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TITAN MACHINERY INC. Reports Operating Results (10-Q)

June 09, 2010 | About:
10qk

10qk

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TITAN MACHINERY INC. (TITN) filed Quarterly Report for the period ended 2010-04-30.

Titan Machinery Inc. has a market cap of $233 million; its shares were traded at around $13.1 with a P/E ratio of 14.9 and P/S ratio of 0.3. TITN is in the portfolios of Pioneer Investments.

Highlight of Business Operations:

Our net income was $1.6 million, or $0.09 per diluted share, for the three months ended April 30, 2010, compared to $1.8 million, or $0.10 per diluted share, for the three months ended April 30, 2009. Significant factors impacting the quarterly comparisons were:

The increase in revenue for the three months ended April 30, 2010, as compared to the same period last year, was due to acquisitions contributing $16.1 million and same-store sales growth contributing $23.1 million to current period revenue. This revenue growth was in both our Agriculture and Construction segments and resulted from the continuation of a strong agriculture equipment market and execution of our fiscal 2011 Construction business action plan in the first quarter of fiscal 2011.

The increase in cost of revenue for the three months ended April 30, 2010, as compared to the same period last year, was primarily due to increased revenue. Acquisitions contributed $13.6 million of the increase in total cost of revenue, while same-store sales growth contributed $19.6 million of the increase. As a percentage of revenue, cost of revenue was 83.2% compared to 82.9% for the first quarter of fiscal 2010.

The $5.9 million increase in gross profit for the three months ended April 30, 2010, as compared to the same period last year, was primarily due to increased revenue. Acquisitions contributed $2.4 million to the increase in gross profit for the three months ended April 30, 2010, while increases in same-store gross profits contributed the remaining $3.5 million. Gross profit margins were 16.8% for the first quarter of fiscal 2011, compared to 17.1% for the first quarter of fiscal 2010. The decrease in gross profit margin on equipment revenues from 10.1% for the first quarter of fiscal 2010 to 9.0% for the first quarter of fiscal 2011 is reflective of increased pricing pressures from our competition experienced in the agriculture market in the first quarter of fiscal 2011 compared to the same period last year.

Read the The complete Report

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