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Titanium posts Q2 loss due to one-time costs, Muskoka acquisition

WOODBRIDGE, Ont. — Fast-growing Titanium Transportation Group posted a Q2 loss of about $1.36 million, despite growing its revenue by 90%.

During the first six months of 2015, the company lost $616,944 compared to a net income of $1.085 million over the same time period in 2014.

Revenue rose to $32.4 million in the quarter, up from $17.1 million in the second quarter of last year. Revenue for the six-month period ending June 30 was $56.4 million, compared to $31.4 million over the same period in 2014.

Titanium says it has now fully integrated Muskoka Transport and it is actively pursuing other acquisitions. However, the Muskoka acquisition appears thus far to have been a drag on the company’s bottom line.

Muskoka contributed a net loss of $597,696 from the date of its acquisition on March 1, despite adding $10.7 million in revenue.

The one-time costs of going public also weighed on the company’s finances.

Net income from operations was a positive $138,119 (trucking) and $1.12 million (logistics) before corporate costs were deducted. Similarly, trucking profits of $676,571 and logistics profits of $1.82 million were reported for the first six months before corporate costs related to Titanium’s public filing were deducted.

Despite the loss, management remains upbeat about its position in the marketplace.

“Titanium continues to benefit from the strength in our diverse customer base, primarily located in Central Canada, and the broader growth in the US economy,” said CEO Ted Daniel.

The company also reported Muskoka’s EBITDA margin in the second half of 2015 will fall into line with Titanium’s pre-existing truckload operations.

Within Titanium, the Truck Transportation division contributed $20.2 million in revenue – a 110% increase over Q2 2014 – with an EBITA margin of 13.1%. Its Logistics revenue rose to $12.4 million – a 64% increase over Q2 2014 – with an EBITDA margin of 13.1%.

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