GXO Logistics, Inc. (NYSE: GXO) today announced results for
the fourth quarter and full year 2023.
Malcolm Wilson, Chief Executive Officer of GXO, said, “In the
fourth quarter, we delivered a successful operational peak for our
customers, capping off what was a truly great year for GXO.
“In 2023, GXO delivered strong growth in revenue, net income and
adjusted EBITDA, as well as record cash flows from operations and
free cash flow, and a stellar return on invested capital. We closed
a tremendous $1 billion of annualized new business wins, with
nearly 40% coming from outsourcing as more companies look to GXO to
transform their supply chains. Through our acquisition of PFS, we
welcomed over 100 fantastic brands in high-growth verticals, and we
are now focused on supercharging PFS’ growth.
“During the year, GXO continued to lead the industry in
automation, deploying a record amount of robotics and winning
multiple long-term, highly automated contracts with global
blue-chip companies. These companies are looking to GXO for
continued innovation, and we anticipate the proliferation of AI and
automation deployment across our operations to accelerate in 2024
and beyond.
“We’re uniquely positioned to help our customers make their
supply chain operations more productive today and more resilient
tomorrow. Our 2024 guidance reflects another year of solid revenue
growth as well as continued strength in profit and cash flow, and
we are very excited about our long-term growth trajectory.”
Fourth Quarter 2023 Results
Revenue increased to $2.6 billion, compared with $2.5 billion
for the fourth quarter 2022.
Operating income increased to $87 million, compared with $74
million for the fourth quarter 2022. Net income attributable to GXO
increased to $73 million, compared with $46 million for the fourth
quarter 2022. Diluted earnings per share increased to $0.61,
compared with $0.39 for the fourth quarter 2022.
Adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA1”) was $193 million, compared
with $205 million for the fourth quarter 2022. Adjusted net income
attributable to GXO1 was $84 million, compared with $99 million for
the fourth quarter 2022. Adjusted diluted earnings per share1 was
$0.70, compared with $0.83 for the fourth quarter 2022.
GXO generated $215 million of cash flows from operations,
compared with $226 million for the fourth quarter 2022. In the
fourth quarter of 2023, GXO generated $151 million of free cash
flow1, compared with $141 million for the fourth quarter 2022.
Full Year 2023 Results
Revenue increased to $9.8 billion, compared with $9.0 billion
for 2022.
Operating income increased to $318 million, compared with $242
million for 2022. Net income attributable to GXO increased to $229
million, compared with $197 million for 2022. Diluted earnings per
share increased to $1.92, compared with $1.67 for 2022.
Adjusted EBITDA1 increased to $741 million, compared with $728
million for 2022. Adjusted net income attributable to GXO1 was
$309 million, compared with $335 million for 2022. Adjusted
diluted earnings per share1 was $2.59, compared with $2.85 for
2022.
GXO generated $558 million of cash flows from operations,
compared with $542 million for 2022. GXO generated $302 million of
free cash flow1, compared with $240 million for 2022. Cash flows
from operations to net income attributable to GXO and free cash
flow conversion1 ratios were 244% and 41%, respectively, for 2023.
Cash flows from operations to net income attributable to GXO and
free cash flow conversion1 ratios were 275% and 33%, respectively,
for 2022.
Net income attributable to GXO to average invested capital and
operating return on invested capital1 ratios were 22% and 36%,
respectively, for 2023.
Cash Balances and Outstanding Debt
As of December 31, 2023, cash and cash equivalents and debt
outstanding were $468 million and $1.6 billion, respectively.
GXO’s balance sheet remains investment grade and received credit
rating outlook upgrades from S&P, Moody’s and Fitch during
2023.
2024 Guidance2
GXO’s 2024 financial outlook is as follows:
- Organic revenue
growth1 of 2% to 5%;
- Adjusted EBITDA1 of
$760 million to $790 million;
- Adjusted diluted
earnings per share1 of $2.70 to $2.90; and
- Free cash flow
conversion1 of 30% to 40% of adjusted EBITDA1.
Conference Call
GXO will hold a conference call on Wednesday, February 14, 2024,
at 8:30 a.m. Eastern Time. Participants can call toll-free (from
US/Canada) 877-407-8029; international callers dial +1
201-689-8029. Conference ID: 13743710. A live webcast of the
conference will be available on the Investor Relations area of the
company’s website, investors.gxo.com. The conference will be
archived until February 28, 2024. To access the replay by phone,
call toll-free (from US/Canada) 877-660-6853; international callers
dial +1 201-612-7415. Use participant passcode 13743710.
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play
contract logistics provider and is benefiting from the rapid growth
of ecommerce, automation and outsourcing. GXO is committed to
providing a diverse, world-class workplace for more than 130,000
team members across more than 970 facilities totaling
approximately 200 million square feet. The company partners
with the world’s leading blue-chip companies to solve complex
logistics challenges with technologically advanced supply chain and
ecommerce solutions, at scale and with speed. GXO corporate
headquarters is in Greenwich, Connecticut, USA.
Visit GXO.com for more information and connect
with GXO on LinkedIn, X (formerly
Twitter), Facebook, 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 below.
GXO’s non-GAAP financial measures in this press release include:
adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted
earnings before interest, taxes and amortization (“adjusted
EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA
margin, adjusted net income attributable to GXO, adjusted earnings
per share (basic and diluted) (“adjusted EPS”), free cash flow,
free cash flow conversion, organic revenue, organic revenue growth,
net leverage ratio, net debt, and operating return on invested
capital (“ROIC”).
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, GXO’s
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 used by other companies.
GXO’s non-GAAP financial measures should only be used as
supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITA, adjusted net income
attributable to GXO and adjusted EPS include adjustments for
transaction and integration costs, as well as restructuring costs
and other adjustments as set forth in the financial tables below.
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, 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 separating IT systems. Restructuring costs
primarily relate to severance costs associated with business
optimization initiatives.
We believe that free cash flow and free cash flow conversion are
important measures of our ability to repay maturing debt or fund
other uses of capital that we believe will enhance stockholder
value. We calculate free cash flow as cash flows from operations
less capital expenditures plus proceeds from sale of property and
equipment. We calculate free cash flow conversion as free cash flow
divided by adjusted EBITDA, expressed as a percentage.
We believe that adjusted EBITDA, adjusted EBITDA margin,
adjusted EBITA, adjusted EBITA, net of income taxes paid, and
adjusted EBITA 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, which 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 attributable to GXO and
adjusted EPS improve the comparability of our operating results
from period to period by removing the impact of certain costs and
gains, which management has determined are not reflective of our
core operating activities, including amortization of
acquisition-related intangible assets.
We believe that organic revenue and organic revenue growth are
important measures because they exclude the impact of foreign
currency exchange rate fluctuations, revenue from acquired
businesses and revenue from deconsolidated operations.
We believe that net leverage ratio and net debt are important
measures of our overall liquidity position and are calculated by
removing cash and cash equivalents from our total debt and net debt
as a ratio of our adjusted EBITDA. We calculate ROIC as our
adjusted EBITA, net of income taxes paid divided by the average
invested capital. We believe ROIC provides investors with an
important perspective on how effectively GXO deploys capital and
use this metric internally as a high-level target to assess overall
performance throughout the business cycle.
Management uses these non-GAAP financial measures in making
financial, operating and planning decisions and evaluating GXO’s
ongoing performance.
With respect to our financial targets for full-year 2024 organic
revenue growth, adjusted EBITDA, adjusted diluted EPS, and free
cash flow conversion, a reconciliation of these non-GAAP measures
to the corresponding GAAP measures is not available without
unreasonable effort due to the variability and complexity of the
reconciling items described above that we exclude from these
non-GAAP target measures. The variability of these items may have a
significant impact on our future GAAP financial results and, as a
result, we are unable to prepare the forward-looking statements of
income and cash flows prepared in accordance with GAAP, that would
be required to produce such a reconciliation.
Forward-Looking Statements
This press 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, including
our full year 2024 financial targets of organic revenue growth,
adjusted EBITDA, adjusted diluted earnings per share and free cash
flow conversion; the expected incremental revenue in 2024 and 2025
from new customer wins in 2023; the proliferation of AI and
automation deployment across our operations to accelerate in 2024
and beyond; continued strong performance in 2024; and long-term
growth trajectory. 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. However, the absence of
these words does not mean that the statements are not
forward-looking. These forward-looking statements are based on
certain assumptions and analyses made by the company in light of
its experience and its perception of historical trends, current
conditions and expected future developments, as well as other
factors the company believes are appropriate in the
circumstances.
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, but are not limited to, the risks
discussed in our filings with the SEC and the following: economic
conditions generally; supply chain challenges, including labor
shortages; our ability to align our investments in capital assets,
including equipment, and warehouses, to our customers’ demands; our
ability to successfully integrate and realize anticipated
synergies, cost savings and profit improvement opportunities with
respect to acquired companies; unsuccessful acquisitions or other
risks or developments that adversely affect our financial condition
and results; our ability to develop and implement suitable
information technology systems and prevent failures in or breaches
of such systems; our indebtedness; our ability to raise debt and
equity capital; litigation; labor matters, including our ability to
manage our subcontractors, and risks associated with labor disputes
at our customers’ facilities and efforts by labor organizations to
organize our employees; risks associated with defined benefit plans
for our current and former employees; our inability to attract or
retain necessary talent; the increased costs associated with labor;
fluctuations in currency exchange rates; fluctuations in fixed and
floating interest rates; seasonal fluctuations; issues related to
our intellectual property rights; governmental regulation,
including environmental laws, trade compliance laws, as well as
changes in international trade policies and tax regimes;
governmental or political actions, including the United Kingdom’s
exit from the European Union; natural disasters, terrorist attacks
or similar incidents; damage to our reputation; a material
disruption of the company's operations; the inability to achieve
the level of revenue growth, cash generation, cost savings,
improvement in profitability and margins, fiscal discipline, or
strengthening of competitiveness and operations anticipated or
targeted; failure in properly handling the inventory of our
customers; the impact of potential cyber-attacks and information
technology or data security breaches; the inability to implement
technology initiatives successfully; our ability to achieve our
Environmental, Social and Governance goals; and a determination by
the IRS that the distribution or certain related spin-off
transactions should be treated as taxable transactions.
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 to reflect
subsequent events or circumstances, changes in expectations or the
occurrence of unanticipated events, except to the extent required
by law.
Investor Contact
Chris Jordan+1 (203) 536 8493chris.jordan@gxo.com
Media Contact
Matthew Schmidt+1 (203) 307-2809matt.schmidt@gxo.com
GXO Logistics, Inc.Consolidated Statements of
Operations(Unaudited) |
|
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
2,590 |
|
|
$ |
2,467 |
|
|
$ |
9,778 |
|
|
$ |
8,993 |
|
Direct operating expense |
|
|
2,160 |
|
|
|
2,035 |
|
|
|
8,035 |
|
|
|
7,443 |
|
Selling, general and administrative expense |
|
|
237 |
|
|
|
249 |
|
|
|
998 |
|
|
|
886 |
|
Depreciation and amortization expense |
|
|
93 |
|
|
|
87 |
|
|
|
361 |
|
|
|
329 |
|
Transaction and integration costs |
|
|
12 |
|
|
|
4 |
|
|
|
34 |
|
|
|
61 |
|
Restructuring costs and other |
|
|
1 |
|
|
|
18 |
|
|
|
32 |
|
|
|
32 |
|
Operating
income |
|
|
87 |
|
|
|
74 |
|
|
|
318 |
|
|
|
242 |
|
Other income (expense), net |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
1 |
|
|
|
51 |
|
Interest expense, net |
|
|
(12 |
) |
|
|
(10 |
) |
|
|
(53 |
) |
|
|
(29 |
) |
Income before income
taxes |
|
|
68 |
|
|
|
59 |
|
|
|
266 |
|
|
|
264 |
|
Income tax (expense) benefit |
|
|
5 |
|
|
|
(13 |
) |
|
|
(33 |
) |
|
|
(64 |
) |
Net
income |
|
|
73 |
|
|
|
46 |
|
|
|
233 |
|
|
|
200 |
|
Net income attributable to noncontrolling interests |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(3 |
) |
Net income
attributable to GXO |
|
$ |
73 |
|
|
$ |
46 |
|
|
$ |
229 |
|
|
$ |
197 |
|
|
|
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.61 |
|
|
$ |
0.39 |
|
|
$ |
1.93 |
|
|
$ |
1.68 |
|
Diluted |
|
$ |
0.61 |
|
|
$ |
0.39 |
|
|
$ |
1.92 |
|
|
$ |
1.67 |
|
Weighted-average
common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
118,983 |
|
|
|
118,658 |
|
|
|
118,908 |
|
|
|
117,050 |
|
Diluted |
|
|
119,671 |
|
|
|
119,126 |
|
|
|
119,490 |
|
|
|
117,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GXO Logistics, Inc.Consolidated Balance
Sheets(Unaudited) |
|
|
|
December 31, |
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
Current
assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
468 |
|
|
$ |
495 |
|
Accounts receivable, net of allowance of $11 and $12 |
|
|
1,753 |
|
|
|
1,647 |
|
Other current assets |
|
|
347 |
|
|
|
286 |
|
Total current assets |
|
|
2,568 |
|
|
|
2,428 |
|
Long-term
assets |
|
|
|
|
Property and equipment, net of accumulated depreciation of $1,545
and $1,297 |
|
|
953 |
|
|
|
960 |
|
Operating lease assets |
|
|
2,201 |
|
|
|
2,227 |
|
Goodwill |
|
|
2,891 |
|
|
|
2,728 |
|
Intangible assets, net of accumulated amortization of $528 and
$456 |
|
|
567 |
|
|
|
570 |
|
Other long-term assets |
|
|
327 |
|
|
|
306 |
|
Total long-term assets |
|
|
6,939 |
|
|
|
6,791 |
|
Total assets |
|
$ |
9,507 |
|
|
$ |
9,219 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts payable |
|
$ |
709 |
|
|
$ |
717 |
|
Accrued expenses |
|
|
966 |
|
|
|
995 |
|
Current debt |
|
|
27 |
|
|
|
67 |
|
Current operating lease liabilities |
|
|
597 |
|
|
|
560 |
|
Other current liabilities |
|
|
327 |
|
|
|
193 |
|
Total current liabilities |
|
|
2,626 |
|
|
|
2,532 |
|
Long-term
liabilities |
|
|
|
|
Long-term debt |
|
|
1,620 |
|
|
|
1,739 |
|
Long-term operating lease liabilities |
|
|
1,842 |
|
|
|
1,853 |
|
Other long-term liabilities |
|
|
473 |
|
|
|
417 |
|
Total long-term liabilities |
|
|
3,935 |
|
|
|
4,009 |
|
Commitments and
Contingencies |
|
|
|
|
Stockholders’
Equity |
|
|
|
|
Common Stock, $0.01 par value per share; 300,000 shares authorized,
119,057 and 118,728 shares issued and outstanding |
|
|
1 |
|
|
|
1 |
|
Preferred Stock, $0.01 par value per share; 10,000 shares
authorized, none issued and outstanding |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
2,598 |
|
|
|
2,575 |
|
Retained earnings |
|
|
552 |
|
|
|
323 |
|
Accumulated other comprehensive loss |
|
|
(239 |
) |
|
|
(254 |
) |
Total stockholders’ equity before noncontrolling
interests |
|
|
2,912 |
|
|
|
2,645 |
|
Noncontrolling interests |
|
|
34 |
|
|
|
33 |
|
Total equity |
|
|
2,946 |
|
|
|
2,678 |
|
Total liabilities and equity |
|
$ |
9,507 |
|
|
$ |
9,219 |
|
|
GXO Logistics, Inc.Consolidated Statements
of Cash Flows(Unaudited) |
|
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
Net
income |
|
$ |
233 |
|
|
$ |
200 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities |
|
|
|
|
Depreciation and amortization expense |
|
|
361 |
|
|
|
329 |
|
Stock-based compensation expense |
|
|
35 |
|
|
|
33 |
|
Deferred tax benefit |
|
|
(41 |
) |
|
|
(7 |
) |
Other |
|
|
23 |
|
|
|
(17 |
) |
Changes in operating
assets and liabilities |
|
|
|
|
Accounts receivable |
|
|
(17 |
) |
|
|
(71 |
) |
Other assets |
|
|
28 |
|
|
|
24 |
|
Accounts payable |
|
|
(3 |
) |
|
|
45 |
|
Accrued expenses and other liabilities |
|
|
(61 |
) |
|
|
6 |
|
Net cash provided by
operating activities |
|
|
558 |
|
|
|
542 |
|
Cash flows from
investing activities: |
|
|
|
|
Capital expenditures |
|
|
(274 |
) |
|
|
(342 |
) |
Proceeds from sale of property and equipment |
|
|
18 |
|
|
|
40 |
|
Acquisition of business, net of cash acquired |
|
|
(149 |
) |
|
|
(876 |
) |
Cross-currency swap agreements settlement |
|
|
(3 |
) |
|
|
21 |
|
Other |
|
|
(2 |
) |
|
|
8 |
|
Net cash used in
investing activities |
|
|
(410 |
) |
|
|
(1,149 |
) |
Cash flows from
financing activities: |
|
|
|
|
Proceeds from debt, net |
|
|
— |
|
|
|
917 |
|
Repayments of debt, net |
|
|
(140 |
) |
|
|
(82 |
) |
Repayment of finance lease obligations |
|
|
(29 |
) |
|
|
(33 |
) |
Taxes paid related to net share settlement of equity awards |
|
|
(12 |
) |
|
|
(16 |
) |
Other |
|
|
(5 |
) |
|
|
1 |
|
Net cash (used in)
provided by financing activities |
|
|
(186 |
) |
|
|
787 |
|
Effect of exchange rates on
cash and cash equivalents |
|
|
13 |
|
|
|
(18 |
) |
Net (decrease)
increase in cash, restricted cash and cash
equivalents |
|
|
(25 |
) |
|
|
162 |
|
Cash, restricted cash
and cash equivalents, beginning of year |
|
|
495 |
|
|
|
333 |
|
Cash, restricted cash
and cash equivalents, end of year |
|
$ |
470 |
|
|
$ |
495 |
|
|
|
|
|
|
Reconciliation of
cash, restricted cash and cash equivalents |
|
|
|
|
Cash and cash equivalents |
|
$ |
468 |
|
|
$ |
495 |
|
Restricted cash (included in Other long-term assets) |
|
|
2 |
|
|
|
— |
|
Total cash, restricted
cash and cash equivalents |
|
$ |
470 |
|
|
$ |
495 |
|
|
GXO Logistics, Inc.Consolidated Statements of Cash
Flows |
|
|
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
2022 |
Supplemental cash flow information: |
|
|
|
|
Cash paid for interest, net |
|
$ |
57 |
|
$ |
34 |
Cash paid for income taxes, net |
|
|
84 |
|
|
111 |
Noncash investing and
financing activities: |
|
|
|
|
Common stock issued for acquisition |
|
$ |
— |
|
$ |
204 |
|
|
|
|
|
|
|
GXO Logistics, Inc.Key
DataDisaggregation of
Revenue(Unaudited) |
|
Revenue disaggregated by geographical area was as follows:
|
|
Three MonthsEnded December 31, |
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
United Kingdom |
|
$ |
969 |
|
$ |
922 |
|
$ |
3,664 |
|
$ |
3,293 |
United States |
|
|
792 |
|
|
786 |
|
|
2,909 |
|
|
2,861 |
Netherlands |
|
|
221 |
|
|
191 |
|
|
831 |
|
|
699 |
France |
|
|
204 |
|
|
199 |
|
|
830 |
|
|
729 |
Spain |
|
|
133 |
|
|
128 |
|
|
529 |
|
|
488 |
Italy |
|
|
103 |
|
|
88 |
|
|
382 |
|
|
331 |
Other |
|
|
168 |
|
|
153 |
|
|
633 |
|
|
592 |
Total |
|
$ |
2,590 |
|
$ |
2,467 |
|
$ |
9,778 |
|
$ |
8,993 |
|
The Company’s revenue can also be disaggregated by the
customer’s primary industry. Revenue disaggregated by industries
was as follows:
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Omnichannel retail |
|
$ |
1,092 |
|
$ |
1,031 |
|
$ |
4,100 |
|
$ |
3,649 |
Technology and consumer
electronics |
|
|
382 |
|
|
374 |
|
|
1,467 |
|
|
1,337 |
Food and beverage |
|
|
327 |
|
|
318 |
|
|
1,331 |
|
|
1,327 |
Industrial and
manufacturing |
|
|
266 |
|
|
269 |
|
|
1,078 |
|
|
1,076 |
Consumer packaged goods |
|
|
325 |
|
|
252 |
|
|
1,027 |
|
|
915 |
Other |
|
|
198 |
|
|
223 |
|
|
775 |
|
|
689 |
Total |
|
$ |
2,590 |
|
$ |
2,467 |
|
$ |
9,778 |
|
$ |
8,993 |
|
GXO Logistics, Inc.Reconciliation of Net
Income to Adjusted EBITDA and Adjusted EBITAand
Adjusted EBITDA and Adjusted EBITA
Margins(Unaudited) |
|
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income attributable to GXO |
|
$ |
73 |
|
|
$ |
46 |
|
|
$ |
229 |
|
|
$ |
197 |
|
Net income attributable to
noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
3 |
|
Net
income |
|
$ |
73 |
|
|
$ |
46 |
|
|
$ |
233 |
|
|
$ |
200 |
|
Interest expense, net |
|
|
12 |
|
|
|
10 |
|
|
|
53 |
|
|
|
29 |
|
Income tax expense
(benefit) |
|
|
(5 |
) |
|
|
13 |
|
|
|
33 |
|
|
|
64 |
|
Depreciation and amortization
expense |
|
|
93 |
|
|
|
87 |
|
|
|
361 |
|
|
|
329 |
|
Transaction and integration
costs |
|
|
12 |
|
|
|
4 |
|
|
|
34 |
|
|
|
61 |
|
Restructuring costs and
other |
|
|
1 |
|
|
|
18 |
|
|
|
32 |
|
|
|
32 |
|
Unrealized (gain) loss on
foreign currency options and other |
|
|
7 |
|
|
|
27 |
|
|
|
(5 |
) |
|
|
13 |
|
Adjusted
EBITDA(1) |
|
$ |
193 |
|
|
$ |
205 |
|
|
$ |
741 |
|
|
$ |
728 |
|
|
|
|
|
|
|
|
|
|
Less: Depreciation |
|
|
76 |
|
|
|
67 |
|
|
|
290 |
|
|
|
261 |
|
Adjusted
EBITA(1) |
|
$ |
117 |
|
|
$ |
138 |
|
|
$ |
451 |
|
|
$ |
467 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,590 |
|
|
$ |
2,467 |
|
|
$ |
9,778 |
|
|
$ |
8,993 |
|
Adjusted EBITDA
margin(1)(2) |
|
|
7.5 |
% |
|
|
8.3 |
% |
|
|
7.6 |
% |
|
|
8.1 |
% |
Adjusted EBITA
margin(1)(3) |
|
|
4.5 |
% |
|
|
5.6 |
% |
|
|
4.6 |
% |
|
|
5.2 |
% |
(1) See the “Non-GAAP Financial Measures” section of this press
release.(2) Adjusted EBITDA margin is calculated as adjusted EBITDA
divided by revenue.(3) Adjusted EBITA margin is calculated as
adjusted EBITA divided by revenue.
GXO Logistics, Inc.Reconciliation of Net Income to Adjusted
Net Incomeand Adjusted Earnings Per Share(Unaudited) |
|
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income attributable to GXO |
|
$ |
73 |
|
|
$ |
46 |
|
|
$ |
229 |
|
|
$ |
197 |
|
Amortization expense |
|
|
17 |
|
|
|
20 |
|
|
|
71 |
|
|
|
68 |
|
Transaction and integration
costs |
|
|
12 |
|
|
|
4 |
|
|
|
34 |
|
|
|
61 |
|
Restructuring costs and
other |
|
|
1 |
|
|
|
18 |
|
|
|
32 |
|
|
|
32 |
|
Unrealized (gain) loss on
foreign currency options and other |
|
|
7 |
|
|
|
27 |
|
|
|
(5 |
) |
|
|
13 |
|
Income tax associated with the
adjustments above(1) |
|
|
(9 |
) |
|
|
(16 |
) |
|
|
(30 |
) |
|
|
(36 |
) |
Discrete tax benefit(2) |
|
|
(17 |
) |
|
|
— |
|
|
|
(22 |
) |
|
|
— |
|
Adjusted net income
attributable to GXO(3) |
|
$ |
84 |
|
|
$ |
99 |
|
|
$ |
309 |
|
|
$ |
335 |
|
|
|
|
|
|
|
|
|
|
Adjusted basic
earnings per share(3) |
|
$ |
0.71 |
|
|
$ |
0.83 |
|
|
$ |
2.60 |
|
|
$ |
2.86 |
|
Adjusted diluted
earnings per share(3) |
|
$ |
0.70 |
|
|
$ |
0.83 |
|
|
$ |
2.59 |
|
|
$ |
2.85 |
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
118,983 |
|
|
|
118,658 |
|
|
|
118,908 |
|
|
|
117,050 |
|
Diluted |
|
|
119,671 |
|
|
|
119,126 |
|
|
|
119,490 |
|
|
|
117,616 |
|
(1) The income tax rate applied to items is based on the GAAP
annual effective tax rate.(2) Discrete tax benefit from intangible
assets and the release of valuation allowances.(3) See the
“Non-GAAP Financial Measures” section of this press release.
GXO Logistics, Inc.Other
Reconciliations(Unaudited) |
|
Reconciliation of Cash Flows from Operations to Free Cash
Flow:
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operations |
|
$ |
215 |
|
|
$ |
226 |
|
|
$ |
558 |
|
|
$ |
542 |
|
Capital expenditures |
|
|
(69 |
) |
|
|
(103 |
) |
|
|
(274 |
) |
|
|
(342 |
) |
Proceeds from sales of
property and equipment |
|
|
5 |
|
|
|
18 |
|
|
|
18 |
|
|
|
40 |
|
Free cash
flow(1) |
|
$ |
151 |
|
|
$ |
141 |
|
|
$ |
302 |
|
|
$ |
240 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
operations to net income attributable to GXO |
|
|
|
|
|
|
243.7 |
% |
|
|
275.1 |
% |
Free cash flow
conversion(1) |
|
|
|
|
|
|
40.8 |
% |
|
|
33.0 |
% |
(1) See the “Non-GAAP Financial Measures” section of this press
release. The Company calculates free cash flow conversion as free
cash flow divided by adjusted EBITDA, expressed as a
percentage.
Reconciliation of Revenue to Organic Revenue:
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
(In millions) |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
2,590 |
|
|
$ |
2,467 |
|
$ |
9,778 |
|
|
$ |
8,993 |
|
Revenue from acquired
business(1) |
|
|
(82 |
) |
|
|
— |
|
|
(460 |
) |
|
|
— |
|
Revenue from
deconsolidation |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(20 |
) |
Foreign exchange rates |
|
|
(97 |
) |
|
|
— |
|
|
(140 |
) |
|
|
— |
|
Organic
revenue(2) |
|
$ |
2,411 |
|
|
$ |
2,467 |
|
$ |
9,178 |
|
|
$ |
8,973 |
|
|
|
|
|
|
|
|
|
|
Revenue
growth(3) |
|
|
5.0 |
% |
|
|
|
|
8.7 |
% |
|
|
Organic revenue
growth(2)(4) |
|
(2.3)% |
|
|
|
|
2.3 |
% |
|
|
(1) The Company excludes revenue from the acquired business in
the current period for which there are no comparable revenues in
the prior period.(2) See the “Non-GAAP Financial Measures” section
of this press release.(3) Revenue growth is calculated as the
change in the period-over-period revenue divided by the prior
period, expressed as a percentage.(4) Organic revenue growth is
calculated as the change in the period-over-period organic revenue
divided by the prior period, expressed as a percentage.
GXO Logistics, Inc.Liquidity
Reconciliations(Unaudited) |
|
Reconciliation of Total Debt and Net Debt:
(In
millions) |
|
December 31, 2023 |
Current debt |
|
$ |
27 |
|
Long-term debt |
|
|
1,620 |
|
Total
debt |
|
$ |
1,647 |
|
Less: Cash and cash
equivalents |
|
|
(468 |
) |
Net
debt(1) |
|
$ |
1,179 |
|
(1) See the “Non-GAAP Financial Measures” section of this press
release.
Reconciliation of Total debt to Net income attributable to GXO
Ratio:
(In
millions) |
|
December 31, 2023 |
Total debt |
|
$ |
1,647 |
Net income attributable to
GXO |
|
$ |
229 |
Debt to net income
attributable to GXO ratio |
|
7.2x |
|
Reconciliation of Net Leverage Ratio:
(In
millions) |
|
December 31, 2023 |
Net debt |
|
$ |
1,179 |
Adjusted EBITDA(1) |
|
$ |
741 |
Net leverage
ratio(1) |
|
1.6x |
(1) See the “Non-GAAP Financial Measures” section of this press
release.
GXO Logistics, Inc.Liquidity
Reconciliations(Unaudited) |
|
Reconciliation of Total Debt and Net Debt:
(In
millions) |
|
December 31, 2022 |
Current debt |
|
$ |
67 |
|
Long-term debt |
|
|
1,739 |
|
Total
debt |
|
$ |
1,806 |
|
Less: Cash and cash
equivalents |
|
|
(495 |
) |
Net
debt(1) |
|
$ |
1,311 |
|
(1) See the “Non-GAAP Financial Measures” section of this press
release.
Reconciliation of Total debt to Net income attributable to GXO
Ratio:
(In
millions) |
|
December 31, 2022 |
Total debt |
|
$ |
1,806 |
Net income attributable to
GXO |
|
$ |
197 |
Debt to net income
attributable to GXO ratio |
|
9.2x |
Reconciliation of Net Leverage Ratio:
(In
millions) |
|
December 31, 2022 |
Net debt |
|
$ |
1,311 |
Adjusted EBITDA(1) |
|
$ |
728 |
Net leverage
ratio(1) |
|
1.8x |
(1) See the “Non-GAAP Financial Measures” section of this press
release.
GXO Logistics, Inc.Return on Invested
Capital(Unaudited) |
|
Adjusted EBITA, net of income taxes paid:
|
|
Year Ended |
(In
millions) |
|
December 31, 2023 |
Adjusted EBITA(1) |
|
$ |
451 |
|
Less: Cash paid for income
taxes |
|
|
(84 |
) |
Adjusted
EBITA(1), net of income taxes
paid |
|
$ |
367 |
|
(1) See the “Non-GAAP Financial Measures” section of this press
release.
Return on Invested Capital:
|
|
Year Ended December 31, |
|
|
(In
millions) |
|
|
2023 |
|
|
|
2022 |
|
|
Average |
Selected Assets: |
|
|
|
|
|
|
Accounts receivable, net |
|
$ |
1,753 |
|
|
$ |
1,647 |
|
|
$ |
1,700 |
|
Other current assets |
|
|
347 |
|
|
|
286 |
|
|
|
317 |
|
Property and equipment, net |
|
|
953 |
|
|
|
960 |
|
|
|
957 |
|
Selected
Liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
(709 |
) |
|
$ |
(717 |
) |
|
$ |
(713 |
) |
Accrued expenses |
|
|
(966 |
) |
|
|
(995 |
) |
|
|
(981 |
) |
Other current liabilities |
|
|
(327 |
) |
|
|
(193 |
) |
|
|
(260 |
) |
Invested
capital |
|
$ |
1,051 |
|
|
$ |
988 |
|
|
$ |
1,020 |
|
|
|
|
|
|
|
|
Net income
attributable to GXO to average invested capital |
|
|
|
|
|
|
22.5 |
% |
Operating return on
invested capital(1)(2) |
|
|
|
|
|
|
36.0 |
% |
(1) The ratio of operating return on invested capital is
calculated as adjusted EBITA, net of income taxes paid, divided by
the average invested capital.(2) See the “Non-GAAP Financial
Measures” section of this press release.
_________________________1 For definitions of non-GAAP measures
see the “Non-GAAP Financial Measures” section in this press
release.2 Our guidance reflects current FX rates.
GXO Logistics (NYSE:GXO)
Gráfica de Acción Histórica
De Ene 2025 a Feb 2025
GXO Logistics (NYSE:GXO)
Gráfica de Acción Histórica
De Feb 2024 a Feb 2025