Titan Machinery reported final financial results for the fiscal fourth quarter and full year ended January 31, 2016. Q4 revenue was $335.5 million, compared to $490.7 million in Q4 last year.
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Equipment sales were $243.8 million for the fourth quarter of fiscal 2016, compared to $389.6 million in the fourth quarter last year. Parts sales were $47.9 million for the fourth quarter of fiscal 2016, compared to $50.7 million in the fourth quarter last year.
Revenue generated from service was $27.6 million for the fourth quarter of fiscal 2016, compared to $29.4 million in the fourth quarter last year. Revenue from rental and other was $16.1 million for the fourth quarter of fiscal 2016, compared to $21.0 million in the fourth quarter last year.
As previously announced, the company recorded an inventory impairment charge of $27.5 million, or $0.77 per diluted share, related to the marketing of certain aged equipment inventory through alternative channels rather than its normal retail channels as part of its expanded equipment inventory reduction plan.
Exclusive of the inventory impairment charge, the decrease in gross profit from $68.1 million in the fourth quarter last year to $16.3 million for the fourth quarter of fiscal 2016 was primarily due to the company's intensified efforts to sell aged equipment inventory in the current challenging market.
The company's gross profit margin was 4.8% in the fourth quarter of fiscal 2016, compared to 13.9% in the fourth quarter last year.
Operating expenses were $54.5 million or 16.3% of revenue for the fourth quarter of fiscal 2016, compared to $64.9 million or 13.2% of revenue for the fourth quarter of last year.
The $10.3 million decrease in operating expenses was primarily due to cost savings associated with the company's realignment activities implemented in the first quarter of fiscal 2016, which included the closing of four stores and other headcount reductions, and decreased commission expense resulting from lower equipment gross profit.
The increase in operating expenses as a percentage of revenue was primarily due to the deleveraging of fixed expenses as total revenue decreased from the prior year.
In the fourth quarter of fiscal 2016, the company recognized a $6.7 million non-cash charge, primarily related to impairment of long-lived assets within the Agriculture and Construction segments.
In the fourth quarter of fiscal 2015, the company recognized a non-cash charge of $31.0 million primarily related to impairment of goodwill and other intangible assets within the Agriculture segment.
Floorplan interest expense decreased to $4.4 million for the fourth quarter of fiscal 2016, compared to $5.1 million for the same period last year, primarily due to a decrease in our average interest-bearing inventory in fiscal 2016.
The company generated an adjusted EBITDA of $(35.5) million for the fourth quarter of fiscal 2016, compared to adjusted EBITDA of $6.0 million for the same period of the prior year. Adjusted EBITDA for the fourth quarter of fiscal 2016 was negatively impacted by its efforts to sell aged equipment inventory.
Pre-tax loss was $52.6 million for the fourth quarter of fiscal 2016, compared to pre-tax loss of $37.2 million in the fourth quarter last year.
Pre-tax loss for the fourth quarter of fiscal 2016 included the $27.5 million impact from the equipment inventory impairment charges as well as a $6.7 million impairment charge related to long-lived assets.
Pre-tax loss for the fourth quarter of fiscal 2015 included non-cash impairment charges of $31.0 million primarily related to goodwill and other intangible assets within the Agriculture segment.
Revenue was $1.37 billion for fiscal 2016, compared to $1.90 billion for the prior year.
Net loss attributable to common stockholders for fiscal 2016 was $37.2 million, or $1.76 per diluted share, compared to net loss attributable to common stockholders of $31.6 million, or $1.51 per diluted share, for the prior year.
Adjusted net loss attributable to common stockholders for fiscal 2016 was $26.5 million, or $1.25 per diluted share, compared to adjusted net loss of $1.9 million, or $0.09 per diluted share, for the prior year.
The company generated an adjusted EBITDA of $(3.0) million in fiscal 2016, compared to adjusted EBITDA of $47.6 million in fiscal 2015. ■