Despite Industry-Wide Challenges, Titanium Transportation Group Reports Solid Q1 2024 Financial Results Driven by Growth in Trucking Segment

• First quarter consolidated revenue improved 8.3% year-over-year, to $115 million
• Truck Transportation segment delivered 15.5% revenue growth over Q1 2023, fueled by contribution from asset-based expansion in the United States
• After quarter-end, the Company strengthened its balance sheet through the sale of non-core, unused land assets for gross proceeds of $4.5 million

BOLTON, Ontario, May 13, 2024 (GLOBE NEWSWIRE) — Titanium Transportation Group Inc. (“Titanium” or the “Company”) (TSX:TTNM, OTCQX:TTNMF), a leading provider of transportation and logistics services throughout North America, is pleased to report its financial results for the three-month period ended March 31, 2024. All amounts are in Canadian currency.

Q1 2024 Financial Highlights Compared with Q1 2023

• Consolidated revenue of $115 million, compared to $106 million in Q1 2023
• Consolidated EBITDA¹ of $9.5 million, compared to $12.6 million in Q1 2023, with consolidated EBITDA Margin¹ of 9.3%
• Truck Transportation segment revenue of $59.6 million, up 15.5% compared to $51.6 million in Q1 2023
• Logistics segment revenue of $56.2 million, flat compared to $56.2 million in Q1 2023
• Fully diluted net income per share of $0.02, compared to fully diluted net income per share of $0.08 in Q1 2023

Q1 2024 Operational Highlights

• During the quarter, the Company entered into an agreement to sell its non-core, undeveloped land assets, totalling approximately 21 acres, in Cornwall, ON for gross proceeds of $4.5 million in cash, which will be used to pay down debt. The sale was completed after the quarter end.

Ted Daniel, Chief Executive Officer, Titanium Transportation Group, commented: “Titanium had a strong start to 2024, delivering another profitable quarter, propelled by our first-ever US asset acquisition (Crane Transportation), strong performance of our Truck Transportation segment overall, and our prudent capital management strategy — despite persistent industry-wide challenges. However, ongoing pricing pressures led to margin compression and reduced profitability during the quarter. Looking ahead in 2024, we remain focused on diversifying our customer base, leveraging the strength of our US-based footprint, utilizing proprietary technology to strategically allocate capacity, and continuing to deliver profitable growth.”

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¹ Refer to “Non-IFRS Financial Measures

2024 Outlook

“The freight recession weighing on the transportation industry for the past year, continued in the first quarter of 2024. Navigating through this environment has been challenging, but we believe it’s a necessary catalyst to drive excess capacity out of the market and restore more normalized pricing. We anticipate improving market conditions by the end of the year,” said Mr. Daniel. “We have the right management team in place to execute on our growth plan and take advantage of end-market weakness. We are prioritizing factors under our control, such as driving margins in our asset-based US business, managing costs and utilizing proprietary tools for better utilization.

“With a refreshed fleet and reduced need for CAPEX, we expect to generate substantial free cash flow over the next 24 months. We will allocate this cash flow to debt reduction, dividend distributions and opportunistic stock buybacks through our normal course issuer bid. Our focus remains on scaling for future growth and generating long-term value for shareholders,” Mr. Daniel concluded.

2024 Guidance

Titanium’s guidance for 2024, assumes no change in the management’s outlook of economic environment and excludes the impact of any future acquisitions.

• Consolidated Revenue: $470 to $490 million
• Adjusted EBITDA Margin: 10.0% to 12.0%

Conference Call

The Company will also hold a conference call for analysts and investors with Ted Daniel, President and Chief Executive Officer, Tuesday, May 14, 2024, at 8:00 a.m. Eastern Time, to discuss these results.

Details of the conference call:

Date: Tuesday, May 14, 2024
Time: 8:00 a.m. ET
North America dial-in number: 1-888-886-7786
International dial-in number: 1-416-764-8658

A replay of the conference call can be accessed until midnight on May 28, 2024.

Details of the replay:
North America dial-in number: 1-877-674-7070
International dial-in number: 1-416-764-8692
Conference ID: 87870499
Passcode: 870499#

For more details, visit Titanium’s investor relations website at https://www.ttgi.com/investors

About Titanium

Titanium is a leading North American transportation company with asset-based trucking operations and logistics brokerages servicing Canada and the United States, with approximately 900 power units, 3,000 trailers and 1,300 employees and independent owner operators. Titanium provides truckload, dedicated, and cross-border trucking services, logistics, and warehousing and distribution to over 1,000 customers. Titanium has established both asset-based and brokerage operations in Canada and the U.S. with eighteen (18) locations. Titanium is a recognized purchaser of asset-based trucking companies, having completed thirteen (13) transactions since 2011. Titanium ranked among top 500 companies in the inaugural Financial Times Americas’ Fastest Growing Companies in 2020. The Company was ranked by Canadian Business as one of Canada’s Fastest Growing Companies for eleven (11) consecutive years. For three (3) consecutive years, Titanium has also been ranked one of Canada’s Top Growing Companies by the Globe and Mail’s Report on Business of Canada. Titanium is listed on the Toronto Stock Exchange under the symbol “TTNM” and “TTNMF” on the OTCQX.

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.

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 nor its Regulation Services Provider (as that term is defined in the policies of the TSX) 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 Investors
James Bowen
416-519-9442
James.Bowen@loderockadvisors.com