Titan Machinery Inc. (Nasdaq: TITN) ("Titan" or the "Company"), a
leading network of full-service agricultural and construction
equipment stores, today reported financial results for the fiscal
second quarter ended July 31, 2024.
"As previously announced, our second quarter
results reflect the challenging market conditions that are
impacting farmer sentiment and agriculture equipment sales,"
commented Bryan Knutson, Titan Machinery's President and Chief
Executive Officer. "In response to these market dynamics, we have
been executing on the strategies we outlined: actively managing our
inventory levels with a focus on used equipment, implementing
targeted cost control measures, and further emphasizing our
customer care initiatives to drive growth in our higher-margin
parts and service businesses. The efficiencies and process
improvements we've integrated into our business model since the
last industry downturn are enhancing our ability to effectively
manage through the current cycle and positioning us well to emerge
stronger when market conditions improve. The improvements in our
business, in conjunction with healthier industry dynamics, support
our expectation that we will experience a more condensed
contractionary period versus the previous cycle."
Fiscal 2025
Second Quarter Results
Consolidated Results
For the second quarter of fiscal 2025, revenue
was $633.7 million compared to $642.6 million in the second quarter
of last year. Equipment revenue was $465.2 million for the second
quarter of fiscal 2025, compared to $480.1 million in the second
quarter last year. Parts revenue was $109.8 million for the second
quarter of fiscal 2025, compared to $108.5 million in the second
quarter last year. Revenue generated from service was $47.3 million
for the second quarter of fiscal 2025, compared to $42.5 million in
the second quarter last year. Revenue from rental and other was
$11.4 million for the second quarter of fiscal 2025, compared to
$11.5 million in the second quarter last year.
Gross profit for the second quarter of fiscal
2025 was $112.4 million, compared to $133.4 million in the second
quarter last year. The Company's gross profit margin was 17.7% in
the second quarter of fiscal 2025, compared to 20.8% in the second
quarter last year. The year-over-year decrease in gross profit
margin was primarily due to lower equipment margins which are being
driven by higher levels of inventory and softening demand.
Operating expenses were $95.2 million for the
second quarter of fiscal 2025, compared to $88.8 million in the
second quarter last year. The year-over-year increase was led by
additional operating expenses due to acquisitions that have taken
place in the past year. Operating expense as a percentage of
revenue was 15.0% for the second quarter of fiscal 2025, compared
to 13.8% of revenue in the second quarter last year.
Floorplan interest expense and other interest
expense aggregated to $13.0 million in the second quarter of fiscal
2025, compared to $3.7 million for the same period last year, with
the increase primarily due to a higher level of interest-bearing
inventory, including the usage of existing floorplan capacity to
finance the O'Connors acquisition.
In the second quarter of fiscal 2025, net loss
was $4.3 million, or loss per diluted share of $0.19, compared to
net income of $31.3 million, or earnings per diluted share of
$1.38, for the second quarter of last year. As previously
announced, second quarter of fiscal 2025 results included a
one-time, non-cash sale-leaseback financing expense of
approximately $8.3 million or $0.36 per diluted share; excluding
this impact, adjusted net income was $4.0 million and adjusted
earnings per diluted share was $0.17.
The Company generated $9.1 million in EBITDA in
the second quarter of fiscal 2025, compared to $50.4 million
generated in the second quarter of last year. Excluding the impact
from the aforementioned one-time, non-cash sale-leaseback financing
expense, adjusted EBITDA was $20.2 million in the second quarter of
fiscal 2025.
Segment Results
Agriculture Segment - Revenue for the second
quarter of fiscal 2025 was $424.0 million, compared to $469.1
million in the second quarter last year. The decrease was primarily
due to a same-store sales decrease of 11.2%, partially offset by
contributions from the acquisition of Scott Supply, Co. in January
2024. The revenue decrease resulted from a softening of demand for
equipment purchases due to lower farmer sentiment which is being
driven by the decline of net farm income and sustained high
interest rates. Pre-tax income for the second quarter of fiscal
2025 was $0.6 million, compared to $33.0 million in the second
quarter of the prior year. Included in the results for the second
quarter of fiscal 2025, was a $6.1 million one-time, non-cash
sale-leaseback expense.
Construction Segment - Revenue for the second
quarter of fiscal 2025 was $80.2 million, compared to $82.9 million
in the second quarter last year. Pre-tax loss for the second
quarter of fiscal 2025 was $4.9 million, compared to pre-tax income
of $5.2 million in the second quarter last year. Included in the
results for the second quarter of fiscal 2025, was a $5.1 million
one-time, non-cash sale-leaseback expense.
Europe Segment - Revenue for the second quarter
of fiscal 2025 was $68.1 million, compared to $90.6 million in the
second quarter last year; which includes a $0.6 million decrease in
revenue from foreign currency fluctuations. Net of the effect of
these foreign currency fluctuations, revenue decreased $21.9
million, or 24.1%. The year-over-year decrease in revenue was
driven by the softening of new equipment demand, which was impacted
by a decrease in global commodity prices, sustained high interest
rates, and drought conditions in Eastern Europe. Pre-tax loss for
the second quarter of fiscal 2025 was $2.3 million, compared to
pre-tax income of $5.6 million in the second quarter of the prior
year.
Australia Segment - Revenue for the second
quarter of fiscal 2025 was $61.3 million and pre-tax income for the
second quarter of fiscal 2025 was $1.4 million.
Balance Sheet and Cash Flow
Cash at the end of the second quarter of fiscal
2025 was $31.2 million. Inventories increased to $1.5 billion as of
July 31, 2024, compared to $1.3 billion as of January 31,
2024. This change in inventory reflects increases of $194.4 million
and $31.9 million in new equipment and used equipment inventories
respectively, partially offset by a decrease of $1.9 million in
parts inventory. Outstanding floorplan payables were $1.2 billion
on $1.5 billion total available floorplan and working capital lines
of credit as of July 31, 2024, compared to $893.8 million
outstanding floorplan payables as of January 31, 2024.
For the six months ended July 31, 2024, the
Company's net cash used for operating activities was
$47.4 million, compared to net cash used for operating
activities of $122.7 million for the six months ended July 31,
2023. This decrease in the usage of cash for operating activities
was primarily driven by an increase in the amount drawn on
manufacturing floorplan payables and a favorable collection of
outstanding receivables, which was partially offset by the decrease
in net income for the first six months of fiscal 2025 compared to
the prior year period. For the first six months ended July 31,
2024, net cash provided by financing activities for $62.4 million,
representing a year over year decrease of $119.4 million. The
decrease was primarily driven by higher floorplan indebtedness
incurred during the first six months of fiscal 2024.
Additional Management
Commentary
Mr. Knutson continued, "We recently updated our
full year fiscal 2025 modeling assumptions in conjunction with the
announcement of our preliminary fiscal second quarter results. In
response to the softening of retail demand amid a difficult
backdrop of significantly lower net farm income, we have
implemented a more aggressive strategy to catalyze sales and reduce
our inventories. This strategy requires compression of our
near-term equipment margins, and we believe these deliberate
actions will help shorten the impact of this contractionary cycle
on our performance, and accelerate our return to a more normalized
margin profile as the industry cycle progresses."
Fiscal 2025 Modeling
Assumptions
The Company's current expectations for fiscal
2025 modeling assumptions are unchanged from what was disclosed in
our pre-release earlier this month.
|
|
|
Current Assumptions |
Segment Revenue |
|
|
|
Agriculture |
|
|
Down 5% - Down 10% |
Construction |
|
|
Down 2.5% - Up 2.5% |
Europe |
|
|
Down 12% - Down 17% |
Australia |
|
|
$230M - $250M USD |
|
|
|
|
Diluted Earnings (Loss) Per Share |
|
|
($0.36) - $0.14 |
Adjusted Diluted Earnings Per Share |
|
|
$0.00 - $0.50* |
*Adjusted for an estimated $0.36 impact for the non-cash,
sale-leaseback financing expense in the second quarter of fiscal
2025. |
|
Conference Call and Presentation
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) 704-4453 from the U.S. International callers can dial
(201) 389-0920. A telephone replay will be available approximately
two hours after the call concludes and will be available through
Thursday, September 12, 2024, by dialing (844) 512-2921 from the
U.S., or (412) 317-6671 from international locations, and entering
confirmation code 13747715.
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. The non-GAAP financial
measures in this release include GAAP financial measures adjusted
for a non-cash sale-leaseback financing expense. 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 financial 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, and adjusted income (loss) before income
taxes (all non-GAAP financial measures) for the periods presented,
to their respective most directly comparable GAAP financial
measures.
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, Europe and Australia, servicing
farmers, ranchers and commercial applicators. The network consists
of US locations in Colorado, Idaho, Iowa, Kansas, Minnesota,
Missouri, Montana, Nebraska, North Dakota, South Dakota,
Washington, Wisconsin and Wyoming. The international network
includes European stores located in Bulgaria, Germany, Romania, and
Ukraine and Australian stores located in New South Wales, South
Australia, and Victoria in Southeastern Australia. 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 include
statements regarding modeling assumptions and expected results of
operations for the fiscal year ending January 31, 2025,
statements regarding the Company's ability to generate improved
mid-cycle financial results, as compared to prior cycles, and may
include statements regarding Agriculture, Construction, Europe and
Australia segment initiatives and improvements, segment revenue
realization, growth and profitability expectations, inventory
availability and consumer demand expectations, and agricultural and
construction equipment industry conditions and trends, involve
known and unknown risks and uncertainties that may cause Titan’s
actual results in future periods to differ materially from the
forecasted assumptions and expected results. The Company’s risks
and uncertainties include, among other things, our ability to
successfully integrate, and realize growth opportunities and
synergies in connection with the O'Connors acquisition and the risk
that we have assumed unforeseen or other liabilities in connection
with the O'Connors acquisition. In addition, risks and
uncertainties also include the impact of the Russia-Ukraine
conflict on our Ukrainian subsidiary, our substantial dependence on
CNH Industrial including CNH Industrial's ability to design,
manufacture and allocate inventory to our stores necessary to
satisfy our customers' demands, supply chain disruptions impacting
our suppliers, including CNH Industrial, 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 manage 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’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 conducts its business in a highly competitive and rapidly
changing environment. Accordingly, new risks and uncertainties may
arise. It is not possible for management to predict all such risks
and uncertainties, nor to assess the impact of all such risks and
uncertainties on Titan’s business or the extent to which any
individual risk or uncertainty, or combination of risks and
uncertainties, may cause results to differ materially from those
contained in any forward-looking statement. Other than as required
by law, Titan disclaims any obligation to update such risks and
uncertainties 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.Jeff Sonnek,
jeff.sonnek@icrinc.com646-277-1263
|
TITAN MACHINERY INC. |
Consolidated Condensed Balance Sheets |
(in thousands) |
(Unaudited) |
|
|
|
|
|
July 31, 2024 |
|
January 31, 2024 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash |
$ |
31,219 |
|
|
$ |
38,066 |
Receivables, net of allowance for expected credit losses |
|
131,776 |
|
|
|
153,657 |
Inventories, net |
|
1,527,758 |
|
|
|
1,303,030 |
Prepaid expenses and other |
|
18,347 |
|
|
|
24,262 |
Total current assets |
|
1,709,100 |
|
|
|
1,519,015 |
Noncurrent Assets |
|
|
|
Property and equipment, net of accumulated depreciation |
|
357,346 |
|
|
|
298,774 |
Operating lease assets |
|
37,643 |
|
|
|
54,699 |
Deferred income taxes |
|
512 |
|
|
|
529 |
Goodwill |
|
62,929 |
|
|
|
64,105 |
Intangible assets, net of accumulated amortization |
|
51,367 |
|
|
|
53,356 |
Other |
|
1,652 |
|
|
|
1,783 |
Total noncurrent assets |
|
511,449 |
|
|
|
473,246 |
Total Assets |
$ |
2,220,549 |
|
|
$ |
1,992,261 |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current Liabilities |
|
|
|
Accounts payable |
$ |
40,434 |
|
|
$ |
43,846 |
Floorplan payable |
|
1,168,440 |
|
|
|
893,846 |
Current maturities of long-term debt |
|
9,940 |
|
|
|
13,706 |
Current operating lease liabilities |
|
7,912 |
|
|
|
10,751 |
Deferred revenue |
|
57,802 |
|
|
|
115,852 |
Accrued expenses and other |
|
58,892 |
|
|
|
74,400 |
Total current liabilities |
|
1,343,420 |
|
|
|
1,152,401 |
Long-Term Liabilities |
|
|
|
Long-term debt, less current maturities |
|
116,666 |
|
|
|
106,407 |
Operating lease liabilities |
|
35,415 |
|
|
|
50,964 |
Deferred income taxes |
|
21,662 |
|
|
|
22,607 |
Other long-term liabilities |
|
43,820 |
|
|
|
2,240 |
Total long-term liabilities |
|
217,563 |
|
|
|
182,218 |
Stockholders' Equity |
|
|
|
Common stock |
|
— |
|
|
|
— |
Additional paid-in-capital |
|
259,911 |
|
|
|
258,657 |
Retained earnings |
|
402,362 |
|
|
|
397,225 |
Accumulated other comprehensive income (loss) |
|
(2,707 |
) |
|
|
1,760 |
Total stockholders' equity |
|
659,566 |
|
|
|
657,642 |
Total Liabilities and Stockholders' Equity |
$ |
2,220,549 |
|
|
$ |
1,992,261 |
TITAN MACHINERY INC. |
Consolidated Condensed Statements of
Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
|
|
|
|
|
|
|
Equipment |
$ |
465,233 |
|
|
$ |
480,122 |
|
|
$ |
933,322 |
|
|
$ |
909,498 |
|
Parts |
|
109,805 |
|
|
|
108,510 |
|
|
|
218,032 |
|
|
|
205,116 |
|
Service |
|
47,268 |
|
|
|
42,478 |
|
|
|
92,346 |
|
|
|
77,411 |
|
Rental and other |
|
11,368 |
|
|
|
11,458 |
|
|
|
18,676 |
|
|
|
20,174 |
|
Total Revenue |
|
633,674 |
|
|
|
642,568 |
|
|
|
1,262,376 |
|
|
|
1,212,199 |
|
Cost of Revenue |
|
|
|
|
|
|
|
Equipment |
|
422,236 |
|
|
|
414,800 |
|
|
|
834,476 |
|
|
|
783,062 |
|
Parts |
|
74,239 |
|
|
|
73,086 |
|
|
|
147,390 |
|
|
|
138,190 |
|
Service |
|
16,144 |
|
|
|
14,208 |
|
|
|
32,920 |
|
|
|
26,617 |
|
Rental and other |
|
8,676 |
|
|
|
7,075 |
|
|
|
13,458 |
|
|
|
12,351 |
|
Total Cost of Revenue |
|
521,295 |
|
|
|
509,169 |
|
|
|
1,028,244 |
|
|
|
960,220 |
|
Gross Profit |
|
112,379 |
|
|
|
133,399 |
|
|
|
234,132 |
|
|
|
251,979 |
|
Operating Expenses |
|
95,156 |
|
|
|
88,751 |
|
|
|
194,314 |
|
|
|
170,066 |
|
Impairment of Goodwill |
|
531 |
|
|
|
— |
|
|
|
531 |
|
|
|
— |
|
Impairment of Intangible and Long-Lived Assets |
|
942 |
|
|
|
— |
|
|
|
942 |
|
|
|
— |
|
Income from Operations |
|
15,750 |
|
|
|
44,648 |
|
|
|
38,345 |
|
|
|
81,913 |
|
Other (Expense) Income |
|
|
|
|
|
|
|
Interest and other (expense) income |
|
(7,048 |
) |
|
|
641 |
|
|
|
(7,335 |
) |
|
|
1,362 |
|
Floorplan interest expense |
|
(9,218 |
) |
|
|
(2,457 |
) |
|
|
(16,282 |
) |
|
|
(3,729 |
) |
Other interest expense |
|
(3,734 |
) |
|
|
(1,241 |
) |
|
|
(6,193 |
) |
|
|
(2,514 |
) |
(Loss) Income Before Income Taxes |
|
(4,250 |
) |
|
|
41,591 |
|
|
|
8,535 |
|
|
|
77,032 |
|
Provision for Income Taxes |
|
54 |
|
|
|
10,270 |
|
|
|
3,399 |
|
|
|
18,745 |
|
Net (Loss) Income |
$ |
(4,304 |
) |
|
$ |
31,321 |
|
|
$ |
5,136 |
|
|
$ |
58,287 |
|
|
|
|
|
|
|
|
|
Diluted (Loss) Earnings per Share |
$ |
(0.19 |
) |
|
$ |
1.38 |
|
|
$ |
0.22 |
|
|
$ |
2.56 |
|
Diluted Weighted Average Common Shares |
|
22,617 |
|
|
|
22,484 |
|
|
|
22,583 |
|
|
|
22,480 |
|
TITAN MACHINERY INC. |
Consolidated Condensed Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
Six Months Ended July 31, |
|
2024 |
|
2023 |
Operating Activities |
|
|
|
Net income |
$ |
5,136 |
|
|
$ |
58,287 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation and amortization |
|
18,413 |
|
|
|
14,637 |
|
Impairment |
|
1,473 |
|
|
|
— |
|
Sale-leaseback financing expense |
|
11,159 |
|
|
|
— |
|
Other, net |
|
5,676 |
|
|
|
2,327 |
|
Changes in assets and liabilities, net of effects of
acquisitions |
|
|
|
Inventories |
|
(242,113 |
) |
|
|
(263,121 |
) |
Manufacturer floorplan payable |
|
206,103 |
|
|
|
150,906 |
|
Receivables |
|
18,499 |
|
|
|
(20,623 |
) |
Other working capital |
|
(71,713 |
) |
|
|
(65,108 |
) |
Net Cash Used for Operating Activities |
|
(47,367 |
) |
|
|
(122,695 |
) |
Investing Activities |
|
|
|
Property and equipment purchases |
|
(22,535 |
) |
|
|
(28,037 |
) |
Proceeds from sale of property and equipment |
|
1,198 |
|
|
|
6,029 |
|
Acquisition consideration, net of cash acquired |
|
(260 |
) |
|
|
(27,935 |
) |
Other, net |
|
130 |
|
|
|
(795 |
) |
Net Cash Used for Investing Activities |
|
(21,467 |
) |
|
|
(50,738 |
) |
Financing Activities |
|
|
|
Net change in non-manufacturer floorplan payable |
|
78,965 |
|
|
|
185,026 |
|
Net proceeds/(payments) from long-term debt and finance leases |
|
(11,853 |
) |
|
|
(2,198 |
) |
Other, net |
|
(4,701 |
) |
|
|
(1,018 |
) |
Net Cash Provided by Financing Activities |
|
62,411 |
|
|
|
181,810 |
|
Effect of Exchange Rate Changes on Cash |
|
(424 |
) |
|
|
466 |
|
Net Change in Cash |
|
(6,847 |
) |
|
|
8,843 |
|
Cash at Beginning of Period |
|
38,066 |
|
|
|
43,913 |
|
Cash at End of Period |
$ |
31,219 |
|
|
$ |
52,756 |
|
TITAN MACHINERY INC. |
Segment Results |
(in thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
$ |
424,036 |
|
|
$ |
469,069 |
|
|
(9.6 |
)% |
|
$ |
871,721 |
|
|
$ |
892,266 |
|
|
(2.3 |
)% |
Construction |
|
80,191 |
|
|
|
82,863 |
|
|
(3.2 |
)% |
|
|
151,683 |
|
|
|
154,860 |
|
|
(2.1 |
)% |
Europe |
|
68,149 |
|
|
|
90,636 |
|
|
(24.8 |
)% |
|
|
133,254 |
|
|
|
165,073 |
|
|
(19.3 |
)% |
Australia |
$ |
61,298 |
|
|
$ |
— |
|
|
n/m |
|
$ |
105,718 |
|
|
$ |
— |
|
|
n/m |
Total |
$ |
633,674 |
|
|
$ |
642,568 |
|
|
(1.4 |
)% |
|
$ |
1,262,376 |
|
|
$ |
1,212,199 |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
Agriculture(1) |
$ |
635 |
|
|
$ |
33,029 |
|
|
(98.1 |
)% |
|
$ |
13,680 |
|
|
$ |
57,181 |
|
|
(76.1 |
)% |
Construction(2) |
|
(4,893 |
) |
|
|
5,156 |
|
|
n/m |
|
|
(4,625 |
) |
|
|
9,689 |
|
|
(147.7 |
)% |
Europe |
|
(2,270 |
) |
|
|
5,568 |
|
|
(140.8 |
)% |
|
|
(919 |
) |
|
|
11,952 |
|
|
(107.7 |
)% |
Australia |
|
1,362 |
|
|
|
— |
|
|
n/m |
|
|
876 |
|
|
|
— |
|
|
n/m |
Segment Income (Loss) Before Income Taxes |
|
(5,166 |
) |
|
|
43,753 |
|
|
(111.8 |
)% |
|
|
9,012 |
|
|
|
78,822 |
|
|
(88.6 |
)% |
Shared Resources |
|
916 |
|
|
|
(2,162 |
) |
|
142.4 |
% |
|
|
(477 |
) |
|
|
(1,790 |
) |
|
73.4 |
% |
Total |
$ |
(4,250 |
) |
|
$ |
41,591 |
|
|
(110.2 |
)% |
|
$ |
8,535 |
|
|
$ |
77,032 |
|
|
(88.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
(1)Included in the results for the three and six months ended July
31, 2024, was a $6.1 million one-time, non-cash sale-leaseback
financing expense. |
(2)Included in the results for the three and six months ended July
31, 2024, was a $5.1 million one-time, non-cash sale-leaseback
financing expense. |
*N/M = Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
TITAN MACHINERY INC. |
Non-GAAP Reconciliations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended July 31, |
|
Six Months Ended July 31, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(4,304 |
) |
|
$ |
31,321 |
|
$ |
5,136 |
|
|
$ |
58,287 |
Adjustments |
|
|
|
|
|
|
|
|
Impact of sale-leaseback financing expense(1) |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Total Pre-Tax Adjustments |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Less: Tax Effect of Adjustments(2) |
|
|
(2,845 |
) |
|
|
— |
|
|
(2,845 |
) |
|
|
— |
Total Adjustments |
|
|
8,314 |
|
|
|
— |
|
|
8,314 |
|
|
|
— |
Adjusted Net Income |
|
$ |
4,010 |
|
|
$ |
31,321 |
|
$ |
13,450 |
|
|
$ |
58,287 |
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings (Loss) Per Share |
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) Per Share |
|
$ |
(0.19 |
) |
|
$ |
1.38 |
|
$ |
0.22 |
|
|
$ |
2.56 |
Adjustments |
|
|
|
|
|
|
|
|
Impact of sale-leaseback financing expense(1) |
|
|
0.48 |
|
|
|
— |
|
|
0.49 |
|
|
|
— |
Total Pre-Tax Adjustments |
|
|
0.48 |
|
|
|
— |
|
|
0.49 |
|
|
|
— |
Less: Tax Effect of Adjustments(2) |
|
|
(0.12 |
) |
|
|
— |
|
|
(0.12 |
) |
|
|
— |
Total Adjustments |
|
|
0.36 |
|
|
|
— |
|
|
0.37 |
|
|
|
— |
Adjusted Diluted Earnings Per Share |
|
$ |
0.17 |
|
|
$ |
1.38 |
|
$ |
0.59 |
|
|
$ |
2.56 |
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss) Before Income Taxes |
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes |
|
$ |
(4,250 |
) |
|
$ |
41,591 |
|
$ |
8,535 |
|
|
$ |
77,032 |
Adjustments |
|
|
|
|
|
|
|
|
Impact of sale-leaseback financing expense(1) |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Total Adjustments |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Adjusted Income Before Income Taxes |
|
$ |
6,909 |
|
|
$ |
41,591 |
|
$ |
19,694 |
|
|
$ |
77,032 |
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(4,304 |
) |
|
$ |
31,321 |
|
$ |
5,136 |
|
|
$ |
58,287 |
Adjustments |
|
|
|
|
|
|
|
|
Interest expense, net of interest income(3) |
|
|
3,629 |
|
|
|
1,110 |
|
|
5,980 |
|
|
|
2,275 |
Provision for income taxes |
|
|
54 |
|
|
|
10,270 |
|
|
3,399 |
|
|
|
18,745 |
Depreciation and amortization |
|
|
9,698 |
|
|
|
7,689 |
|
|
18,413 |
|
|
|
14,637 |
EBITDA |
|
$ |
9,077 |
|
|
$ |
50,390 |
|
$ |
32,928 |
|
|
$ |
93,944 |
Adjustments |
|
|
|
|
|
|
|
|
Impact of sale-leaseback financing expense(1) |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Total Adjustments |
|
|
11,159 |
|
|
|
— |
|
|
11,159 |
|
|
|
— |
Adjusted EBITDA |
|
$ |
20,236 |
|
|
$ |
50,390 |
|
$ |
44,087 |
|
|
$ |
93,944 |
(1) Accounting impact of a one-time, non-cash, sale-leaseback
financing expense related to the Company's umbrella purchase for 13
of its leased facilities. |
(2) The tax effect of U.S. related adjustments was calculated
using a 25.5% tax rate, determined based on a 21% federal statutory
rate and a 4.5% blended state income tax rate. |
(3) Net of interest, excluding floorplan interest expense
which was $9,218 and $2,457 for the three month ended July 31, 2024
and 2023 respectively, and $16,282 and $3,729 for the six months
ended July 31, 2024 and 2023 respectively. |
Titan Machinery (NASDAQ:TITN)
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