TFII - Earnings call transcript Q3 2020

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Operator

[00:00:03] Good morning, ladies and gentlemen, thank you for standing by. Welcome to TFI International's to Quarter 2020 Results Conference Call. At this time, all participants and listen, only mode following the presentation will come back a question and answer session. Callers will be limited to one question and a follow up in order to get to as many callers as possible. Further instructions for answering the queue will be provided at that time.

are call call management, that that would looking nature the that be are could turn number anticipated. in conference a to this contain and from cause we actual over and differ please to advised forward of results Before risk to materially uncertainty those subject several statements dollar are All amounts in Canadian dollars.

Friday, to I to conference to Chairman, call go the recorded TFI on Lastly, would over this is twenty. International. twenty like that I October. remind would Alain third, everyone president turn executive like call and Please not Twenty officer being Bédard, ahead. chief of

Alain Bédard

we [XX:XX:XX] the us released introduction quarter Well, results. everyone for call. joining very for appreciate thank much operator, this and Close, Yesterday our you third I morning's Market after

a press quarter. strong very visit If release, at DFI of third site, you the please International, need Web our a copy

forward. That the expected despite and positive our As for focus financial and our employees I continued seen our of and results had mentioned and going and and despite our health several customers. pandemic played our on we strong on operational well-being last came well bodes the the call, quarter, This despite out ongoing of developments. our performance our during as

getting you increase consistently and our the International's mention, invested efficiencies details relentless seek As frequently We to of a on is enhance business me right. TFI operating capital. focus fundamentals philosophy hear hallmark of the on opportunities returns the constantly

term excess strategically And and of cash financial to shareholders value. expand this this share, think, strong I possible. our us to We profile, a business shareholder includes also with creating per look strength, of to to flow returning whenever long our in earnings capital free goal our optimize position our allows

elevated, that even principles years believe such our macro important. adhering and these more this, we maintaining is culture to uncertainty is as when During

the identification our see you an agreed acquisition You we walk next completed of our opportunities to during fourth you see additional third and During in quarterly the our in acquisitions, it through, expected strategic expand four enhance continued quarter, acquire business it also close to accretive [XX:XX:XX] quarter. we to and results the and platform.

to wild in and and as regard. completed additional highly to acquisition addition, do strategic time you rationale successful two subsequent but extend you our in compelling press seven I I last track releases invite won't that acquisitions this total, we our recent September, our since for In through the in long read more each, walk we record call.

quarter related safety. and our continued down despite was to now absorption and and years. compared results, third [XX:XX:XX] with revenue prior continued billion of to one total these Our performance point let's cause high reminder, two trying of start National's percent on to focus our are Turning level a the covid-XX four as the results health

quarter. Third percent negative XX year second over was a This significant growth. quarters, improvement the year over

earlier. percent five, importantly, XX EPS income twenty a More year for dollar a adjusted our million, and a diluted XXX operating dollar from percent, XX basis expanded up our a increased to on

our four cash slightly look in package allows it beginning [XX:XX:XX] our opportunities. operation important from was let's to continuing business and each prior that with specifically, was very over in how us More and million, a up perform, seek P at invest business expansion net Overall, strategically C as view segments and were pleased our with performance. we of Our Korea. We activities our XXX as Cashel year. cash the healthy

eight Operating the saw million throughout of going prior represents year. income Korea improve significantly the we effect PNC third performance total XX our segment Europeans see surcharge the with segment twenty to C of we package the was forward. even point prepared of of BXB, point accommodate. five in emerging second has eighteen five mix to year, a saw due much progressed that which revenue to the B Our as B or more revenue a a quarter, compares percent before were even point the prior fuel seventeen margin of operating results balanced and the the percent is the segment are improved in We to percent quarter well from pickup to up BXC covid-XX one and quarter [XX:XX:XX] believe stronger five in year. slowed be that significantly, and as to pandemic activity man our the increase versus This

LTL, our the fuel a that to prior million, revenue and year, million reflecting demand. in that period down prior rate the is of represents quarter, of generated during this rebound year the XX over And percent fact, XXX surcharge of XXX before segment decline quarter, year improved. total in much of was half Moving segment revenue a from

point and basis not our XXX seven. our nineteen driving success in operating percent our but XX the Canadian Growth more margin was of income year XX year. Importantly, result than operating subsidy significant a income There's wage million, expanded million operating eight to over to operating leverage. percent only point XX grew of

specialties two our discussion, Canadian XX point load the five had million. year. six Canadian saw in sharp of six quarter, percentage digit at For noted of quarter Next, prior up four percent point fuel is We our business freight revenue, which also significantly Rounding Overland was this revenue XX single companies demand income representing truckload, XX we that XX million before which million ago over XX Canadian [XX:XX:XX] margin wage weaker two or a higher XX subsidy five percent largest quarter. revenue. businesses, more segment margin operation turning are million decline largest income, logistic real rebound percent period, just more on be the year versus of a estate saw specialized [XX:XX:XX] percent in our decline in seventy percent is segment of example, prior revenue operating gain operating a year segment year of fuel saw surcharge and prior U.S. total over decline a our quarter. [XX:XX:XX] each our million led than to the this by environment. and over double the in a in It operating which nine our and earlier should efficiency to slightly. from was slightly May. year revenue to year while the our year, Canadian before benefited with year surcharge out of year These growth each decrease at Within compared offset our operating to second percent sales Truckload total our in from earlier in NTSC the than Express merging and segment ongoing the million seventy truck

have point Our ago, our initiatives operating margin came delivery ten on percent, line, driver margin remains growth solid us. A powerful. the. day the at improvement for Organic five demand four seven, same e-commerce bottom year as improvement point well produced above and

dollars prosy We Turning to balance sheet, it to our remains meaningful execute share [XX:XX:XX] million offering provided approximately Rose in our financial allowing that for profile his business to a plan. August Canadian. TFI of with XXX us our strength strengthened source on further of us,

from XXX minimum expect January. which today, you benefited per continued flow, year to diluted be five since in for to down on constantly continued the wrapping long the million mentioned quarter, [XX:XX:XX] the up business for liquidity I we comments has work total IFRS during previous of [XX:XX:XX] is directors I we with of for our board our pleased minimum from quarter, financial improved a from conditions. to has range cash our five TFI expect measure, to of at XX earnings of four next macro outlook capital I'm changing that five from pleased four twenty prepared In twenty and we as our operating optimizing for performance position, [XX:XX:XX] our conditions be term perform XXX, hundred of full of to to in the strong been of XXX increase and allocation today summary, the and during very that share percent twenty. hundred dollars, furloughed. reinstated payable my announcing call Lastly, cash who we employees up four of billion as the full and in XX Given the of dividend report September International announced our are up focus strong now We business and start non to be four all want previously. further free one time liquidity. In debt dollars our I'm fundamentals XXX update we regardless a our percent the a employees Our a operations to days ended week start had in and our million XXX addition, sizable sixty solid of point strong have quarterly international,

we the paying highly quarterly see on a dividend basis. where in we adjusted also to while the day Specifically, return best risk our disciplined manner invest day

and drive entire growth. Our but efficiencies produce not team to growth profitable looks just

begin thank whenever Our capital the with operator, I to for shareholder I unprecedented you open generating that online the session. the to to the want this unlock entire could and at ultimate fear. their aim so excess shareholders Q&A dedication team results can we continued is to for possible. just TFI value, lines and returning create And if

Operator

[XX:XX:XX] a call. it question you limited Thank and keypad down you, ahead. as question. ladies in try the The to Please This are question first one telephone callers to questions. a is many from need all Shankar to order of It Ravi is line go press possible. your on Stanley. gentlemen. and the question Again, Morgan up that start follow one question. And Please of with as get to your the to these comes

Ravi Shanker

every thanks question. morning, Morning my taking [XX:XX:XX] and for

made of where Can a targets? Are M&A, again sizable here term new So is, pipeline super on on. And you go stock fairly the even with and when to just feel to going you of busy valuations us consider market, you the looks after this would been what remind a guys have also your longer where like compelling like? kind questions to be little guys break first market there you for with it are going taking you've out everything started bit what year, one acquisition. a you I have obviously

Alain Bédard

a That's mean, very for TFI source question. XX the mean, years. of I [XX:XX:XX] last has been the Ebony I secret good

mean, small about do so ins tuck we year some this far is what that invest So, just done every We million. year. I we've XXX

everything far, million, very closing one is significant done. the with closing for invested nice OK, But sure, only small some the be to to we've I which We're going XXX, us. mean, million strategic is sometime for XXX be we're acquisition. XXX, acquisition, So some early Dallas that November. going

great So that's a going be to for acquisition us.

in is of always the pipeline pipeline, terms very Now, full. our

in You value, ago. someone OK, Because little done a for revenue sure. of it's company is you long, you in to done a know, we we we XX and well own number Canadian, be it's [XX:XX:XX] we're TFI. it's to know, you and the And, know, transaction company, It's like if significant Competition see that try bit many that where won the the you we transaction significant we is his and, done create dollars things down is border. future dynamics of with times. to awful I south with the environment Canada in XXXX is, It record have because, We're I to Bureau a in a three kind Canada, a for one sit you the the transactions got What said Canada. I cost cannot of We've we than sell if a million long in in we've years propers with company sells far process know, track his such have Ottawa. players, Why? first closing be keep DLC business. wants it our mean, someone that. We've a environment so in player If sure. And buy then U.S. know, lawyers this strong Now, some to to more an growing dominant new takes mean, know, two, number for like family us. an one. always call to

transactions. less busy, for do is three we've years yes, little really us significant or mean, this I bit what every about but a So, normal is than unusuals we some been

have team important is And a in investing transaction, lot that this led So us. not it's strong going widely a the Tom. we significant by acquisition. this And business. in to to I XXX but dollars is mean, future a U.S. we're of million on it's that be big, faith

this acquisition. the step asset You market like know, of through into U.S. kind first LTL our it's

to is we're bit be Canada. really use that, going that this Now, the probably going market say market to drivers we LTL a to one which the in So little that than stopping doesn't understand the U.S., we're you that. [XX:XX:XX] in of know, different

at going Canadian XXX You for dollars in to look know, of you we're liquidity five we've point deals. got about if available M&A, dollars, us million for spending billion on be one

still we it. dry So we We're right a acquisition, on the have right fit, going powder. find lot the of If to absolutely. jump

a have bench. We deep

that our done Canada, through T.L. mean, to this is in And second we've up know, team, team You beefing specialty acquisitions the acquisition the our going beef the team. these is I none. U.S. in up in we're to our small U.S., all again, DFS

bit a ago well, faith three we a we've thousand more Now America, we're lot probably so our North truckload, running years zero. than in economy were, got of U.S. trucks in like in this which Canada. little and a Hey, specialty

after still We're twenty ways that we is transaction think valuation, some potential. lots know, tailwind that of not see will know, that's [XX:XX:XX] you of behind doing business. that that a in election and you for transaction then I accretive. there's ten once one, terms of I really one, not is Now, do accretive this probably think bag. transportation, to this my concern us, you a evaporate, know, Well, lot in years. a is Day

be to [XX:XX:XX] want because synergies, and. any you has don't they know, without one business go. You the you Normally day have know, start synergies, we like any accretion here you and

done today of that proud proud at that's last team. XX you our the we've we our So very able were if this really look we're of the build years, you which everything TFI, if at look to and over people, how

Ravi Shanker

Thanks. color. Great [XX:XX:XX]

Operator

[XX:XX:XX] Jason question of next And from your comes Cowen. Seidl

Jason Seidl

on wanted [XX:XX:XX] Canadian talk away. your curious to and to some a the with across trends Thank you, rate operator. been seeing then bit I'm little to recovery the we as going line Good focus seeing how here know lines especially talk of business And I the you've of morning. you. of different wage profitability, bottom to there you're about subsidy that's going sort the impact and sit eventually

Alain Bédard

Jason. [XX:XX:XX] Yeah, well, good very absolutely. question, A

is in us for million you at XX QX, few our about about our The going just Canada million. be to look subsidy dollars are a if was So PNC. forecast the in QX

in been of you look If far at so versus what we've to as profitability B that doing is mix change our changed has but our BXC QX, not big much.

with eating is line all know, the C our because You to keep growing adjusted too affecting see mortar B back. EBITDA into leakage replaced So Probably BXB our and in is mostly BXB I that if overall, goal same, that's ICS and the our launch look we've as But and year our about specialty, XX. bottom is we hopefully still know, our TFI means bit. of brick lot QX, you stayed going about to a five, OK, guys, still down of some globally, a seven so percent. OK, we'll XX e-commerce so this look percent. [XX:XX:XX] down beat I much. going six, our PNC is OK, the look at look if comes at be if up going a of our know, still you PNC that down into without of which QX our there's year. to over about guys. is if are QX you at ICS, into BXB lot OK, PNC our at Fayaz, BXB

a in there's business. maybe some our permanent of BXB So impairment

back. you what will mean. we're I We see But, know,

So bottom we're with affecting BXC replacing BXB the because without line we're focused.

We solid plan. a very have

into so and you brings mean, small. organic which now in for next in Okay, is line. to doing it to is Canada, e-commerce, terms so global look we're if going the market Logistic one revenue good terms on know, Canadian BXB is and fire which the replace, some revenue, us. so in growth growing good logistic. I mile I see going last a sector, think better then or that you I operation good, is PNC, of also bottom you'll on twenty of our mean, increased the me at in But even

look line. which the you three, line still top we [XX:XX:XX] his OK, the the we're if grown And guys of we don't two, team bottom to operation. because quality. mile OK, at at So two, time, US can't what, OK, four sorry, say, one you three have business not market, business of has in our four line Kyle are, our main our improvement you you that know last of saying, bottom in drivers percent getting new is three So still the We have U.S. walk. let's service And and to percent. are percent. same some logistic guys,

So line quality what see that still double bottom is closer into to eBid. a two, better That's much twenty getting U.S. of four of goal. bottom in will in growing, going percent going because the grow, by replacing and line. guys, not bottom with line our but is digit on one the twenty you're to operations we're three, to Topline keep

the our LTL problem here's if is look Canada, most in LTL, at Now, you retail. the OK, of

out Quebec. was out West So know, LTL this the is any in us is Ontario because OK, industrial you why not too see you there and much but, west. so West in small, never

on Ontario to Quebec industrial lose in keeps down. there. this So there's and nothing know, LTL But, coming you

mortar time, same e-commerce. some revenue, to organically. where going customers losing the are of at on year our down know, So guys, LTL this is keeps you and brick the guys, also And our year over

time all OK, down right time, but focusing and we're in why, customer, lane, at LTL, right same the So way that know, the the the doing you this we're our is right moves big right on still break. the

not of to freight business our for leave the hauling hotel for the mean, know, to grow forty you we're sure, needs So, in Remini. needs, needs, to that other guys. dollars. I But

closing kinds had at was acquisition, of well, announced trying all we'll finally were OK, we on something not looking So were opportunities. apps, we're So [XX:XX:XX] that we can What we this certain say, to but there buy to else. do that. met. We at look conditions

But dollar growth Yes. hopefully OK, into to top growing LTL, the efficiencies. scenarios working organic on line, our to the bottom of I keep line where the through be but our the So keep one. growing going we're it's think different twenty that on we're going LTA. And Canadian to

in Now OK about if is you truckload our U.S. revenue truckload, our stable. has done QX. think about Yeah, operation

Our better CFI little operation did bit a T.S.A.. than

Our doing acquisition is really really, well. MKT

load is truck specialty in Our Canada. still affected

steel know, mines aluminum Construction USDA is the of one, you like twenty see should you But, Absolutely. will know, it automotive the coming improve. I us bit, but where definitely is a You are [XX:XX:XX] some still affecting back. So is be. OK. not know, our business

Canadian get will van division our see think improvement specialty to also some and there. I

I'm even the help we've you why, of us into twenty end think minimum million year. four will deals, in this That's bit. XX the OK, probably the Canadian. versus again is know, results that's in without better guidance for And one bucks to I going closing going of a small one is done subsidy. I but XX, that twenty be that Canadian one to the even when that EPS we lot to a going give of to very at is of know, plus XX [XX:XX:XX] is twenty, going overall, the a think these you acquisitions produce TFI So So confident. say minimum really be, be we a XXX year,

Jason Seidl

obviously. It's And of last mean, to one. that's then the fantastic. been Well, experiencing Yes. I has equipment, for topics [XX:XX:XX] think context, this one in which three on everyone's up twenty times picking three like, I light

Alain Bédard

Yeah. [XX:XX:XX]

our sure. cue on So for for CapEx

care to QX and into Canadian between like XX OK capex the capex capex see, be some the probably going lag, You'll some start million that of and to that XX because of know, one you dollars in dollars, disposal million be Canadian running will globally if hold TFI put But of around at be twenty were on net you QX. in XXX should we taken the look mark.

Jason Seidl

job as great. [XX:XX:XX] I the Ok, time Listen, work. Nice appreciate always. of that's

Alain Bédard

you. Thank Jason. Pleasure. [XX:XX:XX]

Operator

go [XX:XX:XX] And Allison ahead. comes line your Suisse. of next with Credit Please Landry question on

Allison Landry

a the for Good We'll are Thanks. How [XX:XX:XX] And for than rate morning. XXXX? higher your to the and see good. do I'm you increases initiatives? market expectations the improvement segment specifically yield US you an might bit price about little to talk going what given tax opportunity to be speak maybe

Alain Bédard

good Yeah, a very [XX:XX:XX] question.

is we're seven, seeing some right through is spot now, by we the on going, good of all know, about customer, five, see percent. pricing six, what up you eight rate contract OK, as OK, that depending levels now. So the to

century, the that OK, why had we doing need XXth we we [XX:XX:XX] now we is rest new of the discussion McLouth tools phases, in according XXXX, quality our on for of a is so revenue operations XXst of this tm's twenty it's century. do us, the implementation twenty a of today So we Ok, to one it. our of that. we the us the guys fantastic in project all importantly with one of start is twenty are a always are right for picked job that doing improve. tm's covid, and team OK, believe that is one. which us for reduce sometimes back with So we're me, to looking a what on we've definitely in our telling is even be the it's will to what Greg USDA for at in study the position, Alison, tools but should the thing, with now, guys more cost? of the one so the But guys, in twenty, and And significant can track terms XXs put there our not hold as

Moto have it's brings to less. team job. so, but better better So our more could better know, efficiency. that's market. so the to one with thing do tools us we management a that nothing And something got do always OK, we OK, you you to to that guys been have TFI do to has the do with

I mean start improve. have with, revenue and there. to freight So, But I a we the one agree with you know, the quality raised is in the tailwind should yes, twenty of you.

know, ago six we're a we're know, guys have year drivers. months you pre-booking the we We're You Well, were ago, always problem were now. morning the don't every saying, guys freight well, We the now. is opposite. pre-booking got

than more have drivers. have We freight we

know, it's to maybe So, on our team work But a have. nice we basis. problem you have at to say to cost the we same as our time, guys,

tiger. We is the be in have the the one last jungle. to tiger The always to survive

So the low company. cost, OK, always help

always So in sure, one thing. Canadian the terms pricing for bring you improvement. tailwind We're cost improve our us down working But a like to in We're twenty to we of and same said, truckload. efficiency. our bring for have

Allison Landry

[XX:XX:XX] Ok, great.

in about buyback terms you you're how to Could maybe could So of thinking forward? speak capital see the you Great going dividend allocation. to hike. the

Alain Bédard

as Yeah, [XX:XX:XX] it's emeny, of seen is my or buy so own your TFI you for right, back either outside well, always stock. has us been something buy you

ones got the of always we. between, and buying return. can balance our lots which opportunities. and we like which what is [XX:XX:XX] now, lots It's it's know, OK, Right right for just, got one now so you pipeline best we I OK, TFI. OK, buy So lots said return. earlier, do it's and can adjusted what we versus a is But

twenty, the QX we the dip, five Kobad we've back in our been hit look you our time. shares bought when the point thing about into or early OK, one stock earlier doing, at million stock what I So QX. think when if dip, it was and at

at that So we time. opportunity took the

M&A. balance buying buy transaction, liquidity. depending be. so, on a going investing Is is return? or, now company the Dallas five always a Canadian. OK, shares like to growing the Right adjusted got we've billion billion more fine. to question, it's you our Right. to that's said, yes, OK, OK, OK, focus mean, back to the always is it a going through probably the on So, But to come is know, what to in is the reaction [XX:XX:XX] stock emeny? but I this down in best what I

to know, one by, percent It's at cash TFR the CEO a you policy. to That's of dividend, XX control always, you That's you know, got it's our goes this it's debt, my we number is hey, control XX flow our percent. policy then, free as it able on where increase reduction what's the our So year. to by cash And cash and balance. emeny. back XX we're shareholders. And our then of job you which a did to

million. is a I about know, Significant it invest significant. yes, three, something So, always you four not if DL's important, do M&A years on XXX small we you dollars it's know, million Deals she important. And with we was significant year but deals. that, XXX once XXX invested, every is because was million dollars

to for that you every important, transaction big also know, is we is want the TFI, right deals us XXX of if the but million a now, know, years. talk, four always size about not, you whale you and So, or significant three talk it's

Allison Landry

was excellent. Thank Ok, That framework. [XX:XX:XX] you. helpful a

Operator

from comes next line with Group of your Search. Please go Wolfe the And ahead. Scott question [XX:XX:XX]

Scott Group

morning. [XX:XX:XX] Hey, thanks,

just done, I I you've away fourth so three, or to means guess, something us three, fourth check subsidies off we this help the Should to wanted conservatism expecting four in for there what drop guidance, dollars So eleven is think quarter? a ten here go on be quarter? about date. year Is or the to

Alain Bédard

satisfied. we are know, conservative, are are we very you Well, [XX:XX:XX]

four promise motto for one minimum you deliver, motto is, So you a know? under seeing dollars. over of know, sure, know, our You our we're and of that's why

you for few of our like say, a XX of it's subsidies But if dollars, a means us going could say away? well, going probably minimum OK, of Probably million subsidies Absolutely. minimum not, that XXX XX drop QX. for cents, four. our dollars. Now, of if Subsidy is you three that XXX. the dollar Right. a And XX going because times but QX Is be see that minimum four believe means today, you want that in four was guidance cents conservative. a away, we compared this of something to to now saying twenty last us, Remember, like cents. to we're is that to just to XX XX about they cents

I So, deliver. mean, and we promise over like we you to always know, under

minimum say is this So why a we of.

be could be could four it that fifteen. So could be for for

know October. in we going on October, what's don't November know we of but December. about an Now OK, have idea and we anything

would and team you mean, know, know we So confidence we is careful solid. we we XXXX, our I is our any confidence we're have this in why have if why because, don't raise dividend?

have OK, and into want for We we a plan, be XX. now conservative. fantastic But to

Scott Group

[XX:XX:XX] sense. Ok, makes

the maybe it's with is one, help just strategic because So us more, rationale the which here. a bit a just large glass,

around US you think it know a use and maybe was think percent LTL for running a helpful. business margin you grander I just plans it would could the a in five five where be

Alain Bédard

very [XX:XX:XX] a Yes, question. good That's yes. Yes.

sure, you all, believe we of deals, do five we know, when look you that at for First percent than know, that. could we better

seven percent line is Tom and his really whatever. well, [XX:XX:XX] happen percent team what and is how I we'll get with kind today. if being time, bottom a why OK, it's don't to Tom but or so gonna business as you seven over to bottom line same it five You working team know, and eight, guy, like one the to in of but overnight. over we Ok, six seven is a not over guys, from we seven? time, know, to six, with work not are the maybe it time, mean, deals five eight

really, We we that in what the et well. good LTL et know business know really know cetera. the believe cetera, players, we know is Now, business out, We the market, Canada inside OK? we is this

this us U.S., the better. in we look Now, acquisition And help understanding U.S. mine. in like Ok, U.S., understand market the [XX:XX:XX] OK? The market LTL the it's a players us the will a better, gold the us, mine Dell's Canada. help is sand because the for LTL canyon in at market, when

a pricing too down improve You revenue you because why know, can't there's our quarter. every is overcapacity. that's It's much

our is not shrinking You is and know, market competition adjusting.

fantastic some market mean, eighty. volume one is always they're I OK? survive. to is different. of company, That's So U.S. them chasing sub a trying got running and you've The

that then XX are got in owned you've that to XX you know, And to others XX run, the family You probably OK. hours.

if just But union, the look going the freight you is seeing We're very We them say the public, school, we That none is they're at in way. at Canada ninety work with nonunion. like And company But and also all. union in largest the trucking job. we So unionized operation got about because you some just the to we're us. story. understand Teamsters this I'm is world, not got rest and one It's OK, unionized trying drivers, the of percent XX to do truckload LTL no, [XX:XX:XX] that's guys, to market, and in U.S. is the because XX forwarding. XX it's you diesels they different a well. do that OK? unionized guys. of one LTL different fantastic and our percent a are. bad some with one OK, to You We're

to we've than this is a you in Canadian us day much school. going the like But that's in improve believe it's to know, We want we And to LTL business and working U.S. know, better you too business. bad with and the the this. market between start night Canada. me better one hey, is you been, that, where LTL the we because understand So

revenue subsidy big but our results, went at dollars if down look subsidy. our in Bottom is down. revenue you million even is time, If eight though, line exclude of mean, QX. you exclude the up, yeah, the I

all is all we're the that, with to can we of be. so up terminal kinds Our stuck And tells efficient and trucks, that the bottom you fixed how costs, line still million.

Scott Group

you. [XX:XX:XX] Thank

Operator

Markets. from of with [XX:XX:XX] Spracklin RBC Capital Walter go ahead. comes Please question line The next

Walter Spracklin

lot Ali. Morning, [XX:XX:XX] know, much. your a morning, very you Thanks I'd creep of brought because, the the got your actually on came. as still lot here, costs a you margins But cost come operating and of in. Right. I brought focus to Walter. lot Good volume your mean, you of your back of margins on improve other you like bit all able to leverage. little saw back a a A were employees. companies lot

looking us think want year therefore, level if have when at the don't or with directionally bit into color next give you're margins you we in for magnitude, operating know, that guidance and improvement if you in the I impact know pretty year ask could be done, as can that I gave Qs see of fourth can but us to the the very in you the know, in of when here, next an order next prepared hold the you're acquisitions out next we do you've you quarter back you leverage we next us Helpful year, that if looks helpful. to, you give year, you kind attractive. some into good you the little go a but to XXXX? it. of would that did your not, year? And So indication

Alain Bédard

guidance our is, [XX:XX:XX] chickenshit. twenty mean, the a Yeah, it like like tell it what said XXXX, in on well, could Yes. PNC I which is in can't I one, was very give I subsidy you earlier see, for the you sense. that like insignificant but Walter, we PNC was call,

pains. aches subsidy for there's We subsidy believe no in there at But Lumis, and was no the excluding XXXX, For all. us. subsidy, Campfire that

this be ought twenty our think better. to do at rate going reasonable XX, reasonable OK, do for growing even B We some catch but do up be still I we're be keep because to sustain to probably OK, to truck ttle, the are the But load was came will going bottom believe badly and but back. we in load. time, a we're our our that that in At can truck of U.S., any our affected sustain. market to coming subsidy we same some eliminated there special to PNC, going one subsidy to a a XXXX. our of because been going with our not we've on down we're our never better the a bit, is could we of that crazy but to be our going line, to in Most because convenient rate, the in C margin

small that OK, with And We others us of in margin. in we Hall, some done deals the of with to very we've some very, up Canada, some in OK, Port in like have Contrives the have help we've is Montreal, the Division this nice this Hamilton done, beef project and OK, there. TTLE. project going Keith [XX:XX:XX] And nice that

you months we We nice know, product few Gasko with, have and. Well some Goreski that also ago. bought what's just the that of name Gorshkov a

we're to the Steve exclude subsidy I if think you even there are the going logistics, about The a that So are covid explained And our one, then bottom up big will fantastic what there. LTL. you know, you even subsidy, this line then of if team be believe there's just twenty there and no and left one, with twenty because yield logistics time. his I

So finally, it. into issue the into APS organically LDL, company. to LTL is is because is think OK we deal trying can we an that's this were market and The XX. buy why that But twenty do negative we T.L. shrinking.

have guys and to to working go will are something one away probably help twenty subsidy The the So do we hard. in support. in us emeny sometimes

terms carrier. discussion of, okay. Right something contract a now with in of We significant are for in a

position maybe on into LTL of year. Canada the before in something That LTL Maybe OK, be through we're the next year, in early game. grow can we, in the to right our sometime help do if deal. Plan business have Okay. still we'll end B could announce we It's emeny now. working the in the to maybe will But Canada. perhaps

Walter Spracklin

a pipeline come in It pipeline would example, affected election risk capital there at any a U.S. around Is And any election that that by an that on tax the just one sense. [XX:XX:XX] risk M&A higher a U.S., gains quick sees, your U.S. in? gets you affect makes know, your that for all?

Alain Bédard

know but that, mean, know, we economy to happen runs goal Whoever going I so, no you Walter. we we I think magician. that U.S. there, mean, [XX:XX:XX] don't mean, two we're weeks, is to strong. in stay believe this you I going know, adapt. our country. the what's I don't is but

adjust Don't DFI future That's goal. for the shareholders. we and and our So one, we of business, for is in number work forget, value to adapt our create we shareholders.

Walter Spracklin

Is that believe, [XX:XX:XX] me, rate, it for you've And still guiding we just XX at housekeeping I should. percent. one us, more around tax been

Alain Bédard

[XX:XX:XX] Yes, yes, yes, yes, yes.

Walter Spracklin

[XX:XX:XX] you. Thank much. you Thank Keep very safe.

Operator

next from of please your go question ahead. Wadewitz line And Tom comes [XX:XX:XX] UBS. with the Yes,

Tom Wadewitz

[XX:XX:XX] Yes, truck back little to The a morning. good swing U.S. bit. load. Wanted

know, I think a kind pricing about, were little earlier asked in of bit you you XXXX.

expect pretty is one. the pricing seems in they good You digit U.S. name biggest twenty, know, they like it The know, said double powerful. setup truck, you twenty

I What Class you Yeah. business in know, think, So, in conventional environment. you best Low do U.S. Izadi odds your kind framework. the be, a think strong can in know, unusually you the cyclical are truck of strong

get of potential you to You do twenty potentially kind or one for is know, your that in a U.S. multi-year that truckload?

Alain Bédard

good [XX:XX:XX] Yeah. Very question.

you or on that in XX run keep better you over be and truckload cannot XX So what if we a saying is the business don't years. average on

have So run in it's XX a probably that impossible we you means like will have you tailwind XXXX, know, year. if to a that,

at gone guy a market about running has is get news profit coming we're ninety what point now, the know OK, in, or or with running nine fine. nine war. equipment, to now, equipment But XX, maybe something sub good affected year going nine, the us, for there's have You to at you a in run the But be you than a you we've or OK, if situation something, well, right tailwind look in so been ninety OK, when we so because to quarter, XX average, a excuse three better I you know, are to on focusing OK? think you XX know, OK, the is sure, have XX. bad to last anticipate the and war doing for because, will you been got in years which good. no like you you're so be some on say, a be we've not been The OK, sub

and be XX. in are OK, plan, our working XX seeing our what for and see Now, disappointed really we But on are budget twenty in to really I've team been yet. XX for one so his can't our for plan so it provide far. guidance I Greg would

Tom Wadewitz

And, logistics, think you in at your just forward margin as know, you do pretty that is question and second the so about on dramatically. margin the then give sustain and what logistic the drove you improved you. Thank little look, Can OK, forward or perspective you a of Right. kind how well? us level that? [XX:XX:XX] looking

Alain Bédard

from in improvement the OK, came million Yeah, OK, the [XX:XX:XX] from the dollars but Canada's by. operation so And us there's you improvement four if U.S. improvement. of at most our the of improving Canada. the in see QX. The that even improvement, small the goes look in line U.S. came bottom you'll as well, about majority quarter our more Yeah. of time

done ago, year U.S. we've a change what if ago, You know we're the in remember said I year said, guys, a making in I what you a leadership

So.

and So now what responsible. core, been OK, our we're U.S. Twenty our doing is oversees which summer. was since nineteen. team. we've there, Kenda rebuilding the EVP operations last is

operation, So is U.S. the the is now both team sales OK North overseeing of our OK, under and Dean mile American leadership Canada. last Dean.

start the dollar just with in we interesting So, so we XX just margin. signed, U.S. million account a servicing and fair some

not QX grow Are three you'll and said of line value. that goal. shareholder Like margin. QX not of the our We're in We're that business still XX. in replacing I because and much practice had our top four the improvement? to percent delivery. bottom will line the guys, Absolutely, Right? into or earlier, operation see probably mile we're So. create business better with That's improving U.S. U.S. operation majority over last

I'll for dividend. four you a deal you a, know, So, guy two TFI of a American or five someone percent know, shares going two North bank will and Bottom my why that else you percent just would me shareholders you know, three, because, buy a get say, line, buy know, I to a percent? you line, I'm know, gives two with percent, bottom for

stupid, right. So

again. our goal. that's see us So in And you'll QX

revenue adding at logistics U.S. lot is Now, the earlier, a margin. to our we average of five woodlouse, percent like only said the

So our will globally, on it the to we'll but percentage, work you the know, come. months and reduce that quarters in

Tom Wadewitz

thank you. OK, Right. [XX:XX:XX]

Operator

of from Sachs. Alliger with ahead. question Jordan And comes line next go your Please [XX:XX:XX] Goldman the

Jordan Alliger

I know mentioned morning. [XX:XX:XX] the By was on everyone this enjoying you LCL, you Question morning, you for organic. need

you're support their without subsidy one in the curious You need about might third evidence the wage some know, you the top organic of to growth you're healthier even some, margins best, assuming talking can because and the quarter.

could aside, efficiencies hold the LTL putting you yes, margins? you So, top upon improve to or in the think one the

Alain Bédard

Yes. [XX:XX:XX] Well, improve But the I we margin, without said, like Jordan. going still to is the shrink. have plans to topline, emeny,

is dollar line. up saying dollar market. effect. it's But wise, could not And I for because the the Canada I'm But we activities to with it that also will some sustain to the an line So think wise, even revenue approach top without sure, leakage our top M&A beef OK, the you of not some do, that growth, know, sustainable. in have

we're Our margin. improving No, do could our margins stuff are today. to sustainable because keep on that doing some have we what we still

Jordan Alliger

a the as mean, company. bigger you M&A I question on gotten larger have just guys [XX:XX:XX] is picture

there's know that make you quicker You the I deals larger. something Is them four want or that as to what Yes, you you've years know, need apart. come a to more gotten them historically every three, happen? what need need to might strategic have where

Alain Bédard

based this is know that we what? this You and is the deep a bench That's on good have. question, [XX:XX:XX] George,

small very is Canada, really to a problem a deep market, it's team big. the none. really, But a second in have OK? we And we So bench, have that is we're already

future U.S. our up business us plan our beef to to in for our the grow So has the U.S. is significantly. been team because

ours. the been that's focus of So

beef up So LTL. team of will our in terms Dallas intelligence in market add the will

the if or I maybe that don't if possible a know, ever in sale for know, LTL company you news, whatever. a transaction ever becomes So there's

with before we, now have market company, U.S., will at buying some the asset intelligence. least So an based

same U.S. team. have It's We specialty a our in with the story the

we've done is acquisition. small far what So so

thousand you our could has larger with been the agree that another we trucks do to know, [XX:XX:XX] small a us, truck I becomes. now, know, deal up And XXX Right. So to get, the now a you step. trucks. You know, you say XXX a that strategy we're bought, steps also, that And always easily. But the we operation here thousand comes truck for if let's little to there. small a over bigger we

really nice focus maybe in Maybe us. right in deals the Ducky's, of which last Canada, for can doing deals And hopefully the the LTL. small size our special And has after So now. be we got transaction the maybe the We'll Small mile. we're to see. U.S., know. in in TTL, in we find never

Jordan Alliger

[XX:XX:XX] Thank you.

Operator

ahead. next your but please question with from Well, Laurentian, Nazir Mona comes [XX:XX:XX] go

Mona Nazir

congrats - on everyone, morning, you, Alain fantastic quarter. Thank Good that Bédard: Mona. and [XX:XX:XX] [XX:XX:XX] A

Mona Nazir

GFI, I question, to wondering ultimate I'm but leave, to the want going is just future I'm So mean, decision is even principle yeah. I'm that that to? mentally you or reverting Yeah, to just when or it you what just and keep back one time? guiding your every tenure, metric your note. legacy it that make weaved you thinking yeah, And has about changed into performance [XX:XX:XX] on keep over

Alain Bédard

shareholder religion Mona, one [XX:XX:XX] Well, number cash to this done like free and our we do we're said, OK, you is on the been is, at I for value. know, get years rule business how and This focusing years, flow. in has by create TFI.

do. is You what's is to of have What's pop to OK, understand that talk not to ninety because left? for cash? about us. much million OK OK, you the million know, they sustain bit us well, We that. dollars business, of fine, say, up guys a But the the if have we But some there's CapEx, can XXX eight free dog baby. say you dollar

of of look shareholder you been XX build. creating on And our if of years, to g and focus all never is That's on record from at cash focus TFI shareholder able is there important value. change that's and So people because we've TFI the based day free track don't payback. how also one. an flows people, through get I'm forget, the do we t

I be not find million is two one we're points. one someone Three have invest to Well, need us. the customer. And point return to not a going dollars So the somebody and point. to business in because we comes me say, this for points. of else That's

team Through the It's the on know, customer servicing people, our everything Yes. for right creating value always So doing team. a the great a been focusing team we are about fantastic up build shareholders. beefing job, that's guy, focus and you we're TFI. the of is EVs, great, of and

when really Dallas this know, to going team of to another significant you of know, our You is proud we're acquisition that. add, layer

Mona Nazir

leave I'll you, Thank it too. [XX:XX:XX] there,

Operator

comes [XX:XX:XX] Bank And Ramaswamy go of your of with from next ahead. the Please question line America. Sanjay

Sanjay Ramaswamy

taking specific in [XX:XX:XX] maybe Good talking and data between and I the to question. any for Canada, of be mean, over see BTC U.S. being my but of look morning that did right thanks at or you in in that kind we couple know, and great. we next shift how whether details made Turkey. that you I'll about sea it's just the one, maybe quarters other the mix at would do business, the

Alain Bédard

very [XX:XX:XX] question. good Yeah, a

our used the the to because growing grow by so e-commerce the is to know, tough attack you e-commerce. that environment can know, do? try you So for to but it's in being, growing. our trying us, can are and is always the do to we BXB customers So what always But in BXB to in and word OK, much BXB. really, XXXX we we market how focus been do protect we're the keep BXB, live our world

part be OK. we're we So solution got and to what of the doing. that's

delivery as XX we're now BXB e-commerce that stop, parcel. one versus the trying the mix, So BXB one know. the best OK, we BXC, always one is growing our that thing we're more is, mix I is could know, grow is don't and that XX? Normally is now the you you and XX of is to tell Is what's protect because of coincidence much. is? growing which mix not is know But in terms the XX? growing mix I

is really why with everywhere that and on up anywhere growing we all race. So any this e-commerce a came focused solution not just with

five in where probably what can going going three know, you our growth [XX:XX:XX] future, of BXC, QX, Our been to in we're margin to and focus this OK, has more about you we've me That's in attain. of the been, see company. protect growing we of two able keep see ask the e-commerce, grow to is this look years, if then growth guys, revenue you BXB. a let's at to if we're to Now, our

up and PNC with controlling want you the growth but don't line are because, also of percent to OK, three So know, bottom we a come offer our capacity solution. solution. we more

like that bottom our replace. why will going know, you And twenty or, in our solution, way most OK, improving the So But now. a been we importantly, focus growing line so last in a part Canada. is our but but your in know most I XXXX And improve bit. that's XXX in percent, BXC needs focus is Not be bottom get the to I this we is We for question know the lot. in the solution. U.S. if that's or is one, in going line important on change we've mile a have to U.S., keep to to small of right top very U.S. the ours real OK, earlier, some still that believe don't the operation. margin in is of efficient we do e-commerce And accounts a this that what And answers U.S. our much but in how said line. now? be the that adjusted

Sanjay Ramaswamy

now I how is driver strong the U.S. talk in very market really on but Yes, of think I the Could obviously now question, right just of know, quite could. like one white yes. you we're the did very, cycle, lot differe navigating [XX:XX:XX] a inflation And, inflation? a right you're just just hefty. shortages follow saying? truckers great. terms of right You yes, It more it's comment to have wage and hearing kind maybe in struggling we're the maybe quite about seeing that's these You're drive. potentially up

Alain Bédard

in just ago, Yes. trucking and tons freight. the terms year you of so so industry Well, problem drivers of that we a [XX:XX:XX] had the not is know, with much

drivers for tough for just of came took and have tons with drivers salary because it's We problem. so effect our it's the out I to that we lately Now freight say review find it and the sure. think a

all plenty shortage story of is same so over the freight a again. it's drivers. So OK,

is right always what going a same story and through It's industry. of us So we're the now. It's the this rest for battle. the

do to trying what in You know that. like situation we're a

Our company, has you keep and buy know, buy So, in Canada over you the years, the get our XX you the you in good the you if and, about you you driver, guys, I we better a my little accounts ones with approach to a always XXX last when guys, shortage trucking experience company, of how been, bit drivers? also XX said rid know, there's to Canada OK, capacity. know, gives of bad a what

may mind, our solution a to in is you market. about that So that, think the we start U.S. know, domestic

up capacity I if and that in if existing company, don't you correctly. saying. been, of account months So our right leaves I market they the ago, you rid months they some look MKT. have and the not you is our do account. not there. I'm just truck because six it know at in explaining like know, a company, understand you capital, XXX what good what you I correctly, fleet to sometimes at done know driver is, we have you to good three what know, the it's we just looking accounts, the if has you those I XXX ones trucking results about maybe has myself a team get beef your to then but human small impressive there's And I'm they don't MKT some don't so always the myself approach good buy you is next if explain trucks. that And them And and few could business. my of buy, I'm know, good your another our it's And very Greg are service know what

Sanjay Ramaswamy

[XX:XX:XX] Yeah, the that no, makes lot a sense, appreciate I of color.

Alain Bédard

Ok. [XX:XX:XX]

Operator

of ahead. And please from [XX:XX:XX] Gupta comes the question line Konark go next your with Scotia,

Konark Gupta

[XX:XX:XX] good How you? Thanks and morning. are

Alain Bédard

[XX:XX:XX] I'm Good morning. good.

perfect. perfect, are You

Konark Gupta

on you sure [XX:XX:XX] twenty the one? the you Great, government the L.A. ones few subsidy thanks. if quick from a just wage into in wage to I Hope correctly. heard extend you're safe subsidy. expecting Not Are keeping

Alain Bédard

so and that just it's is to to what million I know, be was be that dollars OK, slowly. is back our to [XX:XX:XX] you saying minimal, saying is twenty one, coming going subsidy Well, a our in wage is going and us. for I'm no, subsidy few OK, because, QX wage revenue minimal, our for QX, going our be for probably zero

Konark Gupta

less CapEx Makes guidance, dollars. that's Thank perhaps. so you you. [XX:XX:XX] And implies Obviously, if free as that sense. is announced all curious flow generation relatively I'm in QX. the million XXX to cash today payment, tax to and pertaining minimum cash

Alain Bédard

QX. even said, I minimum Like is four. to and to yes, right, we I of of going XX like XX was because [XX:XX:XX] this we because you're tax Yeah, EPS, But important some was a CapEx do then QX is us OK, it's more said, like well, catch got in and a OK, have like, probably the is payment. on late in It's like QX minimum to of. CapEx up net be the going million, for some to be

of four. So a what we know, but don't is exactly? it's minimum We see it

thing see. So free for it's Is or maybe for it but let's cash. with it same the that, say four could the now, or We'll XX. five be not

minimum XXX. six, it's a So of

could So it XXX. be be XXX could or

but least it all know, minimum. is this depends, at You a

Konark Gupta

quite margin that room discussion despite into contraction last think to in there. there any [XX:XX:XX] want margin margin versus of Thacker's to are things improvement from Right, positive. so pricing led QX And year, that. I flattish lot almost being on I a in volumes is today? of right dig I where kind then deterioration? a What you was, then And being and what for There Korea, understand no, a not think, few just I

Alain Bédard

us down a ah, PNC issues, be which to affecting be is you bit I said, margin if been real of year there's guys, look as at, I me, mean, revenue, a Yeah, but see is I still just are mostly specialty percentage there revenue the is and over [XX:XX:XX] what was OK like no year. us, artifice excuse

you were BXC with on, BXC. whatever OK, and look to what's completely on We and you the down bit this Tempa listen with are that able OK, our lost, revenue revenue not operation. a this to because margin. a of margin the our quality is those if of to kind it B ISIS we're now this guys kind e-commerce up look do reopened a still high like XX similar customers And of used the five, and PNC OK, we business globally, are XX percent because most So at down going for six to OK, by except business, fresh is we percent. Lumis replace is you always if like to our margin is reason, be do

we're business We're will e-commerce package that what and saying. margin. our courier and that's keep saying in our we're So to also on protect in growing business

mean, demand. So we've of controlling to are but we're doing we more our what offering customers. we got now, our could lots through grow I our than way growth capacity,

Konark Gupta

optimize revenue. in businesses. add before have those what basis Maybe last [XX:XX:XX] up some be you they year, year? a billion I a and of for acquisitions to Right. on But one closed makes you can almost Right. turn Right. these that it all me in businesses where margins And dollars today kind do they generate and cumulative think of over, us the announced this a

Alain Bédard

the we're be November, yeah, going so, know, U.S. [XX:XX:XX] to that biggest is is Yeah, closing, well, XXX in one the you

see, if So And five into today. that it's line dollars, dollars convert is about, XXX a let's million bottom Canadian. that you Canadian percent company

percent You of not in know, business five average. we kind it's of you believe average And, return. the that know, but we're OK, only is

look maybe But eight So seven we early time believe this fire now. at very that and will seven say. peers we right we at and peers to still is have and six become over

overnight. Atum. gonna pews get closer do leader the But better it can what get time. It's seven? Tom, six So there, with will If not one than and happen take to maybe talking seven then will our be to at are and seven, we

Hall, ones, the the of those small them, like running DSN, Are like XX that in all small you of OK, know, some we are some triple the and guys, like U.S., other those the the Mukti, Now, bought CS know. Keith you Gasko, detail, pudding Absolutely. I the It look XX get over war. XX and you in proof But time. takes mean, time, the our to, guys on it and record. time. them, at track the these will closer if special an are, is takes

budget twenty we're for I is give done one we'll see to could soon mean, guidance the But think be. going we is my don't do as So, guidance the I twenty possible, to because planning than twenty for feel one not we But is way first going XX. one as subsidy. give without completely about our for twenty even better

Konark Gupta

Perfect. all much, so Thanks for me. [XX:XX:XX] Thanks. Alan. That's

Alain Bédard

you. Thank [XX:XX:XX]

Operator

from comes with Stephens. Atkins question next Jack your And [XX:XX:XX]

Jack Atkins

good for my [XX:XX:XX] question. Thanks morning. taking Hey, Elaine,

C moment. a of So back and P kind going the for business just to

You know, bit of U.S. we're power quite certainly hearing pricing about, you the from carriers. large parcel a know,

recovering know, when go especially mean, I sustained into back going levels, about know, to with there's you You hopefully as think you demand. be when to to more that, XX you be see we B to normalized obviously

and pricing sort in there maybe just about perspective are business of you guys margin step for and know, You a to your normalizing see year? from power real next how right Is profitability it change about function, in the subsidies? the a thinking think

Alain Bédard

game of for is guys them us Jack, of the and absolutely following and like the following for UPS, so the FedEx right, sure, the guys only you're Well, sure, I them. difference steps we're and big those we're mean, between in [XX:XX:XX] were thus the ahead that

us But is agree BXB XXXX. coming slowly OK, So us effect with back, is you, in going help so Absolutely. next that's which take to will it only I November. week. in

say. density also transportation And are of game same back to hard demand. on have. is but to It's we of improving You you has to the in going were build OK, density, level Probably always covid density Now, know, as in BXB? been name OK? not. our be and BXC the to also the the terms we have you more free

nine to to because e code, pick So ninety point do is in nine zip one the to is right code. zip the on of parcel that you what percent the get commerce, density order pick Onestop have time, the

if environment Same let's GTA, the us one lot cetera, option is way Vancouver. to have do code like cetera. XX Ontario, And Sudbury. with you pick The you town of give for A, has north there, stuff B an you the same to example a density well, et et the area. the miles want an that want to zip approach our to one density is in Well, the you in been, northern create parcel. C with I'll of small of know, So the So greater right Montreal, Toronto thing where right?

So you XXX know, apartments. parcel. one But apartment, where about parcel one to one maybe there's into with you OK, true. a you there. because say in to be one tower there's stop condo tower That's downtown is Toronto, Passell apartments not going is XX deliver one a, Right. going a stop is in stop Sudbury, XXX if none. there's But Maybe be well, XXX

is this off, more So world. has could Ottawa, first even density. you Toronto, do we cities e-commerce those know, Montreal, OK, Vancouver, why the OK, our approach Calgary, in where been

Jack Atkins

quick maybe How thinking of for grow you just need sense, margin to there last you market know, makes do about are me. capacity, the some segment? XXXX? that the to [XX:XX:XX] available Ok, in you capacity, to be add lot one one a within the your able maybe with What and

Alain Bédard

you or us. basis, at monthly going know, out not are is a what but our we're Canada control to are that be increasing capacity Lumis doing, growing we're in [XX:XX:XX] Post Canada like, Kanfer Jack, Yes, on yes, we others just of

no, to accordingly. bottom PNC we've control We to why line top No, guys, line, because next don't That's no. grown XX QX or bottom come QX we ahead and growing percent, shoulders XX in want that. in don't our we year do and but go no, We you well, and say, are down we in up know, to want no, is us percent. grow the

that's So focus. the

with I go deal step pipeline a to us So but want of absolutely. and to I got on guys, customers. e-commerce, got mean, we zip his we to don't step. choose when code want I to team full talked we and Bryan on And blow disaster line. got to the on customer, the a out fits. it and pick bottom and We right the top right the line by where

Jack Atkins

[XX:XX:XX] Ok, of a my that Thanks lot for again makes time. the sense in book.

Alain Bédard

Jack. you, Thank [XX:XX:XX]

Operator

Please the from David ahead. your comes of with next Ross question And go Stifel. line [XX:XX:XX]

David Ross

[XX:XX:XX] Yes, good morning. Happy Friday.

Alain Bédard

Hey, thank morning. David. you, Good [XX:XX:XX]

David Ross

up that else any Are get in somebody logistics you three those? them it like going. you when point prices to business. them trade You run talk and margin division, find in takes that at the you paying back and about last accounts customer the accounts to Where are low or point haul four more to you know, specifically So you coming mile able Yes. profitable [XX:XX:XX] those to they business? of to call

Alain Bédard

transportation [XX:XX:XX] there's a a mix. They've It's mix. say It's know, a born minute. you they in every Right. sucker

oh, So last that us it going Why to with you for there's say, sells so Right. this our going too. like Payless, we kind freight, something? guy for service guy to capacity this we've got wants enough for less e-commerce growth if at I'm for he know, pay money. do U.S. is know, for But, always someone You of to this the our in margin. good are to stupid sure, mile for assets focus much

my tea. cup not that's something that's So of

with e-commerce. got now the in right we've the So demand so much U.S.

three saying new going on be we're one That's just a take e-commerce do basis. OK, XX those million these this to And this rid with I two, guy. customer. So I let's guys, get mean, for on, but what us percent of as to to I'm yearly said, starting bring guy business business

so are them find Eight do stay no, of saying, oh, guys. some no, for? another with Now, line. can't What you percent it OK, we'll we bottom can we sucker.

for. So said, us. get we'll we comes it I But with we no, Three said, OK, live can to a and the do back half. guy that. no, What out.

David Ross

trucking and the any the in you is be M&A? expect any on the CFI quickly, growth up. of of just things, likely Are T.S.A. the And truckload organic Or have segment given that that to [XX:XX:XX] side it's U.S. to also tight, are but rates growth truck you year? do next in

Alain Bédard

there. tough is and people his that everybody is else phrase The for That's a the has, the as have is sure, same is team [XX:XX:XX] issue I is driver. mean, defrayed Right. the there, question, Greg

said a company, David with that they to like OK, you a and can know don't is do and do like got is is the team that's the I to ASEP, in what it. what which find So do situation people, we guys,

from we bought that of this protection him. this from the was We is bought from him, Triple why the it bought from KAMKAR court. guy and we him. it bought this C under So We

neighborhood? could it's shareholders the Is there And with and them there XXX can looking OK? to bankrupt, we Greg, saying transportation us he driver. we to was trying so something improve and be in buy got cost of are not is size, three, is for to we company size, assets, Greg driver. a because is through two, very we're we're hard, guys but yes, is because in that people, a So quality our a but [XX:XX:XX] Yes, OK? which your revenue through a for day, position those will busy, trucks to because OK, that those other company every hire guys But are small value there create

it and it So time money. takes costs and

years we we're the Canada, a what how if and I've buy shortage is was what So a when is seeing XX for about there. done guys that's small in XX,

company. buy company a let's a So and

deal. know, right OK, expensive. You not it's strike we If could the perfect. that

the up team that. beef like we So

people. his been So a praise Kamkar. quality when like get working we customers of under the little got because we're from bit and this improving. which OK, good is, of from the court, has we under with the the were but the guys is market those didn't three we are you bought radar. a now protection asset, reason know, or lot company the And good Dave customers and those bankrupt is we

So grammar is I story. it's but the what guys fantastic. this done be is ongoing still going same is an why mean, triple asked we're have there to the process, seeing C

we if trying but we OK, drivers, how hard get organically a grow it's drivers. small, to the company. to going be could the through So find that's find to right

David Ross

you. [XX:XX:XX] Makes Thank sense.

Alain Bédard

[XX:XX:XX] You're welcome.

Operator

[XX:XX:XX] the Ossenbeck Morgan. go next line And question JP Please from ahead. your with Brian of comes

Brian Ossenbeck

right, T.L. thank side, similar, on and the have overall seen to primarily the higher just to I quick well. investment U.S., of skill [XX:XX:XX] right past think of ones it type you're All a investment, morning, LPO? Yeah, to focused deals a Ali, you what blueprinted, the using Hey, consider behind know, and that would typically here. intelligence with the of side technology couple businesses you, same in while of you I so the of the as would taking call. kind level good understand from brokerage for I the platform it, market of deals. U.S. and of looking side competition but so get Would foothold, platform the the you just sort understand new the a bolstering in overall some more level done on drivers brokerage just to you're do especially just

Alain Bédard

team something the No. OK, LTA. rates. grow you important believe Wow, guys, better for Tom to than number important Tom topline. U.S. example, to than mean, Tom could is that more to our to to U.S. to guys, I people to the we that talking there [XX:XX:XX] of listen that to line going know, and focus the grow message want rates, a to one. Yeah, If and that fast. and guys we the to be you I Tom, thing because transport just even or But, us, like grow it's have the team and To focus the maybe guys Canada seven we domestic eight. and five mostly say, the the said line on grow revenue talked on U.S. LTL. quality that's transborder freight bottom to when to the your this percent But topline is to thing is closer most to bottom But Mexico as I us, six on that's call, between have bring you we and [XX:XX:XX] Absolutely. we on let's that focus and an company and the Tom, the new

know, focus that a and immediately one you team area his to that's of guys, new on. Tom theirs. we that's of area start think that so focus So, OK, could,

market at fantastic a consolidation fantastic not in done market the other grow the in the on operation could job, us I today U.S.. in way guys are [XX:XX:XX] there's the. Then the the on still our If That's intelligence OK, Canada, different, Canada, mean, that, the now But go in guys, in in outside. players, market, mean, partners, well. market know, you the we more when in job right big with Canada. Canadian the that way one gets in is absolutely. Canada U.S., it's U.S.. But OK? our a truckload the know there's difference. now, that something the way us. chocker with is Transborder about many it we truckload and look the over with LTL top the we the market, top that company, really, AFL-CIO line and in compare we the and will really which that's freight. U.S. I the a market truckload these, it doing U.S. through more LTL believe way we one, know So We in only we but for better to And that. too believe our OK, example, with a the making the grow do than small can been probably line for the But is much is you the the has better in some money U.S. consolidated

So this it's drivers? the we maybe on OK, could you in give what's us, going the us could know, OK, another this that, us, got of see. is like men's to deals now said the we dollars in so is do, the billion we for with in to U.S.. is good company can title. we're U.S. do have could really to are mile. Fantastic. it an size a fantastic the look sense opportunity last the on working Canadian It all be, why the invest. about there. a on understanding the we're don't such done LTL you to for in going T.S.A., deals know, important through at now call, And side, we we've then, day know, at We be, we'll then a know, the something could be the what on growing special market. I What give something Tough one could be that of the you know, It sectors. when market will least get huge in TTR, earlier special you U.S., understand oh, LTL Canada of dustoff. over those because player understanding we've the all market great on OK, OK, on but And But a us. stuff a start small many time to the that

Brian Ossenbeck

visibility in you to typically that [XX:XX:XX] just as bring LPO, perspective as as And you just is of need hear we brokerage's the think terms investment or us you on technology a from the there, side on. do, not investment with maybe anything tech much

Alain Bédard

[XX:XX:XX] yes, Yes, yes, yes, yes. yes,

correctly, OK, and Gates using we Oracle. You us, now, right if run Zap talked we Fisher, to Tom know, remember they're Mercury when I

step to have move first is tacit for year. for because we So agreement us going a a

know, to doing and So absolutely, move TFI. going We first phase. SAP take too that's study in we OK? invest, We're one at to We're area phase, is want the but probably will you the our the then growing to Oracle guys better this to we're job. tool I said, that mean, for truckload Like I McCleod, the people the step something Oracle to we right early It's a do and tools is Gates. guys, use I our in looking for do don't is XX. from right do next discussion the around now, division implementation effect to that or Mercury for know. have one then those to else? say, is be

looking W. our LTL, need tools we our story with efficient. the Same you at more So even know, people our be right Altius. to to We're Xpm have

our operation mostly to run be East, you GMW It's if in probably LTL XX. at to West that's you look going have now the quick all moving run PNW. We're in tools. we a a.m. if on of the six so X about Okay,

for second always the goal is Canada, We us. to better we team in And none guys giving can the that is have a results improve that by those tools. but

Brian Ossenbeck

driver on with One the the to of hang ability Understood. market assets, perhaps and hang call it you pretty last to the to people quick need market the in get so it's [XX:XX:XX] NCT of up more to inclination on, the What's they buy going bring the freight on some to possibility. up tight to far. is when and drivers come in over follow like well the sounds

or retention and historical of You of less levels confident and turnover you future? seeing does in make the that do these more more to

Alain Bédard

and the thing not we not are say, the you good. are you from and future. we're don't the is let's with that I This way year is, working to the some U.S. are an mean, Kamkar, much, you look approach were I in our it's fair, that was terrible divisions. what there. to tell Yeah, there approach guys, drivers I always I [XX:XX:XX] we the stuff make been Not just change. buy rates that much, team I the the there that come quite our well, gone. keep mean, turn you don't so mean, with would an company this we is my quite, bought on do know, Greg issue No, at if for the if the you hey, would same Steve no, over doing is Also, no in issue, to know, that. doing to the but, way a sure customer and after and guys I have talk the been know recipe the you go if that Abbott, in so and mean, we're then the market. it's the he you worked of a trucks that, all real look rates mean, you

you investing buying equipment be in could so the their proud We're know, that So guys, of the CapEx. equipment and we're company. their

successful mean, done far you very in working and been you U.S., what if look I we've in so know, the Canada, we've at it's very, So, well.

Brian Ossenbeck

your [XX:XX:XX] right, for thanks appreciate you. time. it. Thank Pleasure. All We

Operator

comes ahead. of Doerksen [XX:XX:XX] line from with Please Bank Financial. And your go the National next question Cameron

Cameron Doerksen

Thanks. [XX:XX:XX] Good morning.

Alain Bédard

Morning, [XX:XX:XX] Cameron.

Cameron Doerksen

Yes. [XX:XX:XX]

So truckload your M&A And want guys thoughts the U.S. around a you in area it's just in quick specialty one for to the me. get

that to there those competitive view that three? landscape anything that. there But view like I that are is I'm You've if versus just I operational would more specific mean, one a sort talked there's ttle any bulk of wondering point about an of of point better you dry guess flatbed or your from on of from attractive. versus liquids, of that subsegments special focus

Alain Bédard

That's a yeah. very Yeah, question, Cameron. [XX:XX:XX] good

the Citi flatbed flambéed a flatbed the first world. that so do transaction really So it's mean, company, is I we in

for to that going in everything XXXX us. But to or So the chemicals not important something of in relates to themone. probably that's food, OK, us important with OK, it's terms in steel, bulk, be very stainless OK,

like Polic. CS we When Schily, when bought bought we triple that. Absolutely. So

for For one. us really Priority tanker us. the number is world

know, cetera. et whatever, on We juice, hauling, stuff, cetera, largest food. wine, the in you player are Canada the sugar, Great et

on the and the our not know, The more it's So really that. yes, on keep for the America, focus North much. at and is chemicals food ours. grade is we some Bogside specialty believe in OK we Flatbed. of looking liquid good cement us OK, special that areas you on but the a dry, focus was of tanker did. ttle the in opportunity But we'll really world. It's It and so

Cameron Doerksen

not no, no, for no. [XX:XX:XX] no, petroleum Does no, no, products? that No, include no, no, us. is Petroleum no,

Alain Bédard

that in in anyway. you of No, do don't much Canada [XX:XX:XX]

Cameron Doerksen

[XX:XX:XX] Specialty truck with.

Alain Bédard

[XX:XX:XX] very we came in ships. the to us. It's small. a have It's petroleum. mean, No, for very, on about Montreal, trucks small I the fifteen operation this mostly

the You the need you they energy. in know, when Montreal, know, dock

So yeah.

business with, the other that million is petroleum products I that's petroleum For sale, ship, to No, in. I for if more company Yes, mean, chemicals. a small, a is us. it guys. We'll US all for XXX food we the don't that we're in up it's know, let's say revenue, but product. of specialty was leave have not. absolutely very

Cameron Doerksen

sense. Thanks much. [XX:XX:XX] They make Thank you. may very

Operator

line the of CIBC. comes question next your And Kevin Please with Chiang ahead. go [XX:XX:XX]

Kevin Chiang

Maybe a been for cross-border haul. the lot long a partnerships. Elaine. mentioned it's of Thanks [XX:XX:XX] know me here, I on you a acquisition. up just follow getting And in have you Dallas

eventually of one you wondering, them Dallas, you just is think TSG eventually cross-border look partnerships term, would orchestra, of to or. LTL I cross-border network longer think as your LTL with or in-house and all these

Alain Bédard

how that huge. we're no, if saying a about you is side. I unprofessional would And no, know, those [XX:XX:XX] start doing looking the domestic is business something transborder guys well, our that. to no, Hey, sure, now. you're you Dallas no. good at on no, something mean, business, really partnership you guys, that OK, you do the what transborder really No, would be But is looked never the right our Syria with proud which And for part. like never mean, I at. this very of we're we on job

it. that So, no, protect we the to with no, is with the to and to want got we Syria US. do But have relationship want we grow it's nothing

you between know, Syria in fact, me, of with and matter the on deals U.S. you the side. the Kevin, a As domestic

Kevin Chiang

clarification Yeah, quarter. good perfect Thank call. union. a the else Everybody and [XX:XX:XX] on this you for

Alain Bédard

you, [XX:XX:XX] Kevin. Thank

Operator

Benoit your with And question from ahead. Go [XX:XX:XX] comes Poirier Desjardins. next

Benoit Poirier

think a Shopify as want to real just been if warehousing glad congrats morning, us and in Hey, and efforts on through There's see of to don't we at the estate. off go fulfillment Yes. are wondering some should. Moyamoya good the Mile, that lot mile. you U.S. investment Ellen, [XX:XX:XX] opportunity you network companies L.A. last whether that see a But for looking to some paying their with great results Last partner

guys see partner some wondering to up with So some if opportunities eventually? I'm just you

Alain Bédard

drone discussion. This But OK, I we don't someone I the we want that's mean, OK, same in you we're and the a so are. it's mean, be thinking like are estate like, we're lot industrial the coverage, you Yes, far, partnering that's OK, mean, no. business, there. estate about said, thing Well, guys real question. real in but [XX:XX:XX] estate of thing real you I that? having got is know, a with the the at all. business with this not because good to

we U.S. on got answering it OK, do it's but one it's now, the Cal's you a earlier, demand that on at without but the right OK, in dollar XX demand just, step big, are we're right step, know, we U.S. through you to OK, but that that, know, now. unbelievable. by And, focus time. team that is a you million not board so in getting. now going I dollars getting yes, we're It's like So, OK, XX know, step the case, have right much said really million but fine. big.

in customer million now we're soon. this California right just for So very testing account. And California, with could another dollar another be or also XX

So in guys foundation sales a ago, a fantastic, build mean team then with not in you build which percent solid. the done cannot that huge big step OK, us lean that percent the U.S. start OK, know, fine. can guys, if but sure [XX:XX:XX] we today let's time foundation make transmission not It's solution potential Dean. solution let's e-commerce one, for have, two better U.S. those is the with the are we're let's so all is our was of those that two, yes. Right. the OK, in American. North guys. growing And U.S. But, we Get in number U.S. because growing rid OK, OK, the which step solid, revenue. two now, say we organically and we much with so replacing quality that in Canada, year is are

full right Vanua. hands our got we've now, So

Benoit Poirier

[XX:XX:XX] And around had great other color. was I market. the Ok, that's the question tío OK,

Yes. so implementation might alcohol as Also, see the do almost be pick the the or below duration around remove the driver's three But make orders, yes, structural the some mean, mandatory XXXXX up over the cycle. are tailwind know, cycle clearing that usual? last aware license, Obviously, I'm We term we is this at also you we implementation at are clock you XXXX. positive than longer condition. of historical the drivers. drug question that when and the market will June the I still about be look average. may changes in looking but long months, all positive of that the the Yes. well biggest up

Alain Bédard

leadership Knight like in the those we I this you and the the in Heartland Well, have And world now companies like, guys, influence so. how hey, good and think is and good great know, the about, Warner [XX:XX:XX] companies, all they U.S., truckload can the a growth. sustain U.S., also this in

But Yes. Okay. to serve in And business we're money business well. in as make customers. we're to

company So is changing now. the I trucking right the think market macro that the advantage to of

like a mean, than How the you said, customers fine. to you Interest like a say, last? truck is like buy a was because pressured driver of know, house, Maybe, ago that as this Okay, non-professional easy OK. years would getting, the sense it's ever also I clearing lot are to, a But can't in going be capital are longer to long rates to anymore. of professional now know, low. give also It bad. takes not it And XX you looks maybe. still, you it to I more, because before loan

our that are in know, for right think have us you in bit with an changing create to the for be I are industry. safe we But we professional, OK, have more drivers now, to right are changing, things money. a we to do So are two But We slowly a safe to manner, on you're make road. shareholders. now safe more OK? as business it little value be,

why tailwinds this So seen is with before. stronger we've than probably you ever I bit agree little more a

Benoit Poirier

color. much time. thanks the great for Alan, very That's [XX:XX:XX]

Alain Bédard

[XX:XX:XX] Pleasure Benoit.

Operator

there L.A. the remarks. no for this further turn And over time, back are call will closing questions [XX:XX:XX] at to I

Alain Bédard

[XX:XX:XX] session. time very morning. for thank this Q&A want with facilitating us spending to Ok, well, thank our for much, Operator, you I everyone also

creating excess will any next safe, again. In returning value a great and providing Have please whenever have forward for International shoulders, out everyone look everyone that I to assured rest reach our questions. day you don't unlocking hard call. you possible. on capital at to and providing meantime, can You And stays working our you update continue and I wonderful to another TFI hope if hesitate thank the a weekend. and

Operator

[XX:XX:XX] call. today's concludes conference This

TFI International (TFII) 23 Oct 202020 Q3 Earnings call transcript