BOLTON, ONTARIO–(Marketwired – Aug. 9, 2017) – Titanium Transportation Group Inc. (“Titanium” or the “Company”) (TSX VENTURE:TTR), a leading provider of transportation and logistics services throughout North America, today reported its financial results for the three and six-month periods ended June 30, 2017. All amounts are in Canadian currency.
Q2 Financial and Operational Highlights
- Revenue was $32.8 million, up 9%
- EBITDA was $3.4 million, up 7%
- Implemented a share purchase plan for employees and truck owner operators
- Improved fuel efficiency and reduced repair costs through investments in new equipment
- Strengthened the company’s balance sheet by reducing net debt by $4.1 million
CEO Commentary
“Our record results in Q2 were largely driven by the multi-pronged strategy we implemented over the past two years to grow via acquisitions, introduce efficiencies to our operations through new systems and processes and grow our sales force to capture market share, particularly within our Logistics segment,” said Ted Daniel, CEO of Titanium Transportation Group. “We expect to build on this momentum through the balance of 2017 and beyond as we take advantage of organic growth and acquisition opportunities.”
Segment Highlights
- Truck Transportation segment revenue was $21.6 million, up 1%
- Truck Transportation EBITDA was $3.2 million, down 2%
- Truck Transportation segment EBITDA margin was 15.9%, down from 16.3%
- Logistics segment revenue was $11.5 million, up 29%
- Logistics segment EBITDA was $0.6 million, up 53%
- Logistics segment EBITDA margin was 5.7%, up from 4.8%
Summary of Consolidated Financial Results
| Q2 2017 |
Q2 2016 |
% Change |
YTD 2017 |
YTD 2016 |
% Change |
||||||
| Revenue | $32.8M | $30.0M | +9% | $62.6M | $58.1M | +8% | |||||
| EBITDA | $3.4M | $3.2M | +7% | $6.3M | $5.6M | +11% | |||||
| EBITDA margin | 10.9% | 11.2% | 10.7% | 10.3% | |||||||
| Net income | $0.3M | ($0.1M) | $0.4M | ($0.3M) | |||||||
| Net income per share – basic | $0.01 | $0.00 | $0.01 | ($0.01) |
Outlook
“We are very bullish about our long-term prospects and outlook,” added Mr. Daniel. “Given our recent progress, we have increased our post-synergy revenue run rate to $125 million and reiterate our EBITDA expectations for the next twelve months at $13 million. Our run rates do not take into account expected organic growth and we remain very committed to our acquisition strategy with access to $36 million of undrawn credit facilities.”
This press release should be read in conjunction with the Company’s management discussion and analysis dated August 9, 2017 (“Q2 MD&A”), audited consolidated financial statements and accompanying notes as at and for the year ended December 31, 2016 as well as the unaudited condensed consolidated interim financial statements of the Company for the second quarter ended June 30, 2017, which can be found on SEDAR at www.sedar.com. Additional information is also available on SEDAR.
Conference Call
The Company will also hold a conference call for analysts and investors on Thursday, August 10, 2017, at 8:00 a.m. Eastern Time, to discuss these results. Business media are also invited to listen to the call. Interested parties can join the call by dialing 1-866-393-4306 (North America) or 1-617-826-1698 (International). A recording of the call will be available until midnight, August 24, 2017 by dialing 1-855-859-2056 (North America) or 1-404-537-3406 (International) and entering Conference ID 58759898.
About Titanium
Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 400 power units, 1,300 trailers and 500 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. Titanium is a recognized consolidator of asset-based transportation companies in Ontario, having completed eight asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada’s Fastest Growing Companies for eight 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 and reverse takeover costs.
“EBITDA margin” is calculated as EBITDA as a percentage of revenue before fuel surcharge.
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. For greater certainty and notwithstanding the foregoing, annualized run rate total revenue and EBITDA are not presented herein as forward-looking statements. These annualized figures are based solely on historical data and are included to allow readers to understand the current size of the Company, and should not in any circumstance be construed as projections or forecasts of the Company’s future performance.
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 TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Kasia Malz, CPA, CA
Chief Financial Officer
(905) 266-3036
investors@ttgi.com
www.ttgi.com