TFI International (TFII) 28 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

Alain Bedard	Chairman and President and Chief Executive Officer
Jordan Alliger	Goldman Sachs
Ravi Shanker	Morgan Stanley
Brian Ossenbeck	JPMorgan
Konark Gupta	Scotiabank
Tom Wadewitz	UBS
Jack Atkins	Stephens
Scott Group	Wolfe Research
Walter Spracklin	RBC Capital Markets
Jason Seidl	Cowen
Ken Hoexter	Bank of America
Bascome Majors	Susquehanna
James Monaghan	Wells Fargo
Benoit Porier	Desjardins
Ari Rosa	Credit Suisse
Tim James	TD Securities

Call transcript

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to TFI International’s Third Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. to and limited follow-up. be will one a question Callers so and can as Again, question follow-up, possible. that callers that's one many a we as get to

is everyone For subject materially. the call could to will on be being statements that uncertainties TFI Also, queue Please the that in cause advised number sir. contain Bedard, entering differ ahead, call would and this I of nature I call of forward-looking turn Executive Please that and President and Chief Alain recorded be conference remind October results now that XXXX. at a to to XX, time. will Chairman this that Friday, and go International. are Officer instruction conference for like to will over actual provided the risks

Alain Bedard

reporting Well, our market thank with through We and September we'll to of XX. call. welcome volatility. ever ongoing on most you after and the relative New Stock yesterday stability be operator, despite strong Investor so Exchange this pleased close In weeks, first our York host everyone morning's to November right much, a third at we're quarter our results quarter released macro the two segment, Day for again

are expand RSVP we'll in to International and yesterday's create principle’s release. on our event, that to that press During plan on Instructions additional operating the drives how TFI shareholder value.

variable usual, match profitability the to as we but that to our As a cycles is regardless operating of it result, result growth to adjusting today's to capacity of I'll direct demand. principal suffice keep stick than our brief our quickly such a cost continued more say, changing remarks strong economic and philosophies

from ongoing self have TFI Investor performance the that leaders. talented skill hear tireless we performance of many our at chance within our delivering dedication and our help the International. on opportunities Day, our control. reflects addition, you'll importantly, of And everyone Most our coming In at reflect to are entirely are the

over For year, EPS. XX% we a a charge of income non-recurring reported prior the diluted the net in produced adjusted quarter despite a adjusted increase we've third XXXX, XX% increase in and

also returns free allocation, free giving were billion, prior $X.XX total view cash up place quarterly strategically emphasis and on was exclude if year our basis, we as X% XX% the consolidated million capital of on a we and four cash Also we our produce our capital, generated in We revenue the flow gains intelligent all important, flow non-recurring income. $XXX in four that a the quarterly in strong robust operating quarter. logistics, over on up business healthy segment All invested produced yes. charge

associated segment Our revenue decline before XX% partially e-commerce volume this X% mainly represents was P&C related revenue surcharge with our to a surcharge. slower fuel But in We before activity. by offset in business. strength total BXB fuel of saw our

more our our income control with up than increase sharp points density, changing cost X,XXX our volumes. produced year-over-year to to due to strong execution, in Importantly, network operating our quickly XX.X%. and adjusting XX% operating to million We $XX a basis focus margin on

in a up invested point. on very return basis Our XX.X%, came XXX impressive capital an strong

fuel quarter. fuel which revenue year before prior was of of our revenue the XX% surcharge produced versus $XXX to surcharge, we X% million is Turning segmented down before LTL, that

XX.X% and reflecting our up business, a point. decline XXX income margin Within on XXX fuel of strong in surcharge operating revenue operating invested LTL Canadian XX.X%, of a million, marking basis XXX that our XX.X%, points was of slight a operation before at just saw our very However, $XXX X%, ratio up capital was point our year. notable basis and was improved. important, Also improvement a over basis past return produced the

view top of just UPS which return XX.X% before to XX.X%, just capital pressure, acquisition as business LTL U.S. million a was lighter fuel but solid clearly an experiencing line with while OR was $XXX entering surcharges created last freight. our flat, invested with due our with of on to Revenue Turning volumes. our above we just the adjusted this second business, year year

However, our and pricing improve. to Freight up has meaningful held room TForce

Moving segment right along Truckload revenue before segment XX% to our of surcharge. is our fuel

up months quarter. control was Our fuel quarter the surcharge and Truckload, business temperature sold the before past two year over third Mexican revenue CFI into million, $XXX the just we as logistics X% about

basis was operating XXX up the Truckload $XX to Similarly, surged margin a still past income XX% up XX.X% million, was Our which operating of points. robust year. our

at a let's by the what sub strength drove So closer look take segment.

focus improvement truckload more the First off year our year given surcharge was have in working OR, were industrial improved pleased that profitability, now our TL. sale of period and to return at truckload points we're improvement our XX% with from of that on by part in specialized invested And remains CFI an mind, to in marks previously XX adjusted well the of much earlier specialized capital strong diversity XX.X% as fuel million on our before very included with generated end X.X%. over and and at our the XX.X% our mentioned prior than which favor. a market to just operation us performed growing U.S. following truckload of X% specialized includes quarterly our that dedicated exposure revenue $XXX With

up, surcharge we leverage strong end a implementing while were the case, relatively share, In density and network our our example diversity. Canadian our advantage. based this Next conventional an TFI's market and to control in million, benefiting strong jump working truckload, exposure from is to of was cost revenue specialized $XX this of markets. fuel Canadian before saw XX% to market we our to Similar able truckload,

and sharply at OR a by percentage return up As a was at on invested earlier. XX.X% XX.X% adjusted result, capital our our improved XX points XX..X% from from year XX.X%

while saw earlier. operating a fuel of income to year-over-year X% in one to fuel also million, $XX.X non-recurring We year $XX on logistics of charge revenue of surcharge. reflecting $XXX So to segment our moving million, compares it before XX% $XX represents segment, growth the our million, million before surcharge

that allowing dividend, invest our our returning announce reflecting both Board future shareholders XX%, X.X% for was was business. as the of pleased on balance X.X%, to share repurchase compared our to invested let's liquidity, to international which and return on strength compared margin our for pillar Directors our to us probably to and year summary TFI's XX.X%, that operating a raised growth capital and through strength by today while of segment, sheet Our of quarterly With which to our move logistics of our substantial XX.X%. core the capital a prior I'm remain

EBITDA million. mentioned, the nearly in flow strategic we've X.X as end debt tuck-in generated At funded and XX%, cash I was just we've adjusted acquisitions plus during September, debt to subseacan we During the to the of repurchased for stood approximately free less quarter, allocation, our capital of of completed times than of quarter-end. a under fixed up X $XXX quarter, at $XXX rate. shares ratio four terms Also, million fifth million, our all nearly

we'll long-term And free economic share including initiatives per you our open that million. forecast our everyone of per $XXX Finally, of for right. in enhance environment. vision for $X earnings shareholder listening. of full-year outlook we're please Investor our maintaining operator, Q&A. strategic could our flow At expand cash of the Day, our a coming now outlook, Thank with our our control and on many value All are within to if the line own regardless terms

Operator

with Jordan proceed with questions. your Instructions] Our line Goldman Sachs. the Please of [Operator first Alliger from question comes

Jordan Alliger

factor Yes. Hi, for good LTL give long and two more mentioned, morning. Maybe you that of culling what will be some about? give the side, demand. Thank you Curious of tonnage primary magnitude the of front, you you. sense to the on if on color how also tonnage? a And around sort those the think is quarter freight could can softening culling aspects maybe active little

Alain Bedard

Jordan. good, Very

really rid So when okay? is let's I were up cost done make of have let's mean, I a able okay, right sense, but certain But done fit, listen. pause, to we if UPS us, lot a a complete, XX% of that get sense XX% we that and we this there because freight on have we shipment do -- at still was we okay, above a reached our did right? okay? level, far rid -- pause you freight that, our didn't some it's not the level but of make Freight, Because So we about We're a mean, look of most shipments to got that for not the in not then of that, the we've a to we volume today, what cost, because work certain pause, so job. to per we day fit, not great but that done. XX,XXX XX,XXX don't now, that we're said, any was bought didn't any have

you trend a we the But also as of done to really lot controlling terms, a costs. acquired. freight at we've didn't great adjusting What If we've fit, to rates since but to look freight, market. done last our a job the rid job good in XX-months, that haven't get of the where was over customers that and is

the that are TFI tools right? the labor this our very we labor, to one costs guys the these of bought So largest companies. within than have that all we have company, is tools of cost When manage different

cost into So is ‘XX, able their that ’XX have and that be provide system, end UPS LTL be now system financial over we point, able companies TForce to away be TFI tools reality, of from, we'll within costs implement tools we'll our the adjust Freight volume. that. these to okay, that? system, able to Because our of Oracle to as all the at the TFI Oracle in moving to Oracle of we're except at to managers Why

what TForce done volume, we the do look what XX%. XX%, of Canadian of other see the in division, we I Freight, you this about what truckload. mean, you XX% so our LTL, -- has that okay between If and normally at -- it P&C, our difference our at we XX% our team do TFI drop

is there lost we any made volume XX% some didn't maybe So Organically, that really sense. that that some also volume is make sense. now

a of the bit. you at look stability think to in where per our now, Okay? shrink cost slowed high. us, starts volume the importantly a of has shipment to addressing, start for us unless if kind terms little to some but too going, we're that's to bit down is way more, see really market labor that we'll But And the okay, I market more

guys to do ask right they Now have miracles, because can't I the tool. the don't

yes, two Because hook OR, surely why up be bring That's XX could we the manage it today. don't costs. will could guys the to to that tools said manage tools than the to company they why? months. start get as an okay, day cost financial to to a what XX us the as this costs, and So a the in XX okay XX those bring them and and to better way right we it's OR, But a tools but by to now from game, to this years, then we ‘XX, to these doing take we slowly, will soon one, ‘XX do we'll have system, in manage XX three the between to business TFI acting providing we're company

question Now now in until, we see kind answer your to why okay, that's -- some for is Jordan stability we terms into move of of ’XX. also

that away have to with the ‘XX much we we money seller, keep that UPS in the to transition that thing TFI network has -- spend to also agreement is the at from that these been able TSA very so burdened, the we mind network. -- with into have paying other the financial move same okay, to be okay, The we're costs, have time,

it long So question. what it's it to answer a is But your is.

Jordan Alliger

Thank you. Great. comments. I appreciate the

Operator

you. Thank

Our come Please Shanker of from with the Morgan next questions. Ravi proceed line with your Stanley. question

Ravi Shanker

Thanks. Alain. Good morning,

Alain Bedard

Ravi. Good morning,

Ravi Shanker

out downturn the sounds going to Very like? would we of like your peers from expectations sit thoughts love and you is weeks. Day you but a what thunder much all last kind Analyst to of looking ‘XX, bit, kind forward time your think here do to little lowered in to event, spoke. Not you it since have as maybe steal the I your mean, the the be a looking of couple

So, like what we out right as here? sit does there now look it

Alain Bedard

rest good you about mean, pretty feel What if that. mean, October, ‘XX anticipate we've that still QX. according the about definitely And slow we of seen situation adjust the exclude condition. We far is I proof down business, Freight, for management and our in feel We so to react TForce adjust we that have act in then will the I probably tools I have good really we and to our to QX. will to the things special the think we and which and in market us, have pudding. is the

look If TFI. of there over TForce is job terms financial guys information, problem toolbox our But the in these at they a last you of their fantastic of whereby in is Freight with the a the get tools XX-years are situation special limited that terms guys have. is very fast doing how the information.

rectify during we ‘XX. So, will of that course the

I forget, we we like Ravi, So, we're us, mean, a don't -- us, And ready. storm.

small in always is. to and doing our will there. for There four going And probably in balance We're much probably do go to cash strong. that three because so We've QX in whatever very two opens to through We're in us. another it ‘XX, a is going did here ‘XX. nice QX. been is Okay? we five or or a do sheet storm M&A have of and going QX be of free tuck-ins slowdown QX, four or five We flow. And

you slowdown. also we invest. feel you a some what QX ‘XX, news, anticipate right? bad a to in in is you our good TFI old could Maybe saying a that about we So we the of buy one and far good going And know, So news larger a so there's we've seen. be kind pretty sell because,

the TForce TFI everything Freight, market as the from there, our them tools now with night, January as transition volume okay, that provide to shipment. point, working per of and adapt adjust to to ‘XX. If cost, our From are guys condition. managers labor faster UPS could support team to and our shipment, of faster, the you a we'll and per exclude be change volume adjust where do this day in position move okay, to Freight, cost TForce cost Oracle that X fantastic

that lot. The we that previous to our everything owner help do We CapEx, up trucks, so also thing So wanted do didn't because other QX to Freight okay is terms catch in able didn't were any We do get us a okay, far. TForce in didn't CapEx. at of the right? not

there that's a Now, shipment improvement as that the even about is we so XXX new in have now in is his Fleet started bit, as we about more, maintenance because new little okay, and because see we month bit age we to little move have for our VP our our priority, new a improve just we that the the that about because a far, same. and our MPG And the costs trucks per equipment same fleet. fast ago sure only a cost on is okay, the can,

Ravi Shanker

great That's follow-up. quick color. as it. Got Maybe a

you just going or cash and and capital defensive You buy that the as go can mentioned downturn? thinking, call companies into for asset that you, balance as asset the there an in top a of your product the a that asset you're the is thinking about whether offensive strategic out

Alain Bedard

best yes. that's is we do Right Yes, X M&A Ravi, now, we So why buy shares million bought the TFI, TFI. of could right?

on aggressive depending shares. Now for maybe on X QX creating QX been M&A sure, condition, on okay, in or for the very million buyback. aggressive And and to be be will always about of depending we But just on very -- We our we'll QX the our has X of about NCIB depending just million market in shares renewed source ‘XX market, shareholders. and condition. value in market

we'll small is tuck-ins. nice this not to going the so do So stop,

a now, to company, truckload, we and okay. And XX what M&A truckload. XX right? lot our our a fantastic of QX in day, a okay? within company see last year a you done turn at buy fantastic doesn't have Brookshaw because job. we when OR in it And look this team his did Oh, Just OR So an is

doing team his and Steve M&A. with keep we'll So some

well, Our team four U.S., ago. bought the in Unity we California as three, also team our in Canadian about logistics months

in stop be is larger Maybe a done will transaction at because that that. fair doing significant in not help us TFI's market deal, that to interesting. going for So M&A we're but a could ’XX, XX-years, a blood. We've price, condition

Ravi Shanker

Very see weeks. of Thanks, couple good. Alain a in

Alain Bedard

Ravi. you, Thank Yes.

Operator

Thank you.

the is Brian with Our questions. coming your with question Ossenbeck JPMorgan. from next of proceed line Please

Brian Ossenbeck

morning, Thanks good for Alain. Hey, question. taking the

the have win So Freight. peers, to broader just that tonnage how it decline going at a little quarter or them. the back Did one a was TForce to drop? throughout there talk the trended a Could dynamic? large a with about for also us and could of significant trends There's maybe contract throughout you the your competitive announced was quarter, do you who anything context give and that of volume steady least the

Alain Bedard

June that soften on be thing if volume we up if of things one week reduce the our great QX, in in What But the up picking I okay? then is their smart. nice say, in team pick come same of up while try picking on sense cost just TForce by cost that you to being divided pickup, two, two to that, is to your we're to instead In instead doing. one per sales side a And right? you the have and No. shipment, of we a Because Eileen, July trying shipment. features we're Freight QX, bit already with with has do at existing see some service customers Brian, meeting you we Freight at look at had a leader would that to August September, know, and there -- last was starts TForce our up sales with chat I okay? and, there little the grow

grow like XX This don't We freight two, Focus Focus focus Eileen center. center. around our of service team. number away guys, try very deliver his to from our number miles one. miles is that's do service is expensive. service to Or the XX from really pickups at business So our and center.

So refocus guys this. on

So change if so on kind in maniacs, okay, is same, of, approach TFI a at major we LTL, the the is focus, focus because are on P&C, That because that's our Canadian Freight, of us. you not okay. this the profitable the why TFI was TForce as look density

that's customer service make got it We're if not can and we in a it. volume from a service do of price to third-party with going away the money our XXX We on lots miles reasonable a is Okay? area, that center ourselves. maybe that's could

So was this blood is of not something the TForce that Freight. in

on is the this So sales side.

Okay. to This they're is as time the do really at trying same we're what unloading. okay

Okay, we did a that. lot of

Okay, year. Freight does first that not fit. the

going freight we an in terminal, miles not right? So to ‘XX. us. not example, We So deliver is QX to be for XXX as someone That's have from us, probably that four a of for is bit into same and we've That's the softening. away what the little anticipate seen that's else.

the and after, TFI not financial them why this to of walk system, but it's the urgent provide moving we that information the system been that a old So the can month we day. is away company, so financial from same

So what's could that going adjust. and guys? on, they So act

Brian Ossenbeck

on comments tonnage any that affected competitive trends Has at dynamic? all? the And your

Alain Bedard

far. Not so

U.S. on like any competition quality don't seeing pressure adjusting is shipment. that far see with the our like peers, revenue, far don't okay? of what the that. But -- okay. in CH so So We aggressive guys we're very and revenue is XPL, see the rates that, with I in per like seeing So the industry

per about at If shipment, bit little a you our was it up X% ex-fuel year-over-year. revenue look

with reducing got to Brian, us good. do got don't is that by market, this us. say to do It's right we're the doing us, I give Freight the TForce tools. so is at far, it's it's the to mean, within with something guys I going it. they nothing next tools. but, when so we really, now, It's costs, to war the And less. Right So, have our by have this we more the years two win

Brian Ossenbeck

on cost follow-up one quick the just side. And

or to With into is perspective the do how TForce information and from wanted a to a curious of there here labor really anything you this? at what obviously, would on have the tools be vast mentioned, Freight Just you're majority it and play based tools? looking would limiting union see, is because that you workforce flexibility

Alain Bedard

today, Brian, don't now, we the the be we if smart, we to have acting could smart. It's do have No. we tools are just right okay, wonder. contract that

don't if cannot okay us. you driver, account service blame a an cost can't his you miles you manage right? You if work service the that's your It's XXX blame away shipment So from properly, the center. on

the to employees. do in for nothing be It's we okay. to our with job. We're And have is with going we with our have contract them. Contract working do got the have to with We employees sure, carrier, do and in bit Look UPS, but of little flexibility, Union the are right? Canada. at king at look the they terms it's us a Teamsters, what than different I they are non-union we Teamsters. mean,

Our And union. P&C the we look results have. is XX% at

is it's It's not job the us. the union, us. -- no, So no, it's

will do We do TForce and we we not. the to It's not a at can can question, we have job. Freight the or job

do XXXX. will it's are job, just right They there have But wants of tools. the the that do have they tools we to XXXX, don't in and team We the better.

So change we'll that.

Brian Ossenbeck

the for thanks Alain, time. right. All

Alain Bedard

Pleasure.

Operator

you. Thank

of Gupta with Konark questions. your Our proceed question line the comes Scotiabank. Please with from next

Konark Gupta

morning, Alain. Good How are you?

Alain Bedard

you, good. am are Konark? I How

Konark Gupta

days Thanks here. forward you Good, or few and seeing thanks. weeks look to

best understand, third wanted which doesn't had to Your truckload your sticky in you of Just that quarter? thoughts on margin continue of not? those think, still to as it's sure to one the good Truckload? change have in P&C know, segments Package here, and a ever, are very and how just well I I'm Courier if margin, it's like operating no sticky kind margins quite just difference so like Alain, trend not that the month two XX% see improved CFI But wanting makes your or lot. XX%,

Alain Bedard

Yes.

think that P&C the not side, I really On it's a question.

TFI we is at our at think, would that, you P&C say I on XX% And that the over if okay, I've call that today's by talk OE P&C the on terminals today's said we believe have, have have average think now. sticky. TForce when you know, right? look four XX-years they margin P&L mean, between that exceptional. to can technology, ago, that the it's with tool because at they at we run five I don't And didn't it that They tools, that Freight That with I I on state, we I -- tools accomplish guys average, in years about by QX have. is have.

our help these management really of that to kinds team deliver So results.

So if average. you average, let's But XX what be that. the say, think Alain, XX% could is over you can do XX%, is, next that cannot XX% the say I I okay, say for I should the five, -- years, on to between

now average, we But XX% on have division. maybe I we could like condition. troughed have okay, P&C at at We have depending what think So deliver on peak, could XX%. with XX%, that will we that market is

be matching a okay this now haul guys do going even to unification head Canadian future. management better the okay, able there, In division. that guys that for terms truckload the to we of more have okay, are Canada, team, of us tools, action, our are truckload, in our with tool doing that's a okay, a tricky our have know, getting management we our see more that backhaul. our Whereby, in the of little you'll operation because we are right with And job bit lot is one under really better you also of with again, our now, because the

-- years, our I Canadian XX%, Now do would return average say this truckload if most in and OE Alain, I could XX% XX think on hard you over can a XX% we do is of you a doable to an I XX%, importantly capital. invested of accomplish is think it's XX%, little to well, XX on say, years. But an

I mark is XX key that the be in on that play should year we think it's to average. able XX%

Konark Gupta

equity, no sure that so great from at competition of is Investor rates interest the terms proabably see I'm M&A follow-up you'll And in Day. you cross private that lessening are Thanks much. my the here? color, at very rising like all the That's on Alain. Or just But do front, given change? quick

Alain Bedard

and the interest with interest love I really that things. moving Right are all of up, a kinds rates not now more the guys think I mean, and because and because low, so don't larger view funding most the up little getting I of we strategic interest those do cheap, us those that's is is time they with competition bit up as PE skittish really on deals, when cost mean, PE, same could guys helping as and of they're they things No, really their do. rates our way rates,

the at money and on I've philosophy said TFI many times you it selling. your Our make never on buying the

So you got this at come. years to buy do M&A right burden because overpay, not the price, for to to you very aggressive going is

Konark Gupta

you. Thank Speakers] [Multiple Perfect sense. Makes

Operator

Thank you.

Our UBS. of is from the next question coming line Tom your questions. Wadewitz with Please proceed with

Tom Wadewitz

the explained off was I that we envision I be. quarter, LTL thought to a the about you ratio? think guess progression you a bit bit weaker, on decline where from shipments path in bit in you wanted is the a going operating how Alain, markets to it Yes, I good but ask morning. other third little

improvement margin in backdrop? XXX is to of XXXX? got maybe you've that kind weaker of LTL about basis points expect the freight given reasonable think on you do costs it managing given too and Oracle how Is So better? optimistic a Or comments that

Alain Bedard

that really me which say tools be us, We hard I we providing some we LTL it's okay, be them. out. with addressing better, on also at XXXX. new then new should called financial better, though us what for our we’ll that's the that's light. chain even to that team say they're Yes, CapEx guys will all we that answer, was leader how in Freight our because What be ‘XX. situations believe yes, sold difficult that faster, CFI, to folks will of This the to now than a it's question. us, was to -- there with why in to don't UPS, Because et moving in fast could good CFI there U.S. I issues. our the ‘XX based coming within start want mean, don't tools in our act what us that I'm costing the but be team, new because mean, is able us and driving to ’XX is these in a okay, is help okay? way know they cetera. leader, management the The asset TForce will way because that fortune, have that's we cetera, new Canadian a be support until very costs, of don't helping trucks deliver helping TSA get okay, diamond that's fleet It's us, our okay, forget And in et the supply really seen could that we've will forget GFP we our normal. equipment help

I pressure. arm see of as into Eileen on just system should us, point, you to the And rate and Like basis said that OR, to it’s can on was The stop. and financial a trying they makes steerable, to from But okay? XX, motivated, -- company ship, miles So an the other have focus keep focus because per the answer a freight like we market, and sales challenge, that So say, we our not I sense to into are at to of center, right? they leg, okay? we're on also their the the away XX X, the pick we this they fortune the a chase terminals, They Canadian to run a could some ’XX, be OR, running think some U.S. very on in earlier Why? but volume that, side, Wow, maybe also OR mean, a the in you going Because XX. our we very average maybe revenue look of service guys have more they're tailwind, not the of we our So under improvement us. okay, an I difficult Canada. charge is okay, these is just the I us hey, compared fantastic. support right? call, going our said, and have for away the area And we team and closer have those believe that mile is past, Jan that, freight shipment XXX up XX white in UPS, quality is understand black ’XX that team tell headwinds. a sister once is Canada guys to saving So from some in

proof we going Oh, get So, to next but right? the guys you will then sure. the tools, tools be the And have pudding. in have these us for year is guys whoa, nothing,

Tom Wadewitz

Or may if for with hard kind it's hard improve? or too? say right, it that confident the to up quantify will are OR you come is So saying what the is, to of, in ballpark be

Alain Bedard

because say don't a two now, to to I these be we basically tools should okay? many, loses we we hard right years at Within that okay, company, okay. now, money. many are Like buy XX a a which right this have OR, year we But the there times year, It's should we be said it thing, the guys manage. doesn't to have that change

financial years, two will that all OR, okay, will this okay, we these to them, their know guys the bring XX within company we’ll with tools we provide an Now do to that job. why? Because XX

‘XX, cost market, lots right? bit that also because but will the number at have, okay, don't for market happen ‘XX. have what's more It's tools transition got guys in hard a in So we changing, that disappear Now going some look you to of softness in one. the is tailwind, you that these ‘XX? condition There's we little to have if say, that

intelligent freight the You chasing logic, that's is for that sake focused have of more us our to freight. just sales also versus freight on team

got it you and minuses, plus how we'll out, see turns So right?

Tom Wadewitz

Yes. And then that's great.

up contract quick a What for follow-up. there's concern UPS on maybe that Just focus on I people ask to the timing when some the about think inflation Teamsters the contract? expires. pent

of you concern bit step about changes? Is how contract Or for as that well? So you think of get a cost kind something a we would of be structure. in do up that your

Alain Bedard

that have to with be contract we're no. no, our is No, going No. employees fair. The to going

is we These okay, sure just in with years, So now saying, it you a at reflect with today our we'll I fair. No, was just these you a And that. make we be deal, to are look hopefully okay, the Loomis salaries right? union. have fair what five just the and renewed mean, contract Now deal them are of I we've P&C, we is guys will no. five Loomis, sit think part guys is Canada that with oh, Again, these condition, no, will and this. Unifor which them. guys. going Everything if want I year contract is with you make that years be is down, five done Unifor, for And next the fair. to everybody be and it fair this market mean

our that have employees to Canpar to that and division up So with fits, of do guys efficient and have job using reduce now these is I down, in our be delivering tools, right? something the on all a And said, year, that and us, so will position for right? deliver deal on steelworkers, will with to we work, next with we'll year TForce of owners are costs. financial shareholders, that. in it's that we okay, management supporting the TFI come Freight people represent and So with be huge a and to right? a And that like them team a the deliver five freight profitable our is we'll We sit fair, group reasonable then with the the organize that okay,

do is employee. salary the Now you reducing not how better the having reduce or work organized, costs okay, the by

Tom Wadewitz

Right.

you a of time. for makes Thank sense. lot the Okay,

Alain Bedard

Pleasure.

Operator

you. Thank

questions. coming your is the Atkins next proceed with Our Stephens. of question from line with Jack Please

Jack Atkins

for Good great. Alain. taking morning, my And Okay, questions. thanks

Alain Bedard

Jack. Pleasure,

Jack Atkins

kind of me Let start.

I'd take been questions on one we've your some to think this. get I on difficult may getting love And a be to answer. This it.

all like a on that point this about at maybe got about there, we guys earnings the business grow a systems. you that? the be obviously if out able that But not maybe of think you've you'd different at you least challenging at to market within think the It How how at asking of should segments, are just to across but in or for visibility, were think into but materialize, I we very, in guidance business. flat? point, opportunity? 'XX this do very managing more given hold some the the directionally, levers thinking are freight you 'XX the am uncertainty based kind 'XX of is there lack given sounds good see your Just U.S. LTL segment all to trying

Alain Bedard

environment, broken. you is white cost take doesn't to time You when you XX White it's Like sunny, nice I -- earlier bad what, I that you good. and advantage. times, TFI's said you mean, things perform when this really, that if it's went do something always we And mean, look at we seem And mean, times. years. know be guys I Jack, on a there's So me storm, [ph]. been through say side, good track nice in pretty to you we in do and do feel it's I for Jack I've really Right? sunny. call, When things sometimes, the record, know, could storms. can't know, that, the I well. they

we opportunity like so a in storm, lot there's get 'XX. So an probably storm, small will okay, a in of

years, debt than not tenure and all. at very me, balance I a strong we our our our X.XX, sheet, is leverage average one. mean, So debt is worried eight I'm have fixed is less at

tools. provide to right have shoe adjustment. That guys do Freight have look them at trying will situation them, team TForce make these a are and whereby rock tools now and only fantastic We the my don't they is enough The job tools. we to have four that's But a too in some bad. the

good. feel I -- me really So

budget is I have our our in for seen our at haven't dividend. our you guidance XX%, 'XX we plan, know, 'XX, but approve for when Jack Board So the CADX.

I a good, and coming this the because if think feeling even Board the CEO his tools. that into that message have storm we ‘XX, are sends there's guys, really a

track will what the of have is. We look we if there's take record, mean, advantage and it our I M&A we a could that it do the at is all team and storm

Jack Atkins

just follow-up, for to mix maybe do absolutely. of the in kind is guess bottom to want? the a bit there freight improve Mastio the level to carriers. Freight, forward? results No, at I of, freight I national the differently, TForce that service important the comment, the Alain. out you my TForce Absolutely, ago. improving there attract survey sort that Freight of was able How a moving know, I be quartile you strategy on and of weeks it appreciate looking couple came little

Alain Bedard

Yes, yes, yes.

proper so good we're You're it's U.S. okay. not way, service that, absolutely that not many like equipment, mean, I company to the that have is tier number in top one, reason our There's of -- is Jack. no a right, job. we okay, Reason the is LTL not do to much impossible.

breaks you if you in old, kinds Why? so U.S. to the cetera, not down eight that are guy is years et service got they the there So trucks look et XX don't. issues, the average they at on best-in-class cetera. of the run Because on do all road, the

under the okay, file. our has service Richmond team and control pricing was customer our service, customer righ? now not pricing, Our So master

don't disorganized, so ’XX. they're master be example. know okay? ’XX the you're the as build to what going properly. under of don't will okay, speak files, right? not So properly, the it finally, is your sense, make that of happy, you upkeep collect are customer bunch control, he's sure they something by for we build if don't got take then our Now Philippines, an going not a because we're because in Well, we But with doing, trying in the time, guys then -- And you all another as customer can and that because this you into through to issue guy got you're that

improve and truck of a falling XXXX side, there's right? customer mean the satisfaction lots the you expression. certain -- also but reflects the that piece guy got he's a your I who's to is help and freight, improve running of Because, and and terrible, pride just customer delivering years taken like that know, will that us, into pride the to years for with this to the So if a a So terminal that have drivers right? of everything of that's thing, apart admin doesn't that the it’s the So shared degree. also action okay? employee is you a have dealing on are also been not

will also correcting fleet that. we also That So the the facility. take and time, are okay,

started see into with talking So what the terminal, we just our bring of sales Eileen, customers we do. some have one, leader customers to nicest in our

at okay. But to Our revenue told the now X% said be improvement. we're okay, to We terrible, be it's at X%. I me, major used a claim is X% well, of is guys X% a ratio per used okay. at we which dollar disaster, revenue,

You to be at X.X%, X.XX%. got

X%. much So a year So as also we're After improve don't lose as that his do. with We so we now under break us, customer to used we're the under don't stuff. it right? X%, we experience

quality working more keep will improving to not the that taking time, quality So team you of to all Paul his if our and team is It there. hard mean, I it. get are it's customer, is freight, take the Jack it okay? action sales service that Because customer satisfaction. But like for and improve said, freight, we'll at

the We are par. at

Jack Atkins

Okay. Alain. the Really Thank time. appreciate you,

Alain Bedard

Pleasure, Jack.

Operator

you. Thank

is Group question the line Scott of proceed Please next with with Wolfe Research. coming questions. Our from your

Scott Group

guinness a Good Alain. record saying set morning, you Thanks. help I to want tools. for

a pillars You we're leverage has We that, lack the model. the going based hey, I'm delayed? beginning what's this equipment's at when there. more then things at slow? is flexible. tools just maybe asset is the can of model like a light of picture, this delayed risk asset said that new just been an of that be the really operating And business Is of follow-up it right? an or bigger is system ask call, The call one to So gets the this the

Alain Bedard

TFI tools Oracle. You know what, to on answer to the hook your question financial up that

I so we out is I team, mean, right testing we're the placed of when not they guys chain that We supply be really of to control. deliver. issues and mean, order to David talk now. team, going an many have mean, And our issue. think equipment I I all I and that that's their can't feel those our IT our good. with

it's IT what guys control what our So second and we're to the is part that about be of question, there. Scott? was telling me of out far, But No right? So us, question our is control. so is going are that, our the

Scott Group

wanted is a just a the business more just -- of if in to I that I this -- business is light? more asset downturn? more based business Is this asset just ultimately manage rest your is the a difficult

Alain Bedard

No. I Scott. don't so, think

ago, the by got get that years but we tools those the guys long, do right? years, that's day company, ago, We all get and built not the it's once got we'll that kinds I mean, provide guys to I LTL and the terminals, tools, over P&L it's the at right information, intensity, job with our we a it's okay. the think seven we over will believe it's question, to because night, and what we but the So the look that that time, help once tools same same mean, the Well, years provide five is those we two years do Canadian short. guys just now. we've we right? also job, there, done. results believe are we the I asset that? Why

Scott Group

be you? are think opportunity others the ex-fuel or better? revenue quick good, XXX per And you then there's going bit which more X%, follow-up, just maybe pricing about a little is for trending Do weight is but up to

Alain Bedard

bit TFI peers, take Freight going peer So service, It not improve discussing to at Jack a I different less over have do is I to in story A with bring lot the things the that. different To right? number don't -- was the mean, there, all, We're like We as so get not one will not right? there. U.S. of of at but we cultural we're Yes, will yet. more it's great, time more, TForce don't doing peers, best get the okay in is, there a there, there. to U.S., not in forget, the to I right? culture the as mean, have the same on we some we improve there. did but Canada, it's with little reputation it it’s we have The culture us

to moving going fast, is Scott, But many not not they're start when their They're have Once too again, proper this information I going don't to and me, this are times. all So head. sit and to going the to info, want guys on acting. tools in they the say it -- they I hands. said because have their to the exact, sit

Scott Group

of weeks. Thanks, Alain. Appreciate in couple See it. you a

Alain Bedard

Thank Yes. good. Very you, Scott.

Operator

you. Thank

is Please your Capital line question Walter proceed RBC of next from with coming Spracklin Our the questions. Markets. with

Walter Spracklin

morning, Yes. Thanks very much, operator. Good Alain.

Alain Bedard

Good morning, Walter.

Walter Spracklin

to like to So the the I'd revenue on per division, back particularly LTL go shipment.

you up a were You're business. of on XX% lot I down know shipments. shedding X.X% underperforming in And

So the was going average And mainly up the -- as price increase? increase opposed X.X% to

Alain Bedard

It's shed right? Walter? Hey, it’s you a mix, correcting been rates. also a we've because adjusting a shipments, your low it's Walter Because if mix, helps I revenue or right? mean, average, it rates So mix, key

or an X,XXX that e-tailer with we a maybe shipments him, about wise XXX the volume them instead X,XXX, shipments a him X% year X%? Today, shipments That per ago ago largest with we've do example, make year now X,XXX lost XX% day. him. was a So of right? losing But so losing a we with as we day XX%, were with about dealing

Walter Spracklin

kind into if into and Or go of If market do have up, weakening environment, here below get first you room, a drill to -- down kind looking still do we prices we the do price the weakening the really of below I'm year? what half mix -- on it price environment bring to so is Okay, the your unpacking because environment. go of in is

Alain Bedard

yes. Yes,

For fix at we market not But year, that okay? the in to the sure, when Walter, last are it's at solid like the fix all, -- So we okay? but market was is everything priced could day. not easier it same

issue, service adjustment as to as the market earlier, good. peers. lot So still your you to there's service like of okay, rates have right? were your good of as our but not sell best-in-class, we to a also is a So want we service get to talking But

same working the you do discount we to always and slowly right? to compare, you it's a So closer room also service, what kind we're of for at So okay, be because et quality got getting team But Paul his are go. sure, et cetera, if approach, improve and our the moving a guy, of time, two-phase a hard we have some to cetera. into market, still so

like there thing we not the are other is to that us is aspect you right? at sales weight my low were that team on That XX, we that XX.XX. all So look are X,XXX should stuck weight The talking carry they XX another be per is shipment, that we're to XX, we very peers, our doing. pounds XX, what if average not at all us Because Why? shipments at shipment. and that's

XX try we as trying okay, to to on were center. they freight up, our If get per right? I Over focus, lighter are because try same not heavier. per heavy get Canadian more money, radius you service because to division, of more we're focusing past They on of were industrial a shipment okay? look we more it at the sub, LTL, so thing is your when about freight than LTL, freight, shippers more Because explaining retail, Why? on which the you pick around there's was that. more focus get focusing there, mile

you to shipment. you're versus, it's X,XXX why get hauling it's a per So of per more because know, all by right? the would heavier dollars shipment, So cheaper ? peers so are per Walter, shipment, that's best operate weight, So my shipment, a move per of get because get XX.XX more help money to by haul revenue more us combination this, the paid and going or you weight, they my peers, X,XXX you hundred average

Walter Spracklin

the hear on of a or on transactions. My negotiated larger is they're worry color. are tuck-ins, factor not buy get kind kind the the that you all of settling in? be more acquisition? you and Good out looking on the you when weakening My the because contemplating which of Are because small on of weakening environment there, pushback deals I'm great. will larger -- environment? a kind at is potential of follow-up you with EBITDA environment you is of you're question on EBITDA a that and you That's stormed here question sellers, thing, a as can not do done, will normalized that kind Does bigger some I weakening base might that. of being negotiating negotiations, at acquisitions. of really because in with a weakness be of larger Or desperate

Alain Bedard

Yes.

So get deal for the if what at reasonable we've with look let's done to a an discussion CFI, come you we with agreement have able Walter, to in parties environment buyer that do to an both maybe and to is kind not an were We was me, too reasonability takes is apply seller, we dense. to the that for but of it right? the the best buyer's advantage, the is that environment same which once to

up like, the so that the so the buyer, up, we XX we but there's my then line okay, housing you because there in price. price price less reasonable because was goes months like like the changes to favor, a it's When more Toronto, I have normally what seller, story be reasonable difficult, you true with company. better reasonable. be in stuffed, is when showing about if more squeeze a well the philosophy deal, much, are six same right? you just It have it so ago, to the company, a Walter, the What stupid a deal, So of experience, do. to right? I'm of try buyers doesn't with when change less a in way is there's it's gets market going get So have That pricing. a deal, market thinking you to could now like fair buyers is the condition market said, want just also your But that right? So not market

Walter Spracklin

weeks. lot a few in much, and very Thanks see Alain Makes of sense. you a

Alain Bedard

Thank Yes. Walter. you,

Operator

you. Thank

from coming Please line of Jason is questions. Cowen. your with question next Our proceed the Seidl with

Jason Seidl

you, Alain. operator. Good Thank morning,

Alain Bedard

Hey, good morning, Jason.

Jason Seidl

here. but want that if your reef pretty in How sort no I can't downturn not LTL business, of little you OEMs, I I like have because take? that right you facility fleet, your that's a of it the because a a we following look You firing, want to want it we're I sounds markets now right? bit three idea. long fleet to probably But sort the anyone will, a six bit running you're and will the car footprint, think obvious little without focus on it's to cylinders heading here, to a storm you're been at right which through have of you sized a the behind because have your cylinder liking technology. is into

rightsized? of talk then of can forget So exist you about in where ‘XX, the some would but the that about put can or and you the opportunities me national get in that to you sort and carriers you once ’XX rankings beyond terms head of your for

Alain Bedard

I need say XX in XX in to What OR be providing environment these that three -- is and I the not next an us but is will two, that What I within what ‘XX, years should we're by what attainable of OR. is to this rightsized, this think Jason success. that Yes, which once the saying normal XX why -- in years. I'm is years, two okay, we in get about XX an exceptional this ‘XX, normal do mean, company. a mean, a just not I'm and be that for within in about okay, our talking I management guys we team I company we in I'm Canada, think everything saying is U.S. has great of guys that a not built saying, at is that. years the been not and OR, This are over XX company,

that XX XX, just U.S. to is in is LTL XX OR It's I normal. OR just normal. exceptional. but XX is OR XX think not exceptional,

Jason Seidl

that Freight. you No, makes going called to do you're in wanted the you not fleet. terms ‘XX? yet words, to think of out you're in be sense. other the do get when now TForce of to there original you by Where purchased of you bit -- where mentioned, target that the little you're And one was a things be, of you an you where update on think can you going be end your Obviously,

Alain Bedard

Yes.

a on wheel story, guys TForce we put it Because can. the we CapEx you gone with Freight. squeaks fast you So the know, and not the company. sure in squeaks wheel have the those known was TForce on our as on they another that happen Truckload that as at than charge we But Well, making that more that that of for four three, did CFI in because months, Why? get focus division were always that they as making oil the been Freight. deal was CFI,

about And to So ago, a and ASAP. this this why those is month the leader. guy going that hired get that okay. calls, is supplier is now calling squeaks the He we equipment and making a now we're wheel just making sure

second this one a is the and failure we've ago, started a his diversified okay, month just about the is of okay, guy months maybe supplier because three of behind So But equipment by half, ‘XX, schedule. right? far, but he the us in and So ’XX. month late probably giving month a supplier

The have, hasn't supplier we anything. that delivered third he

the October, to is what which delivery is into So seeing now is supposed we're November. far, start that of end

And was in the which in three, four is he start behind supposed fall, ‘XX. to the the already fourth of months is QX about So now schedule. supplier,

really I So in, the chains with supply to the stuff. still hopefully, equipment new get we could OEMs get have, we issues if we're the hopefully okay behind, which start is to this we mean, important improve, with leader him, okay, that that

nine equipment months, price for time. is last, the creeping okay, what, big of the up eight, Now the

catch team, to maybe going the need age shrink, there's we our Freight in we're TForce will like because all okay, at okay, ours, no or demand, ’XX at start in not to CapEx said I So way or To the lot right? TForce of a CapEx in bring ’XX, said as reduce of the fleet. this ’XX to up,

our it's going in TForce to So in CapEx ‘XX, be if Freight. happens ’XX, never something

other our us okay, see. the buying carriers get help equipment expedite, if that's faster. maybe going less, are So We'll to

Jason Seidl

guys you sounds -- about good three you're there. luck wish It like I six to month

Alain Bedard

need mean, Thank We it's for fleet an going It's the normal driver of company We thing to a need you. to I that. a age. have satisfaction. that. transportation important improve such

Jason Seidl

your crossed Yes, and as well for you appreciate listen, fingers I it cost the will time. improve

Alain Bedard

Thank you.

Operator

Thank you.

the your of with question coming Ken America. of with next Our from questions. Please is Bank line proceed Hoexter

Ken Hoexter

morning, Good Alain. great. Hey,

Alain Bedard

morning. Good

Ken Hoexter

truckload, about Maybe else side. now talk be the truckload How a this specialized side, for you've bit made on now what's going the post to acquisitions review needs high-XXs impact should about on low-XXs, on business? obviously, going on continued in what market your CFI, done forward? that pricing? on And margins thought your What's on we the with the think that any

Alain Bedard

mean, Ken, Yes, question, for we specialized very sure, good truckload. I I love mean

As that. we're of fan we big --

to none second in are big. We where Canada we're so

all Our grow that of with in approach the sectors. we're there team trying to east is Mississippi

in acquisitions So in two U.S. we our truckload. QX did on the specialized

that. now division And is involved including heavily under leadership, right. in our one dedicated U.S. the truckload keep Mr. growing Our Brookshaw, TA is to team right now now, which is

the the this flatbed, to the that, the east of in. like dump continue But really all operation, So steel, Mississippi, something of not that specialty stainless absolutely is like like the okay. we're we van, grow, will

Ken Hoexter

you Okay. were a you're before the discussion on when you kind there a question? maybe deceleration rid LTL you seeing if customer? the this just impact talked decelerating answering fast versus getting clarify trying the macro how know just decipher the to were you've your already then -- economy more shedding And seen what I'm Or of is I the about to the truck up to breaking the on of of customer, what bit of parse that way in don't a quarter? that is

Alain Bedard

to you with giving three a really at was haul lost guy, a XX% that that freight freight, look he right. -- freight that if with us Well, they customer of because that also we at XX% XX% shipments that We've his XX% had it guys, shed is another freight, guy, we a lot an right, that you our There's volume, disappear say this X,XXX money -- least talking give of will year-over-year of business XX%. was us X,XXX just shippers. just was than day were XXX. above giving because I XX% We not in like PLs mean, important all get I drop to any volume that's now more we that would those didn't I but also to make over shipments, sense. of. this losing make rid is

all. of lost I XX% is would the XX% really fit just not at say So, system related that to least at that we did freight that

Ken Hoexter

Okay.

flowing on again, before? terms in pricing, answer the the through on -- in so And that's of your

Alain Bedard

Yes.

Ken Hoexter

Alain. Thanks, Okay.

Alain Bedard

Ken. you, Thank

Operator

Thank you.

from Please Our comes proceed your line the Susquehanna. question with Bascome next questions. with of Majors

Bascome Majors

that Day investment So weeks the formal we're from done out two first you've the a community. time with Investor

do sharpen sort you little isn't and we of this be what's or and get that tell thing? what what and plan Thank bit. you. and our will what Can As a you not information guidance that objectives far about -- is are to that maybe just the share as kind pencils this of near-term ready your expectations for bit what us as

Alain Bedard

to is Yes. right. deep in really we've a at EVPs, our the with TFI, that how trying What bench got accomplish show are to we of team

really we and of these not it's analysts. That's be want to company. just to CEO a big the EVP And a we So being talking or talent. the And talking guys, investors and our investors why have want and lot have the we analysts the to CFO. just

one. seen, really guys, most culture, a we is guys is number right. for show is feel us that quality key of say, right? I the And in that So to of deep the to that in to our get important that our you show are, think the That want team, thing sure of happen TFI this terms our guidance, what that bench in the okay, for want a we've we based is think is this okay, of really we so for these we better goal guys talent, be far, that on But probably is, the will this. may strong how first being mean, how our what ‘XX of timing, hey right. because The budget so position

Bascome Majors

Thank you.

Alain Bedard

welcome. You're

Operator

you. Thank

from James comes with the your of Wells Monaghan question questions. line next Please proceed Fargo. with Our

James Monaghan

Hey, you. about -- guys. I ask Thank wanted to

Alain Bedard

Good morning, James.

James Monaghan

you there would economically it like, and in guys the Good like morning. next year? thinking you're and had end about into room of for into the still on I specialized sort expansion? strength trying how are the your through be environment understand, specialized and this Just rates XXXX of you rate rate wanted to less how thinking commentary about understand you on sort just about to follow-up market, going cyclical through is of thoughts sort see going like, trucking, the

Alain Bedard

Yes.

is lack in now. very the of we right mean, Ontario U.S. and but build a in to growing. both see right? infrastructure population now. Canada and homes expensive, Housing issue housing an I need our on our side, some that specialized as the that lot long, the time. investment Canada same I housing division, that on of the believe have the in long And major We a you vision is interest and understand Quebec, a suffered US, still on and Canadian So is in place that both There lot and U.S. will is we housing the example because helps that, for an infrastructure. I investment U.S. all over still of mean, in

okay less at field, for to the much there So And me, for number when be why in to the in that look building material, so the for specialty not we selling players the because Specialty less CFI, we U.S., okay, okay. more positioned commodity that van, where and chemical, for we the the on of there I mean, the is truckload want side, do is the one. is market the way this is that made deal players. we food,

we see lot opportunity. a of So

customers our coming the that big Canadian lot that thing too U.S. are is The in from of so a other Canada we're

that Canada is East of and yes, plan here and the are coming, us hey, saying, truckload we're the South? U.S. there a moving these is we're say of the about that side to small So really in both this on guys Coast East in do. we on a the tuck-ins Coast for guys lot And we growing are So right? thinking the specialty keep nice going through on lot you

James Monaghan

on been from follow-up heading it. sense any sort -- of the Any That's you've a of LTL. into actually quarter OR shipments quick the fourth -- calling seasonality helpful. Got just for And here? just the of

Alain Bedard

team the cyclicality what mean, not On it it's more we've and there's are is. the terms were absolutely. our side, us U.S. of it asked months But to December in yes, to do sure volume. what is I terms for than January adjusting, And for situation. been even good okay? in be proactive yes, always they used So of

James Monaghan

thanks. Okay,

Alain Bedard

welcome. You're

Operator

you. Thank

Please is Our from line next coming with proceed Desjardins. of question with the your Porier Benoit questions.

Benoit Porier

Hey, good Alain. morning,

Alain Bedard

Benoit. morning, Good

Benoit Porier

Yes.

to stronger balance should is XXXX. quite 'XX, some much You less And mentioned be in that different TLs, the sheet. softness 'XX, versus expected company energy, obviously, exposure

the at are most looking segment what Alain? one the or some prepare how you and volatility just software And the environment, softness? see we potential for a XXXX, would be should So might that resilient

Alain Bedard

But have one the management TFI okay, affected. the thing helps Well, Benoit, that we adjust. we which us will and that know one everything predict, it's team have is be to we guys, hard at

volume, to come you up, but e-commerce example, what that an down, start BXB the in our more the into okay, a Now I start only look right? volume, in than QX. P&C without year-over-year, recession, But short if okay? I'm down still guys X% October at just fantastic in we're job. to take I'm my if So But have is done come in P&C, okay, happened that

that it have it active fast business, you're Well, then going get we in saying are level, downturn, one correctly do lose there reasonable our that that at I'm understand that price, the so you depends revenue, to volume don't But with or our means M&A because buy know So okay, okay, always small killed. and what a at we turn So with okay, around of is lose revenue, no is if something how same fine. we your I drops, that explaining we at storm. in depends thing Well, the can it predict. base that okay, with are downturn was how it's teams to we could I'm may M&A doing could if is the the recession through organically because do all revenue they we back adjust, say to in balance get beef strong, this time. before we where so M&A, to we our We lots is were M&A of experience come. we good to complement case that that M&A some that but that up and sheet right? because hard

Benoit Porier

color. follow-up on That's the quickly Perfect. great And question. just

see In but obviously, XXXX, terms be might the of now XXXX, up CapEx What normalized beyond sold? net more of could you'll catch that facing been it XXXX in CapEx, CFI has we be normalized? once years the -- kind and gets

Alain Bedard

numbers but Okay. I was that our $XX CFI. by suggest for million, you yet and take Benoit plan the reduce our CFI, of I you would ’XX that net of CapEx about which haven't share seen ‘XX,

Benoit Porier

below the I number perfect. could beyond. Okay, let's even years, and suspect up catch And XXXX say that that those go

Alain Bedard

Yes.

Benoit Porier

Perfect.

Okay.

Alain Bedard

Yes.

Benoit Porier

thank you very I'm So Alain. to forward for much the seeing team. time, the you and looking

Alain Bedard

Benoit. you, Okay, Thank very good.

Operator

Thank you.

proceed Our questions. with is from question of next Credit the with Ari Rosa line coming your Please Suisse.

Ari Rosa

Hey, good Alain. morning,

part -- to about sale guess. So the I of sale ask the is I the business, wanted truckload of the

Alain Bedard

Yes.

Ari Rosa

pretty opposed in transactions see done larger the rare of time one to was as to selling you've certainly guys some It you buying that assets and assets.

and were was just right there now you about how truckload I'm kind exit? your to thinking business So and what the curious that was why of thinking time

Alain Bedard

Yes.

us. okay, return our always that is us for one capital, has been on invested too number for key So low

invested on in XX%, points, TFI is look average which you at today is right, of If capital return great. XX the QX

on was our invested Now capital average or maybe X% you van know. in about return division regular our X% X%

from, XX-years And see first was, fantastic you next will have a capital. at to of this a this done to is I've has the the okay, this great a And I influx a business $XXX buyer, I look of That's better So or a win-win invest maybe do discussing a something knowledge back, job to this us, that mean, major this has it looking I'm got the the we XX-years it a okay, me better is we capital board, into will and we'll of since because do we'll return got okay, return. And to use million, on He right? know, you'll of right? $XXX that why And the say, team a TFI. of also than that million, buyer So sale. with use right? that let's me, company transaction, at buying ’XX better to he's swab. invested produce and XXXX. once the come that a transaction, should for you in why XX%, and because cash was a with Now, we probably mean, the for So that of then see we We'll something was CFI, do record track joined the what all, convinced huge X% for lot ’XX for a in has okay, CFI. to It invest a he the buyer switch else. use we've it's end I'm you capital ago, win-win our buyer. got

you for our okay? going to So shoulders, a the be idea But CFI never good great guys for It's did for then wait till was, happen next asset us. and good to year, okay, next may ‘XX. to next our deal, may good good we we have sell team. this that. to do understand you'll year. it's why happen in which buyer for major It's happen the buyer. we going the It's It's And

Ari Rosa

Yes. No, capital. be do It lot what that guys to see makes exciting sense. will a of that with you

revenue wanted second parcel per to question, I was ask shipment sequentially. down my for the Just

Just little was Was wanted going on effect there FX FX a also? else drove of a that how And But or color decrease? related? mix then bit it was headwind a of specifically on kind of there? get much something for what to parcel

Alain Bedard

when (ph), could It's years mean quality shippers. that has being has competition in really at it’s able have what that get been volume is power, okay, than I with able more no said, to and be could reduction on more the to done, owned, years or Canada do efficient, revenue. with and result and for looking great is Paul, OR in right? very and with to of was no with that's this I also market I is And money U.S. mean, in tab on those of TForce months, I to guys in This is to that Bob within costs, mean revenue okay, all what fantastic in some the to XX per Jim market are our growth, the why think pricing Canadian our government Canadian the what keeps growth to terms get is be trying XX McGonagall with Paul those the a this team, Canada, [Puro] this improving being to the me, this with helping never guy and In XX have to rest so more be is OR. in UPS I line fantastic. cost it's the U.S. that of we in or more customer wow, really our guys FedEx about position with efficient team The piece, that more how do good of lucky to cost. from okay, XX P&C is we're get our a feel the that's to in we'll I the do called it market. that terms guy is runs Yes. why And our we'll a UPS involved is of run different guys, the like gain deliver our we Our I been the support less. be Freight U.S. come up U.S.

Ari Rosa

Great. Thanks, Alain.

Alain Bedard

Pleasure.

Operator

Thank you.

your Tim with line questions. come questions proceed the Securities. next of from Please TD Our with James

Tim James

much. very Good Thanks Alain. Great. morning,

Alain Bedard

morning. Good

Tim James

LTL returns pricing we've ground capital talk on the for wondering with just profitability through in growth I'm freight you could in if the from seen the good that implications business? U.S. and

Alain Bedard

-- is year-over-year goal about this product to growing by right? Well, GFP we XX% is into Yes. seen ‘XX. that so the there we So that was, diamond that is grown the to that? have. a the that far, keep last but is has do that had XX% could XX%, have a we revenue discussion none. is second possibility plan, a absolutely, Paul’s we there I haven't And

We UPS, LTL this have within we that U.S. assets Absolutely. the is a partnership of one today. our with have business greatest

Tim James

getting Freight bought maybe way you've gone the is tools was the plan. you. and playing transition denying freight that thinking a describing on fits acquired of want correct? of this cost and and expect TForce in that side today has your the Thank business. This just now the original confirm Then deployed the done it, I strategy believe? Is is you that that question, business. second business the to with it great transition freight all This about out of there? kind focusing time from I you of part when kind through the until to The culling from that the my job you transition

Alain Bedard

Absolutely.

always sure, same. For the we it's do is same. What always the

So because does because say you you okay, the to fix Mr. the right? not is that fit, move that rate we can't like to easiest just do have up. to but do okay, freight Adjust the customer easy doesn't I'm sorry, rate customer it, to thing market, is that talk to that, not and Customer,

of to say, cost. workers So our or most that drivers reduces do this organize is so is easiest was that The why is work way, OR, or dock less, it thing let's a our company from that with do. okay, a was in to this more to a difficult that's losing efficient to align the all money thing more start more one, company to difficult, got, year XX the okay, a

to more provide to Scott X bring XX a those to because to fix fix with guys, the I So will that this it, going think I say, XX -- mean because me is it OR, why say okay. we it XX change we hey, within XX-months, got OE, I but take we it listen is a kill got the the to we'll But said, again, don't bought that to guys. the want right time to to you cost, when you to information culture. tools,

better did not I they're the to not right? going The we're okay? problem center, me, previous Now time sit the owner is. service the day a have better that technology it us, we that the they it a that if customer was or support very was They the a equipment, spend tools technology them it's job for that was but XXX money, what Alain like But the time, deliver for done or their didn't right? sure is the will to get that surprises? they our thought So same one, will ask So miles guys in going okay? would so it's energy fix issue, we there you complete is important, than brand okay? So to commit that system we'll need the also And away this the very be to of the you a some a plan, is that not you to have the I not way. do So shipment provide yes. a hands, to from right? moving could the job, right? which in new, so right at own, their we're for there encounter then say is sales why old, in position financial information

Tim James

seeing I very to look helpful, you New forward Thank York. That's Great. in Alain. you.

Alain Bedard

good. Very

Operator

hand Thank are like now closing call Bedard I'd to back Alain comments. time. you. There further over any this for at the no to questions

Alain Bedard

much, you Thank All very right. operator.

being chance weekend. of this of meet When to look morning. on November you'll And forward leaders seeing you you the So the interest on many a We appreciate senior appreciate everyone again, to again. Day International. and call have you at many Investor I your enjoy our I TFI XX. hope Thank

Operator

does you. conclude participation. teleconference. today's This We appreciate Thank your

disconnect Enjoy your rest may You of this lines the at time. your day.

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