WEST FARGO, N.D., March27, 2019 (GLOBE NEWSWIRE) — Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal fourth and full year quarter and full year ended January 31, 2019.

David Meyer, Titan Machinery's chairman and chief executive officer, stated, "In the fiscal fourth quarter, we successfully captured seasonal year end North American agriculture equipment sales activity with strong equipment revenue resulting in solid cash flow generation and a healthy ending inventory position.

“We once again realized top and bottom line quarterly improvement in our construction business as we continue to focus on operational initiatives. We are pleased with the

integration of our recent German dealership acquisition (AGRAM) and anticipate continued contributions from this business going forward. The strength of our balance sheet, combined with improved year-over-year top and bottom line performance in all segments of our business, has us well positioned as we enter fiscal 2020."

Revenue for the fourth quarter of fiscal 2019 in Titan Machinery’s Agriculture Segment was $223.3 million, compared to $204.5 million in the fourth quarter last year. Pre-tax income for the fourth quarter of fiscal 2019 was $1.1 million, compared to $2.2 million in the fourth quarter last year. Adjusted pre-tax income for the fourth quarter of fiscal 2019 was $1.7 million, compared to $2.0 million in the fourth quarter last year.

Titan Machinery — 4QFY19 Segment Overview
($ 0000)

  4Q 2019 4Q 2018 Change
Revenue $359.6 $337.4 +6.6%

Agriculture

$223.3 $204.5 +9.2%

Construction

$86.4 $84.4 +2.5%

International

$50.0 $48.5 +2.9%

 

Fiscal 2019 Fourth Quarter Consolidated Results

 

For the fourth quarter of fiscal 2019, revenue was $359.6 million, compared to revenue of $337.4 million in the fourth quarter last year. Equipment revenue was $284 million for the fourth quarter of fiscal 2019, compared to $263.5 million in the fourth quarter last year. Parts revenue was $43.9 million for the fourth quarter of fiscal 2019, compared to $40.7 million in the fourth quarter last year. Revenue generated from service was $18.8 million for the fourth quarter of fiscal 2019, compared to $19.1 million in the fourth quarter last year. Revenue from rental and other was $13 million for the fourth quarter of fiscal 2019, compared to $14.1 million in the fourth quarter last year.

Gross profit for the fourth quarter of fiscal 2019 increased to $55.6 million compared to $52.1 million in the fourth quarter last year. The company's gross profit margin increased to 15.5% in the fourth quarter of fiscal 2019, compared to 15.4% in the fourth quarter last year. Gross profit margin increased slightly, as the impact of higher equipment margins was partially offset by a change in gross profit mix. The change in gross profit mix resulted from a higher proportion of equipment revenue as compared to higher margin parts and service revenue.

In the fourth quarter of fiscal 2019, net loss was $2.2 million compared to net income of $1.7 million, for the fourth quarter of fiscal 2018. On an adjusted basis, net loss for the fourth quarter of fiscal 2019 was $0.8 million compared to a net loss of $2.1 million for the fourth quarter of fiscal 2018.

The company generated $6.7 million in adjusted EBITDA in the fourth quarter of fiscal 2019, compared to $6.1 million for the fourth quarter of fiscal 2018.

FY2020 Outlook

Titan Machinery is looking for flat sales revenues for ag equipment in its 2020 fiscal year. The dealership group sees construction equipment sales up 0-5% and international revenue up 10-15%.

For Titan Machinery’s full fiscal year 2019 earnings please go here.