WOODBRIDGE, Ont. — Titanium Transportation Group saw earnings decrease 11% year-over-year in the first quarter, despite higher revenues.
Revenues were up 17% but EBITDA was down 11%, to $2.5 million, due to the integration of ProNorth Transportation and a weaker quarter for the logistics division. Titanium’s logistics revenue was down 27% to $7.2 million.
Logistics EBITDA margin decreased to 4.1% from 10.5% in the first quarter, due to worsening economic conditions, the company reported. Titanium said, however, that logistics volumes and margins have improved in the second quarter to levels in line with historical norms. Q1 revenue for the company totaled $28.1 million.
Titanium said it has: integrated ProNorth Transportation’s technology; will complete the full ProNorth integration by Q3; a high visibility of M&A targets; $28 million in undrawn credit facilities; and is fully funded to execute its acquisition strategy in 2016.
“We increased margins in our Truck Transportation division relative to Q4 2015 as a result of continuing margin improvement post the integration of Muskoka,” said CEO Ted Daniel. “It was a challenging quarter in our logistics division due to an oversupply of trucks; however, we are seeing significant improvements in the second quarter as industry conditions continue to improve.”