TFI International (TFII) 23 Oct 202020 Q3 Earnings call transcript

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to TFI International’s Third Quarter 2020 Results Conference Call. At this time all participants are in a listen-only mode.

Following the presentation we will conduct a question-and-answer session. Instructions]. [Operator

subject the call management, that could will in in and turn that be are dollars. cause over of Canadian All nature conference number dollar differ this contain are those actual call results we uncertainties materially please to advised forward-looking risks to Before and a from that anticipated. to several are statements amounts

I Friday, and will Bédard, this would like conference everyone call October like XX, International. recorded being Chairman, Officer I the XXXX. Lastly, turn TFI that on now Alain to go call Chief to is to ahead. Please of remind over Executive President

market you joining our third closed I Well much introduction the quarter appreciate results. very us operator morning’s everyone this and after we thank for released for Yesterday call.

need a third very a visit the International press of strong TFI website. copy release, our If please had quarter. you

going developments of as focus our several customers. well strong health As pandemic for we the had and despite quarter operational I seen financial despite our performance and of These ongoing on last and call our and mentioned employees results that bodes on wellbeing during the forward. came positive the and played our our continued expected out

constantly capital. hallmark on opportunities frequently fundamentals returns relentless We operating focus the to you of getting increase of on enhance and invested the me As seek mention, philosophy hear right. a details the International’s efficiencies TFI is our business consistently

creating and a expand We cash capital position with whenever returning financial profile. then This to to allows includes business long-term strength per goal value also and strong our look our optimize this to share to our free possible. excess strategically adding earnings flow shareholders shareholder of of our us

uncertainty years principles to During our as and even culture this that adhering maintaining is more these macro is elevated important. believe when we such

[ph] acquisitions identification results will equitive opportunities walk platform. You our and enhance and our it in continued in you see expand also of see our next through I it that strategic quarterly you to

acquire an the four third quarter completed the during expected During business we quarter. additional we to to agreed close acquisition and fourth

to won’t acquisition. seven subsequent rationale each, September our through successful you I highly one-time our call. walk addition as invite In but completed total I releases two compelling recent strategic extend you our read In and we acquisitions [ph] last for to the record more track do that’s we since regard. long in and press additional this in

third COVID-XX the and focus reminder quarter our Turning start related results, of performance and a level now safety. high and continued as absorption our costs International's despite are results to TFI health continued with let's these on

Our quarter’s second X.X quarter. the down total of negative significant third This to year’s a X% growth. improvement revenue was XX% prior compared over year-over-year was billion the

EPS and adjusted on earlier. More XXX importantly, diluted increased $X.XX to to a expanded XX% our million our XX% income a a a year from basis up operating $X.XX

Our continuing as operation to as that healthy was activities slightly XXX each were at courier. package four we performance. with Overall, very look our More opportunities. business and million, flow the from it net over pleased specifically P&C, and cash strategically year. of perform, invest in seek segments prior let's up a We how our with expansion important us our view beginning business cash allows our was and

significantly BXB BXC the improved the has progressed. as activity P&C and which results improved the prior surcharge COVID-XX Our million of over increase pickup slowed This due versus X% total of operating up and income X% compares XX.X% revenue XX.X% the segment XX.X prior saw Throughout of performance. quarter in package the our year-over-year we were represents saw a much second the effect quarter quarter a Operating courier margin and to revenue was year. even segment XX% to year. as third of the fuel in before

Going forward pandemic we well BXC is that BXB more a mix our prepared of are stronger demand the we and segment emerging even with believe balanced that to from P&C accommodate.

revenue Moving million, to in our XXX before the fuel the rebound down LTL, a reflecting this in revenue improved the generated total and was rate half demand. prior of from year-over-year quarter prior and fact XXX surcharge is represents XX% of segment million of of year. during segment That quarter, much -- that a decline period

leverage Importantly, to XX companies in operating driving growth subsidy our our of operating Canadian a more of to efficiencies result Overland XX% million, our million significantly year-over-year our ongoing margin income and environment. demand point These than XXX grew in Freightways X operating income XX.X%. than Canadian only success margin our XX% was expanded operating offset wage This and not the but more the TST and May. for merging by example, weaker operating significant Express benefited basis

year-over-year X% just each segment wage sharp which of our period, to our XX% this largest representing grew is the growth total Next, decrease higher prior is XX subsidy percentage of specialized rebound of in revenue, prior businesses the also XX% turning out slightly. slightly a X.X should was the specialized which be revenue million truckload. year total led segment to Rounding operating on declined sales in year-over-year, declined segment of surcharge. quarter. X% income largest We at in This quarter. gain fuel XX of from revenue to XX% our a while a in million. second XX a Canadian in discussion, before It before our segment earlier -- truck operating that fuel and logistic Canadian noted our operation Within revenue. our from quarter, saw million U.S. Truckload X.X% was single-digit over margin up Canadian load business saw of Revenue decline surcharge each our revenue. the and saw our year ago real million had estate year we

the XX year. Our income to a quarter versus doubled than million million operating prior more XX at earlier compared the in year

for margin produced solid the have operating ago as growth at improvement Our came well our bottom the initiatives day package us. on same remains powerful XX.X% E-commerce and driver above margin X.X%, line. improvement demand organic a delivery year

a balance meaningful our allowing profile share gross source execute plan. to on TFI provided with remains to our sheet, strength million for offering in business financial that our us August to proceeds Turning strengthened of us, a We Canadian. further of $XXX it approximately

year down in strong strong benefited of the from a all cash Our further from since start liquidity with quarter, of our ended our $X.X of the long-term XX% operations billion the September total during liquidity. and we debt

continued a to Given January. performance dividend operating Board increase today our pleased that financial I'm announcing position, next quarterly XX% in strong be our in of our very and payable has announced sizable solid Directors

reinstated In pleased as furloughed. and TFI continued X-X employees business report had and rehired for XXX addition, the employees to week day’s International has been during work I'm that full XXX who improved conditions perform, we quarter to time we have

we the million regardless you macro start the comments capital in our TFI up flow $X, on our today, a In summary, minimum $X.XX now at million for of constantly to update be previously. XXX of measure, our previous range I the of XXX earnings to to want fundamentals diluted International to be expect as and I full wrapping non-IFRS $X.XX, XXXX. allocation mentioned of up conditions. a my business for focus Lastly, up million cash which is changing from free prepared and We call optimizing expect minimum XXX from the of of to at outlook per share our we

produce to a the Specifically, highly day just our not also while where in dividend. to we On profitable and risk invest disciplined quarterly see but best entire the looks our growth. we day paying manner team return efficiencies growth adjusted drive basis

if Our TFI to the online for create and whenever generating and lines ultimate so team we aim at their could you the Q&A And that open dedication shareholder with this is capital value begin shareholders unprecedented returning the results to session. to I possible. for entire continued unlock fear. the can want to thank excess just operator,

Thank line ahead. Morgan you, Ravi comes ladies Shanker Please gentlemen. of And question Stanley. your and with the Instructions]. from go [Operator first

question. morning for Good Morning my everyone, good taking Alain, thanks

term questions. So wanted with kind of two to start longer

and have super remind kind a is would do your it guys bit little to a you what a looks obviously busy year, to And are M&A, where everything with what there of again valuations sizable you guys targets? consider acquisition. of going you with on First feel of one this offer here, pipeline kind on. fairly been the market, like you've taking made also us just break you out Can even go like, the be for stock new with you compelling market, are

been a I the good Ravi. mean, the XX secret of That's question M&A years. for very TFI last has sauce

we small do done far so this mean, is ins XXX million. about I we we've just tuck year, invest every that So what some year

DLS for XXX to very November. XXX only small with which that nice we're I sure, invested for going significant early We're going mean, some acquisitions. strategic we've So far a closing to closing million is acquisition, XXX sometime But be million, the us. some million, one be

everything done. Okay, is

So that's us. going a be acquisition to for great

we're pipeline sell record business. significant where years Now we company is I this his mean, In Canada, wants the very someone that environment some is family strong us. like transactions we one. growing environment create Because always we sells of ago. the one a transaction the I our have number to his TFI. CFI is U.S. for far closing to pipeline, We've owned call we've new What mean, the players, well. sure. is number full. of in track okay done first someone the keep terms to if In the value, done of company always kind [ph] And two, Why? propose an so three

transactions south done in DLS cannot future the the border. times, because, our sure got significant we're Canada a and XXXX such dominant we've it's in to many we be in awful takes said and for It player be with a company long, that Canada. we If Now, it million is a bit in have sit dynamics Ottawa. revenue one, buy cost we lawyers of to to with with down Canadian, Bureau like and things $XX it's a try than long then more an that. Competition process And, little for

some So, really unusual is this we've been us. less we than I is do normal What three but for little transaction. significant busy a bit mean, or years is about every yes,

Tom $XXX And a to a faith why our business. is that U.S. this investing transaction, like the kind in million led in and the us. have we're this significant to asset mean, strong through U.S. market I It's this important going be it's into we on but LTL DLS acquisition. step lot not a of acquisition. that it's future by So first is team big, of

understand a little is the which than to in of LTL this that the U.S., we're we in market Canada. bit the drivers one really So going to different use market probably

if -- look powder. a about million to got Canadian $X.X That's Now, to on we going dry at the for still available the we're that you DLS M&A, we're dollars acquisition, say on lot have us If jump right fit, doesn't right find absolutely stopping. we liquidity in spending that we $XXX to so going be for billion of we've going be it. are of

acquisitions small probably zero. which thousand TTL bit in We going to team. beef years second have specialty a our were, we running team. our little we're our mean, a deep in bench. the In DLS like and I to now, up the U.S. done we've none up truckload, special trucks our well, more that the these in ago is is again, U.S., we're three this than All Canada, through beefing team acquisition a

so Okay, America, got this a U.S., faith North economy lot Canada. we've and of in in

once is lots transportation, for and election some then behind a we probably will concern of evaporate, lot I us, this of see think potential. tailwind that XXXX

that there's ways in still think transaction one. that day Now a is do valuation, terms to accretive. of I

transaction my know, You that business. ten a is not doing this that's years, really well, bag. We're after accretive in not

any one without know, accretion any because don't you one have day synergies, like synergies. to day has You be and normally

You we start know, here you business go. the and

and able very you that's which look if proud this at So people, over really to the years, TFI, we how if you proud XX were team. of of at everything our done our look we're build DLS, last today that we've

Great Thanks Alain. color.

Ravi. Pleasure

the question Jason Cowen. comes of from ahead. go line with And Please your next Seidl

the the then curious am line Good Thank and business Alain of sit trends of how seeing here of going some your across subsidy you're you, in and different especially eventually XQ, a focus morning the impact about talk as Wanted with you've I team. we to to away? little the lines been operator. bit that's sort to there know rate bottom seeing wage recovery profitability, Canadian going on

absolutely. good well, Jason. Yeah, very A question,

us in was few Canada look million. The forecast So about in is going subsidy at a dollars. QX, be QX the if just about you our for XX million to

what QX, our our changed far have been doing of Our much. so profitability in that P&C, versus is we've changed at BXC not BXB mix if look you has but

our going P&C QX So BXB if year-over-year. at down our and in still you look into is QX,

look ICS X%, is TFIS, X%, I if bit, which XX%. our I down our a still is BXB, guys, look if are overall okay. mostly ICS, P&C about specialty Okay, at TFIS X%, okay. at P&C up globally still But is down about

means we've that that a affecting line our BXC So BXB of replaced too much. bottom lot without our with

If adjusted you look EBITDA stayed same. at about our has it the

going and okay. QX into XXXX, So that's into our goal

brick some is growing and keep our of will eating to this BXC, Probably we lot the going all mortar because know, BXB a of We back. the there's lunch e-commerce be hopefully comes guys. of leakage as

of I we our but, business, back. we're maybe some there's BXB mean, impairment a in see. So will permanent

with because okay, think that growth. we're bottom we a affecting So the plan, are to BXB growing some P&C, replacing we're see you'll have better line also organic and BXB our XXXX solid replace global is the the going BXC even which in I revenue focused, of very without

you small. market then revenue e-commerce, I it is bottom in good, Logistic mile and operation the if terms logistic. to which next so we're sector, look last into going Canadian so doing Canada, in us. I But fire on me good our in increased is our for at Now so good terms of of is line. mean brings mean,

drivers okay, of So operation. if U.S. line bottom one main the our mile at U.S. in is market, our our improvement you of logistic our last look

you top are, [indiscernible] some team let's the same getting have X% and can't business the still his X%, we we new guys, which not because bottom line X%. business service sorry, X% and X%, is say, growing of saying, what, and quality we we're Okay, line at X%, are X%, in still you that don't know time,

So you guys walk. have to

to to EBIT XXXX the operations of going X%, U.S. because Topline you're see not closer in will line. grow, X%, goal. keep of is growing, double-digit into line by a bottom we're XXXX guys X% and quality on what much our bottom still the So replacing line going with but bottom to is getting that that's better

Now, look if you most retail. LTL, of in here's the the Canada, our problem at LTL is

West. Not because see was you us and is this industrial in Quebec. small, out West West much any So out Ontario is there why never in so the but LTL

So to industrial nothing this Ontario lose keeps on there. LTL in there's Quebec But, and coming down.

time, on So guys, e-commerce. this the mortar down going the to of organically some LTL is year-over-year same are why losing at brick guys, revenue also keeps our and and customers

big lane, that same So wave our we're on, all why the and but we're doing the this is customer, down right moves time, right time the at in LTL, the the right focusing still break. right

to of to leave M&A. hauling other $XX. that grow for So, sure we're the mean, needs business But not in the freight guys. our LTL I to for

opportunities, announced a that of kinds finally can but were that. all We APPS. buy at this what was on there acquisition, met. condition trying to We certain not looking closing we're So we were do

else. we we'll well So say, to look had something okay, at

line So on be our it's to on but growth working growing bottom XXXX, that hopefully to keep LTL. growing organic LTL, efficiencies the I the to Canadian dollar top into going yes. the think different through we're But of keep we're line and scenarios the going our

U.S. in Now QX. revenue if truckload you about truckload, stable. okay operation about is Yeah, our our think has done

operation bit than TCA. little did Our CFI better a

is Our really really, MCT acquisition doing well.

still affected truck in Our load is Canada. specialty

but be. not back, still coming business are mines automotive is the okay, it where the construction of should Some is

absolutely. definitely affecting I our like a U.S. is us XXXX will see improve, bit, steel steel, So but aluminum

I get specialty think also and there. to improvement division our see will some van Canadian

very I'm overall, So confident.

done going think is of I a is this for the in will the and the probably when It DLS the why, really to million the help a to say better one we've subsidy. even EBITDA minimum is plus going TFI into $XXX of guidance is we small year that So give these that's to think XXXX But be us XXXX we that is produce closing even XXXX, going be going versus acquisitions minimum be again at end of a results XXXX of XXXX, I XXXX without EPS Canadian. in to lot year. that $X, Canadian

should Alain take equipment if how I been experiencing, that's could which going I you CAPEX then about we fantastic. Good, lead in in, think last this times had CAPEX one obviously, on CAPEX you everyone's for XXXX? -- mean, and XQ had

Yeah.

$XX CAPEX between million QX the on see, because So, sure some $XX of of to dollars and is like you'll for lag, be probably QX start some net million CAPEX to going CAPEX, into CAPEX put will dollars, look of mark. XXXX, on in QX. taken you net the should be hold But the Canadian we be running million that in disposal TFI around if were globally care at XXX our

appreciate Listen, Okay, the at always. I quarter. Nice great. time that's job the as

you Thank Jason. Pleasure.

your question Landry with ahead. Please of Credit go the Allison And comes Suisse. next from line

morning. good Thanks,

about if talk and are for XXXX? I'm might your market initiatives? a for And to -- wondering your improvement be expectations yield to speak to how I do see the the given segment good, opportunity what than TL maybe specifically U.S. price could rate an was bit higher little contract Just you you? I increases

Yeah, a very good question.

pricing on good rate the spot levels see seeing is we're X% as customer. up some what of now. X%, So right is X%, through the all now, We X%, by going contract that about to depending

our we've our COVID, XXXX, but on of for TL even one in what definitely XXXX significant back more do which one us revenue us, always now, that it's hold quality on the us we TMS. for So track But the believe our it's to will operations we put U.S. Allison, reduce importantly is project So can is for cost? with our thing, of improve. in that for XXXX

in Our doing guys the of a today are job fantastic of tools with terms XXs IT.

had the team, century. the of and that with the there rest XXst not century, is the So tools of that XXth we Greg the discussion we need guys

[ph] right XXXX. should to me, the this are now a at we that study why according in looking implementation TMS telling doing McLouth new in picked the start what guys position of sometimes as So we and we're a be is to phases all and

our have So do that's a the do with us one we But tools job. better that to nothing got better it's to something team to thing that to has market. could do management

better always been of more So and guys moto to TFI efficiency have we less. the has it do with brings

mean, yes, I ago, with XXXX but So of is months the a revenue, have year in and the to -- there, a start I we pre-booked. you. the freight. Every morning we or agree we well, saying the are freight with don't ago we we're always drivers, pre-booked. have improve, We're we're six tailwind now guys rates quality got should guys,

is opposite. problem the Now, well the

have freight we We than more drivers. have

maybe team as a at our it's So, cost basis. say work problem have to time, the have guys, on but same nice we to we our to

to the jungle. the last always survive We is one The in be tiger. to tiger the have

the low always cost company. So help

like for have to improve and our it and sure, bring Canadian cost pricing But thing of always to a truckload. XXXX we terms for bring in So our you improvement. is said, same efficiency. tailwind working us we're the We're down

Okay, great.

the Just going how you're of forward? Could the great to about in speak hike. capital maybe buyback to terms dividend thinking you allocation, see

us is M&A, been for right. seen always has Yeah, well buyback as

or of own something you buy outside your buy TFI stock. it's either So you

is So -- right always what return. now, between, balance what it's a we adjusted

like return. and and earlier, of what TFI. lots our It's and Right we which can buying ones the which now lots just, got said is we got best versus we buy pipeline for So one do lots opportunities. is I can

into our we've dipped, earlier it if when thing think when our at been about stock X.X what million look time, we the was So in you the the QX. bought COVID dipped QX back at I hit shares or and doing, early XXXX, stock

the So that opportunity at time. we took

like a our liquidity. said, I it's to Right I fine. we've always X.XX on is mean, now M&A. depending balance, on okay, be reaction stock the is in So got focus billion more what But going

M&A, yes, come the shares growing Canadian. down question, it back investing adjusted this the best to return, the DLS in to So is transaction billion that's buying going company the a through $X.XX TFIs right. is always through But what probably is or

That's So cash balance. the to job control at to dividend, free what's it's XX% control by cash our one why got XX% this cash we our increase a a year, our the goes to did flow is and which XX%. then M&A. and you back number reduction shareholder. of policy always, to my as It's able our of policy. you That's we're debt, by then CEO And on it TFI

deals. DLS $XXX we was every significant, significant million something is yes, important, it invested. always M&A with million And is important, small $XXX year a about years three, $XXX So but on because we invest once million. DLS it's CFI significant. was four not do

us important, that So, or $XXX now a years. not is whale TFI, big three also DLS talk right for always is if and the to you significant size four every the talk, of want about -- we but million transaction it's

was Okay, Thank helpful excellent. a That you. framework.

a pleasure Allison. It's

from your question next with of Wolfe Research. And go line Scott ahead. Please Group the comes

morning. good thanks, Hey,

just wanted I on guidance. something the to So check

in go guess, us be conservatism the fourth this about year-to-date. the subsidies $X, done fourth just $X.XX quarter? means quarter off I expecting what here, you've a away drop Should for So is think we there as or $X.XX help or

are are us TFI. we conservative very Well, at we

for You why that's know of seeing and our So motto minimum -- deliver? promise one sure, under motto a over of is, we're our $X.

our but in because to you a it's we're was that saying $X.XX means could $X is Subsidy be $X.XX that $X.XX. say, today. drop And cents Is like of compared now is going believe to $X. our going $X.XX QX. that that QX minimum that something well, the going guidance Oh, Probably subsidies you about a for But this dollars. million want is few not, if away. say a we $X.XX for $X.XX. they Remember, see you $X.XX $X.XX Now, like Subsidies conservative. away, us $X.XX last probably of $X minimum means of if absolutely. to of minimum to versus to

we So, deliver. and like I over always mean, to promise under

say So a of. why this we minimum is

So that it could $X.XX, $X.XX. could it be be be could $X,

we in on anything we have an idea December. October, about don't and know October, Now going okay, of know but we November what's

but don't if So confidence have because, have know in I we confidence -- our this is solid. any XXXX, why would we we're we careful we why team raise mean, our is and dividend?

We for fantastic into have plan be to and we a now want But conservative. XXXX.

sense. makes Okay,

large with more DLS, maybe it's just just So with because one, a just help the us bit a little rationale here. strategic

it helpful? around just think a would maybe be X% was then X, you in plans a -- think for you business grander the margin I U.S. running where and the LTL

yes, that's very question. Yes, a yes, good

is, DLS we bottom not when a if all, as we we the could do and But sure, maybe time, guy. why whatever. that not going to but over and like what we'll happen over to X%, to one business today. his to a X% to is with we believe with for work Working Tom X% same from DLS of X% overnight. over X? bottom line line of it and the team being Tom better First Well, don't X% that. X% are in than is kind it's look time, at X% time, get mean, or X% is I So guys, X% really it we team

out. etcetera. inside believe etcetera, really, know market, players, Now, we We the in the good really what business We is this we the business is know we know that well. Canada know LTL

Canada because us DLS pricing Market the LTL not for Canadian us market our U.S., understand is the gold adjusting. down players acquisition too why us help at a we there's that's and the the overcapacity. competition In you revenue U.S., -- it's It's a better because this is mine. will Now, every understanding -- when improve the help market the a is LTL like in much mine. U.S. shrinking market in our better sand can't And is quarter. look

got of the fantastic I them run got they're chasing owned a the different. then XX LTL running to So you've you've OR. XX survive. mean, The company, market probably sub some trying family of in is to and XX always ORs. one that U.S. And others is volume

non-union a is public XX and that at also look say trucking you guys, was the job. saying operation We OR we're the You because fantastic run to the union some bad with got in Canada union, not us some of -- story. all. that's But But work different world, they're unionized just unionized I'm largest unionized guys, do the one the a that problem we with if in and company do they okay, Teamsters our no you got well. and very at

and it's So it's in one way, is to freight LTL XX% LTL, like just DLS U.S. market, and drivers going the understand to the this XX% we're different school. We're trying XX% about truckload to because is rest forwarding.

improve the much is you better LTL to is we LTL us, working understand day because better that to between U.S. where hey, and and in night a we than with the Canadian this. that's one So it's in we been started business we've the this like bad going But too believe want market school, and the business to Canada. me

you revenue Even we're bottom stuck terminal the million. the $X line subsidy that. of still If is revenue down, with our is line And $X trucks, million you in subsidy all cars, of but if at went bottom our I exclude QX and up the though. up all time, is results, the fixed look down mean, exclude big our kinds

or can we tells we be you that how are. So efficient

you. Thank

You welcome. are

Spracklin of line question next ahead. from with go Please Markets. comes your Capital RBC And Walter

much. thanks Alain. Hey, very morning Good

Walter. morning Good

you back your of your actually a improve lot other costs lot as I companies volume right. brought I'd saw the cost and like to to of focus lot you creep got But a in. margins came. come of able mean, a employees, because, little were the your here, bit still operating leverage, you on back all a brought margins

of looking year, acquisitions prepared XXXX as into that the some little you guidance the leverage therefore into mean, you I into bit the the would done, to a very in go be next margins we when next if think pretty for So to back quarter of hold in color have you're and that do next year give don't or indication year you year, in operating order us we out not, helpful an that want ask see with the can you but can improvement fourth year could but next good your the if you've give the us impact I if attractive. know directionally of at you here, next that to us we level looks magnitude, Qs you, kind I it? gave did

that is going a same in rate of do subsidy time XXXX, we're because some well XXXX to was line. but no Yeah, reasonable sustain catch Loomis, we We going crazy, like subsidy we're shit. bit, our but guidance on tell P&C the XXXX, but to bottom very with a our even TFIS growing Walter, at yes P&C, all. like like that going still which our BXB better call, can't mean, ICS for on a could you it BXC our in you reasonable in XXXX, to the for it is going but sense, for insignificant earlier subsidy, give think better. XXXX, could Canpar I the not to We believe the in rate, is BXB said at I us our because our what chicken do going that I and keep no we P&C there for up in I was there's excluding the was subsidy do at see down

-- going because that most to we've we're sustain our special believe eliminated affected market the the was the Our but load probably we of U.S., XXXX there back. truck never our this in any are that TTL. Canadian we badly came And load in to can subsidy will subsidy of but be our some coming truck margin been

have in others this And deals Contracts up project Keith to we've us Hall that with very, some nice done help Division very going like in we've small of is the we Montreal the margin. Canada, done, beef there. some that and And

Port We some Hamilton in have project nice TTL. the with of

of name ago. and also that project we Gusgo that [ph] We well with a the Goreski just have some bought what's few nice months

yield XXXX, his the And So team to subsidy about think our and COVID, there's are if XXXX you if I even even there. logistics, believe fantastic there. you this going there exclude then a subsidy no that Steve

what at line big with explained time then I and LTL. the because be the will we're logistics left of bottom just Our up

will probably away LTL, The the that's in LTL is us sometimes So it. we XXXX buy negative the this XXXX. in and that company. M&A organically shrinking trying issue why into to working LTL an market think are is The we have into But because something we do were to finally can we do to guys go subsidy and is hard. the XXXX help support. so APPS

significant discussion we LTL our the contract M&A. a It's working Canada. help that can of through will be in now. in in the next right Maybe something now a maybe the in business are If in B terms for on the end do still Canada something perhaps year. grow we're year, to before early have sometime to with right into game. Plan We announce of deal, we'll But could maybe carrier in the position LTL

election And any election pipeline sense. tax sees, a would U.S., any a one U.S. higher that capital in around affect a at all? in, gets gains there U.S. quick pipeline makes on for that by that just example, M&A It your come risk your affected is risk that an the

going I think adapt. going that so, is that but strong I two whoever what's runs I don't but magician. we country. I economy mean, to in no goal we mean, this don't mean Walter. to we happen is know our believe weeks, stay there we're U.S. the

So value Don't TFI one, business number in goal. we for to shareholders. children. of our for forget, our we adjust work is create and That's and future adapt the we

one just around that been for housekeeping you've I And more level believe me, should...? we rate, tax at still it XX%. Is us guiding

Yes, yes, yes. Walter, yes,

Thank Keep Thank safe. much. you very you.

Walter. The to Okay, thank same you. you

Tom comes And with from your next go ahead. question line the of Wadewitz UBS. Please

truckload, in like U.S. Wanted pretty powerful. biggest were name a kind sneak the you double-digit a bit the little about pricing Yes, think it on XXXX, in is they XXXX. of I expect pricing earlier asked said setup seems bit good to morning. U.S. back The truckload little

XX, strong high I truckload business So, in think the in your class low do U.S. can conventional you a what OR think is best environment. framework, XX, the be, cyclical in of kind unusually XXs strong

XXXX that you a that is potentially truckload? of get your potential You in or kind think, multi-year U.S. to for do

question. good very Yeah,

you we over what truckload So XX average the keep a run is XX be that in saying you don't cannot on business if years. on and OR better

it's in a have means XXXX, if you XX we tailwind OR. that to run impossible that probably like will have So

better run to get XX. than You

something, gone wow. is been if the But is now, has we OR running be guy say, the situation last anticipate XX in what fine. to in But look been us, the there's we're to a in XXXX, for about we've So sure like XX now, well right equipment, and XX okay, profit so excuse I with not point XX the the running think tailwind been equipment OR. which in affected market a at will for quarter, you We've good. because no doing

average to focusing going XX You on OR got something when years a sub coming XX some you sub have you the are bad OR. to have to be XX maybe be so on are in at good OR years because

plan on haven’t team I so -- far. yet are disappointed it our in what OR or plan seen I and his But so XXXX XXXX Greg be and for XXXX. guidance provide can't budget XX a really see would working for really we to our for Now,

you. is at Thank you what how about that perspective the pretty think that or level that you your the second little Can question forward give well? as sustain improved us in then you Right, and logistics, on forward kind look just logistic margin a looking so margin the dramatically. of okay, drove and

came Yeah, goes what in improving year change us we've if improvement bottom even U.S. the operation of a if that well you our million ago, done our see look is a from there's U.S. $X the at in from so the in we're line the came leadership said the remember ago, U.S. of I in but about improvement What the by. you'll most improvement, you more time quarter of And as small, improvement, guys, Canada. QX. in I the said Canada majority making year a

was we've So, Canada, last doing been what now EVP we're rebuilding is since the summer responsible for team. operations our oversees XXXX our which and that Kohut U.S. okay, is

now sales Canada. under the leadership our Dean American is overseeing the North team is both Dean. U.S. of So last and mile operation,

million signed -- start So margin. servicing $XX U.S. fair just with we we and account the a some interesting in just

over into the last that and said Like earlier, had operation absolutely. our QX to U.S. XXXX. value. U.S. grow our QX that line margin, with you'll replacing shareholder I line And better delivery. improvement, So of because We're in the top see our improving X% will majority of mile the not practice to business still bottom not much business right. probably goal. we're create guys That's We're or X% operation in

dividend. I'll guy a because I that I X% say North I'm line X%, bottom will for gives shares X%, my why would get and just else American X% me So, a X% someone will buy of a buy deal to a going for TFI bank X% line. with shareholder bottom

So stupid, right.

in that's So QX our see and again. you'll us goal

earlier, at adding a of Now, logistics like margin. DLS revenue lot our the X% to only said average with DLS we is

but percentage quarters that will it months globally, the in the reduce So come. and we'll work to on our

Right.

you. Okay, thank

line Sachs. go question Please ahead. Alliger comes from the next your Goldman And of with Jordan

good Hi everyone. morning

How Jordan. are you

had Good you. question a morning. for I

some be just there, you am the On about your in margins? to third assuming could without subsidy might do improve upon the quarter line the LTL -- talking know I the M&A top you am I organic line putting so was even top or hold efficiencies aside, quite the to because the the you you organic growth think wage good, margin curious LTL, and will it mentioned support, you're need I you'll need LTL

line, to the to But have Jordan. top margin, Well, without we plans going the M&A I said, like is yes. still shrink, improve

So dollar the But the But some and with dollar an the that saying sustain it's Canada, line beef M&A I'm approach the activities market. because to do even margin, revenue our also top we is that sustainable I our not of up leakage have to not without will line no. sure, wise, think in effect. it wise could some for top growth,

do some stuff because still have sustainable improving are on we we could to that doing keep today. we're margins Our what

a on you you something just picture three, apart. strategic as have deals know the Do happen? a bigger guys company, to were and question, you gotten Right, years four historically need I larger gotten think every to as M&A, might to what make as them have will that you more need a them quicker what there's want come that need Is you've or larger.

that know on Jordan. good have. a You what, This bench is the that's deep question, based we

have But market really it's small is team that are none. the So deep in really, to big. we a bench, already Canada, we a very second a have we problem and

significantly. in So beef U.S. our future plan up to has our team for to us been U.S. is the because business grow the our

that's focus So ours. been the of

will DLS, our the So market intelligence of team add, up LTL. beef will in terms in

at least have possible U.S., So a with before LTL that market I if so or DLS there's transaction some company don't the for will becomes company, intelligence. now maybe buying in a the we asset know, whatever in sale based ever an

same story in special We with the our It's TTL team. have a U.S. the

is up trucks. so acquisition. XXXX done there. far truck truck operation little XXX a And now a to small XXX another we've We what to over bought we're So here

has deal the a step. the now could that a if we say to trucks let's I XXXX steps small becomes. agree us, been So that that And for do But get, you a easily. with bigger also, always strategy small the comes we larger our

in the So TTL, LTL, can size in maybe our to and doing in us be in Canada, maybe got nice find of maybe we see. right last the now. has ins, know DLS for deals we the focus we'll really which U.S., transaction mile, after hopefully special tuck never in the small the And we're small

Right, thank you.

You are welcome.

go with Please your Bank. ahead. next line Mona And Laurentian comes the of question Nazir from

morning, Good everyone that quarter. congrats fantastic and on

Mona. you, Thank

changed I that metric or now? that into every mentally to is principle right and weaved guiding make keep it and time, back the you to decision to over mean, ultimate future thinking performance what keep but when tenure TFI, leave, at question, even to want one I'm going is you just just I'm or legacy just has reverting I'm So your you about wondering it your

our by focusing This Yeah, for said, we flow. is, well value. rule get years one create free on TFI. business cash you And been We're at how I has [ph] number in like years. done know to Mona, and religion is this do shareholder

of the the about EBITDA EBITDA say sustain that. do. us pop Us, is not million if but [ph]. you pee can of left? for what's we $XXX have what's Some to EBITDA EBITDA the business, to $XX because guys have understand CAPEX they of that, cash, million But fine, we you okay, there's a say talk Okay, this, free much well,

of look based been build TFI creating of our track value. of we've never shareholder TFI from team, to payback. do day important we and focus and how on the That's through XX if cash also So people, an on I'm you focus because people, shareholder there forget, is get how one flow free the able changed team, and don't is that's record years, at

to that's be this me three points, So us. customer find we're Alain point, and someone and point, two we return say, of the in points, somebody comes not business for the invest $X to is else well, to million because one going not have one

up at value focus creating yes. Team, team beefing our customer is the are really focusing we're and right guy, the TFI. about of This player is and and for team. another Everything who shareholders, people, a doing fantastic significant we're that. job, DLS proud to servicing we of going to on a So Through that's build EVPs, the add always of great, great been acquisition the team. team our

Thank leave it I'll you, there.

from And of ahead. with Sanjay America. comes question of your Bank next the Please Ramaswamy go line

did question. look Canada is the XQ, about I you there? we talking would any my in prefer that maybe to shift in other one, here, keep right whether maybe at the that but morning mix thanks mean, BXB I see kind over how just quarters business, taking details or do Good for and there BXC also and be will we specific and next BXC and couple of the between the it's it U.S. great of

a very question. good that's Yeah,

use but word has our e-commerce. and tough by really market do? keep I growing do BXB, our the is focus the can are to BXB us, for how So we always because can environment customers we So it's attacked the been in what much being, to will do

So to growing. BXB. in our to we're live the we to grow and e-commerce a trying world always But is try that XXXX BXB in protect

what part be that's solution of doing. to got and the we we're So

So we're growing.

is terms XX:XX? is is I our the But one thing in which mix, normally. mix of grow protect BXC, Now you the stop, the the to coincidence one could we're is know, BXB one don't that parcel okay, more what's always tell mix because I XX:XX, mix and best of is? is the that versus delivery trying is

much. Now is we know growing as that and e-commerce BXB not is growing

why is everywhere if margin attain. protect been we growing to -- and came this of look not the we grow a really solution what where we've So And this and can is let's guys, on that's able the revenue any growing anywhere focused QX, company. keep with okay, e-commerce you been that our our just at has our with race, focus

P&C of growth if to growth of Now, five we're and e-commerce, bottom the the come future, growth ask we in to more also because, to we our But to capacity want me BXB. we're BXC, solution, two with probably in years don't controlling of three more you going in going to this up about see see X% solution. offer are line a then

to the accounts now or on replaced do our a I what U.S. And and in that's we operation. we in ours in that some Not the part XXX%, bottom mile that's our much the your improve solution said answers But efficient top that, the solution. that our And so XXXX the believe still how keep changed e-commerce in be of we or be most question in importantly, very needs the growing XXXX but earlier, BXC and most going line a I in a bottom But don't if get right last we know have is in focus been focus important is why in for improving adjusted bit. our line So U.S. know going small we've line U.S. will is a lot. way this margin the but now, is to is U.S. a Canada. to like to that real of this

I think terms in I color. but in obviously that's just ask more great now cycle, strong right I seeing a the follow-up question, market one we're the freight very maybe did trade lie, of very, will U.S.

could hearing seeing, and wage of you drive potentially on quite, kind on please the right we're really comment to navigating just is hefty, a driver struggling give inflation lot about truckers color rate quite you're some talk and this inflation you these Just of now could so maybe how the shortages that? you're

and the with is year that industry ago, problem of tons the Well, of much we in so drivers freight. Yes. a terms trucking not had

tons of have to it's find we Now the tough freight and drivers.

out that with it a a drivers effect review and I came for think problem. for So just it's lately our we took salary because sure

it's same all the So again. story over

So freight is plenty a shortage of drivers.

the we're It's going what rest is through us It's this always now. the So right a battle. industry. same the story for and of

a in we're You there's Canada years, situation when our guys, always last trucking know guys, to do buy XXX been I we has to my in experience our approach to Canada the company trying that, XX a over with what XX how in drivers. about a of driver, said if what like shortage

rid And gives the ones. and bit So, little keep that also accounts, you you capacity. company, a of buy get the you the better you bad good

the solution a may we domestic about our in think that So market. mind, to that is U.S. start

know like look very the that to of accounts, results the if company months because trucks. bought at not three buy sometimes have just has you know always MCT And what looking So I MCT service to a what just good the leaves your don't I what next get correctly, six that we those is impressive so And we am we driver understand the business. good is up good but capital, and has another human I have and a and some of if company approach you rid some And your fleet. the MCT existing myself in done about small our good saying. I to ones we ago, beef it's explaining account. myself and team our I'm account at our market is, months XXX could XXX we explain few then you it's don't there. know what truck I'm Greg correctly. you been don't capacity trucking And maybe it there's in not if are you do

[Multiple Yeah, that I lot a the sense. Speaker] color. and makes appreciate of

Scotia go next Gupta your Konark with from ahead. line And question Please of comes Capital. the

and are Thanks good morning, you? Alain, how

Good morning. I'm good.

You?

Perfect, hope perfect. Great, safe keeping thanks. I healthy. and you're

heard Just a sure subsidy subsidy Alain, the few correctly, into quick wage XXXX? to if I you wage expecting the the ones you from government extend me not are on

I'm going what our no, minimal, back our our QX revenue be Well is is slowly. and subsidy that for to wage because saying coming is

us. zero just be in So minimal, I subsidy was probably a million that to XXXX few wage saying going for to our it's QX and dollars is going be for

Obviously, is today you I perhaps? relatively if that on less and cash $XXX payment, free CAPEX announced And so see, minimum million. guidance, I'm pertaining it implies thank makes curious it's to you. sense, all QX. in to tax as cash flow the generation

payment. And X. was even QX said, a minimum XX CAPEX this have Yeah, be on is the us of late be million in tax But net important catch like for it's Like I like and yes, minimum some to up the was got well because CAPEX a QX of, is in it's XX is like then I probably going more right, to going because said, we late. you're we to do EPS, QX. to million, some

of So a what it's minimum is it exactly we don't know, but we X. see

see we maybe free So the but be see. it's lets thing it with same not the X.XX, could X.XX, for X.X cash. It is will X.X,

So of it's XXX. a minimum

at could be all least it a it It this is be So depends, XXX. could minimum. XXX, but

is And in now, dig margin contraction pricing then There I there flattish and margin to for any courier, What right room another so in positive. discussion understand package today? to last quite where a then you almost from Right, want on things of being versus there. improvement I was year margin being and Alain. led think are I and few that think QX that lot deterioration of a just volumes kind despite

what look The was at as are P&C I BXB. guys, year-over-year. of there adjusted real and revenue revenue, -- down our no affecting percentage is us, been which said, margin still there's our TFIS if But is Yeah, mostly EBITDA is you issues. I a ICS mean, like specialty

operation. By similar Canpar were out and business, a guys reason. Loomis customers XX% is X% we we're bit that quality of BXC So not of if down and this at what's globally fresh most at with kind are ICS for if is revenue up because we BXC. to business do completely our look whatever the X% kind TFIS are those used e-commerce it down is going And look with listen you reopened always our our like do except you you And P&C revenue We to to replace because This is high BXB on, like on margin still to margin. XX%. the now. lost, able the of margin a to

business business protect we're and courier in in saying. saying package will We're that margin. e-commerce So that's also on and what growing to our our keep we're

customers. more controlling than we way we what our So now, we've are demand. our got mean, of through doing lots but to offering we're capacity could grow growth I our

Right, some up Maybe businesses add almost on it today and can acquisitions revenue. right, sense, a you or cumulative in do it generate those turn but a And of for thanks. year? these they of closed margins in optimize kind be billion have businesses $X now year, they to over, before where makes you the call me one all announced basis last this what that I

going that one biggest in well to is DLS be the we're closing Yeah, November.

DLS U.S. XXX is So yeah,

company you today. Canadian We is only that $XXX that we're but a X% believe million of it's if that dollars, the not convert So average in bottom And, business say into let’s And it's of is kind X% line return. average. Canadian. about okay,

have and over X% But at that become say. and we very believe X%, it time X% X% still peers is now. we to So at maybe will this look we peers and right early X%

time. be if can But X% and It's we to So and take our Tom, X%, talking then leader X%? maybe closer peers the it to at there Tom one, going than are and X% will we overnight. hey happen will get get do what with to not better says,

all other we like small Now, CCC like that bought in ones the running. those DSN, Hall, the the the those like guys Keith the small, Gusgo, U.S., MCT are

in OR, OR, Some proof pudding. is of some are and the them of are the them XX XX

these our OR XX on track get I will at takes mean, time. If time. it TTL guys record, over closer a you to look special but time It Absolutely. an takes

give done do I planning the could So, possible, we'll budget don't be. is first about way XXXX But for XXXX than guidance is XXXX we I going think for completely my But better XXXX because say as our feel as without subsidy. going to is soon even mean, for give the to not we XXXX. guidance we're

perfect. much, That's That's me. for all so Thanks Alain.

Thank you.

go And your next Please Stephens. ahead. question comes from Jack Atkins with

morning. Thanks good my Alain, question. taking Hey, for

of change going sustained BXC demand. be the your a about sort large I for BXB subsidies, pricing P&C especially hopefully go perspective XXXX normalizing in quite year? step larger the obviously from next that, for mean, to of a a recovering parcel more about back a So We're to moment. think real guys to bit in you in levels, of back into How there's pricing think power P&C from business function maybe just hearing about kind with power about business to you right to carriers. going you as certainly normalized it just are when we thinking there the and the when U.S. profitability is

right, Jack. Well, you're absolutely

and of we're steps the the guys the mean, I sure, For in like UPS. following FedEx big

and between of the difference game only ahead guys sure, were for them. following that the them are and So those us us we is

take only will But agree XXXX. week. with to coming effect help which BXB Absolutely. November, is it in us that's next So us I slowly going back, so is you, in

BXC not demand game in going has density. the to it's been to are back name in of Probably Now, terms also transportation pre-COVID hard say. our the also on to we be BXB, is level the always as but we and improving of same were

density build and you more have. the to have You density

is So get zip one code, of density do to on what is time, in you at stop code. parcel order to pick e-commerce, the right the because one XX.X% to the have pick zip the

do of So of if example, I'll give you the you want small to to in want right. northern lot XX of BXC an town miles Ontario, North density you there, Sudbury well, have a

one Area, thing way in with parcel. where has one that let's So Greater And the Vancouver, right zip environment approach the same stop same and an code well, been, GTA, pick etcetera, etcetera. is like our the the Toronto is Montreal, to option create density the with

Sudbury, parcel to none, XXX is say one not but tower well, XXX right. if into about in true, downtown because XX is there. maybe with is stop parcel one be apartments. So stop you apartment, Toronto there's Maybe there's a going one parcel a in condo where there's stop be going one that's tower you apartment XXX to one deliver But

approach So been even do Montreal, those e-commerce Calgary, Vancouver, stop per we Toronto, density in our cities more where could why this the world. Ottawa, is has

able maybe to sense, to are add last market the you capacity one margin segment? of lot about need thinking to for How a the makes in P&C that capacity some quick one you do XXXX, maybe with there just me. to within grow your be available the Okay,

capacity doing, want growing like are at others be we we're monthly No, us in Canada is we've bottom Yes, going not our and Loomis we We out bottom of or and because up in that. a XX%. the or ahead to P&C to Canpar basis. QX why come to to well year yes. just What Post don't increasing in no, are are line in accordingly. no, we're is That's shoulders growing want and line do top we go Jack, Us, we say, But that grown on guys, control. Canada but our no, down we XX%, don't QX no. next grow control

the that's focus. So

but got the don't to we us it by to And to and to code, zip a guys Bryan that step. I we step line. the and I his on bottom when customer, talked mean, want fits. choose line So and the with got absolutely. of deal want right e-commerce, right out to full team, disaster go customers where blow We pick the top we pipeline a on got the on and

makes that my of lot book. Okay, the again for in time. Thanks sense a

Thank you, Jack.

with line Stifel. question next David Ross comes your go of And from ahead. Please the

morning, Alain. good Happy Yes, Friday.

Hey, Good thank you, David. morning.

business, you specifically to accounts division, profitable like three the up four Are prices and you last they the haul call paying to get run those, to as any in when talk takes about point them where business? So to you you of logistics point, customer at more and somebody mile trade find margin back that to coming or you low else those them it able going. are are accounts that it

It's mix a mix. It's Dave. a

know, every minute, they say in right. born a sucker You transportation there's

So there's something stupid margin I'm Payless why that's my he this not for last topic-- growth Payless, for of for at with it my e-commerce so our do something. for too. to capacity sure, If in Right, say, of guy are this is always we that's tea. going our someone we've cup wants mile to for oh, freight the this so to sells going to good enough guy like assets money. But, service pay less that focus us got much kind U.S.

right we've U.S. now E-commerce. in So demand so the with got much the

these So this let's challenge mean, guys, business. what to e-commerce saying new ring I'm I

do said, million take guy. going those one As to XX I guy get for a just be business we're but And That's X% with X%, starting to yearly of on on, rid us customer. this basis.

line. them X% of do another with are we oh, for? stay some so find can't no, saying, you bottom we'll guys. no, Now, What it can we sucker

we with I it said, X.X%, do guy us that. can back with no, okay, for comes the So to well, live we'll say, But we out. get no,

next year given truckload truck to M&A? is the And it's also in that U.S. on just you do likely the the expect any have are be are in or things, but TCA organic of rates quickly, growth to you -- of up, growth CFI tight, that side the any trucking segment and

that else is is tough and have Greg as is for The issue the a people, driver. mean, question. That's I the same his his sure, everybody team freight there. has

people, find said that is don't guys, do asset that know in company, So like the you do can what and a is that's which like situation is got team David to we with do a they it. to I and what

this the this is bought we guy was from we protection why from CT the this him, bought him, CanPar, CCC the court under it and we bought from that of So we him. from bought

that your and something a to there that shareholders. guys trucks for is and of it's But because was size of but XXX, assets, those which looking are can buy company small position improve could we're and is driver. a So the is not XXX, in we guys we value will we are we're Yes, Because for saying Greg, to because through day I hire revenue very people, there okay, neighborhood, to in cost XXX is other us but we transportation a so be create trying a to through bankrupt okay. busy, our got driver. them company quality with every those hard, Greg yes,

So it time -- takes costs and and money. it

when is what there, it's let's for I've strike company a done in that's XX, buy So the years about company, not expensive. is If we shortage what seeing if deal. a and that Canada, oh small a XX could guys, was buy right how and the we're we

Okay, perfect.

the like team up So we beefed that.

has is like this the So we CanPar. little bought been three is from bit a when under radar those -- company Dave

good lot market now good people. the which is working of and were improving. And guys the get the and we protection we quality but a reason Okay, bankrupt under rates because asset, customers from those of didn't customers we're got are we with court, or the the

why [indiscernible]., to the is what ongoing So there this but is an CT process, CCC, going done fantastic. the we're mean, guys still have same MCT, is I seeing story. it's be

can to small, the through drivers. the but going it's we company, So organically how we the drivers, to right hard grow find get be find if trying to that's

Makes Thank you. sense.

welcome Dave. You are

Please go question line ahead. And Brian your J.P. of next with comes Morgan. from Ossenbeck the

and same drivers investment, it, typically higher a in to the investment Alright, you as that you you're level new behind of a platform using Would quick somewhere good brokerage just LPO, foothold focused level DLS? overall where side, well. but platform intelligence competition I understand would just Hey, with Alain. morning, ones what get have of are of the how side so a and call. currently you you understand -- consider the bolstering to past the businesses in kind think do the of couple U.S., from the U.S. on so of technology especially taking to type just skill have of the just asset on we Thank seen for overall side market looking the sort and of more the to here. the some brokerage I TL do

said and but, to DLS if are like and line we Tom, that when to the people team we to it's focus example, LTL, have grow X% on bring thing Canada the the and at most Tom to us, believe better an transborder guys U.S. the and rates. to call, mostly line. this and mean, talking we you want do and Tom to that guys, the maybe is the number we Well guys your is quality X% than to I than Wow, that could U.S. to domestic yeah But closer bottom have for DLS, that the the you that's on X% top we between to freight rates, grow say, to that's team focus I I to or that But thing be transport absolutely. more the listen of going LTL, the Tom important hey because just line top fast as revenue to new is something said bottom us, grow even grow a and to and company the to he line focus Mexico U.S. X%. Tom one, talk guys, our no. message To on there important on

area focus So, of that's a new guys, of theirs.

immediately that So to that's his could we Tom that one start focus on. team think and area

LTL grow go line DLS really, now, top grow in line will job something mean, right that really our other LTL DLS with with over know but truckload freight. with on doing transborder We the guys that, that intelligence well. us. fantastic through in U.S. it a we mean, the operation the these, at the believe to absolutely, for one, But the are way probably when know us we I partners, LTL our company, I above in market it But believe U.S. And look only the making way which been we there's U.S., side the some done In gets we market, Canadian top there's a can has that the is Canada. not many U.S. fantastic the the job. that in and in still more So example, on market in too could small -- and we consolidation players, today, that's than for better Canada, the the do way money.

that difference the U.S. guys, truckload the market in the our is Canada than the market truckload LTL better LTL The the big more if than in the way different. in a U.S. a in is market, consolidated that's Now, Canada. compare you with is it's much But one

this we give why and really got like billion the I U.S., going is on to Canadian on sense the it's us look dollars call, to is earlier then, at we've oh, said are invest. to us, there, going for when this drivers, what's understand the the what that, in So a fantastic opportunity the

It the one could LTL maybe be know, mile. So we working could another be could company it a could day important in something all U.S. least but deals But market we've in is special the sectors the at many the special be small give we'll last on what could okay, that those done we're TTL all us, okay. be TTL, -- in don't We U.S., now about see. it an on

the side market. On of CFITC, the van good we understanding through have a

great in we're we'll can the start to us. off do growing get we because dust LTL player for with And of size huge a Now over on of DLS such the time then understanding market. a Fantastic. something that Canada

that visibility with side as tech of dealers bring just And think from to LPO, hear just on there, technology the you you in you as investment need do, on investments terms maybe perspective much board? we a not as or brokerages, anything typically the

yes, yes, Yes, yes, yes, yes.

right I move first You we we for year. if know, for talked to have Oracle run going agreement because step using we when is TSC correctly, Tom Fisher, a Gates SAP. they're us Us, so and Mercury remember a now, to

phase, around Oracle we to guys going guys. like effect want early is I but division that's move Mercury we discussion those else? do tools from the one to Oracle. that in a for XXXX. is growing we is It's I probably don't know. first absolutely, this to then our and is then McCleod for So area to to mean, In right do that invest, tool something to phase say, be We're will truckload or the looking the TFI we're step do job one right better to I implementation our use take in for now, SAP [ph], next said we're have too doing the and the people at Gates. the study

to so TMW XXXX. need all to with It's our the on efficient. So looking East, TMW. story people our more on LTL TMW the We're run tools. West probably CF look moving LTLs you even be TMW the right Same at tools have quick operation be now if at to a we our TST LTL, our have to mostly run exit we of in that's in about going were

for that improve tools have to in the is but guys team can goal the a is none us. results always those and We that second we giving by better Canada,

you to well then people to ability and drivers One up MCT, retention, historical the or it's and buy possibility, it bring NCT, to does you wait and when call of the the Understood. more the like of make tight and to far. quick follow-up seeing do going less levels so they in sounds more over future? you What's turnover more the last inclination for assets, to is confident on these some market market hang are need come and with driver get pretty that the on perhaps of to the any freight to

is you you much. the mean, if the tell hey drivers I Brian, no divisions. the thing say, so mean, some with fair, the is This are in look buy the always go that much you on look guys, to Yeah, what there rates year that, recipe real if not was change. team doing you in CanPar, do and is mean, to and Not a issue talk after and rates not I at the to I of well, we're terrible I don't would in so are mean been sure the from same to the Greg that are at for approach quite is, I no, were stuff now company guys bought don't we -- doing a but Also, U.S. would working we keep the let's just it's turn good. you this have we you customer way gone. the the No, quite, mean, we're all trucks and Steve and our the future. an that. it's know over. CT make our market. MCT, approach at that come with if he there The been the I issue, way that there. an

company. proud So we're investing of in CAPEX, we're buying could and the equipment so their their that the be equipment guys

been U.S., we've very, if done well. So, mean, far I at very what in Canada, working and in so successful you we've it's look the

Alright, appreciate it. thanks your Alain, time, for

Pleasure Brian, take care.

line your Cameron of go with the Bank National Doerksen ahead. next Please question from comes And Financial.

morning. Good Thanks.

Morning, Cameron.

Yes.

more operational one a guess me. specific attractive. to landscape view versus just versus of any dry of if to view sub thoughts about for anything bulk segments that is the an a I the liquids, U.S., guess there's mean, I'm get of But quick is truckload of three? specialty wanted TTL around wondering sort that those you've like point better your point special So there just there in just are would focus area from of that M&A one on in I or talked I your flatbed that. competitive I from you

Cameron. question, good very a that's yeah, Yeah,

really transaction so flatbed in the we I the flatbed do a that it's company, is mean, So world. flatbed first CT

us that everything for with OKAY, food, not the bulk, important But in chemicals , to important going steel, stainless or of it's So us. probably be M&A. something in very in terms relates that's to XXXX to

Hallwick [ph]. is Absolutely, priority tanker the When So CCC us world that. one. is really number for for like we when bought Schilli, bought we us

hauling We stuff, largest in Canada whatever juice, etcetera. food wine, the are sugar, the player grade on etcetera,

of was opportunity CT. grade, North areas the liquid focus cement. it's yes our we we'll more okay It and but us So a on food believe really dry looking not much so that focus the the chemicals of at is on that tanker America, specialty some but special for the in ours. in did going world. TTL is on we Flatbed, bulkside good the and really keep Cement the in

Does that include petroleum products?

not No, for petroleum us. is

do of Canada in No, you truck much anyway. was…? don't that specialty And

have I It's small. in small trucks. mean, to XX Montreal, very, a No, operation, about we us. came very this

On to chemicals, the they leave for ship, absolutely in other up Montreal It petroleum but the was ships. company it's for a in? let's very say small, products it $XXX petroleum is us. no, more guys. is We'll is it mostly not. that need we have dock a I that for we're yeah. in mean, the food, if yes, specialty When energy so for is I Honesty the petroleum they sale, don't with not all revenue, of know million business

much. Thanks very Okay, makes sense.

Thank you, Cameron.

next your Chiang CIBC. from question And line comes go ahead. with Kevin Please of the

a here, for it's long a And follow have a just you me up cross-border on lot been partnerships. Thanks DLS call. in Maybe of mentioned acquisition. Alain. know getting the you I

in-house these CS, of you of one LTL, think all with term as them and network longer your partnerships? DLS look cross-border I to you guess wondering, just TSG would cross your think LTL eventually I broader eventually

No.

No, okay.

be with And proud our partnership saying would Hey, business But really a do looking that something which to unprofessional guys of transborder about looked you're side. very huge. on start never on transborder job mean, this mean, something is sure, we're is you what would no, if I the those guys Zaya domestic we're now. how is our part. like you the doing really business, DLS [ph] that at. for I And the well, good we never right at that.

grow with to it. is So, relationship to to have nothing we Zaya DLS. do want we it's But we want no, and no, with the protect got that the

a between deals of on fact, me, domestic the U.S. you with and the Kevin, DLS matter As in side. Zaya

and good congrats the and I you, get clarification for Thank Yeah, else will perfect on you quarter. me, everybody on call. the the

Kevin. you Thank

of Please line [ph]. question And from your next Manuel Crossy the ahead. go comes

Hey, good morning Alain.

results Good that see glad up and paying Manuel, Last Cal’s morning congrats and to U.S. efforts are the for on Mile.

just partner So, Alain through that wondering in we looking fulfillment if to don't investment as There's opportunity at a lot Last with you network been the -- think real of U.S. some want go Shopify Mile, warehousing see great estate. a some to whether companies you

see opportunities some to So with I'm some just you wondering if up eventually? partner guys

Well, with thing the But about in at you is the with got guys industrial business, that's this Yes, said, partnering no. we're mean, we're I we mean, far, having Manuel. so the that's estate I real don't like there. thinking want we same It's someone coverage, be a estate a This drone business in discussion. not like that? I estate of mean, real question real all. and lot are. you good But to the the are thing because

you much yes, we to million, we're unbelievable. like going I said that that in is at it board it's okay, so not the we just answering step, So And, focused time. but getting the It's through $XX by right demand are now, that big. U.S. Cal's we're now have step one getting. but a without on in right on earlier, that, It's $XX demand got U.S. right but know, the team for step really do big, But fine, now. million

So now And very be another million cap. we're could in another right soon. California, with California or also customer just testing for this $XX

the the build But, guys, year potential U.S. we not transmission cannot in for are solid. huge the ago, was if in us a U.S. foundation So

Okay, that Step fine. we're OKAY, the have, solid, organically with fantastic, we say we U.S. number start in can let's e-commerce guys better big much a in now is growing so the our done X% solution we American. which the yes. quality foundation Get sure revenue. build make team not is And lean growing replacing that which time those let's because all that those today so solution the two, and one, are of step U.S. with that mean guys. then sales but let's in is North rid Canada, It's X% with

full our hands we've So got Manuel. right now,

the the over alcohol around TL the question other great the market, Okay, I that but at historical well Class still the I'm we almost yes, clearing last of the below up and also looking A drug pickup order, average. that months, implementation remove are license, the driver's all three XX,XXX look question drivers. the the aware positive is But of was about had the cycle. when around biggest the duration okay, color. that's And we at condition. we Obviously, are market

June that also might implementation ELB make cycle will you You this Speaker] longer may usual be tailwind term that some do so structural positive mandatory XXXX. be or asked long in changes than for Alain? see [Multiple

business U.S., serve companies, U.S., hey, leadership guys, great But And world think in growth. is yes. money like Warner and those the we're I Heartland now as good in so. And the the they to in we also to well. a in about, in good customers, companies influence make like can the and we're all truckload how and this Knight have sustain this the business

changing company right So advantage trucking the the think I of is now. market to that the macro

also to to give longer it's easy clearing maybe. capital still, of but I bad. fine. long truck out, sense also rates a that it takes in mean, of non-professional ever a to than a okay, looks low, lot XX Maybe, the driver you because this more, And because it It is anymore. a ago before -- I professional to like interest buy like are going load you years would as be the like customers was How Okay, are last? getting to can't not said, say, now pressure

So I think you're that right.

more a us for money. more create things bit to value slowly in manner. changing do to to have shareholders, are Now, be changing, we -- in we professional, are we our are but it make little safe But business a

as be safe with are an drivers to safe the have industry. We that road on

I more why than seen tailwinds you is ever with stronger a agree this before. we've little bit So probably

That's time. the great color. Alain, thanks very much for

Manuel. Pleasure

are there to back Alain over I at remarks. no turn will And this the questions time, call for further closing

you very to session. with thank Q&A facilitating spending morning. well our this want everyone for Okay, thank much, us I also for operator time

don't update have returning day working hope great again. I providing everyone another capital reach that possible. stays if on unlocking assured excess And for providing creating call. safe, wonderful questions. a next forward to and any you to hesitate -- out weekend. and rest can you I shareholders, look you You whenever a hard Have International please everyone our and TFI to at In our and the value will continue meantime, thank

disconnect. This you concludes call, may today's now conference