Titan Machinery Inc. (TITN) saw its loss widen to $5.93 million, or $0.27 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $3.68 million, or $0.17 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.17 million, or $0.19 a share from a loss of $4.78 million or $0.21 a share, a year ago.
Revenue during the quarter dropped 7.28 percent to $264.12 million from $284.86 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 18.52 percent. Operating margin for the quarter stood at negative 2.05 percent as compared to a negative 0.42 percent for the previous year period.
Operating loss for the quarter was $5.41 million, compared with an operating loss of $1.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.58 million compared with $1.84 million in the prior year period. At the same time, adjusted EBITDA margin contracted 5 basis points in the quarter to 0.60 percent from 0.65 percent in the last year period.
David Meyer, Titan Machinery's chairman and chief executive officer, stated, "Overall first quarter financial results were generally in line with our expectations. Due to the stabilizing Agriculture equipment inventory environment and the progress we have made in reducing our equipment inventory, we are seeing equipment margin improvement sooner than originally expected, as well as stronger equipment demand within our International segment. Offsetting these developments were higher than anticipated operating expenses due to delayed benefits resulting from our restructuring efforts. We are confident in our estimate that the restructuring initiative will result in annual expense reductions of $25 million, however due to later than anticipated implementation, the cost savings for fiscal 2018 will be less than previously expected."
Operating cash flow turns positive
Titan Machinery Inc. has generated cash of $40.93 million from operating activities during the quarter as against cash outgo of $24.87 million in the last year period. The company has spent $9.75 million cash to meet investing activities during the quarter as against cash outgo of $0.67 million in the last year period. It has incurred capital expenditure of $9.77 million on net basis during the quarter, up 1,256.94 percent or $9.05 million from year ago period.
The company has spent $28.17 million cash to carry out financing activities during the quarter as against cash outgo of $0.55 million in the last year period.
Cash and cash equivalents stood at stood at $56.24 million as at Apr. 30, 2017.
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