tfii-ex991

tfii-ex991_6.htm

Earnings Press Release

Exhibit 99.1

For Immediate Release

TFI International Announces 2020 Fourth Quarter and Full-Year Results

•

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

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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, Quebec, February 8, 2021 – 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.

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Earnings Press Release

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.

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Earnings Press Release

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.

²Segment 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 activies 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.

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Earnings Press Release

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.

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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.

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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:

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Package and Courier;

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Less-Than-Truckload;

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Truckload;

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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.

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Earnings Press Release

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

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Earnings Press Release

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

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Earnings Press Release

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

│

Earnings Press Release

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.

│

Earnings Press Release

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.

│

Earnings Press Release

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.

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Earnings Press Release

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.

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Earnings Press Release

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			434,844			553,498
Revenue before fuel surcharge		141,081			151,303			522,851			627,219
Adjusted operating ratio		82.7	%		88.2	%		83.2	%		88.2	%
Truckload
Total revenue		477,262			469,798			1,748,359			1,891,554
Total operating expenses		423,658			423,381			1,542,013			1,699,382
Operating income		53,604			46,417			206,346			192,172

Operating expenses		423,658			423,381			1,542,013			1,699,382
Gain on sale of business		306			—			306			—
Gain on sale of land and buildings and assets held for sale		2,127			4,957			11,864			12,348
Adjusted operating expenses		426,091			428,338			1,554,183			1,711,730
Fuel surcharge revenue		(39,127	)		(57,038	)		(163,522	)		(233,757	)
Adjusted operating expenses, net of fuel surcharge revenue		386,964			371,300			1,390,661			1,477,973
Revenue before fuel surcharge		438,135			412,760			1,584,837			1,657,797
Adjusted operating ratio		88.3	%		90.0	%		87.7	%		89.2	%
Truckload - Revenue before fuel surcharge
U.S. based Conventional TL		161,476			156,678			632,590			646,782
Canadian based Conventional TL		58,497			56,668			206,418			226,816
Specialized TL		219,093			200,452			749,655			791,087
Eliminations		(931	)		(1,038	)		(3,826	)		(6,888	)
		438,135			412,760			1,584,837			1,657,797
Truckload - Fuel surcharge revenue
U.S. based Conventional TL		19,006			26,720			81,222			112,165
Canadian based Conventional TL		4,798			7,677			19,408			31,628
Specialized TL		15,244			22,686			63,018			90,650
Eliminations		79			(45	)		(126	)		(686	)
		39,127			57,038			163,522			233,757
Truckload - Operating income
U.S. based Conventional TL		13,722			11,931			51,857			55,055
Canadian based Conventional TL		8,673			8,001			28,337			32,610
Specialized TL		31,209			26,485			126,152			104,507
		53,604			46,417			206,346			192,172

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Earnings Press Release

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

(unaudited) (in thousands of U.S. dollars)	Three months ended December 31						Years ended December 31
	2020			2019*			2020			2019*

U.S. based Conventional TL
Operating expenses**		166,760			171,467			661,955			703,892
Gain on sale of land and buildings and assets held for sale		—			—			1,103			—
Adjusted operating expenses		166,760			171,467			663,058			703,892
Fuel surcharge revenue		(19,006	)		(26,720	)		(81,222	)		(112,165	)
Adjusted operating expenses, net of fuel surcharge revenue		147,754			144,747			581,836			591,727
Revenue before fuel surcharge		161,476			156,678			632,590			646,782
Adjusted operating ratio		91.5	%		92.4	%		92.0	%		91.5	%
Canadian based Conventional TL
Operating expenses**		54,622			56,344			197,489			225,834
Gain on sale of land and buildings and assets held for sale		—			8			—			8
Adjusted operating expenses		54,622			56,352			197,489			225,842
Fuel surcharge revenue		(4,798	)		(7,677	)		(19,408	)		(31,628	)
Adjusted operating expenses, net of fuel surcharge revenue		49,824			48,675			178,081			194,214
Revenue before fuel surcharge		58,497			56,668			206,418			226,816
Adjusted operating ratio		85.2	%		85.9	%		86.3	%		85.6	%
Specialized TL
Operating expenses**		203,128			196,653			686,521			777,230
Gain on sale of business		306			—			306			—
Gain on sale of assets held for sale		2,127			4,949			10,761			12,340
Adjusted operating expenses		205,561			201,602			697,588			789,570
Fuel surcharge revenue		(15,244	)		(22,686	)		(63,018	)		(90,650	)
Adjusted operating expenses, net of fuel surcharge revenue		190,317			178,916			634,570			698,920
Revenue before fuel surcharge		219,093			200,452			749,655			791,087
Adjusted operating ratio		86.9	%		89.3	%		84.6	%		88.3	%

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

** Operating expenses excluding intra TL eliminations

Free cash flow conversion : Adjusted EBITDA less additions and proceeds from rolling stock and equipment, divided by the adjusted EBITDA.

(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
Additions to rolling stock and equipment		(55,355	)		(52,623	)		(123,483	)		(223,965	)
Proceeds from sale of rolling stock and equipment		24,144			20,654			52,719			71,365
Adjusted EBITDA net of net rolling stock and equipment		162,327			131,428			628,825			496,421
Free cash flow conversion		83.9	%		80.4	%		89.9	%		76.5	%

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

Free cash flow from continuing operations: Net cash from continuing operating activities less additions to property and equipment plus proceeds from sale of property and equipment and assets held for sale. Management believes that this measure provides a benchmark to evaluate the performance eof the Company in regard to its ability to meet capital requirements.

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Earnings Press Release

(unaudited) (in thousands of U.S. dollars)	Three months ended December 31						Years ended December 31
	2020			2019*			2020			2019*
Net cash from continuing operating activities		164,928			133,262			610,862			500,496
Additions to property and equipment		(60,410	)		(89,073	)		(142,814	)		(263,698	)
Proceeds from sale of property and equipment		23,949			20,785			52,116			71,754
Proceeds from sale of assets held for sale		6,248			13,079			24,480			39,146
Free cash flow from continuing operations		134,715			78,053			544,644			347,698

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

Covenants : The following table indicates the Company’s financial covenants to be maintained under its credit facility. These covenants are measured on a consolidated rolling twelve-month basis and are calculated as prescribed by the credit agreement which, among other things, requires the exclusion of the impact of the new standard IFRS 16 Leases:

Covenants

Requirements

As at

December 31, 2020

Funded debt-to- EBITDA ratio [ratio of total debt plus letters of credit and some other long-term liabilities to earnings before interest, income tax, depreciation and amortization (“EBITDA”), including last twelve months adjusted EBITDA from business acquisitions]

< 3.50

1.33

EBITDAR-to-interest and rent ratio [ratio of EBITDAR (EBITDA before rent and including last twelve months adjusted EBITDAR from business acquisitions) to interest and net rent expenses]

> 1.75

4.78

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