Titan International, Inc. Reports First Quarter 2003 Financial Results
QUINCY, Ill., April 30 -- Titan International, Inc. reported net sales of $129.0 million for the quarter ended March 31, 2003, compared to $123.7 million for first quarter 2002. For the first quarter of 2003, Titan recorded a net loss of $(5.9) million compared to $(2.9) million in the first quarter of 2002. Diluted loss per share for the quarter was $(.28) versus $(.14) for the same quarter of the previous year.
"Titan's first quarter numbers were negatively impacted by higher raw material prices, combined with increased employee benefit and insurance costs accounting for over $4 million in additional expenditures compared to the same quarter last year," stated Maurice Taylor Jr., Titan president and CEO. "In response, planned price increases and further efficiencies should result in improved margins for our products, while we also continue our pursuit of unconventional sales channels. These measures will help Titan withstand the economic pressure expected to persist throughout 2003 in the company's three market segments: agricultural, earthmoving/construction and consumer."
For additional financial information and Management's Discussion and Analysis of Financial Condition and Results of Operations, see the company's Form 10-Q filed with the Securities and Exchange Commission (SEC) on April 30, 2003.
This press release includes forward-looking statements that involve risks and uncertainties, including risks as detailed in Titan International, Inc.'s periodic filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2002.
Titan is a global supplier of mounted wheel and tire systems for off- highway equipment used in agriculture, earthmoving/construction, and consumer applications (i.e. all terrain vehicles and trailers). Titan has manufacturing and distribution facilities worldwide.
Titan International, Inc.
Consolidated Statements of Operations (Unaudited)
For the three months ended March 31, 2003 and 2002
Amounts in thousands except earnings per share data.
Three Months Ended
March 31,
2003 2002
Net sales $128,984 $123,716
Cost of sales 118,589 111,577
Gross profit 10,395 12,139
Selling, general & administrative 11,417 10,298
Research & development 668 786
(Loss) income from operations (1,690) 1,055
Interest expense (4,975) (5,203)
Other income 478 328
Loss before income taxes (6,187) (3,820)
Benefit for income taxes (309) (955)
Net loss $(5,878) $(2,865)
Loss per common share:
Basic $(.28) $(.14)
Diluted (.28) (.14)
Average common shares and equivalents outstanding:
Basic 20,789 20,727
Diluted 20,789 20,727
Segment Information
Revenues from external customers (Unaudited)
Amounts in thousands
Three Months Ended
March 31,
2003 2002
Agricultural $78,102 $75,245
Earthmoving/Construction 41,044 36,934
Consumer 9,838 11,537
Total $128,984 $123,716
Consolidated Condensed Balance Sheets (Unaudited)
Amounts in thousands
March 31, Dec. 31,
2003 2002
Assets
Current assets:
Cash & cash equivalents $11,472 $22,049
Accounts receivable 110,016 82,588
Inventories 114,466 109,142
Other current assets 42,283 40,790
Total current assets 278,237 254,569
Property, plant & equipment, net 181,301 186,540
Other noncurrent assets 90,226 90,890
Total assets $549,764 $531,999
Liabilities & stockholders' equity
Current liabilities:
Short-term debt (including current portion
of long-term debt) $18,660 $10,615
Accounts payable 59,154 49,007
Other current liabilities 30,985 24,684
Total current liabilities 108,799 84,306
Other long-term liabilities 55,159 54,547
Long-term debt 247,789 249,119
Stockholders' equity 138,017 144,027
Total liabilities & stockholders' equity $549,764 $531,999