Titanium Transportation Group Inc. ("Titanium" or the "Company")
(TSX:TTNM, OTCQX:TTNMF), is pleased to report its
financial results for the three and six-month period ended June 30,
2023. All amounts are in Canadian currency.
Q2 2023 Financial Highlights compared
with Q2 2022
- Consolidated
revenue of $100.4 million, compared to $136.2 million in Q2
2022
- Consolidated
EBITDA1 of $12.0 million, compared to $16.3 million in Q2 2022
- Consolidated
EBITDA Margin1 of 13.6%, compared to 14.0% in Q2 2022
- Fully diluted
net income per share of $0.07, compared to Fully diluted net income
per share of $0.17 in Q2 2022.
Ted Daniel, Chief Executive Officer,
Titanium Transportation Group commented, “Despite the
ongoing economic uncertainty, we are pleased to report yet another
profitable quarter, highlighted by $3.4 million in net income and
continued growth within our trucking segment. This continued growth
amid challenging conditions is a testament to the resilience of the
Titanium business model, our excellent team and focus on strategic
investments in technology and accretive acquisitions.”
Q2 YTD 2023 Financial Highlights
compared with Q2 YTD 2022
- Consolidated
revenue of $206.7 million, compared to $272.2 million in Q2
2022
- EBITDA of $24.6
million, compared to $30.3 million and EBITDA Margin1 of 13.7%, an
increase compared to 12.7%
- Logistics
segment revenue of $108.9 million. EBITDA of $8.7 million and
EBITDA Margin of 9.0%
- Truck
Transportation segment revenue of $100.8 million. EBITDA of $17.7
million with an increased EBITDA Margin of 20.7%, compared to 14.7
million and 16.2% in the prior period
- Total net income
per share of $0.15, fully diluted, compared with total net income
per share of $0.30 in Q2 2022
Developments subsequent to Q2
2023
Announced the acquisition of Crane Transport
expanding Titanium’s North American footprint through the addition
of approximately 200 U.S.-based trucks, two strategically located
terminals in Georgia and Alabama, and approximately US$60 million
in top line annual revenue.
Expanded its U.S. based freight-brokerage
operations with the opening of its seventh U.S. office in
Jacksonville, Florida.
Mr. Daniel added, “The
acquisition of Crane Transport marks the largest acquisition in our
Company’s history and Titanium’s third in the last three years.
With approximately 200 trucks in its fleet generating about US$60
million annually in revenue, this strategic transaction will allow
us to expand our reach into the U.S. asset-based market and
complement our existing freight brokerage services. Our ability to
close this large-scale acquisition amidst the current economic
environment without raising any capital is another clear example of
Titanium’s vigilant capital deployment strategy.”
Summary of Q2 2023 Financial
Results (in thousands $CAD)
|
Q2 2023 |
Q2 2022 |
% Change |
|
YTD 2023 |
YTD 2022 |
% Change |
Consolidated Results |
|
|
|
|
|
|
|
Revenue |
100,379 |
|
136,183 |
|
(26.3%) |
|
|
206,701 |
|
272,170 |
|
(24.1%) |
|
EBITDA1 |
12,025 |
|
16,335 |
|
(26.4%) |
|
|
24,602 |
|
30,252 |
|
(18.7%) |
|
EBITDA margin1 |
13.6% |
|
14.0% |
|
|
|
13.7% |
|
12.7% |
|
|
Net Income |
3,370 |
|
7,577 |
|
(55.5%) |
|
|
6,957 |
|
13,545 |
|
(48.6%) |
|
Net Income per share |
0.07 |
|
0.17 |
|
|
|
0.15 |
|
0.30 |
|
|
|
|
|
|
|
|
|
|
Truck Transportation |
|
|
|
|
|
|
|
Revenue |
49,270 |
|
58,615 |
|
(15.9%) |
|
|
100,831 |
|
107,955 |
|
(6.6%) |
|
EBITDA1 |
8,998 |
|
8,969 |
|
0.3% |
|
|
17,679 |
|
14,664 |
|
20.6% |
|
EBITDA margin1 |
21.1% |
|
18.8% |
|
|
|
20.7% |
|
16.2% |
|
|
|
|
|
|
|
|
|
|
Logistics |
|
|
|
|
|
|
|
Revenue |
52,669 |
|
78,624 |
|
(33.0%) |
|
|
108,918 |
|
166,541 |
|
(34.6%) |
|
EBITDA1 |
4,116 |
|
8,424 |
|
(51.1%) |
|
|
8,720 |
|
17,577 |
|
(50.4%) |
|
EBITDA margin1 |
8.7% |
|
12.0% |
|
|
|
9.0% |
|
11.7% |
|
|
2023 Outlook
“For the remainder of 2023, it is likely that
the North American economy will continue to be impacted by
below-trend demand and elevated inventory levels. Despite these
challenges, Titanium will remain focused on servicing our
customers, investing in our technology and people, while
effectively managing costs and driving profitability. The closing
of our recent acquisition will unlock future logistics growth. We
are well positioned to capitalize on opportunistic growth when the
cycle turns,” added Mr. Daniel.
2023 Guidance
As recently announced, Titanium’s updated
guidance for 2023, assumes no change in the current economic
environment and excludes the impact of any future acquisitions.
- Consolidated Revenue: $450 to $470
million
- Adjusted EBITDA Margin: 10.5% to
12.5%
Conference Call
The Company will also hold a conference call for
analysts and investors with Ted Daniel, President and Chief
Executive Officer on Tuesday, August 15, 2023 at 8:00 a.m. Eastern
Time, to discuss these results.
Details of the conference
call:
Date: Tuesday, August 15,
2023Time: 8:00 a.m. ETNorth America
dial-in number: 1-888-886-7786International
dial-in number: 1-416-764-8658
A replay of the conference call can be accessed
until midnight on August 29, 2023.
Details of the replay:
North America dial-in number: 1-877-674-7070International
dial-in number: 1-416-764-8692Conference ID: 45469766Passcode:
469766#
For more details, or visit Titanium’s investor relations website
at https://www.ttgi.com/investors
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.
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 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 Investors James Bowen,
CFA416-519-9442James.Bowen@loderockadvisors.com
________________________1 Refer to "Non-IFRS Financial
Measures"
Titanium Transportation (TSX:TTNM)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Titanium Transportation (TSX:TTNM)
Historical Stock Chart
Von Mai 2023 bis Mai 2024