QUINCY, Ill., Aug. 3, 2017 /PRNewswire/ --
Second Quarter Highlights
- Net sales increased 10% year-over-year
- SG&A expenses were reduced by $1.9 million, or 5%
- Operating income improved by $1.4
million, or 53% year-over-year
- EPS of $(0.17) was negatively
impacted by currency exchange loss of $5.3
million ($0.08 per
share)
- Cash, cash equivalents, and certificates of deposit ended
the second quarter at $153.2
million
Titan International, Inc. (NYSE: TWI), a leading global
manufacturer of off-highway wheels, tires, assemblies, and
undercarriage products, today reported results for the second
quarter ended June 30, 2017.
Net sales for the second quarter of 2017 were $364.4 million, an increase of 10 percent when
compared to $330.2 million in the
second quarter of 2016. Net loss applicable to common shareholders
for the second quarter of 2017 was $10.3
million, versus $5.2 million
in the second quarter of 2016.
Net sales for the first six months of 2017 were $721.9 million, an increase of 11 percent when
compared to $652.0 million in the
first six months of 2016. Net loss applicable to common
shareholders for the first six months of 2017 was $20.8 million, versus $23.1 million for the first six months of
2016.
Paul Reitz, President and Chief
Executive Officer, commented, "Our second quarter results mark the
second consecutive quarter of significant year-over-year growth in
net sales. Our top line growth of over 10 percent included an
18 percent improvement within our Agriculture (AG) segment.
Following a protracted downturn of more than four years, these
results continue to demonstrate early signs of a recovery and
provide optimism moving into 2018. AG continues to be
sluggish at the OEMs, but our moves in the North America aftermarket have benefited Titan
thus far in 2017. Along with the AG gains this quarter, we
continue to see market conditions improve in aftermarket mining and
construction which fits well with our strategy that was launched
almost two years ago to position ourselves to capture more of this
business.
"The current quarter saw sequential gross margin improvement, up
from 11.1 percent in the first quarter to 12.0 percent in the
second. This improvement was in spite of significant raw
material pricing headwinds that negatively impacted gross profit by
approximately $11 million during the
second quarter. Although we believe that raw material pricing
has now stabilized, our OEM contracts in North America did not allow us to fully pass
through these higher costs during the quarter. Because of these
headwinds, we did not reach the gross margin level we experienced
this quarter last year; however, with the increased pricing that
has now taken place with the OEMs and the raw material price
stabilization, we do not anticipate further negative impacts from
raw material prices in the second half of this year.
"During the quarter, we had a number of positive events that
planted seeds for a strong future. First, Titan finalized
agreements with the United Steelworkers Union (USW) which
represents our three North American tire plants. These new
five year contracts provide added profit incentives for our union
workforce while providing Titan with more economic
flexibility. This will benefit all stakeholders and allow
Titan to maintain our position as a leader in the North American
tire market.
"We are excited that New
Holland recently began offering our Low Sidewall
Technology® (LSW®) tractor setup with
LSW1000/40R32 fronts and super single LSW1100/45R46 rears.
Last year, a study was conducted by Mark
Stallings, a farmer and owner of the Delta New Holland
dealership, which compared standard duals to LSWs. As we
previously announced, the study demonstrated that LSWs deliver
higher yields. Because of this successful study and the
efforts of Mr. Stallings, we are now able to offer that same LSW
tractor setup to all New Holland
customers.
"We recently had a couple of good wins at ITM, our undercarriage
business. We obtained 100% of the global forestry business
with a major, global OEM. Also, we were named the preferred
supplier on D10 and D11 tracks with another major, global mining
operator."
James Froisland, Chief Financial
Officer and Chief Information Officer commented, "We have
previously stated that selling, general and administrative
(SG&A) expenses and 'Profit Leaks' were going to be areas of
focus. We are pleased to see that our efforts are paying off
as SG&A costs during the quarter went down nearly $2 million on a year-over-year basis while our
net sales increased. We still have work to do and our plan is
to not only reduce variable SG&A, but also take a hard look at
our fixed SG&A costs.
"We reported a foreign exchange loss of $5.3 million during the quarter primarily
reflecting the translation of intercompany loans at certain foreign
subsidiaries. Since such loans are expected to be settled in
cash at some point in the future, these loans are adjusted each
reporting period to reflect the current exchange rates. The primary
portion of this loss was unrealized and therefore did not impact
cash."
Paul Reitz commented further, "As
we've worked our way through the downturn over the past few years,
the Titan team has consistently deployed a balanced, disciplined
approach focused on the needed short-term actions to balance costs
with net sales, while also looking to the future with our
investment decisions. We see future opportunities to utilize
our tire manufacturing and technical expertise to expand into other
related products that don't require significant, additional
investment."
Summary of Operations
Net sales for the second quarter ended June 30, 2017, were
$364.4 million, up 10 percent from
$330.2 million in the comparable
prior year period. Overall sales volume was up 7 percent
driven by higher volumes in both the agriculture and
earthmoving/construction segments, partially offset by lower volume
in the consumer segment. Favorable changes in price/mix
contributed a 2 percent increase to sales and currency translation
increased sales by another 1 percent.
Net sales for the six months ended June 30, 2017, were
$721.9 million, up 11 percent from
$652.0 million in the comparable
prior year period. Overall sales volume was up 6 percent
driven by higher volumes in both the agriculture and
earthmoving/construction segments, partially offset by lower volume
in the consumer segment. Favorable currency translation
increased sales by 3 percent and a favorable change in price/mix
contributed another 2 percent increase to sales.
Gross profit for the second quarter ended June 30, 2017,
was $43.6 million, flat compared with
$43.7 million in the comparable prior
year period. Gross margin was 12.0 percent of net sales for
the latest quarter, compared with 13.2 percent in the comparable
prior year period. Increases in raw material costs across all
markets and geographies negatively impacted gross margins during
the second quarter of 2017 due to the timing of passing along
increased costs to our end customers.
Gross profit for the six months ended June 30, 2017, was
$83.3 million, up 16 percent from
$72.0 million in the comparable prior
year period. Gross margin was 11.5 percent of net sales for
the first six months of 2017, compared with 11.0 percent in the
comparable prior year period. The increase in gross profit
percentage was primarily related to our Business Improvement
Framework initiatives that focus on lowering costs and increasing
efficiencies. These efforts more than offset the significant
increases in raw material costs we experienced in both the first
and second quarters of 2017.
SG&A expenses for the second quarter of 2017 were
$34.5 million, 5 percent lower than
the $36.3 million in the comparable
prior year period. As a percentage of net sales, SG&A was 9.5
percent, compared to 11.0 percent for the comparable prior year
period. The decrease in SG&A expenses was in line with
management's efforts to reduce costs.
SG&A expenses for the first six months of 2017 were
$75.8 million, 6 percent higher than
the $71.4 million in the comparable
prior year period. As a percentage of net sales, SG&A was 10.5
percent, compared to 10.9 percent for the prior year period. The
increase in SG&A expenses was primarily due to the costs
associated with the anti-dumping and countervailing duties
litigation, marketing investments in LSW development, and
non-recurring legal and professional fees in the first quarter of
2017.
For the second quarter of 2017, research and development
(R&D) expenses were $2.6 million,
or 0.7 percent of net sales, and royalty expense was $2.5 million, or 0.7 percent of net sales, which
both remained flat as a percentage of net sales compared to the
prior year period.
For the first six months of 2017, R&D expenses were
$5.5 million, or 0.8 percent of net
sales, and royalty expense was $5.1
million, or 0.7 percent of net sales, which both remained
flat as a percentage of net sales compared to the prior year
period.
Income from operations for the second quarter of 2017 was
$4.0 million, or 1.1 percent of net
sales, compared to income of $2.6
million, or 0.8 percent of net sales, for the second quarter
of 2016, an improvement of 53 percent.
Loss from operations for the first six months of 2017 was
$3.1 million, or 0.4 percent of net
sales, compared to a loss of $8.9
million, or 1.4 percent of net sales, for the first six
months of 2016, an improvement of 65 percent.
For the second quarter of 2017, interest expense was
$7.3 million versus $8.0 million in the comparable prior year
period. Foreign exchange loss was $5.3
million in the second quarter of 2017 versus a gain of
$2.2 million in the comparable period
in 2016. The primary portion of this current quarter loss was
unrealized and therefore did not impact cash. Other income
was $2.2 million in the second
quarter of 2017 versus $3.0 million
in the same quarter of 2016.
For the first six months of 2017, interest expense was
$15.0 million versus $16.5 million in the prior year period.
Foreign exchange loss was $0.8
million in the first six months of 2017 versus a gain of
$7.0 million in the same period in
2016. Other income was $5.4
million in the first six months of 2017 versus $7.0 million in the same period in 2016.
The provision for income taxes was $0.1
million for the second quarter of 2017, compared to
$3.6 million in the comparable prior
year period. As a result, the second quarter net loss
applicable to common shareholders was $10.3
million, equal to $(0.17) per
basic and diluted share, compared to a loss of $5.2 million, equal to $(0.10) per basic and diluted share, in the prior
year period.
The provision for income taxes was $3.6
million for the first six months of 2017, compared to
$4.7 million in the prior year
period. As a result, the first six months net loss applicable
to common shareholders was $20.8
million, equal to $(0.35) per
basic and diluted share, compared to a loss of $23.1 million, equal to $(0.43) per basic and diluted share, in the prior
year period.
EBITDA was $15.9 million for the
second quarter of 2017 versus $23.2
million in the prior year period, a 31 percent
decrease. EBITDA was $31.0
million for the first six months of 2017 versus $35.6 million in the comparable prior year
period, a 13 percent decrease. Adjusted EBITDA was
$21.2 million for the second quarter
of 2017 versus $21.0 million in the
comparable prior year period. Adjusted EBITDA was
$31.7 million for the first six
months of 2017 versus $28.6 million
in the comparable prior year period, an 11 percent increase. The
company utilizes EBITDA as a means to measure its operating
performance. A reconciliation of net loss to EBITDA, a
non-GAAP measure, can be found at the end of this release.
Financial Condition
Net cash used for operations for the six months ended
June 30, 2017, was $30.6 million, compared to net cash provided by
operations of $29.7 million for the
prior year period. Capital expenditures were $15.2 million for the first six months of 2017
versus $18.1 million for the prior
year period.
Principal and dividend payments of $29.6
million were paid during the first six months of 2017.
The company ended the first six months of 2017 with total cash,
cash equivalents, and certificates of deposit of $153.2 million. Long-term debt at June 30, 2017, was $408.8
million, unchanged from December 31, 2016. Short-term
debt was $42.6 million at
June 30, 2017, versus $97.4
million at December 31, 2016. Net debt (total
debt less cash, cash equivalents, and certificates of deposit) was
$298.1 million at June 30, 2017,
versus $308.3 million at
December 31, 2016.
Teleconference and Webcast
Titan will be hosting a teleconference and webcast to discuss
the second quarter financial results on Thursday, August 3, 2017, at 9 a.m. Eastern Time.
The real-time, listen-only webcast can be accessed on our
website at www.titan-intl.com within the "Investor Relations" page
under the "Webcasts & Events" section
(http://titan-intl.investorroom.com/webcasts). Listeners
should access the website at least 15 minutes prior to the live
event to download and install any necessary audio software.
In order to participate in the real-time teleconference with the
ability to ask questions, participants in the U.S. should dial
(888) 347-5307, participants in Canada should dial (855) 669-9657, and other
international callers should dial (412) 902-4283.
A webcast replay of the teleconference will be available on our
website (http://titan-intl.investorroom.com/webcasts) soon after
the live event. There is no charge to access the webcast replay.
The transcript from the teleconference will be made available on
our website (http://titan-intl.investorroom.com/webcasts) following
the live event.
Safe Harbor Statement
This press release contains forward-looking statements, which
statements are covered by the "Safe Harbor for Forward-Looking
Statements" provided by the Private Securities Litigation Reform
Act of 1995. The words "believe," "expect," "anticipate,"
"plan," "would," "could," "outlook," "potential," "may," "will,"
and other similar expressions are intended to identify
forward-looking statements, which are generally not historical in
nature. These forward-looking statements are based on our
current expectations and beliefs concerning future developments and
their potential effect on us. Although we believe the
assumptions upon which these forward-looking statements are based
are reasonable, these assumptions are subject to significant risks
and uncertainties, and are subject to change based on various
factors, some of which are beyond Titan International, Inc.'s
control. As a result, any of these assumptions could prove to be
inaccurate and the forward-looking statements based on these
assumptions could be incorrect. The matters discussed in
these forward-looking statements are subject to risks,
uncertainties, and other factors that could cause actual results
and trends to differ materially from those made, projected, or
implied in or by the forward-looking statements depending on a
variety of uncertainties or other factors including, but not
limited to, risks detailed in Titan International, Inc.'s periodic
reports filed with the Securities and Exchange Commission,
including the disclosures under "Risk Factors" in those
reports. These forward-looking statements are made only as of
the date hereof. The company cautions that any forward-looking
statements included in this press release are subject to a number
of risks and uncertainties, and the company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, changed
circumstances or future events, or for any other reason.
About Titan
Titan International, Inc. (NYSE: TWI) is a leading global
manufacturer of off-highway wheels, tires, assemblies, and
undercarriage products. Headquartered in Quincy, Illinois, the company globally
produces a broad range of products to meet the specifications of
original equipment manufacturers (OEMs) and aftermarket customers
in the agricultural, earthmoving/construction, and consumer
markets.
Titan
International, Inc. Condensed Consolidated Statements of
Operations (Unaudited) Amounts in thousands, except
per share data
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
364,399
|
|
|
$
|
330,214
|
|
|
$
|
721,900
|
|
|
$
|
652,008
|
|
Cost of
sales
|
320,837
|
|
|
286,496
|
|
|
638,609
|
|
|
579,993
|
|
Gross
profit
|
43,562
|
|
|
43,718
|
|
|
83,291
|
|
|
72,015
|
|
Selling, general and
administrative expenses
|
34,463
|
|
|
36,302
|
|
|
75,801
|
|
|
71,364
|
|
Research and
development expenses
|
2,608
|
|
|
2,714
|
|
|
5,451
|
|
|
5,193
|
|
Royalty
expense
|
2,533
|
|
|
2,109
|
|
|
5,142
|
|
|
4,403
|
|
Income (loss) from
operations
|
3,958
|
|
|
2,593
|
|
|
(3,103)
|
|
|
(8,945)
|
|
Interest
expense
|
(7,320)
|
|
|
(7,982)
|
|
|
(15,041)
|
|
|
(16,494)
|
|
Foreign exchange gain
(loss)
|
(5,257)
|
|
|
2,182
|
|
|
(767)
|
|
|
7,005
|
|
Other
income
|
2,208
|
|
|
3,049
|
|
|
5,357
|
|
|
6,954
|
|
Loss before income
taxes
|
(6,411)
|
|
|
(158)
|
|
|
(13,554)
|
|
|
(11,480)
|
|
Provision for income
taxes
|
126
|
|
|
3,648
|
|
|
3,568
|
|
|
4,652
|
|
Net loss
|
(6,537)
|
|
|
(3,806)
|
|
|
(17,122)
|
|
|
(16,132)
|
|
Net income (loss)
attributable to noncontrolling interests
|
(244)
|
|
|
(550)
|
|
|
624
|
|
|
(133)
|
|
Net loss attributable
to Titan
|
(6,293)
|
|
|
(3,256)
|
|
|
(17,746)
|
|
|
(15,999)
|
|
Redemption value adjustment
|
(4,040)
|
|
|
(1,900)
|
|
|
(3,099)
|
|
|
(7,108)
|
|
Net loss applicable
to common shareholders
|
$
|
(10,333)
|
|
|
$
|
(5,156)
|
|
|
$
|
(20,845)
|
|
|
$
|
(23,107)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(.17)
|
|
|
$
|
(.10)
|
|
|
$
|
(.35)
|
|
|
$
|
(.43)
|
|
Diluted
|
$
|
(.17)
|
|
|
$
|
(.10)
|
|
|
$
|
(.35)
|
|
|
$
|
(.43)
|
|
Average common shares
and equivalents outstanding:
|
|
|
|
|
|
|
|
Basic
|
59,557
|
|
|
53,884
|
|
|
59,067
|
|
|
53,869
|
|
Diluted
|
59,557
|
|
|
53,884
|
|
|
59,067
|
|
|
53,869
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share:
|
$
|
.005
|
|
|
$
|
.005
|
|
|
$
|
.010
|
|
|
$
|
.010
|
|
Segment
Information (Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales
|
|
|
|
|
|
|
|
Agricultural
|
$
|
172,923
|
|
|
$
|
146,715
|
|
|
$
|
353,439
|
|
|
$
|
299,540
|
|
Earthmoving/construction
|
150,970
|
|
|
141,028
|
|
|
286,589
|
|
|
272,733
|
|
Consumer
|
40,506
|
|
|
42,471
|
|
|
81,872
|
|
|
79,735
|
|
|
$
|
364,399
|
|
|
$
|
330,214
|
|
|
$
|
721,900
|
|
|
$
|
652,008
|
|
Titan
International, Inc. Condensed Consolidated Balance
Sheets
Amounts in thousands
|
|
|
June
30,
2017
|
|
December 31,
2016
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
143,236
|
|
|
$
|
147,827
|
|
Certificates
of deposit
|
10,000
|
|
|
50,000
|
|
Accounts
receivable, net
|
219,924
|
|
|
179,384
|
|
Inventories
|
323,491
|
|
|
272,236
|
|
Prepaid and other
current assets
|
78,413
|
|
|
79,734
|
|
Total current
assets
|
775,064
|
|
|
729,181
|
|
Property, plant and
equipment, net
|
435,731
|
|
|
437,201
|
|
Deferred income
taxes
|
8,265
|
|
|
4,663
|
|
Other
assets
|
92,891
|
|
|
94,851
|
|
Total
assets
|
$
|
1,311,951
|
|
|
$
|
1,265,896
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
debt
|
$
|
42,563
|
|
|
$
|
97,412
|
|
Accounts
payable
|
187,077
|
|
|
148,255
|
|
Other current
liabilities
|
118,024
|
|
|
120,437
|
|
Total current
liabilities
|
347,664
|
|
|
366,104
|
|
Long-term
debt
|
408,789
|
|
|
408,760
|
|
Deferred income
taxes
|
18,248
|
|
|
13,183
|
|
Other long-term
liabilities
|
77,826
|
|
|
80,161
|
|
Total
liabilities
|
852,527
|
|
|
868,208
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
108,839
|
|
|
104,809
|
|
|
|
|
|
Equity
|
|
|
|
Titan shareholders'
equity
|
|
|
|
Common
stock ($0.0001 par value, 120,000,000 shares authorized, 60,715,356
issued, 59,657,340 outstanding)
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
535,436
|
|
|
479,075
|
|
Retained earnings
(deficit)
|
(1,128)
|
|
|
17,214
|
|
Treasury stock (at
cost, 1,058,016 and 1,083,212 shares, respectively)
|
(9,893)
|
|
|
(10,119)
|
|
Stock reserved for
deferred compensation
|
(1,075)
|
|
|
(1,075)
|
|
Accumulated other
comprehensive loss
|
(168,128)
|
|
|
(188,278)
|
|
Total Titan
shareholders' equity
|
355,212
|
|
|
296,817
|
|
Noncontrolling
interests
|
(4,627)
|
|
|
(3,938)
|
|
Total
equity
|
350,585
|
|
|
292,879
|
|
Total liabilities and
equity
|
$
|
1,311,951
|
|
|
$
|
1,265,896
|
|
Titan
International, Inc. Condensed Consolidated Statements of
Cash Flows (Unaudited) All amounts in
thousands
|
|
|
Six months
ended
|
|
June
30,
|
Cash flows from
operating activities:
|
2017
|
|
2016
|
Net loss
|
$
|
(17,122)
|
|
|
$
|
(16,132)
|
|
Adjustments to
reconcile net loss to net cash
provided by (used for) operating activities:
|
|
|
|
Depreciation and
amortization
|
29,486
|
|
|
30,615
|
|
Deferred income tax
provision
|
1,324
|
|
|
600
|
|
Stock-based
compensation
|
956
|
|
|
931
|
|
Issuance of treasury
stock under 401(k) plan
|
270
|
|
|
283
|
|
Foreign currency
translation loss
|
2,467
|
|
|
6,740
|
|
(Increase) decrease
in assets:
|
|
|
|
Accounts
receivable
|
(34,879)
|
|
|
(9,789)
|
|
Inventories
|
(43,722)
|
|
|
10,206
|
|
Prepaid and other
current assets
|
2,877
|
|
|
(7,583)
|
|
Other
assets
|
3,620
|
|
|
(1,318)
|
|
Increase (decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
33,149
|
|
|
15,007
|
|
Other current
liabilities
|
(4,922)
|
|
|
3,523
|
|
Other
liabilities
|
(4,057)
|
|
|
(3,411)
|
|
Net cash provided
by (used for) operating activities
|
(30,553)
|
|
|
29,672
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(15,152)
|
|
|
(18,050)
|
|
Certificates of
deposit
|
40,000
|
|
|
—
|
|
Other
|
1,038
|
|
|
1,294
|
|
Net cash provided
by (used for) investing activities
|
25,886
|
|
|
(16,756)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
borrowings
|
27,742
|
|
|
1,559
|
|
Payment on
debt
|
(29,077)
|
|
|
(10,248)
|
|
Dividends
paid
|
(570)
|
|
|
(540)
|
|
Net cash used for
financing activities
|
(1,905)
|
|
|
(9,229)
|
|
Effect of exchange
rate changes on cash
|
1,981
|
|
|
3,363
|
|
Net increase
(decrease) in cash and cash equivalents
|
(4,591)
|
|
|
7,050
|
|
Cash and cash
equivalents, beginning of period
|
147,827
|
|
|
200,188
|
|
Cash and cash
equivalents, end of period (1)
|
$
|
143,236
|
|
|
$
|
207,238
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
Interest
paid
|
$
|
17,916
|
|
|
$
|
16,510
|
|
Income taxes paid,
net of refunds received
|
$
|
3,221
|
|
|
$
|
3,367
|
|
Noncash investing
and financing information:
|
|
|
|
Issuance of common
stock for convertible debt payment
|
$
|
58,460
|
|
|
$
|
—
|
|
|
|
|
|
|
(1)Total cash, cash equivalents, and
certificates of deposit were $153.2 million as of June 30,
2017.
|
Titan International,
Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
Amounts in thousands
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States (GAAP). This
supplemental schedule provides a quantitative reconciliation
between EBITDA, a non-GAAP financial measure, and net loss, the
most directly comparable financial measure calculated and reported
in accordance with GAAP.
We present EBITDA as we believe that it assists investors with
analyzing our business results. In addition, management
reviews EBITDA in order to evaluate the financial performance of
each of our segments, as well as the Company's performance as a
whole. We believe that the presentation of this non‑GAAP
financial measure will permit investors to assess the performance
of the Company on the same basis as management.
EBITDA should be considered supplemental to, not a substitute
for, the financial measures calculated in accordance with
GAAP. One should not consider this measure in isolation or as
a substitute for our results reported under GAAP. It has
limitations in that it does not reflect all of the costs associated
with the operations of our businesses as determined in accordance
with GAAP. In addition, EBITDA may be calculated differently
than non-GAAP financial measures reported by other companies,
limiting its usefulness as a comparative measure. We attempt
to compensate for these limitations by analyzing results on a GAAP
basis as well as a non-GAAP basis, prominently disclosing GAAP
results and providing reconciliations from GAAP results to non-GAAP
results.
The table below provides a reconciliation of net loss to EBITDA,
a non-GAAP measure, for each of the three and six month periods
ended June 30, 2017 and 2016.
|
Three months
ended
|
Six months
ended
|
|
June
30,
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(6,537)
|
|
|
$
|
(3,806)
|
|
|
$
|
(17,122)
|
|
|
$
|
(16,132)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Provision for income
taxes
|
126
|
|
|
3,648
|
|
|
3,568
|
|
|
4,652
|
|
Interest
expense
|
7,320
|
|
|
7,982
|
|
|
15,041
|
|
|
16,494
|
|
Depreciation and
amortization
|
15,020
|
|
|
15,366
|
|
|
29,486
|
|
|
30,615
|
|
EBITDA
|
$
|
15,929
|
|
|
$
|
23,190
|
|
|
$
|
30,973
|
|
|
$
|
35,629
|
|
Adjustments:
|
|
|
|
|
|
|
|
Foreign
exchange gain (loss)
|
(5,257)
|
|
|
2,182
|
|
|
(767)
|
|
|
7,005
|
|
Adjusted
EBITDA
|
$
|
21,186
|
|
|
$
|
21,008
|
|
|
$
|
31,740
|
|
|
$
|
28,624
|
|
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SOURCE Titan International, Inc.