Titanium recorded record consolidated revenue for the fifth consecutive quarter, reaching
Q3 2021 Financial Highlights compared with Q3 2020:
- Record consolidated revenue of
$101.7 million -- an increase of 93.2% - Adjusted EBITDA(2) of
$7.2 million -- an increase of 7.8% -- and adjusted EBITDA Margin(2) of 7.8% - Logistics segment revenue of
$59.4 million -- an increase of 128.7% -- including a 208.1% increase in US freight brokerage revenue to$42.0 million - Logistics segment EBITDA of
$3.4 million and an EBITDA Margin of 6.1% - Truck Transportation segment revenue of
$42.8 million – an increase of 55.7% - Adjusted Truck Transportation segment EBITDA(2)
$4.6 million – a decrease of 10.2%-- and an adjusted EBITDA Margin of 12.2%. - Strong
Net Cash balance of$6.9 million as atSeptember 30, 2021 - In the quarter, the Company declared and paid a dividend of
$0.02 per share
“Our third quarter 2021 results, which delivered record top line revenue growth and sustained profitability, are a testament to Titanium’s business strengths, including our ability to successfully execute and integrate a transformative acquisition and enter new US markets during a period of economic uncertainty,” said
“The integration of the ITS Group, which was acquired in the first quarter of 2021, has gone according to our plan and despite a softening of margins in the trucking segment, profitability is expected to improve as we target further operational efficiencies in the coming quarters and market conditions improve. The Logistics segment saw some normalization of margins in the quarter,” said Daniel. “We continue to adjust to challenging operating conditions that impacted margins in both business segments, including significant supply chain constraints, substantial inflationary pressure and tighter labour markets.”
“Looking ahead, and despite a somewhat uncertain economic environment, we remain focused on profitability and strategic execution of growth initiatives, both organically and through acquisitions, including expanding our
Titanium remains well positioned to achieve sustainable, profitable growth with a flexible, technology-based platform, driven by a dedicated team of professionals with a demonstrated track record of delivering for our customers through challenging conditions,” said Daniel.
Summary of Q3 2021 Financial Results
Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | ||||
Consolidated Results | |||||||
Revenue | 93.2% | 113.6% | |||||
Adjusted EBITDA(2) | 31.3% | 66.6% | |||||
Adjusted EBITDA margin(1)(2) | 7.8% | 11.1% | 8.3% | 10.4% | |||
EBITDA | 7.8% | 35.7% | |||||
EBITDA margin(1) | 7.8% | 13.5% | 8.5% | 13.1% | |||
Adjusted Net Income(2) | 1.8M | 1.7M | |||||
Adjusted Net Income per share(2) | |||||||
Net Income | (49.0%) | (17.0%) | |||||
Net Income per share | |||||||
Truck Transportation | |||||||
Revenue | 55.7% | 59.5% | |||||
Adjusted EBITDA(2) | 1.7% | (1.7%) | |||||
Adjusted EBITDA margin(1)(2) | 12.2% | 17.5% | 10.7% | 16.6% | |||
EBITDA | (10.2%) | (13.7%) | |||||
EBITDA margin(1) | 12.2% | 19.8% | 11.2% | 19.7% | |||
Logistics | |||||||
Revenue | 128.7% | 181.0% | |||||
Adjusted EBITDA(2) | 146.7% | 479.6% | |||||
Adjusted EBITDA margin(1)(2) | 6.1% | 5.8% | 7.8% | 3.8% | |||
EBITDA | 72.2% | 284.8% | |||||
EBITDA margin(1) | 6.1% | 8.1% | 7.8% | 5.7% |
1) EBITDA margin is calculated as EBITDA as a percentage of revenue before fuel surcharge.
2) Adjusts for the subsidies received under the Canadian Emergency Wage Subsidy program, which equated to
Shareholder Return and Capital Allocation Program
The Company continues to focus on growth organically and through acquisition. The Company also focuses on prudently balancing internal capital needs while rewarding shareholders through a predictable return on investment. With the strength of the Company’s balance sheet and management’s confidence in the earnings outlook, Titanium declared a quarterly dividend in
Conference Call
The Company will also hold a conference call on
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About Titanium
Titanium is a leading asset-based transportation and logistics company servicing
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-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
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com
www.ttgi.com
Source:
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