Gross Margins Improve for Titan Machinery in Fiscal Second Quarter
Titan Machinery posted $268.9 million in revenue for its fiscal second quarter, compared to $278.3 million in the second quarter a year ago, a 3.4-percent decline. Equipment sales tumbled slightly to $167.9 million compared to $173.3 million in last year’s second quarter, a 3.1-percent slide. Parts sales were $55.6 million compared to $58.3 million last year, a 4.6-percent drop. Revenue from service dropped slightly from $31.3 million to $30.5 million.
Revenue from rental and other also slipped slightly from $15.4 million last year to $14.9 million this year, a 3.2-percent decrease.
Gross profit for the fiscal second quarter was $52.8 million compared to $52.9 million in the year-ago frame.
For the first six months of Titan’s fiscal year, EBITDA was $8.5 million compared to $6.4 million in the first six months of fiscal 2016, a 32.8-percent leap.
“Second quarter financial results reflect improvements in gross margins, operating expenses and interest expense,” said David Meyer, Titan Machinery chairman and CEO. “While our overall pre-tax results have not improved due to the restructuring costs that we have incurred, our adjusted pre-tax results, which are exclusive of restructuring charges, have improved in all three of our operating segments, agriculture, construction and international.”
Titan Machinery, based in West Fargo, N.D., is a leading Case dealer and also handles Grove, JLG, New Holland, Wacker Neuson and other brands. The company is No. 44 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.