Titanium Transportation Group Announces Strong Q1 2021 Results

Revenue Tops $85 Million and EBITDA of $7.5 Million; Company on Track to Achieve Annual Guidance

Bolton, Ontario, CANADA


BOLTON, Ontario, May 11, 2021 (GLOBE NEWSWIRE) -- 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 month period ended March 31, 2021.  All amounts are in Canadian currency.

“Q1 was another quarter of milestones for Titanium. We delivered record quarterly revenue, completed a transformative acquisition with the addition of International Truckload Services Group (“ITS”), continued to expand our U.S. Freight Brokerage business and further strengthened our capital position - successfully raising a total of $25 million in equity during the quarter,” said Ted Daniel, Chief Executive Officer, Titanium Transportation Group.

“The strength of our technology platform and our operational expertise positions us well to deliver synergies through the integration of ITS and to further expand our U.S. Freight Brokerage business with additional offices.  As we continue to integrate ITS into Titanium we will build on ITS’ strengths and improve margins over time to drive profitable growth all supported by the expected gradual improvement in overall operating conditions.”

Q1 2021 Financial Highlights compared with Q1 2020

  • Record consolidated revenue of $85.7 million -- an increase of 93.3%

  • Consolidated EBITDA of $7.5 million -- an increase of 65.3% -- an EBITDA Margin of 9.5%

  • Logistics segment revenue of $47.5 million -- an increase of 164.4% -- including US freight brokerage revenue of $32.4 million

  • Logistics segment EBITDA of $4.0 million -- an EBITDA Margin of 8.8%

  • Truck Transportation segment revenue of $39.2 million -- an increase of 41.9%

  • Truck Transportation segment EBITDA $4.2 million -- an EBITDA Margin of 11.8%

  • Consolidated Net Income of $1.17 million -- an increase of 81.8% and earnings per share of $0.03

  • Net debt-to-equity ratio improved to 1.01 at March 31, 2021, from 1.14 on December 31, 2020

  • Strong Cash balance of $10.0 million at March 31, 2021, following the closing of a $25.0 million bought deal public offering and $10.0 million secondary public offering

  • The Company also closed the acquisition of ITS Group for $60.5 million of which $27 million was paid in cash and $33.5 million in assumed debt

  • Following the closing of the acquisition and strong Q1 results, the Company remains on track to achieve its annual guidance of approximately $330 million in Revenue and $33 million in EBITDA in 2021

Daniel concluded, “Looking ahead, we remain cautiously optimistic that conditions will continue to improve as efforts to combat this pandemic build momentum and the Canadian and U.S. markets recover.  With the strategic acquisition of ITS Group, we expanded our footprint and strengthened our service offering to new and established customers, positioning us as a leader and for continued growth in Canada. We are excited about the significant growth opportunities in the U.S. where we can apply our proven business model, technology and expertise to deliver enhanced, sustainable performance and create long-term shareholder value.”

Summary of Q1 2021 Financial Results

 Q1 2021Q1 2020% Change
Consolidated Results    
Revenue$85.7M$44.3M93.3%
EBITDA$7.5M$$4.6M65.3%
EBITDA margin(1)9.5%11.1% 
Net Income$1.2M$0.6M 81.8%
Net Income per share$0.03$0.02 
    
Truck Transportation   
Revenue$39.2M$27.6M41.9%
EBITDA$4.2M$4.4M-5.6
EBITDA margin(1)11.8%17.4% 
    
Logistics   
Revenue$47.5M$18.0M164.4%
EBITDA$4.0M$0.5M618.7%
EBITDA margin(1)8.8%3.3% 


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

Conference Call

The Company will also hold a conference call on Wednesday, May 12, 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: 2198584.

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, CA
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com
www.ttgi.com