WOODBRIDGE, ON – The trucking and logistics company Titanium Transportation Group Inc. moved from a profit to a loss in the second quarter of the year following its purchase of rival Muskoka Transport Ltd. in March.
It reported a net loss of $1.36 million compared to a profit of $721,000 during the second quarter of 2014, which translates into a loss of $0.04 per diluted share versus a profit of $0.03 per diluted share. However, total revenue increased 90 percent during the same time frame to $32.4 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter rose 110 percent over the past year to $3.4 million.
Truck transportation revenue rose to $20.2 million, a 110 percent increase over the second quarter of 2014 with EBITDA margin increasing to 13.1 percent from 12.8 percent in the second quarter of 2014.
Logistics revenue rose to $12.4 million, a 64 percent increase over the second quarter of 2014 as its EBITDA margin increased to 13.1 percent from 7.5% in the second quarter of 2014.
“Titanium continues to benefit from the strength in our diverse customer base, primarily located in Central Canada, and the broader growth in the U.S. economy,” said Ted Daniel, CEO.
Revenue for the company, based on origin of service, increased in Canada from $9.2 million a year earlier to $21.4 million in the most recent quarter, while U.S. business moved higher from $7.8 million to $11 million.
On March 1 Titanium completed its purchase of Muskoka and is now fully integrated. Since then it estimates that Muskoka contributed revenue of $10.7 million and a net loss of $597,696. It said if the company were acquired the first of this year it would have contributed revenue of $15.7 million and a net loss of $1.06 million.
Despite the downturn in profit in the second quarter Titanium said it is actively pursuing additional acquisitions.
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