Mittwoch,
03.05.2023 17:00
von
PR Newswire
| Aufrufe: 37
Titan International, Inc. Reports First Quarter Financial Performance
Ein Arzt berät einen Patienten (Symbolbild).
© TommL / Vetta / Getty Images
https://www.gettyimages.de/
PR Newswire
WEST CHICAGO, Ill., May 3, 2023
Continued strong profitability with EPS of $0.50 and adjusted EPS of $0.53, increases of 35% and 20%, year-over-year respectively
Adjusted EBITDA of $68 million, up 19% and highest first quarter performance since 2013
WEST CHICAGO, Ill., May 3, 2023 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the first quarter ended March 31, 2023.
First Quarter 2023 (Compared to First Quarter 2022)
- Gross margin of 17.4%, up 180 basis points
- Net income of $33 million, an increase of 36%
- EPS of $0.50 and adjusted EPS of $0.53, increases of 35% and 20%, respectively
- Adjusted EBITDA of $68 million, an increase of 19%
- Net sales of $549 million; excluding impacts of FX and Australian divestiture, net sales increased 2%
- Further strengthened balance sheet with an increase in total cash to $164 million, $12 million of free cash flow generation and further reduction in net debt/trailing twelve-month EBITDA leverage to 1.0 times
- Year-to-date as of April 14, 2023, repurchased shares for approximately $3.3 million under the $50 million authorization
Paul Reitz, President and Chief Executive Officer, stated, "I have spoken extensively about the strengths and excellent performance of our One Titan global team as we executed on the initiatives that we expressed a few years ago and served our customers well during challenging times. For example, Titan's business profile has improved through the restructuring of underperforming businesses. Titan's core businesses have strengthened with our continuing product development of market-leading products that improve the performance of equipment. Titan's balance sheet is in a strong position due to our diligent, focused efforts that have resulted in improved cash flow, significantly reduced net debt levels and net working capital under 20% of net sales. Most importantly, Titan's operations have taken care of our customers during challenging times with a dedicated team, quality products and excellent plants that are strategically located to mitigate risk for supply chains. Titan's impressive overall performance for the past couple of years has driven good financial results and built a strong foundation for future growth, yet our stock is trading at approximately 3.5 times trailing twelve months adjusted EBITDA. We simply have performed better and built a stronger company for the future than what is reflected in that price."
Mr. Reitz continued, "I am pleased to report strong first quarter 2023 results, driven by positive demand in our core end markets and our ongoing commitment to serve our customers at a high level with our market leading products. The solid financial performance and bottom-line expansion we achieved is a testament to our focus on strategic actions that we have taken in the past few years to transform the Company's profitability profile. Our One Titan team has developed a deep understanding of our customers' needs to ensure we are the partner of choice for off the road tires, wheels and undercarriage solutions as well as a continued focus on optimization of and investments in our global production assets to make them more efficient. The strong combination of product innovation, operational agility and a global production footprint positions Titan well for the future growth of our business."
Mr. Reitz continued, "Turning to the bigger picture in the markets we serve, the fundamentals within large Ag overall remain in a good position with runway to support future growth at Titan as large Ag is a key segment of our business. High farmer income supported by solid prices for corn and wheat combined with lower input costs, as well as high replacement needs for an aging large equipment fleet, are all expected to support continued healthy demand for our products over the mid to long-term time horizon. The earthmoving/construction markets are expected to continue in a positive manner this year, given low equipment inventory levels throughout the global construction industry and solid non-residential activity. Additionally, mineral commodity prices are at relatively high levels, which also supports growth. Overall, I am very pleased with our performance and particularly the contributions of the entire One Titan team in supporting our valued customers and dealing with complexities in the broader economy."
David Martin, Chief Financial Officer, added, "We maintained our sharp focus on balance sheet strength, supported by free cash flow generation, which allowed us to further reduce debt while also increasing our cash position to $164 million during the quarter. We leveraged our strong balance sheet and opportunistically repurchased approximately $3.3 million, or 310,000 shares, since the start of the year, under the Board authorized $50 million share repurchase program. We believe our share price is deeply undervalued and does not reflect the transformative actions we have taken to significantly increase the profitability potential of Titan."
Mr. Martin concluded, "We continue to expect our financial performance to remain at a high level in 2023, due to healthy market conditions globally across the markets we serve, particularly in large Ag. Additionally, we remain keenly focused on navigating the near-term impacts stemming from inventory adjustments within our customer base and mitigating these effects by temporarily adjusting our production schedules to align with customers' needs. We'll provide updated information about our forecasted performance as the inventory situation normalizes."
Results of Operations
Net sales for the first quarter ended March 31, 2023, were $548.6 million, compared to $556.0 million in the comparable quarter of 2022, a decrease of 1.3%. The net sales decrease was driven by an unfavorable impact of foreign currency translation of 1.5% or $8.1 million, primarily due to the weaker Euro. Additionally, the Company sold its Australian wheel business in the first quarter of 2022 which resulted in a reduction of net sales of 1.8%, or $10.0 million for the three months ended March 31, 2023, compared to the three months ended March 31, 2022. The net sales decrease was partially offset by increased sales volume and favorable price/product mix.
Gross profit for the three months ended March 31, 2023 was $95.6 million, or 17.4% of net sales, an increase of $8.8 million compared to $86.7 million, or 15.6% of net sales, for the three months ended March 31, 2022. The solid growth in gross profit for the three months ended March 31, 2023 as compared to the prior year period was driven by productivity initiatives that continue to be executed across global production facilities, cost reduction, and lower production input costs including freight.
Selling, general, administrative, research and development (SGARD) expenses for the first quarter of 2023 were $37.5 million, compared to $39.1 million for the comparable prior year period. As a percentage of net sales, SGARD was 6.8%, compared to 7.0% for the comparable prior year period. The decrease in SGARD during the quarter as compared to the prior year was driven primarily by the disposition of the Australian wheel business during the first quarter of 2022.
Income from operations for the first quarter of 2023 was $55.1 million, or 10.0% of net sales, compared to income of $44.7 million, or 8.0% of net sales, for the first quarter of 2022. The increase in income from operations during the quarter as compared to the prior year was primarily due to improvements in gross profit.
Segment Information
Agricultural Segment
| (Amounts in thousands, except percentages) | Three months ended | |||||
| | March 31, | |||||
| | | 2023 | | 2022 | | % |
| Net sales | $ 305,858 | | $ 309,600 | | (1.2) % | |
| Gross profit | 49,250 | | 47,924 | | 2.8 % | |
| Profit margin | 16.1 % | | 15.5 % | | 3.9 % | |
| Income from operations | 32,569 | | 30,117 | | 8.1 % | |
Net sales in the agricultural segment were $305.9 million for the three months ended March 31, 2023, as compared to $309.6 million for the comparable period in 2022, a decrease of 1.2%. The net sales decrease was primarily driven by an unfavorable impact of foreign currency translation of 0.7%, primarily due to the weaker Euro, and the effects of the disposed Australian business of 1.1%. Gross profit in the agricultural segment was $49.3 million for the three months ended March 31, 2023, as compared to $47.9 million in the comparable period in 2022. The increase in gross profit and profit margin was due to cost reduction and productivity initiatives executed across global production facilities in addition to lower production input costs.
Earthmoving/Construction Segment
| (Amounts in thousands, except percentages) | Three months ended | ||||
| | March 31, | ||||
| | 2023 | | 2022 | | % |
| Net sales | $ 198,924 | | $ 201,259 | | (1.2) % |
| Gross profit | 37,224 | | 31,375 | | 18.6 % |
| Profit margin | 18.7 % | | 15.6 % | | 19.9 % |
| Income from operations | 23,538 | | 15,840 | | 48.6 % |
Earthmoving/construction (EMC) segment net sales were $198.9 million for the three months ended March 31, 2023, as compared to $201.3 million in the comparable period in 2022, a decrease of 1.2%. EMC net sales were unfavorably impacted by foreign currency translation of 3.0%, primarily due to the weaker Euro and the effects of the disposed Australia business of 3.1%. Gross profit in the earthmoving/construction segment was $37.2 million, as compared to $31.4 million in the comparable period in 2022. The increase in gross profit and margin was primarily driven by the continued improvement of production efficiencies stemming from the strong management actions taken to improve profitability over the long term. Lower production input costs including freight also increased profitability.
Consumer Segment
| (Amounts in thousands, except percentages) | Three months ended | ||||
| | March 31, | ||||
| | 2023 | | 2022 | | % |
| Net sales | $ 43,862 | | $ 45,138 | | (2.8) % |
| Gross profit | 9,083 | | 7,430 | | 22.2 % |
| Profit margin | 20.7 % | | 16.5 % | | 25.5 % |
| Income from operations | 6,792 | | 4,882 | | 39.1 % |
Consumer segment net sales were $43.9 million for the three months ended March 31, 2023, as compared to $45.1 million for the three months ended March 31, 2022, a decrease of 2.8%. The decrease was driven by lower sales volumes, mainly in Latin America and Russia. Gross profit in the consumer segment was $9.1 million as compared to $7.4 million in the comparable period in 2022. The increase in gross profit and margin was primarily driven by increased price/product mix and growth initiatives in specialty products in the United States which had stronger margins than other products in the segment.
Non-GAAP Financial Measures
Adjusted EBITDA was $67.6 million for the first quarter of 2023, compared to $56.8 million in the comparable prior year period. The Company utilizes EBITDA and adjusted EBITDA, which are non-GAAP financial measures, as a means to measure its operating performance. A reconciliation of net income to EBITDA and adjusted EBITDA can be found at the end of this release.
Adjusted net income applicable to common shareholders for the first quarter of 2023 was income of $33.6 million, equal to income of $0.53 per basic and diluted share, compared to income of $28.2 million, equal to income of $0.44 per basic and diluted share, in the first quarter of 2022. The Company utilizes adjusted net income applicable to common shareholders, which is a non-GAAP financial measure, as a means to measure its operating performance. A reconciliation of net income applicable to common shareholders and adjusted net income applicable to common shareholders can be found at the end of this release.
Financial Condition
The Company ended the first quarter of 2023 with total cash and cash equivalents of $164.1 million, compared to $159.6 million at December 31, 2022. Long-term debt at March 31, 2023, was $413.4 million, compared to $414.8 million at December 31, 2022. Short-term debt was $23.8 million at March 31, 2023, compared to $30.9 million at December 31, 2022. Net debt (total debt less cash and cash equivalents) was $273.1 million at March 31, 2023, compared to $286.0 million at December 31, 2022.
Net cash provided by operating activities for the first three months of 2023 was $24.1 million, compared to net cash used for operations of $18.5 million for the comparable prior year period. Capital expenditures were $11.7 million for the first three months of 2023, compared to $7.6 million for the comparable prior year period. Capital expenditures during the first three months of 2023 and 2022 represent equipment replacement and improvements, along with new tools, dies and molds related to new product development, as the Company seeks to enhance the Company's manufacturing capabilities and drive productivity gains.
Teleconference and Webcast
Titan will be hosting a teleconference and webcast to discuss the first quarter financial results on Thursday, May 4, 2023, at 9:00 a.m. Eastern Time.
The real-time, listen-only webcast can be accessed using the following link https://events.q4inc.com/attendee/142089563 or on our website at www.titan-intl.com within the "Investor Relations" page under the "News & Events" menu (https://ir.titan-intl.com/news-and-events/events/default.aspx). Listeners should access the website at least 10 minutes prior to the live event to download and install any necessary audio software.
A webcast replay of the teleconference will be available on our website (https://ir.titan-intl.com/news-and-events/events/default.aspx) soon after the live event.
In order to participate in the real-time teleconference, with live audio Q&A, participants should use one of the following dial in numbers:
Werbung
Mehr Nachrichten zur Titan International Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)
-1
Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.
