Titan International, Inc. Reports 30 Percent Increase in Pro Forma Sales for Fourth Quarter 2004
QUINCY, Ill.--Feb. 2, 20054, 2005--Titan International, Inc. reported net sales of $105.9 million for the fourth quarter ended December 31, 2004, up 30 percent from $81.5 million pro forma (adjusted to reflect the April 2004 sale of Titan Europe) for the fourth quarter of 2003. Pro forma net sales for the year 2004 totaled $461.1 million, increasing 32 percent over 2003 pro forma net sales of $347.9 million.Gross profit increased to $13.1 million for the fourth quarter of 2004 compared to $7.9 million for the same quarter of 2003, a 66 percent improvement in gross profit. For the year, gross profit more than doubled to $79.5 million in 2004 from $29.7 million in 2003.
Net income for the year improved $47.8 million to a profit of $11.1 million versus a loss of $(36.7) million a year earlier. Fully diluted earnings per share were $.61 in 2004 versus a loss of $(1.75) in 2003, for a $2.36 year-over-year gain.
Included in the fourth quarter and year-end 2004 results is a $5.3 million depreciation charge for idled assets marketed for sale. Titan continues the sales process for these idled assets, including facilities in Greenwood, South Carolina, and Walcott, Iowa, and equipment in Natchez, Mississippi, and Brownsville, Texas.
"Titan has experienced another remarkable quarter and we are proud to report a profitable 2004," stated Maurice Taylor Jr., Titan president and CEO. "The operating results for the year show Titan's employees worked hard to return the company to profitability when presented with increased demand in the agricultural and construction markets. Although it's been a bumpy ride, we will not forget to maintain focus on reducing costs and further enhancing efficiencies. Many of our customers are predicting another strong year in 2005."
For additional financial information and Management's Discussion and Analysis of Financial Condition and Results of Operations, see the company's annual report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2005.
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, 2004.
Titan International, Inc., a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction, and consumer (i.e. all terrain vehicles and trailers) applications.
Titan International, Inc.
Consolidated Statements of Operations (Unaudited)
For the three and twelve months ended December 31, 2004 and 2003
Amounts in thousands except earnings per share data
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Net sales $105,920 $120,469 $510,571 $491,672
Cost of sales 92,830 112,529 431,071 461,969
--------- --------- --------- ---------
Gross profit 13,090 7,940 79,500 29,703
Selling, general &
administrative expenses 8,455 11,066 36,040 43,174
Research & development expenses 345 727 1,875 2,749
Idled assets marketed for sale
- depreciation 5,275 0 5,275 0
Goodwill impairment on Titan
Europe 0 0 2,988 0
--------- --------- --------- ---------
(Loss) income from operations (985) (3,853) 33,322 (16,220)
Interest expense (2,561) (5,130) (16,159) (20,231)
Debt termination expense 0 0 (3,654) 0
Equity income from
unconsolidated affiliate 857 0 1,278 0
Loss on investment 0 0 0 (2,707)
Other income 189 2,762 428 5,490
--------- --------- --------- ---------
(Loss) income before income
taxes (2,500) (6,221) 15,215 (33,668)
(Benefit) provision for income
taxes (1,207) 2,989 4,108 2,989
--------- --------- --------- ---------
Net (loss) income $(1,293) $(9,210) $11,107 $(36,657)
========= ========= ========= =========
(Loss) income per common share:
Basic $(.08) $(.44) $.62 $(1.75)
Diluted (.08) (.44) .61 (1.75)
Average common shares
outstanding:
Basic 16,326 21,168 17,798 20,984
Diluted 16,326 21,168 21,574 20,984
Net sales with and without Titan Europe (Unaudited)
Amounts in thousands
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Net sales $105,920 $120,469 $510,571 $491,672
Less Titan Europe included in
historical sales 0 39,002 49,446 143,724
--------- --------- --------- ---------
Net sales without Titan Europe $105,920 $81,467 $461,125 $347,948
Segment Information
Revenues from external customers (Unaudited)
Amounts in thousands
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
--------- --------- --------- ---------
Agricultural $62,652 $71,675 $316,235 $288,545
Earthmoving/Construction 35,751 42,129 160,297 169,087
Consumer 7,517 6,665 34,039 34,040
--------- --------- --------- ---------
Total $105,920 $120,469 $510,571 $491,672
Consolidated Condensed Balance Sheets (Unaudited)
Amounts in thousands
Dec. 31, Dec. 31,
Assets 2004 2003
--------- ---------
Current assets:
Cash & cash equivalents $1,130 $6,556
Accounts receivable 52,781 83,975
Inventories 84,658 112,496
Assets held for sale 0 37,775
Deferred income taxes 6,711 20,343
Other current assets 9,388 25,801
--------- ---------
Total current assets 154,668 286,946
Property, plant & equipment, net 80,644 138,482
Idled assets marketed for sale 31,245 0
Investment in unconsolidated affiliate 30,040 0
Restricted cash deposits 24,500 51,039
Goodwill 11,702 18,823
Other assets 21,367 27,794
--------- ---------
Total assets $354,166 $523,084
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Liabilities & stockholders' equity
Current liabilities:
Short-term debt (including current portion
of long-term debt) $217 $21,161
Accounts payable 26,733 51,931
Other current liabilities 12,820 29,883
--------- ---------
Total current liabilities 39,770 102,975
Long-term debt 169,688 248,397
Deferred income taxes 9,164 22,796
Other long-term liabilities 28,663 36,960
Stockholders' equity 106,881 111,956
--------- ---------
Total liabilities & stockholders' equity $354,166 $523,084
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