Titan Machinery Inc. Announces Results for Fiscal Third Quarter Ended October 31, 2018

- Revenue for Third Quarter of Fiscal 2019 Increased 10.1% to $364 million -
- EPS for the Third Quarter of Fiscal 2019 was $0.48, or Adjusted EPS of $0.49,
Compared to EPS of $0.11, or Adjusted EPS of $0.20, in the Prior Year Period -
- Company Updates Fiscal 2019 Modeling Assumptions, including a Raise in EPS Range -

West Fargo, ND – November 29, 2018 – Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal third quarter ended October 31, 2018.

David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, "We are pleased with the revenue growth across all segments and the operating leverage we are generating in the business. Our third quarter results are indicative of the efforts we've made over the past couple of years to position our business for improved profitability across all segments. The increase in our Agriculture segment revenue is encouraging given the continued industry challenges. Our improved inventory position is helping drive increases in equipment margins, which, combined with a lower annual operating expense level, is generating improvements in profitability. As a result of these improvements and revenue growth across all segments, adjusted earnings per share grew significantly over the prior year period."
Fiscal 2019 Third Quarter Results
Consolidated Results
For the third quarter of fiscal 2019, revenue was $363.6 million, compared to $330.3 million in the third quarter last year. Equipment sales were $241.2 million for the third quarter of fiscal 2019, compared to $216.0 million in the third quarter last year. Parts sales were $70.1 million for the third quarter of fiscal 2019, compared to $64.7 million in the third quarter last year. Revenue generated from service was $33.6 million for the third quarter of fiscal 2019, compared to $31.5 million in the third quarter last year. Revenue from rental and other was $18.8 million for the third quarter of fiscal 2019, compared to $18.1 million in the third quarter last year.

Gross profit for the third quarter of fiscal 2019 was $69.5 million, compared to $61.5 million in the third quarter last year. The increase in gross profit was driven by higher revenue. Gross profit margins increased 50 basis points to 19.1% versus the comparable period last year. The improvement in gross profit margin was due to higher gross profit margins on equipment revenue.

Operating expenses increased by $2.9 million to $53.3 million, or 14.7% of revenue, for the third quarter of fiscal 2019, compared to $50.4 million, or 15.2% of revenue, for the third quarter of last year. The decrease in operating expenses as a percentage of total revenue was primarily due to the increase in total revenue in the third quarter of fiscal 2019, as compared to the third quarter of fiscal 2018, which positively affected our ability to leverage fixed operating costs.

Floorplan interest expense of $1.9 million for the third quarter of fiscal 2019 was flat compared to the third quarter of last year.

In the third quarter of fiscal 2019, net income was $10.8 million, or earnings per diluted share of $0.48, compared to net income of $2.4 million, or earnings per diluted share of $0.11 for the third quarter of last year.

On an adjusted basis, net income for the third quarter of fiscal 2019 was $10.9 million, or adjusted earnings per diluted share of $0.49, compared to adjusted net income of $4.4 million, or adjusted earnings per diluted share of $0.20, for the third quarter of last year.

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The following information was filed by Titan Machinery Inc. (TITN) on Thursday, November 29, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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