This morning, Titan Machinery Inc. (Nasdaq: TITN), the 71-store full-service agricultural and construction equipment dealership, reported an 8.5% increase in revenues compared with the same period of last year.
For the second quarter of fiscal 2011, revenue increased 8.5% to $209.7 million from revenue of $193.2 million in the second quarter last year. All three of the company’s main revenue sources — equipment, parts and service — contributed to this period-over-period revenue growth.
Equipment sales were $153.1 million for the second quarter of fiscal 2011, compared to $141.1 million in the second quarter last year. Parts sales were $33.9 million for the second quarter of fiscal 2011, compared to $32.5 million in the second quarter last year. Revenue generated from service was $17.5 million for the second quarter of fiscal 2011, compared to $15.6 million in the second quarter last year.
Revenue generated from the Titan’s agriculture segment was $181.5 million for the second quarter of fiscal 2011, compared to $170.4 million in the second quarter last year. Revenue generated from the company’s construction segment was $36.2 million for the second quarter of fiscal 2011, compared to $30.5 million in the second quarter last year.
Gross profit for the second quarter of fiscal 2011 was $36 million, approximately flat compared to the second quarter of last year. The company's gross profit margin was 17.2% in the fiscal second quarter of 2011, compared to 18.6% in the second quarter last year. The gross margin decrease was primarily due to lower equipment margins in the Agriculture and Construction businesses. Gross profit from parts and service revenue contributed 56% of overall gross profit for the second quarter of fiscal 2011, compared to 54% in the second quarter last year.
Pre-tax income for the second quarter of fiscal 2011 was $4.6 million, compared to $8.2 million in the second quarter last year. Pre-tax margin was 2.2% for the second quarter of fiscal 2011, compared to 4.3% in the second quarter last year. Pre-tax income for the Titan’s Ag segment was $6.2 million for the second quarter of fiscal 2011, compared to $10 million in the second quarter last year. Pre-tax loss for the company’s CE segment was $852,000 for the second quarter of fiscal 2011, compared to $785,000 in the second quarter last year.
Net income for the second quarter of fiscal 2011 was $2.7 million, compared to net income of $4.9 million in the second quarter last year. Earnings per diluted share for the second quarter of fiscal 2011 were $0.15 per diluted share on approximately 18.1 million shares outstanding, compared to $0.27 per diluted share on approximately 18.0 million shares outstanding in the second quarter last year.
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