Construction and agricultural equipment dealership Titan Machinery posted $465.5 million in revenue for the fiscal first quarter ended April 30, compared to $441.7 million for the same quarter last year, a 5.4-percent year over year increase. However, revenue from “rental and other” – which is primarily equipment rental – jumped a robust 24 percent, from $12.1 million in the first quarter a year ago to $15 million.
Equipment sales increased moderately, from $334.7 million to $345 million, a 3-percent rise, while parts revenue jumped 8.9 percent. Service revenue increased 15.9 percent. Gross profit increased from $73.9 million to $75.9 million.
Titan Machinery chairman David Meyer said the company completed the realignment and consolidation of its construction segment. “We believe this improves the overall foundation of our business and beginning in the second quarter we are realizing the cost savings associated with the realignment,” he said. “Our Construction same-store sales in the first quarter increased 24.4 percent on a year-over-year basis, reflecting the improvements we began implementing in the second half of last fiscal year as well as improvements in the industry.”
Titan continues to expect revenue for the year within the range of $1.95 billion to $2.15 billion.
Meyer added that the company expects “growth in the rental equipment demand in our footprint to be aligned with industry forecast of approximately 10-percent growth in 2014.”
Headquartered in West Fargo, N.D., Titan Machinery is No. 31 on the RER 100.