NYSE$TWI

Titan International Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Titan International reported a decrease in net sales and a net loss applicable to common shareholders for Q4 2019.

Titan International's Q4 2019 results showed a decrease in net sales to $301.8 million compared to $363.4 million in Q4 2018. The company reported a net loss applicable to common shareholders of $24.8 million, or $(0.41) per share, compared to a net loss of $13.4 million, or $(0.22) per share, in the same period last year. The adjusted EBITDA was $(2.9) million in Q4 2019 compared to $14.8 million in Q4 2018.

  • Net sales decreased by $61.6 million YOY to $301.8 million, or $308.2 million on a constant currency basis.
  • Loss from operations was $17.5 million.
  • Net loss applicable to common shareholders was $24.8 million, with EPS of $(0.41) and adjusted EPS of $(0.40).
  • Adjusted EBITDA was $(2.9) million.

Headline financials

Total Revenue

$302M

Previous: $363M-17.0%
EPS (adj)

-$0.40

Previous: -$0.21-90.5%
Capital Expenditures

$10.2M

Previous: $12.5M-18.7%
Free Cash Flow

$4.07M

Previous: -$16M+125.5%
Net Income

-$25.8M

Previous: -$12.3M-110.0%
Operating Income

-$17.5M

Previous: -$925K-1794.3%
Gross Profit

$18.3M

Previous: $36.7M-50.0%
Cash & Equivalents

$66.8M

Previous: $81.7M-18.2%
Total Assets

$1.11B

Previous: $1.25B-10.9%
Stock-Based Comp

$422K

Previous: $283K+49.1%

Revenue & EPS history

Titan · Revenue · Quarterly

$302M

Q4 2019-17%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Titan · $302M total across 3 segments · Q4 2019

  • Agricultural
    $140M
  • Earthmoving/Construction
    $132M
  • Consumer
    $30.3M

Forward guidance

Titan is targeting full-year EBITDA of $75 million excluding currency impacts, on relatively flat sales of approximately $1.45 billion.

Tailwinds

  • North American farmer sentiment has improved.
  • Operational cost structure actions are designed to drive improvements of $10 - $12 million.
  • Strategic pricing that recognizes the value of our products is being introduced.
  • North American Wheel operations are expected to perform significantly better.
  • North American Ag OE customers should return to normalcy in terms of their production at retail levels.

Headwinds

  • Markets are volatile.
  • Markets are uncertain.
  • There were poor Ag conditions due to North America weather.
  • There were China trade battles.
  • Primary OE customers producing below retail demand levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-1.7%

Avg return

Earnings day

-1.3%

Avg return

5 days after

+2.7%

Avg return

30 days after

42%

27 / 65 earnings

Positive

+22.9%

Q2 2016

Best reaction

-34.2%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-7.4%
Q4 2025-5.8%-12.7%-35.3%
Q3 2025-4.1%-1.6%+1.6%
Q1 2025-13.6%-6.9%-1.5%
Q4 2024-9.3%-13.4%-1.7%
Q3 2024-11.4%-11.3%+0.7%
Q2 2024-0.5%-9.8%-2.1%
Q1 2024-5.2%-17.6%-25.0%
Q4 2023-10.9%-11.0%-11.9%
Q3 2023+3.1%+10.0%+18.8%
Q2 2023-11.2%-5.5%-0.2%
Q1 2023-1.1%+3.8%+7.6%
Q4 2022-17.5%-11.0%-30.6%
Q3 2022+1.2%+0.3%-5.5%
Q2 2022-15.5%-12.0%-16.3%
Q1 2022+16.5%+12.5%+29.8%
Q4 2021+6.8%+0.5%+32.5%
Q3 2021+10.3%+10.2%-6.8%
Q2 2021+11.1%+6.1%+8.6%
Q1 2021+1.6%-5.6%-13.9%
Q4 2020-2.1%-9.1%+4.6%
Q3 2020+15.3%+73.6%+105.6%
Q2 2020+9.4%+25.8%+69.8%
Q1 2020+6.3%+3.6%+67.6%
Q4 2019-12.4%-28.9%-33.0%
Q3 2019-4.2%+15.3%+1.7%
Q2 2019-20.6%-23.3%-31.2%
Q1 2019-16.1%-18.6%-38.1%
Q4 2018-28.3%-24.5%+6.3%
Q3 2018-3.5%-0.9%-15.7%
Q2 2018-30.5%-27.7%-26.1%
Q1 2018+16.1%+10.6%+9.9%
Q4 2017+17.2%+7.6%+5.5%
Q3 2017+14.5%+15.4%+22.7%
Q2 2017-10.3%-19.5%-31.8%
Q1 2017+10.8%+2.8%+7.9%
Q4 2016-11.3%-15.0%-26.9%
Q3 2016+5.2%+10.6%+19.3%
Q2 2016+22.9%+32.9%+34.5%
Q1 2016+0.6%
Q4 2015+21.0%
Q3 2015-34.2%
Q2 2015+5.2%
Q1 2015+15.7%
Q4 2014+6.2%
Q3 2014+3.8%
Q2 2014-8.5%
Q1 2014-7.5%
Q4 2013-0.8%
Q3 2013+2.0%
Q2 2013-5.6%
Q1 2013+7.6%
Q4 2012-18.0%
Q3 2012+13.0%
Q2 2012-5.2%
Q1 2011+13.4%
Q1 2012+2.7%
Q1 2010-5.8%
Q4 2009-5.8%
Q4 2011-5.8%
Q3 2010-4.0%
Q3 2011-4.0%
Q2 2011-6.0%
Q2 2010-6.0%
Q4 2010-6.0%

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