XPO Announces Financial Results for Fourth Quarter/Year End

February 8, 2023  by HFBusiness Staff in Business Strategy, Industry   

The company reported a net loss from continuing operations attributable to common shareholders of $36 million for the fourth quarter 2022, or a diluted loss from continuing operations per share of $0.31, compared with net income from continuing operations attributable to common shareholders of $47 million, or diluted earnings from continuing operations per share of $0.40, for the same period in 2021.

The fourth quarter 2022 net loss includes three impacts primarily related to the RXO spin-off completed in November: i) a $64 million non-cash goodwill impairment charge related to European Transportation, which became a new segment of XPO, requiring goodwill to be evaluated on a disaggregated basis; ii) $42 million of transaction and integration costs; and iii) $35 million of restructuring charges.

Adjusted net income from continuing operations attributable to common shareholders, a non-GAAP financial measure, increased to $113 million for the fourth quarter, compared with $74 million for the same period in 2021.

Adjusted diluted earnings from continuing operations per share (“adjusted EPS”), a non-GAAP financial measure, was $0.98 for the fourth quarter, compared with $0.64 for the same period in 2021.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, increased to $262 million for the fourth quarter, compared with $190 million for the same period in 2021.

For the fourth quarter 2022, the company generated $196 million of cash flow from operating activities and $107 million of free cash flow, a non-GAAP financial measure.

Mario Harik, chief executive officer of XPO, said, “In the fourth quarter, we reported solid revenue growth and strong year-over-year increases in adjusted EBITDA, adjusted EPS and free cash flow.”

“Our North American LTL business achieved a 26% increase in operating income and a 20% increase in adjusted EBITDA. We’re pleased that we delivered over $1 billion of LTL adjusted EBITDA for our shareholders in 2022, exceeding our target.”

Harik continued, “Our growth plan for LTL is to invest in capacity ahead of demand and earn market share by providing best-in-class service. In the fourth quarter, we grew tonnage and shipment count year-over-year at a time when the industry saw these metrics decline.”

“Yield came in at the low end of our outlook, reflecting a strategic change in channel mix that we believe will be a tailwind for both volume and yield as freight demand improves. In January, our tonnage was up year-over-year and trended better than typical seasonality.”

Harik conclued, “We’re excited by the strong trajectory we’ve created, and the tangible ways we're strengthening our positioning. In LTL, our employee satisfaction was up sharply to the highest rating in more than a decade. In Europe, the business is continuing to perform above expectations. We’re confident that we’ll achieve our long-term LTL outlook and deliver superior shareholder value."