Titan Machinery Inc. Announces Results for Fiscal Fourth Quarter and Full Year Ended January 31, 2015 |
- Revenue for Fiscal 2015 was $1.90 billion - - Reduced Equipment Inventory by $168 million and Generated $82
million Adjusted Cash Flow from Operations - - Company Implements Realignment Plan; Projects $20 million in Cost
Reductions in Fiscal 2016 -
Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service
agricultural and construction equipment stores, today reported final
financial results for the fiscal fourth quarter and full year ended
January 31, 2015.
Fiscal 2015 Fourth Quarter Results
For the fourth quarter of fiscal 2015, revenue was $490.7 million,
compared to $708.6 million in the fourth quarter last year. Equipment
sales were $389.6 million for the fourth quarter of fiscal 2015,
compared to $587.9 million in the fourth quarter last year. Parts sales
were $50.7 million for the fourth quarter of fiscal 2015, compared to
$61.4 million in the fourth quarter last year. Revenue generated from
service was $29.4 million for the fourth quarter of fiscal 2015,
compared to $36.6 million in the fourth quarter last year. Revenue from
rental and other was $21.0 million for the fourth quarter of fiscal
2015, compared to $22.8 million in the fourth quarter last year.
Gross profit for the fourth quarter of fiscal 2015 was $68.1 million,
compared to $97.0 million in the fourth quarter last year, primarily
reflecting a decrease in Agriculture equipment revenue. The Company's
gross profit margin was 13.9% in the fourth quarter of fiscal 2015,
compared to 13.7% in the fourth quarter last year. Gross profit from
parts and service for the fourth quarter of fiscal 2015 was 49.5% of
overall gross profit, compared to 40.7% in the fourth quarter last year.
Operating expenses were 13.2% of revenue or $64.9 million for the fourth
quarter of fiscal 2015, compared to 10.9% of revenue or $77.1 million
for the fourth quarter of last year. The decrease in operating expenses
was primarily due to decreased commission expense resulting from lower
equipment gross profit, and cost savings associated with the Company's
realignment activities implemented in the first quarter of fiscal 2015,
which included the closing of eight stores and other headcount
reductions. The increase in operating expenses as a percentage of
revenue was primarily due to the deleveraging of fixed expenses as total
revenue decreased from the prior year.
In the fourth quarter of fiscal 2015, the Company recognized a $31.0
million non-cash charge, primarily related to impairment of goodwill and
other intangible assets within the Agriculture segment. In the fourth
quarter of fiscal 2014, the Company recognized a non-cash charge of
$10.0 million, primarily related to impairment of goodwill and other
intangible assets within the Construction and International segments.
Floorplan interest expense increased to $5.1 million for the fourth
quarter of fiscal 2015, compared to $4.8 million for the same period
last year, primarily due to increased interest rates.
The Company generated $6.4 million in adjusted EBITDA for the fourth
quarter of fiscal 2015, compared to $23.9 million for the same period of
the prior year.
Pre-tax loss was $37.2 million for the fourth quarter of fiscal 2015,
compared to pre-tax income of $2.8 million in the fourth quarter last
year. Excluding the aforementioned non-cash charge, realignment costs of
$0.5 million, and Ukraine currency devaluation of $0.8 million, adjusted
pre-tax loss for the fourth quarter of fiscal 2015 was $5.0 million. For
the fourth quarter of fiscal 2014, excluding the aforementioned non-cash
charge, adjusted pre-tax income was $12.8 million. Adjusted pre-tax
Agriculture segment income was $2.8 million for the fourth quarter of
fiscal 2015, compared to pre-tax income of $25.1 million in the fourth
quarter last year. Adjusted pre-tax Construction segment loss was $4.7
million for the fourth quarter of fiscal 2015, compared to adjusted
pre-tax loss of $8.2 million in the fourth quarter last year. Adjusted
pre-tax International segment loss was $3.5 million for the fourth
quarter of fiscal 2015, compared to adjusted pre-tax loss of $2.3
million in the fourth quarter last year.
Net loss attributable to common stockholders for the fourth quarter of
fiscal 2015 was $27.0 million, or $1.28 per diluted share, compared to
$0.4 million, or $0.02 per diluted share, for the fourth quarter of
fiscal 2014. The net loss for the fourth quarter of fiscal 2015 includes
adjustments totaling $22.8 million, or $1.08 per diluted share, compared
to adjustments totaling $7.8 million, or $0.37 per diluted share, for
the fourth quarter of fiscal 2014. Excluding non-GAAP items, adjusted
net loss attributable to common stockholders for the fourth quarter of
fiscal 2015 was $4.1 million, or $0.20 per diluted share, compared to
adjusted net income attributable to common stockholders for the fourth
quarter of fiscal 2014 of $7.4 million, or $0.35 per diluted share.
Fiscal 2015 Full Year Results
Revenue was $1.90 billion for fiscal 2015, compared to $2.23 billion for
the prior year. Gross profit margin was 16.2% for fiscal 2015, compared
to 15.6% for the prior year. The Company generated $47.6 million in
adjusted EBITDA in fiscal 2015, compared to $72.0 million in fiscal
2014. Pre-tax loss was $38.3 million for fiscal 2015, compared to
pre-tax income of $18.4 million for the prior year. Excluding certain
non-GAAP adjustments, adjusted pre-tax income was $2.3 million for
fiscal 2015, compared to $28.4 million for the prior year. Net loss
attributable to common stockholders for fiscal 2015 was $31.6 million,
or $1.51 per diluted share, compared to net income attributable to
common stockholders of $8.7 million, or $0.41 per diluted share, for the
prior year. Excluding non-GAAP items, adjusted net loss attributable to
common stockholders for fiscal 2015 was $1.9 million, or $0.09 per
diluted share, compared to adjusted net income attributable to common
stockholders of $16.5 million, or $0.78 per diluted share, for the prior
year.
Balance Sheet and Cash Flow
The Company ended fiscal 2015 with cash of $127.5 million, which is an
increase of $53.3 million over the cash balance of $74.2 million at the
end of fiscal 2014. The Company's inventory level decreased to $879.4
million as of January 31, 2015, compared to inventory of $1.08 billion
as of January 31, 2014, primarily reflecting a reduction in equipment
inventory of $167.7 million (including equipment inventory classified as
held for sale). The Company had $627.2 million outstanding floorplan
payables on $1.2 billion total discretionary floorplan lines of credit
as of January 31, 2015, reflecting a decrease of $121.5 million
(including floorplan payables classified as held for sale) from the
balance of $750.5 million as of January 31, 2014. The Company amended
its bank syndicate credit facility in April 2015, and as a result of
such amendment, was in compliance with all financial covenants of its
credit facilities effective for the period ended January 31, 2015. The
Company's total discretionary floorplan lines of credit were reduced to
$1.1 billion in April 2015, reflecting lower current and expected
equipment inventory levels. The reduced floorplan levels combined with
lower long-term debt at the end of fiscal 2015 has improved the
Company's total liabilities to tangible net worth to 2.6 as of January
31, 2015 from 3.1 as of the end of the prior year.
In fiscal 2015, the Company's net cash provided by operating activities
was $41.1 million on a GAAP basis. The Company evaluates its cash flow
from operating activities net of all floorplan payable activity. Taking
this adjustment into account, the Company generated adjusted net cash
provided by operating activities of $82.2 million in fiscal 2015, which
represents an improvement of $133.0 million compared to adjusted net
cash used for operating activities of $50.8 million in fiscal 2014.
First Quarter Fiscal 2016 Realignment
As previously announced, to better align its business in certain
markets, the Company has reduced its headcount by approximately 14%,
which includes headcount reductions at stores in each of its operating
segments and its Shared Resource Center. This includes the closing of
three Agriculture stores and one Construction store. In addition, the
Company is reducing discretionary spending levels across all parts of
the business and is restructuring certain employee compensation and
benefit programs to better align pay for performance. The realignment
costs associated with the headcount reductions and store closings are
estimated to total approximately $2.0 million, of which $0.1 million was
recognized in the fourth quarter of fiscal 2015 and $1.9 million (or
$0.05 per diluted share) is expected to be recognized in the first
quarter of fiscal 2016. The full-year pro forma benefit to pre-tax
earnings of this headcount reduction is estimated to be approximately
$21 million (or $0.59 per share), which equates to a pro forma benefit
of approximately $20 million (or $0.56 per share) for fiscal 2016.
Management Comments
David Meyer, Titan Machinery's Chairman and Chief Executive Officer,
stated, "As we stated in our preannouncement, our financial performance
for the fourth quarter and full year fiscal 2015 was impacted by ongoing
headwinds in the agriculture industry. Throughout the year we focused on
managing the controllable aspects of our business and reduced equipment
inventory by $168 million, which enabled us to significantly improve our
adjusted cash flow from operations."
Mr. Meyer continued, "As we begin fiscal 2016, we are confident we are
taking the right steps to manage through the current climate and to
improve the position of our business. We remain committed to further
inventory level reductions throughout fiscal 2016, and we have
implemented a realignment plan that meaningfully reduces our operating
costs and better aligns our cost structure with our markets. We believe
that this, combined with recently implemented initiatives for our
International segment, position our business for improved operational
and long-term financial performance."
Fiscal 2016 Modeling Assumptions
The Company is providing the following modeling assumptions for fiscal
2016 that it believes will provide investors with relevant information
about expectations regarding financial results and business trends:
-
Agriculture Same Store Sales Down 20% to 25%
-
Construction Same Store Sales Flat
-
International Same Store Sales Flat
-
Equipment Margins Between 7.7% and 8.3%
-
Expects to be profitable on an adjusted diluted earnings per share
basis
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). 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.
Investors interested in participating in the live call can dial (888)
504-7963 from the U.S. International callers can dial (719) 325-2315. A
telephone replay will be available approximately two hours after the
call concludes and will be available through Wednesday, April 29, 2015,
by dialing (877) 870-5176 from the U.S., or (858) 384-5517 from
international locations, and entering confirmation code 7972387.
Non-GAAP Financial Measures
Within this announcement, the Company makes reference to certain
adjusted financial measures, which have directly comparable GAAP
financial measures as identified in this release. These adjusted
measures are provided so that investors have the same financial data
that management uses with the belief that it will assist the investment
community in properly assessing the underlying performance of the
Company for the periods being reported. This includes adjusted EBITDA,
which the Company defines as net income (loss) including noncontrolling
interest, adjusted for net interest (excluding floorplan interest
expense), income taxes, depreciation, amortization, and items included
in its non-GAAP pre-tax income (loss) reconciliation for each of the
respective periods. The presentation of this additional information is
not meant to be considered a substitute for measures prepared in
accordance with GAAP. Investors are encouraged to review the
reconciliations of adjusted financial measures used in this press
release to their most directly comparable GAAP financial measures as
provided with the financial statements attached to this press release.
About Titan Machinery Inc.
Titan Machinery Inc., founded in 1980 and headquartered in West Fargo,
North Dakota, is a multi-unit business with mature locations and
newly-acquired locations. The Company owns and operates a network of
full service agricultural and construction equipment stores in the
United States and Europe. The Titan Machinery network consists of 92
North American dealerships in North Dakota, South Dakota, Iowa,
Minnesota, Montana, Nebraska, Wyoming, Wisconsin, Colorado, Arizona, and
New Mexico, including 2 outlet stores, and 16 European dealerships in
Romania, Bulgaria, Serbia, and Ukraine. The Titan Machinery dealerships
represent one or more of the CNH Industrial Brands (CNHI), including
CaseIH, New Holland Agriculture, Case Construction, New Holland
Construction, and CNH 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.
Forward-looking statements made herein, which include statements
regarding estimated savings associated with headcount reduction and
cost-cutting initiatives, expected reduction in inventory levels, growth
and profitability expectations, leverage expectations, and certain
modeling assumptions for the fiscal year ending January 31, 2016,
involve known and unknown risks and uncertainties that may cause Titan
Machinery's actual results in current or future periods to differ
materially from forecasted results. The Company's risks and
uncertainties include, among other things, a substantial dependence on a
single supplier, 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 each of the Company's operating segments, the
uncertainty and fluctuating conditions in the capital and credit
markets, difficulties in conducting international operations, foreign
currency risks and political instability risks associated with our
Ukraine operations, 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. Titan Machinery conducts its
business in a highly competitive and rapidly changing environment.
Accordingly, new risk factors may arise. It is not possible for
management to predict all such risk factors, nor to assess the impact of
all such risk factors on Titan Machinery's business or the extent to
which any individual risk factor, or combination of factors, may cause
results to differ materially from those contained in any forward-looking
statement. Titan Machinery disclaims any obligation to update such
factors or to publicly announce results of revisions to any of the
forward-looking statements contained herein to reflect future events or
developments.
| TITAN MACHINERY INC. | Consolidated Balance Sheets | (in thousands, except per share data) | (Unaudited) | |
|
|
| |
|
|
|
|
| | | | | |
January 31, 2015
| | | | | |
January 31, 2014
| Assets | | | | | | | | | | |
Current Assets
| | | | | | | | | | |
Cash
| | | |
$
|
127,528
| | | | | | |
$
|
74,242
|
Receivables, net
| | | |
76,382
| | | | | | |
97,894
|
Inventories
| | | |
879,440
| | | | | | |
1,075,978
|
Prepaid expenses and other
| | | |
10,634
| | | | | | |
24,740
|
Income taxes receivable
| | | |
166
| | | | | | |
851
|
Deferred income taxes
| | | |
19,025
| | | | | | |
13,678
|
Assets held for sale
| | | |
15,312
|
| | | | | |
-
|
Total current assets
| | | |
1,128,487
|
| | | | | |
1,287,383
|
Intangibles and Other Assets
| | | | | | | | | | |
Noncurrent parts inventories
| | | |
-
| | | | | | |
5,098
|
Goodwill
| | | |
-
| | | | | | |
24,751
|
Intangible assets, net of accumulated amortization
| | | |
5,458
| | | | | | |
11,750
|
Other
| | | |
7,122
|
| | | | | |
7,666
|
Total intangibles and other assets
| | | |
12,580
|
| | | | | |
49,265
|
Property and Equipment, net of accumulated depreciation
| | | |
208,680
|
| | | | | |
228,000
| Total Assets | | | |
$
|
1,349,747
|
| | | | | |
$
|
1,564,648
| | | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | | | |
Current Liabilities
| | | | | | | | | | |
Accounts payable
| | | |
$
|
17,659
| | | | | | |
$
|
23,714
|
Floorplan payable
| | | |
627,249
| | | | | | |
750,533
|
Current maturities of long-term debt
| | | |
7,749
| | | | | | |
2,192
|
Customer deposits
| | | |
35,090
| | | | | | |
61,286
|
Accrued expenses
| | | |
35,496
| | | | | | |
36,968
|
Income taxes payable
| | | |
3,529
| | | | | | |
344
|
Liabilities held for sale
| | | |
2,835
|
| | | | | |
-
|
Total current liabilities
| | | |
729,607
|
| | | | | |
875,037
|
Long-Term Liabilities
| | | | | | | | | | |
Senior convertible notes
| | | |
132,350
| | | | | | |
128,893
|
Long-term debt, less current maturities
| | | |
67,123
| | | | | | |
95,532
|
Deferred income taxes
| | | |
38,996
| | | | | | |
47,329
|
Other long-term liabilities
| | | |
3,312
|
| | | | | |
6,515
|
Total long-term liabilities
| | | |
241,781
|
| | | | | |
278,269
|
Stockholders' Equity
| | | | | | | | | | |
Common stock, par value $.00001 per share, 45,000 shares authorized;
21,406 shares issued and outstanding at January 31, 2015; 21,261
shares issued and outstanding at January 31, 2014
| | | |
-
| | | | | | |
-
|
Additional paid-in-capital
| | | |
240,180
| | | | | | |
238,857
|
Retained earnings
| | | |
137,418
| | | | | | |
169,575
|
Accumulated other comprehensive income (loss)
| | | |
(1,099
|
)
| | | | | |
339
|
Total Titan Machinery Inc. stockholders' equity
| | | |
376,499
| | | | | | |
408,771
|
Noncontrolling interest
| | | |
1,860
|
| | | | | |
2,571
|
Total stockholders' equity
| | | |
378,359
|
| | | | | |
411,342
| Total Liabilities and Stockholders' Equity | | | |
$
|
1,349,747
|
| | | | | |
$
|
1,564,648
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
| TITAN MACHINERY INC. | Consolidated Statements of Operations | (in thousands, except per share data) | (Unaudited) | |
|
|
| |
|
|
| |
|
|
| |
|
|
| | | | | |
Three Months Ended January 31,
| | | |
Twelve Months Ended January 31,
| | | | |
2015
| | | |
2014
| | | |
2015
| | | |
2014
|
Revenue
| | | | | | | | | | | | | | | | |
Equipment
| | | |
$
|
389,581
| | | | |
$
|
587,853
| | | | |
$
|
1,398,195
| | | | |
$
|
1,722,738
| |
Parts
| | | |
50,665
| | | | |
61,377
| | | | |
270,262
| | | | |
275,750
| |
Service
| | | |
29,415
| | | | |
36,566
| | | | |
147,356
| | | | |
149,082
| |
Rental and other
| | | |
20,991
|
| | | |
22,835
|
| | | |
84,433
|
| | | |
78,876
|
|
Total Revenue
| | | |
490,652
|
| | | |
708,631
|
| | | |
1,900,246
|
| | | |
2,226,446
|
|
Cost of Revenue
| | | | | | | | | | | | | | | | |
Equipment
| | | |
359,285
| | | | |
536,473
| | | | |
1,286,148
| | | | |
1,576,246
| |
Parts
| | | |
35,394
| | | | |
44,047
| | | | |
189,540
| | | | |
192,199
| |
Service
| | | |
10,955
| | | | |
14,409
| | | | |
53,924
| | | | |
54,608
| |
Rental and other
| | | |
16,917
|
| | | |
16,724
|
| | | |
62,250
|
| | | |
55,319
|
|
Total Cost of Revenue
| | | |
422,551
|
| | | |
611,653
|
| | | |
1,591,862
|
| | | |
1,878,372
|
|
Gross Profit
| | | |
68,101
| | | | |
96,978
| | | | |
308,384
| | | | |
348,074
| |
Operating Expenses
| | | |
64,865
| | | | |
77,119
| | | | |
273,271
| | | | |
291,202
| |
Impairment and Realignment Costs
| | | |
31,438
|
| | | |
9,997
|
| | | |
34,390
|
| | | |
9,997
|
|
Income from Operations
| | | |
(28,202
|
)
| | | |
9,862
| | | | |
723
| | | | |
46,875
| |
Other Income (Expense)
| | | | | | | | | | | | | | | | |
Interest income and other income (expense)
| | | |
(177
|
)
| | | |
1,435
| | | | |
(4,272
|
)
| | | |
2,109
| |
Floorplan interest expense
| | | |
(5,132
|
)
| | | |
(4,820
|
)
| | | |
(20,477
|
)
| | | |
(16,764
|
)
|
Other interest expense
| | | |
(3,728
|
)
| | | |
(3,676
|
)
| | | |
(14,314
|
)
| | | |
(13,791
|
)
|
Income (Loss) Before Income Taxes
| | | |
(37,239
|
)
| | | |
2,801
| | | | |
(38,340
|
)
| | | |
18,429
| |
Provision for (Benefit from) Income Taxes
| | | |
(9,177
|
)
| | | |
3,819
|
| | | |
(4,923
|
)
| | | |
10,325
|
|
Net Income (Loss) Including Noncontrolling Interest
| | | |
(28,062
|
)
| | | |
(1,018
|
)
| | | |
(33,417
|
)
| | | |
8,104
| |
Less: Net Income (Loss) Attributable to Noncontrolling Interest
| | | |
(598
|
)
| | | |
(625
|
)
| | | |
(1,260
|
)
| | | |
(747
|
)
|
Net Income (Loss) Attributable to Titan Machinery Inc.
| | | |
(27,464
|
)
| | | |
(393
|
)
| | | |
(32,157
|
)
| | | |
8,851
| |
Net (Income) Loss Allocated to Participating Securities
| | | |
493
|
| | | |
6
|
| | | |
559
|
| | | |
(129
|
)
|
Net Income (Loss) Attributable to Titan Machinery Inc. Common
Stockholders
| | | |
$
|
(26,971
|
)
| | | |
$
|
(387
|
)
| | | |
$
|
(31,598
|
)
| | | |
$
|
8,722
|
| | | | | | | | | | | | | | | | |
|
Earnings (Loss) per Share - Diluted
| | | |
$
|
(1.28
|
)
| | | |
$
|
(0.02
|
)
| | | |
$
|
(1.51
|
)
| | | |
$
|
0.41
|
|
Weighted Average Common Shares - Diluted
| | | |
21,024
|
| | | |
21,069
|
| | | |
20,989
|
| | | |
21,040
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
|
| TITAN MACHINERY INC. | Consolidated Condensed Statements of Cash Flows | (in thousands) | (Unaudited) | |
|
|
| |
|
|
|
|
| | | | | |
Year Ended January 31,
| | | | |
2015
| | | | | |
2014
|
Operating Activities
| | | | | | | | | | |
Net income (loss) including noncontrolling interest
| | | |
$
|
(33,417
|
)
| | | | | |
$
|
8,104
| |
Adjustments to reconcile net income including noncontrolling
interest to net cash used for operating activities
| | | | | | | | | | |
Depreciation and amortization
| | | |
31,768
| | | | | | |
30,794
| |
Impairment
| | | |
31,225
| | | | | | |
9,997
| |
Deferred income taxes
| | | |
(14,837
|
)
| | | | | |
(4,939
|
)
|
Other, net
| | | |
12,736
| | | | | | |
5,619
| |
Changes in assets and liabilities, net of purchase of equipment
dealerships assets and assumption of liabilities
| | | |
-
| | | | | | | |
Inventories
| | | |
171,595
| | | | | | |
(182,374
|
)
|
Manufacturer floorplan payable
| | | |
(157,352
|
)
| | | | | |
27,630
| |
Other working capital
| | | |
(660
|
)
| | | | | |
22,926
|
|
Net Cash Provided by (Used for) Operating Activities
| | | |
41,058
|
| | | | | |
(82,243
|
)
|
Investing Activities
| | | | | | | | | | |
Property and equipment purchases
| | | |
(17,012
|
)
| | | | | |
(19,010
|
)
|
Proceeds from sale of property and equipment
| | | |
16,803
| | | | | | |
16,712
| |
Purchase of equipment dealerships, net of cash purchased
| | | |
(584
|
)
| | | | | |
(4,848
|
)
|
Other, net
| | | |
5,196
|
| | | | | |
69
|
|
Net Cash Provided by (Used for) Investing Activities
| | | |
4,403
|
| | | | | |
(7,077
|
)
|
Financing Activities
| | | | | | | | | | |
Net change in non-manufacturer floorplan payable
| | | |
41,114
| | | | | | |
31,395
| |
Net proceeds from (payments on) long-term debt borrowings
| | | |
(27,728
|
)
| | | | | |
9,958
| |
Other, net
| | | |
(4,382
|
)
| | | | | |
(1,550
|
)
|
Net Cash Provided by Financing Activities
| | | |
9,004
|
| | | | | |
39,803
|
|
Effect of Exchange Rate Changes on Cash
| | | |
(1,179
|
)
| | | | | |
(601
|
)
|
Net Change in Cash
| | | |
53,286
| | | | | | |
(50,118
|
)
|
Cash at Beginning of Period
| | | |
74,242
|
| | | | | |
124,360
|
|
Cash at End of Period
| | | |
$
|
127,528
|
| | | | | |
$
|
74,242
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
| TITAN MACHINERY INC. | Segment Results | (in thousands) | (Unaudited) | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| | | | | |
Three Months Ended January 31,
| | |
Twelve Months Ended January 31,
| | | | |
2015
| | |
2014
| | |
% Change
| | |
2015
| | |
2014
| | |
% Change
| Revenue | | | | | | | | | | | | | | | | | | | |
Agriculture
| | | |
$
|
359,598
| | | |
$
|
578,928
| | | |
(37.9
|
)%
| | |
$
|
1,372,716
| | | |
$
|
1,765,821
| | | |
(22.3
|
)%
|
Construction
| | | |
109,157
| | | |
115,185
| | | |
(5.2
|
)%
| | |
434,639
| | | |
405,822
| | | |
7.1
|
%
|
International
| | | |
39,130
|
| | |
38,029
|
| | |
2.9
|
%
| | |
166,379
|
| | |
145,884
|
| | |
14.0
|
%
|
Segment revenue
| | | |
507,885
| | | |
732,142
| | | |
(30.6
|
)%
| | |
1,973,734
| | | |
2,317,527
| | | |
(14.8
|
)%
|
Eliminations
| | | |
(17,233
|
)
| | |
(23,511
|
)
| | |
26.7
|
%
| | |
(73,488
|
)
| | |
(91,081
|
)
| | |
19.3
|
%
|
Total
| | | |
$
|
490,652
|
| | |
$
|
708,631
|
| | |
(30.8
|
)%
| | |
$
|
1,900,246
|
| | |
$
|
2,226,446
|
| | |
(14.7
|
)%
| | | | | | | | | | | | | | | | | | | |
| Income (Loss) Before Income Taxes | | | | | | | | | | | | | | | | | | | |
Agriculture
| | | |
$
|
(27,176
|
)
| | |
$
|
25,123
| | | |
(208.2
|
)%
| | |
$
|
(13,429
|
)
| | |
$
|
59,574
| | | |
(122.5
|
)%
|
Construction
| | | |
(5,123
|
)
| | |
(16,441
|
)
| | |
68.8
|
%
| | |
(10,770
|
)
| | |
(28,083
|
)
| | |
61.6
|
%
|
International
| | | |
(5,382
|
)
| | |
(4,103
|
)
| | |
(31.2
|
)%
| | |
(17,248
|
)
| | |
(5,544
|
)
| | |
(211.1
|
)%
|
Segment income (loss) before income taxes
| | | |
(37,681
|
)
| | |
4,579
| | | |
(922.9
|
)%
| | |
(41,447
|
)
| | |
25,947
| | | |
(259.7
|
)%
|
Shared Resources
| | | |
1,344
| | | |
(1,875
|
)
| | |
171.7
|
%
| | |
2,144
| | | |
(6,650
|
)
| | |
132.2
|
%
|
Eliminations
| | | |
(902
|
)
| | |
97
|
| | |
(1,029.9
|
)%
| | |
963
|
| | |
(868
|
)
| | |
210.9
|
%
|
Income (Loss) Before Income Taxes
| | | |
$
|
(37,239
|
)
| | |
$
|
2,801
|
| | |
(1,429.5
|
)%
| | |
$
|
(38,340
|
)
| | |
$
|
18,429
|
| | |
(308.0
|
)%
| | | | | | | | | | | | | | | | | | | |
|
Note: The Company reports its revenues and income (loss) before
income taxes at the segment level before inter-company eliminations.
|
|
|
| TITAN MACHINERY INC. | Non-GAAP Reconciliations | (in thousands, except per share data) | (Unaudited) | |
|
|
| |
|
|
| |
|
|
| |
|
|
| | | | | |
Three Months Ended January 31,
| | | |
Twelve Months Ended January 31,
| | | | |
2015
| | | |
2014
| | | |
2015
| | | |
2014
| Pre-Tax Income (Loss) | | | | | | | | | | | | | | | | |
Income (Loss) Before Income Taxes
| | | |
$
|
(37,239
|
)
| | | |
$
|
2,801
| | | | |
$
|
(38,340
|
)
| | | |
$
|
18,429
| |
Non-GAAP Adjustments
| | | | | | | | | | | | | | | | |
Impairment - Intangibles and Long-Lived Assets
| | | |
30,981
| | | | |
9,997
| | | | |
31,225
| | | | |
9,997
| |
Realignment / Store Closing Costs
| | | |
450
| | | | |
-
| | | | |
3,636
| | | | |
-
| |
Ukraine Remeasurement
| | | |
829
|
| | | |
-
|
| | | |
5,753
|
| | | |
-
|
|
Total Non-GAAP Adjustments
| | | |
32,260
|
| | | |
9,997
|
| | | |
40,614
|
| | | |
9,997
|
|
Adjusted Pre-Tax Income (Loss)
| | | |
$
|
(4,979
|
)
| | | |
$
|
12,798
|
| | | |
$
|
2,274
|
| | | |
$
|
28,426
|
| | | | | | | | | | | | | | | | |
| Adjusted EBITDA | | | | | | | | | | | | | | | | |
Net Income (Loss) Including Noncontrolling Interest
| | | |
$
|
(28,062
|
)
| | | |
$
|
(1,018
|
)
| | | |
$
|
(33,417
|
)
| | | |
$
|
8,104
| |
Adjustments:
| | | | | | | | | | | | | | | | |
Interest Expense, Net of Interest Income
| | | |
3,529
| | | | |
3,482
| | | | |
13,531
| | | | |
12,758
| |
Provision for (Benefit from) Income Taxes
| | | |
(9,177
|
)
| | | |
3,819
| | | | |
(4,923
|
)
| | | |
10,325
| |
Depreciation and amortization
| | | |
7,853
| | | | |
7,646
| | | | |
31,768
| | | | |
30,794
| |
Total Non-GAAP Adjustments to Pre-Tax Income (Loss)
| | | |
32,260
|
| | | |
9,997
|
| | | |
40,614
|
| | | |
9,997
|
|
Total Adjustments
| | | |
34,465
|
| | | |
24,944
|
| | | |
80,990
|
| | | |
63,874
|
|
Adjusted EBITDA
| | | |
$
|
6,403
|
| | | |
$
|
23,926
|
| | | |
$
|
47,573
|
| | | |
$
|
71,978
|
| | | | | | | | | | | | | | | | |
| Net Income (Loss) Attributable to Titan Machinery Inc. Common
Stockholders | | | | | | | | | | | | | | | | |
Net Income (Loss) Attributable to Titan Machinery Inc. Common
Stockholders
| | | |
$
|
(26,971
|
)
| | | |
$
|
(387
|
)
| | | |
$
|
(31,598
|
)
| | | |
$
|
8,722
| |
Non-GAAP Adjustments (1)
| | | | | | | | | | | | | | | | |
Impairment - Intangibles and Long-Lived Assets
| | | |
21,456
| | | | |
6,088
| | | | |
21,614
| | | | |
6,091
| |
Realignment / Store Closing Costs
| | | |
258
| | | | |
-
| | | | |
2,152
| | | | |
-
| |
Ukraine Remeasurement
| | | |
814
| | | | |
-
| | | | |
5,653
| | | | |
-
| |
Income Tax Valuation Adjustments
| | | |
305
|
| | | |
1,700
|
| | | |
306
|
| | | |
1,701
|
|
Total Non-GAAP Adjustments
| | | |
22,833
|
| | | |
7,788
|
| | | |
29,725
|
| | | |
7,792
|
|
Adjusted Net Income (Loss) Attributable to Titan Machinery Inc.
Common Stockholders
| | | |
$
|
(4,138
|
)
| | | |
$
|
7,401
|
| | | |
$
|
(1,873
|
)
| | | |
$
|
16,514
|
| | | | | | | | | | | | | | | | |
| Earnings (Loss) per Share - Diluted | | | | | | | | | | | | | | | | |
Earnings (Loss) per Share - Diluted
| | | |
$
|
(1.28
|
)
| | | |
$
|
(0.02
|
)
| | | |
$
|
(1.51
|
)
| | | |
$
|
0.41
| |
Non-GAAP Adjustments (1)
| | | | | | | | | | | | | | | | |
Impairment - Intangibles and Long-Lived Assets
| | | |
1.02
| | | | |
0.29
| | | | |
1.03
| | | | |
0.29
| |
Realignment / Store Closing Costs
| | | |
0.01
| | | | |
-
| | | | |
0.10
| | | | |
-
| |
Ukraine Remeasurement
| | | |
0.04
| | | | |
-
| | | | |
0.27
| | | | |
-
| |
Income Tax Valuation Adjustments
| | | |
0.01
|
| | | |
0.08
|
| | | |
0.02
|
| | | |
0.08
|
|
Total Non-GAAP Adjustments
| | | |
1.08
|
| | | |
0.37
|
| | | |
1.42
|
| | | |
0.37
|
|
Adjusted Earnings (Loss) per Share - Diluted
| | | |
$
|
(0.20
|
)
| | | |
$
|
0.35
|
| | | |
$
|
(0.09
|
)
| | | |
$
|
0.78
|
| | | | | | | | | | | | | | | | |
|
(1) Adjustments are net of the impact of amounts related to income
taxes, attributable to noncontrolling interests, and allocated to
participating securities.
| | | | | | | | | | | | | | | | |
| Net cash provided by (used for) operating activities | | | | | | | | | | | | | | | | |
Net cash used for operating activities
| | | | | | | | | | | |
$
|
41,058
| | | | |
$
|
(82,243
|
)
|
Net change in non-manufacturer floorplan payable
| | | | | | | | | | | |
41,114
|
| | | |
31,395
|
|
Adjusted net cash provided by (used for) operating activities
| | | | | | | | | | | |
$
|
82,172
|
| | | |
$
|
(50,848
|
)
| | | | | | | | | | | | | | | | | | | | |
|
Investor Relations Contact: ICR, Inc. John Mills, jmills@icrinc.com Partner 310-954-1105
|
Apr 15, 2015 |
|