checkAd

TFI International Announces 2020 Fourth Quarter and Full-Year Results

Nachrichtenquelle: globenewswire
08.02.2021, 22:57  |  110   |   |   

  • Elective change of presentation currency to U.S. dollars effective on December 31, 2020
  • Fourth quarter diluted EPS from continuing operations of $0.91 (CAD $1.18) up from $0.70 (CAD $0.92) in Q4 2019, while adjusted diluted EPS1 of $0.98 (CAD $1.27) increased from $0.72 (CAD $0.95)
  • Fourth quarter operating income from continuing operations of $117.1 million increased from $92.8 million in Q4 2019
  • Fourth quarter net cash from continuing operating activities of $164.9 million increased from $133.3 million in Q4 2019
  • Annual diluted EPS from continuing operations of $3.03 (CAD $4.06) up from $2.86 (CAD $3.80) in 2019, while adjusted diluted EPS1 of $3.30 (CAD $4.39) increased from $2.97 (CAD $3.94)

MONTREAL, Feb. 08, 2021 (GLOBE NEWSWIRE) -- TFI International Inc. (NYSE and TSX: TFII), a North American leader in the transportation and logistics industry, today announced its results for the fourth quarter and full year ended December 31, 2020.

“TFI International had a successful 2020 that began with our listing on the New York Stock exchange and culminated with our robust fourth quarter results that featured a 26% increase in operating income and a 36% increase in adjusted diluted EPS,” said Alain Bédard, Chairman, President and Chief Executive Officer. “Throughout the ongoing global pandemic, we’ve remained true to our operating philosophy including our asset-right business plan and an emphasis on free cash flow that we put toward growth objectives while returning excess capital to our shareholders. We strategically made thirteen acquisitions during 2020 including five during the fourth quarter, and in the new year have already announced two additional strategic acquisitions, including the transformational purchase of UPS Freight. I wish to thank all of our employees for their extraordinary efforts during an unprecedented year, placing TFI International in an enviable position of strength to create additional shareholder value as we move through 2021.”

SELECTED FINANCIAL DATA AND HIGHLIGHTS (UNAUDITED)

Financial highlights Quarters ended
December 31
  Years ended
December 31
 
(in millions of U.S. dollars, except per share data) 2020   2019*   2020   2019*  
Total revenue 1,122.0   989.0   3,781.1   3,903.5  
Revenue before fuel surcharge 1,048.1   883.7   3,484.3   3,477.6  
Adjusted EBITDA1 193.5   163.4   699.6   649.0  
Operating income from continuing operations 117.1   92.8   416.6   382.9  
Net cash from continuing operating activities 164.9   133.3   610.9   500.5  
Adjusted net income1 93.4   60.1   299.8   253.6  
Adjusted EPS - diluted1 ($) 0.98   0.72   3.30   2.97  
Net income from continuing operations 86.3   58.0   275.7   244.2  
EPS from continuing operations - diluted ($) 0.91   0.70   3.03   2.86  
Weighted average number of shares ('000s) 93,374   81,551   89,113   83,390  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.
1 This is a non-IFRS measure. For a reconciliation, please refer to the “Non-IFRS Financial Measures” section below.

FOURTH QUARTER RESULTS
Total revenue of $1.12 billion was up 13% and, net of fuel surcharge, revenue of $1.05 billion was up 19% compared to the prior year period.

Operating income from continuing operations grew 26% to $117.1 million from $92.8 million the prior year period, primarily driven by acquisitions, strong execution across the organization, increased quality of revenue, an asset-right approach, cost efficiencies, and Canadian Emergency Wage Subsidy contributions of $6.3 million.

Net income from continuing operations grew 49% to $86.3 million from $58.0 million the prior year period, and net income from continuing operations of $0.91 (CAD $1.18) per diluted share was up relative to $0.70 (CAD $0.92) the prior year period. Adjusted net income, a non-IFRS measure, was $93.4 million, or $0.98 (CAD $1.27) per diluted share, as compared to $60.1 million, or $0.72 (CAD $0.95) per diluted share, the prior year period.

Total revenue grew 16% for Package and Courier, 2% for Truckload and 59% for Logistics, and declined 10% for Less-Than-Truckload, relative to the prior year period. Operating income was higher across all segments in Q4 in comparison to the prior-year.

FULL-YEAR RESULTS
Total revenue was $3.78 billion for 2020 versus $3.90 billion in 2019. Net of fuel surcharge, revenue was $3.48 billion, flat with the prior year.

Operating income from continuing operations totalled $416.6 million, or 12.0% of revenue before fuel surcharge, an increase of 9% compared to $382.9 million and 11.0% of revenue before fuel surcharge in the prior year. The increase is mainly attributable to the Canadian Emergency Wage Subsidy of $52.3 million offset by a decrease in revenues due to the COVID-19 pandemic.

Net income from continuing operations was $275.7 million, or $3.03 (CAD $4.06) per diluted share, compared to $244.2 million, or $2.86 (CAD $3.80) per diluted share a year earlier. Adjusted net income from continuing operations, a non-IFRS measure, was $299.8 million, or $3.30 (CAD $4.39) per diluted share, compared to $253.6 million, or $2.97 (CAD $3.94) per diluted share the prior year period.

During 2020, total revenue grew 22% for Logistics, and declined 2% for Package and Courier, 19% for Less-Than-Truckload and 8% for Truckload relative to 2019. Operating income was up 7% for Less-Than-Truckload, 7% for Truckload and 48% for Logistics, and down 4% for Package and Courier.

SEGMENTED RESULTS

To facilitate the comparison of business level activity and operating costs between periods, the Company compares the revenue before fuel surcharge (“revenue”) and reallocates the fuel surcharge revenue to materials and services expenses within operating expenses. Note that “Total revenue” is not affected by this reallocation.

Selected segmented financial information

(unaudited)
(in thousands of U.S. dollars)
Package
and
Courier
  Less-
Than-Truckload
  Truckload  
Logistics
  Corporate   Eliminations   Total  
Three months ended December 31, 2020                            
Revenue before fuel surcharge1 154,094   141,081   438,135   322,319     (7,482 ) 1,048,147  
% of total revenue2 15 % 14 % 42 % 29 %         100 %
Adjusted EBITDA 35,934   37,084   101,383   35,809   (16,672 )   193,538  
Adjusted EBITDA margin3 23.3 % 26.3 % 23.1 % 11.1 %         18.5 %
Operating income (loss) 29,401   24,464   53,604   26,462   (16,809 )   117,122  
Operating margin3 19.1 % 17.3 % 12.2 % 8.2 %         11.2 %
Net capital expenditures4 2,550   6,194   21,155   70   244     30,213  
Three months ended December 31, 2019*                            
Revenue before fuel surcharge1 127,301   151,303   412,760   198,961     (6,608 ) 883,717  
% of total revenue2 15 % 18 % 47 % 20 %         100 %
Adjusted EBITDA 29,295   31,269   90,447   21,933   (9,547 )   163,397  
Adjusted EBITDA margin3 23.0 % 20.7 % 21.9 % 11.0 %         18.5 %
Operating income (loss) 22,680   19,311   46,417   14,216   (9,840 )   92,784  
Operating margin3 17.8 % 12.8 % 11.2 % 7.1 %         10.5 %
Net capital expenditures4 3,321   27,945   17,783   1,002   5,158     55,209  
YTD December 31, 2020                            
Revenue before fuel surcharge1 481,490   522,851   1,584,837   923,456     (28,331 ) 3,484,303  
% of total revenue2 14 % 15 % 46 % 25 %         100 %
Adjusted EBITDA 104,019   138,361   383,155   113,885   (39,831 )   699,589  
Adjusted EBITDA margin3 21.6 % 26.5 % 24.2 % 12.3 %         20.1 %
Operating income (loss) 78,753   87,950   206,346   84,459   (40,941 )   416,567  
Operating margin3 16.4 % 16.8 % 13.0 % 9.1 %         12.0 %
Total assets less intangible assets 194,631   404,074   1,193,730   272,592   34,564     2,099,591  
Net capital expenditures4 16,798   19,230   29,179   567   444     66,218  
YTD December 31, 2019*                            
Revenue before fuel surcharge1 473,666   627,219   1,657,797   745,322     (26,428 ) 3,477,576  
% of total revenue2 14 % 18 % 48 % 20 %         100 %
Adjusted EBITDA 106,278   126,641   362,641   83,030   (29,569 )   649,021  
Adjusted EBITDA margin3 22.4 % 20.2 % 21.9 % 11.1 %         18.7 %
Operating income (loss) 82,228   82,230   192,172   57,447   (31,209 )   382,868  
Operating margin3 17.4 % 13.1 % 11.6 % 7.7 %         11.0 %
Total assets less intangible assets 180,811   407,358   1,206,568   159,152   49,771     2,003,660  
Net capital expenditures4 10,967   27,536   108,039   1,995   4,261     152,798  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs
1 Includes intersegment revenue.
2 Segment revenue including fuel and intersegment revenue to consolidated revenue including fuel and intersegment revenue.
3 As a percentage of revenue before fuel surcharge.
4 Additions to rolling stock and equipment, net of proceeds from sale of rolling stock and equipment and assets held for sale excluding property.

CASH FLOW
Net cash from continuing operating activities was $610.9 million during 2020 compared to $500.5 million the prior year. The 22% increase was due to stronger operating performance, reduction of interest payments as a result of lower debt levels, and contributions from acquisitions. The Company returned $105.6 million to shareholders during the year, of which $67.6 million was through dividends and $38.0 million was through share repurchases.

On December 15, 2020, the Board of Directors of TFI International declared a quarterly dividend of $0.23 (CAD $0.29) per outstanding common share payable on January 15, 2021, representing an 14% increase over the $0.20 (CAD $0.26) quarterly dividend declared in Q4 2019.

CHANGE IN PRESENTATION CURRENCY
The Company has elected to change its presentation currency from Canadian dollars (“CAD”) to United States dollars (“U.S. Dollars” or “USD”) effective December 31st, 2020. Due to the Company’s growing market presence in the U.S. with our equity listing in the U.S., financial reporting in USD provides a more relevant presentation of the Company’s financial position in comparison to its peers. The change in presentation currency is a voluntary change which is accounted for retrospectively. For comparative purposes, the historical consolidated financial statements have been restated to U.S. dollars using the procedures outlined below:

  • Consolidated Statements of Income, Comprehensive Income, and Cash Flows have been translated into U.S. dollars using average foreign currency rates prevailing for the relevant periods.
  • Assets and liabilities in the Consolidated Statement of Financial Position have been translated into U.S. dollars at the closing foreign currency rates on the relevant balance sheet dates.
  • Equity in the Consolidated Statement of Financial Position and Consolidated Statements of changes in Equity, including foreign currency translation reserve and net investment hedge, retained earnings, share capital, contributed surplus and other reserves, have been translated into U.S. dollars using historical rates.
  • Consolidated Earnings per share and dividend disclosures have also been translated to U.S. dollars to reflect the change in presentation currency.

The Company has also presented an opening consolidated statement of financial position as at January 1, 2019 in USD, which has been derived from the consolidated financial statements as at and for the year ended December 31, 2018. The Company’s consolidated financial statements will now be presented in U.S. dollars. All information in this press release is presented in USD unless otherwise specified.

The Company’s functional currency remains Canadian dollar. Translation gains and losses from the application of the U.S. dollar as the reporting currency while the Canadian dollar is the functional currency are included as part of the cumulative foreign currency translation adjustment. All financial information presented in U.S. dollars has been rounded to the nearest thousand.

CONFERENCE CALL
TFI International will host a conference call on Monday, February 8, 2021 at 5:00 p.m. Eastern Time to discuss these results.
Interested parties can join the call by dialing 1-877-223-4471. A recording of the call will be available until midnight, February
22, 2021, by dialing 1-800-585-8367 or 416-621-4642 and entering passcode 9095057.

ABOUT TFI INTERNATIONAL
TFI International Inc. is a North American leader in the transportation and logistics industry, operating across the United States, Canada and Mexico through its subsidiaries. TFI International creates value for shareholders by identifying strategic acquisitions and managing a growing network of wholly-owned operating subsidiaries. Under the TFI International umbrella, companies benefit from financial and operational resources to build their businesses and increase their efficiency. TFI International companies service the following segments:

  • Package and Courier;
  • Less-Than-Truckload;
  • Truckload;
  • Logistics.

TFI International Inc. is publicly traded on the New York Stock Exchange and the Toronto Stock Exchange under symbol TFII. For more information, visit www.tfiintl.com.

FORWARD-LOOKING STATEMENTS
The Company may make statements in this report that reflect its current expectations regarding future results of operations, performance and achievements. These are “forward-looking” statements and reflect management’s current beliefs. They are based on information currently available to management. Words such as “may”, “might”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “to its knowledge”, “could”, “design”, “forecast”, “goal”, “hope”, “intend”, “likely”, “predict”, “project”, “seek”, “should”, “target”, “will”, “would” or “continue” and words and expressions of similar import are intended to identify these forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and those presently anticipated or projected.

The Company wishes to caution readers not to place undue reliance on any forward-looking statements which reference issues only as of the date made. The following important factors could cause the Company’s actual financial performance to differ materially from that expressed in any forward-looking statement: the highly competitive market conditions, the Company’s ability to recruit, train and retain qualified drivers, fuel price variations and the Company’s ability to recover these costs from its customers, foreign currency fluctuations, the impact of environmental standards and regulations, changes in governmental regulations applicable to the Company’s operations, adverse weather conditions, accidents, the market for used equipment, changes in interest rates, cost of liability insurance coverage, downturns in general economic conditions affecting the Company and its customers, credit market liquidity, and the Company’s ability to identify, negotiate, consummate, and successfully integrate acquisitions.

The foregoing list should not be construed as exhaustive, and the Company disclaims any subsequent obligation to revise or update any previously made forward-looking statements unless required to do so by applicable securities laws. Unanticipated events are likely to occur. Readers should also refer to the section “Risks and Uncertainties” at the end of the 2020 Q3 MD&A for additional information on risk factors and other events that are not within the Company’s control. The Company’s future financial and operating results may fluctuate as a result of these and other risk factors.

NON-IFRS FINANCIAL MEASURES
This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by International Financial Reporting Standards as issued by the international Accounting Standards Board (IFRS) and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of the non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided in the exhibits.

For further information:
Alain Bédard
Chairman, President and CEO
TFI International Inc.
(647) 729-4079
abedard@tfiintl.com

TFI International Inc.   UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2020 AND 2019
 
(in thousands of U.S. dollars)   As at     As at     As at  
    December 31,
2020
    December 31,
2019*
    January 1,
2019*
 
Assets                        
Cash and cash equivalents     4,297       -       -  
Trade and other receivables     597,873       452,241       463,075  
Inventoried supplies     8,761       10,659       9,350  
Current taxes recoverable     7,606       13,211       9,541  
Prepaid expenses     29,904       27,777       28,256  
Derivative financial instruments     -       30       3,980  
Assets held for sale     4,331       3,561       5,551  
Other assets     -       19,105       -  
Current assets     652,772       526,584       519,753  
Property and equipment     1,074,428       1,125,429       1,023,595  
Right-of-use assets     337,285       334,168       -  
Intangible assets     1,749,773       1,505,160       1,393,854  
Other assets     23,899       8,655       24,685  
Deferred tax assets     11,207       8,824       4,698  
Derivative financial instruments     -       -       2,159  
Non-current assets     3,196,592       2,982,236       2,448,991  
Total assets     3,849,364       3,508,820       2,968,744  
Liabilities                        
Bank indebtedness     -       2,927       9,041  
Trade and other payables     468,238       341,443       348,618  
Current taxes payable     33,220       4,658       13,892  
Provisions     17,452       18,264       18,372  
Other financial liabilities     4,031       2,043       1,446  
Derivative financial instruments     -       649       -  
Long-term debt     42,997       41,305       89,679  
Lease liabilities     88,522       76,326       -  
Current liabilities     654,460       487,615       481,048  
Long-term debt     829,547       1,302,002       1,071,751  
Lease liabilities     267,464       279,265       -  
Employee benefits     15,502       14,310       11,824  
Provisions     36,803       22,522       31,375  
Other financial liabilities     22,699       2,810       4,329  
Derivative financial instruments     -       684       -  
Deferred tax liabilities     232,712       240,320       212,535  
Non-current liabilities     1,404,727       1,861,913       1,331,814  
Total liabilities     2,059,187       2,349,528       1,812,862  
Equity                        
Share capital     1,120,049       678,915       697,232  
Contributed surplus     19,783       19,549       19,082  
Accumulated other comprehensive income     (154,723 )     (173,398 )     (200,029 )
Retained earnings     805,068       634,226       639,597  
Equity attributable to owners of the Company     1,790,177       1,159,292       1,155,882  
Contingencies, letters of credit and other commitments     -       -       -  
Total liabilities and equity     3,849,364       3,508,820       2,968,744  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar 

TFI International Inc. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
YEARS ENDED DECEMBER 31, 2020 AND 2019
(In thousands of U.S. dollars, except per share amounts)                
    2020     2019*  
                 
Revenue     3,484,303       3,477,576  
Fuel surcharge     296,831       425,969  
Total revenue     3,781,134       3,903,545  
                 
Materials and services expenses     2,051,835       2,134,720  
Personnel expenses     888,185       980,785  
Other operating expenses     150,572       156,121  
Depreciation of property and equipment     170,520       168,720  
Depreciation of right-of-use assets     80,496       77,326  
Amortization of intangible assets     48,213       49,701  
Gain on sale of business     (306 )     -  
Bargain purchase gain     (4,008 )     (8,014 )
Gain on sale of rolling stock and equipment     (7,888 )     (15,386 )
Gain on derecognition of right-of-use assets     (1,159 )     (1,716 )
Loss (gain) on sale of land and buildings     6       (9 )
Gain on sale of assets held for sale     (11,899 )     (21,571 )
Total operating expenses     3,364,567       3,520,677  
                 
Operating income     416,567       382,868  
                 
Finance (income) costs                
Finance income     (2,776 )     (2,285 )
Finance costs     56,686       64,392  
Net finance costs     53,910       62,107  
                 
Income before income tax     362,657       320,761  
Income tax expense     86,982       76,536  
Net income from continuing operations     275,675       244,225  
Net loss from discontinued operations     -       (10,548 )
                 
Net income for the year attributable to owners of the Company     275,675       233,677  
                 
Earnings per share attributable to owners of the Company                
Basic earnings per share     3.09       2.80  
Diluted earnings per share     3.03       2.74  
                 
Earnings per share from continuing operations attributable to owners of the Company                
Basic earnings per share     3.09       2.93  
Diluted earnings per share     3.03       2.86  
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar and mark-to-market gain (loss) on deferred share units presentation in personnel expenses from finance (income) costs.  


TFI International Inc. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2020 AND 2019
 
(In thousands of U.S. dollars)    
    2020     2019*  
                 
Net income for the year attributable to owners of the Company     275,675       233,677  
                 
Other comprehensive income (loss)                
Items that may be reclassified to income or loss in future years:                
Foreign currency translation differences     21,182       17,476  
Net investment hedge, net of tax     (2,010 )     12,158  
Changes in fair value of cash flow hedge, net of tax     (487 )     (7,394 )
Employee benefits, net of tax     (10 )     32  
Items that may never be reclassified to income                
Defined benefit plan remeasurement     (1,623 )     (1,228 )
Items directly reclassified to retained earnings:                
Unrealized gain on investment in equity securities measured at fair value                
through OCI, net of tax     -       970  
Other comprehensive income for the year, net of tax     17,052       22,014  
                 
Total comprehensive income for the year attributable to owners of the Company     292,727       255,691  
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar                


TFI International Inc.      UNAUDITED CONSOLIDATED STATEMENTS OF EQUITY
YEARS ENDED DECEMBER 31, 2020 AND 2019
 
(In thousands of U.S. dollars)                                   Accumulated                          
                  Accumulated             foreign     Accumulated                  
                    unrealized             currency     unrealized             Total equity  
                    loss on     Accumulated     translation     loss on             attributable  
                    employee     cash flow     differences     investment in             to owners  
    Share     Contributed     benefit     hedge     and net invest-     equity     Retained     of the  
    capital     surplus     plans     gain (loss)     ment hedge     securities     earnings     Company  
                                                                 
Balance as at December 31, 2019*     678,915       19,549       (369 )     487       (173,516 )     -       634,226       1,159,292  
                                                                 
Net income for the year     -       -       -       -       -       -       275,675       275,675  
Other comprehensive (loss) income for the year, net of tax     -       -       (10 )     (487 )     19,172       -       (1,623 )     17,052  
Total comprehensive (loss) income for the year     -       -       (10 )     (487 )     19,172       -       274,052       292,727  
                                                                 
Share-based payment transactions     -       7,046       -       -       -       -       -       7,046  
Stock options exercised     25,915       (4,554 )     -       -       -       -       -       21,361  
Issuance of shares, net of expenses     425,350       -       -       -       -       -       -       425,350  
Dividends to owners of the Company     -       -       -       -       -       -       (72,735 )     (72,735 )
Repurchase of own shares     (12,025 )     -       -       -       -       -       (25,996 )     (38,021 )
Net settlement of restricted share units     1,894       (2,258 )     -       -       -       -       (4,479 )     (4,843 )
Total transactions with owners, recorded directly in equity     441,134       234       -       -       -       -       (103,210 )     338,158  
                                                                 
Balance as at December 31, 2020     1,120,049       19,783       (379 )     -       (154,344 )     -       805,068       1,790,177  
                                                                 
Balance as at January 1, 2019*     697,232       19,082       (401 )     7,881       (203,150 )     (4,359 )     639,597       1,155,882  
                                                                 
Adjustment on initial application of IFRS 16     -       -       -       -       -       -       (18,880 )     (18,880 )
                                                                 
Net income for the year     -       -       -       -       -       -       233,677       233,677  
Other comprehensive (loss) income for the year, net of tax     -       -       32       (7,394 )     29,634       970       (1,228 )     22,014  
Realized loss on equity securities, net of tax     -       -       -       -       -       3,389       (3,389 )     -  
Total comprehensive (loss) income for the year     -       -       32       (7,394 )     29,634       4,359       229,060       255,691  
                                                                 
Share-based payment transactions     -       6,227       -       -       -       -       -       6,227  
Stock options exercised     20,580       (4,233 )     -       -       -       -       -       16,347  
Dividends to owners of the Company     -       -       -       -       -       -       (61,631 )     (61,631 )
Repurchase of own shares     (39,621 )     -       -       -       -       -       (152,835 )     (192,456 )
Net settlement of restricted share units     724       (1,527 )     -       -       -       -       (1,085 )     (1,888 )
Total transactions with owners, recorded directly in equity     (18,317 )     467       -       -       -       -       (215,551 )     (233,401 )
                                                                 
Balance as at December 31, 2019*     678,915       19,549       (369 )     487       (173,516 )     -       634,226       1,159,292  
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar  

 

TFI International Inc.  UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2020 AND 2019
 
(In thousands of U.S. dollars)              
    2020     2019*  
                 
Cash flows from operating activities                
Net income for the year     275,675       233,677  
Net loss from discontinued operations     -       (10,548 )
Net income from continuing operations     275,675       244,225  
Adjustments for                
Depreciation of property and equipment     170,520       168,720  
Depreciation of right-of-use assets     80,496       77,326  
Amortization of intangible assets     48,213       49,701  
Share-based payment transactions     7,046       6,227  
Net finance costs     53,910       62,107  
Income tax expense     86,982       76,536  
Gain on sale of business     (306 )     -  
Bargain purchase gain     (4,008 )     (8,014 )
Gain on sale of property and equipment     (7,882 )     (15,395 )
Gain on derecognition of right-of-use assets     (1,159 )     (1,716 )
Gain on sale of assets held for sale     (11,899 )     (21,571 )
Provisions and employee benefits     6,274       (3,696 )
      703,862       634,450  
Net change in non-cash operating working capital     33,661       16,337  
Cash generated from operating activities     737,523       650,787  
Interest paid     (50,366 )     (65,075 )
Income tax paid     (73,256 )     (85,216 )
Settlement of derivative contract     (3,039 )     -  
Net cash from continuing operating activities     610,862       500,496  
Net cash used in discontinued operating activities     -       (12,022 )
Net cash from operating activities     610,862       488,474  
                 
Cash flows from investing activities                
Purchases of property and equipment     (142,710 )     (261,295 )
Proceeds from sale of property and equipment     52,116       71,754  
Proceeds from sale of assets held for sale     24,480       39,146  
Purchases of intangible assets     (1,665 )     (3,636 )
Proceeds from sale of business     2,351       -  
Business combinations, net of cash acquired     (327,650 )     (150,912 )
Proceeds from sale of intangible assets     -       201  
Purchases of investments     (7,446 )     (600 )
Proceeds from sale of investments     -       1,814  
Proceeds from collection of promissory notes     18,892       -  
Others     3,151       (329 )
Net cash used in continuing investing activities     (378,481 )     (303,857 )
                 
Cash flows from financing activities                
Decrease in bank indebtedness     (2,231 )     (6,083 )
Proceeds from long-term debt     33,175       328,045  
Repayment of long-term debt     (191,221 )     (103,247 )
Net decrease in revolving facility     (326,201 )     (88,229 )
Repayment of lease liabilities     (82,587 )     (75,072 )
Increase (decrease) in other financial liabilities     4,738       (1,556 )
Dividends paid     (67,604 )     (60,478 )
Repurchase of own shares     (38,021 )     (192,455 )
Proceeds from the issuance of common shares, net of expenses     425,350       -  
Proceeds from exercise of stock options     21,361       16,347  
Repurchase of own shares for restricted share unit settlement     (4,843 )     (1,889 )
Net cash used in continuing financing activities     (228,084 )     (184,617 )
                 
Net change in cash and cash equivalents     4,297       -  
Cash and cash equivalents, beginning of year     -       -  
Cash and cash equivalents, end of year     4,297       -  
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar                

SEGMENT INFORMATION

Geographical information (Unaudited)

Revenue is attributed to geographical locations based on the origin of service’s location.

Total revenue   Package     Less-                                  
    and     Than-                                  
    Courier     Truckload     Truckload     Logistics     Eliminations     Total  
2020                                                
Canada     529,155       517,199       725,347       239,413       (26,019 )     1,985,095  
United States     -       72,036       1,023,012       686,811       (4,726 )     1,777,133  
Mexico     -       -       -       18,906       -       18,906  
Total     529,155       589,235       1,748,359       945,130       (30,745 )     3,781,134  
2019*                                                
Canada     539,610       607,086       799,396       216,232       (28,352 )     2,133,972  
United States     -       120,162       1,092,159       542,911       (1,349 )     1,753,883  
Mexico     -       -       -       15,690       -       15,690  
Total     539,610       727,248       1,891,555       774,833       (29,701 )     3,903,545  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Package and Courier

(unaudited)   Three months ended December 31     Years ended December 31  
(in thousands of U.S. dollars)   2020     %     2019*     %     2020     %     2019*     %  
Total revenue     167,555               145,018               529,155               539,610          
Fuel surcharge     (13,461 )             (17,717 )             (47,665 )             (65,944 )        
Revenue     154,094       100.0 %     127,301       100.0 %     481,490       100.0 %     473,666       100.0 %
Materials and services expenses (net of fuel
surcharge)
    72,115       46.8 %     55,737       43.8 %     220,741       45.8 %     203,441       43.0 %
Personnel expenses     39,821       25.8 %     35,222       27.7 %     133,552       27.7 %     138,125       29.2 %
Other operating expenses     6,234       4.0 %     7,015       5.5 %     23,145       4.8 %     25,973       5.5 %
Depreciation of property and equipment     3,168       2.1 %     2,606       2.0 %     11,539       2.4 %     10,046       2.1 %
Depreciation of right-of-use assets     3,210       2.1 %     3,713       2.9 %     12,871       2.7 %     13,956       2.9 %
Amortization of intangible assets     248       0.2 %     234       0.2 %     947       0.2 %     891       0.2 %
(Gain) loss on sale of rolling stock and equipment     (10 )     0.0 %     47       0.0 %     43       0.0 %     (135 )     -0.0 %
Gain on derecognition of right-of-use assets     -       0.0 %     (15 )     -0.0 %     (10 )     -0.0 %     (16 )     -0.0 %
(Gain) loss on sale of land and buildings and assets
held for sale
    (93 )     (0.1 )%     62       0.0 %     (91 )     -0.0 %     (843 )     -0.2 %
Operating income     29,401       19.1 %     22,680       17.8 %     78,753       16.4 %     82,228       17.4 %
Adjusted EBITDA     35,934       23.3 %     29,295       23.0 %     104,019       21.6 %     106,278       22.4 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Operational data   Three months ended December 31     Years ended December 31  
(unaudited)   2020     2019*     Variance     %     2020     2019*     Variance     %  
Revenue per pound (including fuel)   $ 0.40     $ 0.36     $ 0.04       11.1 %   $ 0.36     $ 0.35     $ 0.01       2.9 %
Revenue per pound (excluding fuel)   $ 0.36     $ 0.31     $ 0.05       16.1 %   $ 0.33     $ 0.31     $ 0.02       6.5 %
Revenue per shipment (including fuel)   $ 6.40     $ 6.52     $ (0.12 )     -1.8 %   $ 6.24     $ 6.29     $ (0.05 )     -0.8 %
Tonnage (in thousands of metric tons)     192       185       7       3.8 %     658       695       (37 )     -5.3 %
Shipments (in thousands)     26,185       22,244       3,941       17.7 %     84,854       85,743       (889 )     -1.0 %
Average weight per shipment (in lbs.)     16.16       18.33       (2.17 )     -11.8 %     17.09       17.86       (0.77 )     -4.3 %
Vehicle count, average     1,008       972       36       3.7 %     1,023       981       42       4.3 %
Weekly revenue per vehicle (incl. fuel, in thousands of dollars)   $ 12.79     $ 11.48     $ 1.31       11.4 %   $ 9.95     $ 10.58     $ (0.63 )     -6.0 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar

Less-Than-Truckload

(unaudited)   Three months ended December 31     Years ended December 31  
(in thousands of U.S. dollars)   2020     %     2019*     %     2020     %     2019*     %  
Total revenue     157,628               175,319               589,235               727,249          
Fuel surcharge     (16,547 )             (24,016 )             (66,384 )             (100,030 )        
Revenue     141,081       100.0 %     151,303       100.0 %     522,851       100.0 %     627,219       100.0 %
Materials and services expenses (net of fuel
surcharge)
    67,140       47.6 %     75,026       49.6 %     252,334       48.3 %     315,648       50.3 %
Personnel expenses     33,338       23.6 %     38,202       25.2 %     116,257       22.2 %     159,820       25.5 %
Other operating expenses     3,587       2.5 %     7,788       5.1 %     16,593       3.2 %     26,720       4.3 %
Depreciation of property and equipment     4,886       3.5 %     5,148       3.4 %     19,407       3.7 %     19,736       3.1 %
Depreciation of right-of-use assets     5,546       3.9 %     6,159       4.1 %     22,555       4.3 %     24,825       4.0 %
Amortization of intangible assets     2,179       1.5 %     2,129       1.4 %     8,392       1.6 %     8,359       1.3 %
Gain on sale of rolling stock and equipment     (62 )     -0.0 %     (147 )     -0.1 %     (519 )     -0.1 %     (510 )     -0.1 %
Gain on derecognition of right-of-use assets     (6 )     -0.0 %     (835 )     -0.6 %     (175 )     -0.0 %     (1,100 )     -0.2 %
Loss (gain) on sale of land and buildings and assets
held for sale
    9       0.0 %     (1,478 )     -1.0 %     57       0.0 %     (8,509 )     -1.4 %
Operating income     24,464       17.3 %     19,311       12.8 %     87,950       16.8 %     82,230       13.1 %
Adjusted EBITDA     37,084       26.3 %     31,269       20.7 %     138,361       26.5 %     126,641       20.2 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Operational data   Three months ended December 31     Years ended December 31  
(unaudited)   2020     2019*     Variance     %     2020     2019*     Variance     %  
Adjusted operating ratio     82.7 %     88.2 %                     83.2 %     88.2 %                
Revenue per hundredweight (excluding fuel)   $ 10.15     $ 9.99       0.16       1.6 %   $ 9.77     $ 10.01     $ (0.24 )     -2.4 %
Revenue per shipment (including fuel)   $ 241.02     $ 253.35     $ (12.33 )     -4.9 %   $ 240.11     $ 242.98     $ (2.87 )     -1.2 %
Tonnage (in thousands of tons)     695       757       (62 )     -8.2 %     2,675       3,132       (457 )     -14.6 %
Shipments (in thousands)     654       692       (38 )     -5.5 %     2,454       2,993       (539 )     -18.0 %
Average weight per shipment (in lbs)     2,125       2,188       (63 )     -2.9 %     2,180       2,093       87       4.2 %
Average length of haul (in miles)     811       839       (28 )     -3.3 %     818       830       (12 )     -1.4 %
Vehicle count, average     902       1,016       (114 )     -11.2 %     918       1,024       (106 )     -10.4 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Truckload

(unaudited)   Three months ended December 31     Years ended December 31  
(in thousands of U.S. dollars)   2020     %     2019*     %     2020     %     2019*     %  
Total revenue     477,262               469,798               1,748,359               1,891,554          
Fuel surcharge     (39,127 )             (57,038 )             (163,522 )             (233,757 )        
Revenue     438,135       100.0 %     412,760       100.0 %     1,584,837       100.0 %     1,657,797       100.0 %
Materials and services expenses (net of fuel
surcharge)
    188,660       43.1 %     178,936       43.4 %     654,220       41.3 %     707,028       42.6 %
Personnel expenses     135,911       31.0 %     134,572       32.6 %     503,242       31.8 %     549,723       33.2 %
Other operating expenses     14,323       3.3 %     12,534       3.0 %     52,337       3.3 %     53,472       3.2 %
Depreciation of property and equipment     34,986       8.0 %     36,218       8.8 %     136,859       8.6 %     136,139       8.2 %
Depreciation of right-of-use assets     10,055       2.3 %     7,091       1.7 %     32,229       2.0 %     24,263       1.5 %
Amortization of intangible assets     5,171       1.2 %     5,678       1.4 %     19,891       1.3 %     22,415       1.4 %
Gain on sale of business     (306 )     -0.1 %           0.0 %     (306 )     -0.0 %           0.0 %
Gain on sale of rolling stock and equipment     (2,129 )     -0.5 %     (3,603 )     -0.9 %     (7,785 )     -0.5 %     (14,698 )     -0.9 %
Gain on derecognition of right-of-use assets     (13 )     -0.0 %     (126 )     -0.0 %     (332 )     -0.0 %     (369 )     -0.0 %
Gain on sale of land and buildings and assets held for
sale
    (2,127 )     -0.5 %     (4,957 )     -1.2 %     (11,864 )     -0.7 %     (12,348 )     -0.7 %
Operating income     53,604       12.2 %     46,417       11.2 %     206,346       13.0 %     192,172       11.6 %
Adjusted EBITDA     101,383       23.1 %     90,447       21.9 %     383,155       24.2 %     362,641       21.9 %
* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.  


Operational data (unaudited)   Three months ended December 31     Years ended December 31  
(in thousands of U.S. dollars)   2020     2019*     Variance     %     2020     2019*     Variance     %  
U.S. based Conventional TL                                                                
Revenue     161,476       156,678       4,798
      3.1 %     632,590       646,782       (14,192 )     -2.2 %
Adjusted operating ratio     91.5 %     92.4 %                     92.0 %     91.5 %                
Total mileage (in thousands)     86,427       84,291       2,136       2.5 %     349,349       351,490       (2,141 )     -0.6 %
Tractor count, average     2,932       2,929       3       0.1 %     2,949       2,960       (11 )     -0.4 %
Trailer count, average     11,005       11,007       (2 )     -0.0 %     10,938       11,008       (70 )     -0.6 %
Tractor age     2.2       1.8       0.4       22.2 %     2.2       1.8       0.4       22.2 %
Trailer age     6.6       6.5       0.1       1.5 %     6.6       6.5       0.1       1.5 %
Number of owner operators, average     560       424       136       32.1 %     509       400       109       27.3 %
Canadian based Conventional TL                                                                
Revenue     58,497       56,668       1,829       3.2 %     206,418       226,816       (20,398 )     -9.0 %
Adjusted operating ratio     85.2 %     85.9 %                     86.3 %     85.6 %                
Total mileage (in thousands)     23,095       24,236       (1,141 )     -4.7 %     89,212       98,943       (9,731 )     -9.8 %
Tractor count, average     623       641       (18 )     -2.8 %     606       684       (78 )     -11.4 %
Trailer count, average     2,809       2,826       (17 )     -0.6 %     2,796       2,884       (88 )     -3.1 %
Tractor age     2.5       2.3       0.2       8.7 %     2.5       2.3       0.2       8.7 %
Trailer age     5.9       5.4       0.5       9.3 %     5.9       5.4       0.5       9.3 %
Number of owner operators, average     314       317       (3 )     -0.9 %     302       333       (31 )     -9.3 %
Specialized TL                                                                
Revenue     219,093       200,452       18,641       9.3 %     749,655       791,087       (41,432 )     -5.2 %
Adjusted operating ratio     86.8 %     89.3 %                     84.6 %     88.3 %                
Tractor count, average     2,314       2,189       125       5.7 %     2,096       2,099       (3 )     -0.1 %
Trailer count, average     6,619       6,142       477       7.8 %     6,251       6,121       130       2.1 %
Tractor age     4.0       4.0       0.0       0.0 %     4.0       4.0       0.0       0.0 %
Trailer age     12.9       11.7       1.2       10.3 %     12.9       11.7       1.2       10.3 %
Number of owner operators, average     1,132       1,224       (92 )     -7.5 %     1,115       1,191       (76 )     -6.4 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Logistics

(unaudited)   Three months ended December 31     Years ended December 31  
(in thousands of U.S. dollars)   2020     %     2019*     %     2020     %     2019*     %  
Total revenue     327,689               206,268               945,130               774,833          
Fuel surcharge     (5,370 )             (7,307 )             (21,674 )             (29,511 )        
Revenue     322,319       100.0 %     198,961       100.0 %     923,456       100.0 %     745,322       100.0 %
Materials and services expenses (net of fuel
surcharge)
    241,798       75.0 %     140,019       70.4 %     668,225       72.4 %     524,098       70.3 %
Personnel expenses     24,381       7.6 %     25,427       12.8 %     93,579       10.1 %     96,593       13.0 %
Other operating expenses     19,983       6.2 %     11,745       5.9 %     48,012       5.2 %     41,865       5.6 %
Depreciation of property and equipment     596       0.2 %     640       0.3 %     2,336       0.3 %     2,147       0.3 %
Depreciation of right-of-use assets     3,138       1.0 %     2,520       1.3 %     13,204       1.4 %     14,148       1.9 %
Amortization of intangible assets     5,608       1.7 %     4,557       2.3 %     17,889       1.9 %     17,302       2.3 %
Bargain purchase gain                       0.0 %     (4,008 )     -0.4 %     (8,014 )     -1.1 %
(Gain) loss on sale of rolling stock and equipment     368       0.1 %     (5 )     -0.0 %     373       0.0 %     (43 )     -0.0 %
Gain on derecognition of right-of-use assets     (20 )     -0.0 %     (158 )     -0.1 %     (618 )     -0.1 %     (221 )     -0.0 %
Loss on sale of land and buildings and assets
held for sale
    5       0.0 %           0.0 %     5       0.0 %           0.0 %
Operating income     26,462       8.2 %     14,216       7.1 %     84,459       9.1 %     57,447       7.7 %
Adjusted EBITDA     35,809       11.1 %     21,933       11.0 %     113,885       12.3 %     83,030       11.1 %

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

NON-IFRS FINANCIAL MEASURES

This press release includes references to certain non-IFRS financial measures as described below. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation, in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. The terms and definitions of IFRS and non-IFRS measures used in this press release and a reconciliation of each non-IFRS measure to the most directly comparable IFRS measure are provided below.

Adjusted net income: Net income or loss excluding amortization of intangible assets related to business acquisitions, net change in the fair value and accretion expense of contingent considerations, net change in the fair value of derivatives, net foreign exchange gain or loss, impairment of intangible assets, bargain purchase gain, gain or loss on sale of land and buildings, assets held for sale and sale of business, and loss from discontinued operations, net of tax and U.S. Tax Reform. In presenting an adjusted net income and adjusted EPS, the Company’s intent is to help provide an understanding of what would have been the net income and earnings per share in a context of significant business combinations and excluding specific impacts and to reflect earnings from a strictly operating perspective. The amortization of intangible assets related to business acquisitions comprises amortization expense of customer relationships, trademarks and non-compete agreements accounted for in business combinations and the income tax effects related to this amortization. Management also believes, in excluding amortization of intangible assets related to business acquisitions, it provides more information on the amortization of intangible asset expense portion, net of tax, that will not have to be replaced to preserve the Company’s ability to generate similar future cash flows. The Company excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Excluding these items does not imply they are necessarily non-recurring.

Adjusted net income reconciliation:

(unaudited)
(in thousands of U.S.dollars, except per share data)
  Three months ended
December 31
    Years ended
December 31
 
    2020     2019*     2020     2019*  
Net income     86,328       56,680       275,675       233,677  
Amortization of intangible assets related to business acquisitions, net of
tax
    10,221       9,263       35,286       35,756  
Net change in fair value and accretion expense of contingent
considerations, net of tax
    104       40       165       146  
Net change in fair value of derivatives, net of tax     (373 )           (373 )      
Net foreign exchange (gain) loss, net of tax     227       (328 )     (895 )     161  
Gain on sale of business, net of tax     (230 )           (230 )      
Bargain purchase gain                 (4,008 )     (8,014 )
Gain on sale of land and buildings and assets held for sale, net of tax     (1,848 )     (6,872 )     (10,308 )     (18,691 )
Net loss from discontinued operations           1,302             10,548  
U.S. Tax Reform     (1,072 )           4,451        
Adjusted net income     93,357       60,085       299,763       253,583  
Adjusted EPS – basic     1.00       0.74       3.36       3.04  
Adjusted EPS – diluted     0.98       0.72       3.30       2.97  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Adjusted earnings per share (adjusted “EPS”) - basic: Adjusted net income divided by the weighted average number of common shares.

Adjusted EPS - diluted: Adjusted net income divided by the weighted average number of diluted common shares.

Adjusted EBITDA: Net income or loss from continuing operations before finance income and costs, income tax expense, depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of land and buildings, assets held for sale and sale of business.

Segmented adjusted EBITDA refers to operating income (loss) from continuing operations before depreciation, amortization, impairment of intangible assets, bargain purchase gain, and gain or loss on sale of business, land and buildings, and assets held for sale. Management believes adjusted EBITDA to be a useful supplemental measure. Adjusted EBITDA is provided to assist in determining the ability of the Company to assess its performance.

Consolidated adjusted EBITDA reconciliation:

(unaudited)
(in thousands of U.S. dollars)
  Three months ended
December 31
    Years ended
December 31
 
    2020     2019*     2020     2019*  
Net income from continuing operations     86,328       57,955       275,675       244,225  
Net finance costs     15,382       15,552       53,910       62,107  
Income tax expense     15,412       19,277       86,982       76,536  
Depreciation of property and equipment     43,753       44,721       170,520       168,720  
Depreciation of right-of-use assets     21,618       19,508       80,496       77,326  
Amortization of intangible assets     13,557       12,757       48,213       49,701  
Gain on sale of business     (306 )           (306 )      
Bargain purchase gain                 (4,008 )     (8,014 )
(Gain) loss on sale of land and buildings     5       (8 )     6       (9 )
Gain on sale of assets held for sale     (2,211 )     (6,365 )     (11,899 )     (21,571 )
Adjusted EBITDA     193,538       163,397       699,589       649,021  

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Segmented adjusted EBITDA from continuing operations reconciliation:

(unaudited)
(in thousands of U.S. dollars)
  Three months ended
December 31
    Years ended
December 31
 
    2020     2019*     2020     2019*  
Package and Courier                                
Operating income     29,401       22,680       78,753       82,228  
Depreciation and amortization     6,626       6,553       25,357       24,893  
Gain on sale of land and buildings     (1 )                  
(Gain) loss on sale of assets held for sale     (92 )     62       (91 )     (843 )
Adjusted EBITDA     35,934       29,295       104,019       106,278  
Less-Than-Truckload                                
Operating income     24,464       19,311       87,950       82,230  
Depreciation and amortization     12,611       13,436       50,354       52,920  
Loss on sale of land and buildings     1             1        
(Gain) loss on sale of assets held for sale     8       (1,478 )     56       (8,509 )
Adjusted EBITDA     37,084       31,269       138,361       126,641  
Truckload                                
Operating income     53,604       46,417       206,346       192,172  
Depreciation and amortization     50,212       48,987       188,979       182,817  
Gain on sale of business     (306 )           (306 )      
Gain on sale of land and buildings           (8 )           (9 )
Gain on sale of assets held for sale     (2,127 )     (4,949 )     (11,864 )     (12,339 )
Adjusted EBITDA     101,383       90,447       383,155       362,641  
Logistics                                
Operating income     26,462       14,216       84,459       57,447  
Depreciation and amortization     9,342       7,717       33,429       33,597  
Bargain purchase gain                 (4,008 )     (8,014 )
Loss on sale of land and buildings     5             5        
Adjusted EBITDA     35,809       21,933       113,885       83,030  
Corporate                                
Operating loss     (16,809 )     (9,840 )     (40,941 )     (31,209 )
Depreciation and amortization     137       293       1,110       1,520  
Loss on sale of assets held for sale                       120  
Adjusted EBITDA     (16,672 )     (9,547 )     (39,831 )     (29,569 )

* Recasted for change in presentation currency from Canadian dollar to U.S. dollar.

Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue before fuel surcharge.

Operating margin from continuing operations is calculated as operating income (loss) from continuing operations as a percentage of revenue before fuel surcharge.

Adjusted operating ratio: Operating expenses from continuing operations before impairment of intangible assets, bargain purchase gain, and gain or loss on sale of land and buildings, assets held for sale and sale of business (“Adjusted operating expenses”), net of fuel surcharge revenue, divided by revenue before fuel surcharge. Although the adjusted operating ratio is not a recognized financial measure defined by IFRS, it is a widely recognized measure in the transportation industry, which the Company believes provides a comparable benchmark for evaluating the Company’s performance. Also, to facilitate the comparison of business level activity and operating costs between periods, the Company compares the revenue before fuel surcharge (“revenue”) and reallocates the fuel surcharge revenue to materials and services expenses within operating expenses.

Consolidated adjusted operating ratio from continuing operations reconciliation:

(unaudited)
(in thousands of U.S. dollars)
  Three months ended
December 31
    Years ended
December 31
 
    2020     2019*     2020     2019*  
Operating expenses     1,004,884       896,248       3,364,567       3,520,677  
Gain on sale of business     306             306        
Bargain purchase gain                 4,008       8,014  
Gain (loss) on sale of land and building     (5 )     8       (6 )     9  
Gain on sale of assets held for sale     2,211       6,365       11,899       21,571  
Adjusted operating expenses     1,007,396       902,621       3,380,774       3,550,271  
Fuel surcharge revenue     (73,859 )     (105,315 )     (296,831 )     (425,969 )
Adjusted operating expenses, net of fuel surcharge revenue     933,537       797,306       3,083,943       3,124,302  
Revenue before fuel surcharge     1,048,147       883,717       3,484,303       3,477,576  
Adjusted operating ratio     89.1 %     90.2 %     88.5 %     89.8 %
*Recasted for change in presentation currency from Canadian dollar to U.S. dollar.  

Less-Than-Truckload and Truckload reportable segments adjusted operating ratio reconciliation and Truckload operating segments reconciliations:

(unaudited)
(in thousands of U.S. dollars)
  Three months ended
December 31
    Years ended
December 31
 
    2020     2019*     2020     2019*  
Less-Than-Truckload                                
Total revenue     157,628       175,319       589,235       727,249  
Total operating expenses     133,164       156,008       501,285       645,019  
Operating income     24,464       19,311       87,950       82,230  
                                 
Operating expenses     133,164       156,008       501,285       645,019  
Gain (loss) on sale of land and buildings and assets held for sale     (9 )     1,478       (57 )     8,509  
Adjusted operating expenses     133,155       157,486       501,228       653,528  
Fuel surcharge revenue     (16,547 )     (24,016 )     (66,384 )     (100,030 )
Adjusted operating expenses, net of fuel surcharge revenue     116,608       133,470