It is true that the trucking industry overall is currently in a downturn, which was largely expected and priced in. This is an industry-wide issue, not particularly with TFII. Also, this recession would negatively affect trucking companies shipping volume as well as their pricing capability, and could lead to financial hardship for companies with weak balance sheets. However, we think TFII is a well-managed, well capitalized company with strong balance sheet (net debt/EBITDA is around 1.7x), and generating healthy cash flow, we think TFII could get through the other side of this downturn and even take advantage of acquiring competitors at favourable valuations. Also, like what happened with the Yellow Corp. bankruptcy last year, business at remaining companies can actually pick up as capacity is taken out of the industry.
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