Titan Machinery, a leading network of full-service agricultural and construction equipment stores, last week reported financial results for the first quarter ended April 30. For the first quarter of fiscal 2012, revenue increased 54.9 percent to $318.2 million from revenue of $205.5 million in the first quarter last year. All three of the company’s main revenue sources — equipment, parts and service — contributed to this period-over-period revenue growth. The additional income from recently acquired companies contributed significantly as well.
Equipment sales were $249.2 million for the first quarter of fiscal 2012, compared to $150.4 million in the first quarter last year. Parts sales were $41.9 million for the first quarter of fiscal 2012, compared to $35.1 million in the first quarter last year. Revenue generated from service was $21.0 million for the first quarter of fiscal 2012, compared to $16.6 million in the first quarter last year.
Gross profit for the first quarter of fiscal 2012 was $52.8 million, compared to $34.4 million in the first quarter of last year. The company’s gross profit margin was 16.6 percent in the fiscal first quarter of 2012, compared to 16.8 percent in the first quarter last year, reflecting the increased percentage of revenue generated from equipment sales compared to the higher margin parts and service businesses. Gross profit from parts and service revenue for the first quarter of fiscal 2012 increased to $25.2 million from $20.5 million in the first quarter of last year.
Net income for the first quarter of fiscal 2012 was $7.3 million, compared to net income of $1.6 million in the first quarter last year. Earnings per diluted share for the first quarter of fiscal 2012 were $0.40 compared to $0.09 per diluted share in the first quarter last year.
“We are pleased with our strong agriculture and construction business results for the first quarter of fiscal 2012,” said David Meyer, Titan Machinery’s chairman and CEO. “These results were driven by organic and acquired growth in both businesses. Agriculture same-store sales increased 37.6 percent and our Construction same-store sales increased 33.1 percent. In addition, our Construction business generated pre-tax income of $0.7 million for the first quarter compared to a loss of $1.9 million for the same period last year.”
In the first quarter of fiscal 2012, the company completed three acquisitions, consisting of two agriculture dealerships and four rental equipment locations. In addition, the company relocated and expanded one Iowa construction equipment store to also sell agriculture equipment. Subsequent to the end of the fiscal first quarter, the company completed two acquisitions consisting of six locations and announced the planned consolidation and closing of its Belgrade, Mont., location, which the company plans to consolidate into its newly acquired ABC Rental Bozeman, Mont., location in the second quarter of this year.
“In recent months, we have closed several strategic agriculture and construction acquisitions and we now have dealerships in eight states throughout the upper Midwest and Northwest,” Meyer said. “We see additional growth opportunities through acquisitions, and with our recently completed follow-on equity offering of $75 million, we have the financial ability to capitalize on these opportunities and execute on our long-term business strategy of strong organic and acquired growth.”
Titan Machinery, founded in 1980 and headquartered in West Fargo, N.D., owns and operates a network of full-service agricultural and construction equipment stores in the United States. The Titan Machinery network consists of 87 dealerships in North Dakota, South Dakota, Iowa, Minnesota, Montana, Nebraska, Wyoming and Wisconsin, including two outlet stores, representing one or more of the CNH Brands.
