BOLTON, Ont. – Titanium Transportation Group reported stronger third quarter revenue and improving volumes, but profits were negatively affected by the weakening U.S. dollar.
Still, the company is optimistic trucking conditions will improve in the months to come. Titanium revenue was up 6% to $31.5 million in the third quarter. It acquired Windsor-based Xpress Group in the quarter and implemented a share purchase plan for staff and drivers.
“Titanium experienced strong volume growth this quarter – customer demands are increasing and we increased our truck and driver capacity in response,” said Ted Daniel, CEO of Titanium Transportation Group. “The weak U.S. dollar muted these results, but improving volumes should translate into an improved bottom line as we expect contract rates to improve in the new year.”
Logistics group revenue saw the sharpest growth, up 22% to $11.1 million, while truck transportation segment revenue slipped 2%.
Net income was down year-over-year, with no profit recorded compared to $100,000 in the third quarter last year. But year-to-date, profit is $400,000 compared to a loss of $200,000 over the same period in 2016.
“Capacity is tightening and rates are improving,” said Daniel. “Anchored by our recent acquisition of Xpress Group, we reiterate our revenue and EBITDA run rates of $140 million and $15 million, respectively. We expect that Xpress will be a relatively straightforward integration and with access to $24 million of undrawn credit facilities, we remain committed to our acquisition strategy.”