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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.40 | 1.78% | 22.82 | 22.56 | 27.67 | 23.13 | 22.4575 | 22.80 | 116,638 | 05:00:03 |
|
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 October 31, 2016 and January 31, 2016
|
|
|
Consolidated Statements of Operations for the three and nine months ended October 31, 2016 and 2015
|
|
|
Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended October 31, 2016 and 2015
|
|
|
Consolidated Statements of Stockholders' Equity for the nine months ended October 31, 2016 and 2015
|
|
|
Consolidated Statements of Cash Flows for the nine months ended October 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
|
|
|
October 31, 2016
|
|
January 31, 2016
|
||||
Assets
|
|
|
|
|
|||
Current Assets
|
|
|
|
||||
Cash
|
$
|
52,431
|
|
|
$
|
89,465
|
|
Receivables (net of allowance of $3,733 and $3,591 as of October 31, 2016 and January 31, 2016, respectively)
|
71,803
|
|
|
56,552
|
|
||
Inventories
|
607,629
|
|
|
689,464
|
|
||
Prepaid expenses and other
|
7,491
|
|
|
9,753
|
|
||
Income taxes receivable
|
4,559
|
|
|
13,011
|
|
||
Total current assets
|
743,913
|
|
|
858,245
|
|
||
Noncurrent Assets
|
|
|
|
||||
Intangible assets, net of accumulated amortization
|
5,026
|
|
|
5,134
|
|
||
Property and equipment, net of accumulated depreciation
|
169,964
|
|
|
183,179
|
|
||
Other
|
1,394
|
|
|
1,317
|
|
||
Total noncurrent assets
|
176,384
|
|
|
189,630
|
|
||
Total Assets
|
$
|
920,297
|
|
|
$
|
1,047,875
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
22,888
|
|
|
$
|
16,863
|
|
Floorplan payable
|
372,055
|
|
|
444,780
|
|
||
Current maturities of long-term debt
|
15,464
|
|
|
1,557
|
|
||
Customer deposits
|
16,215
|
|
|
31,159
|
|
||
Accrued expenses
|
35,403
|
|
|
28,914
|
|
||
Income taxes payable
|
—
|
|
|
152
|
|
||
Total current liabilities
|
462,025
|
|
|
523,425
|
|
||
Long-Term Liabilities
|
|
|
|
||||
Senior convertible notes
|
87,754
|
|
|
134,145
|
|
||
Long-term debt, less current maturities
|
25,427
|
|
|
38,409
|
|
||
Deferred income taxes
|
10,531
|
|
|
11,135
|
|
||
Other long-term liabilities
|
2,217
|
|
|
2,412
|
|
||
Total long-term liabilities
|
125,929
|
|
|
186,101
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
||
Stockholders' Equity
|
|
|
|
||||
Common stock, par value $.00001 per share, 45,000 shares authorized; 21,819 shares issued and outstanding at October 31, 2016; 21,604 shares issued and outstanding at January 31, 2016
|
—
|
|
|
—
|
|
||
Additional paid-in-capital
|
242,019
|
|
|
242,491
|
|
||
Retained earnings
|
93,586
|
|
|
99,526
|
|
||
Accumulated other comprehensive loss
|
(3,262
|
)
|
|
(4,461
|
)
|
||
Total Titan Machinery Inc. stockholders' equity
|
332,343
|
|
|
337,556
|
|
||
Noncontrolling interest
|
—
|
|
|
793
|
|
||
Total stockholders' equity
|
332,343
|
|
|
338,349
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
920,297
|
|
|
$
|
1,047,875
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Equipment
|
$
|
212,194
|
|
|
$
|
215,692
|
|
|
$
|
570,369
|
|
|
$
|
681,691
|
|
Parts
|
69,261
|
|
|
73,838
|
|
|
185,106
|
|
|
197,439
|
|
||||
Service
|
33,777
|
|
|
34,116
|
|
|
96,065
|
|
|
99,860
|
|
||||
Rental and other
|
17,034
|
|
|
21,329
|
|
|
43,919
|
|
|
53,371
|
|
||||
Total Revenue
|
332,266
|
|
|
344,975
|
|
|
895,459
|
|
|
1,032,361
|
|
||||
Cost of Revenue
|
|
|
|
|
|
|
|
||||||||
Equipment
|
201,140
|
|
|
198,095
|
|
|
532,370
|
|
|
628,280
|
|
||||
Parts
|
48,387
|
|
|
51,673
|
|
|
130,006
|
|
|
138,626
|
|
||||
Service
|
11,828
|
|
|
12,449
|
|
|
35,473
|
|
|
36,136
|
|
||||
Rental and other
|
12,485
|
|
|
15,617
|
|
|
32,703
|
|
|
39,674
|
|
||||
Total Cost of Revenue
|
273,840
|
|
|
277,834
|
|
|
730,552
|
|
|
842,716
|
|
||||
Gross Profit
|
58,426
|
|
|
67,141
|
|
|
164,907
|
|
|
189,645
|
|
||||
Operating Expenses
|
53,143
|
|
|
53,484
|
|
|
159,132
|
|
|
165,979
|
|
||||
Impairment and Realignment Costs
|
275
|
|
|
22
|
|
|
546
|
|
|
1,519
|
|
||||
Income from Operations
|
5,008
|
|
|
13,635
|
|
|
5,229
|
|
|
22,147
|
|
||||
Other Income (Expense)
|
|
|
|
|
|
|
|
||||||||
Interest income and other income (expense)
|
502
|
|
|
722
|
|
|
1,251
|
|
|
(565
|
)
|
||||
Floorplan interest expense
|
(3,294
|
)
|
|
(4,602
|
)
|
|
(10,843
|
)
|
|
(13,945
|
)
|
||||
Other interest expense
|
(2,160
|
)
|
|
(4,041
|
)
|
|
(5,930
|
)
|
|
(11,228
|
)
|
||||
Income (Loss) Before Income Taxes
|
56
|
|
|
5,714
|
|
|
(10,293
|
)
|
|
(3,591
|
)
|
||||
Provision for (Benefit from) Income Taxes
|
(208
|
)
|
|
2,231
|
|
|
(3,997
|
)
|
|
(354
|
)
|
||||
Net Income (Loss) Including Noncontrolling Interest
|
$
|
264
|
|
|
$
|
3,483
|
|
|
$
|
(6,296
|
)
|
|
$
|
(3,237
|
)
|
Less: Net Income (Loss) Attributable to Noncontrolling Interest
|
—
|
|
|
27
|
|
|
(356
|
)
|
|
(395
|
)
|
||||
Net Income (Loss) Attributable to Titan Machinery Inc.
|
$
|
264
|
|
|
$
|
3,456
|
|
|
$
|
(5,940
|
)
|
|
$
|
(2,842
|
)
|
Net (Income) Loss Allocated to Participating Securities - Note 1
|
(8
|
)
|
|
(72
|
)
|
|
120
|
|
|
53
|
|
||||
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders
|
$
|
256
|
|
|
$
|
3,384
|
|
|
$
|
(5,820
|
)
|
|
$
|
(2,789
|
)
|
Earnings (Loss) per Share - Note 1
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Basic
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.13
|
)
|
Earnings (Loss) per Share - Diluted
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.13
|
)
|
Weighted Average Common Shares - Basic
|
21,218
|
|
|
21,129
|
|
|
21,208
|
|
|
21,093
|
|
||||
Weighted Average Common Shares - Diluted
|
21,269
|
|
|
21,218
|
|
|
21,208
|
|
|
21,093
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net Income (Loss) Including Noncontrolling Interest
|
$
|
264
|
|
|
$
|
3,483
|
|
|
$
|
(6,296
|
)
|
|
$
|
(3,237
|
)
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
626
|
|
|
(100
|
)
|
|
945
|
|
|
(3,829
|
)
|
||||
Unrealized gain on net investment hedge derivative instruments, net of tax expense of $5 for the three months ended October 31, 2015, and $133 for the nine months ended October 31, 2015
|
—
|
|
|
7
|
|
|
—
|
|
|
200
|
|
||||
Unrealized gain (loss) on interest rate swap cash flow hedge derivative instrument, net of tax expense (benefit) of $91 and ($321) for the three months ended October 31, 2016 and 2015, respectively, and ($109) and ($290) for the nine months ended October 31, 2016 and 2015, respectively
|
137
|
|
|
(482
|
)
|
|
(163
|
)
|
|
(436
|
)
|
||||
Reclassification of loss on interest rate swap cash flow hedge derivative instruments included in net income (loss), net of tax benefit of $133 and $213 for the three months ended October 31, 2016 and 2015, respectively, and $426 and $532 for the nine months ended October 31, 2016 and 2015, respectively
|
200
|
|
|
320
|
|
|
638
|
|
|
798
|
|
||||
Reclassification of loss on foreign currency contract cash flow hedge derivative instruments included in net income (loss), net of tax benefit of $2 for the three months ended October 31, 2015 and $7 for the nine months ended October 31, 2015
|
—
|
|
|
2
|
|
|
—
|
|
|
10
|
|
||||
Total Other Comprehensive Income (Loss)
|
963
|
|
|
(253
|
)
|
|
1,420
|
|
|
(3,257
|
)
|
||||
Comprehensive Income (Loss)
|
1,227
|
|
|
3,230
|
|
|
(4,876
|
)
|
|
(6,494
|
)
|
||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interest
|
—
|
|
|
(13
|
)
|
|
(333
|
)
|
|
(1,046
|
)
|
||||
Comprehensive Income (Loss) Attributable To Titan Machinery Inc.
|
$
|
1,227
|
|
|
$
|
3,243
|
|
|
$
|
(4,543
|
)
|
|
$
|
(5,448
|
)
|
|
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
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|
170
|
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
1,799
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,799
|
|
|
—
|
|
|
1,799
|
|
|||||||||||
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,842
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,842
|
)
|
|
(395
|
)
|
|
(3,237
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,178
|
)
|
|
200
|
|
|
362
|
|
|
10
|
|
|
(2,606
|
)
|
|
(2,606
|
)
|
|
(651
|
)
|
|
(3,257
|
)
|
|||||||||||
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,448
|
)
|
|
(1,046
|
)
|
|
(6,494
|
)
|
|||||||||||
Balance, October 31, 2015
|
21,576
|
|
|
$
|
—
|
|
|
$
|
242,149
|
|
|
$
|
134,576
|
|
|
$
|
(4,810
|
)
|
|
$
|
2,710
|
|
|
$
|
(1,578
|
)
|
|
$
|
(27
|
)
|
|
$
|
(3,705
|
)
|
|
$
|
373,020
|
|
|
$
|
814
|
|
|
$
|
373,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
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
|
215
|
|
|
—
|
|
|
(357
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(357
|
)
|
|
—
|
|
|
(357
|
)
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
1,805
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,805
|
|
|
—
|
|
|
1,805
|
|
|||||||||||
Repurchase of Senior Convertible Notes
|
—
|
|
|
—
|
|
|
1,746
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,746
|
|
|
—
|
|
|
1,746
|
|
|||||||||||
Acquisition of non-controlling interest
|
—
|
|
|
—
|
|
|
(3,666
|
)
|
|
—
|
|
|
(198
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
|
(3,864
|
)
|
|
(460
|
)
|
|
(4,324
|
)
|
|||||||||||
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,940
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,940
|
)
|
|
(356
|
)
|
|
(6,296
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
922
|
|
|
—
|
|
|
475
|
|
|
—
|
|
|
1,397
|
|
|
1,397
|
|
|
23
|
|
|
1,420
|
|
|||||||||||
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,543
|
)
|
|
(333
|
)
|
|
(4,876
|
)
|
|||||||||||
Balance, October 31, 2016
|
21,819
|
|
|
$
|
—
|
|
|
$
|
242,019
|
|
|
$
|
93,586
|
|
|
$
|
(4,776
|
)
|
|
$
|
2,711
|
|
|
$
|
(1,197
|
)
|
|
$
|
—
|
|
|
$
|
(3,262
|
)
|
|
$
|
332,343
|
|
|
$
|
—
|
|
|
$
|
332,343
|
|
|
Nine Months Ended October 31,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss) including noncontrolling interest
|
$
|
(6,296
|
)
|
|
$
|
(3,237
|
)
|
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by operating activities
|
|
|
|
||||
Depreciation and amortization
|
19,896
|
|
|
21,588
|
|
||
Impairment
|
275
|
|
|
193
|
|
||
Deferred income taxes
|
825
|
|
|
474
|
|
||
Stock-based compensation expense
|
1,805
|
|
|
1,799
|
|
||
Noncash interest expense
|
4,305
|
|
|
5,286
|
|
||
Unrealized foreign currency (gain) loss on loans to international subsidiaries
|
(44
|
)
|
|
778
|
|
||
Gain on repurchase of Senior Convertible Notes
|
(3,130
|
)
|
|
—
|
|
||
Other, net
|
(980
|
)
|
|
(649
|
)
|
||
Changes in assets and liabilities
|
|
|
|
||||
Receivables, prepaid expenses and other assets
|
(18,070
|
)
|
|
9,828
|
|
||
Inventories
|
91,222
|
|
|
72,437
|
|
||
Manufacturer floorplan payable
|
(20,821
|
)
|
|
124,305
|
|
||
Accounts payable, customer deposits, accrued expenses and other long-term liabilities
|
(2,546
|
)
|
|
(27,845
|
)
|
||
Income taxes
|
7,957
|
|
|
(6,196
|
)
|
||
Net Cash Provided by Operating Activities
|
74,398
|
|
|
198,761
|
|
||
Investing Activities
|
|
|
|
||||
Rental fleet purchases
|
(3,094
|
)
|
|
(292
|
)
|
||
Property and equipment purchases (excluding rental fleet)
|
(7,121
|
)
|
|
(5,713
|
)
|
||
Proceeds from sale of property and equipment
|
2,285
|
|
|
5,135
|
|
||
Proceeds upon settlement of net investment hedge derivative instruments
|
—
|
|
|
337
|
|
||
Payments upon settlement of net investment hedge derivative instruments
|
—
|
|
|
(23
|
)
|
||
Proceeds from insurance recoveries
|
1,431
|
|
|
—
|
|
||
Other, net
|
(517
|
)
|
|
196
|
|
||
Net Cash Used for Investing Activities
|
(7,016
|
)
|
|
(360
|
)
|
||
Financing Activities
|
|
|
|
||||
Net change in non-manufacturer floorplan payable
|
(54,478
|
)
|
|
(201,320
|
)
|
||
Repurchase of Senior Convertible Notes
|
(46,013
|
)
|
|
—
|
|
||
Proceeds from long-term debt borrowings
|
—
|
|
|
59,088
|
|
||
Principal payments on long-term debt
|
(1,935
|
)
|
|
(101,465
|
)
|
||
Payment of debt issuance costs
|
(31
|
)
|
|
(3,381
|
)
|
||
Loan provided to non-controlling interest holder
|
(2,148
|
)
|
|
—
|
|
||
Other, net
|
(33
|
)
|
|
143
|
|
||
Net Cash Used for Financing Activities
|
(104,638
|
)
|
|
(246,935
|
)
|
||
Effect of Exchange Rate Changes on Cash
|
222
|
|
|
(585
|
)
|
||
Net Change in Cash
|
(37,034
|
)
|
|
(49,119
|
)
|
||
Cash at Beginning of Period
|
89,465
|
|
|
127,528
|
|
||
Cash at End of Period
|
$
|
52,431
|
|
|
$
|
78,409
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
||||
Cash paid (received) during the period
|
|
|
|
||||
Income taxes, net of refunds
|
$
|
(12,942
|
)
|
|
$
|
5,283
|
|
Interest
|
$
|
15,544
|
|
|
$
|
18,492
|
|
Supplemental Disclosures of Noncash Investing and Financing Activities
|
|
|
|
||||
Net property and equipment financed with long-term debt, accounts payable and accrued liabilities
|
$
|
2,818
|
|
|
$
|
747
|
|
Long-term debt extinguished upon sale of property and equipment
|
$
|
—
|
|
|
$
|
3,315
|
|
Net transfer of assets from property and equipment to inventories
|
$
|
(4,411
|
)
|
|
$
|
(5,743
|
)
|
Acquisition of non-controlling interest through satisfaction of outstanding receivables
|
$
|
4,324
|
|
|
$
|
—
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands, except per share data)
|
|
(in thousands, except per share data)
|
||||||||||||
Basic Weighted-Average Common Shares Outstanding
|
21,218
|
|
|
21,129
|
|
|
21,208
|
|
|
21,093
|
|
||||
Plus: Incremental Shares From Assumed Exercise of Stock Options
|
51
|
|
|
89
|
|
|
—
|
|
|
—
|
|
||||
Diluted Weighted-Average Common Shares Outstanding
|
21,269
|
|
|
21,218
|
|
|
21,208
|
|
|
21,093
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Anti-Dilutive Shares Excluded From Diluted Weighted-Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
||||||||
Stock Options
|
141,000
|
|
|
89,000
|
|
|
146,000
|
|
|
191,000
|
|
||||
Shares Underlying Senior Convertible Notes (conversion price of $43.17)
|
2,217
|
|
|
3,474
|
|
|
2,217
|
|
|
3,474
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Basic
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.13
|
)
|
Earnings (Loss) per Share - Diluted
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.13
|
)
|
|
October 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
New equipment
|
$
|
331,847
|
|
|
$
|
323,393
|
|
Used equipment
|
182,039
|
|
|
267,893
|
|
||
Parts and attachments
|
81,265
|
|
|
87,807
|
|
||
Work in process
|
12,478
|
|
|
10,371
|
|
||
|
$
|
607,629
|
|
|
$
|
689,464
|
|
|
October 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Rental fleet equipment
|
$
|
131,102
|
|
|
$
|
137,754
|
|
Machinery and equipment
|
22,697
|
|
|
23,051
|
|
||
Vehicles
|
37,397
|
|
|
36,537
|
|
||
Furniture and fixtures
|
39,538
|
|
|
38,149
|
|
||
Land, buildings, and leasehold improvements
|
64,772
|
|
|
63,460
|
|
||
|
295,506
|
|
|
298,951
|
|
||
Less accumulated depreciation
|
(125,542
|
)
|
|
(115,772
|
)
|
||
|
$
|
169,964
|
|
|
$
|
183,179
|
|
|
October 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands except conversion
rate and conversion price)
|
||||||
Principal value
|
$
|
95,725
|
|
|
$
|
150,000
|
|
Unamortized debt discount
|
(7,024
|
)
|
|
(13,946
|
)
|
||
Unamortized debt issuance costs
|
(947
|
)
|
|
(1,909
|
)
|
||
Carrying value of Senior Convertible Notes
|
$
|
87,754
|
|
|
$
|
134,145
|
|
|
|
|
|
||||
Carrying value of equity component, net of deferred taxes
|
$
|
13,800
|
|
|
$
|
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 October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
(in thousands)
|
|||||||||||||
Cash Interest Expense
|
|
|
|
|
|
|
|
||||||||
Coupon interest expense
|
$
|
996
|
|
|
$
|
1,406
|
|
|
$
|
3,457
|
|
|
$
|
4,219
|
|
Noncash Interest Expense
|
|
|
|
|
|
|
|
||||||||
Amortization of debt discount
|
703
|
|
|
925
|
|
|
2,406
|
|
|
2,745
|
|
||||
Amortization of transaction costs
|
100
|
|
|
138
|
|
|
347
|
|
|
412
|
|
||||
|
$
|
1,799
|
|
|
$
|
2,469
|
|
|
$
|
6,210
|
|
|
$
|
7,376
|
|
|
Notional Amount as of:
|
||||||
|
October 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
|
15,844
|
|
|
13,148
|
|
|
Fair Value as of:
|
||||||
|
October 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
|
$
|
2,012
|
|
|
$
|
2,836
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency contracts
|
121
|
|
|
—
|
|
||
Total Liability Derivatives
|
$
|
2,133
|
|
|
$
|
2,836
|
|
|
|
October 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
|
$
|
—
|
|
|
$
|
2,012
|
|
|
$
|
—
|
|
|
$
|
2,012
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
Foreign currency contracts
|
—
|
|
|
121
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Financial Liabilities
|
$
|
—
|
|
|
$
|
2,133
|
|
|
$
|
—
|
|
|
$
|
2,133
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
$
|
—
|
|
|
$
|
2,836
|
|
|
October 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
|
$
|
85,000
|
|
|
$
|
87,754
|
|
|
$
|
95,725
|
|
|
$
|
105,000
|
|
|
$
|
134,145
|
|
|
$
|
150,000
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
205,540
|
|
|
$
|
211,302
|
|
|
$
|
538,060
|
|
|
$
|
660,606
|
|
Construction
|
80,789
|
|
|
87,023
|
|
|
241,922
|
|
|
249,601
|
|
||||
International
|
45,937
|
|
|
46,650
|
|
|
115,477
|
|
|
122,154
|
|
||||
Total
|
$
|
332,266
|
|
|
$
|
344,975
|
|
|
$
|
895,459
|
|
|
$
|
1,032,361
|
|
|
|
|
|
|
|
|
|
||||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
(1,798
|
)
|
|
$
|
4,219
|
|
|
$
|
(9,881
|
)
|
|
$
|
693
|
|
Construction
|
(105
|
)
|
|
1,413
|
|
|
(1,523
|
)
|
|
(3,089
|
)
|
||||
International
|
604
|
|
|
351
|
|
|
(88
|
)
|
|
(3,074
|
)
|
||||
Segment income (loss) before income taxes
|
(1,299
|
)
|
|
5,983
|
|
|
(11,492
|
)
|
|
(5,470
|
)
|
||||
Shared Resources
|
1,355
|
|
|
(269
|
)
|
|
1,199
|
|
|
1,879
|
|
||||
Total
|
$
|
56
|
|
|
$
|
5,714
|
|
|
$
|
(10,293
|
)
|
|
$
|
(3,591
|
)
|
|
October 31, 2016
|
|
January 31, 2016
|
||||
|
(in thousands)
|
||||||
Total Assets
|
|
|
|
||||
Agriculture
|
$
|
475,418
|
|
|
$
|
557,579
|
|
Construction
|
264,393
|
|
|
294,891
|
|
||
International
|
127,703
|
|
|
109,706
|
|
||
Segment assets
|
867,514
|
|
|
962,176
|
|
||
Shared Resources
|
52,783
|
|
|
85,699
|
|
||
Total
|
$
|
920,297
|
|
|
$
|
1,047,875
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Agriculture Segment
|
|
|
|
|
|
|
|
||||||||
Lease termination costs (a)
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
(120
|
)
|
|
$
|
223
|
|
Employee severance costs
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
225
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
34
|
|
||||
|
$
|
—
|
|
|
$
|
(87
|
)
|
|
$
|
(120
|
)
|
|
$
|
492
|
|
Construction Segment
|
|
|
|
|
|
|
|
||||||||
Lease termination costs (a)
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
(8
|
)
|
|
$
|
137
|
|
Employee severance costs
|
—
|
|
|
29
|
|
|
21
|
|
|
362
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
10
|
|
|
—
|
|
|
106
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
88
|
|
||||
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
13
|
|
|
$
|
693
|
|
Shared Resource Center
|
|
|
|
|
|
|
|
||||||||
Lease termination costs (a)
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
37
|
|
Employee severance costs
|
—
|
|
|
—
|
|
|
378
|
|
|
187
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
41
|
|
|
—
|
|
|
110
|
|
||||
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
378
|
|
|
$
|
334
|
|
Total
|
|
|
|
|
|
|
|
||||||||
Lease termination costs (a)
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
(128
|
)
|
|
$
|
397
|
|
Employee severance costs
|
—
|
|
|
14
|
|
|
399
|
|
|
774
|
|
||||
Impairment of fixed assets, net of gains on asset disposition
|
—
|
|
|
51
|
|
|
—
|
|
|
226
|
|
||||
Asset relocation and other closing costs
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
122
|
|
||||
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
271
|
|
|
$
|
1,519
|
|
|
|
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
|
(430
|
)
|
|
Employee severance costs
|
(399
|
)
|
|
Balance, October 31, 2016
|
$
|
102
|
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
U.S.
|
$
|
(547
|
)
|
|
$
|
5,363
|
|
|
$
|
(10,204
|
)
|
|
$
|
(521
|
)
|
Foreign
|
603
|
|
|
351
|
|
|
(89
|
)
|
|
(3,070
|
)
|
||||
Total
|
$
|
56
|
|
|
$
|
5,714
|
|
|
$
|
(10,293
|
)
|
|
$
|
(3,591
|
)
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
U.S. statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
(35.0
|
)%
|
|
(35.0
|
)%
|
Foreign statutory rates
|
(406.2
|
)%
|
|
(0.2
|
)%
|
|
1.2
|
%
|
|
22.4
|
%
|
State taxes on income net of federal tax benefit
|
4.2
|
%
|
|
4.2
|
%
|
|
(4.2
|
)%
|
|
(4.2
|
)%
|
Change in valuation allowance
|
(221.1
|
)%
|
|
(11.1
|
)%
|
|
(4.4
|
)%
|
|
27.8
|
%
|
Tax effect of Ukrainian hryvnia devaluation
(a)
|
55.2
|
%
|
|
6.4
|
%
|
|
2.2
|
%
|
|
(13.3
|
)%
|
All other, net
|
166.7
|
%
|
|
4.7
|
%
|
|
1.4
|
%
|
|
(7.6
|
)%
|
|
(366.1
|
)%
|
|
39.0
|
%
|
|
(38.8
|
)%
|
|
(9.9
|
)%
|
|
•
|
Revenue
decreased
3.7%
for the
third
quarter of fiscal
2017
, as compared to the
third
quarter last year, driven by a decrease in same-store sales in both our Agriculture and Construction segments;
|
•
|
Total gross profit margin decreased to
17.6%
for the
third
quarter of fiscal
2017
, as compared to
19.5%
for the
third
quarter of fiscal
2016
. The decrease in gross profit margin was primarily the result of equipment gross margin compression as we accelerated our used inventory reduction efforts in the third quarter of fiscal 2017 by aggressively retailing used equipment inventories. In addition, a changing mix of equipment sales more heavily weighted towards used equipment revenue in the third quarter of fiscal 2017 also contributed to the lower gross profit margin;
|
•
|
Floorplan interest expense
decreased
28.4%
in the
third
quarter of fiscal
2017
, as compared to the
third
quarter last year, primarily due to a decrease in our average interest-bearing inventory in the
third
quarter of fiscal
2017
; other interest expense decreased
46.5%
in the
third
quarter of fiscal
2017
, as compared to the
third
quarter last year, due primarily to a $1.0 million gain recognized in the third quarter of fiscal 2017 related to repurchases of $24.2 million of our Senior Convertible Notes and to the interest savings resulting from that repurchase and the repurchase of $30.1 million of Senior Convertible Notes in April 2016.
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(dollars in thousands)
|
|
(dollars in thousands)
|
||||||||||||
Equipment
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
212,194
|
|
|
$
|
215,692
|
|
|
$
|
570,369
|
|
|
$
|
681,691
|
|
Cost of revenue
|
201,140
|
|
|
198,095
|
|
|
532,370
|
|
|
628,280
|
|
||||
Gross profit
|
$
|
11,054
|
|
|
$
|
17,597
|
|
|
$
|
37,999
|
|
|
$
|
53,411
|
|
Gross profit margin
|
5.2
|
%
|
|
8.2
|
%
|
|
6.7
|
%
|
|
7.8
|
%
|
||||
Parts
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
69,261
|
|
|
$
|
73,838
|
|
|
$
|
185,106
|
|
|
$
|
197,439
|
|
Cost of revenue
|
48,387
|
|
|
51,673
|
|
|
130,006
|
|
|
138,626
|
|
||||
Gross profit
|
$
|
20,874
|
|
|
$
|
22,165
|
|
|
$
|
55,100
|
|
|
$
|
58,813
|
|
Gross profit margin
|
30.1
|
%
|
|
30.0
|
%
|
|
29.8
|
%
|
|
29.8
|
%
|
||||
Service
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
33,777
|
|
|
$
|
34,116
|
|
|
$
|
96,065
|
|
|
$
|
99,860
|
|
Cost of revenue
|
11,828
|
|
|
12,449
|
|
|
35,473
|
|
|
36,136
|
|
||||
Gross profit
|
$
|
21,949
|
|
|
$
|
21,667
|
|
|
$
|
60,592
|
|
|
$
|
63,724
|
|
Gross profit margin
|
65.0
|
%
|
|
63.5
|
%
|
|
63.1
|
%
|
|
63.8
|
%
|
||||
Rental and other
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
17,034
|
|
|
$
|
21,329
|
|
|
$
|
43,919
|
|
|
$
|
53,371
|
|
Cost of revenue
|
12,485
|
|
|
15,617
|
|
|
32,703
|
|
|
39,674
|
|
||||
Gross profit
|
$
|
4,549
|
|
|
$
|
5,712
|
|
|
$
|
11,216
|
|
|
$
|
13,697
|
|
Gross profit margin
|
26.7
|
%
|
|
26.8
|
%
|
|
25.5
|
%
|
|
25.7
|
%
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Revenue
|
|
|
|
|
|
|
|
|
|
||
Equipment
|
63.9
|
%
|
|
62.5
|
%
|
|
63.7
|
%
|
|
66.0
|
%
|
Parts
|
20.8
|
%
|
|
21.4
|
%
|
|
20.7
|
%
|
|
19.1
|
%
|
Service
|
10.2
|
%
|
|
9.9
|
%
|
|
10.7
|
%
|
|
9.7
|
%
|
Rental and other
|
5.1
|
%
|
|
6.2
|
%
|
|
4.9
|
%
|
|
5.2
|
%
|
Total Revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Total Cost of Revenue
|
82.4
|
%
|
|
80.5
|
%
|
|
81.6
|
%
|
|
81.6
|
%
|
Gross Profit Margin
|
17.6
|
%
|
|
19.5
|
%
|
|
18.4
|
%
|
|
18.4
|
%
|
Operating Expenses
|
16.0
|
%
|
|
15.5
|
%
|
|
17.8
|
%
|
|
16.2
|
%
|
Impairment and Realignment Costs
|
0.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.1
|
%
|
Income from Operations
|
1.5
|
%
|
|
4.0
|
%
|
|
0.6
|
%
|
|
2.1
|
%
|
Other Income (Expense)
|
(1.5
|
)%
|
|
(2.3
|
)%
|
|
(1.7
|
)%
|
|
(2.4
|
)%
|
Income (Loss) Before Income Taxes
|
—
|
%
|
|
1.7
|
%
|
|
(1.1
|
)%
|
|
(0.3
|
)%
|
Provision for (Benefit from) Income Taxes
|
(0.1
|
)%
|
|
0.7
|
%
|
|
(0.4
|
)%
|
|
—
|
%
|
Net Income (Loss) Including Noncontrolling Interest
|
0.1
|
%
|
|
1.0
|
%
|
|
(0.7
|
)%
|
|
(0.3
|
)%
|
Less: Net Income (Loss) Attributable to Noncontrolling Interest
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Net Income (Loss) Attributable to Titan Machinery Inc.
|
0.1
|
%
|
|
1.0
|
%
|
|
(0.7
|
)%
|
|
(0.3
|
)%
|
|
Three Months Ended October 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Equipment
|
$
|
212,194
|
|
|
$
|
215,692
|
|
|
$
|
(3,498
|
)
|
|
(1.6
|
)%
|
Parts
|
69,261
|
|
|
73,838
|
|
|
(4,577
|
)
|
|
(6.2
|
)%
|
|||
Service
|
33,777
|
|
|
34,116
|
|
|
(339
|
)
|
|
(1.0
|
)%
|
|||
Rental and other
|
17,034
|
|
|
21,329
|
|
|
(4,295
|
)
|
|
(20.1
|
)%
|
|||
Total Revenue
|
$
|
332,266
|
|
|
$
|
344,975
|
|
|
$
|
(12,709
|
)
|
|
(3.7
|
)%
|
|
Three Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|||||||
Equipment
|
$
|
11,054
|
|
|
$
|
17,597
|
|
|
$
|
(6,543
|
)
|
|
(37.2
|
)%
|
Parts
|
20,874
|
|
|
22,165
|
|
|
(1,291
|
)
|
|
(5.8
|
)%
|
|||
Service
|
21,949
|
|
|
21,667
|
|
|
282
|
|
|
1.3
|
%
|
|||
Rental and other
|
4,549
|
|
|
5,712
|
|
|
(1,163
|
)
|
|
(20.4
|
)%
|
|||
Total Gross Profit
|
$
|
58,426
|
|
|
$
|
67,141
|
|
|
$
|
(8,715
|
)
|
|
(13.0
|
)%
|
Gross Profit Margin
|
|
|
|
|
|
|
|
|||||||
Equipment
|
5.2
|
%
|
|
8.2
|
%
|
|
(3.0
|
)%
|
|
(36.6
|
)%
|
|||
Parts
|
30.1
|
%
|
|
30.0
|
%
|
|
0.1
|
%
|
|
0.3
|
%
|
|||
Service
|
65.0
|
%
|
|
63.5
|
%
|
|
1.5
|
%
|
|
2.4
|
%
|
|||
Rental and other
|
26.7
|
%
|
|
26.8
|
%
|
|
(0.1
|
)%
|
|
(0.4
|
)%
|
|||
Total Gross Profit Margin
|
17.6
|
%
|
|
19.5
|
%
|
|
(1.9
|
)%
|
|
(9.7
|
)%
|
|||
Gross Profit Mix
|
|
|
|
|
|
|
|
|||||||
Equipment
|
18.9
|
%
|
|
26.2
|
%
|
|
(7.3
|
)%
|
|
(27.9
|
)%
|
|||
Parts
|
35.7
|
%
|
|
33.0
|
%
|
|
2.7
|
%
|
|
8.2
|
%
|
|||
Service
|
37.6
|
%
|
|
32.3
|
%
|
|
5.3
|
%
|
|
16.4
|
%
|
|||
Rental and other
|
7.8
|
%
|
|
8.5
|
%
|
|
(0.7
|
)%
|
|
(8.2
|
)%
|
|||
Total Gross Profit Mix
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Operating Expenses
|
$
|
53,143
|
|
|
$
|
53,484
|
|
|
$
|
(341
|
)
|
|
(0.6
|
)%
|
Operating Expenses as a Percentage of Revenue
|
16.0
|
%
|
|
15.5
|
%
|
|
0.5
|
%
|
|
3.2
|
%
|
|
Three Months Ended October 31,
|
|
|
|
Percent
|
||||||||
|
2016
|
|
2015
|
|
Increase
|
|
Change
|
||||||
|
(dollars in thousands)
|
|
|
||||||||||
Impairment and Realignment Costs
|
$
|
275
|
|
|
$
|
22
|
|
|
$
|
253
|
|
|
n/m
|
|
Three Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Interest income and other income (expense)
|
$
|
502
|
|
|
$
|
722
|
|
|
$
|
(220
|
)
|
|
(30.5
|
)%
|
Floorplan interest expense
|
(3,294
|
)
|
|
(4,602
|
)
|
|
(1,308
|
)
|
|
(28.4
|
)%
|
|||
Other interest expense
|
(2,160
|
)
|
|
(4,041
|
)
|
|
(1,881
|
)
|
|
(46.5
|
)%
|
|
Three Months Ended October 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Increase
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Provision for (Benefit from) Income Taxes
|
$
|
(208
|
)
|
|
$
|
2,231
|
|
|
$
|
2,439
|
|
|
109.3
|
%
|
|
Three Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
205,540
|
|
|
$
|
211,302
|
|
|
$
|
(5,762
|
)
|
|
(2.7
|
)%
|
Construction
|
80,789
|
|
|
87,023
|
|
|
(6,234
|
)
|
|
(7.2
|
)%
|
|||
International
|
45,937
|
|
|
46,650
|
|
|
(713
|
)
|
|
(1.5
|
)%
|
|||
Total
|
$
|
332,266
|
|
|
$
|
344,975
|
|
|
$
|
(12,709
|
)
|
|
(3.7
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
(1,798
|
)
|
|
$
|
4,219
|
|
|
$
|
(6,017
|
)
|
|
(142.6
|
)%
|
Construction
|
(105
|
)
|
|
1,413
|
|
|
(1,518
|
)
|
|
(107.4
|
)%
|
|||
International
|
604
|
|
|
351
|
|
|
253
|
|
|
72.1
|
%
|
|||
Segment income (loss) before income taxes
|
(1,299
|
)
|
|
5,983
|
|
|
(7,282
|
)
|
|
(121.7
|
)%
|
|||
Shared Resources
|
1,355
|
|
|
(269
|
)
|
|
1,624
|
|
|
603.7
|
%
|
|||
Total
|
$
|
56
|
|
|
$
|
5,714
|
|
|
$
|
(5,658
|
)
|
|
(99.0
|
)%
|
|
Nine Months Ended October 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Decrease
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Equipment
|
$
|
570,369
|
|
|
$
|
681,691
|
|
|
$
|
(111,322
|
)
|
|
(16.3
|
)%
|
Parts
|
185,106
|
|
|
197,439
|
|
|
(12,333
|
)
|
|
(6.2
|
)%
|
|||
Service
|
96,065
|
|
|
99,860
|
|
|
(3,795
|
)
|
|
(3.8
|
)%
|
|||
Rental and other
|
43,919
|
|
|
53,371
|
|
|
(9,452
|
)
|
|
(17.7
|
)%
|
|||
Total Revenue
|
$
|
895,459
|
|
|
$
|
1,032,361
|
|
|
$
|
(136,902
|
)
|
|
(13.3
|
)%
|
|
Nine Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|||||||
Equipment
|
$
|
37,999
|
|
|
$
|
53,411
|
|
|
$
|
(15,412
|
)
|
|
(28.9
|
)%
|
Parts
|
55,100
|
|
|
58,813
|
|
|
(3,713
|
)
|
|
(6.3
|
)%
|
|||
Service
|
60,592
|
|
|
63,724
|
|
|
(3,132
|
)
|
|
(4.9
|
)%
|
|||
Rental and other
|
11,216
|
|
|
13,697
|
|
|
(2,481
|
)
|
|
(18.1
|
)%
|
|||
Total Gross Profit
|
$
|
164,907
|
|
|
$
|
189,645
|
|
|
$
|
(24,738
|
)
|
|
(13.0
|
)%
|
Gross Profit Margin
|
|
|
|
|
|
|
|
|||||||
Equipment
|
6.7
|
%
|
|
7.8
|
%
|
|
(1.1
|
)%
|
|
(14.1
|
)%
|
|||
Parts
|
29.8
|
%
|
|
29.8
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Service
|
63.1
|
%
|
|
63.8
|
%
|
|
(0.7
|
)%
|
|
(1.1
|
)%
|
|||
Rental and other
|
25.5
|
%
|
|
25.7
|
%
|
|
(0.2
|
)%
|
|
(0.8
|
)%
|
|||
Total Gross Profit Margin
|
18.4
|
%
|
|
18.4
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Gross Profit Mix
|
|
|
|
|
|
|
|
|||||||
Equipment
|
23.0
|
%
|
|
28.2
|
%
|
|
(5.2
|
)%
|
|
(18.4
|
)%
|
|||
Parts
|
33.4
|
%
|
|
31.0
|
%
|
|
2.4
|
%
|
|
7.7
|
%
|
|||
Service
|
36.7
|
%
|
|
33.6
|
%
|
|
3.1
|
%
|
|
9.2
|
%
|
|||
Rental and other
|
6.9
|
%
|
|
7.2
|
%
|
|
(0.3
|
)%
|
|
(4.2
|
)%
|
|||
Total Gross Profit Mix
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
Nine Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Operating Expenses
|
$
|
159,132
|
|
|
$
|
165,979
|
|
|
$
|
(6,847
|
)
|
|
(4.1
|
)%
|
Operating Expenses as a Percentage of Revenue
|
17.8
|
%
|
|
16.2
|
%
|
|
1.6
|
%
|
|
9.9
|
%
|
|
Nine Months Ended October 31,
|
|
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
Decrease
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Impairment and Realignment Costs
|
$
|
546
|
|
|
$
|
1,519
|
|
|
$
|
(973
|
)
|
|
(64.1
|
)%
|
|
Nine Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Interest income and other income (expense)
|
$
|
1,251
|
|
|
$
|
(565
|
)
|
|
$
|
1,816
|
|
|
321.4
|
%
|
Floorplan interest expense
|
(10,843
|
)
|
|
(13,945
|
)
|
|
(3,102
|
)
|
|
(22.2
|
)%
|
|||
Other interest expense
|
(5,930
|
)
|
|
(11,228
|
)
|
|
(5,298
|
)
|
|
(47.2
|
)%
|
|
Nine Months Ended October 31,
|
|
|
|
Percent
|
||||||||
|
2016
|
|
2015
|
|
Increase
|
|
Change
|
||||||
|
(dollars in thousands)
|
|
|
||||||||||
Provision for (Benefit from) Income Taxes
|
$
|
(3,997
|
)
|
|
$
|
(354
|
)
|
|
$
|
3,643
|
|
|
n/m
|
|
Nine Months Ended October 31,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2016
|
|
2015
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
538,060
|
|
|
$
|
660,606
|
|
|
$
|
(122,546
|
)
|
|
(18.6
|
)%
|
Construction
|
241,922
|
|
|
249,601
|
|
|
(7,679
|
)
|
|
(3.1
|
)%
|
|||
International
|
115,477
|
|
|
122,154
|
|
|
(6,677
|
)
|
|
(5.5
|
)%
|
|||
Total
|
$
|
895,459
|
|
|
$
|
1,032,361
|
|
|
$
|
(136,902
|
)
|
|
(13.3
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
(9,881
|
)
|
|
$
|
693
|
|
|
$
|
(10,574
|
)
|
|
*N/M
|
|
Construction
|
(1,523
|
)
|
|
(3,089
|
)
|
|
1,566
|
|
|
50.7
|
%
|
|||
International
|
(88
|
)
|
|
(3,074
|
)
|
|
2,986
|
|
|
97.1
|
%
|
|||
Segment income (loss) before income taxes
|
(11,492
|
)
|
|
(5,470
|
)
|
|
(6,022
|
)
|
|
(110.1
|
)%
|
|||
Shared Resources
|
1,199
|
|
|
1,879
|
|
|
(680
|
)
|
|
(36.2
|
)%
|
|||
Total
|
$
|
(10,293
|
)
|
|
$
|
(3,591
|
)
|
|
$
|
(6,702
|
)
|
|
(186.6
|
)%
|
|
Three Months Ended October 31,
|
|
Nine Months Ended October 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(dollars in thousands, except per share data)
|
||||||||||||||
Net Income (Loss) Including Noncontrolling Interest
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) Including Noncontrolling Interest
|
$
|
264
|
|
|
$
|
3,483
|
|
|
$
|
(6,296
|
)
|
|
$
|
(3,237
|
)
|
Non-GAAP Adjustments
|
|
|
|
|
|
|
|
||||||||
Impairment
|
275
|
|
|
—
|
|
|
275
|
|
|
—
|
|
||||
Gain on Repurchase of Senior Convertible Notes
|
(1,028
|
)
|
|
—
|
|
|
(3,130
|
)
|
|
—
|
|
||||
Debt Issuance Cost Write-Off
|
624
|
|
|
1,019
|
|
|
624
|
|
|
1,558
|
|
||||
Realignment / Store Closing Costs
|
—
|
|
|
22
|
|
|
271
|
|
|
1,519
|
|
||||
Ukraine Remeasurement (1)
|
—
|
|
|
185
|
|
|
195
|
|
|
2,288
|
|
||||
Gain on Insurance Recoveries
|
(586
|
)
|
|
—
|
|
|
(586
|
)
|
|
—
|
|
||||
Total Pre-Tax Income (Loss) Non-GAAP Adjustments
|
(715
|
)
|
|
1,226
|
|
|
(2,351
|
)
|
|
5,365
|
|
||||
Less: Tax Effect of Non-GAAP Adjustments (2)
|
(285
|
)
|
|
416
|
|
|
(1,018
|
)
|
|
1,231
|
|
||||
Total Non-GAAP Adjustments
|
(430
|
)
|
|
810
|
|
|
(1,333
|
)
|
|
4,134
|
|
||||
Adjusted Net Income (Loss) Including Noncontrolling Interest
|
$
|
(166
|
)
|
|
$
|
4,293
|
|
|
$
|
(7,629
|
)
|
|
$
|
897
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Diluted
|
|
|
|
|
|
|
|
||||||||
Earnings (Loss) per Share - Diluted
|
$
|
0.01
|
|
|
$
|
0.16
|
|
|
$
|
(0.27
|
)
|
|
$
|
(0.13
|
)
|
Non-GAAP Adjustments (3)
|
|
|
|
|
|
|
|
||||||||
Impairment
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
||||
Gain on Repurchase of Senior Convertible Notes
|
(0.04
|
)
|
|
—
|
|
|
(0.15
|
)
|
|
—
|
|
||||
Debt Issuance Cost Write-Off
|
0.03
|
|
|
0.05
|
|
|
0.02
|
|
|
0.07
|
|
||||
Realignment / Store Closing Costs
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.07
|
|
||||
Ukraine Remeasurement (1)
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
0.11
|
|
||||
Gain on Insurance Recoveries
|
(0.03
|
)
|
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
||||
Total Pre-Tax Income (Loss) Non-GAAP Adjustments
|
(0.03
|
)
|
|
0.06
|
|
|
(0.13
|
)
|
|
0.25
|
|
||||
Less: Tax Effect of Non-GAAP Adjustments (2)
|
(0.01
|
)
|
|
0.02
|
|
|
(0.04
|
)
|
|
0.06
|
|
||||
Total Non-GAAP Adjustments
|
(0.02
|
)
|
|
0.04
|
|
|
(0.09
|
)
|
|
0.19
|
|
||||
Adjusted Earnings (Loss) per Share - Diluted
|
$
|
(0.01
|
)
|
|
$
|
0.20
|
|
|
$
|
(0.36
|
)
|
|
$
|
0.06
|
|
|
Net Cash Provided by Operating Activities
|
|
Net Cash Used for Financing Activities
|
||||||||||||
|
Nine Months Ended October 31, 2016
|
|
Nine Months Ended October 31, 2015
|
|
Nine Months Ended October 31, 2016
|
|
Nine Months Ended October 31, 2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Cash Flow, As Reported
|
$
|
74,398
|
|
|
$
|
198,761
|
|
|
$
|
(104,638
|
)
|
|
$
|
(246,935
|
)
|
Net Change in Non-Manufacturer Floorplan Payable
|
(54,478
|
)
|
|
(201,320
|
)
|
|
54,478
|
|
|
201,320
|
|
||||
Adjustment for Constant Equity in Equipment Inventory
|
14,503
|
|
|
35,452
|
|
|
—
|
|
|
—
|
|
||||
Adjusted Cash Flow
|
$
|
34,423
|
|
|
$
|
32,893
|
|
|
$
|
(50,160
|
)
|
|
$
|
(45,615
|
)
|
Dated:
|
December 8, 2016
|
|
|
|
|
TITAN MACHINERY INC.
|
|
|
|
|
|
|
|
|
|
|
|
By
|
/s/ Mark Kalvoda
|
|
|
|
Mark Kalvoda
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
No.
|
|
Description
|
|
|
|
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 October 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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