TFI International

TFI International Inc. is a Canadian transport and logistics company based in Montreal, Quebec. It operates across Canada through 4 business segments, and in the United States. It has Canada's largest LTL business,[5] largest trucking fleet[6] and ranked 14th in terms of revenue in 2005 among North American LTL carriers[7] however more recent lists such as suggest it may be closer to top 5 (2010 1st qtr revenue TFI International $466.1 million versus 5th ranked US company $359.9 million[8]). Its trucking fleet consists of 6700 power units and 12000 trailers.[9] Two thirds of business comes from operations in Eastern Canada while the rest is from Western Canada.

TFI International Inc.
FormerlyCabano (1985–1992)
Kingsway (1992–1999)
TransForce (2000–2016)
TypePublic
TSX: TFII
IndustryTransport and Logistics
Founded1957
FounderEmond brothers
Headquarters
Saint-Laurent, Montreal
,
Canada
Key people
Alain Bédard Chairman, President & CEO
André Bérard Director
RevenueC$5,123,208 (2018)[1]
C$291,994,000 (2018)
Total assetsC$4,049.960 (2018)[2]
Total equityAwaiting (2018)
Number of employees
17,325 (2017)[3]
17,500 (2018)[4]
Divisions68
SubsidiariesTST Overland Express
Websitetfiintl.com/en/home/

The company's main source of growth has been complete takeovers (it holds no stakes in other companies) of smaller trucking companies (35 in the period of 1992 to 2010) which are then made into subsidiaries, though more recently organic growth contributed to the 53% rise in freight in the first half of 2010.[10] In December 2010 it entered the US market by acquiring Dallas based Dynamex with a $248 million takeover offer. In the 12 months leading up to October 31, 2010 Dynamex made $418 million in revenue (about a quarter as much as TFI International).[11] Even though TFI International cut its trucking fleet by 100 power units in 2010 revenue didn't fall, the result of improved equipment efficiency.[12][13][14] Former Quebec premier Lucien Bouchard is a member of the board of directors, representing the interests of Davies Ward Phillips & Vineberg.[15]

In 2017, each business unit contributed the following to total revenue : package and courier 28% (vs 34%), Less-Than-Truckload 19% (vs 20%), Truckload 46% (vs 40%), Logistics 7% (vs 6%). Main competitors are Purolator Courier Ltd., UPS and Fedex (international), Nationex and Dicom (regional), Day & Ross Inc. (LTL) and Manitoulin Transport Inc, Challenger Motor Freight Inc. and SGT 2000 Inc.; and in the Logistics sector, C.H. Robinson. In 2017 3882 employees were added through business acquisitions.[4]

For 2012, all of the revenue growth came from the package and courier segment attributable to newly acquired Dynamex (1q2011) and Loomis Express (2q2011); the existing customer base experienced lower shipping volumes.[16] In 2012 each business unit contributed the following to total revenue (before eliminations): Package and Courier 36.5% (2011 35.3%, 2010 19.2%), Less-Than-Truckload 20.4% (2011 18.4%, 2010 26.2%), Truckload 19.0% (2011 22.7%, 2010 29.6%), Specialized Services 24.0% (2011 23.6%, 2010 25.6%).[17] Top customers contributed 55% of total revenue between January and June 2011; They are involved in the retail (21%), energy (18%), services (12%), automotive (8%), waste management (6%), metals & mining (6%) and forestry (5%) industries.[3] 56.5% of business comes from Canada, 43.1% USA, 0.4% Mexico.[1]

History
ICS Courier van
  • The company's origins can be traced back to 1957 to a small trucking service based in Cabano, Quebec.[18][19] It was incorporated in 1985, known as Cabano until 1992 when it acquired Kingsway and was renamed Cabano-Kingsway Inc.[20]
  • In 1999, it changed its name to TFI International [21]
  • In February 2000, TST Solutions is purchased, this includes TST Overland Express
  • From 2002-2008 it was an income trust fund called TransForce Income Fund (traded under the symbol TIF on the TSX).
  • Since 1992, 35 companies have been acquired.[22]
  • Canpar Courier, a non-expedited parcel-delivery company based in Brampton, Ont., was purchased by Transforce (now known as TFI International) in 2002 and is a key member of the parcel delivery segment. Canpar Courier, first established in 1976 as a separate division of Canadian Pacific Trucks, had revenues of approximately $140 million in 2001. The company, which maintains 53 terminals across Canada, operates more than 1,000 vehicles. It also provides transborder services through interline agreements with third party regional and national carriers.
  • In January 2004, TFI International acquired substantially all assets of Canadian Freightways for CDN $69.6 million plus assumption of loans and credit facilities of CDN $15 million from Consolidated Freightways, which unexpectedly filed for bankruptcy in 2002. Canadian Freightways has a staff of 1,500 employees. The company's operations include LTL, truckload, sufferance warehouses, customs brokerage, international freight forwarding, and logistics management. Combined revenues reported for the last fiscal year were CDN $236 million.
  • On October 31, 2007, TFI International acquired Century II Holdings Inc., whose wholly owned subsidiary Information Communication Services (ICS Courier) operates a fixed route courier business servicing in excess of 35,000 accounts in the insurance, optical, financial, travel, dental and legal business sectors across Canada. Established in 1978, ICS Courier is headquartered in Toronto and employs a workforce of more than 1,300 employees and owner-operators through a network of 35 offices. In 2006, ICS Courier generated approximately $90 million in revenues.
  • On November 19, 2009, TFI International closed its acquisition of the Retail Solutions Division of ATS Andlauer Transportation Services Limited Partnership (ATS). The acquired Division generates approximately $120 million in annual revenue. It relies on 165 owner operators for the bulk of its business and employs a total of 447 employees. On January 1, 2014 ATS Retail Solutions was rebranded to TForce Integrated Solutions.
  • On August 17, 2010, TFI International acquired an equity interest in Calgary's EnQuest Energy Services and its subsidiaries, including Speedy Heavy Hauling. IFI International's U.S. subsidiary, Hemphill Trucking, will pay US$32 million for the assets, which will be merged with Hemphill under the new name of Hemphill-Speedy, headquartered in Grand Junction, Colo. The deal is initially for 19 percent equity in EnQuest with an option to acquire the remaining 81 percent in the next three years. EnQuest provides energy services, primarily in the U.S., such as goods transport, rig-moving, crane services, specialized heavy hauling, oilfield equipment rentals, retailing of new and refurbished oil country tubular goods, and pipe storage. In June, 2012 Kos Oilfield Transportation and Howard's Transport (both TFI International companies) combined to form TForce Energy Services, Inc. The re-organization also brought Hemphill Speedy in the USA and IE Miller into TForce Energy Services.
  • December 2010 attempts to enter the US market by offering to take over Canada/US logistics, Dallas based business Dynamex (nasdaq:DDMX) which had revenues of $418 million in the year leading up October 31, 2010. The offer was $248 million about the same as its market value.[11] TFI International completed the takeover of Dynamex in February 2011.
  • On June 27, 2011, TFI International acquired the Canadian assets of DHL, and will be operating it domestically as Loomis Express. It will remain allied with DHL for international shipping.
  • In August 2011, TFI International acquired Toronto-based cross-border LTL and Truckload company Concord Transportation Inc. for $10 million which includes $2 million in company shares. Concord Transport has annual revenues of $35 million, 96 employees and offices in Illinois, California and Washington in addition to Western Canada.[23]
  • On November 30, 2011, TFI International took over IE Miller Services. The company operates eight terminals in Texas, Louisiana, Oklahoma, North Dakota and Colorado. IE Miller, formerly a subsidiary of Complete Production Services was founded in 1936 and has a workforce numbering approximately 400.[24]
  • In December 2011, TFI International acquired Pedersen Transport. Pedersen Transport was a family owned and operated LTL and TL company which has been serving southern Alberta since 1966.
  • Normandin Transit (LTL/Truckload), Brasseur Transport (US/Canada liquid bulk transport), Timeline Logistic (oil/gas, forestry).[25] were all acquired in 2018.
  • In September 2020, it acquires DLS from U.S. company, R. R. Donnelley & Sons for $225 millions US.[26]
  • In January 2021, TFI International agreed to purchase UPS Freight for $800 million. The deal is expected to close in the second quarter of the year.[27]

Business segments and divisions

Part of the company's strategy has been to give subsidiaries (most were at one time independent companies) a certain level of autonomy. That allows each subsidiary to continue to cater to different regional markets, giving the parent company access to more markets. TFI International then uses its influence and cash flow to help increase the capacity of each subsidiary (like it did in 2010 when its purchase of a 52-door cross dock terminal in Calgary tripled the capacity of TST Overland and expanded its shipping network).[28] For the 2010 year, overall revenue increased slightly (8.4%) but LTL revenue decreased 5.9% (because of lower prices and the stronger Canadian dollar); the company's takeover of ATS Retail Solutions together with an agreement signed by Canpar with the Ontario government, improved results for the package-courier business.[12]

In 2011 TFI International's adjusted profit (excludes the effects of derivatives and foreign exchange rates) was $102.5 million (up 43%) on revenue of $2,690.53 million (up 34%, for the 4q revenue up 46%, profit up 63%).[17][29] Newly acquired Dynamex and Loomis Express contributed revenues of $202 million for TFI International in 2011. They accounted for virtually all of the change in fourth quarter sales and $608 million of the $688 million increase over the year.

  • Package and Courier (6 divisions) - TForce Integrated Solutions (ATS Retail Solutions), Canpar Courier, ICS Courier, Dynamex, Loomis Express, All Canadian Courier.
  • Container transport (2 divisions)Clarke Road Transport‚ JAF 2000 Transport.
  • Less-Than-Truckload (10 divisions) - Canadian Freightways,Clarke Transport‚ Click Express, Concord, Kingsway, La Crete Transport, Pedersen Transport, Quik X Transportation, TST Overland Express‚ Vitran Express Canada, Cavalier Transport(Bolton,ON).
  • Truckload (26 divisions) - A&M International, Bergeron, Besner, CF Dedicated Services, Couture, Durocher International, Ganeca, GHL Transport, Golden International, Grégoire, Highland, Highland Intermodal, J.C. Germain, Kingsway Bulk, Legal Freight Services, McArthur Express, Mirabel Logistic, Nordique, P&W Intermodal & MTMX, Papineau International, Roadfast, Trans4 Logistics (Dedicated Division), TST Expedited and TST Air, TST Truckload and Load Brokerage, Contrans Flatbed, Tri-Line Carriers.
  • Specialized Services (21 divisions)
    • Services to the Energy Sector - CF Truckload & Logistics, McMurray Serv-U Expediting, Rebel Transport, TForce Energy Services, Westfreight Systems, Winalta
    • Logistics Services - CK Logistics, Clarke North America, Craler Inc, E&L Logistics, Kobelt Transportation, Patriot Freight Services, Quik X Logistics, St-Lambert, Stream Logistics, Trans4 Logistics, Cornerstone Logistics

References
  1. "TFI International Q4 ending December 31, 2017" (PDF).
  2. "TFI International company snapshot". FPinfomart.ca. Retrieved 2010-05-01.
  3. (PDF) http://tfiintl.com/wp-content/uploads/2016/10/TFI_Q3-2016-Quarterly-Report_FR.pdf. Missing or empty |title= (help)
  4. "2017 third quarter report" (PDF).
  5. "TFI International in buying mood". 2009-09-10.
  6. "TFI International expands its waste section". todaystrucking.com. 2010-03-02.
  7. "top 50 trucking companies". 2007-01-04. Archived from the original on 2010-03-30.
  8. "Arkansas Best Widens 1st quarter loss". 2010-04-26.
  9. "TFI International profile". ft.com. Retrieved 2010-04-26.
  10. "TransCore's freight index continues to rise above 2009". 2010-08-20.
  11. "TFI International makes move into U.S. with bid for Dynamex". 2010-12-15.
  12. "TFI International 2010 Results". 2011-02-25. Archived from the original on 2011-03-03.
  13. "Transforce operations look stable". Montreal Gazette. 2010-02-26.
  14. "headwinds for TFI international". 2008-05-18. Archived from the original on 2012-11-08.
  15. "Transorce Inc. Board of Directors". Retrieved 2011-02-26.
  16. "TFI International Q4 ending December 31, 2012".
  17. "TFI International Fourth Quarter and Annual Results". 2012-02-29.
  18. "renewal annual information form" (PDF). 2007.
  19. "R&G Ellis". 2008-10-23. Archived from the original on 2010-01-24.
  20. "OSC". 2002-10-31.
  21. "trucking mergers and acquisitions in Canada and the US". 2005-06-22.
  22. "TFI International mergers and acquisitions". Retrieved 2010-04-26.
  23. "TFI International gets richer; buys Concord". August 4, 2011.
  24. "COMPETITION WATCH: TFI International acquires I.E. Miller Services". November 11, 2011.
  25. "2018 third quarter" (PDF).
  26. https://www.theglobeandmail.com/business/article-quebec-trucking-company-tfi-buys-us-company-dls-for-us225-million/
  27. Ziobro, Jennifer Smith and Paul (2021-01-25). "UPS to Sell Freight Trucking Business to TFI for $800 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-25.
  28. "TFI International acquires new trucking terminal in Calgary, looks to expand in West". 2010-07-07.
  29. "TFI International Management Discussion and Analysis Third Quarter 2011" (PDF). November 1, 2011.
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