Titan Machinery Q1 Adj. Loss Wider Than View, Affirms 2015 Outlook

(RTTNews) - Titan Machinery Inc. (TITN), an operator of full-service agricultural and construction equipment stores, on Thursday reported a loss for the first quarter that widened from last year, as higher revenues were more than offset by store-closing costs related to the company's construction segment.

Adjusted loss per share for the quarter was wider than analysts' estimates, while revenues beat their expectations. Looking ahead, the company affirmed its adjusted earnings and revenue outlook for fiscal 2015.

Titan Machinery has been posting weak profits due to lower margins and continues to grapple with challenges in the agriculture and construction industries.

David Meyer, Titan Machinery's CEO said, "In the first quarter, we completed the realignment and consolidation of our Construction segment. We believe this improves the overall foundation of our business and beginning in the second quarter we are realizing the cost savings associated with the realignment."

Meyer noted that the company's construction segment same-store sales in the quarter increased 24.4 percent on a year-over-year basis, reflecting the improvements the company began to implement in the second half of last fiscal year as well as improvements in the industry.

West Fargo, North Dakota-based Titan Machinery's net loss for the first quarter was $4.14 million or $0.20 per share, wider than loss of $0.41 million or $0.02 per share in the year-ago period. The latest quarter's results include after-tax store closing costs of $1.9 million, associated with the company's previously announced Construction segment realignment.

Adjusted net loss for the quarter was $2.22 million or $0.11 per share, compared to adjusted net loss of $0.41 million or $0.02 per share in the prior-year quarter. On average, 10 analysts polled by Thomson Reuters expected the company to report loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 5 percent to $465.46 million from $441.67 million in the same period last year. Analysts had a consensus revenue estimate of $411.52 million for the quarter.

Equipment sales for the quarter rose 3 percent from last year to $345.0 million, while parts sales increased 9 percent to $68.38 million. Revenue generated from service grew 16 percent to $37.08 million and revenue from rental and other increased 24 percent to $14.96 million.

Gross profit margin for the quarter was 16.3 percent, compared to 16.7 percent in the same quarter last year.

Looking ahead to fiscal 2015, Titan Machinery affirmed its outlook for adjusted earnings between $0.70 and $1.00 per share, and revenues of $1.95 billion to $2.15 billion. Analysts expect the company to report earnings of $0.82 per share for the year on revenue of $2.07 billion.

The company now forecasts full-year reported earnings in a range of $0.59 to $0.89 per share, compared to the prior range of $0.58 to $0.88 per share.

TITN closed Wednesday's trading at $17.61. In Thursday's pre-market, the stock is up $0.49 or 2.78 percent to $18.10.