Titan Logix Corp. Reports Fiscal 2024 Q1 Financial Results

Edmonton, Alberta, April 17, 2024 – Titan Logix Corp., (TSX Venture: TLA) (“Titan” or the “Company”), a technology company specializing in mobile liquid measurement solutions, announces its interim results for the three- and six-month periods ended February 29, 2024.

Fiscal 2024 Second Quarter Financial Results

“We are seeing steady demand for our products in the crude and used oil markets, focusing our sales and marketing efforts on gaining market share with existing fleet turnover and developing new fleet accounts” says Nick Forbes, CEO at Titan. “We are also excited to be gaining traction in the fuels market, and we will continue to focus on our diversification strategy over the coming quarters.

The second quarter results reflect a stable production rate from Tanker OEMs, mirroring the activity seen in the first fiscal quarter.  We expect a similar level of demand in the 3rd quarter for Titan’s TD100™ series products in the Crude and Used Oil segments. We also have several new business opportunities in the Refined Fuel and Chemical market segments, as a result of our key business development initiatives.

Titan has been focusing on business development activities with key players in the Refined Fuels market. Undertaking several pilot trials in the third and fourth quarter of this year, the pilot trials are expected to take 3-5 months, equipping 1-5 trucks with Titan TD100™ systems and Titan’s Rack Control Module (RCM).

Longer term, our product development initiatives are focused on a next generation of product that will be cost-effective and designed to fit multiple end-use applications. As part of our technology modernization strategy, we are conducting pilot trials with T-Connect, Titan’s first mobile application that works on iOS and Android devices. T-Connect is a software tool that will drive adoption of the TD100™ system in new and existing market segments. We currently have 8 fleet customers piloting T-Connect, and we expect to scale this number over the course of the 3rd and 4th quarter in fiscal 2024. T-Connect underscores Titan’s commitment to being the market leader in advanced technology for tanker trucks.

Our investment strategy is to commit the necessary resources to penetrate new mobile liquid market segments, and the development of value-added products and software solutions to these market segments. The Company invests its non-operating cash reserves in conservative interest-bearing accounts and marketable securities. Acquisition opportunities are considered where it complements our growth strategy or enables the monetization of our connected strategy.”

Q2 FISCAL 2024 HIGHLIGHTS

  • Revenues for the second quarter of fiscal 2024 increased by 15% to $1,750,979 compared to $1,521,908 in the second quarter of fiscal 2023. Through six months, the Company’s revenues have increased by 8% to $3,264,837 compared to $3,025,028 through six months of fiscal 2023. The Company continues to see increased demand for its core product line as Tanker OEMs remain at peak production capacity.
  • Gross Profit increased to 822,546 or 47% of revenue in the second quarter of fiscal 2024 compared to $799,152 or 53% of revenue in the second quarter of fiscal 2023. During the six-month period ended, gross profit decreased to $1,602,575 or 49% of revenue compared to $1,635,773 or 54% of revenue. The decrease in gross margin resulted from an increase in unit manufacturing input costs due to inflationary price increases in components.

  • The Company incurred product research and development expenses(1) in the current quarter of $247,463 on activities to support the Company’s diversification and growth into new markets compared to $34,698 incurred in the same period of fiscal 2023. During the six-month period ended, product research and development expenses(1) increased to $513,121 compared to $48,704 incurred in the comparative period. In fiscal 2023, the Company unveiled a strategic growth plan focused on updating its core product line and diversifying its business.

  • The Company’s net earnings increased by $154,480 to $244,716 in the second quarter of fiscal 2024 compared to net earnings of $90,236 in the second quarter of fiscal 2023. Through six months, net earnings decreased by $659,816 to a net loss of $159,896 compared to net earnings of $504,920 in fiscal 2023. The decrease in net earnings over the comparative period was driven by increased product research and development expenditures on its strategic growth initiatives and non-cash fair value losses recorded in other non-operating items, specifically an unrealized loss of $303,125 recorded in the current fiscal year on the Company’s investment in shares of Bri-Chem Corporation compared to an unrealized loss of $72,750 recorded in the same period of fiscal 2023.

  • The performance of the core business improved in the second quarter with reported Operating EBITDA(1) of $275,492 in the second quarter of fiscal 2024 versus $224,630 in the comparative period. Through the six-months ended, Operating EBITDA(1) decreased by $112,901 to $481,372 compared to $594,273 for the six-months ended February 28, 2023.

The Company’s interim consolidated financial statements and the management’s discussion and analysis (“MD&A”) which includes the Company’s Business Outlook, for the three- and six-month periods ended February 29, 2024, are available on SEDAR+ at www.sedarplus.ca and the Company’s website, www.titanlogix.com.  

NON-IFRS MEASURES

The Company uses certain measures in this MD&A that do not have a standardized meaning as prescribed by IFRS (International Financial Reporting Standards) and thus are prohibited from being disclosed in the consolidated financial statements. These measures, which are derived from information reported in the Company’s consolidated financial statements, may not be consistent with similar measures presented and disclosed by other reporting issuers. However, management believes that this information provides increased insight into the Company’s strategic plan to address the broader mobile liquid markets. Readers are cautioned that these non-IFRS measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS

About Titan Logix Corp.:

For over 25 years, Titan Logix Corp. has designed and manufactured mobile liquid measurement solutions to help businesses reduce risk and maximize efficiencies in bulk liquids transportation. Titan’s TD Series of tank level monitors are a market leader in mobile fluid measurement, and are known for their high level of accuracy, rugged design, and solid-state reliability. Our solutions are designed for hazardous and non-hazardous applications, and we serve customers in a wide range of applications including petroleum, environmental solutions, chemical, and agriculture.

Founded in 1979, Titan Logix Corp. is a public company listed on the TSX Venture Exchange and its shares trade under the symbol TLA.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the company is subject to a number of risks and uncertainties and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our Management Discussion and Analysis in respect of the year ended August 31, 2021 which is available at www.sedar.com. In addition, the occurrence of pandemics, such as the recent outbreak of the novel coronavirus COVID-19 in any of the areas in which the Company, its customers or its suppliers operate could cause interruptions in the Company’s operations. In addition, pandemics, natural disasters or other unanticipated events could negatively impact the demand for, and price of, oil and natural gas which in turn could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

Contact Information:  

Nick Forbes
Chief Executive Officer
Ph: (403) 561-8095
Email: [email protected]

www.titanlogix.com
TSX Venture, TLA