Titanium Transportation Group Announces Record Quarter, Reports 68% Increase in Revenue

WOODBRIDGE, ONTARIO--(Marketwired - May 26, 2015) - Titanium Transportation Group Holdings Ltd. ("Titanium" or the "Company"), a wholly-owned subsidiary of Titanium Transportation Group Inc. (TSX VENTURE:TTR), is pleased to provide highlights of the Company's first quarter 2015 financial results.

Revenue and EBITDA Growth Summary

- Revenue for the quarter rose to $24.0 million, a 68% increase over the first quarter of 2014

- EBITDA for the quarter rose to $2.8 million, a 145% increase over the first quarter of 2014

- Annualized run rate total revenue and EBITDA in excess of $115.0 million and $13.0 million⁽¹⁾

Segment Highlights

- Truck Transportation revenue rose to $14.7 million, a 63% increase over the first quarter of 2014

- Truck Transportation EBITDA margin increased to 15.9%, from 11.5% in the first quarter of 2014

- Logistics revenue rose to $9.4 million, a 74% increase over the first quarter of 2014

- Logistics EBITDA margin increased to 10.5%, from 6.2% in the first quarter of 2014

Mergers & Acquisitions Summary

- Titanium acquired Muskoka Transport Limited ("Muskoka") on March 1st, 2015

- Muskoka contributed revenues of $2.8 million and EBITDA of $0.2 million in the first quarter of 2015

- M&A pipeline of asset-based truckload companies

Mr. Ted Daniel, CEO of Titanium commented: "We are pleased to announce record results for the first quarter of 2015 including a significant increase in operating margins. These results are particularly positive, as the first quarter is historically our weakest due to industry seasonality. We would also like to thank all of our employees and drivers for their contribution in making this quarter a success. Our strong corporate culture and best-in-class operating team is what allows us to continue to execute our growth and consolidation strategy successfully."

Full financial results are available on www.sedar.com.

In its Truck Transportation (truckload) division, Titanium is consolidating a large and fragmented market of asset-based trucking companies. Once acquired, Titanium is using its leading edge customized technology to integrate acquisitions and increase profitability. To date, Titanium has completed seven asset-based trucking acquisitions with annualized revenue of $65 million.

In its logistics division, Titanium has grown organically using customized software and ongoing technology initiatives to provide a competitive edge in sourcing business.

About Titanium

Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with over 325 power units, approximately 1,100 trailers and over 400 employees and independent owner operators. Titanium provides truckload, dedicated, and cross-border trucking services, freight logistics, and warehousing and distribution to over 800 customers. Titanium is a recognized consolidator of asset-based transportation companies in Ontario, having completed seven asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada's Fastest Growing Companies for six 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 finance income and costs, income tax expense, depreciation, amortization, asset impairments, gains or losses on the sale of equipment and reverse takeover costs.

"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. 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.

⁽¹⁾ Run rate figures are the sum of: (A) annualizing Titanium's first quarter results after excluding the March 2015 Muskoka Transport revenue and EBITDA contribution, and (B) annualizing the March 2015 Muskoka Transport revenue and EBITDA contribution.

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 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 TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.