11.06.2014

Titan loss grows on higher revenues

US based equipment distributor Titan Machinery saw its losses deepen in the first quarter in spite of solid revenue improvements.

Total revenue for the quarter was $465.5 million, over five percent higher than a year ago, with gains in all sectors. The pre-tax loss increased though from $997,000 last year to $6.3 million this year.

Chief executive David Meyer said: “In the first quarter, we focused on executing on our initiatives. We achieved adjusted operating cash flow of $10.7 million, and based on our year-to-date results and outlook for the remainder of the year, we are reiterating our fiscal 2015 annual revenue, net income, and operating cash flow outlook.”

“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. Our Construction segment same store sales in the first quarter increased 24.4% on a year-over-year basis, reflecting the improvements we began implementing in the second half of last fiscal year as well as improvements in the industry.”

"We remain focused on continued execution across all business segments, including inventory reductions and further improvements in operating cash flow, by managing the controllable aspects of our business and positioning our company for future opportunities.”