Gross Margins Improve for Titan Machinery in Fiscal Second Quarter

Titan Machinery posted $268.9 million in revenue for its fiscal second quarter, compared to $278.3 million in the second quarter a year ago, a 3.4-percent decline. Equipment sales tumbled slightly to $167.9 million compared to $173.3 million in last year’s second quarter, a 3.1-percent slide. Parts sales were $55.6 million compared to $58.3 million last year, a 4.6-percent drop. Revenue from service dropped slightly from $31.3 million to $30.5 million.

Revenue from rental and other also slipped slightly from $15.4 million last year to $14.9 million this year, a 3.2-percent decrease.

Gross profit for the fiscal second quarter was $52.8 million compared to $52.9 million in the year-ago frame.

For the first six months of Titan’s fiscal year, EBITDA was $8.5 million compared to $6.4 million in the first six months of fiscal 2016, a 32.8-percent leap.

“Second quarter financial results reflect improvements in gross margins, operating expenses and interest expense,” said David Meyer, Titan Machinery chairman and CEO. “While our overall pre-tax results have not improved due to the restructuring costs that we have incurred, our adjusted pre-tax results, which are exclusive of restructuring charges, have improved in all three of our operating segments, agriculture, construction and international.”

Titan Machinery, based in West Fargo, N.D., is a leading Case dealer and also handles Grove, JLG, New Holland, Wacker Neuson and other brands. The company is No. 44 on the RER 100.