TITN-Profitieren vom Agrarboom
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Titan Machinery Inc. Announces Fiscal First Quarter 2009 Results
Monday June 16, 6:26 am ET
Revenue Increased to $153 Million
Operating Income Grew to $6.4 Million
FARGO, N.D.--(BUSINESS WIRE)--Titan Machinery Inc. (Nasdaq:TITN - News), a leading network of full service agriculture and construction equipment stores, today reported financial results for the first quarter ended April 30, 2008.
For the first quarter of fiscal 2009, revenue increased to $152.6 million from revenue of $79.8 million for the first quarter of the prior year. All three of the Company?s main revenue sources ─ equipment, parts and services ─ contributed to this period-over-period revenue growth. Equipment sales were $120.9 million, compared to $61.1 million in the same period last year. Parts sales were $21.5 million in the first quarter, up from $12.3 million in the prior-year period. Revenue generated from services improved to $8.9 million in the quarter compared to $5.4 million in the first quarter of last year.
Gross profit for the fiscal first quarter increased to $24.6 million, compared to $12.8 million in the first quarter of the prior year. The Company's gross profit margin was 16.1% in the fiscal first quarter, the same as in the first quarter of the prior year.
Operating income for the fiscal first quarter increased to $6.4 million compared to $2.8 million in the same period a year ago. The Company?s operating margin improved to 4.2% versus 3.5% last year.
Net income for the fiscal first quarter was $3.4 million, or $0.24 per diluted share, as compared to net income of $0.8 million, or $0.12 per diluted share, for the first quarter last year.
?We are very pleased with our overall financial and operational results in the first quarter of fiscal 2009,? said David Meyer, Titan Machinery?s Chairman and Chief Executive Officer. ?First quarter sales and gross profit increased in all three of our main revenue sources ? equipment, parts, and services. The higher margin parts and service revenue represented 46% of total gross profit for the first quarter. A longer than normal planting season, our proven operating model, and the robust agriculture economy all contributed to a strong first quarter.?
Mr. Meyer added, ?We are continuing to see an overall strong agriculture economy. As an example, large agricultural equipment sales for the overall industry in North America (including high horsepower tractors and combines), were up between 20% to 35% year to date through April.?
Acquisitions and Follow-On Offering
Peter Christianson, the Company?s President and Chief Financial Officer said, ?Our recent successful follow-on offering has us well positioned to take advantage of the many long-term growth opportunities both organically and through acquisitions in our targeted agricultural and construction markets. In fiscal 2009 to date, we have closed three acquisitions consisting of eight stores with historical revenues of $74 million. This brings our total store count to 48.?
Ceres Equipment Inc., with one store in Roseau, Minnesota, is a farm equipment dealership selling the CaseIH and New Holland brands. Titan's acquisition of Ceres was effective as of February 1, 2008. Ceres reported revenue of $11 million during its most recently completed fiscal year ended December 31, 2007.
Quad County Implement, Inc., with one store in Blairstown, Iowa, is a farm equipment dealership selling the CaseIH brand. This acquisition was effective on May 1, 2008. Strategically located in contiguous markets to the Company?s Waverly store and Grundy Center store in Iowa, this acquisition expands the Company?s footprint in some of the most productive farmland in Iowa. Blairstown reported revenues of $14.8 million during its most recently completed fiscal year ended June 30, 2007.
Mid-Land Equipment Company, L.C., with six stores in Iowa and Nebraska, is a dealership selling the Case Construction (CE) Equipment. This acquisition closed on May 28, 2008. Mid-Land Equipment has locations in Des Moines, Davenport, Clear Lake and Cedar Rapids, Iowa and Omaha and Lincoln, Nebraska. Mid-Land reported revenues of $48.3 million during its most recently completed fiscal year ended December 31, 2007. The six Mid-Land Case CE stores are contiguous to existing Titan Machinery Case CE stores in South Dakota and strategically overlay the existing nine Titan Machinery CaseIH agricultural stores in Iowa.
Successful Follow-on Offering:
On May 16, 2008 the Company completed a follow-on public offering of its common stock. The Company received approximately $78.7 million of net proceeds as a result of this offering of approximately 4.8 million shares of common stock, which included 650,000 shares sold by selling shareholders, priced at $20.00 per share.
The Company evaluates its financial performance based on its customers? annual production cycles as opposed to a quarterly basis, due to weather fluctuations and the seasonal nature of the Company?s business. Based on this criteria, the Company is raising its revenue outlook for the full year ending January 31, 2009 to a range of $575 million to $625 million, compared to previously issued guidance of $550 million to $600 million. Weighted average diluted shares outstanding for the fiscal year ending January 31, 2009 will increase from approximately 13.8 million to approximately 16.9 million due to the recent follow-on offering. The Company is raising its net income expectation to a range of $14.6 million to $15.5 million from a previous range of $12.0 million to $12.7 million. The Company is raising its EPS guidance from $0.77 to $0.82 (adjusted for the impact of the follow-on offering) to $0.86 to $0.91.
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