Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the third quarter and first nine months of fiscal 2011 ended October 31, 2010.

Fiscal 2011 Third Quarter

For the third quarter of fiscal 2011, revenue increased 37.1% to $311.3 million from revenue of $227.0 million in the third 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 $241.1 million for the third quarter of fiscal 2011, compared to $173.4 million in the third quarter last year. Parts sales were $42.0 million for the third quarter of fiscal 2011, compared to $33.0 million in the third quarter last year. Revenue generated from service was $20.8 million for the third quarter of fiscal 2011, compared to $15.9 million in the third quarter last year.

Gross profit for the third quarter of fiscal 2011 was $48.0 million, compared to $39.6 million in the third quarter of last year. The Company's gross profit margin was 15.4% in the fiscal third quarter of 2011, compared to 17.4% in the third quarter last year. The gross margin decrease was primarily due to lower equipment margins in the Agriculture and Construction businesses. Gross profit from parts and service revenue contributed 54% of overall gross profit for the third quarter of fiscal 2011, compared to 53% in the third quarter last year.

Operating expenses decreased to 10.5% of revenue for the third quarter of fiscal 2011 compared to 12.2% for the third quarter of fiscal 2010 due to improved fixed operating cost leverage and efficiencies resulting from higher revenues.

Pre-tax income for the third quarter of fiscal 2011 was $12.8 million, compared to $9.7 million in the third quarter last year. Pre-tax margin was 4.1% for the third quarter of fiscal 2011, compared to 4.3% in the third quarter last year. Pre-tax Agriculture segment income was $14.4 million for the third quarter of fiscal 2011, compared to $12.2 million in the third quarter last year. Pre-tax Construction segment loss was $0.2 million for the third quarter of fiscal 2011, compared to $1.8 million in the third quarter last year.

Net income for the third quarter of fiscal 2011 was $7.7 million, compared to net income of $5.7 million in the third quarter last year. Earnings per diluted share for the third quarter of fiscal 2011 were $0.42, compared to $0.32 per diluted share in the third quarter last year.