Titanium Transportation Group Posted Robust Q3 2023 Performance Amidst Economic Challenges

BOLTON, ON – Titanium Transportation Group Inc. (TSX:TTNM, OTCQX:TTNMF) has announced its financial outcomes for the three and nine-month duration concluding on September 30, 2023.

In a resilient showcase amidst a challenging economic landscape, the company has reported a noteworthy 14% quarter-over-quarter surge in revenue within its trucking segment, primarily attributed to contributions from a recent U.S. acquisition.

The strategic U.S. asset-based acquisition of Crane Transport (“Crane”), based in Oakwood, Georgia, has bolstered Titanium’s fleet with an addition of two hundred trucks. Additionally, it has fortified its presence in North America with two strategically positioned terminals in Georgia and Alabama. This move has injected approximately US$60 million in annual revenue, further augmenting Titanium’s regional influence.

The Crane acquisition seamlessly aligns with Titanium’s ongoing expansion of its non-asset-based logistics network. This expansion notably featured the inauguration of the company’s seventh U.S. office in Jacksonville, Florida, during the quarter.

Breaking down the revenue figures, the Truck Transportation segment reported $62.4 million, displaying a notable increase from $54.9 million in Q3 2022. Conversely, the Logistics segment posted revenue of $51.5 million, compared to $59.6 million in the same quarter of the previous year.

The completion of the U.S.-based asset acquisition of Crane Transport, Inc. strategically positions Titanium to elevate its service offerings, deploying Titanium-branded trucks in key U.S. transportation hubs, particularly in Georgia and Alabama. Simultaneously, the announcement of the Company’s seventh U.S. Freight Brokerage office in Jacksonville, FL, underscores its commitment to expanding its service capabilities.

In commenting on the performance, Ted Daniel, Chief Executive Officer of Titanium Transportation Group, remarked, “During the third quarter of 2023, our industry grappled with significant headwinds, including adverse economic conditions, soft demand, and overcapacity. Despite these challenges, our company demonstrated strength, reporting another robust and profitable quarter, primarily fueled by growth in revenue from our trucking segment.”

Mr. Daniel emphasized the company’s commitment to sustainable growth, highlighting the successful completion of the Crane acquisition as a strategic move for continued U.S. expansion. He stated, “With the integration of Crane well underway and a solid foundation in place, Titanium is well-positioned to scale for future, long-term, sustainable growth.”

“Titanium’s success is rooted in the strength of our people, business processes, and technology. With the acquisition of Crane, along with our new Freight Brokerage offices, we remain steadfast in our focus on cost control and profitability while building towards our future growth,” added Mr. Daniel. He anticipates macroeconomic uncertainty for the rest of 2023 but remains optimistic about the company’s ability to weather these conditions and drive growth when the trucking cycle turns. Mr. Daniel foresees improvements in the market during the second half of 2024, with reductions in supply to the freight market, paving the way for additional organic growth and shareholder value.

As a leading North American transportation company, Titanium operates asset-based trucking operations and logistics brokerages, serving both Canada and the United States. With approximately 1000 power units, 3,300 trailers, and a team of 1,300 employees and independent owner-operators, Titanium provides a range of services including truckload, dedicated, and cross-border trucking services, logistics, and warehousing and distribution, catering to over 1,000 customers.