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 nine month periods ended
September 30, 2021. All amounts are in Canadian currency.
Titanium recorded record consolidated revenue
for the fifth consecutive quarter, reaching $101.7 million in third
quarter 2021 reflecting the company’s recent strategic investments
in growth opportunities and focused execution in both its Truck
Transportation and Logistics segments. Year-to-date, the Company
has achieved record revenue of $288.1 million and is on track to
exceed its previous annual revenue guidance of approximately $350
million.
Q3 2021 Financial Highlights compared
with Q3 2020:
- Record
consolidated revenue of $101.7 million -- an increase of 93.2%
- Adjusted
EBITDA(2) of $7.2 million -- an increase of 7.8% -- and adjusted
EBITDA Margin(2) of 7.8%
- Logistics
segment revenue of $59.4 million -- an increase of 128.7% --
including a 208.1% increase in US freight brokerage revenue to
$42.0 million
- Logistics
segment EBITDA of $3.4 million and an EBITDA Margin of 6.1%
- Truck
Transportation segment revenue of $42.8 million – an increase of
55.7%
- Adjusted Truck
Transportation segment EBITDA(2) $4.6 million – a decrease of
10.2%-- and an adjusted EBITDA Margin of 12.2%.
- Strong Net Cash
balance of $6.9 million as at September 30, 2021
- In the quarter,
the Company declared and paid a dividend of $0.02 per share
“Our third quarter 2021 results, which delivered
record top line revenue growth and sustained profitability, are a
testament to Titanium’s business strengths, including our ability
to successfully execute and integrate a transformative acquisition
and enter new US markets during a period of economic uncertainty,”
said Ted Daniel, Chief Executive Officer, Titanium Transportation
Group.
“The integration of the ITS Group, which was
acquired in the first quarter of 2021, has gone according to our
plan and despite a softening of margins in the trucking segment,
profitability is expected to improve as we target further
operational efficiencies in the coming quarters and market
conditions improve. The Logistics segment saw some normalization of
margins in the quarter,” said Daniel. “We continue to adjust to
challenging operating conditions that impacted margins in both
business segments, including significant supply chain constraints,
substantial inflationary pressure and tighter labour markets.”
“Looking ahead, and despite a somewhat uncertain economic
environment, we remain focused on profitability and strategic
execution of growth initiatives, both organically and through
acquisitions, including expanding our U.S. Logistics operations to
a fifth market.”
Titanium remains well positioned to achieve sustainable,
profitable growth with a flexible, technology-based platform,
driven by a dedicated team of professionals with a demonstrated
track record of delivering for our customers through challenging
conditions,” said Daniel.
Summary of Q3 2021 Financial Results
|
Q3 2021 |
Q3 2020 |
|
|
YTD 2021 |
YTD 2020 |
|
Consolidated Results |
|
|
|
|
|
|
|
Revenue |
$101.7M |
$52.6M |
93.2% |
|
$288.2M |
$134.9M |
113.6% |
Adjusted EBITDA(2) |
$7.2M |
$5.5M |
31.3% |
|
$22.0M |
$13.2M |
66.6% |
Adjusted EBITDA margin(1)(2) |
7.8% |
11.1% |
|
|
8.3% |
10.4% |
|
EBITDA |
$7.2M |
$6.7M |
7.8% |
|
$22.5M |
$16.6M |
35.7% |
EBITDA margin(1) |
7.8% |
13.5% |
|
|
8.5% |
13.1% |
|
Adjusted Net Income(2) |
$1.4M |
1.8M |
|
|
$3.1M |
1.7M |
|
Adjusted Net Income per share(2) |
$0.03 |
$0.05 |
|
|
$0.07 |
$0.05 |
|
Net Income |
$1.4M |
$2.7M |
(49.0%) |
|
$3.5M |
$4.2M |
(17.0%) |
Net Income per share |
$0.03 |
$0.07 |
|
|
$0.08 |
$0.11 |
|
|
|
|
|
|
|
|
|
Truck Transportation |
|
|
|
|
|
|
|
Revenue |
$42.8M |
$27.5M |
55.7% |
|
$126.7M |
$79.4M |
59.5% |
Adjusted EBITDA(2) |
$4.6M |
$4.5M |
1.7% |
|
$12.2M |
$12.4M |
(1.7%) |
Adjusted EBITDA margin(1)(2) |
12.2% |
17.5% |
|
|
10.7% |
16.6% |
|
EBITDA |
$4.6M |
$5.1M |
(10.2%) |
|
$12.7M |
$14.7M |
(13.7%) |
EBITDA margin(1) |
12.2% |
19.8% |
|
|
11.2% |
19.7% |
|
|
|
|
|
|
|
|
|
Logistics |
|
|
|
|
|
|
|
Revenue |
$59.4M |
$26.0M |
128.7% |
|
$164.7M |
$58.6M |
181.0% |
Adjusted EBITDA(2) |
$3.4M |
$1.4M |
146.7% |
|
$12.1M |
$2.1M |
479.6% |
Adjusted EBITDA margin(1)(2) |
6.1% |
5.8% |
|
|
7.8% |
3.8% |
|
EBITDA |
$3.4M |
$2.0M |
72.2% |
|
$12.1M |
$3.2M |
284.8% |
EBITDA margin(1) |
6.1% |
8.1% |
|
|
7.8% |
5.7% |
|
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
$0.5 million (2020- $3.4 million) on a consolidated basis. Truck
Transportation segment received all of the assistance in 2021 ($2.3
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 a quarterly dividend in
August 2021 at $0.02 per common share.
Conference Call
The Company will also hold a conference call on
Wednesday, November 10, 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 November 24, 2021 by dialing 1-800-585-8367
(North America) or 1-416-621-4642 (International) and entering the
Conference ID: 7194883 .
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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