Titanium Transportation Group Inc. ("Titanium" or the "Company")
(TSXV:TTR), a leading provider of transportation and logistics
services throughout
North America, is pleased to report its financial results for
the three and twelve month periods ended December 31, 2021. All
amounts are in Canadian currency.
Fourth quarter 2021 results cap a year of records for
Titanium, delivering record consolidated revenue for the sixth
consecutive quarter, reaching $111.3 million. The Company exceeded
increased 2021 revenue guidance delivering the highest full year
revenue in the Company’s history at $399.4 million, nearly double
its full year revenue in 2020.
“Our strong results demonstrate our ability to navigate and
adapt through challenging conditions to serve our North America
trucking and logistics customers. We completed the largest
acquisition in our Company’s history and successfully expanded into
new U.S. markets, to achieve record top line revenue growth of
about $400 million,” said Ted Daniel Chief Executive Officer,
Titanium Transportation Group. “With our exceptional team, we
continued to invest in, technology, assets and our people enhancing
our ability to execute on near-term growth opportunities to create
sustainable shareholder value.”
FY 2021 Financial Highlights compared with FY
2020
- Record consolidated revenue of
$399.4 million -- an increase of 99% -- exceeding 2021
guidance
- Adjusted EBITDA(2) of $31.3 million
-- an increase of 35.5% -- and an Adjusted EBITDA Margin(2) of 8.7%
which includes $2.5 million in non-recurring acquisition
integration costs associated with the purchase of ITS and ITS
operating losses of approximately $1.9 million, the Adjusted EBITDA
is in-line with 2021 guidance.
- In FY 2021, the Company returned a
total of $3.4 million to shareholders by way of dividends
Q4 2021 Financial Highlights compared with Q4
2020
- Record consolidated revenue of
$111.3 million -- an increase of 69.0%
- Adjusted EBITDA(2) of $8.9 million
-- an increase of 34.5% -- adjusted EBITDA Margin(2) of 8.7%
- Logistics segment revenue of $68.2
million -- an increase of 68.7% -- including US freight brokerage
revenue of $44.6 million which increased 84.3%
- Logistics segment Adjusted EBITDA of
$4.8 million – Adjusted EBITDA Margin of 7.6%
- Truck Transportation segment revenue
of $44.5 million -- increase of 66.0% and Adjusted EBITDA(2) $4.8
million -- increase 24.3% -- an Adjusted EBITDA Margin of
12.3%
Daniel continued, “During the quarter, we successfully completed
the integration of ITS and made excellent progress improving
margins and profitability as we realized operational efficiencies
in Trucking. Looking ahead to 2022, we expect our segment margins
and profitability to return as we optimize our combined fleet. As
Logistics margins continued to further normalize during the
quarter, we also focused on managing our pricing to address ongoing
rising industry costs and enhance our technologies to allow us to
efficiently scale our logistics expansions.
“Looking ahead, we will continue to adapt to the evolving
economy and challenging conditions with respect to inflationary
pressures, ongoing challenges in the global supply chain and
tighter labour markets. With the support of our experienced and
dedicated team Titanium remains exceptionally well positioned to
navigate these conditions with the scale and a technology-based
platform to deliver organic growth and logistics solutions for our
customers.”
2022 Outlook
Titanium is well-positioned to leverage its capacity, expertise
and technologies through 2022. The Company estimates it will
deliver consolidated top line revenue between $450 – $470 million
and between $38 – $43 million in EBITDA.
In addition, with a solid balance sheet and disciplined focus,
the Company remains committed to exploring further acquisition and
expansion opportunities in the U.S. and Canada as they arise in
2022.
Summary of Q4 2021 Financial Results (in thousands
$CAD)
|
Q4 2021 |
Q4 2020 |
% Change |
2021 |
2020 |
% Change |
Consolidated Results |
|
|
|
|
|
|
Revenue |
111,283 |
65,849 |
69.0% |
399,443 |
200,742 |
99.0% |
Adjusted EBITDA(2) |
8,783 |
6,529 |
34.5% |
31,304 |
19,725 |
58.7% |
Adjusted EBITDA Margin(1)(2) |
8.7% |
10.4% |
|
8.6% |
10.4% |
|
EBITDA |
8,783 |
6,529 |
34.5% |
31,304 |
23,095 |
35.5% |
EBITDA margin(1) |
8.7% |
10.4% |
|
8.6% |
12.2% |
|
Adjusted Net Income (2) |
1,362 |
2,094 |
-35.0% |
5,035 |
2,896 |
73.9% |
Adjusted Net Income per share(2) |
0.04 |
0.06 |
|
0.12 |
0.08 |
|
Net Income |
1,362 |
2,094 |
-35.0% |
5,035 |
6,266 |
-19.6% |
Net Income per share |
0.04 |
0.06 |
|
0.12 |
0.17 |
|
|
|
|
|
|
|
|
Truck Transportation |
|
|
|
|
|
|
Revenue |
44,526 |
26,825 |
66.0% |
171,245 |
106,255 |
61.2% |
Adjusted EBITDA |
4,791 |
3,854 |
24.3% |
17,513 |
16,215 |
8.0% |
Adjusted EBITDA Margin |
12.3% |
15.2% |
|
11.5% |
16.2% |
|
EBITDA |
4,791 |
3,854 |
24.3% |
17,513 |
18,555 |
-5.6% |
EBITDA margin(1) |
12.3% |
15.2% |
|
11.5% |
18.6% |
|
|
|
|
|
|
|
|
Logistics |
|
|
|
|
|
|
Revenue |
68,152 |
40,387 |
68.7% |
232,311 |
99,004 |
134.6% |
Adjusted EBITDA(2) |
4,831 |
3,271 |
47.7% |
16,968 |
5,394 |
214.6% |
Adjusted EBITDA Margin(1)(2) |
7.6% |
8.5% |
|
7.8% |
5.7% |
|
EBITDA |
4,831 |
3,271 |
47.7% |
16,968 |
6,424 |
164.1% |
EBITDA margin(1) |
7.6% |
8.5% |
|
7.8% |
6.9% |
|
1) |
EBITDA margin is calculated as EBITDA as a percentage of revenue
before fuel surcharge. |
2) |
Adjusts for the subsidies received under the Canadian Emergency
Wage Subsidy program, which equated to $0.1 million (2020- $3.4
million) on a consolidated basis. In 2020, $2.4 million was
received for the Truck Transportation segment and $1.0 million for
the Logistics segment. |
|
|
Shareholder Return and Capital Allocation
Program
Titanium focuses on prudently balancing internal capital needs
while rewarding shareholders through a predictable return on
investment. With the strength of the Company’s balance sheet and
management’s confidence in the earnings outlook in 2021, Titanium
returned a total $3.4 million to shareholders in via dividends
declared, or $0.08 per common share (2020 - $0.7 million).
Subsequent to the December 31, 2021, the Company declared dividends
of $0.02 per common share payable on March 15, 2022 to shareholders
as of end of business on February 28, 2022.
Conference Call
The Company will also hold a conference call on
Wednesday, March 9, 2022, at 8:00 a.m. Eastern Time, to discuss
these results. Business media are also invited to listen to the
call.
Dial-In Details:
Interested parties can join the call by dialing 1-877-291-4570
(North America) or 1-647-788-4919 (International).
Replay Details:
A replay of the conference call can be accessed
until midnight on March 23, 2022 by dialing 1-800-585-8367 (North
America) or 1-416-621-4642 (International) and entering the
Conference ID: 6788524.
About Titanium
Titanium is a leading asset-based transportation
and logistics company 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, freight logistics,
and warehousing and distribution to over 1,000 customers. In
February 2021, Titanium completed its strategic acquisition of
International Truckload Services Group, establishing Titanium among
the largest Canadian transportation companies. Titanium is a
recognized consolidator of asset-based transportation companies in
Ontario, having completed eleven (11) asset-based trucking
acquisitions since 2011. Titanium has also been ranked by Canadian
Business (formerly PROFIT magazine) as one of Canada's Fastest
Growing Companies for twelve (12) consecutive years.
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.
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-V nor its Regulation Services Provider (as that
term is defined in the policies of the TSX-V) 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
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