Titan Machinery (NASDAQ: TITN) reported Q1 EPS of ($0.07), $0.01 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $246 million versus the consensus estimate of $276.27 million.

David Meyer, Titan Machinery’s Chairman and Chief Executive Officer, stated, "During the first quarter, we experienced improvements in gross and pre-tax margins driven by higher equipment margins, lower interest expense and our better-positioned expense structure. These results were partially offset by the late start to the spring planting season, which affected certain areas of our business including parts and service revenue. Overall, our first quarter margin improvements highlight the enhancements we've made to our operating model, and we believe this is setting the foundation for stronger top and bottom line results in fiscal 2019."

Fiscal 2019 First Quarter Results

Consolidated Results

• For the first quarter of fiscal 2019, revenue was $245.7 million, compared to $264.1 million in the first quarter last year. Equipment sales were $156.9 million for the first quarter of fiscal 2019, compared to $167.9 million in the first quarter last year. Parts sales were $51.5 million for the first quarter of fiscal 2019, compared to $56.6 million in the first quarter last year. Revenue generated from service was $27.4 million for the first quarter of fiscal 2019, compared to $28.8 million in the first quarter last year. Revenue from rental and other was $9.9 million for the first quarter of fiscal 2019, compared to $10.9 million in the first quarter last year.
• Gross profit for the first quarter of fiscal 2019 was $47.6 million, compared to $48.9 million in the first quarter last year. The Company’s gross profit margin was 19.4% in the first quarter of fiscal 2019, compared to 18.5% in the first quarter last year primarily due to improved equipment margins.
• Operating expenses decreased by $5.3 million to $46.7 million, or 19.1% of revenue, for the first quarter of fiscal 2019, compared to $52.0 million, or 19.6% of revenue, for the first quarter of last year. These decreases are primarily the result of cost savings arising from the Company's fiscal 2018 restructuring efforts that were completed early in the third quarter of fiscal 2018, partially offset by an increase in International segment operating expenses resulting from the continued build-out of the Company's footprint and presence in European markets.
• Floorplan interest expense was $1.4 million for the first quarter of fiscal 2019, compared to $2.7 million in the first quarter of last year. The decrease in floorplan interest expense is primarily due to a decrease in the level of interest-bearing inventory in the first quarter of fiscal 2019 as well as a $0.6 million expense recognized in the first quarter of fiscal 2018 related to the unwinding of the Company's interest rate swap instrument.
• In the first quarter of fiscal 2019, net loss was $1.6 million, or a loss per diluted share of $0.07, compared to a net loss of $5.9 million, or a loss per diluted share of $0.27 for the first quarter of last year.
• On an adjusted basis, net loss for the first quarter of fiscal 2019 was $1.6 million, or an adjusted loss per diluted share of $0.07, compared to an adjusted net loss of $4.2 million, or an adjusted loss per diluted share of $0.19, for the first quarter of last year.

For earnings history and earnings-related data on Titan Machinery (TITN) click here.