• Solid Q4 2023 results supported by 32% year-over-year growth in the trucking segment, reflecting revenue contribution from recent asset-based expansion into the United States.

• Second consecutive quarter of organic growth in logistics, highlighted by 9.3% volume growth year-over-year in Q4, amid challenging market conditions.

BOLTON, Ontario, March  18, 2024  (GLOBE NEWSWIRE) -- 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 and fiscal year ended December 31, 2023. All amounts are in Canadian currency.

Ted Daniel, Chief Executive Officer, Titanium Transportation Group, commented, "In 2023, the freight transportation industry faced a challenging market including excess capacity, downward pressure on pricing and escalating operating costs. Despite these headwinds, Titanium delivered sustainable and profitable growth. In fact, 2023 was the second-best year in company history; we generated $10.2 million in net income, paid $3.6 million in dividends, while buying back $2.6 million in stock. Complementing our focus on profitability, cash management and consequently a strengthening balance sheet, we were able to utilize $39.9 million in cash for our first US asset-based acquisition – Crane Transport. This significantly augments our opportunities to continue our US expansion strategy and drive growth. We expect overall growth to be a combination of organic growth in our brokerage business and opportunistic acquisitions of new asset-based entities."

"We enter 2024 from a position of strength as our recent strategic acquisition of Crane positions us to drive growth in our US-based logistics business," said Mr. Daniel. "Moreover, with a recently completed fleet refresh we will have a reduced need for capital expenditures. We also expect to generate substantial free cash flow over the next 24 months, to aggressively pay down our debt, distribute dividends to shareholders and opportunistically buy back stock through our normal course issuer bid."

"Our continued focus remains on scaling for future growth and generating long-term value for our shareholders," Mr. Daniel concluded.

Q4 2023 Financial Highlights compared with Q4 2022

• Consolidated revenue of $119.3 million, a 7.6% increase over Q4 2022.

• EBITDA1 of $14.9 million, flat compared to $14.9 million in Q4 2022. EBITDA Margin1 of 14.2%, compared to 15.9%.

• Logistics segment revenue of $52.0 million, a 14.9% decrease compared to Q4 2022. EBITDA1 of $4.7 million and EBITDA Margin1 of 9.9%, compared to $6.6 million and 12.2% in Q4 2022.

• Truck Transportation segment revenue of $67.8 million, a 32.1% increase over Q4 2022. EBITDA1 of $11.1 million, an increase of 17.7% over Q4 2022, with an EBITDA Margin1 of 19.1%.

FY 2023 Financial Highlights compared with FY 2022

• Consolidated revenue of $438.7 million, compared to $496.4 million in FY 2022.

• EBITDA1 of $52.9 million, compared to $60.7 million in 2022 and EBITDA Margin1 of 13.8%, compared to 14.2%.

• Logistics segment revenue of $212.4 million, compared to $287.2 million in 2022. EBITDA1 of $17.9 million and EBITDA Margin1 of 9.4%, compared to $30.0 million and 11.7%.

• Truck Transportation segment revenue of $231.0 million, a 7.8% increase over FY 2022. EBITDA1 of $38.9 million, an increase of 12.7% over 2022, with an EBITDA Margin1 of 19.7%.

• Total net income per share of $0.22, fully diluted, compared with total net income per share of $0.55, fully diluted, in 2022.

Summary of Q4 2023 Financial Results (in thousands $CAD)

EBITDA to Net Income (in thousands $CAD)

Developments Subsequent to Q4 2023

• On February 20, 2024, the Company declared a quarterly dividend of $0.02 per common share, payable on March 15, 2024, to shareholders of record at the close of business on February 29, 2024. The amount of the dividend is consistent with the Company's previous dividend.

2024 Outlook

Ted Daniel, Chief Executive Officer, Titanium Transportation Group, noted, "The headwinds experienced by the transportation and logistics industry in 2023 have persisted in the first two months of 2024. Nonetheless, we believe conditions will improve in the second half of 2024 and are beginning to see signs of excess capacity exiting the market. Notwithstanding end-market conditions, we remain optimistic that by drawing on our proprietary systems, such as our Titanium Fusion Portal, and experienced team, Titanium will continue to execute on our growth plan and deliver profitable organic growth in 2024. We strongly believe a prudent capital management strategy coupled with good governance is the backbone to current and long-term sustainable growth."

2024 Guidance

Titanium's guidance for 2024, assumes no change in the current economic environment and excludes the impact of any future acquisitions.

• Consolidated Revenue: $490 to $510 million

• EBITDA Margin: 10.0% to 12.0%

Conference Call

The Company will also hold a conference call for analysts and investors with Ted Daniel, President and Chief Executive Officer on Tuesday, March 19, 2024, at 8:00 a.m. Eastern Time, to discuss these results.

Details of the conference call:

Date: Tuesday, March 19, 2024
Time: 8:00 a.m. ET
North America dial-in number: 1-888-886-7786
International dial-in number: 1-416-764-8658

A replay of the conference call can be accessed until midnight on April 2, 2024.

Details of the replay:
North America dial-in number: 1-877-674-7070
International dial-in number: 1-416-764-8692
Conference ID: 09112139
Passcode: 112139#