XPO Logistics reports dramatic rebound

US-based company, XPO Logistics, has released its Q3 2020 financial results and full-year 2020 guidance.

XPO Logistics’ revenue for Q3 2020 was $4.22 billion USD (Q3 2019: $4.15 billion USD).

Net income attributable to common shareholders was $84 million USD (Q3 2019: $117 million USD).

Operating income was $223 million USD (Q3 2019: $229 million USD).

Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $86 million USD for Q3 2020, compared with $121 million USD for the same period in 2019.

Adjusted EBITDA was $439 million USD for Q3 2020 (Q3 2019: $438 million USD).

XPO Logistics generated $298 million USD of cash flow from operations and $247 million USD of free cash flow.

As for 2020 guidance, the company expects to see an adjusted EBITDA of approximately $1.35 billion USD and free cash flow of approximately $500 million USD for the full year 2020.

“Our business rebounded dramatically in the third quarter,” said XPO Logistics Chairman and CEO, Brad Jacobs.

“Revenue, adjusted EBITDA, adjusted EPS and free cash flow were all decisively higher than expected. Our growth was broad-based, spanning our service offerings and geographies.

“Supply chain outsourcing is accelerating, and e-commerce continues to be a huge tailwind for us, particularly in contract logistics and last mile. We grew our last mile revenue by 11 per cent in the quarter, year-over-year, by leveraging our North American hubs and XPO Direct network. In truck brokerage, we realised revenue growth of 27 per cent, with a 13 per cent increase in net revenue per load.

“Our XPO Connect technology is a major driver of these results — all of our non-asset transportation services now use this powerful platform to manage their freight movements,” he said. “Importantly, in North American less-than-truckload, our focus on yield, service and efficiency improved our third quarter operating ratio to 81.7 per cent, the best operating ratio of any quarter in the history of our LTL operation. Our adjusted OR was also a record at 79.7 per cent.”

As of 30 September 2020, the company had access to approximately $3.1 billion USD of total liquidity, including $2.0 billion USD of cash and cash equivalents and $1.1 billion USD of available borrowing capacity.

In other news, XPO Logistics has appointed a new Chief Commercial Officer.

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