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Delaware
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No. 45-0357838
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(State or Other Jurisdiction of
Incorporation or Organization)
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(IRS Employer
Identification No.)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if smaller reporting company)
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Insert Title Here
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Page No.
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April 30, 2014
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January 31, 2014
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||||
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(Unaudited)
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||||
Assets
|
|
|
|
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|||
Current Assets
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|
|
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||||
Cash
|
$
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82,011
|
|
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$
|
74,242
|
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Receivables, net
|
79,895
|
|
|
97,894
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|
||
Inventories
|
1,116,977
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|
|
1,075,978
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||
Prepaid expenses and other
|
17,392
|
|
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24,740
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||
Income taxes receivable
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6,173
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|
851
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||
Deferred income taxes
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13,441
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|
13,678
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||
Total current assets
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1,315,889
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1,287,383
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Intangibles and Other Assets
|
|
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||||
Noncurrent parts inventories
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5,085
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|
5,098
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Goodwill
|
24,751
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|
24,751
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|
||
Intangible assets, net of accumulated amortization
|
11,582
|
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11,750
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Other
|
7,555
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7,666
|
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||
Total intangibles and other assets
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48,973
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|
|
49,265
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Property and Equipment, net of accumulated depreciation
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231,780
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|
228,000
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Total Assets
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$
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1,596,642
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|
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$
|
1,564,648
|
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||||
Liabilities and Stockholders' Equity
|
|
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||||
Current Liabilities
|
|
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||||
Accounts payable
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$
|
26,138
|
|
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$
|
23,714
|
|
Floorplan payable
|
798,542
|
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|
750,533
|
|
||
Current maturities of long-term debt
|
35,990
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|
|
2,192
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||
Customer deposits
|
36,384
|
|
|
61,286
|
|
||
Accrued expenses
|
43,634
|
|
|
36,968
|
|
||
Income taxes payable
|
3
|
|
|
344
|
|
||
Total current liabilities
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940,691
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|
875,037
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Long-Term Liabilities
|
|
|
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||||
Senior convertible notes
|
129,728
|
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|
128,893
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||
Long-term debt, less current maturities
|
66,690
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|
95,532
|
|
||
Deferred income taxes
|
46,854
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|
|
47,329
|
|
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Other long-term liabilities
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7,360
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6,515
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||
Total long-term liabilities
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250,632
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278,269
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Commitments and Contingencies
|
|
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Stockholders' Equity
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|
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||||
Common stock, par value $.00001 per share, 45,000 shares authorized; 21,253 shares issued and outstanding at April 30, 2014; 21,261 shares issued and outstanding at January 31, 2014
|
—
|
|
|
—
|
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||
Additional paid-in-capital
|
238,795
|
|
|
238,857
|
|
||
Retained earnings
|
165,380
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|
|
169,575
|
|
||
Accumulated other comprehensive income (loss)
|
(1,278
|
)
|
|
339
|
|
||
Total Titan Machinery Inc. stockholders' equity
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402,897
|
|
|
408,771
|
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Noncontrolling interest
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2,422
|
|
|
2,571
|
|
||
Total stockholders' equity
|
405,319
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|
|
411,342
|
|
||
Total Liabilities and Stockholders' Equity
|
$
|
1,596,642
|
|
|
$
|
1,564,648
|
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Three Months Ended April 30,
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||||||
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2014
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2013
|
||||
Revenue
|
|
|
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||||
Equipment
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$
|
345,045
|
|
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$
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334,745
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Parts
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68,379
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|
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62,837
|
|
||
Service
|
37,084
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31,998
|
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Rental and other
|
14,955
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12,094
|
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Total Revenue
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465,463
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441,674
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Cost of Revenue
|
|
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||||
Equipment
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316,282
|
|
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303,823
|
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||
Parts
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48,014
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44,711
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Service
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14,403
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11,363
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||
Rental and other
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10,825
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|
7,829
|
|
||
Total Cost of Revenue
|
389,524
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|
367,726
|
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||
Gross Profit
|
75,939
|
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|
73,948
|
|
||
Operating Expenses
|
71,152
|
|
|
68,933
|
|
||
Realignment Costs
|
2,801
|
|
|
—
|
|
||
Income from Operations
|
1,986
|
|
|
5,015
|
|
||
Other Income (Expense)
|
|
|
|
||||
Interest income and other income (expense)
|
(224
|
)
|
|
597
|
|
||
Floorplan interest expense
|
(4,593
|
)
|
|
(3,442
|
)
|
||
Other interest expense
|
(3,441
|
)
|
|
(3,167
|
)
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||
Loss Before Income Taxes
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(6,272
|
)
|
|
(997
|
)
|
||
Benefit from Income Taxes
|
1,733
|
|
|
394
|
|
||
Net Loss Including Noncontrolling Interest
|
$
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(4,539
|
)
|
|
$
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(603
|
)
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Less: Net Loss Attributable to Noncontrolling Interest
|
(344
|
)
|
|
(189
|
)
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Net Loss Attributable to Titan Machinery Inc.
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$
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(4,195
|
)
|
|
$
|
(414
|
)
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Net Loss per Share - Note 1
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|
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||||
Net Loss per Share - Basic
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$
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(0.20
|
)
|
|
$
|
(0.02
|
)
|
Net Loss per Share - Diluted
|
$
|
(0.20
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)
|
|
$
|
(0.02
|
)
|
Weighted Average Common Shares - Basic
|
20,951
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|
|
20,854
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Weighted Average Common Shares - Diluted
|
20,951
|
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|
20,854
|
|
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Three Months Ended April 30,
|
||||||
|
2014
|
|
2013
|
||||
Net Loss Including Noncontrolling Interest
|
$
|
(4,539
|
)
|
|
$
|
(603
|
)
|
Other Comprehensive Income (Loss)
|
|
|
|
||||
Foreign currency translation adjustments
|
(1,220
|
)
|
|
(797
|
)
|
||
Unrealized gain (loss) on net investment hedge derivative instruments, net of tax expense (benefit) of ($498) and $314 for the three months ended April 30, 2014 and 2013, respectively
|
(747
|
)
|
|
471
|
|
||
Unrealized gain on interest rate swap cash flow hedge derivative instruments, net of tax expense of $2 for the three months ended April 30, 2014
|
3
|
|
|
—
|
|
||
Unrealized gain on foreign currency contract cash flow hedge derivative instruments, net of tax expense of $21 for the three months ended April 30, 2014
|
32
|
|
|
—
|
|
||
Reclassification of loss on foreign currency contract cash flow hedge derivative instruments included in net loss, net of tax expense of $5 for the three months ended April 30, 2014
|
9
|
|
|
—
|
|
||
Total Other Comprehensive Income (Loss)
|
(1,923
|
)
|
|
(326
|
)
|
||
Comprehensive Loss
|
(6,462
|
)
|
|
(929
|
)
|
||
Comprehensive Loss Attributable to Noncontrolling Interest
|
(650
|
)
|
|
(324
|
)
|
||
Comprehensive Loss Attributable To Titan Machinery Inc.
|
$
|
(5,812
|
)
|
|
$
|
(605
|
)
|
|
Common Stock
|
|
|
|
|
|
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
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Shares Outstanding
|
|
Amount
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Foreign Currency Translation Adjustments
|
|
Unrealized Gains (Losses) on Net Investment Hedges
|
|
Unrealized Gains (Losses) on Interest Rate Swap Cash Flow Hedges
|
|
Unrealized Gains (Losses) on Foreign Currency Contract Cash Flow Hedges
|
|
Total
|
|
Total Titan Machinery Inc. Stockholders' Equity
|
|
Noncontrolling Interest
|
|
Total Stockholders' Equity
|
|||||||||||||||||||||||
Balance, January 31, 2013
|
21,092
|
|
|
$
|
—
|
|
|
$
|
236,521
|
|
|
$
|
160,724
|
|
|
$
|
(226
|
)
|
|
$
|
(509
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(735
|
)
|
|
$
|
396,510
|
|
|
$
|
3,409
|
|
|
$
|
399,919
|
|
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards
|
11
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
272
|
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
470
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
470
|
|
|
—
|
|
|
470
|
|
|||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(414
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(414
|
)
|
|
(189
|
)
|
|
(603
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(662
|
)
|
|
471
|
|
|
—
|
|
|
—
|
|
|
(191
|
)
|
|
(191
|
)
|
|
(135
|
)
|
|
(326
|
)
|
|||||||||||
Total comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(605
|
)
|
|
(324
|
)
|
|
(929
|
)
|
|||||||||||
Balance, April 30, 2013
|
21,103
|
|
|
$
|
—
|
|
|
$
|
237,263
|
|
|
$
|
160,310
|
|
|
$
|
(888
|
)
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(926
|
)
|
|
$
|
396,647
|
|
|
$
|
3,085
|
|
|
$
|
399,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance, January 31, 2014
|
21,261
|
|
|
$
|
—
|
|
|
$
|
238,857
|
|
|
$
|
169,575
|
|
|
$
|
1,541
|
|
|
$
|
(339
|
)
|
|
$
|
(737
|
)
|
|
$
|
(126
|
)
|
|
$
|
339
|
|
|
$
|
408,771
|
|
|
$
|
2,571
|
|
|
$
|
411,342
|
|
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards
|
(8
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|||||||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
463
|
|
|||||||||||
Other
|
—
|
|
|
—
|
|
|
(502
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(502
|
)
|
|
501
|
|
|
(1
|
)
|
|||||||||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,195
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,195
|
)
|
|
(344
|
)
|
|
(4,539
|
)
|
|||||||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(914
|
)
|
|
(747
|
)
|
|
3
|
|
|
41
|
|
|
(1,617
|
)
|
|
(1,617
|
)
|
|
(306
|
)
|
|
(1,923
|
)
|
|||||||||||
Total comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,812
|
)
|
|
(650
|
)
|
|
(6,462
|
)
|
|||||||||||
Balance, April 30, 2014
|
21,253
|
|
|
$
|
—
|
|
|
$
|
238,795
|
|
|
$
|
165,380
|
|
|
$
|
627
|
|
|
$
|
(1,086
|
)
|
|
$
|
(734
|
)
|
|
$
|
(85
|
)
|
|
$
|
(1,278
|
)
|
|
$
|
402,897
|
|
|
$
|
2,422
|
|
|
$
|
405,319
|
|
|
Three Months Ended April 30,
|
||||||
|
2014
|
|
2013
|
||||
Operating Activities
|
|
|
|
||||
Net income including noncontrolling interest
|
$
|
(4,539
|
)
|
|
$
|
(603
|
)
|
Adjustments to reconcile net income including noncontrolling interest to net cash used for operating activities
|
|
|
|
||||
Depreciation and amortization
|
6,729
|
|
|
5,869
|
|
||
Deferred income taxes
|
232
|
|
|
171
|
|
||
Stock-based compensation expense
|
463
|
|
|
470
|
|
||
Noncash interest expense
|
1,151
|
|
|
1,108
|
|
||
Other, net
|
(636
|
)
|
|
619
|
|
||
Changes in assets and liabilities, net of purchase of equipment dealerships assets and assumption of liabilities
|
|
|
|
||||
Receivables, prepaid expenses and other assets
|
21,571
|
|
|
34,587
|
|
||
Inventories
|
(41,963
|
)
|
|
(102,258
|
)
|
||
Manufacturer floorplan payable
|
(17,308
|
)
|
|
65,525
|
|
||
Accounts payable, customer deposits, accrued expenses and other long-term liabilities
|
(14,639
|
)
|
|
(4,612
|
)
|
||
Income taxes
|
(5,663
|
)
|
|
(7,195
|
)
|
||
Net Cash Used for Operating Activities
|
(54,602
|
)
|
|
(6,319
|
)
|
||
Investing Activities
|
|
|
|
||||
Rental fleet purchases
|
(629
|
)
|
|
(329
|
)
|
||
Property and equipment purchases (excluding rental fleet)
|
(5,078
|
)
|
|
(5,454
|
)
|
||
Net proceeds from sale of property and equipment
|
471
|
|
|
237
|
|
||
Purchase of equipment dealerships, net of cash purchased
|
—
|
|
|
(4,848
|
)
|
||
Other, net
|
(887
|
)
|
|
771
|
|
||
Net Cash Used for Investing Activities
|
(6,123
|
)
|
|
(9,623
|
)
|
||
Financing Activities
|
|
|
|
||||
Net change in non-manufacturer floorplan payable
|
65,305
|
|
|
8,408
|
|
||
Proceeds from long-term debt borrowings
|
5,832
|
|
|
665
|
|
||
Principal payments on long-term debt
|
(2,505
|
)
|
|
(3,405
|
)
|
||
Other, net
|
(207
|
)
|
|
272
|
|
||
Net Cash Provided by Financing Activities
|
68,425
|
|
|
5,940
|
|
||
Effect of Exchange Rate Changes on Cash
|
69
|
|
|
(106
|
)
|
||
Net Change in Cash
|
7,769
|
|
|
(10,108
|
)
|
||
Cash at Beginning of Period
|
74,242
|
|
|
124,360
|
|
||
Cash at End of Period
|
$
|
82,011
|
|
|
$
|
114,252
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
||||
Cash paid during the period
|
|
|
|
||||
Income taxes, net of refunds
|
$
|
3,973
|
|
|
$
|
6,486
|
|
Interest
|
$
|
5,475
|
|
|
$
|
4,405
|
|
Supplemental Disclosures of Noncash Investing and Financing Activities
|
|
|
|
||||
Net property and equipment financed with long-term debt, accounts payable and accrued liabilities
|
$
|
1,100
|
|
|
$
|
4,285
|
|
Net transfer of assets to property and equipment from inventories
|
$
|
1,962
|
|
|
$
|
30,122
|
|
|
Three Months Ended April 30,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands, except per share data)
|
||||||
Numerator
|
|
|
|
||||
Net Loss Attributable to Titan Machinery Inc.
|
$
|
(4,195
|
)
|
|
$
|
(414
|
)
|
Less: Net Loss Allocated to Participating Securities
|
60
|
|
|
5
|
|
||
Net Loss Attributable to Titan Machinery Inc. Common Stockholders
|
$
|
(4,135
|
)
|
|
$
|
(409
|
)
|
Denominator
|
|
|
|
|
|
||
Basic Weighted-Average Common Shares Outstanding
|
20,951
|
|
|
20,854
|
|
||
Plus: Incremental Shares From Assumed Conversions of Stock Options
|
—
|
|
|
—
|
|
||
Diluted Weighted-Average Common Shares Outstanding
|
20,951
|
|
|
20,854
|
|
||
Net Loss per Share - Basic
|
$
|
(0.20
|
)
|
|
$
|
(0.02
|
)
|
Net Loss per Share - Diluted
|
$
|
(0.20
|
)
|
|
$
|
(0.02
|
)
|
|
April 30, 2014
|
|
January 31, 2014
|
||||
|
(in thousands)
|
||||||
New equipment
|
$
|
622,677
|
|
|
$
|
575,518
|
|
Used equipment
|
348,003
|
|
|
363,755
|
|
||
Parts and attachments
|
126,023
|
|
|
126,666
|
|
||
Work in process
|
20,274
|
|
|
10,039
|
|
||
|
$
|
1,116,977
|
|
|
$
|
1,075,978
|
|
|
April 30, 2014
|
|
January 31, 2014
|
||||
|
(in thousands)
|
||||||
Rental fleet equipment
|
$
|
146,956
|
|
|
$
|
145,007
|
|
Machinery and equipment
|
24,024
|
|
|
23,382
|
|
||
Vehicles
|
44,420
|
|
|
44,200
|
|
||
Furniture and fixtures
|
37,302
|
|
|
35,860
|
|
||
Land, buildings, and leasehold improvements
|
66,130
|
|
|
60,470
|
|
||
|
318,832
|
|
|
308,919
|
|
||
Less accumulated depreciation
|
(87,052
|
)
|
|
(80,919
|
)
|
||
|
$
|
231,780
|
|
|
$
|
228,000
|
|
|
April 30, 2014
|
|
January 31, 2014
|
||||
|
(in thousands except conversion
rate and conversion price)
|
||||||
Principal value
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Unamortized debt discount
|
(20,272
|
)
|
|
(21,107
|
)
|
||
Carrying value of senior convertible notes
|
$
|
129,728
|
|
|
$
|
128,893
|
|
|
|
|
|
||||
Carrying value of equity component, net of deferred taxes
|
$
|
15,546
|
|
|
$
|
15,546
|
|
|
|
|
|
||||
Conversion rate (shares of common stock per $1,000 principal amount of notes)
|
23.1626
|
|
|
23.1626
|
|
||
Conversion price (per share of common stock)
|
$
|
43.17
|
|
|
$
|
43.17
|
|
|
Three Months Ended April 30,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
Cash Interest Expense
|
|
|
|
||||
Coupon interest expense
|
$
|
1,406
|
|
|
$
|
1,406
|
|
Noncash Interest Expense
|
|
|
|
||||
Amortization of debt discount
|
835
|
|
|
779
|
|
||
Amortization of transaction costs
|
133
|
|
|
129
|
|
||
|
$
|
2,374
|
|
|
$
|
2,314
|
|
|
Notional Amount as of:
|
||||||
|
April 30, 2014
|
|
January 31, 2014
|
||||
|
(in thousands)
|
||||||
Net investment hedge:
|
|
|
|
||||
Foreign currency contracts
|
$
|
38,522
|
|
|
$
|
43,742
|
|
Cash flow hedges:
|
|
|
|
||||
Interest rate swap
|
100,000
|
|
|
100,000
|
|
||
Foreign currency contracts
|
1,490
|
|
|
4,754
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
||||
Foreign currency contracts
|
45,572
|
|
|
44,775
|
|
|
Fair Value as of:
|
|
Balance Sheet Location
|
||||||
|
April 30, 2014
|
|
January 31, 2014
|
|
|||||
|
(in thousands)
|
|
|
||||||
Asset Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Net investment hedges:
|
|
|
|
|
|
||||
Foreign currency contracts
|
$
|
—
|
|
|
$
|
157
|
|
|
Prepaid expenses and other
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Foreign currency contracts
|
—
|
|
|
279
|
|
|
Prepaid expenses and other
|
||
Total Asset Derivatives
|
$
|
—
|
|
|
$
|
436
|
|
|
|
|
|
|
|
|
|
||||
Liability Derivatives:
|
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Net investment hedges:
|
|
|
|
|
|
||||
Foreign currency contracts
|
$
|
175
|
|
|
$
|
—
|
|
|
Accrued expenses
|
Cash flow hedges:
|
|
|
|
|
|
||||
Interest rate swap
|
1,222
|
|
|
1,227
|
|
|
Accrued expenses
|
||
Foreign currency contracts
|
39
|
|
|
211
|
|
|
Accrued expenses
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Foreign currency contracts
|
196
|
|
|
—
|
|
|
Accrued expenses
|
||
Total Liability Derivatives
|
$
|
1,632
|
|
|
$
|
1,438
|
|
|
|
|
Three months ended April 30, 2014
|
|
Three months ended April 30, 2013
|
|
|
||||||||||||
|
Amount of Gain (Loss) Recognized in
|
|
Amount of Gain (Loss) Recognized in
|
|
|
||||||||||||
|
Other Comprehensive
Income |
|
Income
|
|
Other Comprehensive
Income |
|
Income
|
|
Income Statement
Classification
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
|
|
||||||||||||
Dervatives Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Net investment hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
$
|
(1,245
|
)
|
|
—
|
|
|
$
|
785
|
|
|
—
|
|
|
N/A
|
||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
||||
Foreign currency contracts
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
||||
Dervatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
—
|
|
|
(1,303
|
)
|
|
—
|
|
|
720
|
|
|
Interest and other income
|
||||
Total Derivatives
|
$
|
(1,187
|
)
|
|
$
|
(1,303
|
)
|
|
$
|
785
|
|
|
$
|
720
|
|
|
|
|
April 30, 2014
|
|
January 31, 2014
|
||||||||||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign currency contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
436
|
|
|
$
|
—
|
|
|
$
|
436
|
|
Total Financial Assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
436
|
|
|
$
|
—
|
|
|
$
|
436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swap
|
$
|
—
|
|
|
$
|
1,222
|
|
|
$
|
—
|
|
|
$
|
1,222
|
|
|
$
|
—
|
|
|
$
|
1,227
|
|
|
$
|
—
|
|
|
$
|
1,227
|
|
Foreign currency contracts
|
—
|
|
|
410
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
||||||||
Total Financial Liabilities
|
$
|
—
|
|
|
$
|
1,632
|
|
|
$
|
—
|
|
|
$
|
1,632
|
|
|
$
|
—
|
|
|
$
|
1,438
|
|
|
$
|
—
|
|
|
$
|
1,438
|
|
|
April 30, 2014
|
|
January 31, 2014
|
||||||||||||||||||||
|
Estimated Fair Value
|
|
Carrying Value
|
|
Face Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Face Value
|
||||||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||||||||||
Senior convertible notes
|
$
|
130,835
|
|
|
$
|
129,728
|
|
|
$
|
150,000
|
|
|
$
|
128,522
|
|
|
$
|
128,893
|
|
|
$
|
150,000
|
|
|
Three Months Ended April 30,
|
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
Revenue
|
|
|
|
||||
Agriculture
|
$
|
352,648
|
|
|
$
|
360,344
|
|
Construction
|
101,879
|
|
|
82,841
|
|
||
International
|
30,341
|
|
|
27,730
|
|
||
Segment revenue
|
484,868
|
|
|
470,915
|
|
||
Eliminations
|
(19,405
|
)
|
|
(29,241
|
)
|
||
Total
|
$
|
465,463
|
|
|
$
|
441,674
|
|
|
|
|
|
||||
Income (Loss) Before Income Taxes
|
|
|
|
||||
Agriculture
|
$
|
3,318
|
|
|
$
|
7,999
|
|
Construction
|
(5,775
|
)
|
|
(6,538
|
)
|
||
International
|
(3,065
|
)
|
|
(526
|
)
|
||
Segment income (loss) before income taxes
|
(5,522
|
)
|
|
935
|
|
||
Shared Resources
|
(873
|
)
|
|
(1,238
|
)
|
||
Eliminations
|
123
|
|
|
(694
|
)
|
||
Loss Before Income Taxes
|
$
|
(6,272
|
)
|
|
$
|
(997
|
)
|
|
April 30, 2014
|
|
January 31, 2014
|
||||
|
(in thousands)
|
||||||
Total Assets
|
|
|
|
||||
Agriculture
|
$
|
874,217
|
|
|
$
|
943,212
|
|
Construction
|
411,641
|
|
|
308,525
|
|
||
International
|
224,456
|
|
|
195,534
|
|
||
Segment assets
|
1,510,314
|
|
|
1,447,271
|
|
||
Shared Resources
|
89,318
|
|
|
120,335
|
|
||
Eliminations
|
(2,990
|
)
|
|
(2,958
|
)
|
||
Total
|
$
|
1,596,642
|
|
|
$
|
1,564,648
|
|
|
Total Amount Expected to be Incurred
|
|
Amount Incurred During Three Months Ended April 30, 2014
|
|
Income Statement Classification
|
||||
|
(in thousands)
|
|
|
||||||
Construction Segment
|
|
|
|
|
|
||||
Lease termination costs
|
$
|
1,518
|
|
|
$
|
1,518
|
|
|
Realignment Costs
|
Employee severance costs
|
451
|
|
|
451
|
|
|
Realignment Costs
|
||
Impairment of fixed assets
|
152
|
|
|
152
|
|
|
Realignment Costs
|
||
Asset relocation and other closing costs
|
728
|
|
|
165
|
|
|
Realignment Costs
|
||
|
$
|
2,849
|
|
|
$
|
2,286
|
|
|
|
Agriculture Segment
|
|
|
|
|
|
||||
Lease termination costs
|
$
|
114
|
|
|
$
|
114
|
|
|
Realignment Costs
|
Employee severance costs
|
71
|
|
|
71
|
|
|
Realignment Costs
|
||
Impairment of fixed assets
|
85
|
|
|
85
|
|
|
Realignment Costs
|
||
Asset relocation and other closing costs
|
72
|
|
|
32
|
|
|
Realignment Costs
|
||
Inventory cost adjustments
|
404
|
|
|
404
|
|
|
Equipment Cost of Sales
|
||
|
$
|
746
|
|
|
$
|
706
|
|
|
|
Shared Resource Center
|
|
|
|
|
|
||||
Employee severance costs
|
$
|
213
|
|
|
$
|
213
|
|
|
Realignment Costs
|
|
$
|
213
|
|
|
$
|
213
|
|
|
|
Total
|
|
|
|
|
|
||||
Lease termination costs
|
$
|
1,632
|
|
|
$
|
1,632
|
|
|
Realignment Costs
|
Employee severance costs
|
735
|
|
|
735
|
|
|
Realignment Costs
|
||
Impairment of fixed assets
|
237
|
|
|
237
|
|
|
Realignment Costs
|
||
Asset relocation and other closing costs
|
800
|
|
|
197
|
|
|
Realignment Costs
|
||
Inventory cost adjustments
|
404
|
|
|
404
|
|
|
Equipment Cost of Sales
|
||
|
$
|
3,808
|
|
|
$
|
3,205
|
|
|
|
|
Amount
|
||
|
(in thousands)
|
||
Balance, January 31, 2014
|
$
|
548
|
|
Exit costs incurred and charged to expense
|
|
||
Lease termination costs
|
1,598
|
|
|
Employee severance costs
|
735
|
|
|
Exit costs paid
|
|
||
Lease termination costs
|
(51
|
)
|
|
Employee severance costs
|
(544
|
)
|
|
Adjustments
|
|
||
Lease termination costs
|
76
|
|
|
Balance, April 30, 2014
|
$
|
2,362
|
|
•
|
Revenue increased
5.4%
for the
first
quarter of fiscal
2015
, as compared to the
first
quarter last year, primarily from an increase in Construction same-store sales, and partially offset by a decrease in Agriculture same-store sales;
|
•
|
Total gross profit margin decreased to
16.3%
for the
first
quarter of fiscal
2015
, as compared to
16.7%
for the
first
quarter of fiscal
2014
, primarily caused by decreases in the gross profit margin on equipment and rental and other, and offset by the positive effects of a change in gross profit mix to our higher-margin parts and service business;
|
•
|
Realignment costs totaling
$3.2 million
were recognized during the first quarter of fiscal 2015 related to the headcount reductions and closing of seven Construction stores and one Agriculture store; and
|
•
|
Floorplan interest expense increased in the first quarter of fiscal 2015, as compared to the same period last year, due to higher floorplan payable balances resulting from growth in our equipment inventory, primarily in our International segment.
|
|
Three Months Ended April 30,
|
||||
|
2014
|
|
2013
|
||
Revenue
|
|
|
|
||
Equipment
|
74.1
|
%
|
|
75.9
|
%
|
Parts
|
14.7
|
%
|
|
14.2
|
%
|
Service
|
8.0
|
%
|
|
7.2
|
%
|
Rental and other
|
3.2
|
%
|
|
2.7
|
%
|
Total Revenue
|
100.0
|
%
|
|
100.0
|
%
|
Total Cost of Revenue
|
83.7
|
%
|
|
83.3
|
%
|
Gross Profit
|
16.3
|
%
|
|
16.7
|
%
|
Operating Expenses
|
15.3
|
%
|
|
15.6
|
%
|
Realignment Costs
|
0.6
|
%
|
|
—
|
%
|
Income from Operations
|
0.4
|
%
|
|
1.1
|
%
|
Other Income (Expense)
|
(1.7
|
)%
|
|
(1.3
|
)%
|
Loss Before Income Taxes
|
(1.3
|
)%
|
|
(0.2
|
)%
|
Benefit from Income Taxes
|
0.3
|
%
|
|
0.1
|
%
|
Net Loss Including Noncontrolling Interest
|
(1.0
|
)%
|
|
(0.1
|
)%
|
Less: Net Loss Attributable to Noncontrolling Interest
|
(0.1
|
)%
|
|
—
|
%
|
Net Loss Attributable to Titan Machinery Inc.
|
(0.9
|
)%
|
|
(0.1
|
)%
|
|
Three Months Ended April 30,
|
|
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
Increase
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Equipment
|
$
|
345,045
|
|
|
$
|
334,745
|
|
|
$
|
10,300
|
|
|
3.1
|
%
|
Parts
|
68,379
|
|
|
62,837
|
|
|
5,542
|
|
|
8.8
|
%
|
|||
Service
|
37,084
|
|
|
31,998
|
|
|
5,086
|
|
|
15.9
|
%
|
|||
Rental and other
|
14,955
|
|
|
12,094
|
|
|
2,861
|
|
|
23.7
|
%
|
|||
Total Revenue
|
$
|
465,463
|
|
|
$
|
441,674
|
|
|
$
|
23,789
|
|
|
5.4
|
%
|
|
Three Months Ended April 30,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|
||||||||||
Gross Profit
|
|
|
|
|
|
|
|
|||||||
Equipment
|
$
|
28,763
|
|
|
$
|
30,922
|
|
|
$
|
(2,159
|
)
|
|
(7.0
|
)%
|
Parts
|
20,365
|
|
|
18,126
|
|
|
2,239
|
|
|
12.4
|
%
|
|||
Service
|
22,681
|
|
|
20,635
|
|
|
2,046
|
|
|
9.9
|
%
|
|||
Rental and other
|
4,130
|
|
|
4,265
|
|
|
(135
|
)
|
|
(3.2
|
)%
|
|||
Total Gross Profit
|
$
|
75,939
|
|
|
$
|
73,948
|
|
|
$
|
1,991
|
|
|
2.7
|
%
|
Gross Profit Margin
|
|
|
|
|
|
|
|
|||||||
Equipment
|
8.3
|
%
|
|
9.2
|
%
|
|
(0.9
|
)%
|
|
(9.8
|
)%
|
|||
Parts
|
29.8
|
%
|
|
28.8
|
%
|
|
1.0
|
%
|
|
3.5
|
%
|
|||
Service
|
61.2
|
%
|
|
64.5
|
%
|
|
(3.3
|
)%
|
|
(5.1
|
)%
|
|||
Rental and other
|
27.6
|
%
|
|
35.3
|
%
|
|
(7.7
|
)%
|
|
(21.8
|
)%
|
|||
Total Gross Profit Margin
|
16.3
|
%
|
|
16.7
|
%
|
|
(0.4
|
)%
|
|
(2.4
|
)%
|
|||
Gross Profit Mix
|
|
|
|
|
|
|
|
|||||||
Equipment
|
37.9
|
%
|
|
41.8
|
%
|
|
(3.9
|
)%
|
|
(9.3
|
)%
|
|||
Parts
|
26.8
|
%
|
|
24.5
|
%
|
|
2.3
|
%
|
|
9.4
|
%
|
|||
Service
|
29.9
|
%
|
|
27.9
|
%
|
|
2.0
|
%
|
|
7.2
|
%
|
|||
Rental and other
|
5.4
|
%
|
|
5.8
|
%
|
|
(0.4
|
)%
|
|
(6.9
|
)%
|
|||
Total Gross Profit Mix
|
100.0
|
%
|
|
100.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
Three Months Ended April 30,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Operating Expenses
|
$
|
71,152
|
|
|
$
|
68,933
|
|
|
$
|
2,219
|
|
|
3.2
|
%
|
Operating Expenses as a Percentage of Revenue
|
15.3
|
%
|
|
15.6
|
%
|
|
(0.3
|
)%
|
|
(1.9
|
)%
|
|
Three Months Ended April 30,
|
|
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
Increase
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Realignment Costs
|
$
|
2,801
|
|
|
$
|
—
|
|
|
$
|
2,801
|
|
|
100.0
|
%
|
|
Three Months Ended April 30,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Interest income and other income (expense)
|
$
|
(224
|
)
|
|
$
|
597
|
|
|
$
|
(821
|
)
|
|
(137.5
|
)%
|
Floorplan interest expense
|
(4,593
|
)
|
|
(3,442
|
)
|
|
1,151
|
|
|
33.4
|
%
|
|||
Other interest expense
|
(3,441
|
)
|
|
(3,167
|
)
|
|
274
|
|
|
8.7
|
%
|
|
Three Months Ended April 30,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Benefit from Income Taxes
|
$
|
1,733
|
|
|
$
|
394
|
|
|
$
|
1,339
|
|
|
339.8
|
%
|
|
Three Months Ended April 30,
|
|
Increase/
|
|
Percent
|
|||||||||
|
2014
|
|
2013
|
|
(Decrease)
|
|
Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
352,648
|
|
|
$
|
360,344
|
|
|
$
|
(7,696
|
)
|
|
(2.1
|
)%
|
Construction
|
101,879
|
|
|
82,841
|
|
|
19,038
|
|
|
23.0
|
%
|
|||
International
|
30,341
|
|
|
27,730
|
|
|
2,611
|
|
|
9.4
|
%
|
|||
Segment revenue
|
484,868
|
|
|
470,915
|
|
|
13,953
|
|
|
3.0
|
%
|
|||
Eliminations
|
(19,405
|
)
|
|
(29,241
|
)
|
|
9,836
|
|
|
33.6
|
%
|
|||
Total
|
$
|
465,463
|
|
|
$
|
441,674
|
|
|
$
|
23,789
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Income (Loss) Before Income Taxes
|
|
|
|
|
|
|
|
|||||||
Agriculture
|
$
|
3,318
|
|
|
$
|
7,999
|
|
|
$
|
(4,681
|
)
|
|
(58.5
|
)%
|
Construction
|
(5,775
|
)
|
|
(6,538
|
)
|
|
763
|
|
|
11.7
|
%
|
|||
International
|
(3,065
|
)
|
|
(526
|
)
|
|
(2,539
|
)
|
|
(482.7
|
)%
|
|||
Segment income (loss) before income taxes
|
(5,522
|
)
|
|
935
|
|
|
(6,457
|
)
|
|
(690.6
|
)%
|
|||
Shared Resources
|
(873
|
)
|
|
(1,238
|
)
|
|
365
|
|
|
29.5
|
%
|
|||
Eliminations
|
123
|
|
|
(694
|
)
|
|
817
|
|
|
117.7
|
%
|
|||
Loss Before Income Taxes
|
$
|
(6,272
|
)
|
|
$
|
(997
|
)
|
|
$
|
(5,275
|
)
|
|
529.1
|
%
|
|
As Reported
|
|
Adjustment
|
|
Non-GAAP Measures
|
||||||
|
(in thousands)
|
||||||||||
Three Months Ended April 30, 2014
|
|
|
|
|
|
||||||
Net cash provided by (used for) operating activities
|
$
|
(54,602
|
)
|
|
$
|
65,305
|
|
|
$
|
10,703
|
|
Net cash provided by (used for) financing activities
|
68,425
|
|
|
(65,305
|
)
|
|
3,120
|
|
|||
|
|
|
|
|
|
||||||
Three Months Ended April 30, 2013
|
|
|
|
|
|
||||||
Net cash provided by (used for) operating activities
|
$
|
(6,319
|
)
|
|
$
|
8,408
|
|
|
$
|
2,089
|
|
Net cash provided by (used for) financing activities
|
5,940
|
|
|
(8,408
|
)
|
|
(2,468
|
)
|
Dated:
|
June 5, 2014
|
|
|
|
|
TITAN MACHINERY INC.
|
|
|
|
|
|
|
|
|
|
|
|
By
|
/s/ Mark Kalvoda
|
|
|
|
Mark Kalvoda
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
Exhibit No.
|
|
Description
|
|
|
|
*10.1
|
|
Form of Performance Award Agreement under the Titan Machinery Inc. 2014 Equity Incentive Plan.+
|
|
|
|
*10.2
|
|
Form of Restricted Stock Award Agreement (Directors) under the Titan Machinery Inc. 2014 Equity Incentive Plan.+
|
|
|
|
*10.3
|
|
Form of Restricted Stock Award Agreement (Officers) under the Titan Machinery Inc. 2014 Equity Incentive Plan.+
|
|
|
|
*10.4
|
|
Description of the Titan Machinery Inc. Long-Term Incentive Plan.+
|
|
|
|
*31.1
|
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
*31.2
|
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
*32.1
|
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
*32.2
|
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
**101
|
|
Financial statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended April 30, 2014, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Cash Flows, and (v) the Notes to the Consolidated Financial Statements.
|
|
i.
|
Disability, as determined under any long-term disability program then maintained by the Company or any of its Affiliates that is applicable to Participant; or
|
Grant Type:
|
|
_______________________
|
Target Number of RSU’s:
|
|
______________________
|
Maximum Number of RSU’s:
|
|
______________________
|
Grant Date:
|
|
______________________
|
Performance Period:
|
|
______________________
|
Performance Goals:
|
|
Set forth in
Exhibit 1
to the
20___ Performance Award Agreement |
Level of
Performance
|
Percentage of
Performance Award Vested
|
Below Threshold ROE
|
0%
|
Threshold ROE
|
25%
|
Target ROE
|
100%
|
|
/s/ David J. Meyer
|
|
David J. Meyer
|
|
Board Chair and Chief Executive Officer
|
|
/s/ Mark Kalvoda
|
|
Mark Kalvoda
|
|
Chief Financial Officer
|
|
/s/ David J. Meyer
|
|
David J. Meyer
|
|
Board Chair and Chief Executive Officer
|
|
/s/ Mark Kalvoda
|
|
Mark Kalvoda
|
|
Chief Financial Officer
|