XPO (NYSE: XPO) today announced its financial
results for the second quarter 2023, reflecting a solid performance
in a soft industry environment for freight transportation. The
company reported revenue of $1.92 billion and diluted earnings
from continuing operations per share of $0.27.
Mario Harik, chief executive officer of XPO, said,
“Our business performed above expectations in the second quarter,
delivering adjusted EBITDA of $244 million and adjusted diluted EPS
of $0.71.
“In North American LTL, we sequentially improved
our adjusted operating ratio more than our forecast, and operated
with greater labor efficiency. Our shipments per day were higher
than a year ago, driven by our quality of service, with yield
growth getting stronger as the quarter progressed.
“Our momentum continued into July, when we moved
more volume through our network, accelerating year-over-year growth
in tonnage and shipments per day to 4% and 9%, respectively. Our
yield growth also continued to improve in July, driven by our
pricing initiatives.”
Harik continued, “Looking forward, we’ll continue
to deliver financial and operational excellence through the
disciplined execution of our LTL 2.0 plan. This includes ongoing
investments in network capacity of tractors, trailers and doors. We
remain confident in achieving our long-term targets.”
Second Quarter Highlights
For the second quarter 2023, revenue was $1.92
billion, compared to $2.05 billion for the same period in 2022. The
year-over-year reduction in revenue was due primarily to lower fuel
surcharge revenue.
Net income from continuing operations attributable
to common shareholders was $31 million for the second quarter 2023,
compared with $96 million for the same period in 2022. Operating
income was $107 million for the second quarter, compared with $171
million for the same period in 2022. Diluted earnings from
continuing operations per share was $0.27 for the second quarter,
compared with $0.83 for the same period in 2022.
Adjusted net income from continuing operations
attributable to common shareholders, a non-GAAP financial measure,
was $83 million for the second quarter, compared with $132 million
for the same period in 2022. Adjusted diluted earnings from
continuing operations per share (“adjusted diluted EPS”), a
non-GAAP financial measure, was $0.71 for the second quarter,
compared with $1.14 for the same period in 2022.
Adjusted earnings before interest, taxes,
depreciation and amortization (“adjusted EBITDA”), a non-GAAP
financial measure, was $244 million for the second quarter,
compared with $289 million for the same period in 2022. The
year-over-year reduction in adjusted EBITDA was due primarily to
lower fuel surcharge revenue.
The company generated $131 million of cash flow
from operating activities in the second quarter. Free cash flow, a
non-GAAP financial measure, was $5 million, after $126 million of
net capital expenditures.
Reconciliations of non-GAAP financial measures in
this press release are provided in the attached financial
tables.
Results by Business
Segment
Second Quarter 2023 Summary Segment Results |
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Three months ended June 30, |
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Revenue |
|
Operating Income (Loss) |
|
Adjusted EBITDA(1) |
(in millions) |
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|
2023 |
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2022 |
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|
2023 |
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2022 |
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2023 |
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2022 |
North American Less-Than-Truckload Segment |
|
$ |
1,136 |
|
$ |
1,240 |
|
$ |
129 |
|
$ |
197 |
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$ |
208 |
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$ |
274 |
European Transportation Segment |
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|
781 |
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|
807 |
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12 |
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15 |
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|
46 |
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|
49 |
Corporate |
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- |
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- |
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(34) |
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(41) |
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(10) |
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(34) |
Total(2) |
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$ |
1,917 |
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$ |
2,047 |
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$ |
107 |
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$ |
171 |
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$ |
244 |
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$ |
289 |
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Six months ended June 30, |
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Revenue |
|
Operating Income (Loss) |
|
Adjusted EBITDA(1) |
(in millions) |
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2023 |
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2022 |
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2023 |
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2022 |
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2023 |
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2022 |
North American Less-Than-Truckload Segment |
|
$ |
2,256 |
|
$ |
2,347 |
|
$ |
232 |
|
$ |
309 |
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$ |
390 |
|
$ |
460 |
European Transportation Segment |
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1,568 |
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|
1,594 |
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9 |
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16 |
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|
83 |
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|
87 |
Corporate |
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- |
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- |
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(76) |
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(91) |
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(19) |
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(74) |
Total(2) |
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$ |
3,824 |
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$ |
3,941 |
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$ |
165 |
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$ |
234 |
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$ |
454 |
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$ |
473 |
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(1) Reconciliations of adjusted EBITDA are provided in the
attached financial tables |
(2) See the Non-GAAP Financial Measures section in this
release |
- North American Less-Than-Truckload (LTL): The segment generated
revenue of $1.14 billion for the second quarter 2023,
compared with $1.24 billion for the same period in 2022. On a
year-over-year basis, shipments per day increased 1.9%, tonnage per
day decreased 2.8%, and yield, excluding fuel, increased 1.4%.
Including fuel, yield decreased 6.0%. Operating income was $129
million for the second quarter 2023, compared with $197 million for
the same period in 2022. Adjusted operating ratio, a non-GAAP
financial measure, was 87.6%, compared with 83.2% a year ago,
reflecting a headwind of 110 basis points of incremental
depreciation expense from increased capital investment in the
business. Adjusted EBITDA for the second quarter 2023 was $208
million, compared with $274 million for the same period in 2022.
The year-over-year reduction in adjusted EBITDA was due primarily
to lower fuel surcharge revenue and pension income.
- European Transportation: The segment generated revenue of $781
million for the second quarter 2023, compared with $807 million for
the same period in 2022. Operating income was $12 million for the
second quarter 2023, compared with $15 million for the same period
in 2022. Adjusted EBITDA was $46 million for the second quarter
2023, compared with $49 million for the same period in
2022.
Conference Call
The company will hold a conference call on Friday,
August 4, 2023, at 8:30 a.m. Eastern Time. Participants can call
toll-free (from US/Canada) 1-877-269-7756; international callers
dial +1-201-689-7817. A live webcast of the conference will be
available on the investor relations area of the company’s
website, xpo.com/investors. The conference will be archived
until September 4, 2023. To access the replay by phone, call
toll-free (from US/Canada) 1-877-660-6853; international callers
dial +1-201-612-7415. Use participant passcode 13739968.
About XPO
XPO, Inc. (NYSE: XPO) is one of the largest
providers of asset-based less-than-truckload (LTL) transportation
in North America, with proprietary technology that moves goods
efficiently through its network. Together with its business
in Europe, XPO serves approximately 49,000 customers with
562 locations and 37,000 employees. The company is headquartered
in Greenwich, Conn., USA. Visit xpo.com for more
information, and connect with XPO
on Facebook, X, LinkedIn, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and
Exchange Commission (“SEC”), we provide reconciliations of the
non-GAAP financial measures contained in this press release to the
most directly comparable measure under GAAP, which are set forth in
the financial tables attached to this press release.
XPO’s non-GAAP financial measures in this press
release include: adjusted earnings before interest, taxes,
depreciation and amortization (“adjusted EBITDA”) on a consolidated
basis and for corporate; adjusted EBITDA margin on a consolidated
basis; adjusted net income from continuing operations attributable
to common shareholders; adjusted diluted earnings from continuing
operations per share (“adjusted diluted EPS”); free cash flows;
adjusted operating income for our North American
Less-Than-Truckload and European Transportation segments; and
adjusted operating ratio for our North American
Less-Than-Truckload segment.
We believe that the above adjusted financial
measures facilitate analysis of our ongoing business operations
because they exclude items that may not be reflective of, or are
unrelated to, XPO and its business segments’ core operating
performance, and may assist investors with comparisons to prior
periods and assessing trends in our underlying businesses. Other
companies may calculate these non-GAAP financial measures
differently, and therefore our measures may not be comparable to
similarly titled measures of other companies. These non-GAAP
financial measures should only be used as supplemental measures of
our operating performance.
Adjusted EBITDA, adjusted EBITDA margin, adjusted
net income from continuing operations attributable to common
shareholders and adjusted diluted EPS include adjustments for
transaction and integration costs, as well as restructuring costs
and other adjustments as set forth in the attached tables.
Transaction and integration adjustments are generally incremental
costs that result from an actual or planned acquisition,
divestiture or spin-off and may include transaction costs,
consulting fees, stock-based compensation, retention awards, and
internal salaries and wages (to the extent the individuals are
assigned full-time to integration and transformation activities)
and certain costs related to integrating and converging IT systems.
Restructuring costs primarily relate to severance costs associated
with business optimization initiatives. Management uses these
non-GAAP financial measures in making financial, operating and
planning decisions and evaluating XPO’s and each business segment’s
ongoing performance.
We believe that free cash flow is an important
measure of our ability to repay maturing debt or fund other uses of
capital that we believe will enhance stockholder value. We
calculate free cash flow as net cash provided by operating
activities from continuing operations, less payment for purchases
of property and equipment plus proceeds from sale of property and
equipment. We believe that adjusted EBITDA and adjusted EBITDA
margin improve comparability from period to period by removing the
impact of our capital structure (interest and financing expenses),
asset base (depreciation and amortization), tax impacts and other
adjustments as set out in the attached tables that management has
determined are not reflective of core operating activities and
thereby assist investors with assessing trends in our underlying
businesses. We believe that adjusted net income from continuing
operations attributable to common shareholders and adjusted diluted
EPS improve the comparability of our operating results from period
to period by removing the impact of certain costs and gains that
management has determined are not reflective of our core operating
activities, including amortization of acquisition-related
intangible assets, transaction and integration costs, restructuring
costs and other adjustments as set out in the attached tables. We
believe that adjusted operating income and adjusted operating ratio
improve the comparability of our operating results from period to
period by removing the impact of certain transaction and
integration costs and restructuring costs, as well as amortization
expenses as set out in the attached tables.
Forward-looking
Statements
This release includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements. In some
cases, forward-looking statements can be identified by the use of
forward-looking terms such as “anticipate,” “estimate,” “believe,”
“continue,” “could,” “intend,” “may,” “plan,” “potential,”
“predict,” “should,” “will,” “expect,” “objective,” “projection,”
“forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,”
“trajectory” or the negative of these terms or other comparable
terms. These forward-looking statements are based on certain
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate in the circumstances.
These forward-looking statements are subject to
known and unknown risks, uncertainties and assumptions that may
cause actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by such forward-looking statements. Factors that might
cause or contribute to a material difference include the risks
discussed in our filings with the SEC, and the following: the
effects of business, economic, political, legal, and regulatory
impacts or conflicts upon our operations; supply chain disruptions,
the global shortage of certain components such as semiconductor
chips, strains on production or extraction of raw materials, cost
inflation and labor and equipment shortages; our ability to align
our investments in capital assets, including equipment, service
centers, and warehouses and other network facilities, to our
customers’ demands; our ability to implement our cost and revenue
initiatives; the effectiveness of our action plan, and other
management actions, to improve our North American LTL business; our
ability to benefit from a sale or other divestiture of one or more
business units; our ability to successfully integrate and realize
anticipated synergies, cost savings and profit improvement
opportunities with respect to acquired and spun-off companies;
goodwill impairment, including in connection with a business unit
sale or other divestiture; fluctuations in currency exchange rates;
fuel price and fuel surcharge changes; the expected benefits of the
spin-off of RXO, Inc.; the impact of the prior spin-offs of GXO
Logistics, Inc. and RXO, Inc. on the size and business diversity of
our company; our ability to develop and implement suitable
information technology systems and prevent failures in or breaches
of such systems; our indebtedness; our ability to raise debt and
equity capital; fluctuations in fixed and floating interest rates;
our ability to maintain positive relationships with our network of
third-party transportation providers; our ability to attract and
retain qualified drivers; labor matters; litigation; risks
associated with our self-insured claims; governmental or political
actions; and competition and pricing pressures.
All forward-looking statements set forth in this
release are qualified by these cautionary statements and there can
be no assurance that the actual results or developments anticipated
by us will be realized or, even if substantially realized, that
they will have the expected consequences to or effects on us or our
business or operations. Forward-looking statements set forth in
this release speak only as of the date hereof, and we do not
undertake any obligation to update forward-looking statements
except to the extent required by law.
Investor ContactBrian Scasserra+1
617-607-6429brian.scasserra@xpo.com
Media ContactKarina
Frayter+1-203-484-8303karina.frayter@xpo.com
XPO, Inc. |
Condensed Consolidated Statements of Income |
(Unaudited) |
(In millions, except per share data) |
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Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
2022 |
|
Change % |
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|
2023 |
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|
2022 |
|
Change % |
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|
Revenue |
$ |
1,917 |
|
$ |
2,047 |
|
-6.4% |
|
$ |
3,824 |
|
$ |
3,941 |
|
-3.0% |
Salaries, wages and employee benefits |
|
783 |
|
|
752 |
|
4.1% |
|
|
1,545 |
|
|
1,477 |
|
4.6% |
Purchased transportation |
|
444 |
|
|
525 |
|
-15.4% |
|
|
901 |
|
|
1,035 |
|
-12.9% |
Fuel, operating expenses and supplies |
|
390 |
|
|
434 |
|
-10.1% |
|
|
817 |
|
|
852 |
|
-4.1% |
Operating taxes and licenses |
|
15 |
|
|
13 |
|
15.4% |
|
|
30 |
|
|
29 |
|
3.4% |
Insurance and claims |
|
46 |
|
|
48 |
|
-4.2% |
|
|
90 |
|
|
104 |
|
-13.5% |
Gains on sales of property and equipment |
|
(2) |
|
|
(1) |
|
100.0% |
|
|
(5) |
|
|
(2) |
|
150.0% |
Depreciation and amortization expense |
|
107 |
|
|
96 |
|
11.5% |
|
|
208 |
|
|
190 |
|
9.5% |
Transaction and integration costs |
|
17 |
|
|
7 |
|
142.9% |
|
|
39 |
|
|
14 |
|
178.6% |
Restructuring costs |
|
10 |
|
|
2 |
|
400.0% |
|
|
34 |
|
|
8 |
|
325.0% |
Operating income |
|
107 |
|
|
171 |
|
-37.4% |
|
|
165 |
|
|
234 |
|
-29.5% |
Other income |
|
(3) |
|
|
(13) |
|
-76.9% |
|
|
(8) |
|
|
(27) |
|
-70.4% |
Debt extinguishment loss |
|
23 |
|
|
26 |
|
-11.5% |
|
|
23 |
|
|
26 |
|
-11.5% |
Interest expense |
|
43 |
|
|
31 |
|
38.7% |
|
|
85 |
|
|
68 |
|
25.0% |
Income from continuing operations before income tax
provision |
|
44 |
|
|
127 |
|
-65.4% |
|
|
65 |
|
|
167 |
|
-61.1% |
Income tax provision |
|
13 |
|
|
31 |
|
-58.1% |
|
|
17 |
|
|
39 |
|
-56.4% |
Income from continuing operations |
|
31 |
|
|
96 |
|
-67.7% |
|
|
48 |
|
|
128 |
|
-62.5% |
Income (loss) from discontinued operations, net of taxes |
|
2 |
|
|
45 |
|
-95.6% |
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(1) |
|
|
501 |
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-100.2% |
Net income attributable to XPO |
$ |
33 |
|
$ |
141 |
|
-76.6% |
|
$ |
47 |
|
$ |
629 |
|
-92.5% |
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|
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Net income (loss) attributable to common
shareholders |
|
|
|
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|
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|
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Continuing operations |
$ |
31 |
|
$ |
96 |
|
|
|
$ |
48 |
|
$ |
128 |
|
|
Discontinued operations |
|
2 |
|
|
45 |
|
|
|
|
(1) |
|
|
501 |
|
|
Net income attributable to common shareholders |
$ |
33 |
|
$ |
141 |
|
|
|
$ |
47 |
|
$ |
629 |
|
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|
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|
|
Basic earnings (loss) per share attributable to common
shareholders (1) |
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.27 |
|
$ |
0.83 |
|
|
|
$ |
0.42 |
|
$ |
1.12 |
|
|
Discontinued operations |
|
0.01 |
|
|
0.40 |
|
|
|
|
(0.01) |
|
|
4.36 |
|
|
Basic earnings per share attributable to common shareholders |
$ |
0.28 |
|
$ |
1.23 |
|
|
|
$ |
0.41 |
|
$ |
5.48 |
|
|
Diluted earnings (loss) per share attributable to common
shareholders (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.27 |
|
$ |
0.83 |
|
|
|
$ |
0.41 |
|
$ |
1.11 |
|
|
Discontinued operations |
|
0.01 |
|
|
0.39 |
|
|
|
|
(0.01) |
|
|
4.33 |
|
|
Diluted earnings per share attributable to common shareholders |
$ |
0.28 |
|
$ |
1.22 |
|
|
|
$ |
0.40 |
|
$ |
5.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Basic weighted-average common shares outstanding |
|
116 |
|
|
115 |
|
|
|
|
116 |
|
|
115 |
|
|
Diluted weighted-average common shares outstanding |
|
118 |
|
|
116 |
|
|
|
|
117 |
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
(1) The sum of quarterly earnings per share may not equal
year-to-date amounts due to differences in the weighted-average
number of shares outstanding during the respective periods. |
XPO, Inc. |
Condensed Consolidated Balance Sheets |
(Unaudited) |
(In millions, except per share data) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
2023 |
|
2022 |
ASSETS |
|
|
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|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
290 |
|
$ |
460 |
Accounts receivable, net of allowances of $46 and $43,
respectively |
|
1,008 |
|
|
954 |
Other current assets |
|
224 |
|
|
199 |
Current assets of discontinued operations |
|
- |
|
|
17 |
Total current assets |
|
1,522 |
|
|
1,630 |
Long-term assets |
|
|
|
|
|
Property and equipment, net of $1,795 and $1,679 in accumulated
depreciation, respectively |
|
2,037 |
|
|
1,832 |
Operating lease assets |
|
704 |
|
|
719 |
Goodwill |
|
1,493 |
|
|
1,472 |
Identifiable intangible assets, net of $423 and $392 in accumulated
amortization, respectively |
|
383 |
|
|
407 |
Other long-term assets |
|
213 |
|
|
209 |
Total long-term assets |
|
4,830 |
|
|
4,639 |
Total assets |
$ |
6,352 |
|
$ |
6,269 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
464 |
|
$ |
521 |
Accrued expenses |
|
800 |
|
|
774 |
Short-term borrowings and current maturities of long-term debt |
|
66 |
|
|
59 |
Short-term operating lease liabilities |
|
110 |
|
|
107 |
Other current liabilities |
|
93 |
|
|
30 |
Current liabilities of discontinued operations |
|
- |
|
|
16 |
Total current liabilities |
|
1,533 |
|
|
1,507 |
Long-term liabilities |
|
|
|
|
|
Long-term debt |
|
2,452 |
|
|
2,473 |
Deferred tax liability |
|
301 |
|
|
319 |
Employee benefit obligations |
|
91 |
|
|
93 |
Long-term operating lease liabilities |
|
592 |
|
|
606 |
Other long-term liabilities |
|
264 |
|
|
259 |
Total long-term liabilities |
|
3,700 |
|
|
3,750 |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Common stock, $0.001 par value; 300 shares authorized; 116 and 115
shares issued and |
|
|
|
|
|
outstanding as of June 30, 2023 and December 31, 2022,
respectively |
|
- |
|
|
- |
Additional paid-in capital |
|
1,268 |
|
|
1,238 |
Retained earnings (accumulated deficit) |
|
43 |
|
|
(4) |
Accumulated other comprehensive loss |
|
(192) |
|
|
(222) |
Total equity |
|
1,119 |
|
|
1,012 |
Total liabilities and equity |
$ |
6,352 |
|
$ |
6,269 |
XPO, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
Cash flows from operating activities of continuing
operations |
|
|
|
|
|
Net income |
$ |
47 |
|
$ |
629 |
Income (loss) from discontinued operations, net of taxes |
|
(1) |
|
|
501 |
Income from continuing operations |
|
48 |
|
|
128 |
Adjustments to reconcile income from continuing operations
to net cash from operating activities |
|
|
|
|
|
|
Depreciation, amortization and net lease activity |
|
208 |
|
|
190 |
|
Stock compensation expense |
|
41 |
|
|
14 |
|
Accretion of debt |
|
7 |
|
|
8 |
|
Deferred tax expense (benefit) |
|
(6) |
|
|
22 |
|
Gains on sales of property and equipment |
|
(5) |
|
|
(2) |
|
Other |
|
39 |
|
|
37 |
Changes in assets and liabilities |
|
|
|
|
|
|
Accounts receivable |
|
(64) |
|
|
(241) |
|
Other assets |
|
(31) |
|
|
(38) |
|
Accounts payable |
|
(57) |
|
|
72 |
|
Accrued expenses and other liabilities |
|
27 |
|
|
167 |
Net cash provided by operating activities from continuing
operations |
|
207 |
|
|
357 |
Cash flows from investing activities of continuing
operations |
|
|
|
|
|
|
Payment for purchases of property and equipment |
|
(355) |
|
|
(242) |
|
Proceeds from sale of property and equipment |
|
13 |
|
|
7 |
|
Proceeds from settlement of cross currency swaps |
|
- |
|
|
19 |
Net cash used in investing activities from continuing
operations |
|
(342) |
|
|
(216) |
Cash flows from financing activities of continuing
operations |
|
|
|
|
|
|
Proceeds from issuance of debt |
|
1,977 |
|
|
- |
|
Repurchase of debt |
|
(2,003) |
|
|
(651) |
|
Proceeds from borrowings on ABL facility |
|
- |
|
|
275 |
|
Repayment of borrowings on ABL facility |
|
- |
|
|
(275) |
|
Repayment of debt and finance leases |
|
(35) |
|
|
(32) |
|
Payment for debt issuance costs |
|
(15) |
|
|
- |
|
Change in bank overdrafts |
|
51 |
|
|
25 |
|
Payment for tax withholdings for restricted shares |
|
(12) |
|
|
(13) |
|
Other |
|
1 |
|
|
(2) |
Net cash used in financing activities from continuing
operations |
|
(36) |
|
|
(673) |
Cash flows from discontinued operations |
|
|
|
|
|
|
Operating activities of discontinued operations |
|
(8) |
|
|
39 |
|
Investing activities of discontinued operations |
|
1 |
|
|
680 |
Net cash provided by (used in) discontinued
operations |
|
(7) |
|
|
719 |
Effect of exchange rates on cash, cash equivalents and restricted
cash |
|
5 |
|
|
(14) |
Net increase (decrease) in cash, cash equivalents and
restricted cash |
|
(173) |
|
|
173 |
Cash, cash equivalents and restricted cash, beginning of
period |
|
470 |
|
|
273 |
Cash, cash equivalents and restricted cash, end of
period |
|
297 |
|
|
446 |
Less: Cash, cash equivalents and restricted cash of
discontinued operations, end of period |
|
- |
|
|
212 |
Cash, cash equivalents and restricted cash of continuing
operations, end of period |
$ |
297 |
|
$ |
234 |
North American Less-Than-Truckload Segment |
Summary Financial Table |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (excluding fuel surcharge revenue) |
$ |
940 |
|
|
949 |
|
-0.9% |
|
$ |
1,843 |
|
$ |
1,849 |
|
-0.3% |
Fuel surcharge revenue |
|
196 |
|
|
291 |
|
-32.6% |
|
|
413 |
|
|
498 |
|
-17.1% |
Revenue |
|
1,136 |
|
|
1,240 |
|
-8.4% |
|
|
2,256 |
|
|
2,347 |
|
-3.9% |
Salaries, wages and employee benefits |
|
573 |
|
|
548 |
|
4.6% |
|
|
1,128 |
|
|
1,068 |
|
5.6% |
Purchased transportation |
|
87 |
|
|
134 |
|
-35.1% |
|
|
186 |
|
|
270 |
|
-31.1% |
Fuel, operating expenses and supplies (1) |
|
226 |
|
|
257 |
|
-12.1% |
|
|
474 |
|
|
489 |
|
-3.1% |
Operating taxes and licenses |
|
12 |
|
|
11 |
|
9.1% |
|
|
24 |
|
|
24 |
|
0.0% |
Insurance and claims |
|
33 |
|
|
32 |
|
3.1% |
|
|
61 |
|
|
67 |
|
-9.0% |
(Gains) losses on sales of property and equipment |
|
1 |
|
|
- |
|
100.0% |
|
|
2 |
|
|
- |
|
100.0% |
Depreciation and amortization |
|
71 |
|
|
59 |
|
20.3% |
|
|
139 |
|
|
115 |
|
20.9% |
Transaction and integration costs |
|
- |
|
|
2 |
|
-100.0% |
|
|
- |
|
|
2 |
|
-100.0% |
Restructuring costs |
|
4 |
|
|
- |
|
100.0% |
|
|
10 |
|
|
3 |
|
233.3% |
Operating income |
|
129 |
|
|
197 |
|
-34.5% |
|
|
232 |
|
|
309 |
|
-24.9% |
Operating ratio (2) |
|
88.7% |
|
|
84.1% |
|
|
|
|
89.7% |
|
|
86.8% |
|
|
Amortization expense |
|
9 |
|
|
9 |
|
|
|
|
17 |
|
|
17 |
|
|
Transaction and integration costs |
|
- |
|
|
2 |
|
|
|
|
- |
|
|
2 |
|
|
Restructuring costs |
|
4 |
|
|
- |
|
|
|
|
10 |
|
|
3 |
|
|
Gains on real estate transactions |
|
- |
|
|
- |
|
|
|
|
- |
|
|
- |
|
|
Adjusted operating income (3) |
$ |
142 |
|
|
208 |
|
-31.7% |
|
$ |
259 |
|
$ |
331 |
|
-21.8% |
Adjusted operating ratio (3) (4) |
|
87.6% |
|
|
83.2% |
|
|
|
|
88.5% |
|
|
85.9% |
|
|
Depreciation expense |
|
62 |
|
|
50 |
|
|
|
|
122 |
|
|
98 |
|
|
Pension income |
|
4 |
|
|
15 |
|
|
|
|
8 |
|
|
30 |
|
|
Gains on real estate transactions |
|
- |
|
|
- |
|
|
|
|
- |
|
|
- |
|
|
Other |
|
- |
|
|
1 |
|
|
|
|
1 |
|
|
1 |
|
|
Adjusted EBITDA (5) |
$ |
208 |
|
|
274 |
|
-24.1% |
|
$ |
390 |
|
$ |
460 |
|
-15.2% |
Adjusted EBITDA margin (6) |
|
18.3% |
|
|
22.1% |
|
|
|
|
17.3% |
|
|
19.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fuel, operating expenses and supplies includes
fuel-related taxes. |
(2) Operating ratio is calculated as (1 - (Operating income
divided by Revenue)). |
(3) See the “Non-GAAP Financial Measures” section of the press
release. |
(4) Adjusted operating ratio is calculated as (1 - (Adjusted
operating income divided by Revenue)); adjusted operating margin is
the inverse of adjusted operating ratio. |
(5) Adjusted EBITDA is used by our chief operating decision
maker to evaluate segment profit (loss) in accordance with ASC
280. |
(6) Adjusted EBITDA margin is calculated as Adjusted EBITDA
divided by Revenue. |
North American Less-Than-Truckload |
Summary Data Table |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pounds per day (thousands) |
|
70,290 |
|
|
72,333 |
|
-2.8% |
|
|
69,587 |
|
|
71,250 |
|
-2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments per day |
|
51,220 |
|
|
50,274 |
|
1.9% |
|
|
50,159 |
|
|
49,316 |
|
1.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average weight per shipment (in pounds) |
|
1,372 |
|
|
1,439 |
|
-4.7% |
|
|
1,387 |
|
|
1,445 |
|
-4.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue per shipment |
$ |
348.86 |
|
$ |
388.10 |
|
-10.1% |
|
$ |
352.40 |
|
$ |
372.77 |
|
-5.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue per hundredweight (including fuel
surcharges) (1) |
$ |
26.01 |
|
$ |
27.68 |
|
-6.0% |
|
$ |
26.00 |
|
$ |
26.54 |
|
-2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue per hundredweight (excluding fuel
surcharges) (1) |
$ |
21.63 |
|
$ |
21.34 |
|
1.4% |
|
$ |
21.34 |
|
$ |
21.05 |
|
1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average length of haul (in miles) |
|
836.7 |
|
|
826.3 |
|
|
|
|
834.1 |
|
|
830.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average load factor (2) |
|
22,822 |
|
|
23,955 |
|
-4.7% |
|
|
22,956 |
|
|
24,086 |
|
-4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average age of tractor fleet (years) |
|
5.1 |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of working days |
|
63.5 |
|
|
64.0 |
|
|
|
|
127.5 |
|
|
127.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gross revenue per hundredweight excludes the adjustment
required for financial statement purposes in accordance with the
company's revenue recognition policy. |
(2) Total average load factor equals freight pound miles
divided by total linehaul miles. |
Note: Table excludes the company's trailer manufacturing
operations. |
European Transportation Segment |
Summary Financial Table |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
781 |
|
$ |
807 |
|
-3.2% |
|
$ |
1,568 |
|
$ |
1,594 |
|
-1.6% |
Salaries, wages and employee benefits |
|
203 |
|
|
185 |
|
9.7% |
|
|
406 |
|
|
370 |
|
9.7% |
Purchased transportation |
|
357 |
|
|
391 |
|
-8.7% |
|
|
715 |
|
|
765 |
|
-6.5% |
Fuel, operating expenses and supplies (1) |
|
162 |
|
|
166 |
|
-2.4% |
|
|
337 |
|
|
340 |
|
-0.9% |
Operating taxes and licenses |
|
3 |
|
|
2 |
|
50.0% |
|
|
6 |
|
|
5 |
|
20.0% |
Insurance and claims |
|
13 |
|
|
15 |
|
-13.3% |
|
|
28 |
|
|
29 |
|
-3.4% |
Gains on sales of property and equipment |
|
(3) |
|
|
(1) |
|
200.0% |
|
|
(7) |
|
|
(2) |
|
250.0% |
Depreciation and amortization |
|
33 |
|
|
32 |
|
3.1% |
|
|
65 |
|
|
65 |
|
0.0% |
Transaction and integration costs |
|
- |
|
|
1 |
|
-100.0% |
|
|
1 |
|
|
3 |
|
-66.7% |
Restructuring costs |
|
1 |
|
|
1 |
|
0.0% |
|
|
8 |
|
|
3 |
|
166.7% |
Operating income |
$ |
12 |
|
$ |
15 |
|
-20.0% |
|
$ |
9 |
|
$ |
16 |
|
-43.8% |
Amortization expense |
|
5 |
|
|
5 |
|
|
|
|
10 |
|
|
10 |
|
|
Transaction and integration costs |
|
- |
|
|
1 |
|
|
|
|
1 |
|
|
3 |
|
|
Restructuring costs |
|
1 |
|
|
1 |
|
|
|
|
8 |
|
|
3 |
|
|
Adjusted operating income (2) |
$ |
18 |
|
$ |
22 |
|
-18.2% |
|
$ |
28 |
|
$ |
32 |
|
-12.5% |
Depreciation expense |
|
28 |
|
|
27 |
|
|
|
|
55 |
|
|
55 |
|
|
Adjusted EBITDA (3) |
|
46 |
|
|
49 |
|
-6.1% |
|
|
83 |
|
|
87 |
|
-4.6% |
Adjusted EBITDA margin (4) |
|
6.0% |
|
|
6.0% |
|
|
|
|
5.3% |
|
|
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Fuel, operating expenses and supplies includes
fuel-related taxes. |
(2) See the “Non-GAAP Financial Measures” section of the press
release. |
(3) Adjusted EBITDA is used by our chief operating decision
maker to evaluate segment profit (loss) in accordance with ASC
280. |
(4) Adjusted EBITDA margin is calculated as Adjusted EBITDA
divided by Revenue. |
Corporate |
Summary Financial Table |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
- |
|
$ |
- |
|
0.0% |
|
$ |
- |
|
$ |
- |
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
|
7 |
|
|
19 |
|
-63.2% |
|
|
11 |
|
|
39 |
|
-71.8% |
Fuel, operating expenses and supplies |
|
2 |
|
|
11 |
|
-81.8% |
|
|
6 |
|
|
23 |
|
-73.9% |
Operating taxes and licenses |
|
- |
|
|
- |
|
0.0% |
|
|
- |
|
|
- |
|
0.0% |
Insurance and claims |
|
- |
|
|
1 |
|
-100.0% |
|
|
1 |
|
|
8 |
|
-87.5% |
Depreciation and amortization |
|
3 |
|
|
5 |
|
-40.0% |
|
|
4 |
|
|
10 |
|
-60.0% |
Transaction and integration costs |
|
17 |
|
|
4 |
|
325.0% |
|
|
38 |
|
|
9 |
|
322.2% |
Restructuring costs |
|
5 |
|
|
1 |
|
400.0% |
|
|
16 |
|
|
2 |
|
700.0% |
Operating loss |
$ |
(34) |
|
$ |
(41) |
|
-17.1% |
|
$ |
(76) |
|
$ |
(91) |
|
-16.5% |
Other income (expense) (1) |
|
(1) |
|
|
(3) |
|
|
|
|
(1) |
|
|
(4) |
|
|
Depreciation and amortization |
|
3 |
|
|
5 |
|
|
|
|
4 |
|
|
10 |
|
|
Transaction and integration costs |
|
17 |
|
|
4 |
|
|
|
|
38 |
|
|
9 |
|
|
Restructuring costs |
|
5 |
|
|
1 |
|
|
|
|
16 |
|
|
2 |
|
|
Adjusted EBITDA (2) |
$ |
(10) |
|
$ |
(34) |
|
-70.6% |
|
$ |
(19) |
|
$ |
(74) |
|
-74.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other income (expense) consists of foreign currency gain
(loss) and other income (expense). |
(2) See the “Non-GAAP Financial Measures” section of the press
release. |
XPO, Inc. |
Reconciliation of Non-GAAP Measures |
(Unaudited) |
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
Change % |
|
2023 |
|
2022 |
|
Change % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income from Continuing Operations to
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to common
shareholders |
$ |
31 |
|
$ |
96 |
|
-67.7% |
|
$ |
48 |
|
$ |
128 |
|
-62.5% |
Debt extinguishment loss |
|
23 |
|
|
26 |
|
|
|
|
23 |
|
|
26 |
|
|
Interest expense |
|
43 |
|
|
31 |
|
|
|
|
85 |
|
|
68 |
|
|
Income tax provision |
|
13 |
|
|
31 |
|
|
|
|
17 |
|
|
39 |
|
|
Depreciation and amortization expense |
|
107 |
|
|
96 |
|
|
|
|
208 |
|
|
190 |
|
|
Transaction and integration costs |
|
17 |
|
|
7 |
|
|
|
|
39 |
|
|
14 |
|
|
Restructuring costs |
|
10 |
|
|
2 |
|
|
|
|
34 |
|
|
8 |
|
|
Adjusted EBITDA (1) |
$ |
244 |
|
$ |
289 |
|
-15.6% |
|
$ |
454 |
|
$ |
473 |
|
-4.0% |
Revenue |
$ |
1,917 |
|
$ |
2,047 |
|
-6.4% |
|
$ |
3,824 |
|
$ |
3,941 |
|
-3.0% |
Adjusted EBITDA margin (1) (2) |
|
12.7% |
|
|
14.1% |
|
|
|
|
11.9% |
|
|
12.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the “Non-GAAP Financial Measures” section of the press
release. |
(2) Adjusted EBITDA margin is calculated as Adjusted EBITDA
divided by Revenue. |
XPO, Inc. |
Reconciliation of Non-GAAP Measures (cont.) |
(Unaudited) |
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income from Continuing Operations and
Diluted Earnings Per Share from Continuing Operations to Adjusted
Net Income from Continuing Operations and Adjusted Earnings Per
Share from Continuing Operations |
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable to common
shareholders |
$ |
31 |
|
$ |
96 |
|
$ |
48 |
|
$ |
128 |
|
Debt extinguishment loss |
|
23 |
|
|
26 |
|
|
23 |
|
|
26 |
|
Amortization of acquisition-related intangible assets |
|
14 |
|
|
13 |
|
|
27 |
|
|
27 |
|
Transaction and integration costs |
|
17 |
|
|
7 |
|
|
39 |
|
|
14 |
|
Restructuring costs |
|
10 |
|
|
2 |
|
|
34 |
|
|
8 |
|
Income tax associated with the adjustments above (1) |
|
(12) |
|
|
(12) |
|
|
(23) |
|
|
(18) |
Adjusted net income from continuing operations attributable
to |
|
|
|
|
|
|
|
|
|
|
|
|
common shareholders (2) |
$ |
83 |
|
$ |
132 |
|
$ |
148 |
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings from continuing operations per
share (2) |
$ |
0.71 |
|
$ |
1.14 |
|
$ |
1.27 |
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
118 |
|
|
116 |
|
|
117 |
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This line item reflects the aggregate tax benefit of all
non-tax related adjustments reflected in the table above. The
detail by line item is as follows: |
|
Debt extinguishment loss |
$ |
5 |
|
$ |
6 |
|
$ |
5 |
|
$ |
6 |
|
Amortization of acquisition-related intangible assets |
|
3 |
|
|
3 |
|
|
6 |
|
|
6 |
|
Transaction and integration costs |
|
2 |
|
|
1 |
|
|
5 |
|
|
3 |
|
Restructuring costs |
|
2 |
|
|
2 |
|
|
7 |
|
|
3 |
|
|
$ |
12 |
|
$ |
12 |
|
$ |
23 |
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The income tax rate applied to reconciling items is based on the
GAAP annual effective tax rate, excluding discrete items,
non-deductible compensation, and contribution- and margin-based
taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) See the "Non-GAAP Financial Measures" section of the press
release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Reconciliation of Cash Flows from Operating Activities of
Continuing Operations to Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing
operations |
$ |
131 |
|
$ |
169 |
|
$ |
207 |
|
$ |
357 |
|
Payment for purchases of property and equipment |
|
(131) |
|
|
(119) |
|
|
(355) |
|
|
(242) |
|
Proceeds from sale of property and equipment |
|
5 |
|
|
4 |
|
|
13 |
|
|
7 |
Free Cash Flow (1) |
$ |
5 |
|
$ |
54 |
|
$ |
(135) |
|
$ |
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the "Non-GAAP Financial Measures" section of the press
release. |
XPO (NYSE:XPO)
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