Titanium Transportation Group Reports Strong 2020 Financial Results and Reiterates 2021 Guidance of $330 Million Revenue and $33 Million EBITDA

Bolton, Ontario, CANADA


BOLTON, Ontario, March 09, 2021 (GLOBE NEWSWIRE) -- Titanium Transportation Group Inc. ("Titanium" or the "Company") (TSX VENTURE:TTR), a leading provider of transportation and logistics services throughout North America, is pleased to report its financial results for the three month period and year ended December 31, 2020. All amounts are in Canadian currency.

Record fourth quarter results marked a strong finish to an extraordinary year that exceeded expectations,” said Ted Daniel, Chief Executive Officer, Titanium Transportation Group. “With cautious optimism for economic recovery, we enter 2021 accompanied by an industry leading technology and service platform focused on delivering growth including the expansion of our U.S. based logistics business and the recently announced acquisition of International Truckload Services (“ITS”) Group.”

FY 2020 Financial Highlights compared with FY 2019

  • Record consolidated revenue of $200.7 million -- an increase of 20.2%
  • EBITDA of $23.1 million -- an increase of 25.1% -- and an EBITDA Margin of 12.2%
    • Net debt decreased $12.7 million, and the net debt-to-equity ratio improved to 1.14 at December 31, 2020
    • Initiated first ever quarterly cash dividend of $0.02 in November 2020

Q4 2020 Financial Highlights compared with Q4 2019

  • Record consolidated revenue of $65.9 million -- an increase of 52%
  • EBITDA of $6.5 million – an increase of 46.2% -- and an EBITDA Margin of 10.4%
  • Strong Logistics segment revenue of $40.4 million -- an increase of 122.9% -- including U.S. freight brokerage revenue of $24.2 million
  • Truck Transportation segment revenue of $26.8 million -- an increase of 1.9%

Key Corporate Highlights

  • Completed $60.5 million acquisition comprising $27 million in cash and $33.5 million in assumed debt and vendor takeback loan for all of the outstanding shares of ITS in February 2021, adding a well-established and long-standing customer base in southern Ontario, Quebec and the United States which is expected to add $80 million in annualized revenue and contribute to a significant increase in EBITDA in 2021
  • Expanded the U.S. logistics operation with new brokerage offices in Nashville and Chicago
  • Two additional offices in 2021 and two more in 2022 will be opened for the U.S. operation for a total of seven

”The acquisition of ITS is a clear example of executing on our focused and disciplined acquisition growth strategy. The integration is well underway and we expect to realize synergies and leverage best practices from each organization," said Daniel. “Similarly, the strong results of our U.S. logistics business validate the decision to strategically invest in a U.S. based freight brokerage segment – an asset light business that leverages Titanium’s strong operational and technological foundations.  

“Looking ahead, we have a proven platform, a clear and focused growth strategy, and an improving operating outlook for the industry. We expect this to support continued operating improvements and growth for Titanium as reflected in our 2021 guidance," Daniel concluded.

2021 Guidance

  • As a result of the acquisition, combined with forecast organic growth, revenue is expected to increase to approximately $330 million and EBITDA to increase to approximately $33 million in 2021.

Summary of Q4 and FY 2020 Financial Results

 Q4 2020Q4 2019% Change2020 2019 % Change
Consolidated Results       
Revenue$65.9M$43.3M52.1% $200.7M$167.0M20.2% 
Adjusted EBITDA(2)$6.5M$4.5M46.2% $19.7M$18.4M6.8% 
Adjusted EBITDA Margin(1)(2)10.4% 11.2%  10.4% 11.9%  
EBITDA$6.5M$4.5M46.2% $23.1M$18.4M25.1% 
EBITDA margin(1)10.4% 11.2%  12.2% 11.9%  
Adjusted Net Income (2)$2.1M$0.3M668.0% $2.9M$1.6M82.1% 
Adjusted Net Income per share(2)0.06 0.01  0.08 0.04  
Net Income$2.1M$0.3M668.0% $6.3M$1.6M295.3% 
Net Income per share0.06 0.01  0.17 0.04  
       
Truck Transportation      
Revenue$26.8M$26.3M1.9% $106.3M$110.2M-3.6% 
Adjusted EBITDA$3.9M$4.1M-4.9% $16.2M$17.2M-5.6% 
Adjusted EBITDA Margin15.2% 16.7%  16.2% 16.8%  
EBITDA$3.9M$4.1M-4.9% $18.6M$17.2M8.0% 
EBITDA margin(1)15.2% 16.7%  18.6% 16.8%  
       
Logistics      
Revenue$40.4M$18.1M122.9% $99.9M$61.8M60.3% 
Adjusted EBITDA(2)$3.3M$0.8M286.4% $5.4M$2.9M84.0% 
Adjusted EBITDA Margin(1)(2)8.5% 5.0%  5.7% 5.1%  
EBITDA$3.3M$0.8M286.4% $6.4M$2.9M119.5% 
EBITDA margin(1)8.5% 5.0%  6.9% 5.1%  

1)   EBITDA margin is calculated as EBITDA as a percentage of revenue before fuel surcharge.

2)   Adjusts for the subsidies received under CEWS, which equated to $3.37 million on a consolidated basis for the year ($2.34 million for the Truck Transportation segment and $1.03 million for the Logistics segment).

Robust Shareholder Return and Capital Allocation Program

In addition to focusing on growth organically and through acquisition, the Company is focused on prudently balancing internal capital needs while rewarding shareholders through a predictable return on investment. Given the strength of the Company’s balance sheet and management’s confidence in the earnings outlook, Titanium declared its first ever quarterly dividend in November 2020 at $0.02 per common share.

Conference Call

The Company will also hold a conference call on Wednesday, March 10, 2021, 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 24, 2021 by dialing 1-800-585-8367 (North America) or 1-416-621-4642 (International) and entering the Conference ID: 9419048.

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. The acquisition is expected to deliver an immediate and significant increase in revenue and EBITDA. 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, CA
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com 
www.ttgi.com