XPO Logistics announces first quarter 2020 results

XPO Logistics, Inc. today announced financial results for the first quarter 2020. Revenue was $3.86 billion for the quarter, compared with $4.12 billion for the same period in 2019. Net income attributable to common shareholders was $21 million for the quarter, compared with $43 million for the same period in 2019. Operating income was $81 million for the quarter, compared with $132 million for the same period in 2019. Diluted earnings per share was $0.20 for the quarter, compared with $0.37 for the same period in 2019.

Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $49 million for the first quarter 2020, compared with $59 million for the same period in 2019. Adjusted diluted earnings per share, a non-GAAP financial measure, was $0.47 for the quarter, compared with $0.51 for the same period in 2019.
 
Adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"), a non-GAAP financial measure, was $333 million for the first quarter 2020, compared with $343 million for the same period in 2019. Adjusted EBITDA for the first quarter 2020 excludes $47 million of transaction, integration and restructuring costs, primarily related to the company’s terminated review of strategic alternatives.
 
For the first three months of 2020, the company generated $180 million of cash flow from operations, compared with a cash usage of $96 million for the same period in 2019. For the first three months of 2020, the company generated $95 million of free cash flow, a non-GAAP measure, compared with a cash usage of $96 million for the same period in 2019. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
 
CEO Comments
 
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “Our results were tracking well until mid-March, when COVID-19 reached pandemic proportions. At that point, our end markets rapidly deteriorated. We acted quickly and took comprehensive safety measures to protect our employees on the front line. I’m immensely grateful to our team for stepping up to the challenge of providing essential supply chain services in this environment.”
 
Jacobs continued, “Importantly, XPO has $2.5 billion of liquidity and an ironclad business model. Even against the current backdrop, we’re on track to generate hundreds of millions of dollars of free cash flow this year. We’re ready to serve customers through the fits and starts of the recovery, however long it takes, with our e-commerce capabilities, intelligent automation in our warehouses, a digitally connected transportation platform and keen visibility into operating data.”
 
Liquidity
 
As of March 31, 2020, XPO had total cash and borrowing capacity of $1.3 billion. In April, the company issued $850 million of 6.25% senior notes maturing in 2025 and added a new $350 million senior secured credit facility. Pro forma for the April financing activities, the company’s total liquidity increased to $2.5 billion, including $2.0 billion of cash, as of March 31, 2020. XPO has no significant debt maturing until June 2022.
 
2020 Guidance
 
The company withdrew its full-year 2020 guidance on April 23, 2020 in light of the COVID-19 pandemic.