Titanium Transportation Group (TSX-V:TTR) reported a 13.6% increase in revenue in the first quarter Tuesday as the Canadian company’s U.S. brokerage more than offset slightly weaker performance from its cross-border trucking business.
Ontario-based Titanium posted a net income of C$0.6 million, or C$0.02 per share, on C$44.3 million in revenue. It compared to C$0.5 million, or C$0.01 per share, on C$39 million during the first quarter of 2019.
“Our results were excellent given the current economic backdrop,” CEO Ted Daniel said in a statement. “A heartfelt thank you to our team who stepped up to maintain uninterrupted service to our valued customers, many of whom are involved in essential supplies.”
Revenue from Titanium’s logistics business shot up by 49.1% in the quarter to $C18 million compared to a year earlier. The growth largely came from its single U.S. brokerage office in Charlotte, North Carolina, established in 2019. The company plans to open a second office in Nashville, Tennessee, in June.
Titanium’s core trucking business held its own as COVID-19 hit the cross-border Canada-U.S. and domestic Canadian freight markets. Revenue fell by 1.6% to C$27.6 million, while earnings before interest, income taxes, depreciation and amortization from the segment held steady at C$4 million.
Importantly, Titanium has boosted its free cash flow and paid down debt as it prepares for the next stage of growth — likely through an acquisition. The company has $12.5 million available in credit facilities for acquisitions.
The company generated C$3.8 million in free cash flow during the quarter compared to C$2 million a year earlier.
The company said it has temporarily halted discretionary capital spending because of COVID-19 but did not disclose any layoffs.
Daniel will discuss the results with analysts on Wednesday.