Titanium Transportation Group Inc. ("Titanium" or the "Company")
(TSX:TTNM, OTCQX:TTNMF), a leading provider of transportation and
logistics services throughout North America, is pleased to report
its financial results for the three-month and fiscal year ended
December 31, 2023. All amounts are in Canadian currency.
Ted Daniel, Chief Executive Officer,
Titanium Transportation Group, commented, “In 2023, the
freight transportation industry faced a challenging market
including excess capacity, downward pressure on pricing and
escalating operating costs. Despite these headwinds, Titanium
delivered sustainable and profitable growth. In fact, 2023 was the
second-best year in company history; we generated $10.2 million in
net income, paid $3.6 million in dividends, while buying back $2.6
million in stock. Complementing our focus on profitability, cash
management and consequently a strengthening balance sheet, we were
able to utilize $39.9 million in cash for our first US asset-based
acquisition – Crane Transport. This significantly augments our
opportunities to continue our US expansion strategy and drive
growth. We expect overall growth to be a combination of organic
growth in our brokerage business and opportunistic acquisitions of
new asset-based entities.”
“We enter 2024 from a position of strength as
our recent strategic acquisition of Crane positions us to drive
growth in our US-based logistics business,” said Mr.
Daniel. “Moreover, with a recently completed fleet refresh
we will have a reduced need for capital expenditures. We also
expect to generate substantial free cash flow over the next 24
months, to aggressively pay down our debt, distribute dividends to
shareholders and opportunistically buy back stock through our
normal course issuer bid.”
“Our continued focus remains on scaling for
future growth and generating long-term value for our shareholders,”
Mr. Daniel concluded.
Q4 2023 Financial Highlights compared
with Q4 2022
- Consolidated revenue of $119.3 million, a 7.6% increase over Q4
2022.
- EBITDA1 of $14.9 million, flat compared to $14.9 million in Q4
2022. EBITDA Margin1 of 14.2%, compared to 15.9%.
- Logistics segment revenue of $52.0 million, a 14.9% decrease
compared to Q4 2022. EBITDA1 of $4.7 million and EBITDA Margin1 of
9.9%, compared to $6.6 million and 12.2% in Q4 2022.
- Truck Transportation segment revenue of $67.8 million, a 32.1%
increase over Q4 2022. EBITDA1 of $11.1 million, an increase of
17.7% over Q4 2022, with an EBITDA Margin1 of 19.1%.
FY 2023 Financial Highlights compared
with FY 2022
- Consolidated revenue of $438.7 million, compared to $496.4
million in FY 2022.
- EBITDA1 of $52.9 million, compared to $60.7 million in 2022 and
EBITDA Margin1 of 13.8%, compared to 14.2%.
- Logistics segment revenue of $212.4 million, compared to $287.2
million in 2022. EBITDA1 of $17.9 million and EBITDA Margin1 of
9.4%, compared to $30.0 million and 11.7%.
- Truck Transportation segment revenue of $231.0 million, a 7.8%
increase over FY 2022. EBITDA1 of $38.9 million, an increase of
12.7% over 2022, with an EBITDA Margin1 of 19.7%.
- Total net income per share of $0.22, fully diluted, compared
with total net income per share of $0.55, fully diluted, in
2022.
Summary of Q4 2023 Financial Results (in
thousands $CAD)
|
Q4 2023 |
Q42022 |
% Change |
|
FY2023 |
FY2022 |
% Change |
Consolidated Results |
Revenue |
119,299 |
110,849 |
7.6% |
|
438,685 |
496,374 |
(11.6%) |
EBITDA1 |
14,877 |
14,912 |
(0.2%) |
|
52,935 |
60,688 |
(12.8%) |
EBITDA margin1 |
14.2% |
15.9% |
|
|
13.8% |
14.2% |
|
Net Income |
1398 |
4,800 |
(70.9%) |
|
10,229 |
24,882 |
(58.9%) |
Net Income per share |
0.03 |
0.11 |
|
|
0.23 |
0.55 |
|
Truck Transportation |
Revenue |
67,771 |
51,298 |
32.1% |
|
231,000 |
214,201 |
7.8% |
EBITDA1 |
11,061 |
9,399 |
17.7% |
|
38,861 |
34,495 |
12.7% |
EBITDA margin1 |
19.1% |
22.6% |
|
|
19.7% |
19.4% |
|
Logistics |
Revenue |
51,987 |
61,061 |
(14.9%) |
|
212,448 |
287,231 |
(26.0%) |
EBITDA1 |
4,669 |
6,588 |
(29.1%) |
|
17,860 |
29,968 |
(40.4%) |
EBITDA margin1 |
9.9% |
12.2% |
|
|
9.4% |
11.7% |
|
EBITDA to Net Income (in thousands
$CAD)
|
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Net
Income |
1,398 |
4,800 |
10,229 |
24,882 |
Add(deduct) |
|
|
|
|
Gain on sale of equipment |
(745) |
(1,038) |
(4,473) |
(6,876) |
Finance costs |
3,341 |
1,696 |
9,419 |
4,883 |
Finance income |
(106) |
(56) |
(518) |
(204) |
Foreign exchange |
(861) |
(321) |
125 |
1,570 |
Transaction costs |
- |
200 |
1,285 |
200 |
Income taxes |
1,953 |
1,338 |
4,257 |
8,707 |
Operating
Income |
4,980 |
6,619 |
20,324 |
33,162 |
Depreciation |
9,341 |
7,966 |
31,073 |
26,217 |
Amortization of intangible assets |
556 |
327 |
1,538 |
1,309 |
EBITDA |
14,877 |
14,912 |
52,935 |
60,688 |
|
|
|
|
|
Developments Subsequent to Q4
2023
-
On February 20, 2024, the Company declared a quarterly dividend of
$0.02 per common share, payable on March 15, 2024, to shareholders
of record at the close of business on February 29, 2024. The amount
of the dividend is consistent with the Company’s previous
dividend.
2024 Outlook
Ted Daniel, Chief Executive Officer,
Titanium Transportation Group, noted, “The headwinds
experienced by the transportation and logistics industry in 2023
have persisted in the first two months of 2024. Nonetheless, we
believe conditions will improve in the second half of 2024 and are
beginning to see signs of excess capacity exiting the market.
Notwithstanding end-market conditions, we remain optimistic that by
drawing on our proprietary systems, such as our Titanium
Fusion Portal, and experienced team, Titanium will continue to
execute on our growth plan and deliver profitable organic growth in
2024. We strongly believe a prudent capital management strategy
coupled with good governance is the backbone to current and
long-term sustainable growth.”
2024 Guidance
Titanium’s guidance for 2024, assumes no change
in the current economic environment and excludes the impact of any
future acquisitions.
- Consolidated Revenue: $490 to $510 million
- EBITDA Margin: 10.0% to 12.0%
Conference Call
The Company will also hold a conference call for
analysts and investors with Ted Daniel, President and Chief
Executive Officer on Tuesday, March 19, 2024, at 8:00 a.m. Eastern
Time, to discuss these results.
Details of the conference
call:
Date: Tuesday, March 19,
2024Time: 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 April 2, 2024.
Details of the replay:North America dial-in number:
1-877-674-7070International dial-in number:
1-416-764-8692Conference ID: 09112139Passcode: 112139#
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, and
warehousing and distribution to over 1,000 customers. In the U.S.,
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 three (3) 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
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.
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
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