Titanium Transportation Group Reports Record Revenue of $102 Million For Third Quarter 2021; On Track to Exceed $350 Million Annual Revenue Guidance

Bolton, Ontario, CANADA


BOLTON, Ontario, Nov. 09, 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 and nine month periods ended September 30, 2021. All amounts are in Canadian currency.

Titanium recorded record consolidated revenue for the fifth consecutive quarter, reaching $101.7 million in third quarter 2021 reflecting the company’s recent strategic investments in growth opportunities and focused execution in both its Truck Transportation and Logistics segments. Year-to-date, the Company has achieved record revenue of $288.1 million and is on track to exceed its previous annual revenue guidance of approximately $350 million.

Q3 2021 Financial Highlights compared with Q3 2020:

  • Record consolidated revenue of $101.7 million -- an increase of 93.2%
  • Adjusted EBITDA(2) of $7.2 million -- an increase of 7.8% -- and adjusted EBITDA Margin(2) of 7.8%
  • Logistics segment revenue of $59.4 million -- an increase of 128.7% -- including a 208.1% increase in US freight brokerage revenue to $42.0 million
  • Logistics segment EBITDA of $3.4 million and an EBITDA Margin of 6.1%
  • Truck Transportation segment revenue of $42.8 million – an increase of 55.7%
  • Adjusted Truck Transportation segment EBITDA(2) $4.6 million – a decrease of 10.2%-- and an adjusted EBITDA Margin of 12.2%.
  • Strong Net Cash balance of $6.9 million as at September 30, 2021
  • In the quarter, the Company declared and paid a dividend of $0.02 per share

“Our third quarter 2021 results, which delivered record top line revenue growth and sustained profitability, are a testament to Titanium’s business strengths, including our ability to successfully execute and integrate a transformative acquisition and enter new US markets during a period of economic uncertainty,” said Ted Daniel, Chief Executive Officer, Titanium Transportation Group.

“The integration of the ITS Group, which was acquired in the first quarter of 2021, has gone according to our plan and despite a softening of margins in the trucking segment, profitability is expected to improve as we target further operational efficiencies in the coming quarters and market conditions improve. The Logistics segment saw some normalization of margins in the quarter,” said Daniel. “We continue to adjust to challenging operating conditions that impacted margins in both business segments, including significant supply chain constraints, substantial inflationary pressure and tighter labour markets.”

“Looking ahead, and despite a somewhat uncertain economic environment, we remain focused on profitability and strategic execution of growth initiatives, both organically and through acquisitions, including expanding our U.S. Logistics operations to a fifth market.”  

Titanium remains well positioned to achieve sustainable, profitable growth with a flexible, technology-based platform, driven by a dedicated team of professionals with a demonstrated track record of delivering for our customers through challenging conditions,” said Daniel.

Summary of Q3 2021 Financial Results

 Q3 2021Q3 2020  YTD 2021YTD 2020 
Consolidated Results        
Revenue$101.7M$52.6M93.2% $288.2M$134.9M113.6%
Adjusted EBITDA(2)$7.2M$5.5M31.3% $22.0M$13.2M66.6%
Adjusted EBITDA margin(1)(2)7.8%11.1%  8.3%10.4% 
EBITDA$7.2M$6.7M7.8% $22.5M$16.6M35.7%
EBITDA margin(1)7.8%13.5%  8.5%13.1% 
Adjusted Net Income(2)$1.4M1.8M  $3.1M1.7M 
Adjusted Net Income per share(2)$0.03$0.05  $0.07$0.05 
Net Income$1.4M$2.7M(49.0%) $3.5M$4.2M(17.0%)
Net Income per share$0.03$0.07  $0.08$0.11 
        
Truck Transportation       
Revenue$42.8M$27.5M55.7% $126.7M$79.4M59.5%
Adjusted EBITDA(2)$4.6M$4.5M1.7% $12.2M$12.4M(1.7%)
Adjusted EBITDA margin(1)(2)12.2%17.5%  10.7%16.6% 
EBITDA$4.6M$5.1M(10.2%) $12.7M$14.7M(13.7%)
EBITDA margin(1)12.2%19.8%  11.2%19.7% 
        
Logistics       
Revenue$59.4M$26.0M128.7% $164.7M$58.6M181.0%
Adjusted EBITDA(2)$3.4M$1.4M146.7% $12.1M$2.1M479.6%
Adjusted EBITDA margin(1)(2)6.1%5.8%  7.8%3.8% 
EBITDA$3.4M$2.0M72.2% $12.1M$3.2M284.8%
EBITDA margin(1)6.1%8.1%  7.8%5.7% 

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 $0.5 million (2020- $3.4 million) on a consolidated basis. Truck Transportation segment received all of the assistance in 2021 ($2.3 million in 2020)

Shareholder Return and Capital Allocation Program

The Company continues to focus on growth organically and through acquisition. The Company also 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, Titanium declared a quarterly dividend in August 2021 at $0.02 per common share.

Conference Call

The Company will also hold a conference call on Wednesday, November 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 November 24, 2021 by dialing 1-800-585-8367 (North America) or 1-416-621-4642 (International) and entering the Conference ID: 7194883 .

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