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, 2021.
David Meyer, Titan Machinery’s Chairman and
Chief Executive Officer, stated, "We completed fiscal 2021 with a
strong finish in fourth quarter, driven by our equipment business
which grew 35% for the quarter. From a segment perspective, our
Agriculture segment was the standout performer for the quarter and
fiscal year, generating very strong top and bottom line
performance. We are also pleased with the operating improvement in
our Construction segment this fiscal year, which generated positive
pre-tax income in fourth quarter and full year. While the pandemic
and adverse weather conditions have created additional obstacles
across our international store footprint, we experienced growth in
our International segment parts and service business during the
fourth quarter and full year, which has been a focus for us.
Looking ahead to fiscal 2022, Titan Machinery is in a great
position — we are benefiting from renewed strength in the
commodities cycle, we've stayed close to our customers with
exceptional service, and we've carefully managed our cost structure
and balance sheet to ensure that we drive profitability and remain
nimble to react to future opportunities."
Fiscal 2021 Fourth Quarter
Results
Consolidated ResultsFor the fourth quarter of
fiscal 2021, revenue was $436.7 million, compared to revenue of
$351.0 million in the fourth quarter last year. Equipment revenue
was $354.0 million for the fourth quarter of fiscal 2021, compared
to $262.8 million in the fourth quarter last year. Parts revenue
was $49.8 million for the fourth quarter of fiscal 2021, compared
to $52.3 million in the fourth quarter last year. Revenue generated
from service was $22.9 million for the fourth quarter of fiscal
2021, compared to $22.0 million in the fourth quarter last year.
Revenue from rental and other was $9.9 million for the fourth
quarter of fiscal 2021, compared to $13.9 million in the fourth
quarter last year.
Gross profit for the fourth quarter of fiscal
2021 increased to $67.7 million compared to $61.1 million in the
fourth quarter last year. The Company's gross profit margin
decreased to 15.5% in the fourth quarter of fiscal 2021, compared
to 17.4% in the fourth quarter last year. Gross profit margin
decreased primarily due to mix, with a greater proportion of
equipment revenue in the fourth quarter of fiscal 2021 compared to
a greater proportion of higher margin parts and service revenue in
the fourth quarter last year.
Operating expenses were essentially flat at
$60.5 million for the fourth quarter of fiscal 2021, compared to
$60.1 million in the fourth quarter last year. Operating expenses
as a percentage of sales improved 320 basis points to 13.9% for the
fourth quarter of fiscal 2021, compared to 17.1% of revenue in the
prior year period. The Company recognized impairments related to
intangible and long-lived assets of $0.4 million in the quarter
compared to $3.6 million in the prior year quarter.
Floorplan and other interest expense was $1.5
million for the fourth quarter of fiscal 2021, compared to $2.5
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 lines of
credit.
In the fourth quarter of fiscal 2021, net income
was $0.8 million, or earnings per diluted share of $0.03, compared
to $0.7 million, or earnings per diluted share of $0.03 for the
fourth quarter of fiscal 2020.
On an adjusted basis, net income for the fourth
quarter of fiscal 2021 was $5.3 million, or $0.23 per diluted
share, compared to net income of $0.6 million, or $0.02 per diluted
share for the fourth quarter of fiscal 2020. The adjusted fourth
quarter fiscal 2021 net income of $5.3 million excludes a $3.3
million charge for Ukraine income tax valuation allowance
adjustments, while the adjusted fourth quarter fiscal 2020 net
income excludes a $4.6 million benefit for domestic income tax
valuation adjustments.
The Company generated $13.7 million in adjusted
EBITDA in the fourth quarter of fiscal 2021, compared to $8.1
million for the fourth quarter of fiscal 2020.
Segment ResultsAgriculture Segment - Revenue for
the fourth quarter of fiscal 2021 was $303.2 million, compared to
$215.5 million in the fourth quarter last year. Pre-tax income for
the fourth quarter of fiscal 2021 was $7.9 million, compared to a
pre-tax loss of $0.3 million in the fourth quarter last year.
Adjusted pre-tax income for the fourth quarter of fiscal 2021 was
$8.0 million, compared to $2.5 million in the fourth quarter last
year.
Construction Segment - Revenue for the fourth
quarter of fiscal 2021 was $88.9 million, compared to $87.2 million
in the fourth quarter last year. Pre-tax income for the fourth
quarter of fiscal 2021 was $0.2 million, compared to a pre-tax loss
of $1.8 million in the fourth quarter last year. Adjusted pre-tax
income for the fourth quarter of fiscal 2021 was $0.6 million,
compared to a pre-tax loss of $1.0 million in the fourth quarter
last year. At the end of fiscal 2021, the Company divested its
Phoenix and Tucson, Arizona construction equipment store
locations.
International Segment - Revenue for the fourth
quarter of fiscal 2021 was $44.6 million, compared to $48.2 million
in the fourth quarter last year. Pre-tax loss for the fourth
quarter of fiscal 2021 was $2.9 million, compared to $2.3 million
in the fourth quarter last year. Adjusted pre-tax loss for the
fourth quarter of fiscal 2021 was $2.7 million, compared to $2.3
million in the fourth quarter last year.
Fiscal 2021 Full Year
Results
Revenue increased 8.1% to $1.4 billion for
fiscal 2021. Net income for fiscal 2021 was $19.4 million, or $0.86
per diluted share, compared to $14.0 million, or $0.63 per diluted
share, for the prior year. Adjusted net income for fiscal 2021 was
$28.2 million, or $1.26 per diluted share, compared to an adjusted
net income of $18.6 million, or $0.84 per diluted share, for the
prior year. The Company generated adjusted EBITDA of $65.4 million
in fiscal 2021, representing an increase of 24.6% compared to
adjusted EBITDA of $52.5 million in fiscal 2020.
Balance Sheet and Cash Flow
Cash at the end of the fourth quarter of fiscal
2021 was $79.0 million. Inventories decreased to $418.5 million as
of January 31, 2021, compared to $597.4 million as of
January 31, 2020. This inventory decrease includes a $177.8
million decrease in equipment inventory, which reflects a decrease
in new equipment inventory of $151.7 million and a $26.1 million
decrease in used equipment inventory. The lower year-end inventory
also reflects the divestiture of the Company's two Arizona
construction stores. Outstanding floorplan payables were
$161.8 million on $773.0 million total available
floorplan lines of credit as of January 31, 2021, compared to
$371.8 million outstanding floorplan payables as of
January 31, 2020.
For the fiscal year ended January 31, 2021,
the Company’s net cash provided by operating activities was $173.0
million, compared to $1.0 million for the fiscal year ended
January 31, 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 $148.5 million for the fiscal year
ended January 31, 2021, compared to $17.8 million for the
fiscal year ended January 31, 2020.
Mr. Meyer concluded, "We expect another strong
year of growth in fiscal 2022. While fiscal 2021 was a great
success, especially in light of the unforeseen challenges brought
about by the global pandemic, we believe there are additional areas
of opportunity in this new fiscal year. Our entire organization has
done an amazing job and we are ideally positioned to take advantage
of the improving industry conditions with our healthy inventory
position, which helped drive a record $148 million in adjusted
operating cash flow during fiscal 2021 and is supporting our
business in a variety of ways such as improved equipment margins
and lowering our floorplan interest expense. These dynamics have
improved our cash flow, reduced our debt, and put the business on a
strong foundation to generate profitable growth across our segments
in fiscal 2022."
Fiscal 2022 Modeling
Assumptions
The following are the Company's current
expectations for fiscal 2022 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 |
Segment
Revenue |
|
Agriculture(1) |
Up 10-15% |
Construction(2) |
Down 0-5% |
International |
Up 12-17% |
|
|
Diluted
EPS(3) |
$1.25 - $1.45 |
|
|
(1) Includes the
full year impact of the HorizonWest acquisition completed in May
2020. |
(2) Includes the
full year impact of the Phoenix and Tucson, AZ store divestitures
in January 2021. Adjusting full year fiscal 2021 net sales by $27
million, representing the 2021 net sales of these divested stores,
results in a same-store sales assumption of up 3-8%. |
(3) Includes
expenses related to ERP implementation. |
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 1, 2021, by dialing (844) 512-2921 from the U.S.,
or (412) 317-6671 from international locations, and entering
confirmation code 13716797.
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, impairment charges, Ukraine
remeasurement gains/losses and costs associated with our Enterprise
Resource Planning (ERP) system transition. 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, diluted earnings 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, adjusted EBITDA, adjusted diluted
earnings per share, adjusted income (loss) before income taxes, and
adjusted net cash provided by 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 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, and modeling assumptions and expected
results of operations for the fiscal year ending January 31, 2022,
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 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, 2021 |
|
January 31, 2020 |
Assets |
|
|
|
Current Assets |
|
|
|
Cash |
$ |
78,990 |
|
|
$ |
43,721 |
|
Receivables, net of allowance for expected credit losses |
69,109 |
|
|
72,776 |
|
Inventories |
418,458 |
|
|
597,394 |
|
Prepaid expenses and other |
13,677 |
|
|
13,655 |
|
Total current assets |
580,234 |
|
|
727,546 |
|
Noncurrent Assets |
|
|
|
Property and equipment, net of accumulated depreciation |
147,165 |
|
|
145,562 |
|
Operating lease assets |
74,445 |
|
|
88,281 |
|
Deferred income taxes |
3,637 |
|
|
2,147 |
|
Goodwill |
1,433 |
|
|
2,327 |
|
Intangible assets, net of accumulated amortization |
7,785 |
|
|
8,367 |
|
Other |
1,090 |
|
|
1,113 |
|
Total noncurrent assets |
235,555 |
|
|
247,797 |
|
Total
Assets |
$ |
815,789 |
|
|
$ |
975,343 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current Liabilities |
|
|
|
Accounts payable |
$ |
20,045 |
|
|
$ |
16,976 |
|
Floorplan payable |
161,835 |
|
|
371,772 |
|
Current maturities of long-term debt |
4,591 |
|
|
13,779 |
|
Current maturities of operating leases |
11,772 |
|
|
12,259 |
|
Deferred revenue |
59,418 |
|
|
40,968 |
|
Accrued expenses and other |
48,791 |
|
|
38,360 |
|
Income taxes payable |
11,048 |
|
|
49 |
|
Total current liabilities |
317,500 |
|
|
494,163 |
|
Long-Term Liabilities |
|
|
|
Long-term debt, less current maturities |
44,906 |
|
|
37,789 |
|
Operating lease liabilities |
73,567 |
|
|
88,387 |
|
Deferred income taxes |
— |
|
|
2,055 |
|
Other long-term liabilities |
8,535 |
|
|
7,845 |
|
Total long-term liabilities |
127,008 |
|
|
136,076 |
|
Stockholders' Equity |
|
|
|
Common stock |
— |
|
|
— |
|
Additional paid-in-capital |
252,913 |
|
|
250,607 |
|
Retained earnings |
116,869 |
|
|
97,717 |
|
Accumulated other comprehensive income (loss) |
1,499 |
|
|
(3,220 |
) |
Total stockholders' equity |
371,281 |
|
|
345,104 |
|
Total Liabilities and
Stockholders' Equity |
$ |
815,789 |
|
|
$ |
975,343 |
|
|
|
TITAN MACHINERY INC. |
Consolidated Statements of Operations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
|
|
|
|
|
|
Equipment |
$ |
354,011 |
|
|
$ |
262,826 |
|
|
$ |
1,016,071 |
|
|
$ |
917,202 |
|
Parts |
49,830 |
|
|
52,289 |
|
|
244,676 |
|
|
234,217 |
|
Service |
22,947 |
|
|
21,950 |
|
|
107,229 |
|
|
99,165 |
|
Rental and other |
9,890 |
|
|
13,899 |
|
|
43,246 |
|
|
54,587 |
|
Total Revenue |
436,678 |
|
|
350,964 |
|
|
1,411,222 |
|
|
1,305,171 |
|
Cost of Revenue |
|
|
|
|
|
|
|
Equipment |
318,122 |
|
|
235,362 |
|
|
911,170 |
|
|
818,707 |
|
Parts |
35,668 |
|
|
36,810 |
|
|
171,873 |
|
|
165,190 |
|
Service |
8,429 |
|
|
8,276 |
|
|
36,692 |
|
|
33,446 |
|
Rental and other |
6,745 |
|
|
9,398 |
|
|
30,125 |
|
|
37,010 |
|
Total Cost of Revenue |
368,964 |
|
|
289,846 |
|
|
1,149,860 |
|
|
1,054,353 |
|
Gross Profit |
67,714 |
|
|
61,118 |
|
|
261,362 |
|
|
250,818 |
|
Operating Expenses |
60,523 |
|
|
60,128 |
|
|
220,774 |
|
|
225,722 |
|
Impairment of Goodwill |
— |
|
|
— |
|
|
1,453 |
|
|
— |
|
Impairment of Intangible and
Long-Lived Assets |
409 |
|
|
3,578 |
|
|
1,727 |
|
|
3,764 |
|
Income (Loss) from
Operations |
6,782 |
|
|
(2,588 |
) |
|
37,408 |
|
|
21,332 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
Interest and other income (expense) |
194 |
|
|
439 |
|
|
527 |
|
|
3,126 |
|
Floorplan interest expense |
(528 |
) |
|
(1,630 |
) |
|
(3,339 |
) |
|
(5,354 |
) |
Other interest expense |
(959 |
) |
|
(890 |
) |
|
(3,843 |
) |
|
(4,452 |
) |
Income (Loss) Before Income
Taxes |
5,489 |
|
|
(4,669 |
) |
|
30,753 |
|
|
14,652 |
|
Provision for (Benefit from)
Income Taxes |
4,707 |
|
|
(5,342 |
) |
|
11,397 |
|
|
699 |
|
Net Income |
782 |
|
|
673 |
|
|
19,356 |
|
|
13,953 |
|
|
|
|
|
|
|
|
|
Diluted Earnings per
Share |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.86 |
|
|
$ |
0.63 |
|
Diluted Weighted Average
Common Shares |
22,143 |
|
|
21,977 |
|
|
22,104 |
|
|
21,953 |
|
|
|
TITAN MACHINERY INC. |
Consolidated Condensed Statements of Cash
Flows |
(in thousands) |
(Unaudited) |
|
|
|
|
|
Year Ended January 31, |
|
2021 |
|
2020 |
Operating Activities |
|
|
|
Net income |
$ |
19,356 |
|
|
$ |
13,953 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation and amortization |
23,701 |
|
|
28,067 |
|
Impairment |
3,180 |
|
|
3,764 |
|
Other, net |
9,313 |
|
|
13,284 |
|
Changes in assets and liabilities |
|
|
|
Inventories |
199,245 |
|
|
(99,469 |
) |
Manufacturer floorplan payable |
(110,084 |
) |
|
49,601 |
|
Other working capital |
28,285 |
|
|
(8,245 |
) |
Net Cash Provided by Operating
Activities |
172,996 |
|
|
955 |
|
Investing Activities |
|
|
|
Property and equipment purchases |
(20,089 |
) |
|
(25,016 |
) |
Proceeds from sale of property and equipment |
6,592 |
|
|
2,415 |
|
Acquisition consideration, net of cash acquired |
(6,790 |
) |
|
(13,887 |
) |
Other, net |
(10 |
) |
|
19 |
|
Net Cash Used for Investing
Activities |
(20,297 |
) |
|
(36,469 |
) |
Financing Activities |
|
|
|
Net change in non-manufacturer floorplan payable |
(106,414 |
) |
|
50,158 |
|
Repurchase of senior convertible notes |
— |
|
|
(45,644 |
) |
Net proceeds from (payments on) long-term debt |
(10,616 |
) |
|
18,864 |
|
Other, net |
(909 |
) |
|
(509 |
) |
Net Cash Provided by (Used
for) Financing Activities |
(117,939 |
) |
|
22,869 |
|
Effect of Exchange Rate
Changes on Cash |
509 |
|
|
(379 |
) |
Net Change in Cash |
35,269 |
|
|
(13,024 |
) |
Cash at Beginning of
Period |
43,721 |
|
|
56,745 |
|
Cash at End of Period |
$ |
78,990 |
|
|
$ |
43,721 |
|
|
|
TITAN MACHINERY INC. |
Segment Results |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
$ |
303,161 |
|
|
$ |
215,508 |
|
|
40.7 |
% |
|
$ |
886,485 |
|
|
$ |
749,042 |
|
|
18.3 |
% |
Construction |
88,883 |
|
|
87,220 |
|
|
1.9 |
% |
|
305,745 |
|
|
320,034 |
|
|
(4.5) |
% |
International |
44,634 |
|
|
48,236 |
|
|
(7.5) |
% |
|
218,992 |
|
|
236,095 |
|
|
(7.2) |
% |
Total |
$ |
436,678 |
|
|
$ |
350,964 |
|
|
24.4 |
% |
|
$ |
1,411,222 |
|
|
$ |
1,305,171 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
Agriculture |
$ |
7,933 |
|
|
$ |
(275 |
) |
|
n/m |
|
$ |
34,422 |
|
|
$ |
18,036 |
|
|
90.9 |
% |
Construction |
236 |
|
|
(1,750 |
) |
|
n/m |
|
186 |
|
|
(2,290 |
) |
|
n/m |
International |
(2,890 |
) |
|
(2,279 |
) |
|
(26.8) |
% |
|
(6,025 |
) |
|
504 |
|
|
n/m |
Segment income before income taxes |
5,279 |
|
|
(4,304 |
) |
|
n/m |
|
28,583 |
|
|
16,250 |
|
|
75.9 |
% |
Shared Resources |
210 |
|
|
(365 |
) |
|
n/m |
|
2,170 |
|
|
(1,598 |
) |
|
n/m |
Total |
$ |
5,489 |
|
|
$ |
(4,669 |
) |
|
n/m |
|
$ |
30,753 |
|
|
$ |
14,652 |
|
|
109.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TITAN MACHINERY INC. |
Non-GAAP Reconciliations |
(in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, |
|
Twelve Months Ended January 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Adjusted Net
Income |
|
|
|
|
|
|
|
Net Income |
$ |
782 |
|
|
$ |
673 |
|
|
$ |
19,356 |
|
|
$ |
13,953 |
|
Adjustments |
|
|
|
|
|
|
|
ERP transition costs |
740 |
|
|
2,397 |
|
|
2,990 |
|
|
7,175 |
|
Impairment charges |
409 |
|
|
3,578 |
|
|
3,180 |
|
|
3,764 |
|
Ukraine remeasurement (gain) / loss |
201 |
|
|
(28 |
) |
|
1,174 |
|
|
(616 |
) |
Total Pre-Tax Adjustments |
1,350 |
|
|
5,947 |
|
|
7,344 |
|
|
10,323 |
|
Tax Effect of Adjustments
(1) |
386 |
|
|
(1,452 |
) |
|
(2,227 |
) |
|
(1,036 |
) |
Adjustment for Tax Valuation
Allowance |
2,741 |
|
|
(4,611 |
) |
|
3,759 |
|
|
(4,611 |
) |
Total Adjustments |
4,477 |
|
|
(116 |
) |
|
8,876 |
|
|
4,676 |
|
Adjusted Net Income |
$ |
5,259 |
|
|
$ |
557 |
|
|
$ |
28,232 |
|
|
$ |
18,629 |
|
|
|
|
|
|
|
|
|
Adjusted Diluted
EPS |
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.03 |
|
|
$ |
0.03 |
|
|
$ |
0.86 |
|
|
$ |
0.63 |
|
Adjustments (2) |
|
|
|
|
|
|
|
ERP transition costs |
0.03 |
|
|
0.11 |
|
|
0.13 |
|
|
0.32 |
|
Impairment charges |
0.02 |
|
|
0.16 |
|
|
0.14 |
|
|
0.17 |
|
Ukraine remeasurement (gain) / loss |
0.01 |
|
|
(0.01 |
) |
|
0.05 |
|
|
(0.02 |
) |
Total Pre-Tax Adjustments |
0.06 |
|
|
0.26 |
|
|
0.32 |
|
|
0.47 |
|
Tax Effect of Adjustments
(1) |
0.02 |
|
|
(0.06 |
) |
|
(0.10 |
) |
|
(0.05 |
) |
Adjustment for Tax Valuation
Allowance |
0.12 |
|
|
(0.21 |
) |
|
0.18 |
|
|
(0.21 |
) |
Total Adjustments |
0.20 |
|
|
(0.01 |
) |
|
0.40 |
|
|
0.21 |
|
Adjusted Diluted EPS |
$ |
0.23 |
|
|
$ |
0.02 |
|
|
$ |
1.26 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
Adjusted Income Before
Income Taxes |
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
$ |
5,489 |
|
|
$ |
(4,669 |
) |
|
$ |
30,753 |
|
|
$ |
14,652 |
|
Adjustments |
|
|
|
|
|
|
|
ERP transition costs |
740 |
|
|
2,397 |
|
|
2,990 |
|
|
7,175 |
|
Impairment charges |
409 |
|
|
3,578 |
|
|
3,180 |
|
|
3,764 |
|
Ukraine remeasurement (gain) / loss |
201 |
|
|
(28 |
) |
|
1,174 |
|
|
(616 |
) |
Total Adjustments |
1,350 |
|
|
5,947 |
|
|
7,344 |
|
|
10,323 |
|
Adjusted Income Before Income
Taxes |
$ |
6,839 |
|
|
$ |
1,278 |
|
|
$ |
38,097 |
|
|
$ |
24,975 |
|
|
|
|
|
|
|
|
|
Adjusted Income Before
Income Taxes - Agriculture |
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
$ |
7,933 |
|
|
$ |
(275 |
) |
|
$ |
34,422 |
|
|
$ |
18,036 |
|
Impairment charges |
28 |
|
|
2,807 |
|
|
272 |
|
|
2,807 |
|
Adjusted Income Before Income
Taxes |
$ |
7,961 |
|
|
$ |
2,532 |
|
|
$ |
34,694 |
|
|
$ |
20,843 |
|
|
|
|
|
|
|
|
|
Adjusted Income (Loss)
Before Income Taxes - Construction |
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
$ |
236 |
|
|
$ |
(1,750 |
) |
|
$ |
186 |
|
|
$ |
(2,290 |
) |
Impairment charges |
381 |
|
|
771 |
|
|
597 |
|
|
957 |
|
Adjusted Income (Loss) Before
Income Taxes |
$ |
617 |
|
|
$ |
(979 |
) |
|
$ |
783 |
|
|
$ |
(1,333 |
) |
|
|
|
|
|
|
|
|
Adjusted Loss Before
Income Taxes - International |
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes |
$ |
(2,890 |
) |
|
$ |
(2,279 |
) |
|
$ |
(6,025 |
) |
|
$ |
504 |
|
Adjustments |
|
|
|
|
|
|
|
Impairment charges |
— |
|
|
— |
|
|
2,311 |
|
|
— |
|
Ukraine remeasurement (gain) / loss |
201 |
|
|
(28 |
) |
|
1,174 |
|
|
(616 |
) |
Total Adjustments |
201 |
|
|
(28 |
) |
|
3,485 |
|
|
(616 |
) |
Adjusted Loss Before Income
Taxes |
$ |
(2,689 |
) |
|
$ |
(2,307 |
) |
|
$ |
(2,540 |
) |
|
$ |
(112 |
) |
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
Net Income |
$ |
782 |
|
|
$ |
673 |
|
|
$ |
19,356 |
|
|
$ |
13,953 |
|
Adjustments |
|
|
|
|
|
|
|
Interest expense, net of interest income |
884 |
|
|
815 |
|
|
3,574 |
|
|
4,121 |
|
Provision for income taxes |
4,707 |
|
|
(5,342 |
) |
|
11,397 |
|
|
699 |
|
Depreciation and amortization |
5,970 |
|
|
7,006 |
|
|
23,701 |
|
|
28,067 |
|
EBITDA |
12,343 |
|
|
3,152 |
|
|
58,028 |
|
|
46,840 |
|
Adjustments |
|
|
|
|
|
|
|
ERP transition costs |
740 |
|
|
1,384 |
|
|
2,990 |
|
|
2,497 |
|
Impairment charges |
409 |
|
|
3,578 |
|
|
3,180 |
|
|
3,764 |
|
Ukraine remeasurement (gain) / loss |
201 |
|
|
(28 |
) |
|
1,174 |
|
|
(616 |
) |
Total Adjustments |
1,350 |
|
|
4,934 |
|
|
7,344 |
|
|
5,645 |
|
Adjusted EBITDA |
$ |
13,693 |
|
|
$ |
8,086 |
|
|
$ |
65,372 |
|
|
$ |
52,485 |
|
|
|
|
|
|
|
|
|
Adjusted Net Cash
Provided by Operating Activities |
|
|
|
|
|
|
|
Net Cash Provided by Operating
Activities |
|
|
|
|
$ |
172,996 |
|
|
$ |
955 |
|
Net Change in Non-Manufacturer
Floorplan Payable |
|
|
|
|
(106,414 |
) |
|
50,158 |
|
Adjustment for Constant Equity
in Inventory |
|
|
|
|
81,900 |
|
|
(33,359 |
) |
Adjusted Net Cash Provided by Operating Activities |
|
|
|
|
$ |
148,482 |
|
|
$ |
17,754 |
|
|
|
|
|
|
|
|
|
|
(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 ($0.1 million) for the three months ended
January 31, 2021 and $1.2 million for the fiscal year ended January
31, 2021. |
(2) Adjustments are
net of amounts allocated to participating securities where
applicable. |
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