BOLTON, Ontario, May 12, 2020 (GLOBE NEWSWIRE) -- 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 month period ended March 31, 2020. All amounts are in Canadian currency.
Q1 2020 Highlights
- Consolidated revenue for Q1 2020 was $44.3 million, representing the second highest first quarter revenue in the Company’s history. This compares to $39.0 million in Q1 2019.
- EBITDA was $4.5 million for Q1 2020, compared to $4.6 million in Q1 2019.
- Operating Income was $1.3 million for Q1 2020, in line with $1.3 million reported in Q1 2019.
- Truck Transportation segment revenue was $27.6 million and EBITDA was $4.4 million for Q1 2020, compared to $28.1 million and $4.4 million respectively for the same quarter in 2019. In Q1 2019, operating income was $1.4 million, a 10.4% increase from $1.2 million in Q1 2019.
- Logistics segment revenue was $18.0 million in Q1 2020, while EBITDA/operating income was $0.6 million. This compares to Q1 2019 revenue and EBITDA/operating income of $12.1 million and $0.6 million, respectively.
- Titanium continued to strengthen its financial position in the Q1 2020, lowering its net‑debt‑to‑equity ratio to 1.54, from 1.63 as at December 31, 2019.
- The Company maintains ample liquidity with cash and cash equivalents of approximately $2.0 million and $11.1 million of borrowing capacity.
- Free cash flow amounted to $3.8 million in Q1 2020, compared to $2.0 million reported in Q1 2019.
- Although deemed an essential service, the Company took decisive action in early March to right size its overall operating cost structure and temporarily halted discretionary capital spending in order to adapt to uncertain and challenging market conditions presented by COVID-19.
CEO Commentary
“Our results were excellent given the current economic backdrop. A heartfelt thank you to our team who stepped up to maintain uninterrupted service to our valued customers, many of whom are involved in essential supplies,” said Ted Daniel, Titanium’s President and Chief Executive Officer. “When COVID-19 began to affect our end markets, we at Titanium took swift action to ensure the safety and wellbeing of our workforce, our customers and our communities at large. We remain vigilant as we continue to service the essential supply chain.”
Daniel added, “Reflecting our disciplined capital approach, Titanium has ample liquidity to weather the economic situation. We generated positive free cash flow in the quarter and continued to repay debt. Our $11.1 million in borrowing power alongside our low levels of financial leverage position us to capitalize on growth opportunities when the economy normalizes,” added Mr. Daniel. “As such, we remain steadfast in our mission to deliver sustainable, profitable growth and create long-term shareholder value.”
COVID-19 Update
It is Titanium’s utmost priority to ensure the health and wellbeing of our people, our customers and the communities at large. We have and will continue to monitor closely all related information to ensure we continue to take all necessary precautionary actions to maintain uninterrupted services to our customers.
Summary of Financial Results
|
Q1 2020 |
Q1 2019 |
%
Change |
| Consolidated Results |
|
|
|
| Revenue |
$44.3M |
$39.0M |
13.6% |
| EBITDA |
$4.5M |
$4.6M |
-0.8% |
| EBITDA margin(1) |
11.1% |
12.7% |
|
| Net Income |
$0.6M |
$0.5M |
|
| Net Income per share |
0.02 |
0.01 |
|
|
|
|
|
| Truck Transportation |
|
|
|
| Revenue |
$27.6M |
$28.1M |
-1.6% |
| EBITDA |
$4.4M |
$4.4M |
0.4% |
| EBITDA margin(1) |
17.4% |
17.0% |
|
|
|
|
|
| Logistics |
|
|
|
| Revenue |
$18.0M |
$12.1M |
49.1% |
| EBITDA |
$0.6M |
$0.6M |
-3.0% |
| EBITDA margin(1) |
3.3% |
5.1% |
|
1) EBITDA margin is calculated as EBITDA as a percentage of revenue before fuel surcharge.
Liquidity
As at the quarter ended March 31, 2020, the Company had total cash of approximately $2.0 million in cash and cash equivalents and borrowing capacity of $11.1 million. In addition, the Company also has undrawn credit facilities of $13.6 million for capital expenditure and $12.5 million in acquisition-related facilities.
During the first quarter, we significantly reduced our net debt and further improved our net-debt-to-equity ratio to 1.54 as at March 31, 2020, from 1.63 on December 31, 2019.
Q1 2020 Summary
Despite the challenges that were presented by COVID-19, Titanium reported its second highest Q1 revenue in the Company’s history.
On a consolidated basis, Q1 2020 revenue was $44.3 million, representing a 13.6% increase compared to the three-month period ended March 31, 2019. EBITDA for the quarter was $4.5 million, a 0.8% decrease compared to Q1 2019. Operating income was $1.3 million, reflecting a 3.2% increase in comparison to the three-month period ended March 31, 2019.
Truck Transportation segment revenue for Q1 2020 was $27.6 million, reflecting a 1.6% decrease on a year-over-year basis. EBITDA for the segment was $4.4 million, representing a 0.4% increase in comparison to the prior year period. The decrease in revenues is primarily a result of pricing pressure due to softer market conditions.
Logistics segment revenue for Q1 2020 was $18.0 million, representing a 49.1% increase compared to Q1 2019. EBITDA for the segment was $0.6 million, a 3.0% decline year over year. The significant improvement in segmented revenue was primarily due to incremental revenue related to our U.S. freight brokerage expansion, which began operations in May 2019. The U.S. logistics business contributed $4.7 million for the three-month period ended March 31, 2020.
Conference Call
The Company will also hold a conference call on Wednesday, May 13, 2020, 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 1-877-291-4570 (North America) or 1-647-788-4919 (International). A replay of the conference call can be accessed until midnight on May 27, 2020 by dialing 1-800-585-8367 (North America) or 1-416-621-4642 (International) and entering the Conference ID: 2986435.
About Titanium
Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 475 power units, 1,400 trailers and 600 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 ten asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada's Fastest Growing Companies for eleven (11) 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 of property and equipment, less acquisition of property and equipment.
"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, CA
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com
www.ttgi.com
For Investor Relations
Jayson Moss, CFA
(604) 375-3599
investors@ttgi.com
www.ttgi.com
