XPO Logistics, Inc. (NYSE:XPO) Q3 2017 Earnings Conference Call - Final Transcript
Nov 02, 2017 • 08:30 am ET
Welcome to the XPO Logistics Third Quarter 2017 Earnings Conference Call and Webcast. My name is Melissa, and I'll be your operator for today's call.
Before the call begins, let me read a brief statement on behalf of the Company regarding forward-looking statements and the use of non-GAAP financial measures. During this call, the Company will be making certain forward-looking statements within the meaning of applicable securities laws, which by their nature involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the forward-looking statements.
A discussion of factors that could cause actual results to differ materially is contained in the Company's SEC filings. The forward-looking statements in the Company's earnings release or made on this call are made only as of today and the Company has no obligation to update any of these forward-looking statements except to the extent required by law.
During this call, the Company may also refer to certain non-GAAP financial measures as defined under applicable SEC rules. Reconciliations of such non-GAAP financial measures to the most comparable GAAP measures are contained in the Company's earnings release and the related financial tables or in the Investors section on the Company's website at www.xpo.com.
You can find a copy of the Company's earnings release, which contains additional important information regarding forward-looking statements and non-GAAP financial measures in the Investors section on the Company's website.
I will now turn the call over to Brad Jacobs. Mr. Jacobs, you may begin.
Bradley S. Jacobs
Thank you, operator and good morning, everybody. Thanks for joining our earnings call.
With me in Greenwich are John Hardig, our CFO; Scott Malat, our Chief Strategy Officer; and Tavio Headley, our Head of HR -- IR.
In the third quarter, we generated the highest revenue, the highest net income and the highest cash flow of any quarter in our history. In addition, we beat expectations for adjusted EBITDA at $370 million, cash from operations at $294 million and free cash flow at $183 million. For the first nine months, we closed business of $2.1 billion, a year-over-year growth rate of 49%, and we're growing sales at a record rate while maintaining a global pipeline of over $3 billion.
E-commerce deliveries propelled strong growth in last mile of 14% and revenue growth in our Logistics segment of over 8%. We grew our North American truck brokerage and intermodal revenues combined by more than 15% under favorable market trend. We also had some stars that didn't align in the quarter. They were the hurricanes and the typical puts and takes across sectors like a soft expedite market in automotive and a short-term drag from investments in growth.
We have significant opportunities in hand to fuel new growth, particularly with sales and technology. We're implementing initiatives across the company for pricing, utilization, sales and workforce productivity, data analytics and warehouse automation. We're continuing to pursue M&A opportunities to augment our momentum, while staying focused on a substantial growth