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BOLTON, Ontario, Aug. 13, 2019 (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 June 30, 2019. All amounts are in Canadian currency.
Q2 2019 Highlights
“Despite a more challenged operating environment, we remained profitable in the second quarter of 2019 and continued to build long-term shareholder value,” said Ted Daniel, President and Chief Executive Officer. “Significant overcapacity and lower spot rates in the marketplace have improved the landscape for opportunistic and accretive M&A,” added Mr. Daniel. “Our strong balance sheet will not only allow us to weather the cyclicality in the transportation and logistics industry, but allows us to capitalize on opportunities as they arise.”
Summary of Financial Results
|Q2 2019||Q2 2018||% Change||YTD 2019||YTD 2018||% Change|
|Net Income per share||0.01||0.06||0.03||0.09|
1) EBITDA margin is calculated as EBITDA as a percentage of revenue before fuel surcharge.
Q2 2019 Summary
Due to softer market conditions, the Truck Transportation segment and Logistics segment experienced negative year-over-year growth in comparison to elevated levels in the first half of 2018.
Notwithstanding a more challenged operating environment, Titanium reported its second strongest consolidated Q2 revenue in its history. This compares to the second quarter and full year 2018 when the Company reported record revenues.
On a consolidated basis, total revenue was $42.0 million for the three months ended June 30, 2019, an 18.9% decrease from the three months ended June 30, 2018. EBITDA for Q2 2019 was $4.9 million, reflecting a 31.9% decrease in comparison to Q2 2018. Operating Income was $1.4 million in the second quarter of 2019, representing a 61.3% decrease over the comparable period in 2018.
As previously announced, part of the Company's continuing growth strategy is the expansion of Titanium’s participation in the U.S. freight logistics industry. During the quarter, a new brokerage location in Charlotte, NC began operations in May 2019 and has already exceeded internal revenue projections. This office has formally become the Company’s U.S. headquarters and, as such, serves as the hub for our expansion into the U.S. brokerage and logistic industry.
Overall, Titanium continues to sustainably invest in its people and technology to deliver best‑in‑class service to our customers. Given the Company’s strategic growth priorities, its aim is to capitalize on the current challenging North American transportation and logistics industry through disciplined organic volume growth and accretive acquisitions.
The continuation of excess capacity in the marketplace has, in management’s view, improved the opportunities for accretive add-on acquisitions in select market segments.
Share Repurchase Program
On May 17, 2019, the Company began a normal course issuer bid to purchase up to 1,839,267 of its common shares (the "NCIB"), representing 5% of its issued and outstanding common shares. The NCIB will terminate on May 16, 2020, or on an earlier date in the event that the maximum number of common shares sought in the NCIB have been repurchased. Purchases pursuant to the NCIB are expected to be made through the facilities of the TSX Venture Exchange (the "TSXV"), or such other permitted means, including through alternative trading systems in Canada, at prevailing market prices or as otherwise permitted by the policies of the TSXV.
During the six months ended June 30, 2019, the Company repurchased 248,200 common shares at a weighted average purchase price of $1.29 and a total purchase price of $319,360.
The Company will also hold a conference call on Wednesday, August 14, 2019, 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 August 28, 2019 by dialing 1-800-585-8367 (North America) or 1-416-621-4642 (International) and entering the Conference ID: 6754546.
About Titanium Transportation Group
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 ten (10) 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.
"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.
Titanium Transportation Group Inc.
Ted Daniel, CPA, CA
Chief Executive Officer