Titanium Transportation Group Inc. ("Titanium" or the "Company")
(TSX:TTNM, OTCQX:TTNMF), today announced it acquired the assets and
equipment of Crane Transport (“Crane”) of Oakwood, GA, for a total
consideration of US$53 million comprising cash, a vendor takeback
loan and assumption of net debt, subject to closing adjustments
(the “Acquisition”). Titanium also purchased all real estate
related to Crane’s operations, including the head office terminal
in Georgia, and its satellite terminal in Alabama, for an
additional consideration of US$6 million. Titanium has the funds to
close the transaction and does not require additional financing.
Founded in 2001, Crane Transport is a
family-owned and operated business specializing in Full Truckload
interstate freight transportation services. Crane generates
approximately US$60 million in annualized revenue and operates
approximately 200 trucks.
Ted Daniel, CEO, Titanium Transportation
Group, commented, “Today’s announcement is further
evidence of Titanium executing on its strategic plan and continuing
to build a strong foundation for future growth in North America.
The addition of Crane Transport’s full truckload business is highly
synergistic within our existing network, immediately adding
capacity and valuable new customer relationships. The Acquisition
will allow us to expand our presence across the United States
through our new strategically located terminals in Georgia and
Alabama, expanding our service offerings and enabling us to offer a
wide range of services including end-to-end supply chain and
freight management solutions to our existing customers.”
“With the addition of Crane Transport, we see
multiple near-term opportunities to enhance profitability, as well
as longer-term opportunities to optimize equipment and technology
towards continued growth and shareholder value creation. Crane
Transport is an excellent fit for us, from a strategic and cultural
point of view and I would like to welcome the Crane team into the
Titanium family,” added Mr. Daniel.
Key transaction highlights:
- Titanium’s first
U.S.-based asset acquisition
- Expands
Titanium’s current presence in Georgia and adds Alabama to its
growing U.S. footprint - positioning the Company to enhance its
service offerings with Titanium branded trucks in a major U.S.
transportation hub
- Titanium will
own the real estate of both terminals, with each being
~11-acres
- The Acquisition
is expected to be accretive after integration, which management
expects to be completed in approximately twelve months.
- This acquisition
continues to expand Titanium’s presence in the US southeast’s
freight alley, which includes North Carolina, South Carolina,
Tennessee, Georgia and Alabama, where a significant portion of this
region’s economy is driven by transportation related
activities.
Danny Crane, Founder and CEO of Crane
Transport, noted, “I am pleased to have the Crane team
join the Titanium family, I feel the business and culture of
Titanium is a perfect fit for our group moving forward. I am
confident that Titanium’s strong platform and growth strategy will
be a perfect fit for Crane. Their focus on innovation and
technology, as well as culture will provide opportunities of growth
for our employees, while continuing to deliver reliable service to
customers, every mile of the way.”
2023 Guidance
Based on the current economic environment and
the Company’s outlook for the remainder of the year, Titanium is
providing the following updates to its guidance, which include the
partial year contribution from Crane.
- Consolidated Revenue is expected to
be between $450 to $470 million compared to the previous
expectation of $500 million to $520 million. The change in revenue
is being driven by a reduction in fuel surcharge due to decreases
in fuel prices, and modest volume as well as transactional pricing
contraction from recessionary market pressures.
- Adjusted EBITDA Margin: 10.5% to
12.5% (previously 9.5%-11.5%)
Transaction Announcement Conference
Call
Management of Titanium will host a conference
call today, July 31, 2023 at 8:00AM ET to discuss the transaction.
Media, analyst and shareholders and interested parties can access
the call by dialing 1-888-575-5167(North America) or 1-416-764-8687
(International).
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 1000 power units, 3,300 trailers and 1,300 employees
and independent owner operators. Titanium provides truckload,
dedicated, and cross-border trucking services, logistics,
warehousing and distribution to over 1,000 customers. With its
first U.S. acquisition, Titanium has established both asset-based
and brokerage operations in Canada and the U.S. with eighteen (18)
locations. Titanium is a recognized purchaser of asset-based
trucking companies, having completed thirteen (13) transactions
since 2011. Titanium ranked among top 500 companies in the
inaugural Financial Times Americas’ Fastest Growing Companies in
2020. The Company was ranked by Canadian Business as one of
Canada's Fastest Growing Companies for eleven (11) consecutive
years. For two (2) consecutive years, Titanium has also been ranked
one of Canada’s Top Growing Companies by the Globe and Mail’s
Report on Business of Canada. Titanium is currently listed on the
Toronto Stock Exchange under the symbol “TTNM" and “TTNMF” on the
OTCQX.
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 nor its Regulation Services
Provider (as that term is defined in the policies of the TSX)
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
For Investor RelationsJames Bowen,
CFA416-519-9442James.Bowen@loderockadvisors.com
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