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Jan 31, 2022
Titan Machinery Q4 2022 Earnings Report
Delivered record earnings through sound management of dealership network.
Key Takeaways
Titan Machinery Inc. reported an exceptional fiscal year 2022, delivering record earnings and significant operating leverage across all business segments. The company's strong balance sheet has provided greater flexibility for accretive acquisitions.
Revenue for the fourth quarter of fiscal 2022 was $507.6 million, compared to $436.7 million in the fourth quarter last year.
Net income for the fourth quarter of fiscal 2022 was $22.4 million, or earnings per diluted share of $0.99, compared to fiscal 2021 fourth quarter net income of $0.8 million and earnings per diluted share of $0.03.
Agriculture segment revenue for the fourth quarter of fiscal 2022 was $346.3 million, compared to $303.2 million in the fourth quarter last year.
Construction segment revenue for the fourth quarter of fiscal 2022 was $87.9 million, compared to $88.9 million in the fourth quarter last year.
Titan Machinery
Titan Machinery
Titan Machinery Revenue by Segment
Revenue by Segment
Agriculture Revenue
CapyFin.comConstruction Revenue
CapyFin.com Forward Guidance
The Company provided its current expectations for fiscal 2023 modeling assumptions, including segment revenue and diluted EPS.
Positive Outlook
- Agriculture segment revenue is expected to be up 22-27%, including the full year impact of the Jaycox and Mark's Machinery acquisitions.
- Adjusting full year fiscal 2022 net sales by approximately $73 million, representing the fiscal 2022 net sales of these divested stores, results in a same-store sales assumption of up approximately 8-13% for the Construction segment.
- Strong industry fundamentals.
- Team's continuous improvement efforts.
- Diluted EPS is expected to be $2.55 - $2.85
Challenges Ahead
- Construction segment revenue is expected to be down 12-17%, including the full year impact of the Montana and Wyoming divestiture in January 2022 and the North Dakota divestiture in March 2022.
- International segment revenue is expected to be down 8-13%, including a reduction in revenue of approximately 75% from our Ukraine subsidiary compared to fiscal 2022.
- Challenges around inflation remain in focus.
- Challenges around the supply chain remain in focus.
- Includes an estimated loss of approximately $0.25 per share for our Ukraine subsidiary.
Revenue & Expenses
Visualization of income flow from segment revenue to net income