Press release

GXO Logistics reports fourth quarter and full year 2021 results

Greenwich, USA  |  February 15, 2022

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Financial Highlights

  • Fourth quarter revenue of $2.3 billion, up 28%; including organic revenue growth1 of 19%; net income attributable to common shareholders of $56 million; and adjusted EBITDA1 of $167 million
  • Full year revenue of $7.9 billion, up 28%; including organic revenue growth1 of 15%; net income attributable to common shareholders of $153 million; and pro forma adjusted EBITDA1 of $633 million
  • Full year cash flow from operating activities of $455 million and free cash flow1 of $216 million; equivalent to over 30% of adjusted EBITDA1
  • Full year 2022 guidance raised

Business Highlights

  • Fourth quarter e-commerce revenue up 45% and reverse logistics revenue up 28%
  • New customer wins in 2021 expected to contribute incremental revenue of approximately $830 million in 2022, representing approximately 10% of 2021 revenue
  • Sales pipeline reaches all-time high of $2.5 billion
  • Revenue retention rate increased to mid-to-high 90s since the spin

GXO Logistics, Inc. (NYSE: GXO) today announced results for the fourth quarter and full year 2021.

Malcolm Wilson, chief executive officer of GXO, said, “Following an immensely successful holiday peak season, GXO reported its highest-ever quarterly revenue and adjusted EBITDA1 for the fourth quarter of 2021. We delivered double-digit organic revenue growth in every quarter of 2021 and grew 19% in the fourth quarter.

More than ever, customers are demanding innovation, and our combination of industry-leading technology, global scale and world-class talent continues to set GXO apart. We’re pioneering automated and ESG-focused solutions that improve safety and lower the carbon footprint of global supply chains, and we look forward to publishing our first sustainability report later this year.

We see significant growth opportunities heading into 2022, as the tailwinds of e-commerce, automation and outsourcing continue unabated. Our new contract wins and sales pipeline are the highest they’ve ever been, which, along with our improved revenue retention rate, position us extremely well to deliver our 8% to 12% organic revenue growth target in 2022. Moreover, we continue to realize benefits from our 2021 acquisition in the U.K. which, in addition to two recent technology customer wins, has already achieved synergies of over $30 million, equivalent to approximately 5% of its sales.

With this clear and consistent momentum, we are raising guidance for the full-year, and we intend to outline our long-term targets to the investment community later this year.”

Fourth Quarter 2021 Results

Revenue increased to $2.3 billion, compared with $1.8 billion for the fourth quarter 2020. Operating income was $63 million, compared with $50 million for the fourth quarter 2020. Net income attributable to common shareholders was $56 million, compared with $28 million for the fourth quarter 2020. Diluted earnings per share was $0.48, compared with $0.24 for the same period in 2020.

Adjusted net income attributable to common shareholders1 was $84 million, compared with $49 million for the fourth quarter 2020. Fourth quarter 2021 adjusted diluted earnings per share1 was $0.73, compared with adjusted diluted earnings per share1 of $0.43 for the fourth quarter 2020.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”)1 increased to $167 million from $146 million of pro forma adjusted EBITDA1 in the fourth quarter 2020. The company reported adjusted EBITDA1 of $138 million for the fourth quarter 2020.

Full Year 2021 Results

Revenue increased to $7.9 billion, compared with $6.2 billion for the same period in 2020. Operating income was $151 million, compared with $16 million for 2020. Net income attributable to common shareholders was $153 million, compared with a $31 million loss in 2020. Diluted earnings per share was $1.32, compared with a loss of $0.27 for 2020.

Adjusted net income attributable to common shareholders1 was $242 million, compared with $63 million for 2020. Adjusted diluted earnings per share1 was $2.09, compared with adjusted diluted earnings per share1 of $0.55 for 2020.

Pro forma adjusted EBITDA1 increased to $633 million for 2021, compared with $457 million of pro forma adjusted EBITDA1 for 2020. The company reported adjusted EBITDA1 of $611 million, compared with $417 million for 2020.

2022 Guidance

GXO announced its full year 2022 financial outlook as follows:

  • Organic revenue growth1 of 8% to 12%;
  • Adjusted EBITDA1of $707 million to $742 million (previously $705 million to $740 million);
  • Adjusted EBITDAR1 of $1.5 billion to $1.6 billion (previously approximately $1.5 billion);
  • Free Cash Flow1 of approximately 30% of adjusted EBITDA1;
  • Depreciation and amortization expense between $260 million and $280 million; and
  • Net capital expenditures of approximately 3% of sales.

Cash Flow and Liquidity Position

For the fourth quarter 2021, the company generated $204 million of cash flow from operations, and $137 million of free cash flow1. For full year 2021, the company generated $455 million of cash flow from operations, and $216 million of free cash flow1. As of December 31, 2021, GXO had approximately $1.1 billion of total liquidity and $961 million of total debt. The company’s net leverage1 was 1.0x, calculated as net debt1 of $628 million, divided by the last twelve months adjusted EBITDA1 of $611 million for the period ended December 31, 2021.

Conference Call

GXO will hold a conference call on Wednesday, February 16, 2022, 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: 13725992. 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 March 2, 2022. 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 13725992.

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 e-commerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for approximately 120,000 team members across more than 900 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 e-commerce 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, Twitter, Facebook, Instagram and YouTube.

Contacts

Investors

Chris Jordan

+1 (203) 536 8493

chris.jordan@gxo.com

Media

Matthew Schmidt

+1 (203) 307 2809

matt.schmidt@gxo.com

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