Titan Machinery Inc. Announces Results for Fiscal Third Quarter Ended October 31, 2022

- Revenue for Third Quarter of Fiscal 2023 Increased 47.3% to $668.8 million -

- Third Quarter of Fiscal 2023 EPS Increased 88% to a Record $1.82 -

- Increases Fiscal 2023 EPS Modeling Assumption in Range of $4.55-$4.85 -

WEST FARGO, N.D., Nov. 30, 2022 (GLOBE NEWSWIRE) -- Titan Machinery Inc. (Nasdaq: TITN), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal third quarter ended October 31, 2022.

David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, "We delivered another consecutive quarter of record financial results, with third quarter earnings per share of $1.82. The ongoing strength of the agriculture sector combined with our customer-centric focus drove consolidated revenue growth of 47%, which was supported by strong contribution across each of our revenue streams — equipment, parts and service. Our business continues to operate with great efficiency, allowing us to drive significant operating leverage on the higher levels of revenue that we have achieved. This is demonstrated in our record consolidated pre-tax margin of 8.2% that we delivered in the fiscal third quarter, with each of our operating segments experiencing pre-tax margin expansion.   Given these strong third quarter results, coupled with our expectations for the solid market fundamentals continuing through the fourth quarter, we are increasing our earnings per share modeling assumption for fiscal year 2023 to a midpoint of $4.70 per share."

Fiscal 2023 Third Quarter Results

Consolidated Results

For the third quarter of fiscal 2023, revenue increased to $668.8 million compared to $454.0 million in the third quarter last year. Equipment sales were $509.0 million for the third quarter of fiscal 2023, compared to $329.8 million in the third quarter last year. Parts sales were $108.7 million for the third quarter of fiscal 2023, compared to $80.5 million in the third quarter last year. Revenue generated from service was $39.0 million for the third quarter of fiscal 2023, compared to $32.0 million in the third quarter last year. Revenue from rental and other was $12.1 million for the third quarter of fiscal 2023, compared to $11.6 million in the third quarter last year.

Gross profit for the third quarter of fiscal 2023 was $139.6 million, compared to $92.5 million in the third quarter last year. The Company's gross profit margin increased to 20.9% in the third quarter of fiscal 2023, compared to 20.4% in the third quarter last year. Gross profit margin increased primarily due to stronger equipment margins, which were partially offset by revenue mix, with a greater proportion of equipment revenue in the third quarter of fiscal 2023, as compared to the third quarter of the prior year.

Operating expenses increased by $21.9 million, but at a lower rate than revenue growth, to $84.9 million for the third quarter of fiscal 2023, compared to $62.9 million in the third quarter last year, primarily due to the inclusion of operating expenses related to acquisitions that have occurred in the past year, as well as higher variable expenses on increased revenues. Operating expenses as a percentage of revenue decreased 120 basis points to 12.7% for the third quarter of fiscal 2023, compared to 13.9% of revenue in the prior year period.

Floorplan and other interest expense was $1.8 million in the third quarter of fiscal 2023, compared to $1.3 million for the same period last year.

In the third quarter of fiscal 2023, net income was $41.3 million, or earnings per diluted share of $1.82, compared to net income of $21.8 million, or earnings per diluted share of $0.97, for the third quarter of last year.

On an adjusted basis, net income for the third quarter of fiscal 2023 was $41.5 million, or adjusted earnings per diluted share of $1.83, compared to adjusted net income of $21.7 million, or adjusted earnings per diluted share of $0.96, for the third quarter of last year.

The Company generated $63.5 million in adjusted EBITDA in the third quarter of fiscal 2023, reflecting an increase of 80% versus the $35.3 million generated in the third quarter of last year.

Segment Results

Agriculture Segment - Revenue for the third quarter of fiscal 2023 was $493.3 million, compared to $281.5 million in the third quarter last year.   The sales increase was positively impacted by organic growth as well as the acquisitions of Jaycox Implement in December 2021, Mark's Machinery in April 2022, and Heartland Ag Systems in August 2022. Pre-tax income for the third quarter of fiscal 2023 was $42.0 million, and included a $2.0 million benefit recognized on the expected achievement of annual manufacturer incentives.   This compared to $19.6 million of pre-tax income in the third quarter last year.

Construction Segment - Revenue for the third quarter of fiscal 2023 was $86.4 million, compared to $79.7 million in the third quarter last year. Growth was driven by a same-store sales increase of 34.2%, primarily due to increased equipment demand, and partially offset by lost sales contributions from the Company’s fiscal 2022 fourth quarter divestiture of construction stores in Montana and Wyoming and the fiscal 2023 first quarter divestiture of its consumer products store in North Dakota. Pre-tax income for the third quarter of fiscal 2023 was $6.1 million, and compared to $3.6 million in the third quarter last year.

International Segment - Revenue for the third quarter of fiscal 2023 was $89.0 million, compared to $92.7 million in the third quarter last year, while on a constant currency basis revenue was up $9.2 million or 9.9%. Pre-tax income for the third quarter of fiscal 2023 was $8.5 million. This compares to pre-tax income of $6.3 million in the third quarter last year. Adjusted pre-tax income, which excludes negligible adjustments, was $8.7 million for the third quarter of fiscal 2023 and $6.1 million in the third quarter last year.

Balance Sheet and Cash Flow

Cash at the end of the third quarter of fiscal 2023 was $45.9 million. Inventories increased to $630.4 million as of October 31, 2022, compared to $421.8 million as of January 31, 2022. This inventory increase includes increases in new equipment inventory of $149.9 million, parts inventory of $54.4 million, and used equipment inventory of $0.5 million. Outstanding floorplan payables were $273.1 million on $777.0 million total available floorplan lines of credit as of October 31, 2022, compared to $135.4 million outstanding floorplan payables as of January 31, 2022.

In the first nine months of fiscal 2023, net cash used for operating activities was $7.1 million, compared to net cash provided by operating activities of $72.3 million in the first nine months of fiscal 2022. The decrease in cash provided by operating activities was primarily due to increasing inventory in fiscal 2023 compared to fiscal 2022.

Additional Management Commentary

Mr. Meyer added, "Our orderly transition of the Chief Financial Officer position continues to progress well. Bo Larsen joined our team at the beginning of November and has been working with departing Chief Financial Officer Mark Kalvoda to integrate into the business ahead of his appointment on December 1, 2022. We look forward to his future contributions."

“The momentum in our business continues to be visible across all aspects of Titan Machinery, as favorable industry conditions combine with several years of operational improvements and solid growth through accretive and strategic acquisitions. With respect to our acquisition of Heartland Ag, which closed in August 2022, we are pleased with the integration process and their financial performance in their first quarter with Titan Machinery. Looking ahead, we are very well positioned to serve the strong industries that we operate in with our robust balance sheet and powerful operational performance.”

Fiscal 2023 Modeling Assumptions

The following are the Company's current expectations for fiscal 2023 modeling assumptions.

 

Current Assumptions

 

Previous Assumptions

Segment Revenue

 

 

 

Agriculture(1)

Up 55-60%

 

Up 50-55%

Construction(2)

Down 0-5%

 

Down 5-10%

International(3)

Down 0-5%

 

Down 0-5%

 

 

 

 

Diluted EPS(4)

$4.55 - $4.85

 

$3.70 - $4.00

 

 

 

 

(1) Includes the full year impact of the Jaycox acquisition, which closed in December 2021, the partial year impact of the Mark's Machinery acquisition, which closed in April 2022, and the partial year impact of the Heartland acquisition, which closed in August 2022.

(2) Includes the full year impact of the Montana and Wyoming divestiture in January 2022 and the partial year impact of the North Dakota divestiture in March 2022. Adjusting full year fiscal 2022 revenue by approximately $73 million, representing the fiscal 2022 revenue of these divested stores, results in a same-store sales assumption of up approximately 25%.

(3) Includes a reduction in revenue of approximately 40% from our Ukrainian subsidiary compared to fiscal 2022.

(4) Includes an estimated loss of approximately $0.05 to $0.10 per share from our Ukrainian subsidiary.

 

Conference Call and Presentation Information

The Company will host a conference call and audio webcast today at 7:30 a.m. Central time (8:30 a.m. Eastern time). Investors interested in participating in the live call can dial (877) 704-4453 from the U.S. International callers can dial (201) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Wednesday, December 14, 2022, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13734399.

A copy of the presentation that will accompany the prepared remarks on the conference call is available on the Company’s website under Investor Relations at www.titanmachinery.com. An archive of the audio webcast will be available on the Company’s website under Investor Relations at www.titanmachinery.com for 30 days following the audio webcast.

Non-GAAP Financial Measures

Within this release, the Company refers to certain adjusted financial measures, which have directly comparable GAAP financial measures as identified in this release. The Company believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. The non-GAAP financial measures in this release include adjustments for Ukraine remeasurement gains/losses and impairment charges. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this release and the Company's financial statements and other publicly filed reports. Non-GAAP financial measures presented in this release may not be comparable to similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of adjusted financial measures used in this release to their most directly comparable GAAP financial measures. These reconciliations are attached to this release. The tables included in the Non-GAAP Reconciliations section reconcile adjusted net income, adjusted EBITDA, adjusted diluted earnings per share, and adjusted income before income taxes (all non-GAAP financial measures) for the periods presented, to their respective most directly comparable GAAP financial measures.

About Titan Machinery Inc.

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, owns and operates a network of full service agricultural and construction equipment dealer locations in North America and Europe, servicing farmers, ranchers and commercial applicators. The network consists of US locations in Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, Washington, Wisconsin and Wyoming and its European stores are located in Bulgaria, Germany, Romania, and Ukraine. The Titan Machinery locations represent one or more of the CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.

Forward Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “potential,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,” “anticipate,” and similar words and expressions are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of our management. Forward-looking statements made in this release, which include statements regarding modeling assumptions and expected results of operations for the fiscal year ending January 31, 2023 and may include statements regarding Agriculture, Construction, and International segment initiatives and improvements, segment revenue realization, growth and profitability expectations, the performance of our Ukrainian subsidiary within our International segment, inventory availability expectations, leverage expectations, agricultural and construction equipment industry conditions and trends, involve known and unknown risks and uncertainties that may cause Titan Machinery’s actual results in future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, our ability to successfully integrate and realize growth opportunities and synergies in connection with the Heartland Ag System's acquisition, the risk that we assume unforeseen or other liabilities in connection with the Heartland Ag System's acquisition and the impact of any conditions or obligations imposed on us under the new Case IH dealer agreements for the commercial application equipment business. In addition, risks and uncertainties also include the impact of the Russia-Ukraine conflict on our Ukrainian subsidiary, the duration, scope and impact of the COVID-19 pandemic on the Company's operations, our substantial dependence on CNH Industrial including CNH Industrial's ability to design, manufacture and allocate inventory to our stores necessary to satisfy our customers' demands, supply chain disruptions impacting our suppliers, including CNH Industrial, the continued availability of organic growth and acquisition opportunities, potential difficulties integrating acquired stores, industry supply levels, fluctuating agriculture and construction industry economic conditions, the success of recently implemented initiatives within the Company’s operating segments, the uncertainty and fluctuating conditions in the capital and credit markets, difficulties in conducting international operations, foreign currency risks, governmental agriculture policies, seasonal fluctuations, the ability of the Company to manage inventory levels, weather conditions, disruption in receiving ample inventory financing, and increased competition in the geographic areas served. These and other risks are more fully described in Titan Machinery’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Titan Machinery conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risks and uncertainties may arise. It is not possible for management to predict all such risks and uncertainties, nor to assess the impact of all such risks and uncertainties on Titan Machinery’s business or the extent to which any individual risk or uncertainty, or combination of risks and uncertainties, may cause results to differ materially from those contained in any forward-looking statement. Other than as required by law, Titan Machinery disclaims any obligation to update such risks and uncertainties or to publicly announce results of revisions to any of the forward-looking statements contained in this release to reflect future events or developments.

Investor Relations Contact:
ICR, Inc.
Jeff Sonnek, jeff.sonnek@icrinc.com
646-277-1263



TITAN MACHINERY INC.

Consolidated Condensed Balance Sheets

(in thousands)

(Unaudited)

 

 

 

 

 

October 31, 2022

 

January 31, 2022

Assets

 

 

 

Current Assets

 

 

 

Cash

$

45,852

 

 

$

146,149

 

Receivables, net of allowance for expected credit losses

 

111,849

 

 

 

94,287

 

Inventories, net

 

630,377

 

 

 

421,758

 

Prepaid expenses and other

 

15,625

 

 

 

28,135

 

Total current assets

 

803,703

 

 

 

690,329

 

Noncurrent Assets

 

 

 

Property and equipment, net of accumulated depreciation

 

215,954

 

 

 

178,243

 

Operating lease assets

 

52,091

 

 

 

56,150

 

Deferred income taxes

 

2,937

 

 

 

1,328

 

Goodwill

 

32,022

 

 

 

8,952

 

Intangible assets, net of accumulated amortization

 

16,852

 

 

 

10,624

 

Other

 

1,211

 

 

 

1,041

 

Total noncurrent assets

 

321,067

 

 

 

256,338

 

Total Assets

$

1,124,770

 

 

$

946,667

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current Liabilities

 

 

 

Accounts payable

$

43,338

 

 

$

25,644

 

Floorplan payable

 

273,083

 

 

 

135,415

 

Current maturities of long-term debt

 

6,895

 

 

 

5,876

 

Current operating lease liabilities

 

9,671

 

 

 

9,601

 

Deferred revenue

 

56,812

 

 

 

134,146

 

Accrued expenses and other

 

56,980

 

 

 

59,339

 

Income taxes payable

 

15,918

 

 

 

4,700

 

Total current liabilities

 

462,697

 

 

 

374,721

 

Long-Term Liabilities

 

 

 

Long-term debt, less current maturities

 

91,055

 

 

 

74,772

 

Operating lease liabilities

 

50,737

 

 

 

55,595

 

Deferred income taxes

 

1,974

 

 

 

2,006

 

Other long-term liabilities

 

7,020

 

 

 

4,374

 

Total long-term liabilities

 

150,786

 

 

 

136,747

 

Stockholders' Equity

 

 

 

Common stock

 

 

 

 

 

Additional paid-in-capital

 

256,073

 

 

 

254,455

 

Retained earnings

 

266,672

 

 

 

182,916

 

Accumulated other comprehensive loss

 

(11,458

)

 

 

(2,172

)

Total stockholders' equity

 

511,287

 

 

 

435,199

 

Total Liabilities and Stockholders' Equity

$

1,124,770

 

 

$

946,667

 



TITAN MACHINERY INC.

Consolidated Condensed Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

 

 

 

 

 

 

 

Equipment

$

508,996

 

 

$

329,814

 

 

$

1,240,579

 

 

$

878,528

 

Parts

 

108,719

 

 

 

80,521

 

 

 

254,974

 

 

 

208,464

 

Service

 

38,960

 

 

 

32,026

 

 

 

101,847

 

 

 

89,405

 

Rental and other

 

12,098

 

 

 

11,614

 

 

 

28,923

 

 

 

27,914

 

Total Revenue

 

668,773

 

 

 

453,975

 

 

 

1,626,323

 

 

 

1,204,311

 

Cost of Revenue

 

 

 

 

 

 

 

Equipment

 

436,156

 

 

 

288,576

 

 

 

1,070,378

 

 

 

772,584

 

Parts

 

72,146

 

 

 

55,654

 

 

 

172,162

 

 

 

146,184

 

Service

 

13,456

 

 

 

10,249

 

 

 

35,288

 

 

 

29,314

 

Rental and other

 

7,435

 

 

 

7,016

 

 

 

17,522

 

 

 

17,754

 

Total Cost of Revenue

 

529,193

 

 

 

361,495

 

 

 

1,295,350

 

 

 

965,836

 

Gross Profit

 

139,580

 

 

 

92,480

 

 

 

330,973

 

 

 

238,475

 

Operating Expenses

 

84,861

 

 

 

62,943

 

 

 

217,841

 

 

 

176,460

 

Impairment of Intangible and Long-Lived Assets

 

 

 

 

 

 

 

 

 

 

1,498

 

Income from Operations

 

54,719

 

 

 

29,537

 

 

 

113,132

 

 

 

60,517

 

Other Income (Expense)

 

 

 

 

 

 

 

Interest and other income

 

1,804

 

 

 

616

 

 

 

3,169

 

 

 

1,935

 

Floorplan interest expense

 

(588

)

 

 

(259

)

 

 

(1,087

)

 

 

(1,027

)

Other interest expense

 

(1,257

)

 

 

(1,071

)

 

 

(3,802

)

 

 

(3,292

)

Income Before Income Taxes

 

54,678

 

 

 

28,823

 

 

 

111,412

 

 

 

58,133

 

Provision for Income Taxes

 

13,421

 

 

 

7,007

 

 

 

27,656

 

 

 

14,521

 

Net Income

$

41,257

 

 

$

21,816

 

 

 

83,756

 

 

 

43,612

 

 

 

 

 

 

 

 

 

Diluted Earnings per Share

$

1.82

 

 

$

0.97

 

 

$

3.70

 

 

$

1.93

 

Diluted Weighted Average Common Shares

 

22,399

 

 

 

22,222

 

 

 

22,372

 

 

 

22,238

 



TITAN MACHINERY INC.

Consolidated Condensed Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

 

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

Operating Activities

 

 

 

Net income

$

83,756

 

 

$

43,612

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

Depreciation and amortization

 

18,356

 

 

 

16,336

 

Impairment

 

 

 

 

1,498

 

Other, net

 

7,727

 

 

 

7,145

 

Changes in assets and liabilities, net of effects of acquisitions

 

 

 

Inventories

 

(115,734

)

 

 

3,181

 

Manufacturer floorplan payable

 

78,972

 

 

 

45,801

 

Other working capital

 

(80,211

)

 

 

(45,298

)

Net Cash Provided by (Used for) Operating Activities

 

(7,134

)

 

 

72,275

 

Investing Activities

 

 

 

Property and equipment purchases

 

(25,430

)

 

 

(29,693

)

Proceeds from sale of property and equipment

 

2,110

 

 

 

667

 

Acquisition consideration, net of cash acquired

 

(100,471

)

 

 

 

Other, net

 

(176

)

 

 

20

 

Net Cash Used for Investing Activities

 

(123,967

)

 

 

(29,006

)

Financing Activities

 

 

 

Net change in non-manufacturer floorplan payable

 

32,212

 

 

 

(30,104

)

Net proceeds from long-term debt and finance leases

 

2,819

 

 

 

(213

)

Other, net

 

(698

)

 

 

(998

)

Net Cash Provided by (Used for) Financing Activities

 

34,333

 

 

 

(31,315

)

Effect of Exchange Rate Changes on Cash

 

(3,529

)

 

 

(404

)

Net Change in Cash

 

(100,297

)

 

 

11,550

 

Cash at Beginning of Period

 

146,149

 

 

 

78,990

 

Cash at End of Period

$

45,852

 

 

$

90,540

 



TITAN MACHINERY INC.

Segment Results

(in thousands)

(Unaudited)

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

2022

 

 

 

2021

 

 

% Change

 

 

2022

 

 

 

2021

 

 

% Change

Revenue

 

 

 

 

 

 

 

 

 

 

 

Agriculture

$

493,324

 

 

$

281,506

 

 

75.2

%

 

$

1,160,829

 

 

$

730,422

 

 

58.9

%

Construction

 

86,403

 

 

 

79,735

 

 

8.4

%

 

 

223,389

 

 

 

229,286

 

 

(2.6

)%

International

 

89,046

 

 

 

92,734

 

 

(4.0

)%

 

 

242,105

 

 

 

244,603

 

 

(1.0

)%

Total

$

668,773

 

 

$

453,975

 

 

47.3

%

 

$

1,626,323

 

 

$

1,204,311

 

 

35.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

Agriculture

$

42,044

 

 

$

19,618

 

 

114.3

%

 

$

83,387

 

 

$

42,910

 

 

94.3

%

Construction

 

6,065

 

 

 

3,564

 

 

70.2

%

 

 

13,197

 

 

 

6,518

 

 

102.5

%

International

 

8,488

 

 

 

6,260

 

 

35.6

%

 

 

18,683

 

 

 

9,498

 

 

96.7

%

Segment Income Before Income Taxes

 

56,597

 

 

 

29,442

 

 

92.2

%

 

 

115,267

 

 

 

58,926

 

 

95.6

%

Shared Resources

 

(1,919

)

 

 

(619

)

 

n/m

 

 

(3,855

)

 

 

(793

)

 

n/m

Total

$

54,678

 

 

$

28,823

 

 

89.7

%

 

$

111,412

 

 

$

58,133

 

 

91.7

%



TITAN MACHINERY INC.

Non-GAAP Reconciliations

(in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended October 31,

 

Nine Months Ended October 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Adjusted Net Income

 

 

 

 

 

 

 

 

Net Income

 

$

41,257

 

 

$

21,816

 

 

$

83,756

 

 

$

43,612

 

Adjustments

 

 

 

 

 

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

1,498

 

Ukraine remeasurement (gain) / loss (1)

 

 

234

 

 

 

(113

)

 

 

549

 

 

 

(296

)

Total Adjustments

 

 

234

 

 

 

(113

)

 

 

549

 

 

 

1,202

 

Adjusted Net Income

 

$

41,491

 

 

$

21,703

 

 

$

84,305

 

 

$

44,814

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted EPS

 

 

 

 

 

 

 

 

Diluted EPS

 

$

1.82

 

 

$

0.97

 

 

$

3.70

 

 

$

1.93

 

Adjustments (2)

 

 

 

 

 

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

0.07

 

Ukraine remeasurement (gain) / loss (1)

 

 

0.01

 

 

 

(0.01

)

 

 

0.02

 

 

 

(0.02

)

Total Adjustments

 

 

0.01

 

 

 

(0.01

)

 

 

0.02

 

 

 

0.05

 

Adjusted Diluted EPS

 

$

1.83

 

 

$

0.96

 

 

$

3.72

 

 

$

1.98

 

 

 

 

 

 

 

 

 

 

Adjusted Income Before Income Taxes

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

$

54,678

 

 

$

28,823

 

 

$

111,412

 

 

$

58,133

 

Adjustments

 

 

 

 

 

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

1,498

 

Ukraine remeasurement (gain) / loss

 

 

233

 

 

 

(113

)

 

 

549

 

 

 

(296

)

Total Adjustments

 

 

233

 

 

 

(113

)

 

 

549

 

 

 

1,202

 

Adjusted Income Before Income Taxes

 

$

54,911

 

 

$

28,710

 

 

$

111,961

 

 

$

59,335

 

 

 

 

 

 

 

 

 

 

Adjusted Income Before Income Taxes - International

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

$

8,488

 

 

$

6,260

 

 

$

18,683

 

 

$

9,498

 

Adjustments

 

 

 

 

 

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

1,498

 

Ukraine remeasurement (gain) / loss

 

 

233

 

 

 

(113

)

 

 

549

 

 

 

(296

)

Total Adjustments

 

 

233

 

 

 

(113

)

 

 

549

 

 

 

1,202

 

Adjusted Income Before Income Taxes

 

$

8,721

 

 

$

6,147

 

 

$

19,232

 

 

$

10,700

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

Net Income

 

$

41,257

 

 

$

21,816

 

 

$

83,756

 

 

$

43,612

 

Adjustments

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

 

1,170

 

 

 

840

 

 

 

3,562

 

 

 

2,941

 

Provision for income taxes

 

 

13,421

 

 

 

7,007

 

 

 

27,656

 

 

 

14,521

 

Depreciation and amortization

 

 

7,368

 

 

 

5,734

 

 

 

18,355

 

 

 

16,336

 

EBITDA

 

 

63,216

 

 

 

35,397

 

 

 

133,329

 

 

 

77,410

 

Adjustments

 

 

 

 

 

 

 

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

 

1,498

 

Ukraine remeasurement (gain) / loss

 

 

234

 

 

 

(113

)

 

 

549

 

 

 

(296

)

Total Adjustments

 

 

234

 

 

 

(113

)

 

 

549

 

 

 

1,202

 

Adjusted EBITDA

 

$

63,450

 

 

$

35,284

 

 

$

133,878

 

 

$

78,612

 

 

 

 

 

 

 

 

 

 

(1) Due to the income tax valuation allowance on the Ukrainian and German subsidiaries, there are no tax adjustments for the Ukraine remeasurement (gain)/loss for the periods ending October 31, 2022 and 2021 or the impairment charge for the periods ending October 31, 2021.

(2) Adjustments are net of amounts allocated to participating securities where applicable.