Titan Machinery Inc. (TITN) saw its loss narrow to $8.24 million, or $0.38 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $35.05 million, or $1.62 a share. On the other hand, adjusted net loss for the quarter narrowed to $6.57 million, or $0.31 a share from a loss of $30.61 million or $1.31 a share, a year ago. Revenue during the quarter dropped 5.32 percent to $317.62 million from $335.47 million in the previous year period. Gross margin for the quarter expanded 1052 basis points over the previous year period to 15.37 percent. Operating margin for the quarter stood at negative 2.39 percent as compared to a negative 13.49 percent for the previous year period.
Operating loss for the quarter was $7.60 million, compared with an operating loss of $45.26 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $4.14 million compared to negative $35.51 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 1.30 percent for the quarter compared to negative 10.58 percent in the last year period.
David Meyer, Titan Machinerys chairman and chief executive officer, stated, "For fiscal 2017, we exceeded our inventory reduction plans and began implementing a restructuring plan that is consolidating certain dealership locations and reorganizing our operating structure. Throughout fiscal 2017, we took the necessary steps to manage through difficult operating conditions, including reducing our operating expenses and reducing our equipment inventory levels by $197 million, which enabled us to continue to generate solid adjusted cash flow from operations."
Operating cash flow drops significantlyTitan Machinery Inc. has generated cash of $141 million from operating activities during the year, down 39.20 percent or $90.89 million, when compared with the last year. The company has spent $9.12 million cash to meet investing activities during the year as against cash outgo of $0.13 million in the last year. It has incurred net capital expenditure of $10.04 million on net basis during the year, up 1,483.12 percent or $9.40 million from year ago.
The company has spent $167.98 million cash to carry out financing activities during the year as against cash outgo of $268.96 million in the last year period.
Cash and cash equivalents stood at $53.15 million as on Jan. 31, 2017, down 40.59 percent or $36.31 million from $89.46 million on Jan. 31, 2016.
Working capital declines
Titan Machinery Inc. has witnessed a decline in the working capital over the last year. It stood at $299.04 million as at Jan. 31, 2017, down 10.69 percent or $35.78 million from $334.82 million on Jan. 31, 2016. Current ratio was at 1.97 as on Jan. 31, 2017, up from 1.64 on Jan. 31, 2016.
Debt comes down significantly
Titan Machinery Inc. has recorded a decline in total debt over the last one year. It stood at $128.11 million as on Jan. 31, 2017, down 26.42 percent or $46 million from $174.11 million on Jan. 31, 2016. Total debt was 16.61 percent of total assets as on Jan. 31, 2017, compared with 16.62 percent on Jan. 31, 2016. Debt to equity ratio was at 0.40 as on Jan. 31, 2017, down from 0.51 as on Jan. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
