XPO Logistics, Inc. announced its financial results for the fourth quarter 2020. Revenue increased to $4.67 billion, compared with $4.14 billion for the fourth quarter 2019. Net income attributable to common shareholders was $93 million, compared with $96 million for the fourth quarter 2019. Operating income was $228 million, compared with $202 million for the fourth quarter 2019. Diluted earnings per share was $0.91, compared with $0.93 for the fourth quarter 2019.
Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $121 million for the fourth quarter 2020, compared with $115 million for the same period in 2019. Adjusted diluted earnings per share, a non-GAAP financial measure, was $1.19 for the fourth quarter 2020, compared with $1.12 for the same period in 2019.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $449 million for the fourth quarter 2020, compared with $432 million for the same period in 2019.
For the fourth quarter 2020, the company generated $193 million of cash flow from operations and $91 million of free cash flow, a non-GAAP financial measure. For the full year 2020, the company generated cash flow from operations of $885 million and free cash flow of $554 million.
Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
2021 Guidance
The company issued the following full-year 2021 targets:
With respect to 2021 cash flows, the company issued the following targets:
* The company will present adjusted net income and adjusted diluted EPS excluding the amortization of acquisition-related intangible assets, starting with 2021 reporting. In 2021, amortization of acquisition-related intangible assets is estimated to be $145 million.
Adjusted EBITDA of $1.725 billion to $1.8 billion, an increase of 24% to 29% year-over-year;
Depreciation and amortization of $780 million to $800 million;
Interest expense of $275 million to $285 million;
Effective tax rate of 24% to 26%; and
Adjusted diluted EPS of $5.10 to $5.85, excluding amortization of acquisition-related intangible assets.*
Gross capital expenditures of $625 million to $675 million;
Net capital expenditures of $475 million to $525 million; and
Free cash flow of $600 million to $700 million.
The company’s 2021 guidance excludes impacts associated with the planned spin-off of the logistics segment previously announced; and assumes 113 million diluted shares outstanding.
