- Company Exceeds Revenue, Net Income and Diluted EPS Guidance Range for Fiscal 2012 -

- Fourth Quarter Revenue Increased 65% to $607 Million and Earnings Per Diluted Share Grew to $0.84 -

- Company Continued to Execute on Acquisition Strategy in Upper Midwest and Internationally -

- Company Issues Fiscal 2013 Guidance –

 WEST FARGO, N.D. — (BUSINESS WIRE) — April 11, 2012 — Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal fourth quarter and full year ended January 31, 2012.

Fiscal 2012 Fourth Quarter Results

For the fourth quarter of fiscal 2012, revenue increased 64.9% to $607.0 million from revenue of $368.1 million in the fourth 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 $517.1 million for the fourth quarter of fiscal 2012, compared to $310.9 million in the fourth quarter last year. Parts sales were $45.7 million for the fourth quarter of fiscal 2012, compared to $29.9 million in the fourth quarter last year. Revenue generated from service was $27.3 million for the fourth quarter of fiscal 2012, compared to $19.6 million in the fourth quarter last year.

Gross profit for the fourth quarter of fiscal 2012 was $92.8 million, compared to $56.1 million in the fourth quarter last year. The Company’s gross profit margin was 15.3% in the fourth quarter of fiscal 2012, compared to 15.2% in the fourth quarter last year. Gross profit from parts, service and rental revenue for the fourth quarter of fiscal 2012 increased to $35.9 million from $22.0 million in the fourth quarter of last year.

Operating expenses decreased to 9.9% of revenue for the fourth quarter of fiscal 2012, compared to 10.5% for the fourth quarter of last year, reflecting improved fixed operating cost leverage.

Pre-tax income for the fourth quarter of fiscal 2012 was $29.6 million, compared to $17.2 million in the fourth quarter last year. Pre-tax margin was 4.9% for the fourth quarter of fiscal 2012, compared to 4.7% in the fourth quarter last year. Pre-tax Agriculture segment income was $30.4 million for the fourth quarter of fiscal 2012, compared to $18.6 million in the fourth quarter last year. Pre-tax Construction segment income was $1.0 million for the fourth quarter of fiscal 2012, compared to a loss of $0.5 million in the fourth quarter last year.

Net income attributable to common stockholders for the fourth quarter of fiscal 2012 was $17.6 million, compared to $10.3 million in the fourth quarter last year. Earnings per diluted share for the fourth quarter of fiscal 2012 were $0.84 on approximately 20.9 million weighted average diluted common shares outstanding, compared to $0.57 on approximately 18.1 million weighted average diluted common shares outstanding in the fourth quarter last year. The increase in weighted average diluted common shares outstanding was primarily due to the Company’s May 2011 follow-on offering.

Fiscal 2012 Full Year Results

For the full year ended January 31, 2012, revenue increased 51.6% to $1.66 billion from $1.09 billion for fiscal 2011. Gross margin for fiscal 2012 was 16.6%, compared to 15.9% in fiscal 2011. Pre-tax income for fiscal 2012 was $73.6 million for a pre-tax margin of 4.4%, compared to $37.2 million, or a pre-tax margin of 3.4%, for fiscal 2011. Net income attributable to common stockholders for fiscal 2012 was $43.8 million, or $2.18 per diluted share, compared to $22.1 million, or $1.23 per diluted share, for fiscal 2011. The weighted average diluted common shares outstanding for fiscal 2012 were 20.1 million, compared to 18.0 million weighted average diluted common shares outstanding for fiscal 2011.

Balance Sheet

The Company ended fiscal 2012 with cash and cash equivalents of $79.8 million. Working capital as of January 31, 2012 was $259.1 million. The Company’s inventory level was $748.0 million as of January 31, 2012, compared to $429.8 million at the end of fiscal 2011 and $738.3 million as of October 31, 2011. The increase in inventory primarily reflects an increase in new equipment to support the Company’s revenue outlook for fiscal 2013. The Company had available $182.8 million of its $700 million total discretionary floorplan lines of credit as of January 31, 2012. The total floorplan lines were expanded to $800 million in March when the Company increased its floorplan line under its senior secured credit facility with a group of banks led by Wells Fargo Bank, National Association.

Management Comments

David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, “We are pleased with our strong fourth quarter and full year results, as we delivered another record year of revenue and net income for Titan Machinery. In fiscal 2012, we generated strong organic and acquired growth, as a result of several factors, including the continuation of a robust agriculture equipment market, an improved construction equipment market in the region in which we do business, and growth in our construction equipment rental business. In the fourth quarter, equipment demand was driven by strong net farm income for calendar year 2011 and an improving construction market, enabling us to exceed our fiscal 2012 annual revenue and net income guidance.”

Source: Titan Machinery Press Release