Titanium Transportation Group (TSX-V:TTR) grew profits and paid down debt despite a nearly 10% drop in revenue as the Canadian cross-border trucking and logistics firm pushed through COVID-19 headwinds in the second quarter.
Ontario-based Titanium reported profits of CA$900,000 (US$676,000) or 2 cents per share, on CA$38 million in revenue. A year ago, the company had net income of CA$500,000) on CA$42 million in revenue.
Operating income increased by 26.1% during the quarter as its Canadian-based trucking and logistics businesses contended with lower revenue. Only Titanium’s U.S. brokerage business had an increase in revenue.
Titanium CEO Ted Daniel said he was pleased with the results considering the impacts of COVID-19. He highlighted the aggressive repayment of debt during the quarter.
“Our operating discipline and cost-saving initiatives allowed us to fully absorb the additional operating costs related to COVID-19 while once again [being[ able to generate positive free cash flow and reduce our indebtedness during the quarter,” Daniel said in a statement.
The company used most of its free cash flow, CA$10.9 million, to aggressively pay down debt.
The improvements to Titanium’s balance sheet put the carrier in an even stronger position as the company sees larger mergers and acquisitions targets in the U.S. and Canada.