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Titan Machinery Stays Flat in Third Quarter

Dec. 5, 2020
Titan Machinery posted flat revenues in its fiscal third quarter ended Oct. 31 -- $360.9 million in the third quarter of fiscal 2020 and the same in fiscal 2019, with a slight edge of about $60,000 in fiscal 2019.

Titan Machinery posted flat revenues in its fiscal third quarter ended Oct. 31 -- $360.9 million in the third quarter of fiscal 2020 and the same in fiscal 2019, with a slight edge of about $60,000 in fiscal 2019. Revenue from equipment was about $240.9 million in fiscal 2020 compared to $246 million in the fiscal third quarter of 2019, a 2.1-percent decrease.

The company, primarily a Case dealership improved its parts and service revenue, but its “rental and other” revenue, which is predominantly rental, dropped from $16.6 million in the third quarter to $12.5 million, a 24.7-percent decline.

For the first nine months of the fiscal year, overall revenue increased, from $954.2 million in fiscal 2019 to $974.6 million, a 2.1-percent increase. Rental revenue, however, declined from $40.7 million to $33.4 million, a 17.9-percent plunge.

"We exceeded our third quarter top-line expectations due to strong parts and service performance in our Agriculture segment and better than anticipated equipment sales in our Construction and International segments,” said David Meyer, Titan Machinery chairman and CEO. “The stronger revenue, combined with continued success controlling operating expenses and driving down interest expense, resulted in a significant improvement to our pre-tax income. Due to our strong third quarter results and solid agriculture market fundamentals that are supporting our fourth quarter, including improved corn and soybean prices, we are raising our earnings per share guidance for fiscal year 2021. COVID-19 continues to challenge our team and our customer's end markets, however, I'm proud of how our team has responded to the new operating environment as they continue to deliver the high level of support our customers have come to expect."

Based in West Fargo, N.D., Titan Machinery is No. 62 on the RER 100.