Canada’s Titanium sees strong growth in trucking and logistics businesses

Titanium’s fleet has 475 power units and 1,400 trailers. Photo: Jim Allen/FreightWaves

Titanium’s fleet has 475 power units and 1,400 trailers. Photo: Jim Allen/FreightWaves

Titanium Transportation Group (TSX:TTR.VN) reported robust growth for the fourth quarter and full year on March 5 as revenue from the Canadian company’s trucking and logistics businesses increased by more than 20 percent, along with improved margins.

Titanium reported fourth-quarter 2018 revenue of C$42.7 million (A Canadian dollar currently is valued at US$0.75), a 20 percent increase from the previous year. Its full-year revenue was $184.8 million, an increase of 43 percent.

Earnings before tax and other charges, or EBITDA, rose by 55 percent, to $5.4 million for the quarter, and increased by 78 percent for the year, to C$12.6 million. Net income for the quarter was C$1.3 million and C$5.8 million for the full year.

“Both our Truck Transportation and Logistics segments delivered strong growth, reflecting improved industry conditions, previous strategic investments in technology and our driver recruitment initiatives,” said Ted Daniel, Chief Executive Officer of Titanium.  “Our sharp focus on execution resulted in substantial operating cash flow generation, allowing us to pay down a significant amount of debt and further strengthening our balance sheet.”

Titanium’s trucking segment accounted for C$29.2 million of revenue in the quarter, a 21 percent increase from 2017, and EBITDA of C$4.3 million, a 39 percent increase.

The logistics segment generated C$4.3 million in revenue in the quarter, a 25 percent increase, and EBITDA of C$1.5 million, a 60 percent increase.

Titanium reported significant improvements on its margins. It had an EBITDA margin of 13.8 percent for the quarter, versus 10.5 percent a year earlier. The EBITDA margin for full-year 2018 was 13.3 percent, versus 10.3 percent in 2017.

Titanium is based in Bolton, Ontario, and has a fleet of 475 power units and 1,400 trailers. Its trucking (full-truckload and less-than-truckload) and logistics businesses cover Canada and the United States.

The company has appeared in the PROFIT 500 list of Canada’s fastest-growing companies for the past 10 years running.

In February, the company announced its driver base had increased by 14 percent during 2018 and had a turnover rate of 18.4 percent.

The company will host a conference call to discuss its financial results with analysts tomorrow morning (March 6).