Titan Machinery, a network of full-service construction and agricultural equipment stores, including a number of rental branches, posted a 64.9-percent revenue increase for its fiscal 2012 fourth quarter ended Jan. 31. Total revenue was $607 million for the fourth quarter, compared with $368.1 million the previous year’s quarter.
Equipment sales totaled $517.1 million for the quarter, compared with $310.0 million, a 66.8-percent leap, while parts sales were $45.7 million for the quarter compared with $29.9 million in the year-ago quarter, a 52.8-percent spike. Equipment rental and “other” more than doubled, from $7.6 million in FQ411 to $16.9 million in the recently concluded quarter.
For the full year ended Jan. 31, total revenue leaped 51.6 percent to $1.66 billion compared with $1.09 billion the previous year. Equipment rental and “other” also more than doubled for the full year, from $23.6 million in fiscal 2011 to $50.2 million in fiscal 2012.
In the fourth quarter of fiscal 2012, Titan completed three acquisitions, two agricultural equipment dealerships in the United States and two agricultural dealerships in Europe. Since the conclusion of the quarter, Titan acquired three construction equipment dealership locations in the U.S., and one independent equipment rental center.
The company expanded its construction footprint into Colorado with three locations and increased its rental business with an additional rental company acquisition. Titan is continuing to strengthen its contiguous network of dealerships in the Upper Midwest.
“We are pleased with our strong fourth-quarter and full-year results, as we delivered another record year of revenue and net income for Titan Machinery,” said chairman and CEO David Meyer. “In fiscal 2012, we generated strong organic and acquired growth, as a result of several factors, including the continuation of a robust agriculture equipment market, an improved construction equipment market in the region in which we do business, and growth in our construction equipment rental business. In the fourth quarter, equipment demand was driven by strong net farm income for calendar year 2011 and an improving construction market, enabling us to exceed our fiscal 2012 annual revenue and net income guidance.”
Meyer was optimistic about Titan’s prospects for fiscal 2013. “We expect to benefit from continued organic and acquired growth, including our international expansion into Romania and Bulgaria and our expanding footprint in our core Upper Midwest market. In addition, the operating environment remains favorable for our customers for both of our business segments.”
Titan Machinery is expecting fiscal-year 2013 total revenues to range between $1.95 billion and $2.1 billion.
Titan is based in West Fargo, N.D. It owns and operates a network of 96 North American dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming, Wisconsin and Colorado, and 10 European dealerships in Romania and Bulgaria. The dealerships represent one or more of the CNH brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, Kobelco, and CNH Capital.