Good morning, ladies and gentlemen, and welcome to Titanium Transportation Group's Q2 2022 earnings conference call. 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 August 9th, 2022. A replay of this call will be made available until midnight on August 23, 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. Please go ahead, sir. Good morning and thank you, operator, and thank you all for joining us. Titanium delivered an exceptionally strong performance and generated noticeably improved profitability in the first half of the year. The quarter highlighted the progress of our focused growth strategy, strong operational execution, as well as deliverables in financial technology and analytics, which included continued pricing realization as we navigated a fast changing environment and through macro challenges. I am extremely pleased to report that Titanium achieved another record quarter, delivering CAD 136.2 million top line. This is a 35.1% increase from the same time last year. Our consolidated Q2 EBITDA was CAD 16.3 million, an increase of CAD 8.6 million, or 111% from a year ago. Despite cost pressures that continue to persist, our ability to quantify pricing pressures while focusing on productivity and technology allowed us to deliver efficiencies which resulted in both operating segments achieving increased EBITDA margins and profitability this quarter well above expectations. Looking ahead, with our current year-to-date revenue of CAD 272.1 million and EBITDA of CAD 30.3 million, we are well on our way to exceeding our previous full year guidance. While the numbers show success, it is important to note that we continue to make excellent progress against our operational objectives. As always, we demonstrate that we are capable and experienced at value-added acquisitions, building long-term growth platforms, and the results speak for themselves. As a result of our continued investment in technology, I note that this quarter's performance was driven by strong financial and navigation tools, resulting in improved profitability across both the logistics and trucking segments. In trucking, we are delivering synergies and operational improvements following our two most recent acquisitions and is now reflected in the improved profitability of the truck transportation segment. We continue to focus on technology driven efficiencies and culture. Additionally, in the quarter we received some of our long-awaited new trucks and trailers. As noted last quarter, the industry continues to experience inflationary pressures from higher operating costs, including fuel, equipment and labor. We have been transparent with our customers and together work to optimize pricing strategies. On the trucking side, we expect margins to remain steady as nothing has changed in the areas affected by inflation. With our diverse customer base and truckload commodities, we expect to see some shift in consumer spending and expect the second half of the year to reflect nothing more than traditionally slower quarters. Looking at logistics, as discussed last quarter, spot pricing softened during the quarter, impacting brokerage on both sides of the border. However, we're pleased to see growth during this quarter in our Canadian brokerage and increased volumes in our U.S. offices. Further, we continue to deliver against the strategic buildout of our U.S. Logistics footprint, with plans well underway to establish at least one, maybe two additional offices before the end of this fiscal year. We're incredibly proud to deliver these results in what we could continue to describe as challenging industry operating conditions. We note that while disruptions in supply chains are easing, conditions have yet to return to pre-pandemic normalcy. We expect this environment to persist through the back half of the year and likely into next year. Titanium remains exceptionally well positioned to navigate this market with our solid balance sheet and scalable technology. We have clearly demonstrated our ability to respond effectively to the needs of the business and our evolving customer demands. Lastly, I am pleased to report that Titanium delivered record quarterly EPS of CAD 0.17 per share on a fully diluted basis, exceeding expectations. With that, I'll turn it over to Alex for our financial results. Thanks, Ted. The second quarter results reflect another record achievement for Titanium. Turning to the segments. The logistics segment delivered revenues of CAD 78.6 million in the quarter, up from CAD 57.7 million a year ago, an increase of 36.2%. EBITDA margins for the quarter improved from 8.7% a year ago to 12%. As a result, the segment delivered CAD 8.4 million in EBITDA, a record for second quarter performance, up from CAD 4.7 million in Q2 of 2021, representing a 78.7% increase in the contribution from the segment versus the same time last year. Turning to truck transportation. Revenues during the quarter were CAD 58.6 million, a new record for the segment, and up CAD 13.8 million from a year ago, reflecting an increase of 30.9%. Segmented EBITDA was CAD 9 million for the quarter compared to CAD 3.9 million, another new record for the segment and more than double the EBITDA performance in the same quarter a year ago. EBITDA margin improved to 18.8%. That is up from 13.4% last quarter and up from 9.7% in Q2 of 2021. These improvements are in line with our typical results after realizing material synergies following our integration from our acquisitions. In terms of financial strength, we continue to strengthen the balance sheet during the quarter. We further reduced our debt-to-equity ratio to 0.94 at the end of Q2, down from 1.13 as of December 31, 2021. 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. As Ted previously mentioned, an earnings per share of CAD 0.17. I would now like to turn the call back over to Ted. Thanks, Alex. Q2 was another very strong quarter for Titanium. In both our logistics and trucking segments in Canada and the United States, our recent investments are helping to deliver strong top-line growth, and we clearly now delivering on the improved profitability through our use and development of technology as well as strong operational management. In terms of outlook, industry conditions remain somewhat uncertain. Inflationary pressure on major input costs, including the price of fuel, driver wages, and rising prices of tractors and trailers are expected to persist across the industry. We are confident in our team and our ability to execute in any environment as demonstrated over the years and no different this quarter and the first half of the year. We continue to believe that Titanium is well positioned to respond effectively to evolving customer needs and market conditions. Macroeconomic conditions continue to affect supply chains, and we do believe there is a change in consumer spending more reflective than a slowdown. I again draw attention to the commodities moved by Titanium and the diversity of the business. As mentioned earlier, assuming some moderation in the balance of the year from our recent pace of growth, Titanium remains well on track to exceed the full-year guidance set at the beginning of the year. Accordingly, we have increased our revenue and EBITDA guidance to between CAD 460 million-CAD 480 million in consolidated revenue and CAD 45 million-CAD 50 million in EBITDA this year. Lastly, with a solid balance sheet and disciplined focus, we remain committed to exploring further only accretive value-added acquisition opportunities should they arise. With that, I'll now turn it to the operator to open the line for questions. Thank you. Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. Please stand by while we compile the Q&A roster. Your first question comes from David Ocampo of Cormark. Please go ahead. Thanks. Good morning, everyone. Good morning, David. Good morning. Ted, I just wanted to confirm very quickly that you think that the trucking EBITDA margins should stay in a similar range. Did I hear you correctly there? Yes, that's correct. Okay. The price of trailers kind of require that so. Yeah. When I take a look at your EBIT margins and subtracting D&A, you know, it is up to a new high watermark of 6%. If I compare that to logistics, which is asset light and doesn't require any CapEx, it's at 12%. With that in mind, do you think you guys can increase the return of your trucking assets beyond the 6%? Especially when I benchmark you guys against other Canadian truckers who typically garner an EBIT margin of north of 10%. Well, one of the things that, you know, we do quite well, you know, it's kinda hard to gauge exactly where we're gonna end up. One of the things that we do well is continuous improvement, and, you know, we continue to invest in technology. We're gonna keep working towards as much efficiencies as possible. You know, again, improvements, you know, putting in, you know, a lot of integrations and so on. We're definitely gonna keep working towards continuous margin improvements. Yeah, that's very helpful. Just shifting over to logistics. We did see a sequential decline from the Q1 on the revenue line. The EBIT margin still, you know, hung in at 12%. It was 11.5% in the previous quarter. I think you guys were always guiding to 8% or 9% on normalized numbers. Has that guidepost changed just given what you guys were able to do with the sequential decline in revenue? I know you guys are getting more scale, so maybe that number gravitates a little bit higher from here. No, I think the 9% is probably a good mark for the guidepost, and that shouldn't change. The reason why we have such elevated margins in the first two quarters is the market condition allows for that in the first half of the year. We're expecting that to fall back normalized to where we expect to be 9%. We are working very hard to also realize efficiencies within our own processes to maybe hopefully move that guidepost down the line. There's an element of seasonality too, right, David? You know, we're experiencing a year here that has a little bit more, call it traditional seasonality, which is, in a way, it's kinda nice to see, things are to some degree coming back to normal. Typically, Q2 is your best quarter, and then Q3, Q4, you're absorbing some summer, you know, summer elements. Of course, Q4 has the month of December, which has, you know, a certain amount of slowdown towards the end of the month. That's helpful. Kind of what I'm hearing on the call, everything seems positive. Trucking margins hanging in there. Logistics saying falling back down to 9%. You know, if I take a look at the midpoint of your guidance, it does suggest if I compare H1 to H2, it should decline by around 50% at the midpoint. Just curious if there's a lot of conservatism baked into these numbers and we should almost consider the 45-50 as low-hanging fruit. I think that, you know, we're taking an approach of confidence. You know, I guess, you know, we're cautiously optimistic. Remember that in brokerage, top line isn't necessarily bottom line in the sense that it is to some degree a cost plus business. There is more of a spot market in brokerage than there is in trucking. Trucking is primarily a contract-based business, so it's very much so a very sure and steady business. From that perspective, top line may come down, but we believe that, you know, we were able to navigate through our systems. We're able to navigate that very quickly. That's why, you know, we've got, I think, a number that makes sense to us and one that we're comfortable with. Okay. That's my three questions. I'll hop back in the queue. Thank you. Excellent. Thanks, David. Thanks. Your next question comes from Benoit Poirier of Desjardins. Please go ahead. Yes, good morning, everyone, and congrats for the good quarter. Good morning. Good morning. Yeah, just to come back on the EBITDA margin for the trucking segment. Just want to reconcile what drove the strong EBITDA margin. Obviously, there are some comments about market conditions, but given that it's mostly contractual, I'm just wondering what drove the significant increase in EBITDA margin in the quarter? Well, we're darn good at what we do, but you know, I'm gonna let Marilyn jump all over this one. Hi, Benoit. It's a couple of things. One, remember that we are now fully digested with our ITS acquisition. We were able to kind of perfect our performance in terms of utilization and conditions within that we're operating in the group. We're able to really work on our synergies and optimization there. Then of course, pricing was a factor in there as well. Yes, we have contract rates. Some of the contract rates were increased during the quarter, necessarily. We did get an effect of twofold. One was on the pricing, and two was on the optimization we were able to to sort of perfect in the quarter. Okay. That's great color. For the second half, obviously you're posting a cautious picture given the behavior of the consumer. What are the metrics that makes you confident that the EBITDA margin will decline in the second half? Or as the first question, you're kind of overly conservative at this point. I'm just curious to know more details on your confidence that EBITDA margins will soften in the second half versus the first half. We're being a little bit cautious in terms of looking at the outlook. I mean, nobody really knows exactly what's happening from a macroeconomics point of view. We're being a little bit cautious on that way. I kind of stress the market that we're in. Titanium being a truckload carrier of consumer goods and packaging, CPG, product lines and our diversity of customer base really sort of leaves us in a good position, even if we have a traditionally slower quarters for the second half of the year. Why do we say where the EBITDA margin will go down? We're just a little bit Cautious in terms of what we're looking at in terms of our customers and our consumers spending. That's why I think we're being a little bit cautious going forward. Maybe, Ted, you've got some more color on that. I think to some degree, Benoit, right, we all have a little bit of this, maybe feeling of being a little bit jittery, you know, with all of the media that's out there in terms of, you know, what people are saying in terms of, you know. Recession Concerns, recessions, etc. We don't really know. On the other hand, you know, we know that, you know, we've got a company that is approximately 60% top line is asset light, extremely malleable, very flexible, you know, very agile. We are very confident that we can work through potentially any of those type of challenges. Of course, you know, the market that we're in, as Marilyn said, in terms of truckload, are primarily consumables that are required just for the most part, people's you know, just basic needs. That's why we do have confidence, but at the same time, you know, we're again confidently cautious. Okay. In terms of the acquisition of ITS and B&S Cartage, what would be their revenue contribution from those two acquisition in the quarter, Alex? I'm gonna- Sure. I'm gonna let the numbers guy handle that, right? I mean, we have disclosed the BSC numbers in our financial statement. In terms of the ITS numbers, ITS is fully integrated, and it was integrated as of Q2-2021 as well into our financial statements. Any revenue at that point is really organic growth. I don't think disclosing that number really has much value added to your comparison. Okay. That's great color. Obviously looking at your balance sheet, very strong. Just wondering if you could maybe provide some color about the M&A environment, and especially given the pullback we saw in some trucking stock, many companies took the opportunity to buy back shares. I'm just wondering, in terms of capital allocation, whether M&A remains a priority or what about the share buyback given your strong balance sheet? Yeah. Actually, when the stock price was, let's talk about the buyback for a second. We were looking at reinstating a few months ago, in fact, when the stock price was, you know, let's just say disproportionately low, or let's just say mathematically low, we were looking at reinstating the NCIB, but we decided that we wouldn't bother because we were already in the process of working towards the graduation to the TSX, which would have required redoing the paperwork. Clearly, that's our backstop. That is something that we will put in place in the event that, you know, again, there's, you know, a lack of confidence. Having said that, obviously one of the things that we wanna do is we wanna keep growing, we wanna invest in growth. The NCIB will be there when, you know, there's a lack of confidence, and we'll buy back our own stock. If the stock price is higher, obviously, you know, we're not gonna pay a huge amount of goodwill. We're gonna use the money to grow. Having said that, we're gonna keep reducing debt until the right opportunity arises in terms of M&A. I would say then, leading to M&A, we definitely aren't any more or less interested than we're always. We always look for the right opportunity, the right fit, et cetera. Something where we can have a positive impact. You know, maybe sometimes it's technological or it could be good synergies from a geographic perspective or whatever, but we're looking to, you know, have something that's accretive. We are always looking. It's really driven by opportunity in that case. We're not high volume buyers as you can see. We do look a lot. I can tell you that even yesterday I already received several leads. Emails keep coming into my inbox with opportunity, but you know, we evaluate very quickly whether you know, something is going to make sense, and we wanna even pursue an NDA and then go into a deeper dive. We're always looking. Okay, perfect. Thanks for the color and congrats again. Thanks, Benoit. Your next question comes from Gianluca Tucci of Haywood Securities. Please go ahead. Good morning, Gianluca. Hey, good morning, guys. Congrats on a nice Q2. Thank you. Thank you. Nice to have you on the call. Thanks, guys. Nice to be here. Ted, I think you mentioned that there's gonna be one or two new locations for logistics before the end of the year. Could you kind of talk to us a bit about the type of like markets that you're interested in expanding to for that part of the business and at a high level, your targets for each new office? What do you mean targets? Do you mean, in terms of, revenue? In terms of like performance. You know, obviously, we want to exceed our sort of what we call bare-bones minimum target. Yeah, we target roughly $20-$25 million per office. That's sort of our, you know, kind of budgetary goals. Yeah benchmarks, call it that. Okay. In terms of geography, we don't necessarily need to be 50, 80, 100 offices. We're looking at expanding to some degree on geographics and demographics. I'll just add in for a sec. Gianluca, you asked about sort of a little bit of geography and where. As we've mentioned before, we always sort of focus on the who and then the where. Right. which we do know differently. We've got a bit of a farm team. We're already growing in our U.S. offices that we'll use for expansion. Our locations are largely driven by the who, not just in the talent and staffing that we're putting in that position, but also sort of where we have a network of customers we can reach out to already and kind of expand on that basis. Obviously, we've focused on the Northeast and the Midwest a little bit because that's where our trucking operations have always taken us over the years, and we were able to leverage some of our existing customers initially when we opened up our first office in Charlotte, North Carolina. Now as we move forward, we've got a little bit in the mid, a little bit in the east, one on the west, and we'll be looking to kind of expand through there. We always kind of keep geography in mind for our two segments, brokerage being our area of growth for sure and our expected focus over the next near term and long term really in terms of developing these offices. We have a good formula for it, so it's working. Our target of $20 million-$25 million per office has been achieved on almost every one of our locations. And that's sort of where we kind of focus on going forward. The geography and the opportunities kind of link together on a holistic view. Okay, perfect. Thanks. Just a question, my last question here on your CapEx plans for the balance of the year. Are there any upgrades to the fleet that's in mind or talk to us a bit about your CapEx plans. Hi, Gianluca. CapEx plan obviously changed from our last quarter. We've purchased quite a bit of equipment this quarter, but our expected CapEx actually went. We still remain at CAD 36.8 million, because we are getting more builds on. We've mentioned that with the supply chain disruption, we've had a tough time replacing equipment that needed to be replaced already. This is actually a good opportunity for us to catch up. Are we going to catch up? Our conservative estimate is no. There's still a lot of disruption in the industry, so we're expected to catch up much further down the road, but we are at a much better place than we were at a quarter earlier. Most of that is trucks. We're still very much behind on trailers. We're not seeing an end in sight on that level. We're actually quite thankful that we did get some additional support on the truck side, which is really great. We're actually quite happy about that. By middle of next year, we're gonna have a much newer fleet, which is really fantastic. Then of course, trailers becomes a different story. I'm hearing that your CapEx plans are pretty mild for at least the next few quarters into the start of 2023 where it should pick up. Is that the right way to model it? I would say it's more even across the four quarters coming up. We're definitely hoping to ramp up if trailers become more available. Okay. Right now we are planning a pretty even spread throughout the next year. Okay. All right. Thanks, guys. Again, congrats on a solid Q2. Thank you. Appreciate it. Thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one at this time. Your next question comes from Ben Jekic a private investor. Please go ahead. Okay. Good morning. Great quarter. I have a question of sort of a big picture. You mentioned fuel, wages and price of trucks and trailers as operating costs. Just curious, sort of on a conceptual level, when fuel increases, you mostly pass that on. Like, I'm assuming part is sort of worked into the contracted rates and part is a surcharge. Is that a good way to look at it? Yeah, for the most part, you want fuel to be as much as possible on a fuel surcharge program. Now, not every, call it fuel surcharge grid, in every contract is perfect. Sometimes there's a little bit of, in fact, an arbitrage where you can make a little bit more, but, for the most part, fuel is a pass-through. That one kind of fluctuates, more malleably than most of the other inputs. The inflationary pressures on pretty much every other component of, in general, I'm gonna say running a business today, are all going up. I know that fuel has maybe come down a tiny bit in the last one or two months, but it's really negligible. Quite frankly, I mean, a little bit of that is just simply the tax abatement, which isn't gonna last. That's over at the end of the year. At this point in time, you know, inflation is a reality, and that's what we need to do to just kinda keep navigating the business, is keep, you know, monitoring and navigating and using our technological navigation tools to keep running the business. As you know, with fuel surcharge, it's not an exact match of timing, so there's always a bit of a lag between the fuel surcharge adjustment and the actual fueling up at the pump. It's never 100% perfect, especially with fluctuating fuel prices when it's quick, that's when you see the a little bit of a delay in affected pricing. It does have an impact for sure. Is the dynamics of fuel surcharging, does it change? Or let's say, will it change when eventually the fuel prices start declining versus when it's growing? I think you just keep going on the tables, right? Each customer, big customers have their own fuel surcharge tables, and those tables would be built into your systems. You just get updated. Every customer has a different timeline. Some customers have weekly, some are monthly, some are quarterly. It all depends on, you know, what table, and they rely on different sources. Right. Okay, I may have a couple more questions, but I'll take that offline. Thank you. Okay. Sounds good. Thank you. Congrats. Thanks, Ben. There are no more questions from the phone lines. I will turn the conference back to Mr. Daniel for closing remarks. Okay. 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 highly appreciate your interest in Titanium. If there are any further questions, please feel free to contact us. Thank you everyone for joining this morning's call. Ladies and gentlemen, this concludes your conference for this morning. We would like to thank everyone for your participation and ask you to please disconnect your lines.