Titan Machinery’s Revenue Declines a Modest 3.6 Percent in Fiscal 2021 Second Quarter
Equipment distributor Titan Machinery posted fiscal 2021 second quarter revenue of $303.5 million compared to $315 million for the second quarter of fiscal 2020, a 3.6-percent decline, fairly minimal in the COVID-19 era. Equipment sales dropped from $214.4 million to $202.7 million, a 5.5-percent dip. Rental and other slid from $14.5 million in the year-ago quarter to $11.4 million in the just-concluded period, a 21.4-percent decline.
Parts sales were $61.5 million in fiscal Q221 compared to $59.2 million, while service revenue increased from $26.8 million a year ago to $28 million.
"We generated a solid second quarter top and bottom line performance amid an uncertain environment, which demonstrates the sustainability of our business due to our committed employees along with our strong equipment, parts and service offering,” said David Meyer, Titan Machinery chairman and CEO. “Our Agriculture segment produced 9.3-percent growth in pre-tax income driven primarily by continued strength in our parts and service businesses. Considering the challenging industry conditions created from the COVID-19 pandemic, we are also pleased with the performance of our Construction and International segments. These results wouldn't be possible without the resolve from our store operations teams that are delivering uninterrupted customer service, while maintaining the safety of their fellow co-workers and our customers."
Gross profit for the second quarter of fiscal 2021 was $62.7 million, compared to $64.0 million in the second quarter last year. Gross profit margin increased 40 basis points to 20.7 percent versus the comparable period last year. The increase in gross profit margin was primarily because of an increased mix of higher margin parts and service business, as compared to the second quarter of last year.
In the Construction Segment, revenue for the second quarter of fiscal 2021 was $77.7 million, compared to $84.0 million in the second quarter last year. The decrease in revenue was primarily the result of lower equipment and rental demand due to COVID-19 related macroeconomic challenges and uncertainty. Pre-tax income for the second quarter of fiscal 2021 was $1.4 million, compared to a pre-tax income of $1.3 million in the second quarter last year.
"Our business remains in a strong financial position, bolstered by an improving inventory position and the additional flexibility and favorable terms of our recently amended credit agreement,” added Meyer. “Our team has met the recent challenges by successfully reducing expenses and strengthening our balance sheet. Due to the solid first half of fiscal 2021 and our belief in a stabilizing Agriculture business, we are introducing our modeling assumptions for full year fiscal 2021 for the first time since the COVID-19 pandemic began. We continue to maintain our focus on long-term growth initiatives and are grateful to our employees who help us execute these strategies every day."
For the first six months of the fiscal year, revenue was $613.7 million, compared to $593.3 million for the same period last year, a 3.4-percent increase.
Titan Machinery is based in West Fargo, N.D.
