Andlauer Healthcare Group (AND) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 2.0% YoY to $169.1M; EBITDA was $44.8M and net income was $18.6M, or $0.44 diluted EPS.

• FY2023 revenue was nearly flat at $648.0M; EBITDA fell 6.1% to $163.8M and net income declined to $66.1M, or $1.55 diluted EPS.

• Canadian specialized transportation growth supported results, offset by lower U.S. truckload rates and margins, reduced COVID-19-related revenue, and weaker packaging revenue.

Financial highlights

• Q4 operating income was $28.0M versus $28.2M YoY; FY operating income was $96.1M versus $110.3M, down 13.0%.

• Q4 net income was $18.6M versus $19.8M; FY net income was $66.1M versus $76.3M.

• FY2023 comprehensive income was $60.7M versus $91.0M, including a $5.4M negative foreign-currency translation adjustment versus a $14.7M positive adjustment in FY2022.

• FY organic growth in the Canadian specialized transportation network added approximately $14.0M of revenue, offset by lower fuel surcharges, U.S. truckload rates, packaging revenue, and COVID-19-related sales.

Outlook and guidance

• Management expects quarterly dividends of $0.10 per subordinate and multiple voting share, subject to results, capital needs, cash flow, legal requirements, and Board discretion.

• Management said the U.S. truckload market appeared stabilized and emphasized opportunities to extend the platform and strengthen the customer value proposition.