Mr. Alain Bedard reports

TFI INTERNATIONAL ANNOUNCES 2017 FOURTH QUARTER AND FULL-YEAR RESULTS

TFI International Inc. has released its results for the fourth quarter and full year ended Dec. 31, 2017.

• Fourth quarter revenue before fuel surcharge from continuing operations up 2 per cent, to $1.06-billion;
• Net income from continuing operations of $120.2-million in the fourth quarter;
• Adjusted net income from continuing operations (1) up 8 per cent to $54.6-million, or 60 cents per diluted share in the fourth quarter.

"The fourth quarter capped a year of continued strong progress on our key initiatives, including greater operational efficiency and continued robust cash flow. Organic growth in operating income was strong in 2017 excluding our United States truckload operations," said Alain Bedard, chairman, president and chief executive officer. "Throughout the year, we generated strong cash flow, which we used to reduce our debt and return excess cash to shareholders through dividends and share buybacks."

                               FINANCIAL HIGHLIGHTS   
                (in millions of dollars, except per share data)                  
                                            
                                               Quarters ended Dec. 31,   Years ended Dec. 31,
                                                     2017        2016         2017      2016

Total revenue from continuing operations          1,182.5     1,137.7      4,741.0   4,025.2 
Revenue before fuel surcharge from 
continuing operations                             1,059.0     1,036.4      4,281.8   3,704.5 
Adjusted EBITDA * from continuing operations (1)    131.0       127.9        514.5     442.4   
Operating income from continuing operations          66.8        69.7        243.7     249.3  
Net cash from operating activities from 
continuing operations                               116.1       109.8        372.6     337.9  
Adjusted net income from continuing operations (1)   54.6        50.6        192.6     187.4  
Per share diluted (1)                               $0.60        0.54         2.08      1.96     
Net income from continuing operations               120.2       46.4         158.0     157.1
Per share diluted                                   $1.31        0.49         1.70      1.64     
Net income (2)                                      120.2       45.3         158.0     639.6
Per share diluted                                   $1.31        0.48         1.70      6.70

* Earnings before interest, taxes, depreciation and amortization.

(1) This is a non-IFRS (international financial reporting standards) measure.

(2) Includes net income (loss) from discontinued operations, of which a $490.8-million aftertax gain on the sale of the waste management segment was recorded in the first quarter of 2016.

Fourth quarter results

Total revenue from continuing operations reached $1.18-billion, up 4 per cent from last year. Net of fuel surcharge, revenue from continuing operations rose 2 per cent to $1.06-billion. The increase reflects business acquisitions offset by revenue declines in some existing operations as well as a negative currency impact.

Operating income from continuing operations decreased by $2.9-million to $66.8-million compared with $69.7-million in the fourth quarter of 2016, mainly due to $4.6-million of lower gains on sale of rolling stock and equipment.

Net income from continuing operations was $120.2-million, or $1.31 per diluted share, versus $46.4-million, or 49 cents per diluted share in the year earlier period. Adjusted net income from continuing operations, which excludes amortization of intangible assets related to business acquisitions, net change in the fair value of derivatives, net foreign exchange gain or loss, gain or loss on sale of property, impairment of intangible assets, and the impact from United States tax reform, net of tax, was $54.6-million compared with $50.6-million in the fourth quarter of 2016, up $4.0-million or 8 per cent. Net income was $120.2-million compared with $45.3-million in Q4 2016.

Full-year results

Total revenue from continuing operations increased 18 per cent, to $4.74-billion from $4.03-billion in 2016. The contribution from business acquisitions of $824.1-million and higher fuel surcharge was offset by decreases in revenue from existing operations. Net of fuel surcharge, revenue from continuing operations reached $4.28-billion, up from $3.70-billion last year. Operating income from continuing operations decreased by $5.6-million to $243.7-million, compared with $249.3-million in 2016. The decrease is attributable to an operating loss from business acquisitions of $13.2-million offset by improvement from existing operations' operating income of $7.6-million.

Net income from continuing operations was $158.0-million, or $1.70 per diluted share, versus $157.1-million, or $1.64 per diluted share last year. Adjusted net income from continuing operations increased by $5.2-million to $192.6-million. Net income was $158.0-million, compared with $639.6-million for 2016. The decrease is mainly attributable to last year's net income from discontinued operations of $482.5-million, which includes a gain on the sale of the waste management segment in the amount of $490.8-million, net of tax, and to 2017's intangible impairment charge of $138.4-million, net of tax, offset by the income tax recovery recorded as a result of U.S. tax reform for $76.1-million and by $59.2-million of higher gains on sale of property.

Cash flow and financial position

For the year ended Dec. 31, 2017, net cash from operating activities from continuing operations increased by 10 per cent from $337.9-million in 2016 to $372.6-million. The company used this cash flow to return $150.6-million to shareholders, of which $69.0-million was through dividends and $81.6-million was through share repurchases.

TFI International's long-term debt-to-equity ratio stood at 1.06 as of Dec. 31, 2017, down from 1.09 a year earlier.

Conference call

TFI International will host a conference call on Tuesday, Feb. 20, 2018, at 5 p.m. Eastern Time to discuss these results. Interested parties can join the call by dialling 1-877-223-4471. A recording of the call will be available until midnight, March 5, 2018, by dialling 1-800-585-8367 or 416-621-4642 and entering passcode 2595706.

About TFI International Inc.

TFI International is a North American leader in the transportation and logistics industry, operating across the United States, Canada and Mexico through its subsidiaries. TFI International creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly owned operating subsidiaries. Under the TFI International umbrella, the company's segments benefit from financial and operational resources to build their businesses and increase their efficiency. TFI International companies service the following segments:

• Package and courier;
• Less than truckload;
• Truckload;
• Logistics.

We seek Safe Harbor.