TITAN INTERNATIONAL, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 FINANCIAL PERFORMANCE
Titan International (NYSE: TWI) reported its Q4 and FY2024 financial results, showing mixed performance. Q4 net sales decreased to $383.6M from $390.2M in Q4 2023, with a gross margin decline to 10.7% from 14.9%. The company reported a Q4 operating loss of $17.0M compared to a profit of $20.7M in Q4 2023.
Key financial metrics include Q4 Adjusted EBITDA of $9.2M (down from $38.1M), and adjusted net income of $0.09 per share (down from $0.34). Year-end cash position stood at $196.0M, with net debt increasing to $369.5M from $205.8M.
For Q1 2025, TWI expects sales between $450-500M and Adjusted EBITDA of $25-35M. Management expressed optimism about H2 2025, citing improving farm income, positive Brazilian market activity, and success of their 'One-Stop Shop' strategy in the aftermarket. The company's integration of Carlstar acquisition continues, though contributing to increased operating expenses.
Titan International (NYSE: TWI) ha riportato i risultati finanziari del Q4 e dell'anno fiscale 2024, mostrando una performance mista. Le vendite nette del Q4 sono diminuite a $383,6M rispetto ai $390,2M del Q4 2023, con un calo del margine lordo al 10,7% rispetto al 14,9%. L'azienda ha registrato una perdita operativa nel Q4 di $17,0M rispetto a un profitto di $20,7M nel Q4 2023.
I principali indicatori finanziari includono un EBITDA rettificato del Q4 di $9,2M (in calo rispetto ai $38,1M) e un reddito netto rettificato di $0,09 per azione (in calo rispetto a $0,34). La posizione di cassa a fine anno era di $196,0M, con il debito netto che è aumentato a $369,5M rispetto ai $205,8M.
Per il Q1 2025, TWI prevede vendite tra $450-500M e un EBITDA rettificato di $25-35M. La direzione ha espresso ottimismo riguardo al secondo semestre del 2025, citando il miglioramento del reddito agricolo, l'attività positiva nel mercato brasiliano e il successo della loro strategia 'One-Stop Shop' nel mercato secondario. L'integrazione dell'acquisizione di Carlstar continua, sebbene contribuisca ad un aumento delle spese operative.
Titan International (NYSE: TWI) informó sus resultados financieros del Q4 y del año fiscal 2024, mostrando un desempeño mixto. Las ventas netas del Q4 disminuyeron a $383.6M desde $390.2M en el Q4 2023, con una caída en el margen bruto al 10.7% desde el 14.9%. La compañía reportó una pérdida operativa en el Q4 de $17.0M en comparación con una ganancia de $20.7M en el Q4 2023.
Las métricas financieras clave incluyen un EBITDA ajustado del Q4 de $9.2M (bajando desde $38.1M) y un ingreso neto ajustado de $0.09 por acción (bajando desde $0.34). La posición de efectivo al final del año se situó en $196.0M, con una deuda neta que aumentó a $369.5M desde $205.8M.
Para el Q1 2025, TWI espera ventas entre $450-500M y un EBITDA ajustado de $25-35M. La dirección expresó optimismo sobre el segundo semestre de 2025, citando el aumento de los ingresos agrícolas, la actividad positiva en el mercado brasileño y el éxito de su estrategia 'One-Stop Shop' en el mercado secundario. La integración de la adquisición de Carlstar continúa, aunque contribuye al aumento de los gastos operativos.
타이탄 인터내셔널 (NYSE: TWI)는 2024 회계연도 4분기 및 연간 재무 결과를 발표하며 혼합된 성과를 보였습니다. 4분기 순매출은 2023년 4분기 390.2백만 달러에서 383.6백만 달러로 감소했으며, 총 마진은 14.9%에서 10.7%로 하락했습니다. 회사는 2023년 4분기 20.7백만 달러의 이익에 비해 4분기 운영 손실이 17.0백만 달러로 보고했습니다.
주요 재무 지표에는 4분기 조정 EBITDA가 9.2백만 달러(38.1백만 달러에서 감소)와 조정 순이익이 주당 0.09달러(0.34달러에서 감소)가 포함됩니다. 연말 현금 잔고는 196.0백만 달러였으며, 순부채는 205.8백만 달러에서 369.5백만 달러로 증가했습니다.
2025년 1분기 TWI는 450-500백만 달러의 매출과 25-35백만 달러의 조정 EBITDA를 예상합니다. 경영진은 2025년 하반기에 대한 낙관적인 전망을 보이며 농업 소득 증가, 브라질 시장의 긍정적인 활동 및 애프터마켓에서의 '원스톱 샵' 전략의 성공을 언급했습니다. Carlstar 인수 통합이 계속되고 있지만 운영 비용 증가에 기여하고 있습니다.
Titan International (NYSE: TWI) a publié ses résultats financiers pour le 4ème trimestre et l'exercice 2024, affichant une performance mitigée. Les ventes nettes du 4ème trimestre ont diminué à 383,6 millions de dollars contre 390,2 millions de dollars au 4ème trimestre 2023, avec une baisse de la marge brute à 10,7% contre 14,9%. La société a enregistré une perte opérationnelle de 17,0 millions de dollars au 4ème trimestre par rapport à un bénéfice de 20,7 millions de dollars au 4ème trimestre 2023.
Les indicateurs financiers clés comprennent un EBITDA ajusté de 9,2 millions de dollars au 4ème trimestre (en baisse par rapport à 38,1 millions de dollars) et un revenu net ajusté de 0,09 dollar par action (en baisse par rapport à 0,34 dollar). La position de trésorerie à la fin de l'année s'élevait à 196,0 millions de dollars, avec une dette nette augmentant à 369,5 millions de dollars contre 205,8 millions de dollars.
Pour le 1er trimestre 2025, TWI prévoit des ventes entre 450 et 500 millions de dollars et un EBITDA ajusté de 25 à 35 millions de dollars. La direction a exprimé son optimisme concernant le deuxième semestre 2025, citant l'amélioration des revenus agricoles, l'activité positive sur le marché brésilien et le succès de leur stratégie 'One-Stop Shop' sur le marché secondaire. L'intégration de l'acquisition de Carlstar se poursuit, bien qu'elle contribue à l'augmentation des dépenses d'exploitation.
Titan International (NYSE: TWI) hat seine finanziellen Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht und zeigt eine gemischte Leistung. Die Nettoumsätze im 4. Quartal sanken auf 383,6 Millionen Dollar von 390,2 Millionen Dollar im 4. Quartal 2023, während die Bruttomarge auf 10,7% von 14,9% zurückging. Das Unternehmen meldete einen operativen Verlust von 17,0 Millionen Dollar im 4. Quartal im Vergleich zu einem Gewinn von 20,7 Millionen Dollar im 4. Quartal 2023.
Wichtige Finanzkennzahlen umfassen ein angepasstes EBITDA von 9,2 Millionen Dollar im 4. Quartal (rückläufig von 38,1 Millionen Dollar) und einen angepassten Nettogewinn von 0,09 Dollar pro Aktie (rückläufig von 0,34 Dollar). Die Liquiditätsposition zum Jahresende betrug 196,0 Millionen Dollar, während die Nettoverschuldung auf 369,5 Millionen Dollar von 205,8 Millionen Dollar anstieg.
Für das 1. Quartal 2025 erwartet TWI Umsätze zwischen 450 und 500 Millionen Dollar sowie ein angepasstes EBITDA von 25 bis 35 Millionen Dollar. Das Management äußerte Optimismus bezüglich des 2. Halbjahres 2025 und verwies auf steigende landwirtschaftliche Einkommen, positive Marktaktivitäten in Brasilien und den Erfolg ihrer 'One-Stop Shop'-Strategie im Aftermarket. Die Integration der Carlstar-Akquisition wird fortgesetzt, trägt jedoch zu steigenden Betriebskosten bei.
- Strong aftermarket business growth reducing cyclicality
- Expected sales improvement in Brazil for Q1 2025
- Effective working capital management with $31.0M improvement in accounts receivable
- $19.8M reduction in inventory achieved
- Q4 operating loss of $17.0M vs profit of $20.7M in 2023
- Q4 net sales declined 1.7% to $383.6M
- Gross margin decreased to 10.7% from 14.9%
- Net debt increased to $369.5M from $205.8M
- Operating cash flows decreased by $37.9M
Insights
Titan International's Q4 2024 results highlight significant market challenges, with quarterly revenue declining 1.7% year-over-year to
Segment performance reveals the depth of industry headwinds: Agricultural revenue fell
The Carlstar integration represents a strategic pivot that extends beyond mere revenue diversification. This acquisition has meaningfully expanded Titan's aftermarket presence, potentially reducing cyclicality across reporting segments while supporting their "one-stop shop" strategy. However, this has come at the cost of increased debt, with net debt rising to
Management's Q1 2025 outlook of
Titan's LSW (Low Sidewall) technology remains a key differentiator, with expansion into mid and low horsepower tractor segments potentially opening new market opportunities. Their renewed focus on military applications for LSW technology could provide diversification beyond traditional agricultural markets.
While management's working capital improvements are encouraging, with effective inventory management and accounts receivable collection, investors should monitor whether the projected second-half recovery materializes as anticipated or if agricultural equipment market headwinds persist longer than expected.
FY 2024 highlights include strong free cash flow generation and successful integration of Carlstar
Positive indicators for H2 2025 and 2026 include improved net farm income and continued success of 'One-Stop Shop' strategy in the aftermarket
Paul Reitz, President and Chief Executive Officer stated, "As we turn the page to 2025, we see a number of reasons to be optimistic that we will see a return to growth for Titan with an improving outlook supported by a combination of internal and external drivers. Internally, we have continued to invest in product innovation while also bolstering our one-stop shop offerings, all of which are enabling us to offer customers the best selection of products. A key part of that is our expanded aftermarket business, which has been a notable positive as it has helped to reduce the level of cyclicality across our three reporting segments. We have the broadest and best product offerings in the market, enabling us to build strong relationships with our customers, OEMs and the aftermarket alike. That will be very important as market conditions turn for the better, and we are well positioned."
Mr. Reitz added, "There is growing support for an improvement in net farm income in 2025 driven by higher market prices for commodities, particularly corn, and an expectation of higher levels of government support to farmers. With more money in farmers' pockets there is a greater ability and willingness to reinvest those profits into capital equipment. Expectations for continued favorable conditions also drive capital investment and we have been pleased to see the positive impact the new administration has had on farmer sentiment. Another factor lending optimism is the current market activity level in
Mr. Reitz continued, "Tariffs are on everyone's mind these days and at this point, we do not anticipate the currently planned tariffs to be an issue for us to navigate. However, I do think it is a mistake to place a tariff on raw steel without also implementing one on all steel related products from the tariffed countries to close the loop for companies trying to avoid that tariff. We have seen tariffs come and go over the years and nobody can predict exactly where tariff policies will be in the future, but I believe in the long-run tariffs should be a net positive for Titan. We expect, as we have during more complex and volatile times, that Titan will continue to leverage its leading product portfolio, strong domestic manufacturing and distribution footprint, and global presence to allow us to serve our customers and mitigate their risks better than our competition."
Mr. Reitz added, "We are pleased that our sequential growth rate from Q4 was substantially higher than the average levels over the past decade. Our conversations with some OEM customers are taking a more positive tone of late, with several asking about our readiness to ramp up production in the second half of the year. As we have also noted, a key part of our strategy in recent years has been our aftermarket business in all three of our reporting segments, and our strategic acquisition last year has enabled us to cement into place our one-stop shop strategy to serve the aftermarket."
Mr. Reitz concluded, "Our strong culture of innovation, as exemplified by our game-changing LSW technology, continues to add value for our customers, and we will continue to prioritize the development of new products. LSWs provide a range of benefits for farmers, and we are leveraging those positive experiences and case studies as we introduce LSWs to the mid and low horsepower tractor segments of the market. We are also dedicating resources to re-establish our position as a supplier for the US military. Our LSWs are well-suited for those applications, and we are optimistic about our opportunities there. Lastly, we recognize there is also value in providing our customers with dependable products at the commodity end of the spectrum. With that in mind, we have expanded our third-party sourcing, which rounds out our one-stop shop strategy. Taken all together, we are confident that we have the right products, the right strategy, and the right team to drive solid performance in 2025, and most importantly for the long-term."
First Quarter 2025 Outlook
David Martin, Chief Financial Officer, added, "In the first quarter, we expect sales between
Results of Operations
Net sales for the fourth quarter ended December 31, 2024, were
Gross profit for the fourth quarter ended December 31, 2024 was
Selling, general, administrative, research and development (SGARD) expenses for the fourth quarter of 2024 were
Loss from operations for the fourth quarter of 2024 was (
Segment Information
Agricultural Segment
(Amounts in thousands) | Three months ended | Twelve months ended | |||||||||
December 31, | December 31, | ||||||||||
2024 | 2023 | % Decrease | 2024 | 2023 | % Decrease | ||||||
Net sales | $ 157,138 | $ 192,564 | (18.4) % | $ 788,580 | $ 980,537 | (19.6) % | |||||
Gross profit | $ 14,346 | $ 28,014 | (48.8) % | $ 103,988 | $ 163,026 | (36.2) % | |||||
Profit margin | 9.1 % | 14.5 % | (37.2) % | 13.2 % | 16.6 % | (20.5) % | |||||
(Loss) income from operations | $ (1,912) | $ 14,571 | (113.1) % | $ 39,780 | $ 100,642 | (60.5) % | |||||
Net sales in the agricultural segment were
Gross profit in the agricultural segment was
Earthmoving/Construction Segment
(Amounts in thousands) | Three months ended | Twelve months ended | |||||||||
December 31, | December 31, | ||||||||||
2024 | 2023 | % Decrease | 2024 | 2023 | % Decrease | ||||||
Net sales | $ 116,306 | $ 159,106 | (26.9) % | $ 583,391 | $ 687,758 | (15.2) % | |||||
Gross profit | $ 6,895 | $ 22,107 | (68.8) % | $ 62,824 | $ 110,690 | (43.2) % | |||||
Profit margin | 5.9 % | 13.9 % | (57.6) % | 10.8 % | 16.1 % | (32.9) % | |||||
(Loss) income from operations | $ (6,961) | $ 8,561 | (181.3) % | $ 7,009 | $ 55,122 | (87.3) % | |||||
Net sales in the earthmoving / construction segment were
Gross profit in the earthmoving/construction segment was
Consumer Segment
(Amounts in thousands) | Three months ended | Twelve months ended | |||||||||
December 31, | December 31, | ||||||||||
2024 | 2023 | % | 2024 | 2023 | % | ||||||
Net sales | $ 110,129 | $ 38,529 | 185.8 % | $ 473,966 | $ 153,505 | 208.8 % | |||||
Gross profit | $ 19,944 | $ 8,203 | 143.1 % | $ 90,990 | $ 32,133 | 183.2 % | |||||
Profit margin | 18.1 % | 21.3 % | (15.0) % | 19.2 % | 20.9 % | (8.1) % | |||||
(Loss) income from operations | $ (2,367) | $ 5,197 | (145.5) % | $ 20,477 | $ 22,380 | (8.5) % | |||||
Net sales in the consumer segment were
Gross profit from the consumer segment was
Non-GAAP Financial Measures
Adjusted EBITDA was
Adjusted net income applicable to common shareholders for the fourth quarter of 2024 was
Financial Condition
The Company ended 2024 with total cash and cash equivalents of
When comparing the year ended December 31, 2024, to 2023, operating cash flows decreased by
Capital expenditures were
Teleconference and Webcast
Titan will be hosting a teleconference and webcast to discuss the fourth quarter financial results on Thursday, February 27, 2025, at 9 a.m. Eastern Time.
The real-time, listen-only webcast can be accessed using the following link release https://events.q4inc.com/attendee/950721247 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 15 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:
All Other Locations: https://www.netroadshow.com/conferencing/global-numbers?confId=56511
Participants Access Code: 639748
About Titan
Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in
Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements are covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "would," "could," "potential," "may," "will," and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, these assumptions are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond Titan International, Inc.'s control. As a result, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to, the effect of geopolitical instability; the effect of a recession on the Company and its customers and suppliers; changes in the Company's end-user markets into which the Company sells its products as a result of domestic and world economic or regulatory influences or otherwise; changes in the marketplace, including new products and pricing changes by the Company's competitors; the Company's ability to maintain satisfactory labor relations; unfavorable outcomes of legal proceedings; the Company's ability to comply with current or future regulations applicable to the Company's business and the industry in which it competes or any actions taken or orders issued by regulatory authorities; availability and price of raw materials; levels of operating efficiencies; the effects of the Company's indebtedness and its compliance with the terms thereof; changes in the interest rate environment and their effects on the Company's outstanding indebtedness; unfavorable product liability and warranty claims; actions of domestic and foreign governments, including the imposition of additional tariffs; geopolitical and economic uncertainties relating to the countries in which the Company operates or does business; risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses; results of investments; the realization of projected synergies; the effects of potential processes to explore various strategic transactions, including potential dispositions; fluctuations in currency translations; risks associated with environmental laws and regulations; risks relating to our manufacturing facilities, including that any of our material facilities may become inoperable; risks relating to financial reporting, internal controls, tax accounting, and information systems; and the other risks and factors detailed in the Company's periodic reports filed with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those reports. These forward-looking statements are made only as of the date hereof. The Company cautions that any forward-looking statements included in this press release are subject to a number of risks and uncertainties, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason, except as required by law.
Titan International, Inc. Consolidated Statements of Operations Amounts in thousands, except per share data
| |||||||
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(unaudited) | (unaudited) | ||||||
Net sales | $ 383,573 | $ 390,199 | $ 1,845,937 | $ 1,821,800 | |||
Cost of sales | 342,388 | 331,875 | 1,588,135 | 1,515,951 | |||
Gross profit | 41,185 | 58,324 | 257,802 | 305,849 | |||
Selling, general and administrative expenses | 51,258 | 32,021 | 191,794 | 134,938 | |||
Acquisition related expenses | — | — | 6,196 | — | |||
Research and development expenses | 4,449 | 3,140 | 16,520 | 12,539 | |||
Royalty expense | 2,495 | 2,445 | 10,108 | 9,645 | |||
Income from operations | (17,017) | 20,718 | 33,184 | 148,727 | |||
Interest expense | (9,326) | (6,711) | (36,429) | (29,157) | |||
Interest income | 2,541 | 4,111 | 11,024 | 10,372 | |||
Foreign exchange loss | (3,785) | (21,940) | (6,123) | (22,822) | |||
Other income | 2,558 | 219 | 6,615 | 2,628 | |||
(Loss) income before income taxes | (25,029) | (3,603) | 8,271 | 109,748 | |||
(Benefit) provision for income taxes | (26,242) | (2,321) | 11,861 | 26,042 | |||
Net income (loss) | 1,213 | (1,282) | (3,590) | 83,706 | |||
Net (loss) income attributable to noncontrolling interests | (126) | 1,283 | 1,970 | 4,946 | |||
Net income (loss) attributable to Titan and applicable to common shareholders | $ 1,339 | $ (2,565) | $ (5,560) | $ 78,760 | |||
Earnings (loss) per common share: | |||||||
Basic | $ .02 | $ (.04) | $ (.08) | $ 1.26 | |||
Diluted | $ .02 | $ (.04) | $ (.08) | $ 1.25 | |||
Average common shares and equivalents outstanding: | |||||||
Basic | 64,976 | 61,389 | 68,662 | 62,452 | |||
Diluted | 65,572 | 62,088 | 68,662 | 62,961 | |||
Titan International, Inc. Consolidated Balance Sheets Amounts in thousands, except share data
| |||
December 31, | December 31, | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 195,974 | $ 220,251 | |
Accounts receivable, net of allowance of | 211,720 | 219,145 | |
Inventories | 437,192 | 365,156 | |
Prepaid and other current assets | 67,151 | 72,229 | |
Total current assets | 912,037 | 876,781 | |
Property, plant and equipment, net | 421,218 | 321,694 | |
Operating lease assets | 117,027 | 11,955 | |
Goodwill | 29,563 | — | |
Intangible assets, net | 11,985 | 1,431 | |
Deferred income taxes | 41,732 | 38,033 | |
Other long-term assets | 51,391 | 39,351 | |
Total assets | $ 1,584,953 | $ 1,289,245 | |
Liabilities | |||
Current liabilities | |||
Short-term debt | $ 12,479 | $ 16,913 | |
Accounts payable | 219,586 | 201,201 | |
Operating leases | 11,999 | 5,021 | |
Other current liabilities | 143,294 | 139,378 | |
Total current liabilities | 387,358 | 362,513 | |
Long-term debt | 552,966 | 409,178 | |
Deferred income taxes | 6,416 | 2,234 | |
Operating leases | 106,020 | 6,153 | |
Other long-term liabilities | 38,537 | 41,752 | |
Total liabilities | 1,091,297 | 821,830 | |
Equity | |||
Titan stockholders' equity | |||
Common stock ( | — | — | |
Additional paid-in capital | 740,223 | 569,065 | |
Retained earnings | 164,063 | 169,623 | |
Treasury stock (at cost, 15,307,600 shares at December 31, 2024 and 5,809,414 shares at December 31, 2023) | (122,336) | (52,585) | |
Accumulated other comprehensive loss | (285,877) | (219,043) | |
Total Titan stockholders' equity | 496,073 | 467,060 | |
Noncontrolling interests | (2,417) | 355 | |
Total equity | 493,656 | 467,415 | |
Total liabilities and equity | $ 1,584,953 | $ 1,289,245 | |
Titan International, Inc. Consolidated Statements of Cash Flows All amounts in thousands
| |||
Twelve months ended | |||
December 31, | |||
Cash flows from operating activities: | 2024 | 2023 | |
Net (loss) income | $ (3,590) | $ 83,706 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 60,704 | 42,434 | |
Deferred income tax benefit | (6,358) | (2,081) | |
Income on indirect taxes | — | (3,096) | |
Gain on fixed asset and investment sale | (425) | (644) | |
Stock-based compensation | 5,404 | 5,235 | |
Issuance of stock under 401(k) plan | 1,326 | 1,776 | |
Gain from property insurance settlement | (3,537) | — | |
Foreign currency (gain) loss | (506) | 19,734 | |
(Increase) decrease in assets, net of acquisition: | |||
Accounts receivable | 73,825 | 42,871 | |
Inventories | 51,481 | 31,635 | |
Prepaid and other current assets | 12,106 | 17,596 | |
Other assets | (5,482) | (2) | |
Increase (decrease) in liabilities, net of acquisition: | |||
Accounts payable | (29,169) | (62,725) | |
Other current liabilities | (15,290) | 872 | |
Other liabilities | 998 | 2,039 | |
Net cash provided by operating activities | 141,487 | 179,350 | |
Cash flows from investing activities: | |||
Capital expenditures | (65,624) | (60,799) | |
Business acquisition, net of cash acquired | (143,643) | — | |
Proceeds from sale of investments | 1,791 | 2,085 | |
Proceeds from property insurance settlement | 3,537 | — | |
Other investing activities | 2,341 | 1,791 | |
Net cash used for investing activities | (201,598) | (56,923) | |
Cash flows from financing activities: | |||
Proceeds from borrowings | 213,199 | 6,666 | |
Payment on debt | (70,291) | (27,608) | |
Payment of debt issuance costs | (3,115) | — | |
Repurchase of common stock | (16,383) | (32,579) | |
Repurchase of common stock from related party | (57,636) | — | |
Other financing activities | (1,223) | (2,495) | |
Net cash provided by (used for) financing activities | 64,551 | (56,016) | |
Effect of exchange rate changes on cash | (28,717) | (5,737) | |
Net (decrease) increase in cash and cash equivalents | (24,277) | 60,674 | |
Cash and cash equivalents, beginning of year | 220,251 | 159,577 | |
Cash and cash equivalents, end of year | $ 195,974 | $ 220,251 | |
Supplemental information: | |||
Interest paid | $ 37,179 | $ 30,269 | |
Income taxes paid, net of refunds received | $ 20,360 | $ 21,801 | |
Non cash financing activity: | |||
Issuance of common stock in connection with business acquisition | $ 168,693 | $ — | |
Titan International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Amounts in thousands, except earnings per share data
The Company reports its financial results in accordance with generally accepted accounting principles in
We present adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, and net debt, as we believe that they assist investors with analyzing our business results. In addition, management reviews each of these non-GAAP financial measures in order to evaluate the financial performance of each of our segments, as well as the Company's performance as a whole. We believe that the presentation of these non‑GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.
Adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, and net debt should be considered supplemental to, not a substitute for, the financial measures calculated in accordance with GAAP. One should not consider these measures in isolation or as a substitute for our results reported under GAAP. These measures have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may be calculated differently than non-GAAP financial measures reported by other companies, limiting their usefulness as comparative measures. We attempt to compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
The table below provides a reconciliation of adjusted gross profit to gross profit, the most directly comparable GAAP financial measure, for the years ended December 31, 2024 and 2023 (in thousands, except percentages).
Twelve months ended | Twelve months ended | |||||
December 31, 2024 | December 31, 2023 | |||||
Agricultural | Earthmoving/ | Consumer | Total | Total | ||
Gross profit, as reported | $ 103,988 | $ 62,824 | $ 90,990 | $ 257,802 | $ 305,849 | |
Gross Margin | 13.2 % | 10.8 % | 19.2 % | 14.0 % | 16.8 % | |
Adjustments: | ||||||
Carlstar inventory fair value step-up | 1,809 | 318 | 9,373 | 11,500 | — | |
Gross profit, as adjusted | $ 105,797 | $ 63,142 | $ 100,363 | $ 269,302 | $ 305,849 | |
Adjusted Gross Margin | 13.4 % | 10.8 % | 21.2 % | 14.6 % | 16.8 % | |
The table below provides a reconciliation of adjusted net income attributable to Titan to net income applicable to common shareholders, the most directly comparable GAAP financial measure, for each of the three and twelve month periods ended December 31, 2024 and 2023.
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) attributable to Titan and applicable to common shareholders | $ 1,339 | $ (2,565) | $ (5,560) | $ 78,760 | |||
Adjustments: | |||||||
Foreign exchange loss | 3,785 | 21,940 | 6,123 | 22,822 | |||
Carlstar transaction costs | — | — | 6,196 | — | |||
Carlstar inventory fair value step-up | — | — | 11,500 | — | |||
(Gain) loss on sale of investment | (653) | — | 379 | — | |||
Gain on property insurance settlement | — | — | (1,913) | — | |||
Income on Brazilian indirect tax credits, net of taxes (a) | — | — | — | (3,096) | |||
Restructuring charges | 1,295 | 1,637 | 1,295 | 1,637 | |||
Adjusted net income attributable to Titan and applicable to common shareholders | $ 5,766 | $ 21,012 | $ 18,020 | $ 100,123 | |||
Adjusted income per common share: | |||||||
Basic | $ 0.09 | $ 0.34 | $ 0.26 | $ 1.60 | |||
Diluted | $ 0.09 | $ 0.34 | $ 0.26 | $ 1.59 | |||
Average common shares and equivalents outstanding: | |||||||
Basic | 64,976 | 61,389 | 68,662 | 62,452 | |||
Diluted | 65,572 | 62,088 | 68,662 | 62,961 | |||
(a) The Company incurred global intangible low-taxed income (GILTI) tax during the fourth quarter associated with the income on the Brazilian indirect tax credits. |
The table below provides a reconciliation of net income to EBITDA and adjusted EBITDA, non-GAAP financial measures, for the three and twelve-month periods ended December 31, 2024 and 2023.
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net Income (loss) | $ 1,213 | $ (1,282) | $ (3,590) | $ 83,706 | |||
Adjustments: | |||||||
Provision for income taxes | (26,242) | (2,321) | 11,861 | 26,042 | |||
Interest expense, excluding interest income | 9,107 | 7,274 | 35,553 | 29,063 | |||
Depreciation and amortization | 20,645 | 10,836 | 60,704 | 42,434 | |||
EBITDA | $ 4,723 | $ 14,507 | $ 104,528 | $ 181,245 | |||
Adjustments: | |||||||
Foreign exchange loss | 3,785 | 21,940 | 6,123 | 22,822 | |||
Carlstar transaction costs | — | — | 6,196 | — | |||
Carlstar inventory fair value step-up | — | — | 11,500 | — | |||
(Gain) loss on sale of investment | (653) | — | 379 | — | |||
Gain on property insurance settlement | — | — | (1,913) | — | |||
Income on Brazilian indirect tax credits, gross | — | — | — | (475) | |||
Restructuring charges | 1,295 | 1,637 | 1,295 | 1,637 | |||
Adjusted EBITDA | $ 9,150 | $ 38,084 | $ 128,108 | $ 205,229 | |||
The table below sets forth, for the three and twelve-month periods ended December 31, 2024, the impact to net sales of currency translation (constant currency) by geography (in thousands, except percentages):
Three Months Ended December 31, | Change due to currency | Three Months Ended | |||||||||
2024 | 2023 | % Change | $ | % | Constant Currency | ||||||
United States | $ 183,066 | $ 160,352 | 14.2 % | $ — | — % | $ 183,066 | |||||
99,475 | 134,265 | (25.9) % | (1,505) | (1.1) % | 100,980 | ||||||
67,300 | 71,847 | (6.3) % | (13,738) | (19.1) % | 81,038 | ||||||
33,732 | 23,735 | 42.1 % | (1,391) | (5.9) % | 35,123 | ||||||
Net Sales | $ 383,573 | $ 390,199 | (1.7) % | $ (16,634) | (4.3) % | $ 400,207 | |||||
Twelve Months Ended December 31, | Change due to currency | Twelve Months Ended | |||||||||
2024 | 2023 | % Change from 2023 | $ | % | Constant Currency | ||||||
United States | $ 935,724 | $ 814,676 | 14.9 % | $ — | — % | $ 935,724 | |||||
462,066 | 558,677 | (17.3) % | (6,724) | (1.2) % | 468,790 | ||||||
292,830 | 354,979 | (17.5) % | (39,941) | (11.3) % | 332,771 | ||||||
155,317 | 93,468 | 66.2 % | (13,940) | (14.9) % | 169,257 | ||||||
Net Sales | $ 1,845,937 | $ 1,821,800 | 1.3 % | $ (60,605) | (3.3) % | $ 1,906,542 | |||||
The table below provides a reconciliation of net debt, which is a non-GAAP financial measure:
December 31, | September 30, | December 31, | ||||
Long-term debt | $ 552,966 | $ 503,429 | $ 409,178 | |||
Short-term debt | 12,479 | 15,025 | 16,913 | |||
Total debt | $ 565,445 | $ 518,454 | $ 426,091 | |||
Cash and cash equivalents | 195,974 | 227,293 | 220,251 | |||
Net debt | $ 369,471 | $ 291,161 | $ 205,840 |
The table below provides a reconciliation of net cash provided by operating activities to free cash flow, which is a non-GAAP financial measure:
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net cash provided by operating activities | $ 8,736 | $ 39,244 | $ 141,487 | $ 179,350 | |||
Capital expenditures | (13,306) | (19,319) | (65,624) | (60,799) | |||
Free cash flow | $ (4,570) | $ 19,925 | $ 75,863 | $ 118,551 | |||
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SOURCE Titan International, Inc.
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