Titan Machinery Inc. Announces $24 Million Repurchase of Convertible Notes
September 14 2016 - 12:21PM
Titan Machinery Inc. (Nasdaq:TITN), a leading network of
full-service agricultural and construction equipment stores, today
announced the additional repurchase of senior convertible notes.
The Company repurchased, in privately negotiated
transactions, an additional $24 million principal amount of its
3.75% senior convertible notes due 2019 for $20.9 million in cash,
and expects to recognize a pre-tax gain of approximately $1.0
million in the third quarter of fiscal 2017. This gain was
not considered in the modeling assumptions discussed in the second
quarter of fiscal 2017 earnings release as the Company will
consider it an adjustment to GAAP income (loss) in the third
quarter of fiscal 2017.
David Meyer, Titan Machinery’s Chairman and
Chief Executive Officer, stated, “Our continued reduction in
inventory and the accompanying positive operating cash flow,
has enabled us to retire our convertible notes by an additional $24
million ahead of the maturity date and at a meaningful
discount. We have now repurchased over $50 million of our
senior convertible notes during fiscal 2017. We continue to
take the necessary steps to manage through this challenging
operating environment by reducing our equipment inventory,
generating positive cash flow, deleveraging our balance sheet, and
reducing our interest expense.”
Mr. Meyer concluded, “As we look towards the
future, we believe we are taking the necessary actions to be well
positioned to capitalize on long-term positive agriculture
trends."
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and
headquartered in West Fargo, North Dakota, is a multi-unit business
with mature locations and newly-acquired locations. The Company
owns and operates a network of full service agricultural and
construction equipment stores in the United States and Europe. The
Titan Machinery network consists of 91 North American dealerships
in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska,
Wyoming, Wisconsin, Colorado, Arizona, and New Mexico, including
one outlet store, and 19 European dealerships in Romania, Bulgaria,
Serbia, and Ukraine. The Titan Machinery dealerships represent one
or more of the CNH Industrial Brands (CNHI), including CaseIH, New
Holland Agriculture, Case Construction, New Holland Construction,
and CNH Industrial Capital. Additional information about Titan
Machinery Inc. can be found at www.titanmachinery.com.
Forward Looking Statements
The statements in this release regarding the
expected third quarter gain and long-term agricultural trends are
forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
These statements are based upon the current beliefs and
expectations of our management and involve known and unknown risks
and uncertainties that may cause actual results or events to differ
materially from the forward-looking statements. These and
other risks are more fully described in Titan Machinery’s filings
with the Securities and Exchange Commission, including the
Company’s most recently filed Annual Report on Form 10-K, as
updated in subsequently filed Form 10-Q reports, as applicable.
Titan Machinery conducts its business in a highly competitive and
rapidly changing environment. Accordingly, new risk factors may
arise. It is not possible for management to predict all such risk
factors, nor to assess the impact of all such risk factors on Titan
Machinery’s business or the extent to which any individual risk
factor, or combination of factors, may cause results to differ
materially from those contained in any forward-looking statement.
Titan Machinery disclaims any obligation to update such factors or
to publicly announce results of revisions to any of the
forward-looking statements contained herein to reflect future
events or developments except as required by law.
Investor Relations Contact:
ICR, Inc.
John Mills, John.Mills@ICRINC.com
Partner
646-277-1254
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