XPO Logistics reports “highest revenue of any quarter”
XPO Logistics, Inc. has announced its financial results for the fourth quarter 2021. Revenue increased to $3.36 billion for the fourth quarter, compared with $2.94 billion for the same period in 2020.
Net income from continuing operations attributable to common shareholders was $126 million for the fourth quarter, compared with $34 million for the same period in 2020. Operating income was $174 million for the fourth quarter, compared with $153 million for the same period in 2020. Income from continuing operations was $126 million, compared with $66 million for the same period in 2020. Diluted earnings from continuing operations per share was $1.08 for the fourth quarter, compared with $0.33 for the same period in 2020.
Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $155 million for the fourth quarter, compared with $54 million for the same period in 2020. Adjusted diluted earnings from continuing operations per share, a non-GAAP financial measure, was $1.34 for the fourth quarter, compared with $0.53 for the same period in 2020.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, increased to $323 million for the fourth quarter, compared with $289 million for the same period in 2020.
For the fourth quarter 2021, the company generated $98 million of cash flow from operating activities and $57 million of free cash flow, a non-GAAP financial measure. For the full year 2021, the company generated $656 million of cash flow from operating activities and $475 million of free cash flow.
Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
2022 Guidance
- Adjusted EBITDA of $1.36 billion to $1.40 billion, including first quarter adjusted EBITDA of $280 million to $285 million;
- North American LTL expected to generate at least $1 billion of full year adjusted EBITDA;
- Year-over-year improvement of more than 100 basis points in North American LTL adjusted operating ratio;
- Depreciation and amortization of approximately $400 million, excluding amortization of acquisition-related intangible assets;
- Interest expense of $170 million to $180 million;
- Effective tax rate of 24% to 25%; and
- Adjusted diluted EPS of $5.00 to $5.45, excluding amortization of acquisition-related intangible assets, and assuming 117 million diluted shares outstanding at year-end 2022.
With respect to 2022 cash flows:
- Gross capital expenditures of $500 million to $550 million;
- Net capital expenditures of $425 million to $475 million; and
- Free cash flow of $400 million to $450 million.
Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “Our company delivered a strong fourth quarter finish to a year of solid growth. We reported the highest revenue of any quarter in our history, and generated adjusted EBITDA that exceeded our guidance for both the quarter and the year.
“In North American LTL, the operating ratio degradation we saw last quarter bottomed out in October with the launch of our action plan. This created immediate momentum — we reduced the year-over-year operating ratio erosion throughout the quarter and significantly improved our service metrics. We also grew yield by a record 11% ex fuel, and yield remained strong in January. Given our traction with LTL volume and yield, we expect our 2022 adjusted operating ratio to inflect to year-over-year improvement mid-year.”
“Our North American truck brokerage business is continuing to far outpace industry growth, propelled by our XPO Connect digital brokerage platform. This technology was a major tailwind behind the 29% load growth we achieved in 2021 year-over-year, including 35% load growth from our top 20 customers. In the fourth quarter, 70% of our brokerage orders were created or covered digitally. We expect to continue to deliver double-digit volume growth in North American truck brokerage in 2022 and going forward.”
Jacobs continued, “Our 2022 guidance anticipates a year of strong profitability for our shareholders, with adjusted EBITDA of $1.36 billion to $1.40 billion, a year-over-year increase of 11% at the mid-point, and adjusted diluted EPS of $5.00 to $5.45, a year-over-year increase of 22% at the mid-point.”
