XPO, Inc. Files 10-Q for Q2 2024

Ticker: XPO · Form: 10-Q · Filed: 2024-08-01T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, financials, transportation

TL;DR

XPO 10-Q filed for Q2 2024. Financials look solid.

AI Summary

XPO, Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The filing covers the second quarter of 2024, detailing revenues, expenses, and net income. Key financial data and operational highlights for the transportation services company are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at XPO's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on August 1, 2024.

What is the former name of XPO, Inc. mentioned in the filing?

One of the former names of XPO, Inc. mentioned is XPO Logistics, Inc.

What is XPO, Inc.'s Standard Industrial Classification (SIC) code?

XPO, Inc.'s SIC code is 4700, categorized under Transportation Services.

What is the fiscal year end for XPO, Inc.?

The fiscal year end for XPO, Inc. is December 31.

Filing Stats: 4,799 words · 19 min read · ~16 pages · Grade level 16.6 · Accepted 2024-08-01 16:06:48

Key Financial Figures

Filing Documents

—Financial Information

Part I—Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Income 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Cash Flows 4 Condensed Consolidated Statements of Changes in Equity 5 Notes to Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

—Other Information

Part II—Other Information

Legal Proceedings

Item 1. Legal Proceedings 26

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 27

Signatures

Signatures 28 Table of Contents

—Financial Information

Part I—Financial Information

Financial Statements

Item 1. Financial Statements. XPO, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (In millions, except per share data) 2024 2023 ASSETS Current assets Cash and cash equivalents $ 250 $ 412 Accounts receivable, net of allowances of $ 45 and $ 45 , respectively 1,088 973 Other current assets 210 208 Total current assets 1,548 1,593 Long-term assets Property and equipment, net of $ 1,954 and $ 1,853 in accumulated depreciation, respectively 3,305 3,075 Operating lease assets 742 708 Goodwill 1,481 1,498 Identifiable intangible assets, net of $ 476 and $ 452 in accumulated amortization, respectively 392 422 Other long-term assets 262 196 Total long-term assets 6,182 5,899 Total assets $ 7,729 $ 7,492 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 477 $ 532 Accrued expenses 772 775 Short-term borrowings and current maturities of long-term debt 64 69 Short-term operating lease liabilities 129 121 Other current liabilities 99 93 Total current liabilities 1,542 1,590 Long-term liabilities Long-term debt 3,330 3,335 Deferred tax liability 364 337 Employee benefit obligations 88 91 Long-term operating lease liabilities 613 588 Other long-term liabilities 294 285 Total long-term liabilities 4,688 4,636 Stockholders' equity Common stock, $ 0.001 par value; 300 shares authorized; 116 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively — — Additional paid-in capital 1,322 1,298 Retained earnings 402 185 Accumulated other comprehensive loss ( 225 ) ( 217 ) Total equity 1,499 1,266 Total liabilities and equity $ 7,729 $ 7,492 Amounts may not add due to rounding. See accompanying notes to condensed consolidated financial statements. 1 Table of Contents XPO, Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2024 2023 2024 202

Selected financial data for our segments is as follows

Selected financial data for our segments is as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2024 2023 2024 2023 Revenue North American LTL $ 1,272 $ 1,136 $ 2,493 $ 2,256 European Transportation 808 781 1,605 1,568 Total $ 2,079 $ 1,917 $ 4,097 $ 3,824 Adjusted EBITDA North American LTL $ 297 $ 208 $ 551 $ 390 European Transportation 49 46 87 83 Corporate ( 3 ) ( 10 ) ( 8 ) ( 19 ) Total Adjusted EBITDA 343 244 631 454 Less: Debt extinguishment loss — 23 — 23 Interest expense 56 43 114 85 Income tax provision (benefit) ( 3 ) 13 20 17 Depreciation and amortization expense 122 107 239 208 Transaction and integration costs (1) 12 17 26 39 Restructuring costs (2) 6 10 14 34 Income from continuing operations $ 150 $ 31 $ 217 $ 48 Depreciation and amortization expense North American LTL $ 86 71 $ 168 $ 139 European Transportation 35 33 70 65 Corporate 1 3 2 4 Total $ 122 $ 107 $ 239 $ 208 (1) Transaction and integration costs for the periods ended June 30, 2024 and June 30, 2023 are primarily comprised of stock-based compensation for certain employees related to strategic initiatives, while the 2023 periods also include retention awards for certain employees related to strategic initiatives. Transaction and integration costs for the three months ended June 30, 2024 and 2023 include $ 1 million and $ 0 million , respectively, related to our European Transportation segment, and $ 11 million and $ 17 million, respectively, related to Corporate. Transaction and integration costs for the six months ended June 30, 2024 and 2023 include $ 1 million and $ 0 million , respectively, related to our North American LTL segment, $ 1 million and $ 1 million, respectively, related to our European Transportation segment, and $ 24 million and $ 38 million, respectively, related to Corporate. (2) Restructuring costs for the three months ended June 30, 2024 and 2023 include $ 1 million and $ 4 million, respectively, related to

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