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Titan International(TWI) - 2024 Q3 - Quarterly Results
TWITitan International(TWI)2024-10-30 20:29

Financial Performance - Titan International reported net sales of 448.0millionforQ32024,upfrom448.0 million for Q3 2024, up from 401.8 million in Q3 2023, driven by higher volumes in the consumer segment and contributions from the Carlstar acquisition[6]. - Adjusted EBITDA for Q3 2024 was 20million,adecreasefrom20 million, a decrease from 40.5 million in the same period last year, reflecting challenging market conditions[19]. - Adjusted net income applicable to common shareholders for Q3 2024 was a loss of 13.9million,or13.9 million, or (0.19) per share, compared to an income of 18.4million,or18.4 million, or 0.29 per share in Q3 2023[20]. - The company reported a net loss of 18.199millionforQ32024,comparedtoanetincomeof18.199 million for Q3 2024, compared to a net income of 19.663 million in Q3 2023[32]. - Basic and diluted loss per share for Q3 2024 was (0.25),comparedtoearningsof(0.25), compared to earnings of 0.31 per share in Q3 2023[32]. - Adjusted net loss attributable to Titan for the three months ended September 30, 2024, was (13,892)thousand,comparedtoaprofitof(13,892) thousand, compared to a profit of 18,404 thousand for the same period in 2023[43]. - EBITDA for the nine months ended September 30, 2024, was 99,805thousand,downfrom99,805 thousand, down from 166,738 thousand in the same period of 2023, indicating a decline of 40.0%[46]. - Adjusted EBITDA for the nine months ended September 30, 2024, was 118,958thousand,downfrom118,958 thousand, down from 167,145 thousand in the same period of 2023, reflecting a decrease of 28.8%[46]. Cash Flow and Debt Management - Free cash flow for Q3 2024 was strong at 42million,allowingthecompanytoreducenetdebtto42 million, allowing the company to reduce net debt to 291 million from 326million[5].−TotalcashandcashequivalentsattheendofQ32024were326 million[5]. - Total cash and cash equivalents at the end of Q3 2024 were 227.3 million, up from 220.3millionattheendof2023;long−termdebtincreasedto220.3 million at the end of 2023; long-term debt increased to 503.4 million from 409.2million[21].−Netcashprovidedbyoperatingactivitiesforthefirstninemonthsof2024was409.2 million[21]. - Net cash provided by operating activities for the first nine months of 2024 was 132.8 million, down from 140.1millioninthesameperiodof2023,reflectingadecreaseof140.1 million in the same period of 2023, reflecting a decrease of 7.4 million[22]. - Total liabilities rose to 1,088,670,reflectinga321,088,670, reflecting a 32% increase from 821,830 at the end of 2023[34]. - Total debt as of September 30, 2024, was 518,454thousand,anincreasefrom518,454 thousand, an increase from 426,091 thousand as of December 31, 2023[48]. - Net debt as of September 30, 2024, was 291,161thousand,anincreasefrom291,161 thousand, an increase from 205,840 thousand as of December 31, 2023[48]. Segment Performance - The agricultural segment saw net sales decline by 17.6% to 175.4millioninQ32024,primarilyduetoreducedglobaldemandforagriculturalequipment[12].−Grossprofitmarginfortheagriculturalsegmentfellto9.5175.4 million in Q3 2024, primarily due to reduced global demand for agricultural equipment[12]. - Gross profit margin for the agricultural segment fell to 9.5% in Q3 2024 from 17.4% in Q3 2023, attributed to lower sales volume and adverse price/mix effects[12]. - The earthmoving/construction segment reported a 12.1% decrease in net sales to 136.3 million for Q3 2024, impacted by softer demand in North America and Europe[14]. - Consumer segment net sales surged by 303.4% to 136.2millioninQ32024,largelyduetohighersalesvolumesfollowingtheCarlstaracquisition[17].−TheUnitedStatesmarketsawarevenueincreaseof44.6136.2 million in Q3 2024, largely due to higher sales volumes following the Carlstar acquisition[17]. - The United States market saw a revenue increase of 44.6% for the three months ended September 30, 2024, reaching 250,567 thousand compared to 173,300thousandinthesameperiodof2023[47].InvestmentandDevelopment−Capitalexpendituresforthefirstninemonthsof2024were173,300 thousand in the same period of 2023[47]. Investment and Development - Capital expenditures for the first nine months of 2024 were 52.3 million, compared to 41.5millioninthesameperiodof2023,indicatinganincreaseininvestmentforequipmentandnewproductdevelopment[23].−ResearchanddevelopmentexpensesforQ32024were41.5 million in the same period of 2023, indicating an increase in investment for equipment and new product development[23]. - Research and development expenses for Q3 2024 were 4.199 million, up from 3.167millioninQ32023,indicatingafocusoninnovation[32].−TitanisfocusingonexpandingitsLow−SideWall(LSW)technologytoabroaderrangeofagriculturalequipment,targetinganadditionalmarketofapproximately25,000newtractorsannually[2].−TheintegrationofCarlstarisprogressingwell,withongoingeffortstodrivegrowththroughproductdevelopmentandcross−sellingopportunities[4].FutureOutlook−ThecompanyplanstoachieveQ42024salesbetween3.167 million in Q3 2023, indicating a focus on innovation[32]. - Titan is focusing on expanding its Low-Side Wall (LSW) technology to a broader range of agricultural equipment, targeting an additional market of approximately 25,000 new tractors annually[2]. - The integration of Carlstar is progressing well, with ongoing efforts to drive growth through product development and cross-selling opportunities[4]. Future Outlook - The company plans to achieve Q4 2024 sales between 375 million and 425million,withadjustedEBITDAexpectedtobebreakevento425 million, with adjusted EBITDA expected to be breakeven to 10 million[5]. - The company will host a teleconference on October 31, 2024, to discuss the third quarter financial results[24].