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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 1, 2024

 

XPO, INC.

(Exact name of registrant as specified in its charter) 

 

Delaware    001-32172    03-0450326
(State or other jurisdiction of
incorporation) 		   (Commission File Number)    (I.R.S. Employer
Identification No.)

 

Five American Lane, Greenwich, Connecticut 06831
(Address of principal executive offices)

 

(855) 976-6951

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered
Common stock, par value $0.001 per share   XPO   New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 
Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

Item 2.02.   Results of Operations and Financial Condition.

 

On August 1, 2024, XPO, Inc. (the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01.   Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Exhibit Description
  99.1     Press Release, dated August 1, 2024, issued by XPO, Inc.
  104     Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: August 1, 2024 XPO, INC.
   
  By: /s/ Kyle Wismans
    Kyle Wismans
    Chief Financial Officer

 

 

 

 

Exhibit 99.1

 

 

XPO Reports Second Quarter 2024 Results

 

GREENWICH, Conn. – August 1, 2024 – XPO (NYSE: XPO) today announced its financial results for the second quarter 2024. The company reported diluted earnings from continuing operations per share of $1.25, compared with $0.27 for the same period in 2023, and adjusted diluted earnings from continuing operations per share of $1.12, compared with $0.71 for the same period in 2023.

 

Second Quarter 2024 Summary Results

 

Three months ended June 30,  Revenue   Operating Income (Loss) 
(in millions)  2024   2023   Change %   2024   2023   Change % 
North American Less-Than-Truckload Segment  $1,272   $1,136    12.0%  $203   $129    57.4%
European Transportation Segment   808    781    3.5%   10    12    -16.7%
Corporate   -    -    0.0%   (16)   (34)   -52.9%
Total  $2,079   $1,917    8.5%  $197   $107    84.1%

 

Three months ended June 30,   Adjusted Operating Income(1)  Adjusted EBITDA(1) 
(in millions)   2024    2023   Change %   2024   2023   Change % 
North American Less-Than-Truckload Segment   $214    $142    50.7%  $297   $208    42.8%
European Transportation Segment    19     18    5.6%   49    46    6.5%
Corporate     NA       NA     NA    (3)   (10)   -70.0%
Total   $ NA     $ NA     NA   $343   $244    40.6%

 

Three months ended June 30,  Net Income(2)   Diluted EPS(3) 
(in millions, except for per-share data)  2024   2023   Change %   2024   2023   Change % 
Total  $150   $31    383.9%  $1.25   $0.27    363.0%

 

Three months ended June 30,  Diluted Weighted-Average
Common Shares
Outstanding		           Adjusted Diluted EPS(1)(3) 
(in millions, except for per-share data)  2024   2023           2024   2023   Change % 
Total   120    118           $1.12   $0.71    57.7%

 

Amounts may not add due to rounding.

NA - Not applicable

(1) See the “Non-GAAP Financial Measures” section of the press release

(2) Net income from continuing operations

(3) Diluted earnings from continuing operations per share ("diluted EPS")

 

Mario Harik, chief executive officer of XPO, said, “We reported a strong second quarter of earnings growth, underpinned by a year-over-year increase in revenue of 9%. Companywide, we grew adjusted EBITDA by 41% and adjusted diluted EPS by 58%.

 

“In North American LTL, we continued to deliver service at record levels, with the best damage claims ratio in our history at 0.2%. This helped drive above-market yield growth, ex-fuel, of 9%, and a 3.4% increase in tonnage per day, with 4.5% more shipments per day. We also operated more cost efficiently, reducing purchased transportation and increasing labor productivity. As a result, we reported a 51% increase in adjusted operating income and improved our adjusted operating ratio by 440 basis points to 83.2%. In addition, we’ve now opened 14 of the 28 service centers we acquired in December, with another 10 expected this year.”

 

Harik continued, “Our strong performance demonstrates the steady progress we’re making toward becoming the LTL service leader in North America. We’ll continue to build our service offering, invest in capacity ahead of demand and operate more efficiently. This strategy is creating a long runway for future margin expansion.”

 

1 

 

 

Second Quarter Highlights

 

For the second quarter 2024, the company generated revenue of $2.08 billion, compared with $1.92 billion for the same period in 2023. The year-over-year increase in revenue was due primarily to higher yield and tonnage per day in the North American LTL segment.

 

Operating income was $197 million for the second quarter, compared with $107 million for the same period in 2023. Net income from continuing operations was $150 million for the second quarter, compared with $31 million for the same period in 2023. The year-over-year increase in net income from continuing operations includes a one-time tax benefit of $41 million related to the reorganization of the company’s legal entities in the European business. Diluted earnings from continuing operations per share was $1.25 for the second quarter, compared with $0.27 for the same period in 2023.

 

Adjusted net income from continuing operations, a non-GAAP financial measure, was $135 million for the second quarter, compared with $83 million for the same period in 2023, and excludes the $41 million tax benefit. Adjusted diluted EPS, a non-GAAP financial measure, was $1.12 for the second quarter, compared with $0.71 for the same period in 2023.

 

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $343 million for the second quarter, compared with $244 million for the same period in 2023.

 

The company generated $210 million of cash flow from operating activities in the second quarter, and ended the quarter with $250 million of cash and cash equivalents on hand, after $184 million of net capital expenditures.

 

Results by Business Segment

 

·North American Less-Than-Truckload (LTL): The segment generated revenue of $1.27 billion for the second quarter 2024, compared with $1.14 billion for the same period in 2023. On a year-over-year basis, shipments per day increased 4.5%, tonnage per day increased 3.4%, and yield, excluding fuel, increased 9.0%. Including fuel, yield increased 7.8%.

 

    Operating income was $203 million for the second quarter 2024, compared with $129 million for the same period in 2023. Adjusted operating income, a non-GAAP financial measure, was $214 million for the second quarter, compared with $142 million for the same period in 2023. Adjusted operating ratio, a non-GAAP financial measure, was 83.2%, reflecting a year-over-year improvement of 440 basis points.

 

    Adjusted EBITDA for the second quarter 2024 was $297 million, compared with $208 million for the same period in 2023. The year-over-year increase in adjusted EBITDA was due primarily to higher yield, excluding fuel, and an increase in tonnage per day.

 

2 

 

 

·European Transportation: The segment generated revenue of $808 million for the second quarter 2024, compared with $781 million for the same period in 2023. Operating income was $10 million for the second quarter, compared with $12 million for the same period in 2023.

 

Adjusted EBITDA was $49 million for the second quarter 2024, compared with $46 million for the same period in 2023.

 

·Corporate: The segment generated an operating loss of $16 million for the second quarter 2024, compared with a loss of $34 million for the same period in 2023. The year-over-year improvement in operating loss was due primarily to a $6 million reduction in transaction and integration costs and a $4 million reduction in restructuring costs.

 

    Adjusted EBITDA, a non-GAAP financial measure, was a loss of $3 million for the second quarter 2024, compared with a loss of $10 million for the same period in 2023, reflecting a year-over-year improvement from the company’s continued rationalization of corporate overhead costs.

 

Conference Call

 

The company will hold a conference call on Thursday, August 1, 2024, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 1-877-269-7756; international callers dial +1-201-689-7817. A live webcast of the conference will be available on the investor relations area of the company’s website, xpo.com/investors. The conference will be archived until August 31, 2024. To access the replay by phone, call toll-free (from US/Canada) 1-877-660-6853; international callers dial +1-201-612-7415. Use participant passcode 13747657.

 

About XPO

 

XPO, Inc. (NYSE: XPO) is a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The company’s customer-focused organization efficiently moves 18 billion pounds of freight per year, enabled by its proprietary technology. XPO serves approximately 53,000 customers with 615 locations and 38,000 employees in North America and Europe, with headquarters in Greenwich, Conn., USA. Visit xpo.com for more information, and connect with XPO on LinkedIn, Facebook, X, Instagram and YouTube.

 

Non-GAAP Financial Measures

 

As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release.

 

XPO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) on a consolidated basis and for corporate; adjusted EBITDA margin on a consolidated basis; adjusted net income from continuing operations; adjusted diluted earnings from continuing operations per share (“adjusted diluted EPS”); adjusted operating income for our North American Less-Than-Truckload and European Transportation segments; and adjusted operating ratio for our North American Less-Than-Truckload segment.

 

3 

 

 

We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, XPO and its business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should only be used as supplemental measures of our operating performance.

 

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income from continuing operations, adjusted diluted EPS, adjusted operating income and adjusted operating ratio include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the attached tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, consulting fees, stock-based compensation, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems. Restructuring costs primarily relate to severance costs associated with business optimization initiatives. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating XPO’s and each business segment’s ongoing performance.

 

We believe that adjusted EBITDA and adjusted EBITDA margin improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables that management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses. We believe that adjusted net income from continuing operations and adjusted diluted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains that management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets, transaction and integration costs, restructuring costs and other adjustments as set out in the attached tables. We believe that adjusted operating income and adjusted operating ratio improve the comparability of our operating results from period to period by removing the impact of certain transaction and integration costs and restructuring costs, as well as amortization expenses as set out in the attached tables.

 

Forward-looking Statements

 

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

 

4 

 

 

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers’ demands; our ability to implement our cost and revenue initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; changes in expected growth in trade between the US and Mexico affecting demand; changes in the future needs of cross-border shippers; increased or decreased demand for cross-border LTL shipping; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain key employees including qualified drivers; labor matters; litigation; and competition and pricing pressures.

 

All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.

 

Investor Contact

Brian Scasserra

+1 617-607-6429

brian.scasserra@xpo.com

 

Media Contact

Cole Horton

+1 203-609-6004

cole.horton@xpo.com

 

5 

 

 

XPO, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2024   2023   Change %   2024    2023   Change % 
Revenue  $2,079   $1,917    8.5%  $4,097    $3,824    7.1%
Salaries, wages and employee benefits   854    783    9.1%   1,688     1,545    9.3%
Purchased transportation   436    444    -1.8%   874     901    -3.0%
Fuel, operating expenses and supplies   402    390    3.1%   814     817    -0.4%
Operating taxes and licenses   21    15    40.0%   40     30    33.3%
Insurance and claims   33    46    -28.3%   71     90    -21.1%
Gains on sales of property and equipment   (4)   (2)   100.0%   (5)    (5)   0.0%
Depreciation and amortization expense   122    107    14.0%   239     208    14.9%
Transaction and integration costs   12    17    -29.4%   26     39    -33.3%
Restructuring costs   6    10    -40.0%   14     34    -58.8%
Operating income   197    107    84.1%   335     165    103.0%
Other income   (6)   (3)   100.0%   (16)    (8)   100.0%
Debt extinguishment loss   -    23    -100.0%   -     23    -100.0%
Interest expense   56    43    30.2%   114     85    34.1%
Income from continuing operations before income tax provision   147    44    234.1%   237     65    264.6%
Income tax provision (benefit)   (3)   13    NM    20     17    17.6%
Income from continuing operations   150    31    383.9%   217     48    352.1%
Income (loss) from discontinued operations, net of taxes   -    2    -100.0%   -     (1)   -100.0%
Net income  $150   $33    354.5%  $217    $47    361.7%
                                
Net income (loss)                               
Continuing operations  $150   $31        $217    $48      
Discontinued operations   -    2         -     (1)     
Net income  $150   $33        $217    $47      
                                
Basic earnings (loss) per share (1)                               
Continuing operations  $1.29   $0.27        $1.87    $0.42      
Discontinued operations   -    0.01         -     (0.01)     
Basic earnings per share  $1.29   $0.28        $1.87    $0.41      
Diluted earnings (loss) per share (1)                               
Continuing operations  $1.25   $0.27        $1.81    $0.41      
Discontinued operations   -    0.01         -     (0.01)     
Diluted earnings per share  $1.25   $0.28        $1.81    $0.40      
                                
Weighted-average common shares outstanding                               
Basic weighted-average common shares outstanding   116    116         116     116      
Diluted weighted-average common shares outstanding   120    118         120     117      

 

Amounts may not add due to rounding.

NM - Not meaningful.

(1) The sum of quarterly earnings (loss) per share may not equal year-to-date amounts due to differences in the weighted-average number of shares outstanding during the respective periods.

 

6 

 

 

XPO, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In millions, except per share data)

 

   June 30,   December 31, 
   2024   2023 
ASSETS          
Current assets          
Cash and cash equivalents  $250   $412 
Accounts receivable, net of allowances of $45 and $45, respectively   1,088    973 
Other current assets   210    208 
Total current assets   1,548    1,593 
Long-term assets          
Property and equipment, net of $1,954 and $1,853 in accumulated depreciation, respectively   3,305    3,075 
Operating lease assets   742    708 
Goodwill   1,481    1,498 
Identifiable intangible assets, net of $476 and $452 in accumulated amortization, respectively   392    422 
Other long-term assets   262    196 
Total long-term assets   6,182    5,899 
Total assets  $7,729   $7,492 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities          
Accounts payable  $477   $532 
Accrued expenses   772    775 
Short-term borrowings and current maturities of long-term debt   64    69 
Short-term operating lease liabilities   129    121 
Other current liabilities   99    93 
Total current liabilities   1,542    1,590 
Long-term liabilities          
Long-term debt   3,330    3,335 
Deferred tax liability   364    337 
Employee benefit obligations   88    91 
Long-term operating lease liabilities   613    588 
Other long-term liabilities   294    285 
Total long-term liabilities   4,688    4,636 
           
Stockholders’ equity          
Common stock, $0.001 par value; 300 shares authorized; 116 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively   -    - 
Additional paid-in capital   1,322    1,298 
Retained earnings   402    185 
Accumulated other comprehensive loss   (225)   (217)
Total equity   1,499    1,266 
Total liabilities and equity  $7,729   $7,492 

 

Amounts may not add due to rounding. 

 

7 

 

 

XPO, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)

 

   Six Months Ended
   June 30,  
   2024   2023 
Cash flows from operating activities of continuing operations          
Net income  $217   $47 
Loss from discontinued operations, net of taxes   -    (1)
Income from continuing operations   217    48 
Adjustments to reconcile income from continuing operations to net cash from operating activities          
Depreciation and amortization   239    208 
Stock compensation expense   42    41 
Accretion of debt   5    7 
Deferred tax expense (benefit)   25    (6)
Gains on sales of property and equipment   (5)   (5)
Other   6    39 
Changes in assets and liabilities          
Accounts receivable   (135)   (64)
Other assets   (67)   (31)
Accounts payable   14    (57)
Accrued expenses and other liabilities   13    27 
Net cash provided by operating activities from continuing operations   355    207 
Cash flows from investing activities of continuing operations          
Payment for purchases of property and equipment   (496)   (355)
Proceeds from sale of property and equipment   13    13 
Net cash used in investing activities from continuing operations   (483)   (342)
Cash flows from financing activities of continuing operations          
Proceeds from issuance of debt   -    1,977 
Repurchase of debt   -    (2,003)
Repayment of debt and finance leases   (39)   (35)
Payment for debt issuance costs   (4)   (15)
Change in bank overdrafts   27    51 
Payment for tax withholdings for restricted shares   (17)   (12)
Other   (1)   1 
Net cash used in financing activities from continuing operations   (35)   (36)
Cash flows from discontinued operations          
Operating activities of discontinued operations   -    (8)
Investing activities of discontinued operations   -    1 
Net cash used in discontinued operations   -    (7)
Effect of exchange rates on cash, cash equivalents and restricted cash   -    5 
Net decrease in cash, cash equivalents and restricted cash   (162)   (173)
Cash, cash equivalents and restricted cash, beginning of period   419    470 
Cash, cash equivalents and restricted cash, end of period  $256   $297 

 

Amounts may not add due to rounding.

 

8 

 

 

North American Less-Than-Truckload Segment
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2024   2023   Change %   2024   2023   Change % 
Revenue (excluding fuel surcharge revenue)  $1,064   $940    13.2%  $2,075   $1,843    12.6%
Fuel surcharge revenue   208    196    6.1%   418    413    1.2%
Revenue   1,272    1,136    12.0%   2,493    2,256    10.5%
Salaries, wages and employee benefits   639    573    11.5%   1,252    1,128    11.0%
Purchased transportation   68    87    -21.8%   146    186    -21.5%
Fuel, operating expenses and supplies (1)   236    226    4.4%   479    474    1.1%
Operating taxes and licenses   16    12    33.3%   32    24    33.3%
Insurance and claims   20    33    -39.4%   41    61    -32.8%
Losses on sales of property and equipment   1    1    0.0%   3    2    50.0%
Depreciation and amortization   86    71    21.1%   168    139    20.9%
Transaction and integration costs   -    -    0.0%   1    -    NM 
Restructuring costs   1    4    -75.0%   2    10    -80.0%
Operating income   203    129    57.4%   368    232    58.6%
Operating ratio (2)   84.1%   88.7%        85.2%   89.7%     
Amortization expense   9    9         18    17      
Transaction and integration costs   -    -         1    -      
Restructuring costs   1    4         2    10      
Adjusted operating income (3)  $214   $142    50.7%  $389   $259    50.2%
Adjusted operating ratio (3) (4)   83.2%   87.6%        84.4%   88.5%     
Depreciation expense   77    62         150    122      
Pension income   6    4         13    8      
Other   -    -         -    1      
Adjusted EBITDA (5)  $297   $208    42.8%  $551   $390    41.3%
Adjusted EBITDA margin (6)   23.3%   18.3%        22.1%   17.3%     

 

Amounts may not add due to rounding.

NM - Not meaningful.

(1) Fuel, operating expenses and supplies includes fuel-related taxes.

(2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts.

(3) See the “Non-GAAP Financial Measures” section of the press release.

(4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio.

(5) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280.

(6) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.

 

9 

 

 

North American Less-Than-Truckload
Summary Data Table
(Unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2024   2023   Change %   2024   2023   Change % 
Pounds per day (thousands)   72,658    70,290    3.4%   71,687    69,587    3.0%
                               
Shipments per day   53,519    51,220    4.5%   52,460    50,159    4.6%
                               
Average weight per shipment (in pounds)   1,358    1,372    -1.1%   1,367    1,387    -1.5%
                               
Revenue per shipment (including fuel surcharges)  $370.98   $348.86    6.3%  $372.39   $352.40    5.7%
                               
Revenue per shipment (excluding fuel surcharges)  $310.24   $288.75    7.4%  $309.91   $287.83    7.7%
                               
Gross revenue per hundredweight (including fuel surcharges) (1)  $28.04   $26.01    7.8%  $27.92   $26.00    7.4%
                               
Gross revenue per hundredweight (excluding fuel surcharges) (1)  $23.56   $21.63    9.0%  $23.35   $21.34    9.4%
                               
Average length of haul (in miles)   847.8    836.7         848.1    834.1      
                               
Total average load factor (2)   22,884    22,822    0.3%   22,877    22,956    -0.3%
                               
Average age of tractor fleet (years)   4.0    5.1                     
                               
Number of working days   64.0    63.5         127.5    127.5      

 

(1) Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company's revenue recognition policy.

(2) Total average load factor equals freight pound miles divided by total linehaul miles.

Note: Table excludes the company's trailer manufacturing operations. Percentages presented are calculated using the underlying unrounded amounts.

 

10 

 

 

European Transportation Segment
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2024   2023   Change %   2024   2023   Change % 
Revenue  $808   $781    3.5%  $1,605   $1,568    2.4%
Salaries, wages and employee benefits   212    203    4.4%   428    406    5.4%
Purchased transportation   368    357    3.1%   728    715    1.8%
Fuel, operating expenses and supplies (1)   165    162    1.9%   335    337    -0.6%
Operating taxes and licenses   4    3    33.3%   8    6    33.3%
Insurance and claims   13    13    0.0%   27    28    -3.6%
Gains on sales of property and equipment   (5)   (3)   66.7%   (9)   (7)   28.6%
Depreciation and amortization   35    33    6.1%   70    65    7.7%
Transaction and integration costs   1    -    NM    1    1    0.0%
Restructuring costs   3    1    200.0%   11    8    37.5%
Operating income  $10   $12    -16.7%  $6   $9    -33.3%
Amortization expense   5    5         10    10      
Transaction and integration costs   1    -         1    1      
Restructuring costs   3    1         11    8      
Adjusted operating income (2)  $19   $18    5.6%  $28   $28    0.0%
Depreciation expense   30    28         59    55      
Adjusted EBITDA (3)  $49   $46    6.5%  $87   $83    4.8%
Adjusted EBITDA margin (4)   6.1%   6.0%        5.4%   5.3%     

 

Amounts may not add due to rounding.

NM - Not meaningful.

(1) Fuel, operating expenses and supplies includes fuel-related taxes.

(2) See the “Non-GAAP Financial Measures” section of the press release.

(3) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280.

(4) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.

 

11 

 

 

Corporate
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2024   2023   Change %   2024   2023   Change % 
Revenue  $-   $-    0.0%  $-   $-    0.0%
Salaries, wages and employee benefits   3    7    -57.1%   8    11    -27.3%
Fuel, operating expenses and supplies   -    2    -100.0%   -    6    -100.0%
Operating taxes and licenses   -    -    0.0%   -    -    0.0%
Insurance and claims   -    -    0.0%   3    1    200.0%
Depreciation and amortization   1    3    -66.7%   2    4    -50.0%
Transaction and integration costs   11    17    -35.3%   24    38    -36.8%
Restructuring costs   1    5    -80.0%   1    16    -93.8%
Operating loss  $(16)  $(34)   -52.9%  $(39)  $(76)   -48.7%
Other income (expense) (1)   -    (1)        3    (1)     
Depreciation and amortization   1    3         2    4      
Transaction and integration costs   11    17         24    38      
Restructuring costs   1    5         1    16      
Adjusted EBITDA (2)  $(3)  $(10)   -70.0%  $(8)  $(19)   -57.9%

 

Amounts may not add due to rounding.

(1) Other income (expense) consists of foreign currency gain (loss) and other income (expense).

(2) See the “Non-GAAP Financial Measures” section of the press release.

 

12 

 

 

XPO, Inc.
Reconciliation of Non-GAAP Measures
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2024   2023   Change %   2024   2023   Change % 
Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA                              
Net income from continuing operations  $150   $31    383.9%  $217   $48    352.1%
Debt extinguishment loss   -    23         -    23      
Interest expense   56    43         114    85      
Income tax provision (benefit)   (3)   13         20    17      
Depreciation and amortization expense   122    107         239    208      
Transaction and integration costs   12    17         26    39      
Restructuring costs   6    10         14    34      
Adjusted EBITDA (1)  $343   $244    40.6%  $631   $454    39.0%
Revenue  $2,079   $1,917    8.5%  $4,097   $3,824    7.1%
Adjusted EBITDA margin (1) (2)   16.5%   12.7%        15.4%   11.9%     

 

Amounts may not add due to rounding.

(1) See the “Non-GAAP Financial Measures” section of the press release.

(2) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.

 

13 

 

 

XPO, Inc.
Reconciliation of Non-GAAP Measures (cont.)
(Unaudited)
(In millions, except per share data)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2024   2023   2024   2023 
Reconciliation of Net Income from Continuing Operations and Diluted Earnings Per Share from Continuing Operations to Adjusted Net Income from Continuing Operations and Adjusted Earnings Per Share from Continuing Operations                    
Net income from continuing operations  $150   $31   $217   $48 
Debt extinguishment loss   -    23    -    23 
Amortization of acquisition-related intangible assets   14    14    28    27 
Transaction and integration costs   12    17    26    39 
Restructuring costs   6    10    14    34 
Income tax associated with the adjustments above (1)   (6)   (12)   (12)   (23)
European legal entity reorganization (2)   (41)   -    (41)   - 
                     
Adjusted net income from continuing operations (3)  $135   $83   $232   $148 
                     
Adjusted diluted earnings from continuing operations per share (3)  $1.12   $0.71   $1.93   $1.27 
                     
Weighted-average common shares outstanding                    
Diluted weighted-average common shares outstanding   120    118    120    117 

 

Amounts may not add due to rounding.

 

(1) This line item reflects the aggregate tax benefit of all non-tax related adjustments reflected in the table above. The detail by line item is as follows:

 

Debt extinguishment loss  $-   $5   $-   $5 
Amortization of acquisition-related intangible assets   3    3    7    6 
Transaction and integration costs   1    2    3    5 
Restructuring costs   1    2    3    7 
   $6   $12   $12   $23 

 

Amounts may not add due to rounding.

The income tax rate applied to reconciling items is based on the GAAP annual effective tax rate, excluding discrete items, non-deductible compensation, and contribution- and margin-based taxes.

 

(2) Reflects a tax benefit recognized in the second quarter of 2024 related to a legal entity reorganization within our European Transportation business.

(3) See the "Non-GAAP Financial Measures" section of the press release.

 

14 

 

v3.24.2.u1
Cover
Aug. 01, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Aug. 01, 2024
Entity File Number 001-32172
Entity Registrant Name XPO, INC.
Entity Central Index Key 0001166003
Entity Tax Identification Number 03-0450326
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One Five American Lane
Entity Address, City or Town Greenwich
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06831
City Area Code 855
Local Phone Number 976-6951
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.001 per share
Trading Symbol XPO
Security Exchange Name NYSE
Entity Emerging Growth Company false
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