Titan Machinery Inc. (Nasdaq: TITN), a leading network of
full-service agricultural and construction equipment stores, today
reported financial results for the fiscal fourth quarter and full
year ended January 31, 2020.
David Meyer, Titan Machinery’s Chairman and
Chief Executive Officer, stated, “Full year fiscal 2020 performance
demonstrated our ability to drive profitability in challenging
industry conditions. Modest growth in equipment revenue was
supported by strong double-digit growth from our higher margin
parts and service businesses. Our commitment to providing strong
customer support in parts and service, combined with an efficient
operating model, enabled us to drive adjusted earnings per share
growth of 17.9% for the year. As we look to fiscal 2021, we remain
focused on providing exceptional uninterrupted customer service,
safeguarding our employees and managing the controllable aspects of
the business as we carefully navigate the COVID-19 global health
crisis. We believe the strength of our balance sheet and business
model will enable us to achieve long-term top line growth, both
organically as well as through acquisitions. Due to the uncertainty
surrounding COVID-19, we believe it is prudent to not provide
specific full year fiscal 2021 guidance at this time."
Fiscal 2020 Fourth Quarter Results
Consolidated ResultsFor the fourth quarter of
fiscal 2020, revenue was $351.0 million, compared to revenue of
$359.6 million in the fourth quarter last year. Equipment revenue
was $262.8 million for the fourth quarter of fiscal 2020, compared
to $284.0 million in the fourth quarter last year. Parts revenue
was $52.3 million for the fourth quarter of fiscal 2020, compared
to $43.9 million in the fourth quarter last year. Revenue generated
from service was $22.0 million for the fourth quarter of fiscal
2020, compared to $18.8 million in the fourth quarter last year.
Revenue from rental and other was $13.9 million for the fourth
quarter of fiscal 2020, compared to $13.0 million in the fourth
quarter last year.
Gross profit for the fourth quarter of fiscal
2020 increased to $61.1 million compared to $55.6 million in the
fourth quarter last year. The Company's gross profit margin
increased to 17.4% in the fourth quarter of fiscal 2020, compared
to 15.5% in the fourth quarter last year. Gross profit margin
increased primarily due to mix, with a greater proportion of higher
margin parts and service revenue compared to equipment revenue,
which was further supported by strong equipment margin performance
versus the prior year.
Operating expenses were $60.1 million or 17.1%
of revenue for the fourth quarter of fiscal 2020, compared to $53.9
million or 15.0% of revenue for the fourth quarter last year.
Current quarter expenses were impacted by $2.4 million of ERP
transition costs as well as expenses associated with the third
quarter addition of the Company’s Northwood store location.
Floorplan and other interest expense was $2.5 million for the
fourth quarter of fiscal 2020, compared to $2.8 million for the
same period last year. The decrease was due to lower interest
expense resulting from the May 1, 2019 retirement of the remaining
balance of the Company’s convertible notes.
In the fourth quarter of fiscal 2020, net income
was $0.7 million, or earnings per share of $0.03, compared to a net
loss of $2.2 million, or loss per diluted share of $0.10 for the
fourth quarter of fiscal 2019.
On an adjusted basis, net income for the fourth
quarter of fiscal 2020 was $0.5 million, or $0.02 per diluted
share, compared to net loss of $0.8 million, or $0.04 per diluted
share for the fourth quarter of fiscal 2019. The adjusted fourth
quarter fiscal 2020 net income of $0.5 million excludes a $4.6
million benefit related to income tax valuation allowance
adjustments.
The Company generated $8.1 million in adjusted
EBITDA in the fourth quarter of fiscal 2020, compared to $6.7
million for the fourth quarter of fiscal 2019.
Segment ResultsAgriculture Segment - Revenue for
the fourth quarter of fiscal 2020 was $215.5 million, compared to
$223.3 million in the fourth quarter last year. Pre-tax loss for
the fourth quarter of fiscal 2020 was $0.3 million, compared to
pre-tax income of $1.1 million in the fourth quarter last year.
Adjusted pre-tax income for the fourth quarter of fiscal 2020 was
$2.5 million, compared to $1.7 million in the fourth quarter last
year.
Construction Segment - Revenue for the fourth
quarter of fiscal 2020 was $87.2 million, compared to $86.4 million
in the fourth quarter last year. Pre-tax loss for the fourth
quarter of fiscal 2020 was $1.8 million, compared to $2.6 million
in the fourth quarter last year. Adjusted pre-tax loss for the
fourth quarter of fiscal 2020 was $1.0 million, compared to $1.5
million in the fourth quarter last year.
International Segment - Revenue for the fourth
quarter of fiscal 2020 was $48.2 million, compared to $50.0 million
in the fourth quarter last year. Pre-tax loss for the fourth
quarter of fiscal 2020 was $2.3 million, compared to $1.1 million
in the fourth quarter last year.
Fiscal 2020 Full Year
Results
Revenue increased 3.5% to $1.3 billion for
fiscal 2020. Net income for fiscal 2020 was $14.0 million, or $0.63
per diluted share, compared to $12.2 million, or $0.55 per diluted
share, for the prior year. Adjusted net income for fiscal 2020 was
$17.7 million, or $0.79 per diluted share, compared to an adjusted
net income of $14.7 million, or $0.67 per diluted share, for the
prior year. The Company generated adjusted EBITDA of $53.1 million
in fiscal 2020, representing an increase of 6.7% compared to
adjusted EBITDA of $49.8 million in fiscal 2019.
Balance Sheet and Cash Flow
The Company ended the fourth quarter of fiscal
2020 with $43.7 million of cash. The Company’s equipment inventory
level increased to $515.9 million as of January 31, 2020,
compared to $417.0 million as of January 31, 2019. As of
January 31, 2020, the Company had $371.8 million outstanding
floorplan payables, on $717.0 million total floorplan lines of
credit, compared to $273.8 million in floorplan payables as of
January 31, 2019. The increase in the Company's floorplan
payable balance is primarily due to increased equipment inventory
and the payoff of the Company's convertible notes on May 1,
2019.
For the fiscal year ended January 31, 2020,
the Company’s net cash provided by operating activities was $1.0
million, compared to $46.6 million for the fiscal year ended
January 31, 2019. The Company evaluates its cash flow from
operating activities net of all floorplan payable activity and
maintaining a constant level of equity in its equipment inventory.
Taking these adjustments into account, adjusted net cash provided
by operating activities was $17.8 million for the fiscal year ended
January 31, 2020, compared to $47.4 million for the fiscal
year ended January 31, 2019.
Announcement of HorizonWest Acquisition
On January 31, 2020, the Company entered into a
definitive purchase agreement to acquire HorizonWest Inc., which
consists of a three store CaseIH agriculture dealership complex in
Scottsbluff and Sidney, Nebraska and Torrington, Wyoming. In its
most recent fiscal year, HorizonWest generated revenue of
approximately $26 million. The Company expects to close the
acquisition in May 2020.
Mr. Meyer concluded, "The acquisition of
HorizonWest's three store dealership complex in western Nebraska
and eastern Wyoming is contiguous to Titan Machinery's footprint
and a great fit for our business. We continue to work towards
strategic acquisitions in our existing markets and are pleased to
bring the HorizonWest team into the Titan Machinery family."
Fiscal 2021 Modeling Assumptions
The company will not be providing its customary
annual modeling assumptions for fiscal year 2021 due to the
uncertainty surrounding the COVID-19 outbreak. The company will
provide additional qualitative statements related to expectations
for fiscal year 2021 on its fiscal 2020 fourth-quarter conference
call hosted today.
Conference Call Information
The Company will host a conference call and
audio webcast today at 7:30 a.m. Central time (8:30 a.m. Eastern
time). Investors interested in participating in the live call can
dial (877) 705-6003 from the U.S. International callers can dial
(201) 493-6725. A telephone replay will be available approximately
two hours after the call concludes and will be available through
Thursday, April 9, 2020, by dialing (844) 512-2921 from the U.S.,
or (412) 317-6671 from international locations, and entering
confirmation code 13699318.
A copy of the presentation that will accompany
the prepared remarks from the conference call is available on the
Company’s website under Investor Relations at
www.titanmachinery.com. An archive of the audio webcast will be
available on the Company’s website under Investor Relations at
www.titanmachinery.com for 30 days following the audio
webcast.
Non-GAAP Financial Measures
Within this release, the Company refers to
certain adjusted financial measures, which have directly comparable
GAAP financial measures as identified in this release. The Company
believes that non-GAAP financial measures, when reviewed in
conjunction with GAAP financial measures, can provide more
information to assist investors in evaluating current period
performance and in assessing future performance. For these reasons,
internal management reporting also includes non-GAAP measures.
Generally, the non-GAAP measures include adjustments for items such
as valuation allowances for income tax, restructuring costs,
long-lived asset impairment charges, gains and losses recognized on
the repurchase of our senior convertible notes, and other gains and
losses. The non-GAAP financial measures should be considered in
addition to, and not superior to or as a substitute for the GAAP
financial measures presented in this release and the Company's
financial statements and other publicly filed reports. Non-GAAP
measures as presented herein may not be comparable to similarly
titled measures used by other companies. Investors are encouraged
to review the reconciliations of adjusted financial measures used
in this release to their most directly comparable GAAP financial
measures. These reconciliations are attached to this release. The
tables included in the Non-GAAP Reconciliations section reconcile
net income (loss), diluted earnings (loss) per share, income (loss)
before income taxes, and net cash provided by operating activities
(all GAAP financial measures) for the periods presented to adjusted
net income (loss), adjusted EBITDA (loss), adjusted diluted
earnings (loss) per share, adjusted income (loss) before income
taxes, and adjusted net cash provided by (used for) operating
activities (all non-GAAP financial measures) for the periods
presented.
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and
headquartered in West Fargo, North Dakota, owns and operates a
network of full service agricultural and construction equipment
dealer locations in North America and Europe. The network consists
of US locations in Arizona, Colorado, Iowa, Minnesota, Montana,
Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming and its
European stores are located in Bulgaria, Germany, Romania, Serbia
and Ukraine. The Titan Machinery locations represent one or more of
the CNH Industrial Brands, including Case IH, 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
Except for historical information contained
herein, the statements in this release are forward-looking and made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The words “potential,” “believe,”
“estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,”
“anticipate,” and similar words and expressions are intended to
identify forward-looking statements. Such statements are based upon
the current beliefs and expectations of our management.
Forward-looking statements made herein, which include statements
regarding Agriculture, Construction, and International segment
initiatives and improvements, segment revenue realization, growth
and profitability expectations, inventory expectations, leverage
expectations, agricultural and construction equipment industry
conditions and trends, the HorizonWest acquisition and modeling
assumptions and expected results of operations for the fiscal year
ending January 31, 2021, involve known and unknown risks and
uncertainties that may cause Titan Machinery’s actual results in
current or future periods to differ materially from the forecasted
assumptions and expected results. The Company’s risks and
uncertainties include, among other things, a substantial dependence
on a single equipment supplier, the continued availability of
organic growth and acquisition opportunities, potential
difficulties completing the HorizonWest acquisition or integrating
acquired stores (including the stores expected to be acquired in
the HorizonWest acquisition), industry supply levels, fluctuating
agriculture and construction industry economic conditions, the
success of recently implemented initiatives within the Company’s
operating segments, the uncertainty and fluctuating conditions in
the capital and credit markets, difficulties in conducting
international operations, foreign currency risks, governmental
agriculture policies, seasonal fluctuations, the ability of the
Company to reduce inventory levels, climate conditions, disruption
in receiving ample inventory financing, and increased competition
in the geographic areas served. 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
Quarterly Reports on Form 10-Q, 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. Other than as
required by law, 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.
Investor Relations Contact:ICR, Inc.John Mills,
jmills@icrinc.comManaging Partner646-277-1254
|
TITAN MACHINERY INC. |
Consolidated Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
January 31, 2020 |
|
January 31, 2019 |
Assets |
|
|
|
|
Current Assets |
|
|
|
|
Cash |
|
$ |
43,721 |
|
|
$ |
56,745 |
|
Receivables, net of allowance for doubtful accounts |
|
72,776 |
|
|
77,500 |
|
Inventories |
|
597,394 |
|
|
491,091 |
|
Prepaid expenses and other |
|
13,655 |
|
|
15,556 |
|
Total current assets |
|
727,546 |
|
|
640,892 |
|
Noncurrent Assets |
|
|
|
|
Property and equipment, net of accumulated depreciation |
|
145,562 |
|
|
138,950 |
|
Operating lease assets |
|
88,281 |
|
|
— |
|
Deferred income taxes |
|
2,147 |
|
|
3,010 |
|
Goodwill |
|
2,327 |
|
|
1,161 |
|
Intangible assets, net of accumulated amortization |
|
8,367 |
|
|
7,247 |
|
Other |
|
1,113 |
|
|
1,178 |
|
Total noncurrent assets |
|
247,797 |
|
|
151,546 |
|
Total
Assets |
|
975,343 |
|
|
792,438 |
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts payable |
|
16,976 |
|
|
16,607 |
|
Floorplan payable |
|
371,772 |
|
|
273,756 |
|
Senior convertible notes |
|
— |
|
|
45,249 |
|
Current maturities of long-term debt |
|
13,779 |
|
|
2,067 |
|
Current maturities of operating leases |
|
12,259 |
|
|
— |
|
Deferred revenue |
|
40,968 |
|
|
46,409 |
|
Accrued expenses and other |
|
38,409 |
|
|
36,364 |
|
Total current liabilities |
|
494,163 |
|
|
420,452 |
|
Long-Term Liabilities |
|
|
|
|
Long-term debt, less current maturities |
|
37,789 |
|
|
20,676 |
|
Operating lease liabilities |
|
88,387 |
|
|
— |
|
Deferred income taxes |
|
2,055 |
|
|
4,955 |
|
Other long-term liabilities |
|
7,845 |
|
|
11,044 |
|
Total long-term liabilities |
|
136,076 |
|
|
36,675 |
|
Stockholders' Equity |
|
|
|
|
Common stock |
|
— |
|
|
— |
|
Additional paid-in-capital |
|
250,607 |
|
|
248,423 |
|
Retained earnings |
|
97,717 |
|
|
89,228 |
|
Accumulated other comprehensive loss |
|
(3,220 |
) |
|
(2,340 |
) |
Total stockholders' equity |
|
345,104 |
|
|
335,311 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
975,343 |
|
|
$ |
792,438 |
|
TITAN MACHINERY INC. |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
|
|
|
|
|
|
|
Equipment |
|
$ |
262,826 |
|
|
$ |
283,990 |
|
|
$ |
917,202 |
|
|
$ |
909,178 |
|
Parts |
|
52,289 |
|
|
43,873 |
|
|
234,217 |
|
|
210,796 |
|
Service |
|
21,950 |
|
|
18,827 |
|
|
99,165 |
|
|
86,840 |
|
Rental and other |
|
13,899 |
|
|
12,957 |
|
|
54,587 |
|
|
54,691 |
|
Total Revenue |
|
350,964 |
|
|
359,647 |
|
|
1,305,171 |
|
|
1,261,505 |
|
Cost of Revenue |
|
|
|
|
|
|
|
|
Equipment |
|
235,362 |
|
|
256,543 |
|
|
818,707 |
|
|
812,467 |
|
Parts |
|
36,810 |
|
|
31,361 |
|
|
165,190 |
|
|
149,615 |
|
Service |
|
8,276 |
|
|
7,118 |
|
|
33,446 |
|
|
29,036 |
|
Rental and other |
|
9,398 |
|
|
9,040 |
|
|
37,010 |
|
|
38,799 |
|
Total Cost of Revenue |
|
289,846 |
|
|
304,062 |
|
|
1,054,353 |
|
|
1,029,917 |
|
Gross Profit |
|
61,118 |
|
|
55,585 |
|
|
250,818 |
|
|
231,588 |
|
Operating Expenses |
|
60,128 |
|
|
53,872 |
|
|
225,722 |
|
|
201,537 |
|
Impairment of Long-Lived
Assets |
|
3,578 |
|
|
1,696 |
|
|
3,764 |
|
|
2,156 |
|
Restructuring Costs |
|
— |
|
|
— |
|
|
— |
|
|
414 |
|
Income (Loss) from
Operations |
|
(2,588 |
) |
|
17 |
|
|
21,332 |
|
|
27,481 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
Interest income and other income (expense) |
|
439 |
|
|
544 |
|
|
3,126 |
|
|
2,547 |
|
Floorplan interest expense |
|
(1,630 |
) |
|
(1,181 |
) |
|
(5,354 |
) |
|
(6,114 |
) |
Other interest expense |
|
(890 |
) |
|
(1,623 |
) |
|
(4,452 |
) |
|
(7,760 |
) |
Income (Loss) Before Income
Taxes |
|
(4,669 |
) |
|
(2,243 |
) |
|
14,652 |
|
|
16,154 |
|
Provision for (Benefit from)
Income Taxes |
|
(5,342 |
) |
|
(83 |
) |
|
699 |
|
|
3,972 |
|
Net Income (Loss) |
|
673 |
|
|
(2,160 |
) |
|
13,953 |
|
|
12,182 |
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) per
Share |
|
$ |
0.03 |
|
|
$ |
(0.10 |
) |
|
$ |
0.63 |
|
|
$ |
0.55 |
|
Diluted Weighted Average
Common Shares |
|
21,977 |
|
|
21,837 |
|
|
21,953 |
|
|
21,816 |
|
TITAN MACHINERY INC. |
Consolidated Condensed Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
Year Ended January 31, |
|
|
2020 |
|
2019 |
Operating Activities |
|
|
|
|
Net income |
|
$ |
13,953 |
|
|
$ |
12,182 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
Depreciation and amortization |
|
28,067 |
|
|
23,605 |
|
Impairment |
|
3,764 |
|
|
2,156 |
|
Other, net |
|
13,284 |
|
|
9,088 |
|
Changes in assets and liabilities |
|
|
|
|
Inventories |
|
(99,469 |
) |
|
4,996 |
|
Manufacturer floorplan payable |
|
49,601 |
|
|
(2,635 |
) |
Other working capital |
|
(8,245 |
) |
|
(2,787 |
) |
Net Cash Provided by Operating
Activities |
|
955 |
|
|
46,605 |
|
Investing Activities |
|
|
|
|
Property and equipment purchases |
|
(25,016 |
) |
|
(11,951 |
) |
Proceeds from sale of property and equipment |
|
2,415 |
|
|
1,549 |
|
Acquisition consideration, net of cash acquired |
|
(13,887 |
) |
|
(15,299 |
) |
Other, net |
|
19 |
|
|
(131 |
) |
Net Cash Used for Investing
Activities |
|
(36,469 |
) |
|
(25,832 |
) |
Financing Activities |
|
|
|
|
Net change in non-manufacturer floorplan payable |
|
50,158 |
|
|
16,818 |
|
Repurchase of senior convertible notes |
|
(45,644 |
) |
|
(20,025 |
) |
Net proceeds from (payments on) long-term debt |
|
18,864 |
|
|
(12,864 |
) |
Other, net |
|
(509 |
) |
|
(656 |
) |
Net Cash Provided by (Used
for) Financing Activities |
|
22,869 |
|
|
(16,727 |
) |
Effect of Exchange Rate
Changes on Cash |
|
(379 |
) |
|
(697 |
) |
Net Change in Cash |
|
(13,024 |
) |
|
3,349 |
|
Cash at Beginning of
Period |
|
56,745 |
|
|
53,396 |
|
Cash at End of Period |
|
$ |
43,721 |
|
|
$ |
56,745 |
|
TITAN MACHINERY INC. |
Segment Results |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
|
2020 |
|
2019 |
|
Change |
|
2020 |
|
2019 |
|
Change |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
|
$ |
215,508 |
|
|
$ |
223,266 |
|
|
(3.5 |
)% |
|
$ |
749,042 |
|
|
$ |
726,793 |
|
|
3.1 |
% |
Construction |
|
87,220 |
|
|
86,429 |
|
|
0.9 |
% |
|
320,034 |
|
|
301,989 |
|
|
6.0 |
% |
International |
|
48,236 |
|
|
49,952 |
|
|
(3.4 |
)% |
|
236,095 |
|
|
232,723 |
|
|
1.4 |
% |
Total |
|
$ |
350,964 |
|
|
$ |
359,647 |
|
|
(2.4 |
)% |
|
$ |
1,305,171 |
|
|
$ |
1,261,505 |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
|
$ |
(275 |
) |
|
$ |
1,134 |
|
|
n/m |
|
|
$ |
18,036 |
|
|
$ |
16,799 |
|
|
7.4 |
% |
Construction |
|
(1,750 |
) |
|
(2,627 |
) |
|
33.4 |
% |
|
(2,290 |
) |
|
(4,400 |
) |
|
48.0 |
% |
International |
|
(2,279 |
) |
|
(1,075 |
) |
|
(112.0 |
)% |
|
504 |
|
|
5,160 |
|
|
(90.2 |
)% |
Segment income before income
taxes |
|
(4,304 |
) |
|
(2,568 |
) |
|
(67.6 |
)% |
|
16,250 |
|
|
17,559 |
|
|
(7.5 |
)% |
Shared Resources |
|
(365 |
) |
|
326 |
|
|
n/m |
|
|
(1,598 |
) |
|
(1,405 |
) |
|
(13.7 |
)% |
Total |
|
$ |
(4,669 |
) |
|
$ |
(2,242 |
) |
|
(108.3 |
)% |
|
$ |
14,652 |
|
|
$ |
16,154 |
|
|
(9.3 |
)% |
TITAN MACHINERY INC. |
Non-GAAP Reconciliations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Adjusted Net Income
(Loss) |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
673 |
|
|
$ |
(2,160 |
) |
|
$ |
13,953 |
|
|
$ |
12,182 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs |
|
2,397 |
|
|
— |
|
|
7,175 |
|
|
— |
|
Loss on repurchase of senior convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
615 |
|
Restructuring & impairment charges |
|
3,578 |
|
|
1,696 |
|
|
3,764 |
|
|
2,570 |
|
Total Pre-Tax Adjustments |
|
5,975 |
|
|
1,696 |
|
|
10,939 |
|
|
3,185 |
|
Less: Tax Effect of
Adjustments (1) |
|
1,528 |
|
|
356 |
|
|
2,571 |
|
|
636 |
|
Less: Income Tax Valuation
Allowance (2) |
|
4,611 |
|
|
— |
|
|
4,611 |
|
|
— |
|
Total Adjustments |
|
(164 |
) |
|
1,340 |
|
|
3,757 |
|
|
2,549 |
|
Adjusted Net Income
(Loss) |
|
$ |
509 |
|
|
$ |
(820 |
) |
|
$ |
17,710 |
|
|
$ |
14,731 |
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.03 |
|
|
$ |
(0.10 |
) |
|
$ |
0.63 |
|
|
$ |
0.55 |
|
Adjustments (3) |
|
|
|
|
|
|
|
|
ERP transition costs |
|
0.11 |
|
|
— |
|
|
0.32 |
|
|
— |
|
Loss on repurchase of senior convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
Restructuring & impairment charges |
|
0.16 |
|
|
0.08 |
|
|
0.17 |
|
|
0.12 |
|
Total Pre-Tax Adjustments |
|
0.27 |
|
|
0.08 |
|
|
0.49 |
|
|
0.15 |
|
Less: Tax Effect of
Adjustments (1) |
|
0.07 |
|
|
0.02 |
|
|
0.12 |
|
|
0.03 |
|
Less: Income Tax Valuation
Allowance (2) |
|
0.21 |
|
|
— |
|
|
0.21 |
|
|
— |
|
Total Adjustments |
|
(0.01 |
) |
|
0.06 |
|
|
0.16 |
|
|
0.12 |
|
Adjusted Diluted EPS |
|
$ |
0.02 |
|
|
$ |
(0.04 |
) |
|
$ |
0.79 |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss)
Before Income Taxes |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
$ |
(4,669 |
) |
|
$ |
(2,242 |
) |
|
$ |
14,652 |
|
|
$ |
16,154 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs |
|
2,397 |
|
|
— |
|
|
7,175 |
|
|
— |
|
Loss on repurchase of senior convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
615 |
|
Restructuring & impairment charges |
|
3,578 |
|
|
1,696 |
|
|
3,764 |
|
|
2,570 |
|
Total Adjustments |
|
5,975 |
|
|
1,696 |
|
|
10,939 |
|
|
3,185 |
|
Adjusted Income (Loss) Before
Income Taxes |
|
$ |
1,306 |
|
|
$ |
(546 |
) |
|
$ |
25,591 |
|
|
$ |
19,339 |
|
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss)
Before Income Taxes - Agriculture |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
$ |
(275 |
) |
|
$ |
1,134 |
|
|
$ |
18,036 |
|
|
$ |
16,799 |
|
Restructuring & impairment charges |
|
2,807 |
|
|
582 |
|
|
2,807 |
|
|
1,327 |
|
Adjusted Income Before Income
Taxes |
|
$ |
2,532 |
|
|
$ |
1,716 |
|
|
$ |
20,843 |
|
|
$ |
18,126 |
|
|
|
|
|
|
|
|
|
|
Adjusted Loss Before
Income Taxes - Construction |
|
|
|
|
|
|
|
|
Loss Before Income Taxes |
|
$ |
(1,750 |
) |
|
$ |
(2,627 |
) |
|
$ |
(2,290 |
) |
|
$ |
(4,400 |
) |
Restructuring & impairment charges |
|
771 |
|
|
1,114 |
|
|
957 |
|
|
1,087 |
|
Adjusted Loss Before Income
Taxes |
|
$ |
(979 |
) |
|
$ |
(1,513 |
) |
|
$ |
(1,333 |
) |
|
$ |
(3,313 |
) |
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss)
Before Income Taxes - International |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
$ |
(2,279 |
) |
|
$ |
(1,075 |
) |
|
$ |
504 |
|
|
$ |
5,160 |
|
Restructuring & impairment charges |
|
— |
|
|
— |
|
|
— |
|
|
156 |
|
Adjusted Income (Loss) Before
Income Taxes |
|
$ |
(2,279 |
) |
|
$ |
(1,075 |
) |
|
$ |
504 |
|
|
$ |
5,316 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
673 |
|
|
$ |
(2,160 |
) |
|
$ |
13,953 |
|
|
$ |
12,182 |
|
Adjustments |
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
815 |
|
|
1,579 |
|
|
4,121 |
|
|
6,818 |
|
Provision for income taxes |
|
(5,342 |
) |
|
(83 |
) |
|
699 |
|
|
3,972 |
|
Depreciation and amortization |
|
7,006 |
|
|
5,716 |
|
|
28,067 |
|
|
23,605 |
|
EBITDA |
|
3,152 |
|
|
5,052 |
|
|
46,840 |
|
|
46,577 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs (excluding depreciation) |
|
1,384 |
|
|
— |
|
|
2,497 |
|
|
— |
|
Loss on repurchase of senior convertible notes |
|
— |
|
|
— |
|
|
— |
|
|
615 |
|
Restructuring & impairment charges |
|
3,578 |
|
|
1,696 |
|
|
3,764 |
|
|
2,570 |
|
Total Adjustments |
|
4,962 |
|
|
1,696 |
|
|
6,261 |
|
|
3,185 |
|
Adjusted EBITDA |
|
$ |
8,114 |
|
|
$ |
6,748 |
|
|
$ |
53,101 |
|
|
$ |
49,762 |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating
Activities |
|
|
|
|
|
$ |
955 |
|
|
$ |
46,605 |
|
Net Change in Non-Manufacturer
Floorplan Payable |
|
|
|
|
|
50,158 |
|
|
16,818 |
|
Adjustment for Constant Equity
in Inventory |
|
|
|
|
|
(33,359 |
) |
|
(16,030 |
) |
Adjusted Net Cash Provided by Operating Activities |
|
|
|
|
|
$ |
17,754 |
|
|
$ |
47,393 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The tax
effect of adjustments for all U.S. related items was determined
using the federal and state statutory tax rates applicable to the
respective period with an impact for state taxes given our
valuation allowances against deferred tax assets. The federal
statutory tax rate for the fiscal years ended January 31, 2020 and
2019 was 23.5% and 21.0%, respectively. |
(2) Amounts
reflect the tax benefit recognized from the release of the
valuation allowance on our U.S. deferred tax assets. |
(3) Adjustments
are net of amounts allocated to participating securities where
applicable. |
|
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