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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Titan Machinery Inc | NASDAQ:TITN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.09 | 0.40% | 22.70 | 22.50 | 23.06 | 22.90 | 22.64 | 22.65 | 78,276 | 01:00:00 |
|
Delaware
|
|
No. 45-0357838
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(IRS Employer
Identification No.)
|
|
Large accelerated filer
o
|
|
Accelerated filer
x
|
|
|
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
(Do not check if smaller reporting company)
|
|
|
|
||
|
|
Page No.
|
PART I.
|
FINANCIAL INFORMATION
|
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
|
Consolidated Balance Sheets as of July 31, 2016 and January 31, 2016
|
|
|
Consolidated Statements of Operations for the three and six months ended July 31, 2016 and 2015
|
|
|
Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended July 31, 2016 and 2015
|
|
|
Consolidated Statements of Stockholders' Equity for the six months ended July 31, 2016 and 2015
|
|
|
Consolidated Statements of Cash Flows for the six months ended July 31, 2016 and 2015
|
|
|
Notes to Consolidated Financial Statements
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
|
PART II.
|
OTHER INFORMATION
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
|
ITEM 1A.
|
RISK FACTORS
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
|
ITEM 5.
|
OTHER INFORMATION
|
|
ITEM 6.
|
EXHIBITS
|
|
Signatures
|
|
|
Exhibit Index
|
|
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
|
|
|
||||
Assets
|
|
|
|
|
|||
Current Assets
|
|
|
|
||||
Cash
|
$
|
51,090
|
|
|
$
|
89,465
|
|
Receivables (net of allowance of $4,535 and $3,591 as of July 31, 2016 and January 31, 2016, respectively)
|
60,076
|
|
|
56,552
|
|
||
Inventories
|
682,049
|
|
|
689,464
|
|
||
Prepaid expenses and other
|
6,148
|
|
|
9,753
|
|
||
Income taxes receivable
|
4,374
|
|
|
13,011
|
|
||
Total current assets
|
803,737
|
|
|
858,245
|
|
||
Noncurrent Assets
|
|
|
|
||||
Intangible assets, net of accumulated amortization
|
5,041
|
|
|
5,134
|
|
||
Property and equipment, net of accumulated depreciation
|
174,596
|
|
|
183,179
|
|
||
Other
|
1,432
|
|
|
1,317
|
|
||
Total noncurrent assets
|
181,069
|
|
|
189,630
|
|
||
Total Assets
|
$
|
984,806
|
|
|
$
|
1,047,875
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
16,265
|
|
|
$
|
16,863
|
|
Floorplan payable
|
430,838
|
|
|
444,780
|
|
||
Current maturities of long-term debt
|
15,623
|
|
|
1,557
|
|
||
Customer deposits
|
14,026
|
|
|
31,159
|
|
||
Accrued expenses
|
30,488
|
|
|
28,914
|
|
||
Income taxes payable
|
38
|
|
|
152
|
|
||
Total current liabilities
|
507,278
|
|
|
523,425
|
|
||
Long-Term Liabilities
|
|
|
|
||||
Senior convertible notes
|
109,011
|
|
|
134,145
|
|
||
Long-term debt, less current maturities
|
25,527
|
|
|
38,409
|
|
||
Deferred income taxes
|
10,993
|
|
|
11,135
|
|
||
Other long-term liabilities
|
2,225
|
|
|
2,412
|
|
||
Total long-term liabilities
|
147,756
|
|
|
186,101
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Stockholders' Equity
|
|
|
|
||||
Common stock, par value $.00001 per share, 45,000 shares authorized; 21,816 shares issued and outstanding at July 31, 2016; 21,604 shares issued and outstanding at January 31, 2016
|
—
|
|
|
—
|
|
||
Additional paid-in-capital
|
240,674
|
|
|
242,491
|
|
||
Retained earnings
|
93,322
|
|
|
99,526
|
|
||
Accumulated other comprehensive loss
|
(4,224
|
)
|
|
(4,461
|
)
|
||
Total Titan Machinery Inc. stockholders' equity
|
329,772
|
|
|
337,556
|
|
||
Noncontrolling interest
|
—
|
|
|
793
|
|
||
Total stockholders' equity
|
329,772
|
|
|
338,349
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
984,806
|
|
|
$
|
1,047,875
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
173,301
|
|
|
$
|
221,016
|
|
|
$
|
358,175
|
|
|
$
|
465,999
|
|
Parts
|
58,336
|
|
|
62,081
|
|
|
115,845
|
|
|
123,601
|
|
||||
Service
|
31,296
|
|
|
32,842
|
|
|
62,288
|
|
|
65,744
|
|
||||
Rental and other
|
15,400
|
|
|
18,251
|
|
|
26,885
|
|
|
32,042
|
|
||||
Total Revenue
|
278,333
|
|
|
334,190
|
|
|
563,193
|
|
|
687,386
|
|
||||
Cost of Revenue
|
|
|
|
|
|
|
|
||||||||
Equipment
|
160,906
|
|
|
203,152
|
|
|
331,230
|
|
|
430,185
|
|
||||
Parts
|
41,118
|
|
|
43,382
|
|
|
81,619
|
|
|
86,953
|
|
||||
Service
|
12,045
|
|
|
12,327
|
|
|
23,645
|
|
|
23,687
|
|
||||
Rental and other
|
11,331
|
|
|
13,260
|
|
|
20,218
|
|
|
24,057
|
|
||||
Total Cost of Revenue
|
225,400
|
|
|
272,121
|
|
|
456,712
|
|
|
564,882
|
|
||||
Gross Profit
|
52,933
|
|
|
62,069
|
|
|
106,481
|
|
|
122,504
|
|
||||
Operating Expenses
|
51,487
|
|
|
55,385
|
|
|
105,989
|
|
|
112,495
|
|
||||
Impairment and Realignment Costs
|
24
|
|
|
(104
|
)
|
|
271
|
|
|
1,497
|
|
||||
Income from Operations
|
1,422
|
|
|
6,788
|
|
|
221
|
|
|
8,512
|
|
||||
Other Income (Expense)
|
|
|
|
|
|
|
|
||||||||
Interest income and other income (expense)
|
612
|
|
|
837
|
|
|
749
|
|
|
(1,287
|
)
|
||||
Floorplan interest expense
|
(3,806
|
)
|
|
(4,744
|
)
|
|
(7,549
|
)
|
|
(9,343
|
)
|
||||
Other interest expense
|
(2,777
|
)
|
|
(3,360
|
)
|
|
(3,770
|
)
|
|
(7,187
|
)
|
||||
Income (Loss) Before Income Taxes
|
(4,549
|
)
|
|
(479
|
)
|
|
(10,349
|
)
|
|
(9,305
|
)
|
||||
Provision for (Benefit from) Income Taxes
|
(1,847
|
)
|
|
(649
|
)
|
|
(3,789
|
)
|
|
(2,585
|
)
|
||||
Net Income (Loss) Including Noncontrolling Interest
|
$
|
(2,702
|
)
|
|
$
|
170
|
|
|
$
|
(6,560
|
)
|
|
$
|
(6,720
|
)
|
Less: Net Income (Loss) Attributable to Noncontrolling Interest
|
(182
|
)
|
|
164
|
|
|
(356
|
)
|
|
(422
|
)
|
||||
Net Income (Loss) Attributable to Titan Machinery Inc.
|
$
|
(2,520
|
)
|
|
$
|
6
|
|
|
$
|
(6,204
|
)
|
|
$
|
(6,298
|
)
|
Net (Income) Loss Allocated to Participating Securities - Note 1
|
51
|
|
|
—
|
|
|
117
|
|
|
112
|
|
||||
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders
|
$
|
(2,469
|
)
|
|
$
|
6
|
|
|
$
|
(6,087
|
)
|
|
$
|
(6,186
|
)
|
Earnings (Loss) per Share - Note 1
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Basic
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.29
|
)
|
Earnings (Loss) per Share - Diluted
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.29
|
)
|
Weighted Average Common Shares - Basic
|
21,205
|
|
|
21,105
|
|
|
21,204
|
|
|
21,075
|
|
||||
Weighted Average Common Shares - Diluted
|
21,205
|
|
|
21,217
|
|
|
21,204
|
|
|
21,075
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net Income (Loss) Including Noncontrolling Interest
|
$
|
(2,702
|
)
|
|
$
|
170
|
|
|
$
|
(6,560
|
)
|
|
$
|
(6,720
|
)
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(435
|
)
|
|
2,462
|
|
|
319
|
|
|
(3,729
|
)
|
||||
Unrealized gain on net investment hedge derivative instruments, net of tax expense of $84 for the three months ended July 31, 2015, and $128 for the six months ended July 31, 2015
|
—
|
|
|
126
|
|
|
—
|
|
|
193
|
|
||||
Unrealized gain (loss) on interest rate swap cash flow hedge derivative instrument, net of tax expense (benefit) of ($142) and ($42) for the three months ended July 31, 2016 and 2015, respectively, and ($200) and $30 for the six months ended July 31, 2016 and 2015, respectively
|
(213
|
)
|
|
(63
|
)
|
|
(300
|
)
|
|
46
|
|
||||
Reclassification of loss on interest rate swap cash flow hedge derivative instruments included in net income (loss), net of tax benefit of $144 and $147 for the three months ended July 31, 2016 and 2015, respectively, and $292 and $319 for the three and six months ended July 31, 2016 and 2015, respectively
|
216
|
|
|
220
|
|
|
439
|
|
|
478
|
|
||||
Reclassification of loss on foreign currency contract cash flow hedge derivative instruments included in net income (loss), net of tax benefit of $5 for the six months ended July 31, 2015
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Total Other Comprehensive Income (Loss)
|
(432
|
)
|
|
2,745
|
|
|
458
|
|
|
(3,004
|
)
|
||||
Comprehensive Income (Loss)
|
(3,134
|
)
|
|
2,915
|
|
|
(6,102
|
)
|
|
(9,724
|
)
|
||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interest
|
(147
|
)
|
|
672
|
|
|
(333
|
)
|
|
(1,033
|
)
|
||||
Comprehensive Income (Loss) Attributable To Titan Machinery Inc.
|
$
|
(2,987
|
)
|
|
$
|
2,243
|
|
|
$
|
(5,769
|
)
|
|
$
|
(8,691
|
)
|
|
Common Stock
|
|
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Shares Outstanding
|
|
Amount
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Foreign Currency Translation Adjustments
|
|
Unrealized Gains (Losses) on Net Investment Hedges
|
|
Unrealized Gains (Losses) on Interest Rate Swap Cash Flow Hedges
|
|
Unrealized Gains (Losses) on Foreign Currency Contract Cash Flow Hedges
|
|
Total
|
|
Total Titan Machinery Inc. Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||
Balance, January 31, 2015
|
21,406
|
|
|
$
|
—
|
|
|
$
|
240,180
|
|
|
$
|
137,418
|
|
|
$
|
(1,632
|
)
|
|
$
|
2,510
|
|
|
$
|
(1,940
|
)
|
|
$
|
(37
|
)
|
|
$
|
(1,099
|
)
|
|
$
|
376,499
|
|
|
$
|
1,860
|
|
|
$
|
378,359
|
|
Common stock issued on grant of restricted stock (net of forfeitures and shares withheld for income taxes), exercise of stock options, and tax benefits of equity awards
|
168
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
(158
|
)
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
1,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,136
|
|
|
—
|
|
|
1,136
|
|
|||||||||||
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,298
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,298
|
)
|
|
(422
|
)
|
|
(6,720
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,118
|
)
|
|
193
|
|
|
524
|
|
|
8
|
|
|
(2,393
|
)
|
|
(2,393
|
)
|
|
(611
|
)
|
|
(3,004
|
)
|
|||||||||||
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,691
|
)
|
|
(1,033
|
)
|
|
(9,724
|
)
|
|||||||||||
Balance, July 31, 2015
|
21,574
|
|
|
$
|
—
|
|
|
$
|
241,158
|
|
|
$
|
131,120
|
|
|
$
|
(4,750
|
)
|
|
$
|
2,703
|
|
|
$
|
(1,416
|
)
|
|
$
|
(29
|
)
|
|
$
|
(3,492
|
)
|
|
$
|
368,786
|
|
|
$
|
827
|
|
|
$
|
369,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance, January 31, 2016
|
21,604
|
|
|
$
|
—
|
|
|
$
|
242,491
|
|
|
$
|
99,526
|
|
|
$
|
(5,500
|
)
|
|
$
|
2,711
|
|
|
$
|
(1,672
|
)
|
|
$
|
—
|
|
|
$
|
(4,461
|
)
|
|
$
|
337,556
|
|
|
$
|
793
|
|
|
$
|
338,349
|
|
Common stock issued on grant of restricted stock (net of forfeitures and shares withheld for income taxes), exercise of stock options, and tax benefits of equity awards
|
212
|
|
|
—
|
|
|
(382
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(382
|
)
|
|
—
|
|
|
(382
|
)
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
1,205
|
|
|||||||||||
Repurchase of Senior Convertible Notes
|
—
|
|
|
—
|
|
|
1,026
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,026
|
|
|
—
|
|
|
1,026
|
|
|||||||||||
Acquisition of noncontrolling interest
|
—
|
|
|
—
|
|
|
(3,666
|
)
|
|
—
|
|
|
(198
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
|
(3,864
|
)
|
|
(460
|
)
|
|
(4,324
|
)
|
|||||||||||
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,204
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,204
|
)
|
|
(356
|
)
|
|
(6,560
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
435
|
|
|
435
|
|
|
23
|
|
|
458
|
|
|||||||||||
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,769
|
)
|
|
(333
|
)
|
|
(6,102
|
)
|
|||||||||||
Balance, July 31, 2016
|
21,816
|
|
|
$
|
—
|
|
|
$
|
240,674
|
|
|
$
|
93,322
|
|
|
$
|
(5,401
|
)
|
|
$
|
2,711
|
|
|
$
|
(1,534
|
)
|
|
$
|
—
|
|
|
$
|
(4,224
|
)
|
|
$
|
329,772
|
|
|
$
|
—
|
|
|
$
|
329,772
|
|
|
Six Months Ended July 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss) including noncontrolling interest
|
$
|
(6,560
|
)
|
|
$
|
(6,720
|
)
|
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by operating activities
|
|
|
|
||||
Depreciation and amortization
|
12,828
|
|
|
13,824
|
|
||
Impairment
|
—
|
|
|
152
|
|
||
Deferred income taxes
|
792
|
|
|
689
|
|
||
Stock-based compensation expense
|
1,205
|
|
|
1,136
|
|
||
Noncash interest expense
|
2,616
|
|
|
3,018
|
|
||
Unrealized foreign currency (gain) loss on loans to international subsidiaries
|
(413
|
)
|
|
816
|
|
||
Gain on repurchase of Senior Convertible Notes
|
(2,102
|
)
|
|
—
|
|
||
Other, net
|
187
|
|
|
(245
|
)
|
||
Changes in assets and liabilities
|
|
|
|
||||
Receivables, prepaid expenses and other assets
|
(3,731
|
)
|
|
6,296
|
|
||
Inventories
|
13,644
|
|
|
8,910
|
|
||
Manufacturer floorplan payable
|
52,048
|
|
|
186,563
|
|
||
Accounts payable, customer deposits, accrued expenses and other long-term liabilities
|
(18,273
|
)
|
|
(21,444
|
)
|
||
Income taxes
|
8,194
|
|
|
(7,426
|
)
|
||
Net Cash Provided by Operating Activities
|
60,435
|
|
|
185,569
|
|
||
Investing Activities
|
|
|
|
||||
Rental fleet purchases
|
(2,156
|
)
|
|
(250
|
)
|
||
Property and equipment purchases (excluding rental fleet)
|
(2,750
|
)
|
|
(3,910
|
)
|
||
Proceeds from sale of property and equipment
|
1,383
|
|
|
2,201
|
|
||
Proceeds upon settlement of net investment hedge derivative instruments
|
—
|
|
|
337
|
|
||
Other, net
|
(66
|
)
|
|
133
|
|
||
Net Cash Used for for Investing Activities
|
(3,589
|
)
|
|
(1,489
|
)
|
||
Financing Activities
|
|
|
|
||||
Net change in non-manufacturer floorplan payable
|
(66,856
|
)
|
|
(190,744
|
)
|
||
Repurchase of Senior Convertible Notes
|
(24,983
|
)
|
|
—
|
|
||
Proceeds from long-term debt borrowings
|
—
|
|
|
20,058
|
|
||
Principal payments on long-term debt
|
(1,349
|
)
|
|
(44,468
|
)
|
||
Loan provided to noncontrolling interest holder
|
(2,148
|
)
|
|
—
|
|
||
Other, net
|
(56
|
)
|
|
(573
|
)
|
||
Net Cash Used for Financing Activities
|
(95,392
|
)
|
|
(215,727
|
)
|
||
Effect of Exchange Rate Changes on Cash
|
171
|
|
|
(465
|
)
|
||
Net Change in Cash
|
(38,375
|
)
|
|
(32,112
|
)
|
||
Cash at Beginning of Period
|
89,465
|
|
|
127,528
|
|
||
Cash at End of Period
|
$
|
51,090
|
|
|
$
|
95,416
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
||||
Cash paid (received) during the period
|
|
|
|
||||
Income taxes, net of refunds
|
$
|
(12,915
|
)
|
|
$
|
4,093
|
|
Interest
|
$
|
11,084
|
|
|
$
|
13,401
|
|
Supplemental Disclosures of Noncash Investing and Financing Activities
|
|
|
|
||||
Net property and equipment financed with long-term debt, accounts payable and accrued liabilities
|
$
|
2,381
|
|
|
$
|
612
|
|
Long-term debt extinguished upon sale of property and equipment
|
$
|
—
|
|
|
$
|
3,315
|
|
Net transfer of assets from property and equipment to inventories
|
$
|
2,065
|
|
|
$
|
6,871
|
|
Acquisition of noncontrolling interest through satisfaction of outstanding receivables
|
$
|
4,324
|
|
|
$
|
—
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands, except per share data)
|
|
(in thousands, except per share data)
|
||||||||||||
Basic Weighted-Average Common Shares Outstanding
|
21,205
|
|
|
21,105
|
|
|
21,204
|
|
|
21,075
|
|
||||
Plus: Incremental Shares From Assumed Exercise of Stock Options
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
||||
Diluted Weighted-Average Common Shares Outstanding
|
21,205
|
|
|
21,217
|
|
|
21,204
|
|
|
21,075
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Anti-Dilutive Shares Excluded From Diluted Weighted-Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Stock Options
|
138
|
|
|
112
|
|
|
148
|
|
|
208
|
|
||||
Shares Underlying Senior Convertible Notes (conversion price of $43.17)
|
2,777
|
|
|
3,474
|
|
|
2,777
|
|
|
3,474
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Basic
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.29
|
)
|
Earnings (Loss) per Share - Diluted
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.29
|
)
|
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
New equipment
|
$
|
354,009
|
|
|
$
|
323,393
|
|
Used equipment
|
228,740
|
|
|
267,893
|
|
||
Parts and attachments
|
85,920
|
|
|
87,807
|
|
||
Work in process
|
13,380
|
|
|
10,371
|
|
||
|
$
|
682,049
|
|
|
$
|
689,464
|
|
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Rental fleet equipment
|
$
|
135,325
|
|
|
$
|
137,754
|
|
Machinery and equipment
|
22,927
|
|
|
23,051
|
|
||
Vehicles
|
37,004
|
|
|
36,537
|
|
||
Furniture and fixtures
|
38,481
|
|
|
38,149
|
|
||
Land, buildings, and leasehold improvements
|
63,472
|
|
|
63,460
|
|
||
|
297,209
|
|
|
298,951
|
|
||
Less accumulated depreciation
|
(122,613
|
)
|
|
(115,772
|
)
|
||
|
$
|
174,596
|
|
|
$
|
183,179
|
|
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands except conversion
rate and conversion price)
|
||||||
Principal value
|
$
|
119,900
|
|
|
$
|
150,000
|
|
Unamortized debt discount
|
(9,589
|
)
|
|
(13,946
|
)
|
||
Unamortized debt issuance costs
|
(1,300
|
)
|
|
(1,909
|
)
|
||
Carrying value of Senior Convertible Notes
|
$
|
109,011
|
|
|
$
|
134,145
|
|
|
|
|
|
||||
Carrying value of equity component, net of deferred taxes
|
$
|
14,520
|
|
|
$
|
15,546
|
|
|
|
|
|
||||
Conversion rate (shares of common stock per $1,000 principal amount of notes)
|
23.1626
|
|
|
|
|||
Conversion price (per share of common stock)
|
$
|
43.17
|
|
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
(in thousands)
|
|||||||||||||
Cash Interest Expense
|
|
|
|
|
|
|
|
||||||||
Coupon interest expense
|
$
|
1,124
|
|
|
$
|
1,407
|
|
|
$
|
2,461
|
|
|
$
|
2,813
|
|
Noncash Interest Expense
|
|
|
|
|
|
|
|
||||||||
Amortization of debt discount
|
793
|
|
|
926
|
|
|
1,703
|
|
|
1,820
|
|
||||
Amortization of transaction costs
|
114
|
|
|
138
|
|
|
247
|
|
|
274
|
|
||||
|
$
|
2,031
|
|
|
$
|
2,471
|
|
|
$
|
4,411
|
|
|
$
|
4,907
|
|
|
Notional Amount as of:
|
||||||
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Cash flow hedges:
|
|
|
|
||||
Interest rate swap
|
$
|
100,000
|
|
|
$
|
100,000
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency contracts
|
21,495
|
|
|
13,148
|
|
|
Fair Value as of:
|
||||||
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Asset Derivatives:
|
|
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency contracts
|
$
|
—
|
|
|
$
|
125
|
|
Total Asset Derivatives
|
$
|
—
|
|
|
$
|
125
|
|
|
|
|
|
||||
Liability Derivatives:
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
||||
Cash flow hedges:
|
|
|
|
||||
Interest rate swap
|
$
|
2,600
|
|
|
$
|
2,836
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency contracts
|
389
|
|
|
—
|
|
||
Total Liability Derivatives
|
$
|
2,989
|
|
|
$
|
2,836
|
|
|
|
July 31, 2016
|
|
January 31, 2016
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
—
|
|
|
$
|
125
|
|
Total Financial Assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
$
|
—
|
|
|
$
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swap
|
$
|
—
|
|
|
$
|
2,600
|
|
|
$
|
—
|
|
|
$
|
2,600
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
Foreign currency contracts
|
—
|
|
|
389
|
|
|
—
|
|
|
389
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Financial Liabilities
|
$
|
—
|
|
|
$
|
2,989
|
|
|
$
|
—
|
|
|
$
|
2,989
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
July 31, 2016
|
|
January 31, 2016
|
||||||||||||||||||||
|
Estimated Fair Value
|
|
Carrying Value
|
|
Face Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Face Value
|
||||||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||||||||||
Senior convertible notes
|
$
|
102,000
|
|
|
$
|
109,011
|
|
|
$
|
119,900
|
|
|
$
|
105,000
|
|
|
$
|
134,145
|
|
|
$
|
150,000
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
153,713
|
|
|
$
|
209,449
|
|
|
$
|
332,520
|
|
|
$
|
449,304
|
|
Construction
|
83,132
|
|
|
81,407
|
|
|
161,133
|
|
|
162,578
|
|
||||
International
|
41,488
|
|
|
43,334
|
|
|
69,540
|
|
|
75,504
|
|
||||
Total
|
$
|
278,333
|
|
|
$
|
334,190
|
|
|
$
|
563,193
|
|
|
$
|
687,386
|
|
|
|
|
|
|
|
|
|
||||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
(4,325
|
)
|
|
$
|
(2,440
|
)
|
|
$
|
(8,083
|
)
|
|
$
|
(3,526
|
)
|
Construction
|
626
|
|
|
(937
|
)
|
|
(1,418
|
)
|
|
(4,502
|
)
|
||||
International
|
(175
|
)
|
|
946
|
|
|
(692
|
)
|
|
(3,425
|
)
|
||||
Segment income (loss) before income taxes
|
(3,874
|
)
|
|
(2,431
|
)
|
|
(10,193
|
)
|
|
(11,453
|
)
|
||||
Shared Resources
|
(675
|
)
|
|
1,952
|
|
|
(156
|
)
|
|
2,148
|
|
||||
Total
|
$
|
(4,549
|
)
|
|
$
|
(479
|
)
|
|
$
|
(10,349
|
)
|
|
$
|
(9,305
|
)
|
|
July 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Total Assets
|
|
|
|
||||
Agriculture
|
$
|
515,191
|
|
|
$
|
557,579
|
|
Construction
|
275,630
|
|
|
294,891
|
|
||
International
|
133,994
|
|
|
109,706
|
|
||
Segment assets
|
924,815
|
|
|
962,176
|
|
||
Shared Resources
|
59,991
|
|
|
85,699
|
|
||
Total
|
$
|
984,806
|
|
|
$
|
1,047,875
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Agriculture Segment
|
|
|
|
|
|
|
|
||||||||
Lease termination costs
(a)
|
$
|
32
|
|
|
$
|
(160
|
)
|
|
$
|
(120
|
)
|
|
$
|
91
|
|
Employee severance costs
|
—
|
|
|
29
|
|
|
—
|
|
|
333
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
8
|
|
|
—
|
|
|
93
|
|
||||
|
$
|
32
|
|
|
$
|
(27
|
)
|
|
$
|
(120
|
)
|
|
$
|
613
|
|
Construction Segment
|
|
|
|
|
|
|
|
||||||||
Lease termination costs
(a)
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
$
|
261
|
|
Employee severance costs
|
—
|
|
|
(18
|
)
|
|
21
|
|
|
240
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
(80
|
)
|
|
—
|
|
|
10
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
14
|
|
|
—
|
|
|
68
|
|
||||
|
$
|
(8
|
)
|
|
$
|
(84
|
)
|
|
$
|
13
|
|
|
$
|
579
|
|
Shared Resource Center
|
|
|
|
|
|
|
|
||||||||
Lease termination costs
(a)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Employee severance costs
|
—
|
|
|
—
|
|
|
378
|
|
|
187
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
7
|
|
|
—
|
|
|
69
|
|
||||
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
378
|
|
|
$
|
305
|
|
Total
|
|
|
|
|
|
|
|
||||||||
Lease termination costs
(a)
|
$
|
24
|
|
|
$
|
(160
|
)
|
|
$
|
(128
|
)
|
|
$
|
401
|
|
Employee severance costs
|
—
|
|
|
11
|
|
|
399
|
|
|
760
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
23
|
|
|
—
|
|
|
175
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
22
|
|
|
—
|
|
|
161
|
|
||||
|
$
|
24
|
|
|
$
|
(104
|
)
|
|
$
|
271
|
|
|
$
|
1,497
|
|
|
|
Amount
|
||
|
(in thousands)
|
||
Balance, January 31, 2016
|
$
|
660
|
|
Exit costs incurred and charged to expense
|
|
||
Lease termination costs
|
(128
|
)
|
|
Employee severance costs
|
399
|
|
|
Exit costs paid
|
|
||
Lease termination costs
|
(343
|
)
|
|
Employee severance costs
|
(399
|
)
|
|
Balance, July 31, 2016
|
$
|
189
|
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
U.S.
|
$
|
(4,375
|
)
|
|
$
|
(1,396
|
)
|
|
$
|
(9,657
|
)
|
|
$
|
(5,884
|
)
|
Foreign
|
(174
|
)
|
|
917
|
|
|
(692
|
)
|
|
(3,421
|
)
|
||||
Total
|
$
|
(4,549
|
)
|
|
$
|
(479
|
)
|
|
$
|
(10,349
|
)
|
|
$
|
(9,305
|
)
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
U.S. statutory rate
|
(35.0
|
)%
|
|
(35.0
|
)%
|
|
(35.0
|
)%
|
|
(35.0
|
)%
|
Foreign statutory rates
|
1.7
|
%
|
|
(56.8
|
)%
|
|
1.9
|
%
|
|
8.2
|
%
|
State taxes on income net of federal tax benefit
|
(4.2
|
)%
|
|
(4.2
|
)%
|
|
(4.2
|
)%
|
|
(4.2
|
)%
|
Change in valuation allowance
|
(19.8
|
)%
|
|
(389.1
|
)%
|
|
(4.3
|
)%
|
|
15.4
|
%
|
Tax effect of Ukrainian hryvnia devaluation
(a)
|
17.4
|
%
|
|
352.2
|
%
|
|
3.5
|
%
|
|
(9.1
|
)%
|
All other, net
|
(0.7
|
)%
|
|
(2.6
|
)%
|
|
1.5
|
%
|
|
(3.1
|
)%
|
|
(40.6
|
)%
|
|
(135.5
|
)%
|
|
(36.6
|
)%
|
|
(27.8
|
)%
|
|
•
|
Revenue
decreased
16.7%
for the
second
quarter of fiscal
2017
, as compared to the
second
quarter last year, mainly driven by a decrease in Agriculture same-store sales, which primarily resulted from a decrease in equipment revenue;
|
•
|
Total gross profit margin increased to
19.0%
for the
second
quarter of fiscal
2017
, as compared to
18.6%
for the
second
quarter of fiscal
2016
, primarily caused by a change in gross profit mix to our higher-margin parts and service businesses, but partially offset by lower equipment gross profit margins resulting from the challenging industry conditions;
|
•
|
Floorplan interest expense
decreased
19.8%
in the
second
quarter of fiscal
2017
, as compared to the
second
quarter last year, primarily due to a decrease in our average interest-bearing inventory in the
second
quarter of fiscal
2017
; other interest expense decreased
17.4%
in the
second
quarter of fiscal
2017
, as compared to the
second
quarter last year, due to interest savings resulting from the repurchase of $30.1 million of our Senior Convertible Notes in April 2016;
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(dollars in thousands)
|
|
(dollars in thousands)
|
||||||||||||
Equipment
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
173,301
|
|
|
$
|
221,016
|
|
|
$
|
358,175
|
|
|
$
|
465,999
|
|
Cost of revenue
|
160,906
|
|
|
203,152
|
|
|
331,230
|
|
|
430,185
|
|
||||
Gross profit
|
$
|
12,395
|
|
|
$
|
17,864
|
|
|
$
|
26,945
|
|
|
$
|
35,814
|
|
Gross profit margin
|
7.2
|
%
|
|
8.1
|
%
|
|
7.5
|
%
|
|
7.7
|
%
|
||||
Parts
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
58,336
|
|
|
$
|
62,081
|
|
|
$
|
115,845
|
|
|
$
|
123,601
|
|
Cost of revenue
|
41,118
|
|
|
43,382
|
|
|
81,619
|
|
|
86,953
|
|
||||
Gross profit
|
$
|
17,218
|
|
|
$
|
18,699
|
|
|
$
|
34,226
|
|
|
$
|
36,648
|
|
Gross profit margin
|
29.5
|
%
|
|
30.1
|
%
|
|
29.5
|
%
|
|
29.7
|
%
|
||||
Service
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
31,296
|
|
|
$
|
32,842
|
|
|
$
|
62,288
|
|
|
$
|
65,744
|
|
Cost of revenue
|
12,045
|
|
|
12,327
|
|
|
23,645
|
|
|
23,687
|
|
||||
Gross profit
|
$
|
19,251
|
|
|
$
|
20,515
|
|
|
$
|
38,643
|
|
|
$
|
42,057
|
|
Gross profit margin
|
61.5
|
%
|
|
62.5
|
%
|
|
62.0
|
%
|
|
64.0
|
%
|
||||
Rental and other
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
15,400
|
|
|
$
|
18,251
|
|
|
$
|
26,885
|
|
|
$
|
32,042
|
|
Cost of revenue
|
11,331
|
|
|
13,260
|
|
|
20,218
|
|
|
24,057
|
|
||||
Gross profit
|
$
|
4,069
|
|
|
$
|
4,991
|
|
|
$
|
6,667
|
|
|
$
|
7,985
|
|
Gross profit margin
|
26.4
|
%
|
|
27.3
|
%
|
|
24.8
|
%
|
|
24.9
|
%
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Revenue
|
|
|
|
|
|
|
|
|
|
||
Equipment
|
62.3
|
%
|
|
66.1
|
%
|
|
63.6
|
%
|
|
67.8
|
%
|
Parts
|
21.0
|
%
|
|
18.6
|
%
|
|
20.6
|
%
|
|
18.0
|
%
|
Service
|
11.2
|
%
|
|
9.8
|
%
|
|
11.1
|
%
|
|
9.6
|
%
|
Rental and other
|
5.5
|
%
|
|
5.5
|
%
|
|
4.7
|
%
|
|
4.6
|
%
|
Total Revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Total Cost of Revenue
|
81.0
|
%
|
|
81.4
|
%
|
|
81.1
|
%
|
|
82.2
|
%
|
Gross Profit Margin
|
19.0
|
%
|
|
18.6
|
%
|
|
18.9
|
%
|
|
17.8
|
%
|
Operating Expenses
|
18.5
|
%
|
|
16.6
|
%
|
|
18.8
|
%
|
|
16.4
|
%
|
Impairment and Realignment Costs
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
Income from Operations
|
0.5
|
%
|
|
2.0
|
%
|
|
—
|
%
|
|
1.2
|
%
|
Other Income (Expense)
|
(2.1
|
)%
|
|
(2.1
|
)%
|
|
(1.8
|
)%
|
|
(2.6
|
)%
|
Income (Loss) Before Income Taxes
|
(1.6
|
)%
|
|
(0.1
|
)%
|
|
(1.8
|
)%
|
|
(1.4
|
)%
|
Provision for (Benefit from) Income Taxes
|
(0.6
|
)%
|
|
(0.2
|
)%
|
|
(0.6
|
)%
|
|
(0.4
|
)%
|
Net Income (Loss) Including Noncontrolling Interest
|
(1.0
|
)%
|
|
0.1
|
%
|
|
(1.2
|
)%
|
|
(1.0
|
)%
|
Less: Net Income (Loss) Attributable to Noncontrolling Interest
|
(0.1
|
)%
|
|
—
|
%
|
|
(0.1
|
)%
|
|
(0.1
|
)%
|
Net Income (Loss) Attributable to Titan Machinery Inc.
|
(0.9
|
)%
|
|
—
|
%
|
|
(1.1
|
)%
|
|
(0.9
|
)%
|
|
Three Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Equipment
|
$
|
173,301
|
|
|
$
|
221,016
|
|
|
$
|
(47,715
|
)
|
|
(21.6
|
)%
|
Parts
|
58,336
|
|
|
62,081
|
|
|
(3,745
|
)
|
|
(6.0
|
)%
|
|||
Service
|
31,296
|
|
|
32,842
|
|
|
(1,546
|
)
|
|
(4.7
|
)%
|
|||
Rental and other
|
15,400
|
|
|
18,251
|
|
|
(2,851
|
)
|
|
(15.6
|
)%
|
|||
Total Revenue
|
$
|
278,333
|
|
|
$
|
334,190
|
|
|
$
|
(55,857
|
)
|
|
(16.7
|
)%
|
|
Three Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|||||||
Equipment
|
$
|
12,395
|
|
|
$
|
17,864
|
|
|
$
|
(5,469
|
)
|
|
(30.6
|
)%
|
Parts
|
17,218
|
|
|
18,699
|
|
|
(1,481
|
)
|
|
(7.9
|
)%
|
|||
Service
|
19,251
|
|
|
20,515
|
|
|
(1,264
|
)
|
|
(6.2
|
)%
|
|||
Rental and other
|
4,069
|
|
|
4,991
|
|
|
(922
|
)
|
|
(18.5
|
)%
|
|||
Total Gross Profit
|
$
|
52,933
|
|
|
$
|
62,069
|
|
|
$
|
(9,136
|
)
|
|
(14.7
|
)%
|
Gross Profit Margin
|
|
|
|
|
|
|
|
|||||||
Equipment
|
7.2
|
%
|
|
8.1
|
%
|
|
(0.9
|
)%
|
|
(11.1
|
)%
|
|||
Parts
|
29.5
|
%
|
|
30.1
|
%
|
|
(0.6
|
)%
|
|
(2.0
|
)%
|
|||
Service
|
61.5
|
%
|
|
62.5
|
%
|
|
(1.0
|
)%
|
|
(1.6
|
)%
|
|||
Rental and other
|
26.4
|
%
|
|
27.3
|
%
|
|
(0.9
|
)%
|
|
(3.3
|
)%
|
|||
Total Gross Profit Margin
|
19.0
|
%
|
|
18.6
|
%
|
|
0.4
|
%
|
|
2.2
|
%
|
|||
Gross Profit Mix
|
|
|
|
|
|
|
|
|||||||
Equipment
|
23.4
|
%
|
|
28.8
|
%
|
|
(5.4
|
)%
|
|
(18.8
|
)%
|
|||
Parts
|
32.5
|
%
|
|
30.1
|
%
|
|
2.4
|
%
|
|
8.0
|
%
|
|||
Service
|
36.4
|
%
|
|
33.1
|
%
|
|
3.3
|
%
|
|
10.0
|
%
|
|||
Rental and other
|
7.7
|
%
|
|
8.0
|
%
|
|
(0.3
|
)%
|
|
(3.8
|
)%
|
|||
Total Gross Profit Mix
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Three Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Operating Expenses
|
$
|
51,487
|
|
|
$
|
55,385
|
|
|
$
|
(3,898
|
)
|
|
(7.0
|
)%
|
Operating Expenses as a Percentage of Revenue
|
18.5
|
%
|
|
16.6
|
%
|
|
1.9
|
%
|
|
11.4
|
%
|
|
Three Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Decrease
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Impairment and Realignment Costs
|
$
|
24
|
|
|
$
|
(104
|
)
|
|
$
|
128
|
|
|
123.1
|
%
|
|
Three Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Interest income and other income (expense)
|
$
|
612
|
|
|
$
|
837
|
|
|
$
|
(225
|
)
|
|
(26.9
|
)%
|
Floorplan interest expense
|
(3,806
|
)
|
|
(4,744
|
)
|
|
(938
|
)
|
|
(19.8
|
)%
|
|||
Other interest expense
|
(2,777
|
)
|
|
(3,360
|
)
|
|
(583
|
)
|
|
(17.4
|
)%
|
|
Three Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Increase
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Provision for (Benefit from) Income Taxes
|
$
|
(1,847
|
)
|
|
$
|
(649
|
)
|
|
$
|
1,198
|
|
|
184.6
|
%
|
|
Three Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
153,713
|
|
|
$
|
209,449
|
|
|
$
|
(55,736
|
)
|
|
(26.6
|
)%
|
Construction
|
83,132
|
|
|
81,407
|
|
|
1,725
|
|
|
2.1
|
%
|
|||
International
|
41,488
|
|
|
43,334
|
|
|
(1,846
|
)
|
|
(4.3
|
)%
|
|||
Total
|
$
|
278,333
|
|
|
$
|
334,190
|
|
|
$
|
(55,857
|
)
|
|
(16.7
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
(4,325
|
)
|
|
$
|
(2,440
|
)
|
|
$
|
(1,885
|
)
|
|
(77.3
|
)%
|
Construction
|
626
|
|
|
(937
|
)
|
|
1,563
|
|
|
166.8
|
%
|
|||
International
|
(175
|
)
|
|
946
|
|
|
(1,121
|
)
|
|
(118.5
|
)%
|
|||
Segment income (loss) before income taxes
|
(3,874
|
)
|
|
(2,431
|
)
|
|
(1,443
|
)
|
|
(59.4
|
)%
|
|||
Shared Resources
|
(675
|
)
|
|
1,952
|
|
|
(2,627
|
)
|
|
(134.6
|
)%
|
|||
Total
|
$
|
(4,549
|
)
|
|
$
|
(479
|
)
|
|
$
|
(4,070
|
)
|
|
(849.7
|
)%
|
|
Six Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Decrease
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Equipment
|
$
|
358,175
|
|
|
$
|
465,999
|
|
|
$
|
(107,824
|
)
|
|
(23.1
|
)%
|
Parts
|
115,845
|
|
|
123,601
|
|
|
(7,756
|
)
|
|
(6.3
|
)%
|
|||
Service
|
62,288
|
|
|
65,744
|
|
|
(3,456
|
)
|
|
(5.3
|
)%
|
|||
Rental and other
|
26,885
|
|
|
32,042
|
|
|
(5,157
|
)
|
|
(16.1
|
)%
|
|||
Total Revenue
|
$
|
563,193
|
|
|
$
|
687,386
|
|
|
$
|
(124,193
|
)
|
|
(18.1
|
)%
|
|
Six Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|||||||
Equipment
|
$
|
26,945
|
|
|
$
|
35,814
|
|
|
$
|
(8,869
|
)
|
|
(24.8
|
)%
|
Parts
|
34,226
|
|
|
36,648
|
|
|
(2,422
|
)
|
|
(6.6
|
)%
|
|||
Service
|
38,643
|
|
|
42,057
|
|
|
(3,414
|
)
|
|
(8.1
|
)%
|
|||
Rental and other
|
6,667
|
|
|
7,985
|
|
|
(1,318
|
)
|
|
(16.5
|
)%
|
|||
Total Gross Profit
|
$
|
106,481
|
|
|
$
|
122,504
|
|
|
$
|
(16,023
|
)
|
|
(13.1
|
)%
|
Gross Profit Margin
|
|
|
|
|
|
|
|
|||||||
Equipment
|
7.5
|
%
|
|
7.7
|
%
|
|
(0.2
|
)%
|
|
(2.6
|
)%
|
|||
Parts
|
29.5
|
%
|
|
29.7
|
%
|
|
(0.2
|
)%
|
|
(0.7
|
)%
|
|||
Service
|
62.0
|
%
|
|
64.0
|
%
|
|
(2.0
|
)%
|
|
(3.1
|
)%
|
|||
Rental and other
|
24.8
|
%
|
|
24.9
|
%
|
|
(0.1
|
)%
|
|
(0.4
|
)%
|
|||
Total Gross Profit Margin
|
18.9
|
%
|
|
17.8
|
%
|
|
1.1
|
%
|
|
6.2
|
%
|
|||
Gross Profit Mix
|
|
|
|
|
|
|
|
|||||||
Equipment
|
25.3
|
%
|
|
29.2
|
%
|
|
(3.9
|
)%
|
|
(13.4
|
)%
|
|||
Parts
|
32.1
|
%
|
|
29.9
|
%
|
|
2.2
|
%
|
|
7.4
|
%
|
|||
Service
|
36.3
|
%
|
|
34.3
|
%
|
|
2.0
|
%
|
|
5.8
|
%
|
|||
Rental and other
|
6.3
|
%
|
|
6.6
|
%
|
|
(0.3
|
)%
|
|
(4.5
|
)%
|
|||
Total Gross Profit Mix
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Six Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Operating Expenses
|
$
|
105,989
|
|
|
$
|
112,495
|
|
|
$
|
(6,506
|
)
|
|
(5.8
|
)%
|
Operating Expenses as a Percentage of Revenue
|
18.8
|
%
|
|
16.4
|
%
|
|
2.4
|
%
|
|
14.6
|
%
|
|
Six Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Decrease
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Impairment and Realignment Costs
|
$
|
271
|
|
|
$
|
1,497
|
|
|
$
|
(1,226
|
)
|
|
(81.9
|
)%
|
|
Six Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Interest income and other income (expense)
|
$
|
749
|
|
|
$
|
(1,287
|
)
|
|
$
|
2,036
|
|
|
158.2
|
%
|
Floorplan interest expense
|
(7,549
|
)
|
|
(9,343
|
)
|
|
(1,794
|
)
|
|
(19.2
|
)%
|
|||
Other interest expense
|
(3,770
|
)
|
|
(7,187
|
)
|
|
(3,417
|
)
|
|
(47.5
|
)%
|
|
Six Months Ended July 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Increase
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Provision for (Benefit from) Income Taxes
|
$
|
(3,789
|
)
|
|
$
|
(2,585
|
)
|
|
$
|
1,204
|
|
|
46.6
|
%
|
|
Six Months Ended July 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
332,520
|
|
|
$
|
449,304
|
|
|
$
|
(116,784
|
)
|
|
(26.0
|
)%
|
Construction
|
161,133
|
|
|
162,578
|
|
|
(1,445
|
)
|
|
(0.9
|
)%
|
|||
International
|
69,540
|
|
|
75,504
|
|
|
(5,964
|
)
|
|
(7.9
|
)%
|
|||
Total
|
$
|
563,193
|
|
|
$
|
687,386
|
|
|
$
|
(124,193
|
)
|
|
(18.1
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
(8,083
|
)
|
|
$
|
(3,526
|
)
|
|
$
|
(4,557
|
)
|
|
(129.2
|
)%
|
Construction
|
(1,418
|
)
|
|
(4,502
|
)
|
|
3,084
|
|
|
68.5
|
%
|
|||
International
|
(692
|
)
|
|
(3,425
|
)
|
|
2,733
|
|
|
79.8
|
%
|
|||
Segment income (loss) before income taxes
|
(10,193
|
)
|
|
(11,453
|
)
|
|
1,260
|
|
|
11.0
|
%
|
|||
Shared Resources
|
(156
|
)
|
|
2,148
|
|
|
(2,304
|
)
|
|
(107.3
|
)%
|
|||
Total
|
$
|
(10,349
|
)
|
|
$
|
(9,305
|
)
|
|
$
|
(1,044
|
)
|
|
(11.2
|
)%
|
|
Three Months Ended July 31,
|
|
Six Months Ended July 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(dollars in thousands, except per share data)
|
||||||||||||||
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders
|
$
|
(2,469
|
)
|
|
$
|
6
|
|
|
$
|
(6,087
|
)
|
|
$
|
(6,186
|
)
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
||||||||
Gain on Repurchase of Senior Convertible Notes
|
—
|
|
|
—
|
|
|
(2,062
|
)
|
|
—
|
|
||||
Debt Issuance Cost Write-Off
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
||||
Realignment / Store Closing Costs
|
24
|
|
|
(102
|
)
|
|
266
|
|
|
1,470
|
|
||||
Ukraine Remeasurement
|
—
|
|
|
62
|
|
|
191
|
|
|
2,066
|
|
||||
Total Pre-Tax Income (Loss) Non-GAAP Adjustments
|
24
|
|
|
(40
|
)
|
|
(1,605
|
)
|
|
4,066
|
|
||||
Less: Tax Effect of Non-GAAP Adjustments
(1)
|
9
|
|
|
(40
|
)
|
|
(719
|
)
|
|
800
|
|
||||
Total Non-GAAP Adjustments
|
15
|
|
|
—
|
|
|
(886
|
)
|
|
3,266
|
|
||||
Adjusted Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders
|
$
|
(2,454
|
)
|
|
$
|
6
|
|
|
$
|
(6,973
|
)
|
|
$
|
(2,920
|
)
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Diluted
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Diluted
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.29
|
)
|
|
$
|
(0.29
|
)
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
||||||||
Gain on Repurchase of Senior Convertible Notes
|
—
|
|
|
—
|
|
|
(0.10
|
)
|
|
—
|
|
||||
Debt Issuance Cost Write-Off
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
||||
Realignment / Store Closing Costs
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.07
|
|
||||
Ukraine Remeasurement
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.10
|
|
||||
Total Pre-Tax Income (Loss) Non-GAAP Adjustments
|
—
|
|
|
—
|
|
|
(0.08
|
)
|
|
0.19
|
|
||||
Less: Tax Effect of Non-GAAP Adjustments
(1)
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
0.04
|
|
||||
Total Non-GAAP Adjustments
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
0.15
|
|
||||
Adjusted Earnings (Loss) per Share - Diluted
|
$
|
(0.12
|
)
|
|
$
|
—
|
|
|
$
|
(0.33
|
)
|
|
$
|
(0.14
|
)
|
|
Net Cash Provided by Operating Activities
|
|
Net Cash Used for Financing Activities
|
||||||||||||
|
Six Months Ended July 31, 2016
|
|
Six Months Ended July 31, 2015
|
|
Six Months Ended July 31, 2016
|
|
Six Months Ended July 31, 2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Cash Flow, As Reported
|
$
|
60,435
|
|
|
$
|
185,569
|
|
|
$
|
(95,392
|
)
|
|
$
|
(215,727
|
)
|
Net Change in Non-Manufacturer Floorplan Payable
|
(66,856
|
)
|
|
(190,744
|
)
|
|
66,856
|
|
|
190,744
|
|
||||
Adjustment for Constant Equity in Equipment Inventory
|
7,520
|
|
|
9,844
|
|
|
—
|
|
|
—
|
|
||||
Adjusted Cash Flow
|
$
|
1,099
|
|
|
$
|
4,669
|
|
|
$
|
(28,536
|
)
|
|
$
|
(24,983
|
)
|
Dated:
|
September 1, 2016
|
|
|
|
|
TITAN MACHINERY INC.
|
|
|
|
|
|
|
|
|
|
|
|
By
|
/s/ Mark Kalvoda
|
|
|
|
Mark Kalvoda
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
No.
|
|
Description
|
|
|
|
10.1
|
|
Amendment No. 4 to the Amended and Restated Wholesale Financing Plan, dated as of August 31, 2016, by and among the registrant and DLL Finance LLC (f/k/a Agricredit Acceptance LLC).
|
|
|
|
10.2
|
|
Amendment dated September 1, 2016 to the Amended and Restated Employment Agreement, dated September 4, 2015 between Mark Kalvoda and the registrant.+
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
101
|
|
Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended July 31, 2016, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows, and (v) the Notes to the Consolidated Financial Statements.
|
|
1 Year Titan Machinery Chart |
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