Earnings release
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Titanium Transportation Group Reports 7.5% YoY Revenue Growth and Further Debt Reduction in Spite of Market Challenges • Consolidated revenue for Q1 2025 improved 7.5% year-over-year, to $121 million. • Logistics revenue increased 17.6% year-over-year, driven by 9% volume growth, highlighting continued customer wins and the scalability of Titanium’s asset-light model. • Strategic divestiture of non-core assets generated $1.7 million in proceeds, contributing to a stronger balance sheet with $10.7 million reduction in loans and lease liabilities, enhancing financial flexibility. • Quarter-end cash totaled $18.3 million, up from $4.3 million at December 31, 2024. • Expanded US logistics footprint to nine locations with new brokerage office in Irving, TX. BOLTON, Ontario, May 13, 2025 -- 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 period ended March 31, 2025. All amounts are in Canadian currency. Q1 2025 Financial and Business Highlights Compared with Q1 2024 • Consolidated revenue growth of 7.5 per cent to $121 million, compared to $113 million in Q1 2024 • Consolidated EBITDA1 of $8.8 million, compared to $9.7 million in Q1 2024, with consolidated EBITDA Margin1 of 8.2% • Cash flow from operating activities increased to $15.0 million, compared to $6.2 million in Q1 2024. • Truck Transportation segment revenue of $56.1 million, down 2.2% compared to $57.3 million in Q1 2024 • Logistics segment revenue of $66.1 million, up 17.6% compared to $56.2 million in Q1 2024 • Fully diluted adjusted net income per share from continuing operations of ($0.08), compared to Fully diluted adjusted net income per share from continuing operations of ($0.05) in Q1 2024. • Cash increased by $14.0 million, reaching $18.3 million at March 31, 2025. • Repaid $10.7 million in loans and finance leases • Scaled asset-light model in the U.S. freight brokerage market with the opening of logistics office in Irving, TX, bringing U.S. footprint to nine locations. Ted Daniel, Chief Executive Officer, Titanium Transportation Group commented “Titanium entered 2025 delivering 7.5% year-over-year consolidated revenue growth in Q1, despite ongoing market headwinds. “The results were driven in large part by strong performance in our logistics segment, which grew revenue by over 17%. Our asset-light, high return on invested capital logistics model continues to scale efficiently, with new US freight brokerage offices demonstrating attractive early returns and strong customer uptake. “We also maintained a prudent approach to capital allocation, reducing debt by $10.7 million in the quarter and reallocating proceeds from non-core asset divestitures to strengthen the balance sheet and support high growth opportunities in logistics. As a result, cash flow from operating activities more than doubled to $15.0 million, and cash on hand increased by $14 million during the quarter, underscoring our focus on disciplined execution and strong cash flow generation. “While macro conditions remain challenging, sequential trends improved through the quarter, and early Q2 indicators point to continued recovery. With a more focused platform, growing logistics footprint, and enhanced financial flexibility, Titanium is well-positioned to deliver sustainable growth and long-term shareholder value,” added Mr. Daniel. Summary of Q1 2025 Financial Results (in thousands $CAD) Q1 2025 Q1 2024 % Change Consolidated Results Revenue 121,405 112,921 7.5% EBITDA1 8,796 9,684 (9.2%) EBITDA margin1 8.2% 9.8% Net Income (3,387) 681 (597.4%) Net Income per share (0.08) 0.02 Truck Transportation Revenue 56,087 57,352 (2.2%)
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EBITDA1 6,563 7,715 (14.9%) EBITDA margin1 13.3% 15.7% Logistics Revenue 66,101 56,223 17.6% EBITDA1 3,318 3,069 8.1% EBITDA margin1 5.6% 6.1% EBITDA to Net Income (in thousands $CAD) Q1 2025 Q1 2024 Net Income (3,387) 681 Add(deduct) Gain on sale of equipment 3,581 (1,394) Finance costs 2,700 3,680 Finance income (99) (102) Foreign exchange (199) 1,267 Income taxes (1,116) (464) Discontinued Operations 0 (3,068) Operating Income 1,480 600 Depreciation 7,316 8,617 Amortization of intangible assets 0 467 EBITDA 8,796 9,684 2025 Outlook “As we progress through 2025, the freight market remains challenging, marked by ongoing rate pressure, demand softness, and uncertainty around tariffs. While cross-border activity may encounter headwinds, it is worth highlighting that approximately two-thirds of Titanium’s volume is non-cross border and not directly exposed to potential tariff risks,” noted Mr. Daniel. Our investment in our people and technology, and our focus on service, safety, fraud prevention and cyber security, is differentiating TTGI from our competition and enhancing the value equation for our customers. In recent months, we have seen examples of top tier customers, restoring or expanding their business with us after having tried other carriers, as well as bringing new customers on board. “By staying focused on customer service, productivity and cash flow, Titanium is positioned to emerge stronger as freight conditions normalize,” added Mr. Daniel. 2025 Guidance Amid ongoing macroeconomic uncertainty, freight market volatility, and unpredictable tariff backdrop, Titanium Transportation will continue to withhold formal guidance at this time. The Company remains confident in the fundamentals of the business and is focused on operational execution, margin preservation and cash generation. Conference Call The Company will also hold a conference call for analysts and investors with Ted Daniel, President and Chief Executive Officer, Wednesday, May 14, 2025 at 8:00 a.m. Eastern Time, to discuss these results. Details of the conference call: Date: Wednesday, May 14, 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 May 27, 2025. Details of the replay: North America dial-in number: 1-888-660-6264 International dial-in number: 1-289-819-1325 Conference ID: 96651 Passcode: 96651#
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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
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For Investors James Bowen 416-519-9442 James.Bowen@loderockadvisors.com