Titan Machinery’s First Half Revenues Up

Titan Machinery Inc., a network of full-service agricultural and construction equipment stores, reported financial results for the second quarter of fiscal 2012, with revenue increasing 48.3% to $310.8 million from revenue of $209.7 million in the second quarter last year.

All three of the company’s main revenue sources, equipment, parts and service, contributed to this period-over-period revenue growth. Equipment sales were $225.3 million for the second quarter of fiscal 2012, compared to $153.1 million in the second quarter last year. Parts sales were $49.3 million for the second quarter of fiscal 2012, compared to $33.9 million in the second quarter last year. Revenue generated from service was $25.4 million for the second quarter of fiscal 2012, compared to $17.5 million in the second quarter last year.

Gross profit for the second quarter of fiscal 2012 was $55.9 million, compared to $36.0 million in the second quarter of last year. The company’s gross profit margin increased to 18.0% in the second quarter of fiscal 2012, compared to 17.2% in the second quarter last year, due to higher gross margins. Gross profit from parts and service revenue for the second quarter of fiscal 2012 increased to $31.3 million from $20.3 million in the second quarter of last year.

Operating expenses were 14.2% of revenue for the second quarter of fiscal 2012 compared to 13.9% for the second quarter of last year reflecting higher expenses related to the construction segment of the business. ◆