Titanium Transportation Group Inc. ("Titanium" or the "Company")
(
TSX:TTNM), a leading provider of transportation
and logistics services throughout North America, is pleased to
report its financial results for the three month and six month
period ended June 30, 2022. All amounts are in Canadian currency.
Q2 2022 Financial Highlights compared with Q2
2021
- Consolidated revenue
of $136.2 million -- an increase of 35.1%
- Consolidated
EBITDA(1) of $16.3 million -- an increase of 111.3% -- EBITDA
Margin(1) of 14.0%
- Logistics segment
revenue of $78.6 million -- an increase of 36.2% -- including US
freight brokerage revenue of $46.0 million which increased
16.9%
- Logistics segment
EBITDA of $8.4 million – EBITDA Margin of 12.0%
- Truck Transportation
segment revenue of $58.6 million -- increase of 30.9% and EBITDA(2)
of $9.0 million – an increase of 130.7% -- and EBITDA Margin
of 18.8%
- Total net income per
share of $0.17, fully diluted -- a more than eight-fold increase
compared with total net income per share of $0.02 in Q2 2021
- Successfully
graduated from the TSX Venture to the TSX trading
under symbol “TTNM” on August 3, 2022
“Titanium delivered exceptionally strong performance and
markedly improved profitability in the quarter, and through the
first half of the year, highlighting our excellent operational
execution, U.S. expansion, and synergies from acquisitions,” said
Ted Daniel, CEO, Titanium Transportation Group. “Our logistics and
trucking segments posted double-digit revenue growth and increased
margins reflecting an improved pricing environment despite
continued inflationary pressures on costs that persisted during the
quarter.”
Q2 YTD 2022 Financial Highlights compared with Q2 YTD
2021
- Consolidated revenue
of $272.2 million -- an increase of 46.0% -- EBITDA of $30.3
million and EBITDA Margin(1) of 12.7%
- Logistics segment
revenue of $166.5 million -- an increase of 58.1% -- EBITDA of
$17.5 million and EBITDA Margin of 11.7%
- Truck Transportation
segment revenue of $108.0 million -- an increase of 28.6% -- EBITDA
of $14.7 million and EBITDA Margin of 16.2%
- Total net income per
share of $0.30, fully diluted -- a more than six-fold increase
compared with total net income per share of $0.05 in Q2 2021
Consolidated revenue grew by 46.0% to $272.2 million in the
first half of the year and EBITDA increased 98.4% to $30.3 million.
Logistics delivered strong organic growth as we continued the
strategic build out of our U.S. footprint, adding Atlanta, GA as
our newest office location with at least one additional office
planned to come online before the end of the year. The Trucking
segment earned record quarterly revenue and record margins. A
favourable pricing environment combined with the added contribution
from the acquisition of ITS drove a 28.5% year-on-year growth on
revenue for the segment or 22.1% excluding acquisitions. More
importantly, EBITDA margins improved from 10.7% to 16.2% for the
first six months of the year, reflecting the achievement of planned
synergies and operational improvements.
2H 2022 Outlook
In the second half of the year, while overall industry growth is
expected to moderate, management remains cautiously optimistic
despite near-term, inflationary pressure on input costs. This
includes, but not limited to fuel costs, driver wages, rising
purchase prices for tractors, trailers and other direct inputs that
are expected to persist across the industry. However, rising
interest rates are also expected to ultimately dampen these
inflationary pressures, though the timing and magnitude of these
impacts remain to be determined.
Updated 2022 Guidance
Assuming some moderation from the recent pace of growth during
the balance of the year, Titanium is on track to exceed its initial
2022 guidance set at the beginning of the year.
The Company estimates it will deliver consolidated top line
revenue between $460 million - $480 million, and consolidated
EBITDA between $45 million - $50 million.
Daniel concluded, “While overall industry growth is expected to
moderate through the back half of the year, Titanium remains well
positioned. We have clearly demonstrated our ability to respond
effectively to evolving customer needs and market conditions. We
remain optimistic in our ability to deliver sustainable growth and
profitability as we focus on efficiencies and continuous
productivity improvements as well as potential acquisition
opportunities should they arise.”
Summary of Q2 2022 Financial Results (in thousands
$CAD)
|
Q2 2022 |
Q2 2021 |
% Change |
|
YTD 2022 |
YTD 2021 |
% Change |
Consolidated Results |
|
|
|
|
|
|
|
Revenue |
136,183 |
100,798 |
35.1% |
|
272,170 |
186,472 |
46.0% |
EBITDA |
16,335 |
7,731 |
111.3% |
|
30,252 |
15,246 |
98.4% |
EBITDA margin(1) |
14.0% |
8.4% |
|
|
12.7% |
8.9% |
|
Net Income |
7,577 |
938 |
707.8% |
|
13,545 |
2,107 |
542.9% |
Net Income per share |
0.17 |
0.02 |
|
|
0.31 |
0.05 |
|
|
|
|
|
|
|
|
|
Truck Transportation |
|
|
|
|
|
|
|
Revenue |
58,615 |
44,763 |
30.9% |
|
107,955 |
83,944 |
28.6% |
EBITDA |
8,969 |
3,887 |
130.7% |
|
14,664 |
8,066 |
81.8% |
EBITDA margin(1) |
18.8% |
9.7% |
|
|
16.2% |
10.7% |
|
|
|
|
|
|
|
|
|
Logistics |
|
|
|
|
|
|
|
Revenue |
78,624 |
57,732 |
36.2% |
|
166,541 |
105,273 |
58.2% |
EBITDA |
8,424 |
4,725 |
78.3% |
|
17,577 |
8,713 |
101.7% |
EBITDA margin(1) |
12.0% |
8.7% |
|
|
11.7% |
8.8% |
|
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
Tuesday, August 9, 2022, 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 1-888-886-7786
(North America) or 1-647-764-8658 (International).
Replay Details:
A replay of the conference call can be accessed
until midnight on August 23, 2022 by dialing 1-877-674-7070 (North
America) or 1-416-764-8692 (International) and entering the
Conference ID: 69507346.
About Titanium
Titanium is a leading North American
transportation company with asset-based trucking operations and
logistics brokerages 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, logistics, and
warehousing and distribution to over 1,000 customers. In the U.S.
Titanium has established operations in Charlotte, Atlanta, Chicago,
Nashville, Denver. In February 2021, Titanium completed its largest
acquisition since its founding, establishing Titanium as the 12th
largest Canadian transportation company. Titanium is a recognized
purchaser of asset-based trucking companies, having completed
twelve (12) transactions since 2011. Titanium ranked among top 500
companies in the inaugural Financial Times Americas’ Fastest
Growing Companies in 2020. The Company has been ranked by Canadian
Business as one of Canada's Fastest Growing Companies for twelve
(12) consecutive years. Titanium is currently listed on the Toronto
Stock Exchange under the symbol “TTNM".
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, CAChief
Executive Officer(905) 266-3011ted.daniel@ttgi.comwww.ttgi.com
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