Titan Machinery reported consolidated revenues of $1.3 billion for its fiscal year ended Jan. 31, 2019. This was up 5.8% vs. the same period for FY2018. Total equipment sales (Ag, CE and International) were $909.2 million for the year, up 7.6%. Part sales were up 3.7% during the full fiscal period, while service revenues declined by 2.2% and rental was also down by 2%.

Titan Machinery’s net income for fiscal 2019 was $12.2 million compared to net loss of $7 million for the prior year. Adjusted net income for fiscal 2019 was $14.7 million vs. an adjusted net loss of $2.7 million for the prior year. The company generated adjusted EBITDA of $49.8 million in fiscal 2019, representing an increase of 61.7% compared to adjusted EBITDA of $30.8 million in fiscal 2018.

Gross profit for the full fiscal year was $231.6 million vs. $215.3 million in fiscal year 2018, up 7.6%. Gross profit margin increased slightly in FY2016 to 18.4% compared to 18.1% in the previous year.

Ag equipment sales during the full fiscal year grew by 5.4% to $727 million vs. $690 million in the previous fiscal year. In the fourth quarter, ag equipment sales increased to $223.3 million compared to $204.5 million for the same period in the previous year, up 9.2%.

Titan Machinery — FY2019 Full Year Segment Overview
($ 0000)

  FY2019 FY2018 Change
Revenue $1,261.5 $1,192.6 +5.8%

Agriculture

 $726.8 $689.9 +5.4%

Construction

 $302.0 $293.9 +2.8%

International

 $232.7 $208.9 +11.4%


David Meyer, Titan Machinery's chairman and chief executive officer, said, "Our fiscal 2019 results as overall equipment margins increased 110 basis points and we drove top and bottom line improvements in all segments of our business. These improvements were the result of driving structural improvements in our inventory position and cost structure as well as our focus on customer service, particularly in the area of parts and service. Leveraging these efforts over expected sales increases in fiscal 2020 gives us confidence that we will be able to hit the midpoint of our adjusted earnings per share range, which represents nearly a 30% increase over the prior year."

FY2020 Outlook

Titan Machinery is looking for flat sales revenues for ag equipment in its 2020 fiscal year. The dealership group sees construction equipment sales up 0-5% and international revenue up 10-15%.

For Titan Machinery’s fourth quarter FY2019 earnings please go here.