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 six month periods ended June
30, 2021. All amounts are in Canadian currency.
Titanium delivered a fourth consecutive quarter
of record revenue at $100.8 million driven by significant growth in
both the Truck Transportation and Logistics segment - surpassing
the $100 million milestone for the first time in the company's
history.
“These results reflect the impact of Titanium's
focused strategic investment in growth initiatives and the ability
of our team to execute the strategy through a challenging operating
environment”, said Ted Daniel, Chief Executive Officer, Titanium
Transportation Group. “We are making strong progress on the
integration of the ITS Group which contributed $15.9 million to our
trucking revenue.”
Q2 2021 Financial Highlights compared with Q2
2020
- Record consolidated revenue of
$100.8 million -- an increase of 165.6%
- Adjusted EBITDA(2) of $7.5 million
-- an increase of 141.0% -- adjusted EBITDA Margin(2) of 8.1%
- Logistics segment revenue of $57.7
million -- an increase of 294.2% -- including US freight brokerage
revenue of $39.4 million which increased 684.6%
- Logistics segment EBITDA of $4.7
million -- EBITDA Margin of 8.7%
- Truck Transportation segment revenue
of $44.8 million -- increase of 83.8%
- Adjusted Truck Transportation
segment EBITDA(2) $3.7 million -- increase of 8.1% -- an adjusted
EBITDA Margin of 9.2%, reflecting $2.5 million of non-recurring
acquisition integration costs in the quarter
- Strong Net Cash balance of $11.1
million at June 30, 2021
- In the quarter, the Company declared
and paid a dividend of $0.02 per share
- Increasing 2021 annual guidance to
approximately $350 million in Revenue while maintaining guidance
for $33 million in EBITDA
“In the quarter, our Trucking segment
experienced a softening in margins in the quarter following the
acquisition, however, we expect to continue realizing synergies as
the segment completes the integration of operations. We incurred
non–recurring expenses of $2.5 million in the quarter to
significantly upgrade digital infrastructure, fleet rebranding,
personnel restructuring and necessary rolling stock repairs
upgrading the fleet to Titanium's standards. Normalized for these
integration costs, trucking results would have exceeded
expectations. We expect to deliver operating synergies and realize
improved profitability through the second half of the year as we
leverage our scaled fleet and increased capacity.”
Mr. Daniel added, “Our strategic decision and
investment to date in three U.S. freight brokerage centers over the
last 27 months continues to deliver exceptionally strong growth. We
are exceptionally pleased with the results to date and remain on
track with our expansion plans to open two additional new centers
in 2021 for a total of five.
Looking ahead, we maintain a constructive
outlook for the balance of the year as economic conditions are
expected to continue to improve subject to the evolving response to
the ongoing COVID-19 pandemic. In this environment, we expect our
scale and technology focus to support continued growth of our
business and market share.”
Summary of Q2 2021 Financial Results
|
Q2 2021 |
Q2 2020 |
|
|
YTD 2021 |
YTD 2020 |
|
Consolidated Results |
|
|
|
|
|
|
|
Revenue |
$100.8M |
$37.9M |
165.6% |
|
$186.5M |
$82.3M |
126.7% |
Adjusted EBITDA(2) |
$7.5M |
$3.1M |
141.0% |
|
$14.7M |
$7.7M |
92.2% |
Adjusted EBITDA margin(1)(2) |
8.1% |
8.7% |
|
|
8.6% |
10.0% |
|
EBITDA |
$7.7M |
$5.3M |
45.7% |
|
$15.2M |
$9.9M |
54.8% |
EBITDA margin(1) |
8.4% |
14.7% |
|
|
8.9% |
12.8% |
|
Adjusted Net Income(2) |
$0.8M |
-$0.7M |
|
|
$1.7M |
-$0.1M |
|
Adjusted Net Income per share(2) |
$0.02 |
-$0.02 |
|
|
$0.04 |
$0.00 |
|
Net Income |
$0.9M |
$0.9M |
7.4% |
|
$2.1M |
$1.5M |
38.9% |
Net Income per share |
$0.02 |
$0.02 |
|
|
$0.05 |
$0.04 |
|
|
|
|
|
|
|
|
|
Truck Transportation |
|
|
|
|
|
|
|
Revenue |
$44.8M |
$24.4M |
83.8% |
|
$83.9M |
$51.9M |
61.5% |
Adjusted EBITDA(2) |
$3.7M |
$3.4M |
8.1% |
|
$7.6M |
$7.8M |
-3.5% |
Adjusted EBITDA margin(1)(2) |
9.2% |
14.7% |
|
|
10.0% |
16.1% |
|
EBITDA |
$3.9M |
$5.1M |
(24.2%) |
|
$8.1M |
$9.6M |
(15.6%) |
EBITDA margin(1) |
9.7% |
22.2% |
|
|
10.7% |
19.7% |
|
|
|
|
|
|
|
|
|
Logistics |
|
|
|
|
|
|
|
Revenue |
$57.7M |
$14.7M |
294.2% |
|
$105.3M |
$32.6M |
222.7% |
Adjusted EBITDA(2) |
$4.7M |
$0.2M |
3,035.7% |
|
$8.7M |
$0.7M |
1,135.2% |
Adjusted EBITDA margin(1)(2) |
8.7% |
4.4% |
|
|
8.8% |
2.3% |
|
EBITDA |
$4.7M |
$0.6M |
673.6% |
|
$8.7M |
$1.2M |
647.7% |
EBITDA margin(1) |
8.7% |
4.4% |
|
|
8.8% |
3.8% |
|
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 $0.2 million (2020- $2.2 million) on a
consolidated basis. Truck Transportation segment received all of
the assistance in 2021 ($1.72 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 its second quarterly
dividend in June 2021 at $0.02 per common share.
Conference Call
The Company will also hold a conference call on
Wednesday, August 11, 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 August 25, 2021 by dialing 1-800-585-8367 (North
America) or 1-416-621-4642 (International) and entering the
Conference ID: 4479636.
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, CAChief
Executive Officer(905) 266-3011ted.daniel@ttgi.comwww.ttgi.com
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