Titanium Transportation Group (TSX:TTR.VN) will continue to grow this year after a record 2018, and plans to expand its fleet and hire more drivers, the Canadian trucking and logistics company’s CEO said.
“We’d like to achieve similar results,” CEO Ted Daniel said during a call with analysts today (March 6), a day after the release of the company’s fourth quarter and full-year report. The company increased its full-year revenue by 43 percent, to C$184.8 million (A Canadian dollar currently is valued at US$0.75), and earnings before tax and other charges, or EBITDA, rose by 55 percent, to C$5.4 million.
Ontario-based Titanium did not provide specific guidance for the year, but Daniel said he felt the company was well-positioned for the year despite volume growth being slower than at the beginning of 2018.
“We’re a very young company in many ways,” Daniel said. “Right now we’re growing – and investing in technology.”
Titanium has purchased 14 trucks since the start the year and may purchase up to 54 more in 2019, in addition to up to 160 trailers. Daniel said the trucks would largely add new stock to the fleet, which stood at 475 power units and 1,400 trailers.
Titanium also plans to add more drivers following a 14 percent increase in 2018, and expects turnover will remain low.
Operating margins, which stood at 3.7 percent, for 2018, will also improve during the year, said chief operating officer Marilyn Daniel. The recent implementation of the BlackBerry Radar tracking system has significantly improved efficiency and allowed Titanium to reduce trailer counts, she said.
The Bolton, Ontario-based firm also will continue to look for potential acquisition targets in its trucking and logistics businesses.
“We’re not against expanding beyond Canadian border,” Ted Daniel said.
Daniel also addressed the forthcoming electronic logging device (ELD) mandate, which comes into force in Canada in 2020. He said customers are requesting larger quotes and moving toward contracted freight to get ahead of the capacity crunch.