Titan Machinery Inc 8-K, filed Aug 29, 2024

Titan Machinery Inc. (TITN)

8-K 2024-08-29 For: 2024-08-29

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Added on April 11, 2026

About this 8-K

Titan Machinery Inc filed this 8-K on August 29, 2024.

Items reported

Item 2.02: Financial results

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001-33866						45-0357838
(Commission File Number)						(IRS Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.00001 par value per share	TITN	The Nasdaq Stock Market LLC




		TITAN MACHINERY INC.

Date:	August 29, 2024	By	/s/ Robert Larsen
			Robert Larsen
			Chief Financial Officer




Date of Report:			Commission File No.:
August 29, 2024			001-33866




Exhibit No.						ITEM

99.1						Press Release dated August 29, 2024
104						Cover page interactive data file (embedded within the Inline XBRL document)


TITAN MACHINERY INC.
Consolidated Condensed Balance Sheets
(in thousands)
(Unaudited)

	July 31, 2024		January 31, 2024
Assets
Current Assets
Cash	$	31,219	$	38,066
Receivables, net of allowance for expected credit losses	131,776		153,657
Inventories, net	1,527,758		1,303,030
Prepaid expenses and other	18,347		24,262


Total current assets	1,709,100		1,519,015
Noncurrent Assets
Property and equipment, net of accumulated depreciation	357,346		298,774
Operating lease assets	37,643		54,699
Deferred income taxes	512		529
Goodwill	62,929		64,105
Intangible assets, net of accumulated amortization	51,367		53,356
Other	1,652		1,783
Total noncurrent assets	511,449		473,246
Total Assets	$	2,220,549	$	1,992,261

Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	40,434	$	43,846
Floorplan payable	1,168,440		893,846

Current maturities of long-term debt	9,940		13,706
Current operating lease liabilities	7,912		10,751
Deferred revenue	57,802		115,852
Accrued expenses and other	58,892		74,400

Total current liabilities	1,343,420		1,152,401
Long-Term Liabilities
Long-term debt, less current maturities	116,666		106,407
Operating lease liabilities	35,415		50,964
Deferred income taxes	21,662		22,607
Other long-term liabilities	43,820		2,240
Total long-term liabilities	217,563		182,218
Stockholders' Equity
Common stock	—		—
Additional paid-in-capital	259,911		258,657
Retained earnings	402,362		397,225
Accumulated other comprehensive income (loss)	(2,707)		1,760
Total stockholders' equity	659,566		657,642
Total Liabilities and Stockholders' Equity	$	2,220,549	$	1,992,261


TITAN MACHINERY INC.
Consolidated Condensed Statements of Operations
(in thousands, except per share data)
(Unaudited)

	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Revenue
Equipment	$	465,233	$	480,122	$	933,322	$	909,498
Parts	109,805		108,510		218,032		205,116
Service	47,268		42,478		92,346		77,411
Rental and other	11,368		11,458		18,676		20,174
Total Revenue	633,674		642,568		1,262,376		1,212,199
Cost of Revenue
Equipment	422,236		414,800		834,476		783,062
Parts	74,239		73,086		147,390		138,190
Service	16,144		14,208		32,920		26,617
Rental and other	8,676		7,075		13,458		12,351
Total Cost of Revenue	521,295		509,169		1,028,244		960,220
Gross Profit	112,379		133,399		234,132		251,979
Operating Expenses	95,156		88,751		194,314		170,066
Impairment of Goodwill	531		—		531		—
Impairment of Intangible and Long-Lived Assets	942		—		942		—

Income from Operations	15,750		44,648		38,345		81,913
Other (Expense) Income
Interest and other (expense) income	(7,048)		641		(7,335)		1,362
Floorplan interest expense	(9,218)		(2,457)		(16,282)		(3,729)
Other interest expense	(3,734)		(1,241)		(6,193)		(2,514)
(Loss) Income Before Income Taxes	(4,250)		41,591		8,535		77,032
Provision for Income Taxes	54		10,270		3,399		18,745
Net (Loss) Income	$	(4,304)	$	31,321	$	5,136	$	58,287

Diluted (Loss) Earnings per Share	$	(0.19)	$	1.38	$	0.22	$	2.56
Diluted Weighted Average Common Shares	22,617		22,484		22,583		22,480


TITAN MACHINERY INC.
Consolidated Condensed Statements of Cash Flows
(in thousands)
(Unaudited)

	Six Months Ended July 31,
	2024		2023
Operating Activities
Net income	$	5,136	$	58,287
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	18,413		14,637
Impairment	1,473		—
Sale-leaseback financing expense	11,159		—
Other, net	5,676		2,327
Changes in assets and liabilities, net of effects of acquisitions
Inventories	(242,113)		(263,121)
Manufacturer floorplan payable	206,103		150,906
Receivables	18,499		(20,623)
Other working capital	(71,713)		(65,108)
Net Cash Used for Operating Activities	(47,367)		(122,695)
Investing Activities
Property and equipment purchases	(22,535)		(28,037)
Proceeds from sale of property and equipment	1,198		6,029
Acquisition consideration, net of cash acquired	(260)		(27,935)
Other, net	130		(795)
Net Cash Used for Investing Activities	(21,467)		(50,738)
Financing Activities
Net change in non-manufacturer floorplan payable	78,965		185,026

Net proceeds/(payments) from long-term debt and finance leases	(11,853)		(2,198)
Other, net	(4,701)		(1,018)
Net Cash Provided by Financing Activities	62,411		181,810
Effect of Exchange Rate Changes on Cash	(424)		466
Net Change in Cash	(6,847)		8,843
Cash at Beginning of Period	38,066		43,913
Cash at End of Period	$	31,219	$	52,756


TITAN MACHINERY INC.
Segment Results
(in thousands)
(Unaudited)

	Three Months Ended July 31,						Six Months Ended July 31,
	2024		2023		% Change		2024		2023		% Change
Revenue
Agriculture	$	424,036	$	469,069	(9.6)	%	$	871,721	$	892,266	(2.3)	%
Construction	80,191		82,863		(3.2)	%	151,683		154,860		(2.1)	%
Europe	68,149		90,636		(24.8)	%	133,254		165,073		(19.3)	%
Australia	$	61,298	$	—	n/m		$	105,718	$	—	n/m
Total	$	633,674	$	642,568	(1.4)	%	$	1,262,376	$	1,212,199	4.1	%

Income (Loss) Before Income Taxes
Agriculture (1)	$	635	$	33,029	(98.1)	%	$	13,680	$	57,181	(76.1)	%
Construction (2)	(4,893)		5,156		n/m		(4,625)		9,689		(147.7)	%
Europe	(2,270)		5,568		(140.8)	%	(919)		11,952		(107.7)	%
Australia	1,362		—		n/m		876		—		n/m
Segment Income (Loss) Before Income Taxes	(5,166)		43,753		(111.8)	%	9,012		78,822		(88.6)	%
Shared Resources	916		(2,162)		142.4	%	(477)		(1,790)		73.4	%
Total	$	(4,250)	$	41,591	(110.2)	%	$	8,535	$	77,032	(88.9)	%

(1) Included in the results for the three and six months ended July 31, 2024, was a $6.1 million one-time, non-cash sale-leaseback financing expense.
(2) Included in the results for the three and six months ended July 31, 2024, was a $5.1 million one-time, non-cash sale-leaseback financing expense.
*N/M = Not Meaningful


TITAN MACHINERY INC.
Non-GAAP Reconciliations
(in thousands, except per share data)
(Unaudited)

	Three Months Ended July 31,				Six Months Ended July 31,
	2024		2023		2024		2023
Adjusted Net Income (Loss)
Net Income (Loss)	$	(4,304)	$	31,321	$	5,136	$	58,287
Adjustments



Impact of sale-leaseback financing expense (1)	11,159		—		11,159		—
Total Pre-Tax Adjustments	11,159		—		11,159		—
Less: Tax Effect of Adjustments (2)	(2,845)		—		(2,845)		—

Total Adjustments	8,314		—		8,314		—
Adjusted Net Income	$	4,010	$	31,321	$	13,450	$	58,287

Adjusted Diluted Earnings (Loss) Per Share
Diluted Earnings (Loss) Per Share	$	(0.19)	$	1.38	$	0.22	$	2.56
Adjustments



Impact of sale-leaseback financing expense (1)	0.48		—		0.49		—
Total Pre-Tax Adjustments	0.48		—		0.49		—
Less: Tax Effect of Adjustments (2)	(0.12)		—		(0.12)		—

Total Adjustments	0.36		—		0.37		—
Adjusted Diluted Earnings Per Share	$	0.17	$	1.38	$	0.59	$	2.56

Adjusted Income (Loss) Before Income Taxes
Income (Loss) Before Income Taxes	$	(4,250)	$	41,591	$	8,535	$	77,032
Adjustments



Impact of sale-leaseback financing expense (1)	11,159		—		11,159		—
Total Adjustments	11,159		—		11,159		—
Adjusted Income Before Income Taxes	$	6,909	$	41,591	$	19,694	$	77,032































EBITDA
Net Income (Loss)	$	(4,304)	$	31,321	$	5,136	$	58,287
Adjustments
Interest expense, net of interest income (3)	3,629		1,110		5,980		2,275
Provision for income taxes	54		10,270		3,399		18,745
Depreciation and amortization	9,698		7,689		18,413		14,637
EBITDA	$	9,077	$	50,390	$	32,928	$	93,944
Adjustments



Impact of sale-leaseback financing expense (1)	11,159		—		11,159		—
Total Adjustments	11,159		—		11,159		—
Adjusted EBITDA	$	20,236	$	50,390	$	44,087	$	93,944
(1) Accounting impact of a one-time, non-cash, sale-leaseback financing expense related to the Company's umbrella purchase for 13 of its leased facilities.
(2) The tax effect of U.S. related adjustments was calculated using a 25.5% tax rate, determined based on a 21% federal statutory rate and a 4.5% blended state income tax rate.
(3) Net of interest, excluding floorplan interest expense which was $9,218 and $2,457 for the three month ended July 31, 2024 and 2023 respectively, and $16,282 and $3,729 for the six months ended July 31, 2024 and 2023 respectively.