XPO Logistics, Inc. (NYSE:XPO) Q4 2017 Earnings Conference Call - Final Transcript
Feb 08, 2018 • 08:30 am ET
Welcome to the XPO Logistics Fourth Quarter 2017 Earnings Conference Call and Webcast. My name is Rob and I will be your operator for today's call. [Operator Instructions] Later we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.
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 make 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 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 Investor 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 Investor section on the company's website.
I will now turn the call over to Brad Jacobs. Mr. Jacobs, you may begin.
Thank you, operator, and good morning, everybody. Thanks for joining our earnings call. With me in Greenwich is John Hardy, our CFO; Scott Malat, our Chief Strategy Officer; and Tavio Headley, our Head of Investor Relations. As you saw from the press release, we had a very strong finish to 2017 . We posted record fourth quarter results across the board with bps on revenue, EPS, adjusted EBITDA and free cash flow.
Adjusted EBITDA for the quarter was $337 million, that brought us to $1.37 billion for the year, which was just above target. We generated $374 million of cash flow in 2017 compared to our target of at least $350 million. Because of our momentum and the benefit of tax reform, we raised our two year cumulative free cash flow target for 2017 and 2018 from $900 million to approximately $1 billion. We delivered robust organic growth in the quarter at 10.4%. In our transportation segment, we increased freight brokerage revenue by 33% and in North America, we grew our last mile revenue by 21%.
In Europe, we continue to grow our Contract Logistics business above plan and we saw an acceleration in demand for our transportation services. In 2017, company-wide, we signed $2.8 billion of new business, that's a year-over-year increase of 55%. Our global sales pipeline stands at a healthy $3.2 billion and our ongoing investments in