Good morning, ladies and gentlemen, and welcome to Titanium Transportation Group's Q4 2021 earnings conference call. At this time, all participants are in a listening mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at the time for you to queue up for questions. If anyone has difficulties hearing the conference, please press star followed by zero for operator assistance at any time. On today's call, we have Ted Daniel, President and Chief Executive Officer, Alex Fu, Chief Financial Officer, and Marilyn Daniel, Chief Operating Officer. Before we begin, I would like to remind everyone that certain statements made on this call today may be forward-looking. In that regard, please refer to the risk factors and cautionary provisions outlined in the press release issued by the company yesterday, as well as the filings made by Titanium on SEDAR. Please note that today's call is being recorded today, March 9th, 2022. A replay of this call will be made available until midnight on March 23rd, 2022. Details of the replay can be found on our website under the Investors section. I would now like to turn the call over to Titanium's President and CEO, Ted Daniel. Good morning, and thank you, operator, and thank you all for joining us to discuss fourth quarter results and our outlook for the full year 2022. With me on the call today is Titanium's CFO, Alex Fu, and COO, Marilyn Daniel. We ended 2021 on a high note with fourth quarter results that caps a year of records and transformational achievements for Titanium. I'm proud to report we achieved the highest full- year revenue in the company's history at just a sliver under CAD 400 million, that being roughly double the CAD 200 million in revenue achieved in 2020. Our results for 2021 were above expectations, which I'm proud of, but equally important is that we're also well ahead of our growth plan targets that we set three years ago. This success, despite a continued challenging environment, as a result of our focus and execution on delivering organic growth, our disciplined approach to acquisitions, U.S. expansion, and our ongoing commitment to productivity and efficiency with investments in technology. I'm very pleased to announce that for the fourth quarter of 2021, Titanium delivered another record quarter with revenues of CAD 111.3 million, an increase of 69.1% over the fourth quarter of 2020. Without a doubt, our continued success would not have been possible if not for the steadfast commitment of all our team members, whose focus on our business and support of our customers' needs is critical to delivering our results. 2021 was a challenging environment for most industries as the pandemic and associated restrictions continued to impact the economy and operating conditions. Titanium's focus on building a robust and versatile platform supported our ability to successfully navigate the challenging environment, support our customers, and deliver strong organic growth. In addition, notwithstanding the environment, we executed on our acquisition growth strategy, closing the largest transaction since our inception with the acquisition of International Truckload Services Group. More recently, we announced the acquisition of Bert and Son's Cartage, supporting our ability to continue to execute on strategic targets that support our rapidly growing footprint. Throughout 2021, we successfully invested in the development and expansion of our U.S. logistics business in key markets, capitalizing on access to the North American supply chain demand. We successfully added two new operations, including dedicated teams with local expertise in Chicago and Denver, expanding our U.S. freight brokerage platform to four markets. In addition, last week we announced the start of our fifth U.S. operation in Atlanta, Georgia as we continue to expand with our U.S. rollout. Our strategy and execution delivered a year of significant growth. The trucking segment posted revenue of CAD 44.5 million in the fourth quarter and CAD 171.2 million for the year, representing 66% and 61% growth, respectively. For the fourth quarter, ITS contributed CAD 15.8 million of revenue to the segment, with a total for the year of CAD 60.9 million, reflecting only 11 months of operations. In the logistics business, fourth quarter revenue of CAD 68.1 million was up 68.6%, while full- year revenue of CAD 232.3 million is up more than two-fold from CAD 99 million in 2020. With a strong performance across our business and our acquisition, full year 2021 adjusted EBITDA was CAD 31.3 million, up 35.5% from 2020. This is net of absorbing CAD 2.5 million in direct acquisition-related expenses, mainly in the second quarter, which are non-recurring. Excluding these direct acquisition-related costs, adjusted EBITDA was CAD 33.5 million, in line with our expectations. EBITDA performance continued to be impacted by the addition of ITS and costs associated with the acquisition and integration. However, performance has improved over the last quarter as the integration of the business advances and efforts to realize cost savings improve productivity and deliver results. The industry is bearing cost pressures from higher fuel and operating costs, with some supply chain constraints delaying the supply of new equipment. We continue to address these challenges with ongoing focus on productivity and efficiency in our operations, as well as efforts to pass through appropriate price increases to customers. Most customers understand the current realities of the marketplace, and we continue to work constructively and transparently to achieve fair outcomes and support our growing customer base. While the fourth quarter reflects some of these efforts, most pricing activity takes effect with a lag, and we would expect to see more progress in the first half of 2022 results. Turning to the integration of ITS, most of the major systems integration milestones have been achieved with good success. We continue to work to upgrade the equipment consistent with the broader, higher fleet standards at Titanium. However, as mentioned, we are experiencing some delays with respect to equipment deliveries. As a result of good planning, we are on target to receive over 100 tractors and about 250 trailers before the end of this year. As we look ahead to 2022, a number of challenges continue to confront the industry. We remain vigilant in managing the uncertainty resulting from the pandemic and macroeconomic challenges with industry-leading navigation tools. The economy continues to evolve with respect to significant inflationary pressures and ongoing challenges in the global supply chain. Titanium remains exceptionally well- positioned to navigate these conditions with scalable technology-based platforms and deliver logistics solutions for our customers, coupled with an experienced team. As Alex will discuss in a minute, we continue to manage our pricing proactively with our customers to address evolving industry costs, supported by the efficiency of our transparent platforms. Overall, Titanium is well- positioned to leverage our capacity and expertise as we move through 2022. We believe our investments in people and technology allows us to continue to drive organic growth even in challenging conditions. For the coming year, I'm pleased to report that we expect to deliver between CAD 450 million to CAD 470 million in top line revenue and between CAD 38 million to CAD 43 million in EBITDA. In addition, with a solid balance sheet and disciplined focus, we remain committed to exploring further acquisition opportunities as they arise in 2022. Turning to our operating results for the quarter and review of the numbers in more detail, I'll turn the call over to Alex. Thanks, Ted. Our fourth quarter results reflect a strong finish to a very successful year for Titanium, fueled by organic growth and acquisitions. Both operating segments reported significantly higher revenue and EBITDA for the quarter and the full year. Total quarterly revenue of CAD 111.3 million was up CAD 45.5 million or 69% from year-earlier quarter. Record quarterly revenue was again achieved through significant progress in both of Titanium's operating segments. Consolidated quarterly EBITDA was CAD 8.8 million for the quarter, up 35.3% from a year ago. For the full year, total revenue of CAD 399.4 million was up nearly double from the 200.7 million in 2020. Full year EBITDA of CAD 31.3 million was up 35.5% from CAD 23.2 million reported in 2020. Reported net income per share on a diluted basis was CAD 0.04 for the quarter and CAD 0.12 for the year. Turning to the segments. Overall, the logistics segment delivered revenue of CAD 68.1 million in the quarter, up from CAD 40.4 million a year ago, an increase of 68.6% and a record for the quarterly revenue for the segment. The logistics segment continued to benefit from both our strategic investment in the U.S. logistics business and our success in the Canadian operations. The U.S. logistics segment contributed CAD 44.6 million to revenue in the quarter, compared to just CAD 24.2 million a year ago. The Canadian operations also delivered improved results during the back- end of the year. Ongoing economic recovery and gradual easing of COVID-related restrictions supported increased activity levels. As a result, the Canadian segment saw revenue increase by 45.5% to CAD 23.6 million from CAD 16.2 million in 2020. Segmented EBITDA for the quarter came in at CAD 4.8 million, up roughly CAD 1.6 million from a year ago. We've executed well on our strategic decision to invest in our U.S. logistics business, and we expect the segment to continue to deliver strong growth in 2022. Turning to the truck transportation segment, revenues during the quarter were CAD 44.5 million, up CAD 17.7 million from a year ago. Also a record for the quarterly revenue for the business. Segmented EBITDA was CAD 4.8 million for the quarter compared to CAD 3.8 million in the same quarter a year ago, with EBITDA margin of 12.3%. Given the strength of our capital position and our confidence in the earnings outlook, we maintain our dividend, declaring a dividend of CAD 0.02 per common share subsequent to the fourth quarter. I would now like to turn the call back over to Ted. Thank you, Alex. 2021 was definitely a transformative year for Titanium. We made significant progress in our strategic build-out of our U.S. logistics platform, which we plan to continue to grow. We successfully completed the acquisition and integration of the largest acquisition in the company's history, and we continued to deliver organic growth in our core platform as the operating environment recovered. Titanium is entering 2022 with excellent momentum on solid footing. Both our trucking and logistics businesses in Canada and the U.S. are well-positioned to benefit from the expected continued recovery in economic conditions and easing of operating restrictions. By all accounts, there is significant backlog in the global supply chain, which should continue to support robust demand for logistics and transportation services. Titanium is empowered and equipped with the tools to address cost challenges as we continue to deliver for our customers. With our people, technology, and robust platform, we expect Titanium to punch above our weight class and deliver another year of profitable organic growth in 2022, with additional upside from the potential to pursue additional accretive opportunities. We wanna thank everyone on our team for their continued focus, and I wanna thank all our customers for trusting us with their business. With that, I'll turn it over back to the operator to open the lines for questions. Your first question comes from David Ocampo of Cormark. Thank you. Good morning, everyone. Good morning, David. Good morning. Ted, my first question is on the fuel price environment. I understand you guys have surcharges in place. Is there a lag in there where you could see a bit of a headwind even in Q1 and Q2? Or how does that dynamic play out as the year progresses? Yeah. There is a lag. What happens, for example, is if fuel is increasing, then the fuel chart that customers use, let's say, in their contracts. You really have to split this question into the two segments, right? Into logistics, which is, you know, more driven by the elasticity of the spot market versus a contract environment, which is in trucking, which tends to be a little bit more stable. I mean, dealing with the contractual side, you've got fuel tables, and some customers have fuel tables that are, you know, whether it's, you know, 70% of FCA or 30% of DOE or whatever, and it's based on prior months average published, you know, whatever price of fuel, et cetera, et cetera. There is certainly a lag. Of course, what we're doing is we're addressing that by having regular, you know, at this point in time, technologically, we're all over that on a progressive basis so that we're giving ourselves the buffer in order to address those issues very quickly. In addition, you still have some customers who like all-in rates. Obviously now those customers are being approached on a regular basis, far more frequently. The logistics market is extremely elastic at this point in time. You know, you tend to look on a more all-in basis on that level. It's, you know, the overall all-in rate to the customer and then the overall all-in rate to the carrier. Okay. That's helpful commentary. Yeah. Maybe Alex, in the MD&A you guys noted that pricing was up, I think, 11% in the quarter. Just curious how much of the breakdown of that was from fuel and maybe for Ted, where do you kind of see pricing increases trending for this year on a scale basis? Definitely a big portion of that is fuel. There are some rate increases that happened during Q4. About 1/3 of it is fuel and then the rest are pricing increases. You will see a lot more of that in 2022. With the fuel increasing rapidly in the first quarter, I would say expect a larger portion. I wouldn't say larger portion, but definitely same ratio going forward in the quarter at the very least. I'll turn it over to Ted for the outlook on fuel. Yeah. I mean, you know, some of us remember, you know, $47 a barrel. And again, I mean, it is a bit of a crystal ball, but do I think it's gonna go up to 150, 160, 170? I don't know. I mean, it's I think it's hard for all of us to say where is fuel gonna go, and we're all gonna have to deal with those issues. I think that, you know, the breakdown historically for us has been about 1/3 fuel, but getting into kind of more of a current environment, we've already built into some of our pricing at this point in time, the substantial increase, for example, for the price of trailers. In the last 12 months, trailers have... 12-18 months, the cost of trailers have doubled. I'm sure that's not news to anyone at this point in time. Just the basic cost of purchasing the trailers doubled. In addition, we're in an environment contrary to the last, you know, 10, 15, 20 years. We're now into an environment of increasing interest rates. I think that the compounding components, you know, the increase in the price of fuel is going to impact the fact that it's gonna cost, you know, a mechanic more money to get to work and go and repair the truck, so he'll have to get a raise. The hourly rate of the shop will go up. It's that kind of exponential impact that I think that we're all gonna feel, and that's where we're staying extremely close on a regular basis using our technology to monitor exactly where we're at in terms of our costing. It is a very complicated situation and that's why we're seeing this sort of circumstance. For sure, we're monitoring it, and unfortunately, but that is the reality, fuel is a pass-through, and it will unfortunately hit the consumer, the price of products. Right. For truck transportation, based on your guidance, it does seem like there's gonna be, you know, a pretty good improvement on the margin profile there. How would you break up the split between your pricing increases and just better operating performance out of ITS? I would say somewhere in the range of about 50/50. So I think that we know that ITS was a single- digit underperforming EBITDA. That is unsustainable in virtually an entirely asset-based environment. You need to have a much higher EBITDA. Obviously, our goal in trucking is about 16%, 15%, 16% EBITDA. So their EBITDA was below 10%, it was single digits, and that needed to be addressed. You know, of course, no sooner than four or five months after the purchase, inflation started to kick in. You know, that made life kind of a, you know, sort of a double whammy complication. Having said that, at this point in time, the bulk of our sort of our improvements are now going to be not just, you know, improvements in efficiencies and, you know, just trying to get new equipment as quickly as possible and so on. You know, we're going to be creating also, you know, improved. Well, we're gonna have to have improved margins because the cost increases are taking effect, or price increases really. I'm just gonna jump in for one sec. It's Marilyn. I think if you look historically for us, it's typical that a turnaround has many, many sort of stages, and our integration stage is physically over and we're working with human capital, I guess. Working with our people takes a little bit longer to really realize the synergies and the optimization, and that's the stage that we're at right now, which is exciting for us, and we see positive results. Yeah. Then last one from me here before I hop back in the queue. Alex, what's the CapEx requirement for this year for the 100 tractors, 250 trailers? We disclosed about CAD 32 million committed. Obviously we want all of it, but there is supply chain issues. If we can get more, it'll be even higher. We are committed for CAD 32 million. Perfect. Thank you. I'll hop back in the queue. Thank you. Your next question comes from Benoit Poirier of Desjardins Capital Markets. Yeah. Good morning, everyone. Yeah. Morning. Morning, Benoit. Yeah. Just looking at the revenue contribution from ITS, it seems to be closer to CAD 20 million versus the CAD 14 million-CAD 15 million at the time of the acquisition. Is the CAD 20 million a good run rate for ITS in terms of revenue? Sorry, CAD 20 million for ITS? Yeah. We have CAD 15.8 million for the quarter. You're talking per quarter. Yeah. No, It's more of a CAD 15 million per quarter for ITS. Okay. Perfect. Could you break down the expectation when we look at the outlook for 2022 between truck transportation and logistics from a revenue standpoint? We're expecting the breakdown to be around the same as current year, which is about 45% trucking and 55% logistics. Okay. Okay, that's great. When we look at the EBITDA for truck transportation, obviously you came in at 12.3% below what we should consider a normalized level. What about the expectation for truck transportation in 2022? Is 15%-16% achievable? Yes. We are aiming to reach 15%, 16%, 17% by the end of the year. The progress we'll have to see because of the inflationary increases currently, but we are passing some of that through like Pat and Marilyn mentioned. Our final goal is about 15%, 16% or 17%, around that range. Where we end up is gonna depend on how quickly we can get back onto that, normalized percentage. See, Benoit, it's not a matter of whether or not we're passing along these increases. What's happening is that you go to a customer and, you know, as respectfully as possible because we're all. I'm gonna use something probably nobody wants to hear another millionth time, but we're all in this together. Now we're all in this together economically. The bottom line is that you go to a customer and you say, "Look, guys, I got no choice. I've got to give you this X% increase," whether it's 7% or 12% or 13% or, you know, or whatever the number is that, you know, appropriate for that those lanes or that particular circumstance or whatever. You go to the customer and you give them a rate increase. you know, three months later, all of a sudden there's some other increase that was unanticipated or an announcement that, you know, tires are more money or all of a sudden you're getting there's a surcharge on new trucks effective three weeks from now delivery and onwards. It's just there are surprises now that are coming so rapidly that, you know, you can go to a customer and give them a double-digit increase, and it could be obsolete in three months. It's not for a lack of mathematics. It's certainly, you know, for a lack of knowing exactly what our, call it a bill of materials of turning a tire. It's for the fact that things are just so rapidly changing that, you know, our goal is to hit 16%-17% EBITDA. There could be more chasing going on this year, which is definitely going to be out of everyone's control. All we can do is because of our technology, we're able to monitor our, you know, our performance on a daily, weekly basis at this point in time. That's how aggressive we are with the situation, in terms of monitoring it. That's why we feel that we're going to be well equipped to be able to address the situation. We're extremely confident that we're gonna hit those targets. You know, again, there are some, let's just say, you know, macro risks. Our tech tools certainly help navigate the situation. Okay. Could you talk about the integration of Bert and Son's Cartage and also the current EBITDA margin contribution? Yeah. Actually, Marilyn's gonna talk about it, but I'm just gonna start by saying it's a great little consolidation acquisition in Brantford. We're very pleased to have had the opportunity to bring those operations together there. I'll let her have some more detail on that. We actually, it's a small acquisition for us after experiencing ITS. It was easy, to be honest. The Bert and Son's Cartage has been transitioned to Titanium already. As of March first, we have everything branded Titanium, and we have onboarded all the staff, et cetera. We've already made those transitions. We've reached out to customers. We are already operating as Titanium out of our Brantford terminal. More strategically, we actually consolidated another terminal that we were operating up with through ITS that we were able to get out of the agreement we had with them for leasing purposes and integrated that whole group into this new location that we now own. The property is just under 8 Yes, eight acres. Just under eight acres and serves us really well with an on-site shop that we have tenanted. It's worked for us that way. As far as the physical integration, it's done. Now we're just working on the normal sort of soft work that needs to be done just with people and systems and customers and optimizing the customer base Bert and Son's has. There was a little bit of overlap with customer base, but there's also a new customer base there that we're working with now and expanding on. It's been a very good acquisition for us. Very, very productive. We've all really enjoyed this process. Okay. For logistics, still a desire to add two new locations in 2022. Is that a fair statement? Yes. That's the goal. Okay. Last one for me. If we look at M&A obviously going through some integration right now, but would it be fair to expect a pause until later part of 2022 or still pipeline's pretty robust and willingness to do that? Yeah, I wouldn't say that there's a pause. I'm always looking, and I think that you know, with our technology, we're ready at this point in time. We have a very scalable business. We have a fantastic technology department. Our team here is ready to roll up their sleeves and execute at any given moment. You know, between our proven systems and our people here, we've got an amazing you know, call it ability. You know, we've got an amazing ability between people and tech that can execute at any time. I'm always looking, you know, but it's just a matter of being disciplined with the criteria and making sure that we're buying something that, you know, is going to contribute shareholder value. As Marilyn said before, sometimes you buy something that, you know, is a better deal. As you can see, the goodwill, it's in the notes. The goodwill on the ITS acquisition, very minimal. You know, and it required a fix-up, but it's definitely going to prove, for lack of a better term, it's going to pay dividends for years to come. Couldn't resist. Okay. Thank you very much for the time. Yeah. Thank you. Your next question comes from Mike Hone of ATH. Good morning. Hi, Mike. Good joke, Ted. Sorry, I'm working on my day job. A few questions from me, if you would. I'm just trying to understand a couple of things a little bit more deeply. I'm just trying to understand revenue attribution, or the increase in revenue and how to think about that. Can you remind me again when ITS closed? February 1. February 1. Okay. Yeah. 11 months contribution. I think you just said to a prior person on the call that it's at a run rate of about CAD 16 million in revenue. Is that right? Yeah. Ish. Yeah. CAD 15 million-CAD 16 million, and that's before rate increases. There, there's more than likely rate increases there on that base. Yes. is it fair to say then, that the remainder, which is the majority of revenue, was really just price increases on existing business? I mean, I don't think your volume of business changed that much on the existing fleet. Is that the right way to think about it? More or less, yeah. It can't because real estate. Trucking is kind of like real estate on wheels. I mean, it's geometric. Okay. From that point of view, you've got a box that has a length, width, and height limitation. We added, you know, some new customers and we are obviously making now the decision in terms of, you know, in terms of, well, who gets the space. We have no choice. Yeah. You know, we've got to go for the rate increases at this point in time in terms of the fact that, you know, it's more a matter of who's willing to pay for space that just costs more money now to produce, right? If I think of that real estate as the widget, well, you know what? That widget costs more money now to produce. I think the other thing. No. Understood. Yeah. Understood. There's finite capacity, and it is exactly like real estate. I get that. I just wanted to make sure there wasn't anything I was missing on that. Very, you know, a lot of price taking. Let's move on to how that flows through. I guess when I look at your guidance on revenue and adjusted EBITDA, that would imply for 2022 an 8.8% EBITDA margin. Correct me if I'm wrong, but that's my back of the envelope here. Yep. I was kind of expecting it to be a little higher just given the revenue, the larger revenue base and the fact that you're taking price, although you said you're gonna be doing it. Well, you are gonna be doing it more in the first half of 2022 plus synergies. I just thought it would be a little bit higher on the run rate. Clearly that's cost inflation. I really just want to get some more color, if you can provide any, on where you're really seeing the biggest cost being driven higher. I think that one thing that we're not gonna do is publish numbers that are essentially hopeful. The hope is not a strategy here. One of the things that we wanna do is have a sense of, you know, we're trying to get away from this, you know, every single month, you know, what are we gonna do, you know, a monthly or quarterly beats or misses. That just doesn't make sense. We can't run our business on such short-term guidance. Having said that, you know, we feel that the trucking is, again, as we said, a limited real estate on wheels. So yes, we're gonna have rate increases in trucking, but again, the scalability will be the continued growth of our brokerage division as well. Brokerage tends to have a lower EBITDA, but again, remember, EBITDA is essentially EBT. So from that point of view, from a cash flow perspective, you know, we are looking at, you know, an achievable, what we feel is economically an achievable number. It is conservative, but you know, we need to, you know, continue to run the business as we always have responsibly and conservatively. Our goal is to overachieve. So it may appear that way, but Mm. As we pursue rate increases in trucking in order to cover the inflationary pressures, as well as we grow logistics, that is kind of a reasonable blend. If you're gonna grow logistics more and more and more, you're going to see a slight erosion of EBITDA. That's inevitable for most logistics businesses. I mean, there's hardly any depreciation or interest below the line. From that point of view, I like the fact that EBT in an asset-light model is higher than EBT for trucking. Right. Okay. I think we should also consider one other thing, which is overall improved utilization and efficiencies. We had a lot of issues come up in the fourth quarter and obviously into 2022 with blockades, vaccine mandates, and so on. Mm-hmm. So there's been a backlog in movement. We've had, I mean, all of our customers are screaming at us for volume of equipment just to get back on track because they themselves have had their own issues with, you know, lack of productivity at top levels, not being able to produce at the same levels. Then they backed up. We had weather, then we had blockades, then we've had, you know, restricted vaccine mandates and so on. There's been a lot that affected overall efficiency and utilization that is improving as we speak. Some of it's the easy one, weather, that end of 2021 and now obviously into 2022 and coming out of that. There's a lot of things that I think will also affect that number, that as we come out of the last two years of the pandemic and other, I guess, uncertainties, government uncertainties and so on. I think you'll see overall improvement that way as well. You've tried to bake that into your guidance then, right, Marilyn? Those improvements that are out there. We didn't really. Conceptually, I mean, Ted and Alex can speak to the number more specifically than me. I just know that's what we're focusing right now is improvements on our utilization, and it's happening as we sort of come back into a more normal work environment. I think people have forgotten how much of an effect it had on the industry, especially with drivers in this last quarter, for sure. You know, one of the things that's different, that I've said this before, and I'd like to kind of make sure I get a chance to say this on the call, what's different under the circumstances is that this isn't the same as 2018. Right now you've got an increasing interest rate environment. All of these cost increases are all a big chunk of them are hitting people's balance sheets. That's the difference. Just because you're paying twice as much for a used, which, I mean, we don't typically buy these trailers, but let's just say somebody in the more on the macro level here, someone is buying, you know, five or 10 used trailers for double what those trailers would have cost them 18 months ago. It doesn't mean that it's a you get what you pay for circumstance. On the contrary, that trailer is still a six-year-old trailer. It still has six-year-old parts and a frame, and it's still gonna need as much maintenance as a six-year-old trailer did, you know, four years ago. On top of that, everything has gone up in terms of just the maintenance itself, replacement parts, tires, rims, you know, slack adjusters, whatever. Everything is now compounding the expense. I think it's a much different circumstance than there was before. I think that's going to create a challenging environment on the one hand. Then again, you know, because of the confidence we have in our navigation tools, which I'm extremely confident in our navigation tools. You know, I'm gonna say another thing, math will prevail here. I think from that point of view, we're extremely confident in our numbers. That's kind of where we felt, you know, we wanted to sort of settle down on the expectation. Yep. Okay. That's understood. Last thing, I just wanna understand the free cash flow a little bit better, or specifically the CapEx. Alex, I think you're indicating CAD 32 million in 2022. Can you just clarify Sorry, your call is breaking up. I can't hear you. Oh, I'm sorry. Is it better now? Yeah. Yeah. Sorry, I didn't move or anything. I'll start again. I just wanna understand the CapEx guidance a little bit. I think you've got CAD 32 million in 2022. That's assuming you can get everything you want. That's obviously a big step up. There's a lot of fleet replacement this year versus the past few years. How much of that CAD 32 million would you say, if any, is carryover of equipment you didn't get in 2021? There's two sides, right? There's the financing aspect of what we have available, and then there's the requirement for equipment, right? Right. I mean, there's different components of what feeds our replacements. I'm just gonna say that what we do is we typically don't use current cash for financing equipment. We have equipment financing arrangements that are very aggressive interest rates. Our cash availability are on different levels, depending. We typically match short-term assets to short-term cash requirements and long-term assets to long-term financing arrangements. Yeah, no, I'm not concerned about that financing so much, Ted. I just want to drill down on the CapEx of CAD 32 million. Yeah. How much of that might be carryover from stuff you couldn't get in in 2021? If any. Actually, I mean, we certainly have some orders that been carried through, but these are equipment that was committed to for 2022. All right. They are actually what we wanted. Well, we wanted more, but this is actually what we wanted. Okay. There was a bit of spillover from Q4 to Q1. Yeah. What was supposed to be delivered in November, December is now being delivered in February, March. Yeah. For example. Not a whole year worth of spillover. Yeah. It's just like one. It's like maybe a quarter. A little bit. Yeah. Okay. Got it. Last year was CAD 18 million, this year's CAD 32 million. Do you have any high-level sense of what 2023 might look like? Is it another fairly large year? Uh, Okay. It's another big- 2023 will be the same as 2022. Yeah, your 32 should be more like 35 because there is an increase in the cost of equipment. Because of inflation. Yeah, of course. Yeah. That was last week's emails, in case you're wondering. Right. Yeah. All right. I can appreciate the challenges of the environment. Yeah. No, I can appreciate it. We're seeing it everywhere. Great. Yeah, they're really nice emails, you know, they're basically like, "We really appreciate your business. However, due to blah, blah, blah, you know, effective April one deliveries and onwards, prices increased by X amount." That's just- Have a nice day. Have a nice day. You know what I do? First thing I do is I go running down the hall to my FP&A department, and I'm like, "Guys, new price of trucks. Let's go. Pull up the models." That's it. Like, it's that simple now. That's how we are with our technology. That's how sensitive it is. Yeah. you know, that's why we're extremely confident in 2022. Right. CAD 32 million this year. CAD 32 million inflation adjusted in 2023. Great. Yeah. I'll quote Ted Daniel earlier on this call when he said, "We're all in this together economically." All right. Yeah. Thanks so much for taking my questions. Anytime, Mike. Thanks. All right, bye. Your next question comes from Ben Jekic of PI Financial. Good morning, guys. Well, all the good questions have been asked, so I'm left with some scraps here. Come on, Ben. You're a survivor. Just on the new logistics location, you said 2 new locations. Is that including the plants or excluding the plants? No. No, excluding. Excluding. Oh. You know I'm telling the truth here 'cause these two just said the same thing at the same time, so. Yeah. Okay, my second question is, Ted, you said, so the growth is backlog in the global supply chain. Mm-hmm. Can you just elaborate again, will it affect logistics and trucking similarly or a little bit more logistics maybe or? It starts logistics then trucking. Yeah. I mean, logistics, I've always said, is the canary in the coal mine. My number. Yeah. It's kinda funny actually. You know, I used that expression recently on some of my younger people here, and they really had no clue what I was talking about. It's kind of interesting. I think most of us do know what that represents. Like logistics for sure is definitely the canary in the coal mine. It definitely paints an interesting picture. If you take a look at the Loadlink spot market chart, December, I couldn't find. They only produce it every few months, so I couldn't find the January, February version. The latest version goes right up to the end of 2021. The December spot market index in Canada finally skyrocketed in the last three months of the year, which gives you the pricing, call it pricing power, I guess, for lack of a better term. It's not about that per se, but I mean, certainly it's demonstrating exactly where we're at in terms of supply chain demand. December was higher than January 2018. I mean, that is extreme. That was the highest historical on record was January 2018. Now we've beat that. That's really an interesting indicator of where things are going. There's the supply chain from a consumer perspective, but then there's also the supply chain which is impacting, you know, the availability of trailers, trucks, components, et cetera. I mean, just, you know, an automatic transmission alone has over 20 microchips, right? I mean, you know, how are we all gonna get new trucks, right? That's the challenge. Right. I mean, we've put in a significant amount of orders with a number of suppliers, and they're doing their best for us, you know. I mean, when they give me a delay, I'm not mad at them 'cause I know what they're going through. You know, we're just trying to figure it out. Yeah, I get it. Mm-hmm. The last question, if I can just maybe ask you to clarify. I think it goes back to David's question earlier in the call. You typically, when you raise prices, it's typically divided 1/3 fuel and 2/3s sort of other cost increases. It's a lot more scientific than that, but. Yeah, yeah. Yeah. I'm simplifying it, obviously. Yes. I guess your point was, like, you have to do what you have to do regardless of where the fuel goes, right? Like, it's not. Whether it's fuel or it's the price of the truck or it's interest rates or it's labor or it's R&M or, you know, whatever. I mean, you know, it costs more money now to buy office supplies, you know. Like, it's the delivery of the office supplies is more expensive. Like, it's just everything is exponentially going up all the time. We do have a significant amount of components that are going to call this a fairly detailed bill of materials. Right. Okay. Well, that's great. Thank you so much. Thank you. Anytime, Ben. Cheers. Yep. Again, to ask a question, press star one on your telephone keypad. At this time, there are no further questions. Okay. Hello? Hello. Okay. Well, thank you, operator, for facilitating the call. Regardless of the economic conditions we operate in, undoubtedly with our innovative, hardworking team of people, Titanium will continue to grow, succeed and increase shareholder value. We appreciate your interest in Titanium. Feel free to contact us if you have any further questions. Thank you for joining the call. Thank you for participating in today's conference call. You may now disconnect.