NASDAQ$TFIN

Triumph Financial Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in net income due to seasonality, credit costs, and planned investments, while TriumphPay continued to grow and gain market share.

Triumph Financial reported net income of $3.4 million, or $0.14 per diluted share, for the first quarter of 2024. The results were impacted by a freight recession, credit costs, and planned investments in initiatives like LoadPay. TriumphPay's proportion of all brokered freight reached approximately 44%.

  • Freight market softness continued, impacting factoring volumes and net interest income.
  • Credit costs were a drag on earnings, primarily due to equipment finance and construction lending growth.
  • Planned investments in initiatives like LoadPay increased noninterest expense.
  • TriumphPay's run-rate proportion of all brokered freight is approximately 44%, with progress towards 50% by the end of 2024.

Headline financials

Total Revenue

$101M

Previous: $104M-3.2%
EPS

$0.14

Previous: $0.43-67.4%
Capital Expenditures

-$55.6M

No prior period
Free Cash Flow

$4.16M

Previous: $11M-62.2%
Net Income

$4.16M

Previous: $11M-62.2%
Operating Income

$59.3M

Previous: $71.7M-17.3%
Gross Profit

$101M

Previous: $104M-3.2%
Stock-Based Comp

$3.63M

Previous: $2.88M+25.9%

Revenue & EPS history

Triumph Financial · Revenue · Quarterly

$101M

Q1 2024-3.2%vs Q1 2023
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Triumph Financial · $39.2M total across 2 segments · Q3 2023

  • Factoring
    $34.2M-34.8%
  • Payments
    $4.92M-32.4%

Forward guidance

The first quarter was a disappointment for earnings, but a positive development in advancing our long-term vision. Unless seasonal patterns soon lead to increased activity and pricing, I do not see the seasonal benefit returning for the second quarter.

Tailwinds

  • TriumphPay added several brokers, including two midsized freight brokers and a large factor.
  • TriumphPay's pipeline remains full.
  • Excited about the long-term momentum being created.
  • TriumphPay marches on towards its next milestone of touching 50% of all brokered freight.
  • The silver lining is that this freight recession has opened doors for us that were not open in prior years.

Headwinds

  • Freight continues to be softer than most people predicted.
  • Credit noise is a steady hum in the background.
  • Earnings headwinds are real.
  • Seasonality is back in a way we have not seen since before the pandemic.
  • TriumphPay swung to a loss this quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+3.7%

Avg return

30 days after

48%

26 / 54 earnings

Positive

+12.5%

Q2 2020

Best reaction

-13.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.9%-0.6%
Q4 2025-7.2%-10.6%-16.3%
Q3 2025+7.3%+25.4%+9.4%
Q2 2025-2.6%-2.0%+7.0%
Q1 2025-2.4%-3.0%+22.8%
Q4 2024-13.9%-14.5%-26.6%
Q3 2024+7.9%+9.0%+21.6%
Q2 2024-12.6%-7.7%-10.3%
Q1 2024-9.6%-7.9%+1.7%
Q4 2023-5.2%-6.5%-2.6%
Q3 2023+1.3%+1.0%+17.6%
Q2 2023+0.3%+0.7%-5.2%
Q1 2023-3.3%-0.9%+0.8%
Q4 2022-2.2%+2.9%+15.0%
Q3 2022-10.1%-17.2%+4.7%
Q2 2022+6.9%+4.5%+8.1%
Q1 2022-6.4%-8.1%-19.6%
Q4 2021-12.4%-18.8%-13.9%
Q3 2021+0.0%+6.3%+18.9%
Q2 2021+2.3%+2.9%+10.2%
Q1 2021-0.4%+0.5%-8.6%
Q4 2020+4.2%+10.1%+28.5%
Q3 2020+3.9%+8.1%+11.2%
Q2 2020+12.5%+10.2%+18.4%
Q1 2020-4.3%-8.3%-7.7%
Q4 2019+6.0%+5.2%+10.3%
Q3 2019+1.1%+5.8%+5.5%
Q2 2019+7.8%+9.2%+7.0%
Q1 2019-4.6%-7.3%-2.6%
Q4 2018-9.1%-4.2%+3.0%
Q3 2018-2.0%-7.2%+0.2%
Q2 2018-1.6%-1.4%+2.7%
Q1 2018+2.0%+0.5%+3.8%
Q4 2017+7.2%+6.9%+15.6%
Q3 2017-0.6%+1.3%-5.1%
Q2 2017+7.8%+14.1%+8.7%
Q1 2017-3.7%-9.8%-12.9%
Q4 2016+3.6%+5.9%+5.6%
Q3 2016-4.1%-5.8%+11.4%
Q2 2016+4.1%+2.2%+9.7%
Q1 2016+0.2%
Q4 2015-0.2%
Q4 2012-0.2%
Q3 2015-1.0%
Q2 2015+3.1%
Q1 2014+0.2%
Q1 2015+2.7%
Q2 2014-0.2%
Q4 2013-0.2%
Q1 2013-0.2%
Q4 2014-2.5%
Q2 2013+1.0%
Q3 2013+1.0%
Q3 2014+1.0%

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