XPO releases FY2019 results, appoints CFO

From the February 2020 issue.

XPO Logistics has announced financial results for Q4 and full year 2019.

Revenue was $4.14 billion USD for the quarter, compared with $4.39 billion USD for the same period in 2018. Net income attributable to common shareholders was $96 million USD for the quarter, compared with $84 million USD for the same period in 2018. Operating income was $202 million USD for the quarter, compared with $126 million USD for the same period in 2018. Diluted earnings per share was $0.93 USD for the quarter, compared with $0.62 USD for the same period in 2018.

Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $115 million USD for Q4 2019, compared with $98 million USD for the same period in 2018. Adjusted diluted earnings per share, a non-GAAP financial measure, was $1.12 USD for the quarter, compared with $0.72 USD for the same period in 2018.

Adjusted net income attributable to common shareholders and adjusted diluted earnings per share for the fourth quarter 2019 exclude: $21 million USD, or $17 million USD after-tax, of restructuring costs, primarily severance; $4.0 million USD, or $3.0 million USD after-tax, of non-cash unrealised losses on foreign currency contracts; and $3.0 million USD, or $2.0 million USD after-tax, of transaction and integration costs.

Adjusted earnings before interest, taxes, depreciation and amortisation ('adjusted EBITDA'), a non-GAAP financial measure, increased to $432 million USD for Q4 2019, compared with $380 million USD for the same period in 2018. Adjusted EBITDA for Q4 2019 excludes $21 million USD of restructuring costs, primarily severance; and $3.0 million USD of transaction and integration costs.

For Q4 2019, the company generated $349 million USD of cash flow from operations and $221 million USD of free cash flow, a non-GAAP financial measure. For the full year 2019, the company generated cash flow from operations of $791 million USD and free cash flow of $628 million USD, including an incremental benefit of approximately $110 million USD from trade receivables programs. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.

"We delivered a good fourth quarter and a good year," said XPO Logistics Chairman and CEO, Bradley Jacobs.

"I’m particularly pleased that we grew fourth quarter EPS by 50 per cent year-over-year, and adjusted EPS by 56 per cent. We also increased net income by 18 per cent and adjusted EBITDA by 14 per cent in the quarter.

"In our less-than-truckload unit, where we have several new technologies in place, the operating ratio was 83.9 per cent, and the adjusted operating ratio was a fourth quarter record at 82.3 per cent. In truck brokerage, we increased volume year-over-year with lower headcount, propelled by our XPO Connect digital platform. Our technology also helped our logistics segment generate a double-digit adjusted EBITDA margin in the quarter for the first time since 2015," he said. "In 2020, we’ll continue to focus on maximising shareholder value, while remaining intensely committed to the satisfaction of our customers and employees."

On February 10 2020, XPO Logistics announced the appointment of David Wyshner as Chief Financial Officer, effective 2 March 2020.

Wyshner’s 28-year career includes 13 years as CFO of multi-billion-dollar public companies that completed major asset sales, spin-offs and acquisitions during his tenure. Prior to joining XPO, he served as CFO of Wyndham Hotels & Resorts, Inc. Sarah Glickman, who assumed the role of acting Chief Financial Officer on 15 August 15 2018, will serve in a new role as Senior Vice President, Corporate Finance and Transformation.

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