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AEDNews - Construction Equipment Industry NewsTitan Machinery Reports Fourth Quarter Revenue Increase of 65 PercentTitan Machinery Inc., a network of full-service agricultural and construction equipment stores, recently reported financial results for the fiscal fourth quarter and full year ended Jan. 31, 2012. Fiscal 2011 Fourth Quarter Results For the fourth quarter of fiscal 2011, revenue increased 64.9 percent to $607.0 million from revenue of $368.1 million in the fourth quarter last year. All three of the company's main revenue sources – equipment, parts and service – contributed to this period-over-period revenue growth. Equipment sales were $517.1 million for the fourth quarter of fiscal 2012, compared to $310.9 million in the fourth quarter last year. Parts sales were $45.7 million for the fourth quarter of fiscal 2012, compared to $29.9 million in the fourth quarter last year. Revenue generated from service was $27.3 million for the fourth quarter of fiscal 2012, compared to $19.6 million in the fourth quarter last year. Gross profit for the fourth quarter of fiscal 2012 was $92.8 million, compared to $56.1 million in the fourth quarter last year. The company's gross profit margin was 15.3 percent in the fourth quarter of fiscal 2012, compared to 15.2 percent in the fourth quarter last year. Gross profit from parts, service and rental revenue for the fourth quarter of fiscal 2012 increased to $35.9 million from $22.0 million in the fourth quarter of last year. Operating expenses decreased to 9.9 percent of revenue for the fourth quarter of fiscal 2012, compared to 10.5 percent for the fourth quarter of last year, reflecting improved fixed operating cost leverage. Pre-tax income for the fourth quarter of fiscal 2012 was $29.6 million, compared to $17.2 million in the fourth quarter last year. Pre-tax margin was 4.9 percent for the fourth quarter of fiscal 2011, compared to 4.7 percent in the fourth quarter of the preceding year. Pre-tax Agriculture segment income was $30.4 million for the fourth quarter of fiscal 2011, compared to $18.6 million in the fourth quarter last year. Pre-tax Construction segment income was $1.0 million for the fourth quarter of fiscal 2011, compared to a loss of $0.5 million in the fourth quarter last year. Net income attributable to common stockholders for the fourth quarter of fiscal 2011 was $17.6 million, compared to $10.3 million in the fourth quarter last year. Earnings per diluted share for the fourth quarter of fiscal 2012 were $0.84 on approximately 20.9 million weighted average diluted common shares outstanding, compared to $0.57 on approximately 18.1 million weighted average diluted common shares outstanding in the fourth quarter last year. The increase in weighted average diluted common shares outstanding was primarily due to the company's May 2011 follow-on offering. Fiscal 2011 Full Year Results For the full year ended Jan. 31, 2012, revenue increased 51.6 percent to $1.66 billion from $1.09 billion for fiscal 2011. Gross margin for fiscal 2012 was 16.6 percent, compared to 15.9 percent in fiscal 2011. Pre-tax income for fiscal 2012 was $73.6 million for a pre-tax margin of 4.4 percent, compared to $37.2 million, or a pre-tax margin of 3.4 percent, for fiscal 2011. Net income attributable to common stockholders for fiscal 2012 was $43.8 million, or $2.18 per diluted share, compared to $22.1 million, or $1.23 per diluted share, for fiscal 2011. The weighted average diluted common shares outstanding for fiscal 2012 were 20.1 million, compared to 18.0 million weighted average diluted common shares outstanding for fiscal 2011. Acquisitions & New Store Opening In the fourth quarter of fiscal 2012, the company completed three acquisitions, consisting of two agriculture equipment dealerships in the United States and two agriculture dealerships in Europe. In addition, subsequent to the end of the fourth quarter of fiscal 2012, the company completed four acquisitions, consisting of one agriculture equipment dealership in the United States, three construction equipment dealership locations in the United States, one independent rental yard location in the United States, and seven agriculture equipment dealership locations in Europe. The company also opened one new agriculture equipment dealership in Europe. The company's expansion into Europe represents an additional growth platform and an opportunity to capture a larger percentage of the global agriculture economy by leveraging its proven operating model and dealership experience. In addition, the company expanded its construction footprint into Colorado with the acquisition of three locations and increased the size of its rental business with an additional rental yard acquisition. The company continues to execute on its agriculture acquisitions and strengthen its contiguous network of dealerships in the Upper Midwest. Management Comments David Meyer, Titan Machinery's chairman and chief executive officer, stated, "We are pleased with our strong fourth quarter and full year results, as we delivered another record year of revenue and net income for Titan Machinery. In fiscal 2012, we generated strong organic and acquired growth, as a result of several factors, including the continuation of a robust agriculture equipment market, an improved construction equipment market in the region in which we do business, and growth in our construction equipment rental business. In the fourth quarter, equipment demand was driven by strong net farm income for calendar year 2011 and an improving construction market, enabling us to exceed our fiscal 2012 annual revenue and net income guidance." Meyer continued, "As we begin fiscal 2013, we are excited about the outlook for our business and are confident that we are well positioned to build upon our positive momentum and generate another record year for Titan Machinery. We expect to benefit from continued organic and acquired growth, including our international expansion into Romania and Bulgaria and our expanding footprint in our core Upper Midwest market. In addition, the operating environment remains favorable for our customers for both of our business segments." About Titan Machinery Inc. Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, N.D., is a multiunit 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 96 North American dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming, Wisconsin and Colorado, including two outlet stores, as well as 10 European dealerships in Romania and Bulgaria. The Titan Machinery dealerships represent one or more of the CNH Brands (NYSE: CNH), a majority-owned subsidiary of Fiat Industrial (Milan: FI.MI), including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco and CNH Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com. Article Date: 2012-04-14 Source: Titan Machinery Inc. Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved. | ||||||
