Revenue Drops in Titan’s Fiscal Fourth While Rental Rises

Construction and agricultural dealership and rental company Titan Machinery posted $708.6 million in fiscal fourth quarter revenue, a 9.7-percent decrease compared to $784.5 million for the fourth quarter of fiscal 2013. However, revenue from rental and other increased 28.1 percent from $17.8 million in the fiscal fourth quarter of 2013 to $22.8 in the just-concluded quarter.

Pre-tax income for the fiscal fourth quarter was $2.8 million, compared to $12.8 the previous year, excluding a non-cash impairment charge. Adjusted pre-tax construction segment loss was $8.2 million for the fourth quarter of fiscal 2014, compared to a loss of $5.5 million in the previous year’s fiscal fourth.

For the full year ended January 31, revenue increased 1.3 percent to $2.23 billion, compared to $2.2 billion a year ago. Revenue in Titan’s “rental and other” category increased 22.5 percent from $64.4 million in fiscal 2013 to $78.9 million in the recently concluded year.

“Our top line results for fiscal 2014 were within our expectations and our adjusted net income and earnings per share exceeded our guidance range,” said David Meyer, Titan CEO. “In the fourth quarter, our parts and service business performed well, while our equipment sales and margins continued to experience challenges due to industry headwinds across our segments.”

Referring to the closing of seven stores and layoffs of 128 employees, Meyer said “We are confident the realignment we are implementing during the first quarter of fiscal 2014 will position our construction segment for improved pre-tax profits and enable us to better serve our construction and rental customer base going forward. While we are not satisfied with the recent overall performance of our construction business, the changes we are making will enhance the overall performance.”

Titan expects revenue in fiscal 2015 in the range of $1.95 billion to $2.15 billion, with adjusted net income in the range of $14.8 million to $21.1 million.

Based in West Fargo, N.D., Titan Machinery is No. 36 on the RER 100.

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