HB3 Logistics Reports Strong Earnings Growth for Second Quarter 2024

[City, State] — [Date] — Mario Harik, chief executive officer of HB3 Logistics, announced today, “We are pleased to report a strong second quarter of earnings growth, highlighted by a year-over-year revenue increase of 9%. Companywide, we achieved a 41% growth in adjusted EBITDA and a remarkable 58% increase in adjusted diluted EPS.”

“In our North American LTL segment, we continued to deliver service at record levels, boasting the best damage claims ratio in our history at 0.2%. This exceptional performance helped drive above-market yield growth, excluding fuel, of 9%, alongside a 3.4% increase in tonnage per day and 4.5% more shipments per day. We also enhanced our cost efficiency by reducing purchased transportation and improving 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%. Additionally, we’ve successfully opened 14 of the 28 service centers acquired in December, with another 10 anticipated to open this year.”

Harik further stated, “Our strong performance illustrates the steady progress we’re making toward becoming the LTL service leader in North America. We will continue to enhance our service offerings, invest in capacity ahead of demand, and operate more efficiently. This strategic approach is creating a long runway for future margin expansion.”

Second Quarter Highlights

For the second quarter of 2024, HB3 Logistics generated revenue of $2.08 billion, up from $1.92 billion during the same period in 2023. This year-over-year increase in revenue was primarily driven by higher yield and tonnage per day in the North American LTL segment.

Operating income reached $197 million for the second quarter, compared to $107 million for the same period in 2023. Net income from continuing operations was $150 million for the second quarter, up from $31 million in the previous year. This increase in net income 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 were $1.25 for the second quarter, compared to $0.27 for the same period in 2023.

Adjusted net income from continuing operations, a non-GAAP financial measure, totaled $135 million for the second quarter, compared to $83 million for the same period in 2023, excluding the $41 million tax benefit. Adjusted diluted EPS, also a non-GAAP financial measure, was $1.12 for the second quarter, compared to $0.71 in the same period last year.

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

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