Titan Machinery Inc. (Nasdaq: TITN), a leading network of
full-service agricultural and construction equipment stores, today
reported financial results for the fiscal third quarter ended
October 31, 2020.
David Meyer, Titan Machinery’s Chairman and
Chief Executive Officer, stated, "We exceeded our third quarter
top-line expectations due to strong parts and service performance
in our Agriculture segment and better than anticipated equipment
sales in our Construction and International segments. The stronger
revenue, combined with continued success controlling operating
expenses and driving down interest expense, resulted in a
significant improvement to our pre-tax income. Due to our strong
third quarter results and solid agriculture market fundamentals
that are supporting our fourth quarter, including improved corn and
soybean prices, we are raising our earnings per share guidance for
fiscal year 2021. COVID-19 continues to challenge our team and our
customer's end markets, however, I'm proud of how our team has
responded to the new operating environment as they continue to
deliver the high level of support our customers have come to
expect."
Fiscal 2021 Third Quarter
Results
Consolidated ResultsFor the third quarter of
fiscal 2021, revenue was flat versus prior year at $360.9 million.
Equipment sales were $240.9 million for the third quarter of fiscal
2021, compared to $246.0 million in the third quarter last year.
Parts sales were $76.8 million for the third quarter of fiscal
2021, compared to $70.8 million in the third quarter last year.
Revenue generated from service was $30.7 million for the third
quarter of fiscal 2021, compared to $27.6 million in the third
quarter last year. Revenue from rental and other was $12.5 million
for the third quarter of fiscal 2021, compared to $16.6 million in
the third quarter last year.
Gross profit for the third quarter of fiscal
2021 was $72.6 million, compared to $71.8 million in the third
quarter last year. Gross profit margin increased 20 basis points to
20.1% versus the comparable period last year. The increase in gross
profit margin was primarily due to an increased mix of higher
margin parts and service business, as compared to the third quarter
of last year.
Operating expenses decreased by $4.1 million to
$54.1 million for the third quarter of fiscal 2021, compared to
$58.2 million in the third quarter last year due to managed expense
reductions in our Construction and International segments and lower
expenses caused by COVID-19, such as travel and fuel expenses.
Operating expenses as a percentage of sales decreased 110 basis
points to 15.0% for the third quarter of fiscal 2021, compared to
16.1% of revenue in the prior year period. The Company recognized
$2.6 million in goodwill, intangibles and long-lived asset
impairment in the quarter compared to $0.1 million in the prior
year. Nearly all of the impairment in the current quarter related
to certain goodwill and other intangible assets in our
International segment.
Floorplan and other interest expense was $1.7
million in the third quarter of fiscal 2021, compared to
$2.4 million for the same period last year. The decrease was
due to a lower interest rate environment, a lower interest rate
spread under our new five-year Amended and Restated Credit
Agreement that was finalized in April 2020, and lower borrowings on
our line of credit.
In the third quarter of fiscal 2021, net income
was $9.9 million, or earnings per diluted share of $0.44, compared
to net income of $8.2 million, or earnings per diluted share of
$0.37, for the third quarter of last year.
On an adjusted basis, net income for the third
quarter of fiscal 2021 was $13.0 million, or adjusted earnings per
diluted share of $0.58, compared to adjusted net income of $10.7
million, or adjusted earnings per diluted share of $0.48, for the
third quarter of last year.
Adjusted EBITDA was $24.8 million in the third
quarter of fiscal 2021, compared to $21.4 million in the third
quarter of last year.
Segment ResultsAgriculture Segment - Revenue for
the third quarter of fiscal 2021 was $220.6 million, compared to
$214.1 million in the third quarter last year. The increase in
revenue was driven by on-going strength in the parts and service
business. Pre-tax income for the third quarter of fiscal 2021 was
$13.6 million, compared to $10.3 million of pre-tax income in the
third quarter last year.
Construction Segment - Revenue for the third
quarter of fiscal 2021 was $79.0 million, compared to $78.0 million
in the third quarter last year. The increase in revenue was driven
by an increase in equipment sales that was partially offset by
lower rental revenue. Pre-tax income for the third quarter of
fiscal 2021 was $1.4 million, compared to a pre-tax income of $0.3
million in the third quarter last year.
International Segment - Revenue for the third
quarter of fiscal 2021 was $61.2 million, compared to $68.8 million
in the third quarter last year. Lower revenue was driven by
decreased customer demand due to below average yields in certain
areas of our International footprint as well as overall challenging
economic and business conditions due to COVID-19. Pre-tax loss for
the third quarter of fiscal 2021 was $2.4 million, compared to
pre-tax income of $2.1 million in the third quarter last year. The
lower results were the result of decreased revenues and a $2.3
million impairment of goodwill and other intangibles in this
segment. Adjusted pre-tax income for the third quarter of fiscal
2021 was $0.2 million, compared to adjusted pre-tax income of
$1.6 million in the third quarter last year.
Fiscal 2021 First Nine Months
Results
Revenue was $974.5 million for the first nine
months of fiscal 2021, compared to $954.2 million for the same
period last year. Net income for the first nine months of fiscal
2021 was $18.6 million, or $0.83 per diluted share, compared to a
net income of $13.3 million, or $0.60 per diluted share, for the
same period last year. On an adjusted basis, net income for the
first nine months of fiscal 2021 was $23.0 million, or $1.02 per
diluted share, compared to an adjusted net income of $18.1 million,
or $0.81 per diluted share, in the same period last year. Adjusted
EBITDA was $51.7 million in the first nine months of fiscal 2021,
compared to $44.4 million in the same period last year.
Balance Sheet and Cash Flow
Cash at the end of the third quarter of fiscal
2021 was $41.8 million. Inventories decreased to $532.7 million as
of October 31, 2020, compared to $597.4 million as of
January 31, 2020. This inventory decrease includes a $66.1
million decrease in equipment inventory, which reflects a decrease
in new equipment inventory of $36.1 million and a $29.9 million
decrease in used equipment inventory. Outstanding floorplan
payables were $287.8 million on $765.0 million total available
floorplan lines of credit as of October 31, 2020, compared to
$371.8 million outstanding floorplan payables as of
January 31, 2020.
In the first nine months of fiscal 2021, net
cash provided by operating activities was $60.8 million, compared
to net cash used for operating activities of $8.3 million in the
first nine months of fiscal 2020. 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 $56.5
million in the first nine months of fiscal 2021, compared to
adjusted net cash used for operating activities of $35.0 million in
the first nine months of fiscal 2020.
Mr. Meyer concluded, "Our financial position
continues to improve due to strong year-to-date performance and
prudent management of our inventory position, which is driving
significant increases in cash provided by operating activities. Due
to the strong third quarter performance and our outlook for the
remainder of fiscal 2021, we are increasing our revenue
expectations for all three of our operating segments and raising
our earnings per share guidance. We are actively monitoring the
current environment and the associated impacts that it may have on
our customers, the commodities markets, and our business. We remain
focused on keeping our business in a sound condition while we
pursue our long-term growth initiatives."
Fiscal 2021 Modeling
Assumptions
The following are the Company's current
expectations for fiscal 2021 modeling assumptions. We believe
modeling assumptions will continue to be impacted by the
challenging global economy due to the COVID-19 pandemic, creating a
higher degree of uncertainty in these assumptions compared to a
normal environment.
|
Current Assumptions |
Previous Assumptions |
Segment
Revenue |
|
|
Agriculture(1) |
Up 5-10% |
Up 0-5% |
Construction(2) |
Down 0-5% |
Down 5-10% |
International |
Down 5-10% |
Down 10-15% |
|
|
|
Diluted
EPS |
$0.83 - $0.93 |
$0.55 - $0.75 |
Adjusted Diluted
EPS(3) |
$1.05 - $1.15 |
$0.65 - $0.85 |
|
|
|
|
(1) Includes
the full year impact of the Northwood, ND acquisition completed in
October 2019 and partial year impact of the HorizonWest acquisition
completed in May 2020. |
(2) Includes
the full year impact of the Albuquerque, NM store divestiture in
January 2020. |
(3) Adjusted
Diluted EPS excludes impacts related to: impairment expenses for
certain goodwill, intangible assets, and long-lived assets,
primarily in the Company's International segment; anticipated
ERP-related expenses; and Ukraine remeasurement (gains) and
losses. |
Conference Call and Presentation
InformationThe 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
Tuesday, December 8, 2020, by dialing (844) 512-2921 from the U.S.,
or (412) 317-6671 from international locations, and entering
confirmation code 13711574.
A copy of the presentation that will accompany
the prepared remarks on 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 these 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 financial
measures. Generally, the non-GAAP financial measures include
adjustments for items such as valuation allowances for income tax,
costs associated with impairment charges, Ukraine remeasurement
gains/losses and charges associated with our Enterprise Resource
Planning (ERP) system transition. These 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 presented in this release 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 adjusted net income (loss),
adjusted EBITDA, 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, to their respective most
directly comparable GAAP financial measure.
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. These statements are based
upon the current beliefs and expectations of our management.
Forward-looking statements made in this release, which may 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, 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, the duration, scope and
impact of the COVID-19 pandemic on the Company's operations, a
substantial dependence on a single distributor, the continued
availability of organic growth and acquisition opportunities,
potential difficulties integrating acquired stores, 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, weather
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 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 in this release 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, except per share data) |
(Unaudited) |
|
|
|
|
|
October 31, 2020 |
|
January 31, 2020 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash |
$ |
41,808 |
|
|
$ |
43,721 |
|
Receivables, net of allowance for expected credit losses |
73,531 |
|
|
72,776 |
|
Inventories |
532,746 |
|
|
597,394 |
|
Prepaid expenses and other |
8,737 |
|
|
13,655 |
|
Total current assets |
656,822 |
|
|
727,546 |
|
Noncurrent Assets |
|
|
|
Property and equipment, net of accumulated depreciation |
148,520 |
|
|
145,562 |
|
Operating lease assets |
81,401 |
|
|
88,281 |
|
Deferred income taxes |
3,787 |
|
|
2,147 |
|
Goodwill |
1,433 |
|
|
2,327 |
|
Intangible assets, net of accumulated amortization |
7,764 |
|
|
8,367 |
|
Other |
1,129 |
|
|
1,113 |
|
Total noncurrent assets |
244,034 |
|
|
247,797 |
|
Total
Assets |
$ |
900,856 |
|
|
$ |
975,343 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current Liabilities |
|
|
|
Accounts payable |
$ |
23,433 |
|
|
$ |
16,976 |
|
Floorplan payable |
287,837 |
|
|
371,772 |
|
Current maturities of long-term debt |
4,423 |
|
|
13,779 |
|
Current operating lease liabilities |
12,373 |
|
|
12,259 |
|
Deferred revenue |
14,708 |
|
|
40,968 |
|
Accrued expenses and other |
38,433 |
|
|
38,409 |
|
Total current liabilities |
381,207 |
|
|
494,163 |
|
Long-Term Liabilities |
|
|
|
Long-term debt, less current maturities |
55,109 |
|
|
37,789 |
|
Operating lease liabilities |
80,782 |
|
|
88,387 |
|
Deferred income taxes |
5,814 |
|
|
2,055 |
|
Other long-term liabilities |
10,376 |
|
|
7,845 |
|
Total long-term liabilities |
152,081 |
|
|
136,076 |
|
Stockholders' Equity |
|
|
|
Common stock |
— |
|
|
— |
|
Additional paid-in-capital |
252,270 |
|
|
250,607 |
|
Retained earnings |
116,087 |
|
|
97,717 |
|
Accumulated other comprehensive loss |
(789 |
) |
|
(3,220 |
) |
Total stockholders' equity |
367,568 |
|
|
345,104 |
|
Total
Liabilities and Stockholders' Equity |
$ |
900,856 |
|
|
$ |
975,343 |
|
TITAN MACHINERY INC. |
Consolidated Condensed Statements of
Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
|
|
|
|
|
|
|
Equipment |
$ |
240,901 |
|
|
$ |
245,986 |
|
|
$ |
662,060 |
|
|
$ |
654,376 |
|
Parts |
76,778 |
|
|
70,788 |
|
|
194,846 |
|
|
181,928 |
|
Service |
30,696 |
|
|
27,553 |
|
|
84,282 |
|
|
77,215 |
|
Rental and other |
12,497 |
|
|
16,609 |
|
|
33,357 |
|
|
40,688 |
|
Total Revenue |
360,872 |
|
|
360,936 |
|
|
974,545 |
|
|
954,207 |
|
Cost of Revenue |
|
|
|
|
|
|
|
Equipment |
215,770 |
|
|
219,484 |
|
|
593,048 |
|
|
583,345 |
|
Parts |
53,556 |
|
|
49,834 |
|
|
136,205 |
|
|
128,380 |
|
Service |
10,254 |
|
|
8,950 |
|
|
28,263 |
|
|
25,170 |
|
Rental and other |
8,741 |
|
|
10,894 |
|
|
23,379 |
|
|
27,612 |
|
Total Cost of Revenue |
288,321 |
|
|
289,162 |
|
|
780,895 |
|
|
764,507 |
|
Gross Profit |
72,551 |
|
|
71,774 |
|
|
193,650 |
|
|
189,700 |
|
Operating Expenses |
54,115 |
|
|
58,184 |
|
|
160,252 |
|
|
165,594 |
|
Impairment of Goodwill |
1,453 |
|
|
— |
|
|
1,453 |
|
|
— |
|
Impairment of Intangible and
Long-Lived Assets |
1,102 |
|
|
51 |
|
|
1,318 |
|
|
186 |
|
Income from Operations |
15,881 |
|
|
13,539 |
|
|
30,627 |
|
|
23,920 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
Interest and other income (expense) |
(360 |
) |
|
1,273 |
|
|
333 |
|
|
2,687 |
|
Floorplan interest expense |
(757 |
) |
|
(1,448 |
) |
|
(2,811 |
) |
|
(3,724 |
) |
Other interest expense |
(940 |
) |
|
(955 |
) |
|
(2,884 |
) |
|
(3,562 |
) |
Income Before Income
Taxes |
13,824 |
|
|
12,409 |
|
|
25,265 |
|
|
19,321 |
|
Provision for Income
Taxes |
3,912 |
|
|
4,195 |
|
|
6,691 |
|
|
6,041 |
|
Net Income |
9,912 |
|
|
8,214 |
|
|
18,574 |
|
|
13,280 |
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Share |
$ |
0.44 |
|
|
$ |
0.37 |
|
|
$ |
0.83 |
|
|
$ |
0.60 |
|
Diluted Weighted Average
Common Shares |
22,137 |
|
|
21,976 |
|
|
22,091 |
|
|
21,942 |
|
TITAN MACHINERY INC. |
Consolidated Condensed Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
Nine Months Ended October 31, |
|
2020 |
|
2019 |
Operating Activities |
|
|
|
Net income |
$ |
18,574 |
|
|
$ |
13,280 |
|
Adjustments to reconcile net income to net cash provided by (used
for) operating activities |
|
|
|
Depreciation and amortization |
17,731 |
|
|
21,061 |
|
Impairment |
2,771 |
|
|
186 |
|
Other, net |
12,033 |
|
|
12,281 |
|
Changes in assets and liabilities |
|
|
|
Inventories |
76,495 |
|
|
(133,929 |
) |
Manufacturer floorplan payable |
(46,466 |
) |
|
113,632 |
|
Other working capital |
(20,324 |
) |
|
(34,800 |
) |
Net Cash Provided by (Used
for) Operating Activities |
60,814 |
|
|
(8,289 |
) |
Investing Activities |
|
|
|
Property and equipment purchases |
(16,205 |
) |
|
(20,402 |
) |
Proceeds from sale of property and equipment |
795 |
|
|
1,386 |
|
Acquisition consideration, net of cash acquired |
(6,790 |
) |
|
(11,752 |
) |
Other, net |
(16 |
) |
|
13 |
|
Net Cash Used for Investing
Activities |
(22,216 |
) |
|
(30,755 |
) |
Financing Activities |
|
|
|
Net change in non-manufacturer floorplan payable |
(40,779 |
) |
|
62,387 |
|
Principal payments on senior convertible notes |
— |
|
|
(45,644 |
) |
Net proceeds from (payments on) long-term debt and finance
leases |
909 |
|
|
18,668 |
|
Other, net |
(909 |
) |
|
(509 |
) |
Net Cash Provided by (Used
for) Financing Activities |
(40,779 |
) |
|
34,902 |
|
Effect of Exchange Rate
Changes on Cash |
268 |
|
|
(183 |
) |
Net Change in Cash |
(1,913 |
) |
|
(4,325 |
) |
Cash at Beginning of
Period |
43,721 |
|
|
56,745 |
|
Cash at End of Period |
$ |
41,808 |
|
|
$ |
52,420 |
|
TITAN MACHINERY INC. |
Segment Results |
(in thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
2020 |
|
2019 |
|
% Change |
|
2020 |
|
2019 |
|
% Change |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
$ |
220,625 |
|
|
$ |
214,073 |
|
|
3.1% |
|
$ |
583,326 |
|
|
$ |
533,538 |
|
|
9.3% |
Construction |
79,030 |
|
|
78,031 |
|
|
1.3% |
|
216,862 |
|
|
232,813 |
|
|
(6.9)% |
International |
61,217 |
|
|
68,832 |
|
|
(11.1)% |
|
174,357 |
|
|
187,856 |
|
|
(7.2)% |
Total |
$ |
360,872 |
|
|
$ |
360,936 |
|
|
—% |
|
$ |
974,545 |
|
|
$ |
954,207 |
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
$ |
13,575 |
|
|
$ |
10,259 |
|
|
32.3% |
|
$ |
26,490 |
|
|
$ |
18,312 |
|
|
44.7% |
Construction |
1,448 |
|
|
347 |
|
|
n/m |
|
(50 |
) |
|
(541 |
) |
|
90.8% |
International |
(2,424 |
) |
|
2,061 |
|
|
n/m |
|
(3,136 |
) |
|
2,783 |
|
|
n/m |
Segment income before income
taxes |
12,599 |
|
|
12,667 |
|
|
(0.5)% |
|
23,304 |
|
|
20,554 |
|
|
13.4% |
Shared Resources |
1,225 |
|
|
(258 |
) |
|
n/m |
|
1,961 |
|
|
(1,233 |
) |
|
n/m |
Total |
$ |
13,824 |
|
|
$ |
12,409 |
|
|
11.4% |
|
$ |
25,265 |
|
|
$ |
19,321 |
|
|
30.8% |
TITAN MACHINERY INC. |
Non-GAAP Reconciliations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Adjusted Net
Income |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
9,912 |
|
|
$ |
8,214 |
|
|
$ |
18,574 |
|
|
$ |
13,280 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs |
|
765 |
|
|
2,062 |
|
|
2,250 |
|
|
4,778 |
|
Impairment charges |
|
2,555 |
|
|
51 |
|
|
2,771 |
|
|
186 |
|
Ukraine remeasurement (gain) / loss |
|
339 |
|
|
(435 |
) |
|
974 |
|
|
(588 |
) |
Total Pre-Tax Adjustments |
|
3,659 |
|
|
1,678 |
|
|
5,995 |
|
|
4,376 |
|
Less: Tax Effect of
Adjustments (1) |
|
1,566 |
|
|
(846 |
) |
|
2,613 |
|
|
(417 |
) |
Plus: Income Tax Valuation
Allowance |
|
1,018 |
|
|
— |
|
|
1,018 |
|
|
— |
|
Total Adjustments |
|
3,111 |
|
|
2,524 |
|
|
4,400 |
|
|
4,793 |
|
Adjusted Net Income |
|
$ |
13,023 |
|
|
$ |
10,738 |
|
|
$ |
22,974 |
|
|
$ |
18,073 |
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS |
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.44 |
|
|
$ |
0.37 |
|
|
$ |
0.83 |
|
|
$ |
0.60 |
|
Adjustments (2) |
|
|
|
|
|
|
|
|
ERP transition costs |
|
0.03 |
|
|
0.09 |
|
|
0.10 |
|
|
0.21 |
|
Impairment charges |
|
0.11 |
|
|
— |
|
|
0.12 |
|
|
0.01 |
|
Ukraine remeasurement (gain) / loss |
|
0.02 |
|
|
(0.02 |
) |
|
0.04 |
|
|
(0.03 |
) |
Total Pre-Tax Adjustments |
|
0.16 |
|
|
0.07 |
|
|
0.26 |
|
|
0.19 |
|
Less: Tax Effect of
Adjustments (1) |
|
0.07 |
|
|
(0.04 |
) |
|
0.12 |
|
|
(0.02 |
) |
Plus: Income Tax Valuation
Allowance |
|
0.05 |
|
|
— |
|
|
0.05 |
|
|
— |
|
Total Adjustments |
|
0.14 |
|
|
0.11 |
|
|
0.19 |
|
|
0.21 |
|
Adjusted Diluted EPS |
|
$ |
0.58 |
|
|
$ |
0.48 |
|
|
$ |
1.02 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
Adjusted Income Before Income
Taxes |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
$ |
13,824 |
|
|
$ |
12,409 |
|
|
$ |
25,264 |
|
|
$ |
19,321 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs |
|
766 |
|
|
2,061 |
|
|
2,250 |
|
|
4,778 |
|
Impairment charges |
|
2,555 |
|
|
51 |
|
|
2,771 |
|
|
186 |
|
Ukraine remeasurement (gain) / loss |
|
338 |
|
|
(435 |
) |
|
973 |
|
|
(588 |
) |
Total Adjustments |
|
3,659 |
|
|
1,677 |
|
|
5,994 |
|
|
4,376 |
|
Adjusted Income Before Income
Taxes |
|
$ |
17,483 |
|
|
$ |
14,086 |
|
|
$ |
31,258 |
|
|
$ |
23,697 |
|
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss) Before Income Taxes
- Agriculture |
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
$ |
13,575 |
|
|
$ |
10,259 |
|
|
$ |
26,490 |
|
|
$ |
18,311 |
|
Impairment charges |
|
244 |
|
|
— |
|
|
244 |
|
|
— |
|
Adjusted Income Before Income
Taxes |
|
$ |
13,819 |
|
|
$ |
10,259 |
|
|
$ |
26,734 |
|
|
$ |
18,311 |
|
|
|
|
|
|
|
|
|
|
Adjusted Loss Before
Income Taxes - Construction |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
$ |
1,448 |
|
|
$ |
347 |
|
|
$ |
(50 |
) |
|
$ |
(541 |
) |
Impairment charges |
|
— |
|
|
51 |
|
|
216 |
|
|
186 |
|
Adjusted Income (Loss) Before
Income Taxes |
|
$ |
1,448 |
|
|
$ |
398 |
|
|
$ |
166 |
|
|
$ |
(355 |
) |
|
|
|
|
|
|
|
|
|
Adjusted Income Before
Income Taxes - International |
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
|
$ |
(2,424 |
) |
|
$ |
2,061 |
|
|
$ |
(3,136 |
) |
|
$ |
2,783 |
|
Adjustments |
|
|
|
|
|
|
|
|
Impairment charges |
|
2,311 |
|
|
— |
|
|
2,311 |
|
|
— |
|
Ukraine remeasurement (gain) / loss |
|
338 |
|
|
(435 |
) |
|
973 |
|
|
(588 |
) |
Adjusted Income Before Income
Taxes |
|
$ |
225 |
|
|
$ |
1,626 |
|
|
$ |
148 |
|
|
$ |
2,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Net Income |
|
$ |
9,912 |
|
|
$ |
8,214 |
|
|
$ |
18,574 |
|
|
$ |
13,280 |
|
Adjustments |
|
|
|
|
|
|
|
|
Interest expense, net of interest income |
|
898 |
|
|
887 |
|
|
2,690 |
|
|
3,305 |
|
Provision for income taxes |
|
3,912 |
|
|
4,195 |
|
|
6,691 |
|
|
6,041 |
|
Depreciation and amortization |
|
6,445 |
|
|
7,797 |
|
|
17,731 |
|
|
21,061 |
|
EBITDA |
|
21,167 |
|
|
21,093 |
|
|
45,686 |
|
|
43,687 |
|
Adjustments |
|
|
|
|
|
|
|
|
ERP transition costs |
|
765 |
|
|
687 |
|
|
2,250 |
|
|
1,113 |
|
Impairment charges |
|
2,555 |
|
|
51 |
|
|
2,771 |
|
|
186 |
|
Ukraine remeasurement (gain) / loss |
|
339 |
|
|
(435 |
) |
|
974 |
|
|
(588 |
) |
Total Adjustments |
|
3,659 |
|
|
303 |
|
|
5,995 |
|
|
711 |
|
Adjusted EBITDA |
|
$ |
24,826 |
|
|
$ |
21,396 |
|
|
$ |
51,681 |
|
|
$ |
44,398 |
|
|
|
|
|
|
|
|
|
|
Adjusted Net Cash Provided By (Used for)
Operating Activities |
|
|
|
|
|
|
|
|
Net Cash Used for Operating
Activities |
|
|
|
|
|
$ |
60,814 |
|
|
$ |
(8,289 |
) |
Net Change in Non-Manufacturer
Floorplan Payable |
|
|
|
|
|
(40,779 |
) |
|
62,387 |
|
Adjustment for Constant Equity
in Inventory |
|
|
|
|
|
36,477 |
|
|
(89,076 |
) |
Adjusted Net Cash Provided by
(Used) for Operating Activities |
|
|
|
|
|
$ |
56,512 |
|
|
$ |
(34,978 |
) |
|
|
|
|
|
|
|
|
|
(1) The tax effect
of U.S. related adjustments was calculated using a 26% tax rate,
determined based on a 21% federal statutory rate and a 5% blended
state income tax rate. The tax effect of the Germany related
adjustments was calculated using a 29% tax rate. Included in the
tax effect of the adjustments is the tax impact of foreign currency
changes in Ukraine of $0.7 million for the three months ended
October 31, 2020 and $1.3 million for the nine months ended October
31, 2020. |
(2) Adjustments are
net of amounts allocated to participating securities where
applicable. |
|
|
|
|
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