Titanium Transportation Group Reports FY 2024 Financial Results Highlighted by 5% Revenue Growth

• Sustained revenue growth in Fiscal 2024, supported by a 11.6% year-over-year revenue growth in Trucking and a 10.6% increase in Logistics, reflecting the contribution of the strategic asset-based expansion into the U.S.
• Logistics segment demonstrated strong momentum in Q4 2024, delivering 25% volume growth year-over-year, translating to an 18.4% revenue increase over Fiscal 2023, despite ongoing market challenges.
• Continued to strengthen capital position by divesting non-core assets, generating $21 million in cash flow, which was used in combination with free cashflow to pay down $52.2 million of debt.
  

/EIN News/ -- BOLTON, Ontario, March 17, 2025 (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 and fiscal year ended December 31, 2024. All amounts are in Canadian currency.

Q4 2024 Financial and Business Highlights compared with Q4 2023

• Consolidated revenue of $113.8 million, compared to $112.8 million in Q4 2023
• Consolidated EBITDA¹ of $11.7 million, compared to $13.6 million in Q4 2023, up sequentially from $10.3 million in Q3 2024.
• Consolidated EBITDA Margin¹ of 11.6%, compared to 13.9% in Q4 2023, up sequentially from 9.8% in Q3 2024.
• Fully diluted adjusted net income per share from continuing operations of $0.01, compared to Fully diluted adjusted net income per share of $0.02 in Q4 2023.
• Scaled asset-light model in the U.S. freight brokerage market with the opening of logistics offices in Virginia Beach, VA and Irving, TX, bringing U.S. footprint to nine locations.
• Recognized in The Globe and Mail’s 2024 Report on Business of Canada’s Top Growing Companies for the fourth consecutive year.
• Due to ongoing freight recession and uncertainty over trade dispute, the Company recognized a non-cash impairment charge of $23.1 million.
  

FY 2024 Financial and Business Highlights compared with FY 2023

• Consolidated revenue of $460.2 million, compared to $413.7 million in FY 2023, an increase of 11.3%.
• EBITDA¹ of $41.9 million, compared to $48.1 million in 2023 and EBITDA Margin¹ of 10.3%, compared to 13.4%.
• Logistics segment revenue of $234.9 million, a 10.6% increase compared to $212.4 million in 2023. EBITDA¹ of $15.3 million and EBITDA Margin¹ of 7.2%, compared to $18.7 million and 9.8%.
• Truck Transportation segment revenue of $229.8 million, a 11.6% increase over FY 2023. EBITDA¹ of $31.1 million, with an EBITDA Margin¹ of 15.6%.
• Income of ($0.05) on a fully diluted basis from adjusted total net income per share from continuing operations, compared with total net income per share of $0.21, fully diluted, in 2023.
• Generated $27.1 million of cash flows from operating activities.
• Strengthen its capital position by divesting non-core assets and operations. Generated $21.0 million of cash flows from disposition of property and equipment.
• Paid down over $52.2 million in bank debt and acquisition loans.
• Returned $3.6 million to shareholders in dividends.

Ted Daniel, Chief Executive Officer, Titanium Transportation Group commented, “2024 was a year of disciplined execution as we navigated a prolonged downturn in the freight market while remaining focused on strengthening our balance sheet and positioning Titanium for long-term success. Despite market challenges, we delivered steady revenue growth of 5% year-over-year and continued to take proactive steps to optimize our capital allocation strategy.”

“As we enter 2025, the operating environment remains uncertain with impending tariffs and other ongoing market challenges. Titanium is well-positioned to navigate this uncertainty and capitalize on improving industry fundamentals. Our commitment to technological solutions positions Titanium to remain resilient and emerge stronger as the freight cycle turns. With scalable systems, a strengthened balance sheet, and continued expansion in the U.S., we remain committed to driving sustainable, profitable growth,” added Mr. Daniel.

Summary of Q4 and FY 2024 Financial Results (in thousands $CAD)

	Q4 2024		Q4 2023		% Change			FY 2024		FY 2023		% Change
Consolidated Results
Revenue	113,840		112,763		1.0%			460,246		413,694		11.3%
EBITDA1	11,734		13,590		(13.7%)			41,930		48,087		(12.8%)
EBITDA margin1	11.6%		13.9%					10.3%		13.4%
Adj. net Income 2	(878)		1,398		(162.8%)			(5,013)		10,229		(149.0%)
Adj. net Income per share 2	0.01		0.02					(0.05)		0.21
Truck Transportation
Revenue	54,939		61,235		(10.3%)			229,845		206,009		11.6%
EBITDA1	7,559		9,774		(22.7%)			31,092		34,013		(8.6%)
EBITDA margin1	15.8%		19.0%					15.6%		19.8%
Logistics
Revenue	61,534		51,987		18.4%			234,887		212,448		10.6%
EBITDA1	5,560		4,669		19.1%			15,325		18,692		(18.0%)
EBITDA margin1	10.0%		9.9%					7.2%		9.8%

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

2) Adjusts for asset impairment of $23.1 million, less deferred tax recovery of $4.1 million

EBITDA to Net Income (in thousands $CAD)

	Q4 2024		Q4 2023		FY 2024		FY 2023
Adjusted Net Income	(878)		1,398		(5,013)		10,229
Add(deduct)
Losses/(Income) from discontinued Operations	1,287		(414)		2,650		(660)
Gain on sale of equipment	(304)		(745)		(2,872)		(4,473)
Finance costs	2,543		3,270		12,303		9,134
Finance income	(126)		(106)		(390)		(518)
Foreign exchange	(724)		(861)		320		125
Transaction costs	-		-		-		1,285
Income taxes	3,183		1,804		1,648		4,019
Operating Income	4,981		4,346		8,646		19,141
Depreciation	6,347		8,688		31,504		27,408
Amortization of intangible assets	406		556		1,780		1,538
EBITDA	11,734		13,590		41,930		48,087

Developments Subsequent to Q4 2024

• On January 16, the Company announced a new logistics office in Irving, TX, marking the opening of the Company’s ninth US operation since 2019, consistent with the Company’s strategic plan to strengthen its penetration of the US market.
• On February 07, Titanium announced that its Board of Directors has elected to suspend its dividend as the Company continues to execute a disciplined financial strategy amid ongoing market challenges.

2025 Outlook

Ted Daniel, Chief Executive Officer, Titanium Transportation Group, noted, “Entering 2025, the freight market remains uncertain, with ongoing economic and potential trade disruptions, particularly the impact of tariffs on U.S.-Canada trade. Important to note, approximately 2/3rds of Titanium’s volume is non-cross border and not exposed to potential tariffs. While these challenges could affect cross-border volumes, history has shown that periods of volatility also create opportunities for companies that can adapt. Trucking remains the backbone of North American commerce, facilitating the vast majority of cross-border trade. In this environment, Titanium’s asset-light strategy, combined with our young, efficient fleet and disciplined capital allocation, positions us to navigate shifting market conditions while maintaining financial strength. By reducing debt, enhancing cash flow, and remaining operationally agile, we are well-prepared to mitigate external pressures and seize growth opportunities.”

“Looking ahead, our focus on sustainable growth, operational excellence, and technology-driven efficiencies will continue to drive long-term value for our shareholders and ensure Titanium remains a leader in the evolving transportation landscape,” added Mr. Daniel.

2025 Guidance

Given current market conditions and ongoing uncertainties impacting the transportation sector, Titanium Transportation has elected to withhold guidance at this time. We remain confident in the fundamentals of our business and our long-term strategic priorities. Titanium will reassess providing guidance once there is greater clarity on the operating environment.

Conference Call

The Company will also hold a conference call for analysts and investors with Ted Daniel, President and Chief Executive Officer, Tuesday, March 18, 2025 at 8:00 a.m. Eastern Time, to discuss these results.

Details of the conference call:

Date: Tuesday, March 18, 2025
Time: 8:00 a.m. ET
North America dial-in number: 1-800-717-1738
International dial-in number: 1-289-514-5100

A replay of the conference call can be accessed until midnight on April 1, 2025.

Details of the replay:

North America dial-in number: 1-888-660-6264
International dial-in number: 1-289-819-1325
Conference ID: 37101
Passcode: 37101#

For more details, or 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 850 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 four (4) 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