Titanium Transportation Group Announces 2017 Fourth Quarter and Full-Year Financial Results

BOLTON, Ontario, March 06, 2018 (GLOBE NEWSWIRE) -- Titanium Transportation Group Inc. ("Titanium" or the "Company") (TSX-V:TTR), a leading provider of transportation and logistics services throughout North America, today reported its financial results for the three month period and year ended December 31, 2017. All amounts are in Canadian currency.

Q4 2017 Highlights

  • Total revenue increased 24% to $35.4 million
  • EBITDA increased 14% to $3.5 million
  • Successfully completed acquisition of Xpress Group, a Windsor based carrier
  • Reached a favorable settlement against the vendor of ProNorth Transportation, which reduced original total consideration issued on the acquisition of ProNorth Transportation by $3.4 million; the value of this settlement largely offset non-cash write downs recognized during the quarter, totaling $3.5 million.

Full Year 2017 Highlights

  • Total revenue increased 11% to $129.6 million
  • EBITDA increased 6% to $12.6 million
  • Adjusted net income of $0.4 million and adjusted net income per share of $0.01
  • Repaid an additional $1.0 million in debt, in excess of contractual requirements

CEO Commentary

“We performed well on many measures with improving volumes in the fourth quarter. We made significant progress on operational and technology initiatives and delivered strong Revenue and EBITDA growth,” said Ted Daniel, Chief Executive Officer of Titanium Transportation Group. “In recent months we have seen improving industry dynamics reflecting tightening capacity and an increasing rate environment. Our continued investment in people and technology, along with a focus on driving increased organic growth, positions us well to respond to and benefit from a strengthening environment. ”

“With our infrastructure firmly in place to take advantage of improving market conditions, we are increasing our revenue and EBITDA run rate to $155 million and $16 million respectively. Looking ahead, we expect market conditions to support stronger organic growth in 2018 enhanced by acquisitions should the right opportunities present themselves.”

Mr. Daniel added, “We are committed to creating value through organic growth as well as acquisitions. However, we are sharply focused on disciplined capital allocation to ensure we are generating the highest long-term shareholder return.”

Summary of Consolidated Financial Results

Q4
2017
Q4
2016
% Change20172016% Change
Revenue$35.4M$28.6M+24%$129.6M$116.6M+11%
EBITDA$3.5M$3.1M+14%$12.6M$11.9M+6%
EBITDA margin10.5%11.3% 10.3%10.8%
Adjusted net income(1)$0.0M$0.1M $0.4M($0.1M)
Adjusted net income per share(1)$0.00$0.00 $0.01($0.00)

  1. Adjusted net income and adjusted net income per share exclude the ProNorth Transportation settlement agreement and non-cash write downs

Q4 2017 Truck Transportation Segment Highlights

  • Total revenue increased 20% to $24.1 million
  • EBITDA increased 1% to $3.1 million
  • EBITDA margin was 13.7%, a decline from 16.0% in Q4 2016

Q4 2017 Logistics Segment Highlights

  • Total revenue increased 35% to $11.8 million
  • EBITDA increased 82% to $0.9 million
  • EBITDA margin increased to 7.9%, from 5.8% in Q4 2016

Conference Call
The Company will also hold a conference call for analysts and investors on Wednesday, March7, 2018, at 8:00 a.m. Eastern Time, to discuss fourth quarter financial results. Business media are 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, March21, 2018 by dialing 1-855-859-2056 (North America) or 1-404-537-3406 (International) and entering Conference ID1796749.

About Titanium Transportation Group
Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 450 power units, 1,500 trailers and 550 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 nine 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, goodwill impairment and reverse takeover costs.

"EBITDA margin" is calculated as EBITDA as a percentage of revenue before fuel surcharge.

"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, goodwill impairment and reverse takeover costs, net of tax.

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 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.
Kasia Malz, CPA, CA
Chief Financial Officer
(905) 266-3036
investors@ttgi.com
www.ttgi.com

Source:Titanium Transportation Group Inc