Despite the impact of COVID-19, equipment distributor Titan Machinery posted $310.2 million in the first quarter of fiscal 2021 ended April 30, compared to $278.3 million in the first quarter a year ago, an 11.5-percent increase. Equipment sales were $218.5 million compared to $194 million a year ago, a 12.6-percent boost. Parts sales were $56.6 million compared to $51.9 million last year, an 8.9-percent hike. Service revenue was $25.6 million compared to $22.8 million in the year-ago quarter, a 12.3-percent increase. However, “rental and other,” which is primarily rental, was flat year over year at $9.5 million compared to $9.6 million last year.
Gross profit for the first quarter of fiscal 2021 was $58.4 million, compared to $53.9 million in the first quarter last year. Gross profit margin decreased 60 basis points to 18.8 percent versus the comparable period last year. The decrease in gross profit margin was primarily because of lower equipment margins in the current quarter as compared to the first quarter of last year.
In Titan’s agricultural segment, revenue for the first quarter of fiscal 2021 was $193.6 million, compared to $153.8 million in the first quarter last year. The increase in revenue was driven by strength in equipment sales and supported by ongoing momentum in parts and service revenue. Pre-tax income for the first quarter of fiscal 2021 was $6.2 million, compared to $1.9 million of pre-tax income in the first quarter last year.
In the construction segment, revenue decreased for the first quarter of fiscal 2021 was $60.1 million, compared to $70.7 million in the first quarter last year. The decrease in revenue was primarily the result of lower equipment demand because of macroeconomic challenges and uncertainty, which also impacted parts and service to a lesser extent. Pre-tax loss for the first quarter of fiscal 2021 was $2.9 million, compared to a pre-tax loss of $2.2 million in the first quarter last year. Adjusted pre-tax loss for the first quarter of fiscal 2021 was $2.7 million, compared to $2.1 million in the first quarter last year.
"We are pleased to report a strong first quarter performance during this uncertain environment, driven by our continued focus on customer service and sound management of our operating expenses,” said David Meyer, Titan Machinery’s chairman and CEO. “Our Agriculture segment revenue increased 26 percent as equipment, parts and service all experienced solid double-digit growth. Our store operations teams have adjusted well to the new COVID-19 safety protocols that we put in place in March and have continued their uninterrupted service to customers during the important spring planting and the start of the construction season. While we are pleased with the overall performance of our agriculture segment in fiscal first quarter, this solid top and bottom line performance was slightly offset by the relative underperformance of our Construction and International results which were impacted more by the pandemic.
"Our team continues to carefully manage through this disruptive environment and our solid first fiscal quarter validates the many strengths of our overall business. We improved our strong financial position during the quarter and are very pleased with our new credit agreement that provides additional flexibility and access to capital. We continue to maintain our focus on long-term organic and acquired growth initiatives. We are grateful to our employees who are meeting the COVID-19 challenges every day as we have adapted our operations to focus on the safety of our employees while meeting the needs of our customers."
Titan Machinery, based in West Fargo, N.D., handles a range of products, but is primarily a dealer for the CNHi brands including Case IH, Case Construction, New Holland Agriculture and New Holland Construction. Titan is No. 62 on the RER 100.
