Titanium Transportation Group (TSX-V:TTR) reported record revenue in the first quarter on Tuesday as the Canadian firm’s U.S. brokerage business and newly expanded cross-border trucking fleet delivered growth on two fronts.
The Ontario-based company brought in CA$85.7 million ($70.8 million) in revenue during the quarter — an increase of over 93% from a year ago. Net income rose by over 80% to CA$1.17 million, or 3 cents per share, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose by over 65% to CA$7.5 million.
Titanium’s U.S. brokerage business continued its standout performance. It was largely responsible for the revenue in its logistics segment increasing by over 164% to CA$47.5 million, while EBITDA jumped by over 600%.
The company opened its third U.S. brokerage office in February, in Chicago. The lean operations, which include locations in Nashville, Tennessee, and Charlotte, North Carolina, have allowed Titanium to tap into the much larger domestic U.S. freight market with relatively small investments.
“We are excited about the significant growth opportunities in the U.S. where we can apply our proven business model, technology and expertise to deliver enhanced, sustainable performance and create long-term shareholder value,” CEO Ted Daniel said in a statement.
The trucking side also had a strong quarter from a revenue perspective, increasing by nearly 42% to CA$39.2 million. CA$12 million of that revenue came from its CA$60.5 million acquisition of ITS Group, which closed during the quarter.
However, the trucking segment posted a small operating loss for the quarter of CA$600,00 on the lower margins connected with the ITS acquisition. The deal added over 300 power units to Titanium’s fleet, which is now within striking distance of the 10 largest in Canada.
Titanium is integrating ITS and expects that margins will normalize during the second half of the year.
Daniel will discuss the results in a conference call with financial analysts on Wednesday morning.
Related coverage
Titanium buys ITS, joins big leagues of Canadian trucking
Titanium sets record in Q4 with sights set on huge ’21
Titanium Transportation opens Chicago freight brokerage