.0 |
% |
|
|
(13 |
) |
|
|
(6 |
) |
|
116.7 |
% |
|
Depreciation and amortization |
|
36 |
|
|
|
32 |
|
|
12.5 |
% |
|
|
136 |
|
|
|
128 |
|
|
6.3 |
% |
|
Goodwill impairment |
|
- |
|
|
|
64 |
|
|
-100.0 |
% |
|
|
- |
|
|
|
64 |
|
|
-100.0 |
% |
|
Transaction and integration costs |
|
- |
|
|
|
1 |
|
|
-100.0 |
% |
|
|
2 |
|
|
|
6 |
|
|
-66.7 |
% |
|
Restructuring costs |
|
3 |
|
|
|
2 |
|
|
50.0 |
% |
|
|
12 |
|
|
|
6 |
|
|
100.0 |
% |
|
Operating income (loss) |
$ |
(2 |
) |
|
$ |
(60 |
) |
|
-96.7 |
% |
|
$ |
15 |
|
|
$ |
(34 |
) |
|
NM |
|
Other expense |
|
(1 |
) |
|
|
- |
|
|
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
Amortization expense |
|
5 |
|
|
|
5 |
|
|
|
|
|
21 |
|
|
|
20 |
|
|
|
|
Goodwill impairment |
|
- |
|
|
|
64 |
|
|
|
|
|
- |
|
|
|
64 |
|
|
|
|
Transaction and integration costs |
|
- |
|
|
|
1 |
|
|
|
|
|
2 |
|
|
|
6 |
|
|
|
|
Restructuring costs |
|
3 |
|
|
|
2 |
|
|
|
|
|
12 |
|
|
|
6 |
|
|
|
|
Adjusted operating income
(2) |
$ |
5 |
|
|
$ |
12 |
|
|
-58.3 |
% |
|
$ |
48 |
|
|
$ |
61 |
|
|
-21.3 |
% |
|
Depreciation expense |
|
31 |
|
|
|
27 |
|
|
|
|
|
115 |
|
|
|
108 |
|
|
|
|
Adjusted EBITDA (3) |
$ |
36 |
|
|
$ |
39 |
|
|
-7.7 |
% |
|
$ |
163 |
|
|
$ |
169 |
|
|
-3.6 |
% |
|
Adjusted EBITDA margin (4) |
|
4.7 |
% |
|
|
5.2 |
% |
|
|
|
|
5.3 |
% |
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful. |
|
(1) Fuel, operating
expenses and supplies includes fuel-related taxes. |
|
(2) See the “Non-GAAP
Financial Measures” section of the press release. |
|
(3) Adjusted EBITDA is
used by our chief operating decision maker to evaluate segment
profit (loss) in accordance with ASC 280. |
|
(4) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by Revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
Summary
Financial Table |
|
(Unaudited) |
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
Change % |
|
2023 |
|
|
2022 |
|
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
- |
|
|
$ |
- |
|
|
0.0 |
% |
|
$ |
- |
|
|
$ |
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
|
3 |
|
|
|
3 |
|
|
0.0 |
% |
|
|
18 |
|
|
|
52 |
|
|
-65.4 |
% |
|
Fuel, operating expenses and supplies |
|
- |
|
|
|
7 |
|
|
-100.0 |
% |
|
|
6 |
|
|
|
44 |
|
|
-86.4 |
% |
|
Operating taxes and licenses |
|
- |
|
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
|
- |
|
|
0.0 |
% |
|
Insurance and claims |
|
1 |
|
|
|
(2 |
) |
|
-150.0 |
% |
|
|
6 |
|
|
|
3 |
|
|
100.0 |
% |
|
Depreciation and amortization |
|
1 |
|
|
|
7 |
|
|
-85.7 |
% |
|
|
5 |
|
|
|
25 |
|
|
-80.0 |
% |
|
Litigation matter (1) |
|
8 |
|
|
|
- |
|
|
NM |
|
|
8 |
|
|
|
- |
|
|
NM |
|
Transaction and integration costs |
|
11 |
|
|
|
40 |
|
|
-72.5 |
% |
|
|
56 |
|
|
|
49 |
|
|
14.3 |
% |
|
Restructuring costs |
|
4 |
|
|
|
33 |
|
|
-87.9 |
% |
|
|
20 |
|
|
|
39 |
|
|
-48.7 |
% |
|
Operating loss |
$ |
(28 |
) |
|
$ |
(88 |
) |
|
-68.2 |
% |
|
$ |
(119 |
) |
|
$ |
(212 |
) |
|
-43.9 |
% |
|
Other income (expense) (2) |
|
(1 |
) |
|
|
(1 |
) |
|
|
|
|
(1 |
) |
|
|
(5 |
) |
|
|
|
Depreciation and amortization |
|
1 |
|
|
|
7 |
|
|
|
|
|
5 |
|
|
|
25 |
|
|
|
|
Litigation matter (1) |
|
8 |
|
|
|
- |
|
|
|
|
|
8 |
|
|
|
- |
|
|
|
|
Transaction and integration costs |
|
11 |
|
|
|
40 |
|
|
|
|
|
56 |
|
|
|
49 |
|
|
|
|
Restructuring costs |
|
4 |
|
|
|
33 |
|
|
|
|
|
20 |
|
|
|
39 |
|
|
|
|
Adjusted EBITDA (3) |
$ |
(5 |
) |
|
$ |
(9 |
) |
|
-44.4 |
% |
|
$ |
(31 |
) |
|
$ |
(104 |
) |
|
-70.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful. |
|
(1) Relates to
California Environmental Matters as described in Note 9 to the
Company's third quarter Form 10-Q. |
|
(2) Other income
(expense) consists of foreign currency gain (loss) and other income
(expense). |
|
(3) See the “Non-GAAP
Financial Measures” section of the press release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XPO,
Inc. |
|
Reconciliation of Non-GAAP Measures |
|
(Unaudited) |
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
Change % |
|
2023 |
|
|
2022 |
|
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) from Continuing
Operations to Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations |
$ |
58 |
|
|
$ |
(36 |
) |
|
NM |
|
$ |
192 |
|
|
$ |
184 |
|
|
4.3 |
% |
|
Debt
extinguishment loss |
|
2 |
|
|
|
13 |
|
|
|
|
|
25 |
|
|
|
39 |
|
|
|
|
Interest
expense |
|
42 |
|
|
|
32 |
|
|
|
|
|
168 |
|
|
|
135 |
|
|
|
|
Income tax
provision |
|
20 |
|
|
|
8 |
|
|
|
|
|
68 |
|
|
|
74 |
|
|
|
|
Depreciation
and amortization expense |
|
114 |
|
|
|
103 |
|
|
|
|
|
432 |
|
|
|
392 |
|
|
|
|
Goodwill
impairment |
|
- |
|
|
|
64 |
|
|
|
|
|
- |
|
|
|
64 |
|
|
|
|
Litigation
matter (1) |
|
8 |
|
|
|
- |
|
|
|
|
|
8 |
|
|
|
- |
|
|
|
|
Transaction
and integration costs |
|
11 |
|
|
|
42 |
|
|
|
|
|
58 |
|
|
|
58 |
|
|
|
|
Restructuring costs |
|
9 |
|
|
|
35 |
|
|
|
|
|
44 |
|
|
|
50 |
|
|
|
|
Other |
|
- |
|
|
|
1 |
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
|
Adjusted EBITDA (2) |
$ |
264 |
|
|
$ |
262 |
|
|
0.8 |
% |
|
$ |
996 |
|
|
$ |
997 |
|
|
-0.1 |
% |
|
Revenue |
$ |
1,940 |
|
|
$ |
1,831 |
|
|
6.0 |
% |
|
$ |
7,744 |
|
|
$ |
7,718 |
|
|
0.3 |
% |
|
Adjusted EBITDA margin (2)
(3) |
|
13.6 |
% |
|
|
14.3 |
% |
|
|
|
|
12.9 |
% |
|
|
12.9 |
% |
|
|
|
Gains on
real estate transactions |
|
- |
|
|
|
55 |
|
|
|
|
|
- |
|
|
|
55 |
|
|
|
|
Adjusted EBITDA, excluding gains on real estate
transactions (2) |
$ |
264 |
|
|
$ |
207 |
|
|
27.5 |
% |
|
$ |
996 |
|
|
$ |
942 |
|
|
5.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
meaningful. |
|
(1) Relates to
California Environmental Matters as described in Note 9 to the
Company's third quarter Form 10-Q. |
|
(2) See the “Non-GAAP
Financial Measures” section of the press release. |
|
(3) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by Revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
XPO,
Inc. |
|
|
Reconciliation of Non-GAAP Measures (cont.) |
|
(Unaudited) |
|
(In
millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Years
Ended |
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) from Continuing
Operations and Diluted Earnings (Loss) Per Share from Continuing
Operations to Adjusted Net Income from Continuing Operations and
Adjusted Earnings Per Share from Continuing
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
$ |
58 |
|
|
$ |
(36 |
) |
|
$ |
192 |
|
|
$ |
184 |
|
|
|
|
Debt
extinguishment loss |
|
2 |
|
|
|
13 |
|
|
|
25 |
|
|
|
39 |
|
|
|
|
Amortization
of acquisition-related intangible assets |
|
13 |
|
|
|
14 |
|
|
|
55 |
|
|
|
54 |
|
|
|
|
Goodwill
impairment |
|
- |
|
|
|
64 |
|
|
|
- |
|
|
|
64 |
|
|
|
|
Litigation
matter (1) |
|
8 |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
|
Transaction
and integration costs |
|
11 |
|
|
|
42 |
|
|
|
58 |
|
|
|
58 |
|
|
|
|
Restructuring costs |
|
9 |
|
|
|
35 |
|
|
|
44 |
|
|
|
50 |
|
|
|
|
Income tax
associated with the adjustments above (2) |
|
(8 |
) |
|
|
(19 |
) |
|
|
(36 |
) |
|
|
(41 |
) |
|
|
Adjusted net income from continuing operations
(4) |
$ |
93 |
|
|
$ |
113 |
|
|
$ |
346 |
|
|
$ |
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings from continuing operations per
share (4) |
$ |
0.77 |
|
|
$ |
0.98 |
|
|
$ |
2.92 |
|
|
$ |
3.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average common shares outstanding |
|
120 |
|
|
|
115 |
|
|
|
118 |
|
|
|
116 |
|
|
|
|
Incremental
dilutive effect of stock-based awards |
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
|
Adjusted
diluted weighted-average common shares outstanding |
|
120 |
|
|
|
116 |
|
|
|
118 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Relates to
California Environmental Matters as described in Note 9 to the
Company's third quarter Form 10-Q. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) This line item
reflects the aggregate tax benefit of all non-tax related
adjustments reflected in the table above. The detail by line item
is as follows: |
|
|
|
Debt extinguishment loss |
$ |
- |
|
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
9 |
|
|
|
|
Amortization of acquisition-related intangible assets |
|
3 |
|
|
|
3 |
|
|
|
13 |
|
|
|
12 |
|
|
|
|
Goodwill impairment (3) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Litigation matter |
|
2 |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
|
Transaction and integration costs |
|
1 |
|
|
|
7 |
|
|
|
6 |
|
|
|
11 |
|
|
|
|
Restructuring costs |
|
2 |
|
|
|
6 |
|
|
|
10 |
|
|
|
9 |
|
|
|
|
|
$ |
8 |
|
|
$ |
19 |
|
|
$ |
36 |
|
|
$ |
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The income tax rate
applied to reconciling items is based on the GAAP annual effective
tax rate, excluding discrete items, non-deductible compensation,
and contribution- and margin-based taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Goodwill
impairment is a non-deductible charge. |
|
|
(4) See the "Non-GAAP
Financial Measures" section of the press release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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