Titanium Transportation Group (TSX-V:TTR) plans to open at least two new freight brokerage offices in the U.S. this year, the Canadian trucking and logistics firm’s CEO told financial analysts on Wednesday following a record second quarter.
Titanium’s U.S. brokerage business — consisting of offices in Charlotte, North Carolina; Nashville, Tennessee; and Chicago — has rapidly become a major growth driver since its inception in 2019. It generated CA$39.4 million ($31.5 million) in revenue in the second quarter, 680% higher than a year ago, when Titanium had a single brokerage office.
CEO Ted Daniel did not identify the locations but said the first likely would open soon. Daniel said he expected strong growth would continue from the segment, though he cautioned the pace would likely be slower.
“While our U.S. logistics business continues to deliver significant growth and U.S. activity levels are expected to remain robust, we expect some moderate moderation to a more sustainable pace,” he said.
Titanium hopes to open 10 brokerage offices by 2024. Daniel estimated that each can bring in about $25 million in revenue per year.
He made the comments after Titanium reported exceeding CA$100 million in quarterly revenue for the first time as the company reaped the benefits of the U.S. brokerage growth and its acquisition of cross-border carrier International Truckload Services (ITS).
Titanium reported adjusted net income of CA$800,000, or 2 cents per share, on CA$100.8 million in revenue. Earnings before interest, taxes, depreciation, and amortization came in at CA$7.7 million.
The company’s cross-border trucking business had adjusted EBITDA of $3.7 million on $44.8 million of revenue. The revenue came in 83% higher than a year ago thanks to the February acquisition of ITS, while adjusted EBITDA was just slightly higher.
The company is wrapping up the integration of ITS after acquiring the Ontario-based firm for CA$60 million. It expects to see improvements to the profitability of its trucking business in the second half of the year.