Titanium Transportation Group Inc. ("Titanium" or the "Company")
(
TSX:TTNM, OTCQX:TTNMF), a leading provider of
transportation and logistics services throughout North America, is
pleased to report its financial results for the three-month period
ended March 31, 2023. All amounts are in Canadian currency.
Q1 2023 Financial Highlights compared with Q1
2022:
- Consolidated revenue
of $106 million, compared to $136 million in Q1 2022
- Consolidated EBITDA
of $12.6 million, compared to $13.9 million in Q1 2022
- Consolidated EBITDA
Margin1 of 13.8%, an increase of 230 basis points from Q1 2022
- Fully diluted net
income per share of $0.08, compared to Fully diluted net income per
share of $0.13 in Q1 2023.
- Expanded its U.S.
based freight-brokerage operations with the opening of its sixth
U.S. office in Fayetteville, Arkansas.
Ted Daniel, Chief Executive Officer,
Titanium Transportation Group commented, “Despite
softening market conditions, Titanium delivered yet another
profitable quarter, generating $15.3 million in cash flow from
operating activities and $3.6 million in net income in the first
quarter of 2023. We are confident in our ability to maintain
profitability while navigating through economic challenges, thanks
to our superior customer and supplier solutions, internally
developed Titanium Fusion portal, and experienced freight
transportation team.”
“In the Truck Transportation segment, we
leveraged our technology-driven business intelligence to optimize
our pricing strategy, leading to a year-over-year increase in
segment revenue, and 690 basis points of EBITDA margin improvement.
While our asset-based segment remained resilient despite economic
conditions, our logistics segment faced significant pricing
pressure and moderate demand normalization but remained strong. Our
first quarter results are a testament to Titanium’s ability to
leverage its assets, people and technology to drive operational
efficiencies throughout its business,” continued Mr.
Daniel.
Summary of Q1 2023 Financial
Results (in thousands $CAD)
|
Q1 2023 |
Q1 2022 |
% Change |
Consolidated Results |
|
|
|
Revenue |
106,322 |
135,987 |
(21.8)% |
EBITDA1 |
12,576 |
13,917 |
(9.6)% |
EBITDA margin1 |
13.80% |
11.50% |
|
Net Income |
3,588 |
5,969 |
(39.9)% |
Net Income per share |
0.08 |
0.14 |
|
|
|
|
|
Truck Transportation |
|
|
|
Revenue |
51,562 |
49,340 |
4.5% |
EBITDA1 |
8,682 |
5,697 |
52.4% |
EBITDA margin1 |
20.30% |
13.40% |
|
|
|
|
|
Logistics |
|
|
|
Revenue |
56,249 |
87,917 |
(36.0)% |
EBITDA1 |
4,604 |
9,154 |
(49.7)% |
EBITDA margin1 |
9.30% |
11.50% |
|
2023
Outlook
“For the remainder of 2023, it is likely that
the North American economy will continue to face headwinds due to
various geopolitical and economic factors such as interest rates,
high levels of inflation and supply chain challenges. Despite these
challenges, Titanium is well-positioned to navigate our core
business through these headwinds and capitalize on potential
accretive opportunities as they arise. With our investment in
proprietary technology and people, we remain cautiously optimistic
and focused on generating value for our shareholders during these
difficult times. While we do not anticipate significant growth in
2023, we remain focused on our operations and committed to
providing sustainable, long-term growth to our shareholders through
prudent investments,” added Mr. Daniel.
2023 Guidance
Titanium’s guidance for 2023, assumes no change
in the current economic environment and excludes the impact of any
acquisitions.
-
Revenue $500 million - $520 million
-
Adjusted EBITDA Margin 9.5% - 11.5%
Conference Call
The Company will also hold a conference call on
Tuesday, May 16, 2023, at 8:00 a.m. Eastern Time, to discuss these
results. Business media are also invited to listen to the call.
Dial-In Details:
Date: Tuesday, May 16, 2023Time: 8:00 a.m.
ETNorth America dial-in number: 1-888-886-7786International dial-in
number: 1-416-764-8658
Replay Details:
North America dial-in number: 1-877-674-7070International
dial-in number: 1-416-764-8692Conference ID: 66043239Passcode:
043239#
About Titanium
Titanium is a leading North American
transportation company with asset-based trucking operations and
logistics brokerages servicing Canada and the United States, with
approximately 800 power units, 3,000 trailers and 1,100 employees
and independent owner operators. Titanium provides truckload,
dedicated, and cross-border trucking services, logistics, and
warehousing and distribution to over 1,000 customers. In the U.S.,
Titanium has established operations in Charlotte, Atlanta, Chicago,
Nashville, Denver and Arkansas. In February 2021, Titanium
completed its largest acquisition since its founding, establishing
Titanium as the 12th largest Canadian transportation company.
Titanium is a recognized purchaser of asset-based trucking
companies, having completed twelve (12) transactions since 2011.
Titanium ranked among top 500 companies in the inaugural Financial
Times Americas’ Fastest Growing Companies in 2020. The Company was
ranked by Canadian Business as one of Canada's Fastest Growing
Companies for eleven (11) consecutive years. For two (2)
consecutive years, Titanium has also been ranked one of Canada’s
Top Growing Companies by the Globe and Mail’s Report on Business of
Canada. Titanium is currently listed on the Toronto Stock Exchange
under the symbol “TTNM" and “TTNMF” on the OTCQX.
NON-IFRS FINANCIAL MEASURES
The following financial measures do not have any
standardized meaning under IFRS and may not be comparable to
similar measures employed by other companies:
"Earnings before interest, income taxes,
depreciation and amortization" ("EBITDA") is calculated as net
income before depreciation, amortization, asset impairments, gains
or losses on the sale of equipment, finance income and costs, gains
or losses on foreign exchange, income tax expense, transaction
costs, accelerated customer list amortization and goodwill
impairment.
"EBITDA margin" is calculated as EBITDA as a
percentage of revenue before fuel surcharge.
“Free cash flow” is calculated as cash flow from
operations plus proceeds from finance lease receivables and
proceeds from disposition, less capital expenditures.
"Adjusted net income" is calculated as net
income before items that are not in the normal course of business,
such as accelerated customer list amortization and goodwill
impairment.
Management of the Company believes that these
financial measures are useful for investors and other readers, when
used in conjunction with other IFRS financial measures, as they are
measurers used internally by management to evaluate performance.
However, these financial measures are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of financial performance prepared in
accordance with IFRS.
Q1 2023 EBITDA reconciliation
(in thousands $CAD)
|
Q1 2023 |
Q1 2022 |
Net Income |
3,588 |
|
5,969 |
|
Add(deduct) |
|
|
Gain on sale of equipment |
(1,559 |
) |
(845 |
) |
Finance costs |
1,658 |
|
918 |
|
Finance income |
(108 |
) |
(51 |
) |
Foreign exchange |
248 |
|
(25 |
) |
Income taxes |
1,455 |
|
2,180 |
|
Operating Income |
5,282 |
|
8,145 |
|
Depreciation |
6,967 |
|
5,444 |
|
Amortization of intangible assets |
327 |
|
327 |
|
EBITDA |
12,576 |
|
13,917 |
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained in this press
release constitute forward-looking information within the meaning
of Canadian securities laws. Forward-looking statements are
provided for the purposes of assisting the reader in understanding
Titanium's current expectations and plans relating to the future
and readers are cautioned that such statements may not be
appropriate for other purposes. Forward-looking information may
relate to Titanium's future outlook and anticipated events, and may
include statements regarding the financial position, business
strategy, budgets, litigation, projected costs, capital
expenditures, financial results, taxes and plans and objectives of
or involving Titanium. Particularly, statements regarding future
acquisitions, the availability of credit, performance,
achievements, prospects or opportunities for Titanium or the
industry in which it operates are forward-looking statements. In
some cases, forward-looking information can be identified by terms
such as "may", "might", "will", "could", "should", "would",
"occur", "expect", "plan", "anticipate", "believe", "intend",
"seek", "aim", "estimate", "target", "project", "predict",
"forecast", "potential", "continue", "likely", "schedule", or the
negative thereof or other similar expressions concerning matters
that are not historical facts.
Information contained in forward-looking
statements is based upon certain material assumptions that were
applied in drawing a conclusion or making a forecast or projection,
including management's perceptions of historical trends, current
conditions and expected future developments, as well as other
considerations that are believed to be appropriate in the
circumstances. While management considers these assumptions to be
reasonable based on currently available information, they may prove
to be incorrect.
The forward-looking statements made in this
press release are dated, and relate only to events or information,
as of the date of this press release. Except as specifically
required by law, Titanium undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise, after the date on
which the statements are made or to reflect the occurrence of
unanticipated events.
Neither the TSX nor its Regulation Services
Provider (as that term is defined in the policies of the TSX)
accepts responsibility for the adequacy or accuracy of this
release.
CONTACT INFORMATION
Titanium Transportation Group Inc.Ted Daniel, CPA, CAChief
Executive Officer(905) 266-3011ted.daniel@ttgi.comwww.ttgi.com
For Investors RelationsJames
Bowen416-519-9442James.Bowen@loderockadvisors.com
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