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 2021 |
Q1 2020 |
% Change |
Consolidated Results |
|
|
|
Revenue |
$85.7M |
$44.3M |
93.3% |
EBITDA |
$7.5M |
$$4.6M |
65.3% |
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 |
$27.6M |
41.9% |
EBITDA |
$4.2M |
$4.4M |
-5.6 |
EBITDA margin(1) |
11.8% |
17.4% |
|
|
|
|
|
Logistics |
|
|
|
Revenue |
$47.5M |
$18.0M |
164.4% |
EBITDA |
$4.0M |
$0.5M |
618.7% |
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
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