Titan Machinery’s Revenue Rises 24.4 Percent in Fiscal Second Quarter
Distributor Titan Machinery posted $377.6 million in revenue in the company’s fiscal second quarter ended July 31, 2021, compared to $303.5 million in the fiscal second quarter of 2020, a 24.4-percent hike. The company increased 29.8 percent in agricultural revenue, 4.1 percent in construction and 36.4 percent in international.
For the first six months of the fiscal year, revenue was $750.3 million compared to $613.7 in the first six months of fiscal 2020, a 22.3-percent jump.
The increase in the construction segment was relatively small as a result of the company’s previously announced divestment of its construction stores in Arizona, with the increase driven by higher equipment sales.
Equipment sales were $272.7 million for the second quarter of fiscal 2022, compared to $202.7 million in the second quarter last year. Parts sales were $65.3 million for the second quarter of fiscal 2022, compared to $61.5 million in the second quarter last year. Revenue generated from service was $29.7 million for the second quarter of fiscal 2022, compared to $28.0 million in the second quarter last year. Revenue from rental and other was $9.9 million for the second quarter of fiscal 2022, compared to $11.4 million in the second quarter last year. Rental revenue was down because of a decrease in inventory rentals, a reduced rental fleet and the January 2021 divestiture of the company's construction stores in Arizona. While the fleet was smaller compared to the prior year, the dollar utilization of the fleet improved to 26.6 percent in the quarter compared to 22.2 percent in the same period last year.
"Equipment demand momentum continued through our second fiscal quarter with our equipment revenues increasing 35 percent versus prior year,” said David Meyer, Titan Machinery’s chairman and CEO. “The current environment is supported by our healthy inventory position and robust demand, along with continued strength in our parts and service business, driving strong consolidated pre-tax income growth of 89 percent during second quarter compared to prior year second quarter. From a segment perspective, our Agriculture business was well-positioned and produced exceptional growth as high commodity prices are offsetting drought conditions in areas of our footprint. However, we are especially pleased with the improved performance of both our Construction and International segments. Our construction segment pre-tax income grew 105 percent versus the prior year and our International segment pre-tax income increased by $0.9 million, and on an adjusted basis by $2.4 million, versus the prior year.
“Our operational improvements have enhanced the performance of each of our segments, as well as added value to our customers' businesses. Looking forward, our team is ready to support our customers through the upcoming busy harvest and end of year construction seasons, as we complete the second half of our fiscal year."
Based in West Fargo, N.D., Titan Machinery is No. 77 on the RER 100.
