BOLTON, Ontario, May 08, 2018 (GLOBE NEWSWIRE) -- Titanium Transportation Group Inc. ("Titanium" or the "Company") (TSX-V:TTR), a leading provider of transportation and logistics services throughout  North America, today reported its financial results for the three month period ended March 31, 2018.  All amounts are in Canadian currency.

Q1 2018 Highlights

  • Record quarterly consolidated revenue of $45.5 million, up 53%
  • Record quarterly consolidated EBITDA of $5 million, up 71%
  • Logistics segment EBITDA more than doubled to $2.1 million, over Q4 2017
  • Increased revenue run rate 10% to $170 million and EBITDA 11% to $18 million
  • Net income of $1.1 million and $0.03 earnings per share
  • Completed integration of Xpress Group acquisition
  • Ranked among top 10% of Canadian fleets for safety management; awarded Best HR Performance Management Program

CEO Commentary

“We had an excellent start to the year, delivering record revenue and EBITDA driven by strong organic growth,” said Ted Daniel, Chief Executive Officer of Titanium Transportation Group. “As expected, our strategic investment in people, equipment and custom-built technology enabled us to take advantage of improved market conditions and increased demand during the first quarter.”

Mr. Daniel added, “Looking ahead, we expect market conditions to remain favorable for carriers.  Continued economic growth, driver scarcity and the impact of new safety regulations will continue to contribute towards tightening capacity and create opportunities for further organic growth.  We remain focused on disciplined investment in our acquisition strategy as well as drivers, infrastructure and technology, which will drive organic growth. We look forward to executing on our plans this year and creating sustainable shareholder value.”

Summary of Consolidated Q1 2018 Financial Results

 Q1 2018Q1 2017% Change
Revenue$45.5M   $29.8M   +53%
EBITDA$5.0M   $2.9M   +71%
EBITDA margin 11.7%    10.4%    
Net income$1.1M   $0.1M    
Net income per share - basic$0.03   $0.00    

Logistics Segment Highlights

  • Revenue growth of 115% to $20.4 million
  • EBITDA more than quadrupled to $2.1 million
  • EBITDA margin more than doubled to 10.9%, from 5.1% in Q1 2017 primarily due to a significant increase in volumes over relatively fixed costs

Truck Transportation Segment Highlights

  • Revenue increased 26% to $26 million, including fuel surcharges
  • EBITDA increased 15% to $3.2 million
  • EBITDA margin was 13.6%, a decline from 14.6% in Q1 2017 primarily due to an increase in driver compensation in Q1 2018

Revenue and EBITDA Run Rate

Favorable industry conditions experienced in Q1 2018 are expected to continue in the immediate term, and based on these conditions, the Company is adjusting its revenue and EBITDA run rate estimates upwards to $170 million and $18 million, respectively from $155 million and $16 million.

Conference Call

The Company will also hold a conference call for analysts and investors on Wednesday, May 9, 2018, at 8:00 a.m. Eastern Time, to discuss first quarter financial results.  Business media are invited to listen to the call.  Interested parties can join the call by dialing 1-866-393-4306 (North America) or 1-617-826-1698 (International).  A recording of the call will be available until midnight, May 23, 2018 by dialing 1-855-859-2056 (North America) or 1-404-537-3406 (International) and entering Conference ID3874438.

About Titanium Transportation Group

Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 450 power units, 1,500 trailers and 550 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. Titanium is a recognized consolidator of asset-based transportation companies in Ontario, having completed ten asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada's Fastest Growing Companies for nine 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.

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. For greater certainty and notwithstanding the foregoing, annualized run rate total revenue and EBITDA are not presented herein as forward-looking statements. These annualized figures are based solely on historical data and are included to allow readers to understand the current size of the Company, and should not in any circumstance be construed as projections or forecasts of the Company's future performance.

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.
Kasia Malz, CPA, CA
Chief Financial Officer
(905) 266-3036
investors@ttgi.com
www.ttgi.com