Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 30, 2015 | 31-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | Titan Machinery Inc. | |
Entity Central Index Key | 1409171 | |
Document Type | 10-Q | |
Document Period End Date | 30-Apr-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,392,881 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash | $104,355 | $127,528 |
Receivables (net of allowance of $4,615 and $4,218 as of April 30, 2015 and January 31, 2015, respectively) | 64,892 | 76,382 |
Inventories | 880,060 | 879,440 |
Prepaid expenses and other | 5,179 | 10,634 |
Income taxes receivable | 3,003 | 166 |
Deferred income taxes | 18,488 | 19,025 |
Assets held for sale | 14,946 | 15,312 |
Total current assets | 1,090,923 | 1,128,487 |
Intangibles and Other Assets | ||
Intangible assets, net of accumulated amortization | 5,360 | 5,458 |
Other | 6,649 | 7,122 |
Total intangibles and other assets | 12,009 | 12,580 |
Property and Equipment, net of accumulated depreciation | 194,788 | 208,680 |
Total Assets | 1,297,720 | 1,349,747 |
Current Liabilities | ||
Accounts payable | 17,539 | 17,659 |
Floorplan payable | 606,673 | 627,249 |
Current maturities of long-term debt | 24,677 | 7,749 |
Customer deposits | 26,247 | 35,090 |
Accrued expenses | 33,362 | 35,496 |
Income taxes payable | 0 | 3,529 |
Liabilities held for sale | 1,540 | 2,835 |
Total current liabilities | 710,038 | 729,607 |
Long-Term Liabilities | ||
Senior convertible notes | 133,245 | 132,350 |
Long-term debt, less current maturities | 45,660 | 67,123 |
Deferred income taxes | 39,244 | 38,996 |
Other long-term liabilities | 3,488 | 3,312 |
Total long-term liabilities | 221,637 | 241,781 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, par value $.00001 per share, 45,000 shares authorized; 21,392 shares issued and outstanding at April 30, 2015; 21,406 shares issued and outstanding at January 31, 2015 | 0 | 0 |
Additional paid-in-capital | 240,505 | 240,180 |
Retained earnings | 131,114 | 137,418 |
Accumulated other comprehensive loss | -5,729 | -1,099 |
Total Titan Machinery Inc. stockholders' equity | 365,890 | 376,499 |
Noncontrolling interest | 155 | 1,860 |
Total stockholders' equity | 366,045 | 378,359 |
Total Liabilities and Stockholders' Equity | $1,297,720 | $1,349,747 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | ($4,615) | ($4,218) |
Common stock, par value, in dollars per share | $0.00 | $0.00 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 21,392,000 | 21,406,000 |
Common stock, shares outstanding | 21,392,000 | 21,406,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Revenue | ||
Equipment | $244,983 | $345,045 |
Parts | 61,520 | 68,379 |
Service | 32,902 | 37,084 |
Rental and other | 13,791 | 14,955 |
Total Revenue | 353,196 | 465,463 |
Cost of Revenue | ||
Equipment | 227,033 | 316,282 |
Parts | 43,571 | 48,014 |
Service | 11,360 | 14,403 |
Rental and other | 10,797 | 10,825 |
Total Cost of Revenue | 292,761 | 389,524 |
Gross Profit | 60,435 | 75,939 |
Operating Expenses | 57,110 | 71,152 |
Impairment and Realignment Costs | 1,601 | 2,801 |
Income from Operations | 1,724 | 1,986 |
Other Income (Expense) | ||
Interest income and other income (expense) | -2,124 | -2,578 |
Floorplan interest expense | -4,599 | -4,593 |
Other interest expense | -3,827 | -3,441 |
Loss Before Income Taxes | -8,826 | -8,626 |
Benefit from Income Taxes | -1,936 | -1,733 |
Net Loss Including Noncontrolling Interest | -6,890 | -6,893 |
Less: Net Loss Attributable to Noncontrolling Interest | -586 | -344 |
Net Loss Attributable to Titan Machinery Inc. | -6,304 | -6,549 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 105 | 60 |
Net Loss Attributable to Titan Machinery Inc. Common Stockholders | ($6,199) | ($6,489) |
Earnings (Loss) per Share - Note 1 | ||
Earnings (Loss) per Share - Basic, in dollars per share | ($0.29) | ($0.31) |
Earnings (Loss) per Share - Diluted, in dollars per share | ($0.29) | ($0.31) |
Weighted Average Common Shares - Basic | 21,044 | 20,951 |
Weighted Average Common Shares - Diluted | 21,044 | 20,951 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Net loss including noncontrolling interest | ($6,890) | ($6,893) |
Other Comprehensive Income (Loss) | ||
Foreign currency translation adjustments | -6,191 | -1,220 |
Unrealized gain (loss) on net investment hedge derivative instruments, net of tax expense (benefit) of $44 and ($498) for the three months ended April 30, 2015 and 2014, respectively | 67 | -747 |
Unrealized gain on interest rate swap cash flow hedge derivative instrument, net of tax expense of $72 and $2 for the three months ended April 30, 2015 and 2014, respectively | 109 | 3 |
Unrealized gain on foreign currency contract cash flow hedge derivative instruments, net of tax expense of $21 for the three months ended April 30, 2014 | 0 | 32 |
Other comprehensive income (loss) | -5,749 | -1,923 |
COMPREHENSIVE INCOME (LOSS) | -12,639 | -8,816 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST | -1,705 | -650 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TITAN MACHINERY INC. | -10,934 | -8,166 |
Interest Rate Swap | ||
Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 258 | 0 |
Foreign Exchange Contract | ||
Other Comprehensive Income (Loss) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $8 | $9 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Tax expense (benefit) on unrealized gain (loss) on net investment hedge derivative instruments | $44 | ($498) |
Interest Rate Swap | ||
Tax expense (benefit) on reclassification of gain (loss) on reclassification of gain (loss) on foreign currency contract cash flow hedge derivative instruments | -172 | 0 |
Foreign Exchange Contract | ||
Tax expense (benefit) on reclassification of gain (loss) on reclassification of gain (loss) on foreign currency contract cash flow hedge derivative instruments | 5 | 5 |
Designated as Hedging Instrument | Interest Rate Contract | ||
Tax expense (benefit) on unrealized gain (loss) on cash flow hedge derivative instruments | 72 | 2 |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Tax expense (benefit) on unrealized gain (loss) on cash flow hedge derivative instruments | $0 | $21 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Net Investment Hedges | Unrealized Gains (Losses) on Interest Rate Swap Cash Flow Hedges | Unrealized Gains (Losses) on Foreign Currency Contract Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | Total Titan Machinery Inc. Stockholders' Equity | Noncontrolling Interest |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Jan. 31, 2014 | $411,342 | $238,857 | $169,575 | $1,541 | ($339) | ($737) | ($126) | $339 | $408,771 | $2,571 | |
Balance (in shares) at Jan. 31, 2014 | 21,261 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options, and tax benefits of equity awards | -23 | -23 | -23 | ||||||||
Common stock issued on grant of restricted stock, exercise of stock options, and tax benefits of equity awards (in shares) | -8 | ||||||||||
Stock-based compensation expense | 463 | 463 | 463 | 0 | |||||||
Other (in shares) | 0 | ||||||||||
Other | -1 | -502 | -502 | 501 | |||||||
Comprehensive income (loss): | |||||||||||
Net loss | -6,893 | -6,549 | -6,549 | -344 | |||||||
Other comprehensive income (loss) | -1,923 | -914 | -747 | 3 | 41 | -1,617 | -1,617 | -306 | |||
COMPREHENSIVE INCOME (LOSS) | -8,816 | -8,166 | -650 | ||||||||
Balance at Apr. 30, 2014 | 402,965 | 238,795 | 163,026 | 627 | -1,086 | -734 | -85 | -1,278 | 400,543 | 2,422 | |
Balance (in shares) at Apr. 30, 2014 | 21,253 | ||||||||||
Balance at Jan. 31, 2015 | 378,359 | 240,180 | 137,418 | -1,632 | 2,510 | -1,940 | -37 | -1,099 | 376,499 | 1,860 | |
Balance (in shares) at Jan. 31, 2015 | 21,406 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options, and tax benefits of equity awards | -206 | -206 | -206 | ||||||||
Common stock issued on grant of restricted stock, exercise of stock options, and tax benefits of equity awards (in shares) | -14 | ||||||||||
Stock-based compensation expense | 531 | 531 | 531 | ||||||||
Comprehensive income (loss): | |||||||||||
Net loss | -6,890 | -6,304 | -6,304 | -586 | |||||||
Other comprehensive income (loss) | -5,749 | -5,072 | 67 | 367 | 8 | -4,630 | -4,630 | -1,119 | |||
COMPREHENSIVE INCOME (LOSS) | -12,639 | -10,934 | -1,705 | ||||||||
Balance at Apr. 30, 2015 | $366,045 | $240,505 | $131,114 | ($6,704) | $2,577 | ($1,573) | ($29) | ($5,729) | $365,890 | $155 | |
Balance (in shares) at Apr. 30, 2015 | 21,392 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Operating Activities | ||
Net loss including noncontrolling interest | ($6,890) | ($6,893) |
Adjustments to reconcile net loss including noncontrolling interest to net cash provided by (used for) operating activities | ||
Depreciation and amortization | 6,667 | 6,729 |
Asset Impairment Charges | 152 | 0 |
Deferred income taxes | 497 | 232 |
Stock-based compensation expense | 531 | 463 |
Noncash interest expense | 1,765 | 1,151 |
Unrealized foreign currency (gain) loss on loans to international subsidiaries | 100 | -1,282 |
Other, net | 126 | 646 |
Changes in assets and liabilities | ||
Receivables, prepaid expenses and other assets | 13,525 | 23,925 |
Inventories | 522 | -41,963 |
Manufacturer floorplan payable | 12,980 | -17,308 |
Accounts payable, customer deposits, accrued expenses and other long-term liabilities | -9,092 | -14,639 |
Income taxes | -6,577 | -5,663 |
Net Cash Provided by (Used for) Operating Activities | 14,306 | -54,602 |
Investing Activities | ||
Rental fleet purchases | -112 | -629 |
Property and equipment purchases (excluding rental fleet) | -2,170 | -5,078 |
Proceeds from sale of property and equipment | 634 | 471 |
Proceeds upon settlement of net investment hedge derivative instruments | 180 | 0 |
Payments upon settlement of net investment hedge derivative instruments | 0 | -915 |
Other, net | 18 | 28 |
Net Cash Used for Investing Activities | -1,450 | -6,123 |
Financing Activities | ||
Net change in non-manufacturer floorplan payable | -30,001 | 65,305 |
Proceeds from long-term debt borrowings | 811 | 5,832 |
Principal payments on long-term debt | -5,687 | -2,505 |
Other, net | -443 | -207 |
Net Cash Provided by (Used for) Financing Activities | -35,320 | 68,425 |
Effect of Exchange Rate Changes on Cash | -709 | 69 |
Net Change in Cash | -23,173 | 7,769 |
Cash at Beginning of Period | 127,528 | 74,242 |
Cash at End of Period | 104,355 | 82,011 |
Cash paid during the period | ||
Income taxes, net of refunds | 4,093 | 3,973 |
Interest | 7,684 | 5,475 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Net property and equipment financed with long-term debt, accounts payable and accrued liabilities | 77 | 1,100 |
Net transfer of assets to (from) property and equipment from (to) inventories | ($7,029) | $1,962 |
BUSINESS_ACTIVITY_AND_SIGNIFIC
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | |||||||
Basis of Presentation | ||||||||
The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The quarterly operating results for Titan Machinery Inc. (the “Company”) are subject to fluctuation due to varying weather patterns, which may impact the timing and amount of equipment purchases, rentals, and after-sales parts and service purchases by the Company’s Agriculture, Construction and International customers. Therefore, operating results for the three-month period ended April 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2016. The information contained in the balance sheet as of January 31, 2015 was derived from the audited financial statements for the Company for the year then ended. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended January 31, 2015 as filed with the SEC. | ||||||||
The amounts included in the accompanying unaudited Consolidated Statements of Operations for the three-month period ended April 30, 2014 have been updated to reflect a correction in the Company's VAT asset classification as of April 30, 2014. This correction has been previously disclosed in the Company's Form 10-Q for the period ended July 31, 2014 and the Company's Form 10-K for the year ended January 31, 2015 and resulted from the Company's conclusion, reached subsequent to the issuance of the Company’s interim consolidated financial statements as of and for the period ended April 30, 2014, that the treatment of its prepaid value added tax (“VAT”) asset in Ukraine as a non-monetary asset was incorrect and that the asset should be classified and accounted for as a monetary asset and therefore should be remeasured from Ukrainian hryvnia (“UAH”) to U.S. Dollars (“USD”) using the current rate as opposed to the historical rate used for non-monetary assets. In February of 2014, the National Bank of Ukraine terminated the currency peg of the UAH to the USD; subsequent to the decoupling and as a result of the economic and political conditions present in the country, the UAH experienced significant devaluation. The incorrect classification of the VAT asset as a non-monetary asset coupled with the significant devaluation of the UAH resulted in an overstatement of the Company’s assets (Prepaid expenses and other) as of April 30, 2014 and an understatement of the Company’s loss (Interest income and other income (expense)) for the three months ended April 30, 2014. This correction increased the Company’s Net Loss Attributable to Titan Machinery Inc. by $2.3 million (from the previously reported $4.2 million to $6.5 million) and increased the diluted loss per share by $0.11 (from the previously reported $0.20 loss per share to a $0.31 loss per share). | ||||||||
Nature of Business | ||||||||
The Company is engaged in the retail sale, service and rental of agricultural and construction machinery through its stores in the United States and Europe. The Company’s North American stores are located in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Romania, Serbia and Ukraine. | ||||||||
Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, particularly related to realization of inventory, initial valuation and impairment analyses of intangible assets, collectability of receivables, and income taxes. | ||||||||
Principles of Consolidation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. | ||||||||
Earnings (Loss) Per Share (“EPS”) | ||||||||
The Company uses the two-class method to calculate basic and diluted EPS. Unvested restricted stock awards are considered participating securities because they entitle holders to non-forfeitable rights to dividends during the vesting term. Under the two-class method, basic EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average number of shares of common stock outstanding during the year. | ||||||||
Diluted EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average shares of common stock outstanding after adjusting for potential dilution related to the conversion of all dilutive securities into common stock. All potentially dilutive securities were included in the computation of diluted EPS. There were approximately 211,000 and 375,000 stock options outstanding that were excluded from the computation of diluted EPS for the three months ended April 30, 2015 and 2014, respectively, because they were anti-dilutive. None of the approximately 3,474,000 shares underlying the Company’s senior convertible notes were included in the computation of diluted EPS because the Company’s average stock price was less than the conversion price of $43.17. | ||||||||
The following table sets forth the calculation of the denominator for basic and diluted EPS: | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share data) | ||||||||
Basic Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Plus: Incremental Shares From Assumed Exercise of Stock Options | — | — | ||||||
Diluted Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Earnings (Loss) per Share - Basic | $ | (0.29 | ) | $ | (0.31 | ) | ||
Earnings (Loss) per Share - Diluted | $ | (0.29 | ) | $ | (0.31 | ) | ||
Recent Accounting Guidance | ||||||||
In May 2014, the FASB issued authoritative guidance on accounting for revenue recognition, codified in ASC 606, Revenue from Contracts with Customers. This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. When adopted, the Company will employ one of the two retrospective application methods. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. | ||||||||
In August 2014, the FASB issued authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern. The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is not alleviated, and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The Company will adopt this guidance for the year-ended January 31, 2017, and it will apply to each interim and annual period thereafter. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. | ||||||||
In April 2015, the FASB amended authoritative guidance on debt issuance costs, codified in ASC 835-30, Imputation of Interest. The amended guidance changes the balance sheet presentation of debt issuance costs to be a direct deduction from the related debt liability rather than an asset. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
New equipment | $ | 451,587 | $ | 442,984 | ||||
Used equipment | 314,818 | 318,308 | ||||||
Parts and attachments | 100,944 | 107,893 | ||||||
Work in process | 12,711 | 10,255 | ||||||
$ | 880,060 | $ | 879,440 | |||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT | |||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Rental fleet equipment | $ | 137,616 | $ | 148,198 | ||||
Machinery and equipment | 23,858 | 24,071 | ||||||
Vehicles | 42,436 | 43,435 | ||||||
Furniture and fixtures | 39,697 | 39,421 | ||||||
Land, buildings, and leasehold improvements | 57,074 | 57,630 | ||||||
300,681 | 312,755 | |||||||
Less accumulated depreciation | (105,893 | ) | (104,075 | ) | ||||
$ | 194,788 | $ | 208,680 | |||||
LINES_OF_CREDIT_FLOORPLAN_PAYA
LINES OF CREDIT / FLOORPLAN PAYABLE | 3 Months Ended |
Apr. 30, 2015 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT / FLOORPLAN PAYABLE | LINES OF CREDIT / FLOORPLAN PAYABLE |
Floorplan Lines of Credit | |
Floorplan payable balances reflect the amount owed for new equipment inventory purchased from a manufacturer and for used equipment inventory, which is primarily purchased through trade-in on equipment sales. Certain of the manufacturers from which the Company purchases new equipment inventory offer financing on these purchases, either offered directly from the manufacturer or through the manufacturers’ captive finance subsidiaries. CNH Industrial America LLC's captive finance subsidiary, CNH Industrial Capital America LLC ("CNH Industrial Capital"), also provides financing of used equipment inventory. The Company also has floorplan payable balances with non-manufacturer lenders for new and used equipment inventory. Changes in manufacturer floorplan payable are reported as operating cash flows and changes in non-manufacturer floorplan payable are reported as financing cash flows in the Company's consolidated statements of cash flows. The Company has three significant floorplan lines of credit, credit facilities related to its foreign subsidiaries, and other floorplan payable balances with non-manufacturer lenders and manufacturers other than CNH Industrial. | |
As of April 30, 2015, the Company had discretionary floorplan lines of credit for equipment inventory purchases totaling approximately $1.1 billion, which includes a $275.0 million Floorplan Payable Line with a group of banks led by Wells Fargo Bank, National Association ("Wells Fargo"), a $450.0 million credit facility with CNH Industrial Capital, a $200.0 million credit facility with Agricredit Acceptance LLC and the U.S. dollar equivalent of $128.4 million in credit facilities related to our foreign subsidiaries. Floorplan payables relating to these credit facilities totaled approximately $573.0 million of the total floorplan payable balance of $606.7 million outstanding as of April 30, 2015 and $594.1 million of the total floorplan payable balance of $627.2 million outstanding as of January 31, 2015; the remaining outstanding balances relate to equipment inventory financing from manufacturers and non-manufacturer lenders other than the aforementioned lines of credit. As of April 30, 2015, the U.S. floorplan payables carried various interest rates primarily ranging from 3.31% to 5.02%, and the foreign floorplan payables carried various interest rates primarily ranging from 1.81% to 12.00%. | |
Working Capital Line of Credit | |
As of April 30, 2015, the Company had a $87.5 million working capital line of credit under the credit facility with Wells Fargo. The Company had $18.7 million outstanding on its working capital line of credit as of April 30, 2015 and January 31, 2015. Amounts outstanding are recorded as long-term debt, within long-term liabilities on the consolidated balance sheets, as the Company does not have an obligation to repay amounts borrowed within one year. |
SENIOR_CONVERTIBLE_NOTES
SENIOR CONVERTIBLE NOTES (Senior Convertible Notes) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Senior Convertible Notes | ||||||||
SENIOR CONVERTIBLE NOTES | ||||||||
SENIOR CONVERTIBLE NOTES | SENIOR CONVERTIBLE NOTES | |||||||
The Company’s 3.75% Senior Convertible Notes issued on April 24, 2012 (“Convertible Notes”) consisted of the following: | ||||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands except conversion | ||||||||
rate and conversion price) | ||||||||
Principal value | $ | 150,000 | $ | 150,000 | ||||
Unamortized debt discount | (16,755 | ) | (17,650 | ) | ||||
Carrying value of senior convertible notes | $ | 133,245 | $ | 132,350 | ||||
Carrying value of equity component, net of deferred taxes | $ | 15,546 | $ | 15,546 | ||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 23.1626 | |||||||
Conversion price (per share of common stock) | $ | 43.17 | ||||||
The Company recognized interest expense associated with its Senior Convertible Notes as follows: | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cash Interest Expense | ||||||||
Coupon interest expense | $ | 1,406 | $ | 1,406 | ||||
Noncash Interest Expense | ||||||||
Amortization of debt discount | 894 | 835 | ||||||
Amortization of transaction costs | 136 | 133 | ||||||
$ | 2,436 | $ | 2,374 | |||||
As of April 30, 2015, the unamortized debt discount will be amortized over a remaining period of approximately 4 years. As of April 30, 2015 and January 31, 2015, the if-converted value of the Senior Convertible Notes did not exceed the principal balance. The effective interest rate of the liability component was equal to 7.0% for each of the statements of operations periods presented. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended | |||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS | |||||||||||||||||
The Company holds derivative instruments for the purpose of minimizing exposure to fluctuations in foreign currency exchange rates to which the Company is exposed in the normal course of its operations. | ||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||
To protect the value of the Company’s investments in its foreign operations against adverse changes in foreign currency exchange rates, the Company may, from time to time, hedge a portion of its net investment in one or more of its foreign subsidiaries. Gains and losses on derivative instruments that are designated and effective as a net investment hedge are included in other comprehensive income and only reclassified into earnings in the period during which the hedged net investment is sold or liquidated. Any hedge ineffectiveness is recognized in earnings immediately. | ||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||
On October 9, 2013, the Company entered into a forward-starting interest rate swap instrument which has a notional amount of $100.0 million dollars, an effective date of September 30, 2014 and a maturity date of September 30, 2018. The objective of the instrument is to, beginning on September 30, 2014, protect the Company from changes in benchmark interest rates to which the Company is exposed through certain of its variable interest rate credit facilities. The instrument provides for a fixed interest rate of 1.901% up to the maturity date. | ||||||||||||||||||
The Company may, from time to time, hedge foreign currency exchange rate risk arising from inventory purchases denominated in Canadian dollars through the use of foreign currency forward contracts. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows associated with the Canadian dollar purchasing is less than 12 months. | ||||||||||||||||||
The interest rate swap instrument and foreign currency contracts have been designated as cash flow hedging instruments and accordingly changes in the effective portion of the fair value of the instruments are recorded in other comprehensive income and only reclassified into earnings in the period(s) in which the related hedged item affects earnings or the anticipated underlying hedged transactions are no longer probable of occurring. Any hedge ineffectiveness is recognized in earnings immediately. | ||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments | ||||||||||||||||||
The Company uses foreign currency forward contracts to hedge the effects of fluctuations in exchange rates on outstanding intercompany loans. The Company does not formally designate and document such derivative instruments as hedging instruments; however, the instruments are an effective economic hedge of the underlying foreign currency exposure. Both the gain or loss on the derivative instrument and the offsetting gain or loss on the underlying intercompany loan are recognized in earnings immediately, thereby eliminating or reducing the impact of foreign currency exchange rate fluctuations on net income. | ||||||||||||||||||
The following table sets forth the notional value of the Company's outstanding derivative instruments. | ||||||||||||||||||
Notional Amount as of: | ||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Net investment hedge: | ||||||||||||||||||
Foreign currency contracts | $ | 7,691 | $ | 14,223 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | 100,000 | 100,000 | ||||||||||||||||
Foreign currency contracts | — | — | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency contracts | 28,578 | 30,030 | ||||||||||||||||
The following table sets forth the fair value of the Company’s outstanding derivative instruments. | ||||||||||||||||||
Fair Value as of: | Balance Sheet Location | |||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Liability Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Net investment hedges: | ||||||||||||||||||
Foreign currency contracts | $ | 88 | $ | 19 | Accrued expenses | |||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | $ | 2,622 | $ | 3,233 | Accrued expenses | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency contracts | 273 | 17 | Accrued expenses | |||||||||||||||
Total Liability Derivatives | $ | 2,983 | $ | 3,269 | ||||||||||||||
The following table sets forth the gains and losses recognized in other comprehensive income (loss) ("OCI") and income (loss) related to the Company’s derivative instruments for the three months ended April 30, 2015 and 2014, respectively. All amounts included in income (loss) in the table below from derivatives designated as hedging instruments relate to reclassifications from accumulated other comprehensive income. | ||||||||||||||||||
Three Months Ended April 30, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
OCI | Income (Loss) | OCI | Income (Loss) | Statements of Operations Classification | ||||||||||||||
(in thousands) | ||||||||||||||||||
Dervatives Designated as Hedging Instruments: | ||||||||||||||||||
Net investment hedges: | ||||||||||||||||||
Foreign currency contracts | $ | 111 | $ | — | $ | (1,245 | ) | $ | — | N/A | ||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | 181 | (430 | ) | 5 | — | Floorplan interest expense | ||||||||||||
Foreign currency contracts | — | (13 | ) | 53 | (14 | ) | Cost of revenue - equipment | |||||||||||
Dervatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Foreign currency contracts | — | 82 | — | (1,303 | ) | Interest income and other income (expense) | ||||||||||||
Total Derivatives | $ | 292 | $ | (361 | ) | $ | (1,187 | ) | $ | (1,317 | ) | |||||||
No components of the Company's net investment or cash flow hedging instruments were excluded from the assessment of hedge ineffectiveness. | ||||||||||||||||||
As of April 30, 2015, the Company had $2.6 million in pre-tax net unrealized losses associated with its interest rate swap cash flow hedging instrument recorded in accumulated other comprehensive income. The Company expects that $1.6 million of pre-tax unrealized losses associated with its interest rate swap will be reclassified into income over the next 12 months. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||
The liabilities which are measured at fair value on a recurring basis as of April 30, 2015 and January 31, 2015 are as follows: | ||||||||||||||||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Interest rate swap | $ | — | $ | 2,622 | $ | — | $ | 2,622 | $ | — | $ | 3,233 | $ | — | $ | 3,233 | ||||||||||||||||
Foreign currency contracts | — | 361 | — | 361 | — | 36 | — | 36 | ||||||||||||||||||||||||
Total Financial Liabilities | $ | — | $ | 2,983 | $ | — | $ | 2,983 | $ | — | $ | 3,269 | $ | — | $ | 3,269 | ||||||||||||||||
The valuation for the Company's foreign currency contracts and interest rate swap derivative instruments were valued using discounted cash flow analyses, an income approach, utilizing readily observable market data as inputs. | ||||||||||||||||||||||||||||||||
The Company also has financial instruments that are not recorded at fair value in its consolidated financial statements. The carrying amount of cash, receivables, payables, short-term debt and other current liabilities approximates fair value because of the short maturity and/or frequent repricing of those instruments, which are Level 2 fair value inputs. Based upon current borrowing rates with similar maturities, which are Level 2 fair value inputs, the carrying value of long-term debt approximates the fair value as of April 30, 2015 and January 31, 2015, respectively. The following table provides details on the Senior Convertible Notes as of April 30, 2015 and January 31, 2015. The difference between the face value and the carrying value of these notes is the result of the allocation between the debt and equity components. Fair value of the Senior Convertible Notes was estimated based on Level 2 fair value inputs. | ||||||||||||||||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | Face Value | Estimated Fair Value | Carrying Value | Face Value | |||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Senior convertible notes | $ | 117,219 | $ | 133,245 | $ | 150,000 | $ | 111,273 | $ | 132,350 | $ | 150,000 | ||||||||||||||||||||
SEGMENT_INFORMATION_AND_OPERAT
SEGMENT INFORMATION AND OPERATING RESULTS | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
SEGMENT INFORMATION AND OPERATING RESULTS | SEGMENT INFORMATION AND OPERATING RESULTS | |||||||
The Company has three reportable segments: Agriculture, Construction and International. During the three months ended April 30, 2015, the Company made changes to its internal financial reporting, primarily related to the elimination of transactions within a segment. Previously, the segment results were reported at gross amounts with eliminations reported separately to reconcile to consolidated financial results. During the three months ended April 30, 2015, the Company began reporting these eliminations within the segments to which they relate. The financial information as of January 31, 2015 and for the three months ended April 30, 2014 have been reclassified for comparability with the current year presentation. | ||||||||
Revenue between segments is immaterial. The Company retains various unallocated income/(expense) items and assets at the general corporate level, which the Company refers to as “Shared Resources” in the table below. Shared Resources assets primarily consist of cash, deferred tax assets and property and equipment. | ||||||||
Certain financial information for each of the Company’s business segments is set forth below. | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
Agriculture | $ | 239,855 | $ | 344,381 | ||||
Construction | 81,171 | 91,765 | ||||||
International | 32,170 | 29,317 | ||||||
Total | $ | 353,196 | $ | 465,463 | ||||
Income (Loss) Before Income Taxes | ||||||||
Agriculture | $ | (1,086 | ) | $ | 3,505 | |||
Construction | (3,565 | ) | (5,993 | ) | ||||
International | (4,371 | ) | (5,265 | ) | ||||
Segment income (loss) before income taxes | (9,022 | ) | (7,753 | ) | ||||
Shared Resources | 196 | (873 | ) | |||||
Loss Before Income Taxes | $ | (8,826 | ) | $ | (8,626 | ) | ||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
Agriculture | $ | 681,952 | $ | 734,894 | ||||
Construction | 368,407 | 393,573 | ||||||
International | 130,886 | 152,587 | ||||||
Segment assets | 1,181,245 | 1,281,054 | ||||||
Shared Resources | 116,475 | 68,693 | ||||||
Total | $ | 1,297,720 | $ | 1,349,747 | ||||
STORE_CLOSINGS_AND_REALIGNMENT
STORE CLOSINGS AND REALIGNMENT COST | 3 Months Ended | |||||||||
Apr. 30, 2015 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
STORE CLOSINGS AND REALIGNMENT COSTS | STORE CLOSINGS AND REALIGNMENT COSTS | |||||||||
To better align the Company's cost structure and re-balance staffing levels with the evolving needs of the business, in March 2015, the Company approved a realignment plan that reduced its headcount by approximately 14%, which included headcount reductions at stores in each of its operating segments and its Shared Resource Center, as well as from the closing of three Agriculture stores and one Construction store. The Company's remaining stores in each of the respective areas assumed the distribution rights for the CNH Industrial brand previously held by the closed stores. The Company estimates the total cost of these activities to be approximately $2.0 million, comprised of an accrual for the net present value of remaining lease obligations, employee severance costs, impairment of certain fixed assets and costs associated with relocation of assets from the closed stores. The Company recognized approximately $0.1 million in exists costs primarily in its International segment in its fourth quarter ended January 31, 2015, and recognized $1.6 million in the three months ended April 30, 2015. | ||||||||||
To better align its Construction business in certain markets, in April 2014, the Company reduced its Construction-related headcount by approximately 12% primarily through the closing of seven underperforming Construction stores, staff reductions at other dealerships and reductions in support staff at its Shared Resource Center. The Company also closed one Agriculture store. The Company's remaining stores in each of the respective areas assumed the majority of the distribution rights for the CNH Industrial brand previously held by the closed stores. The majority of the assets of the closed stores were redeployed to other store locations. Certain inventory items which are not sold by any of our remaining stores were sold at auction. The inventory markdown attributable to such items are included in the exit cost summary below. The Company incurred $3.2 million in exit costs in the three months ended April 30, 2014 and $3.8 million in exit costs during the year ended January 31, 2015. No additional amounts are expected to be incurred related to the closing of these stores, exclusive of any changes in lease termination accrual assumptions. | ||||||||||
The following summarizes the exit costs associated with the aforementioned store closings and realignment activities: | ||||||||||
Three Months Ended April 30, | ||||||||||
2015 | 2014 | Income Statement Classification | ||||||||
(in thousands) | ||||||||||
Construction Segment | ||||||||||
Lease termination costs | $ | 261 | $ | 1,518 | Impairment and Realignment Costs | |||||
Employee severance costs | 258 | 451 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | 90 | 152 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 54 | 165 | Impairment and Realignment Costs | |||||||
$ | 663 | $ | 2,286 | |||||||
Agriculture Segment | ||||||||||
Lease termination costs | $ | 251 | $ | 114 | Impairment and Realignment Costs | |||||
Employee severance costs | 304 | 71 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | — | 85 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 85 | 32 | Impairment and Realignment Costs | |||||||
Inventory cost adjustments | — | 404 | Equipment Cost of Sales | |||||||
$ | 640 | $ | 706 | |||||||
International | ||||||||||
Employee severance costs | $ | — | $ | — | Impairment and Realignment Costs | |||||
$ | — | $ | — | |||||||
Shared Resource Center | ||||||||||
Lease termination costs | $ | 49 | $ | — | Impairment and Realignment Costs | |||||
Employee severance costs | $ | 187 | $ | 213 | Impairment and Realignment Costs | |||||
Impairment of fixed assets, net of gains on asset disposition | 62 | — | Impairment and Realignment Costs | |||||||
$ | 298 | $ | 213 | |||||||
Total | ||||||||||
Lease termination costs | $ | 561 | $ | 1,632 | Impairment and Realignment Costs | |||||
Employee severance costs | 749 | 735 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | 152 | 237 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 139 | 197 | Impairment and Realignment Costs | |||||||
Inventory cost adjustments | — | 404 | Equipment Cost of Sales | |||||||
$ | 1,601 | $ | 3,205 | — | ||||||
In connection with its realignment plan initiated in the first quarter of fiscal 2016, the Company accrued for lease termination and employee severance costs during the quarter ended April 30, 2015, but exit costs related to impairment, asset relocation and other closing costs and inventory cost adjustments were not accrued but recognized as incurred. A reconciliation of the beginning and ending exit cost liability balance, which is included in accrued expenses in the consolidated balance sheets, follows: | ||||||||||
Amount | ||||||||||
(in thousands) | ||||||||||
Balance, January 31, 2015 | $ | 1,706 | ||||||||
Exit costs incurred and charged to expense | ||||||||||
Lease termination costs | 561 | |||||||||
Employee severance costs | 749 | |||||||||
Exit costs paid | ||||||||||
Lease termination costs | (138 | ) | ||||||||
Employee severance costs | (644 | ) | ||||||||
Balance, April 30, 2015 | $ | 2,234 | ||||||||
HELD_FOR_SALE
HELD FOR SALE | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
HELD FOR SALE | HELD FOR SALE | |||||||
The assets and liabilities which are held for sale are presented in the following table: | ||||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Assets Held for Sale | ||||||||
Receivables | $ | 79 | $ | 147 | ||||
Inventories | ||||||||
New equipment | 5,538 | 6,269 | ||||||
Used equipment | 3,448 | 3,973 | ||||||
Parts and attachments | 863 | 920 | ||||||
Work in process | 86 | 65 | ||||||
Total inventories | 9,935 | 11,227 | ||||||
Property and equipment | ||||||||
Machinery and equipment | 106 | 114 | ||||||
Vehicles | 154 | 155 | ||||||
Furniture and fixtures | 51 | 57 | ||||||
Land, buildings, and leasehold improvements | 4,621 | 3,612 | ||||||
Total property and equipment | 4,932 | 3,938 | ||||||
$ | 14,946 | $ | 15,312 | |||||
Liabilities Held for Sale | ||||||||
Accounts payable | $ | 68 | $ | 151 | ||||
Floorplan payable | 1,321 | 1,771 | ||||||
Customer deposits | 151 | 913 | ||||||
$ | 1,540 | $ | 2,835 | |||||
INCOME_TAXES_INCOME_TAXES
INCOME TAXES INCOME TAXES | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure | INCOME TAXES | |||||||
The Company incurs a provision for income taxes in jurisdictions in which it has taxable income. Generally the Company receives a benefit for income taxes in jurisdictions in which it has taxable losses unless it has recorded a valuation allowance for that jurisdiction. These losses are available to reduce future taxable income in these jurisdictions if earned within the allowable net operating loss carryforward period. The foreign jurisdictions in which the Company operates have net operating loss carryforward periods ranging from five to seven years, with certain jurisdictions having indefinite carryforward periods. | ||||||||
The components of loss before income taxes are as follows: | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(dollars in thousands) | ||||||||
U.S. | $ | (4,488 | ) | $ | (3,223 | ) | ||
Foreign | (4,338 | ) | (5,403 | ) | ||||
Total | $ | (8,826 | ) | $ | (8,626 | ) | ||
A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows: | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
U.S. statutory rate | (35.0 | )% | (35.0 | )% | ||||
Foreign statutory rates | 11.7 | % | 10.6 | % | ||||
State taxes on income net of federal tax benefit | (4.1 | )% | (4.3 | )% | ||||
Change in valuation allowance | 35.7 | % | 46.3 | % | ||||
Tax effect of Ukrainian hryvnia devaluation(a) | (28.0 | )% | (36.6 | )% | ||||
All other, net | (2.2 | )% | (1.1 | )% | ||||
(21.9 | )% | (20.1 | )% | |||||
(a) Represents the tax impact of differences in foreign currency losses recognized as the result of Ukrianian hryvnia devaluation between Ukrainian taxable income (loss) and financial reporting income (loss). |
BUSINESS_ACTIVITY_AND_SIGNIFIC1
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Basis of Presentation | Basis of Presentation | |||||||
The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The quarterly operating results for Titan Machinery Inc. (the “Company”) are subject to fluctuation due to varying weather patterns, which may impact the timing and amount of equipment purchases, rentals, and after-sales parts and service purchases by the Company’s Agriculture, Construction and International customers. Therefore, operating results for the three-month period ended April 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2016. The information contained in the balance sheet as of January 31, 2015 was derived from the audited financial statements for the Company for the year then ended. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended January 31, 2015 as filed with the SEC. | ||||||||
Accounting Changes and Error Corrections | The amounts included in the accompanying unaudited Consolidated Statements of Operations for the three-month period ended April 30, 2014 have been updated to reflect a correction in the Company's VAT asset classification as of April 30, 2014. This correction has been previously disclosed in the Company's Form 10-Q for the period ended July 31, 2014 and the Company's Form 10-K for the year ended January 31, 2015 and resulted from the Company's conclusion, reached subsequent to the issuance of the Company’s interim consolidated financial statements as of and for the period ended April 30, 2014, that the treatment of its prepaid value added tax (“VAT”) asset in Ukraine as a non-monetary asset was incorrect and that the asset should be classified and accounted for as a monetary asset and therefore should be remeasured from Ukrainian hryvnia (“UAH”) to U.S. Dollars (“USD”) using the current rate as opposed to the historical rate used for non-monetary assets. In February of 2014, the National Bank of Ukraine terminated the currency peg of the UAH to the USD; subsequent to the decoupling and as a result of the economic and political conditions present in the country, the UAH experienced significant devaluation. The incorrect classification of the VAT asset as a non-monetary asset coupled with the significant devaluation of the UAH resulted in an overstatement of the Company’s assets (Prepaid expenses and other) as of April 30, 2014 and an understatement of the Company’s loss (Interest income and other income (expense)) for the three months ended April 30, 2014. This correction increased the Company’s Net Loss Attributable to Titan Machinery Inc. by $2.3 million (from the previously reported $4.2 million to $6.5 million) and increased the diluted loss per share by $0.11 (from the previously reported $0.20 loss per share to a $0.31 loss per share). | |||||||
Nature of Business | Nature of Business | |||||||
The Company is engaged in the retail sale, service and rental of agricultural and construction machinery through its stores in the United States and Europe. The Company’s North American stores are located in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Romania, Serbia and Ukraine. | ||||||||
Estimates | Estimates | |||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, particularly related to realization of inventory, initial valuation and impairment analyses of intangible assets, collectability of receivables, and income taxes. | ||||||||
Principles of Consolidation | Principles of Consolidation | |||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. | ||||||||
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (“EPS”) | |||||||
The Company uses the two-class method to calculate basic and diluted EPS. Unvested restricted stock awards are considered participating securities because they entitle holders to non-forfeitable rights to dividends during the vesting term. Under the two-class method, basic EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average number of shares of common stock outstanding during the year. | ||||||||
Diluted EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average shares of common stock outstanding after adjusting for potential dilution related to the conversion of all dilutive securities into common stock. All potentially dilutive securities were included in the computation of diluted EPS. There were approximately 211,000 and 375,000 stock options outstanding that were excluded from the computation of diluted EPS for the three months ended April 30, 2015 and 2014, respectively, because they were anti-dilutive. None of the approximately 3,474,000 shares underlying the Company’s senior convertible notes were included in the computation of diluted EPS because the Company’s average stock price was less than the conversion price of $43.17. | ||||||||
The following table sets forth the calculation of the denominator for basic and diluted EPS: | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share data) | ||||||||
Basic Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Plus: Incremental Shares From Assumed Exercise of Stock Options | — | — | ||||||
Diluted Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Earnings (Loss) per Share - Basic | $ | (0.29 | ) | $ | (0.31 | ) | ||
Earnings (Loss) per Share - Diluted | $ | (0.29 | ) | $ | (0.31 | ) | ||
New Accounting Pronouncements | Recent Accounting Guidance | |||||||
In May 2014, the FASB issued authoritative guidance on accounting for revenue recognition, codified in ASC 606, Revenue from Contracts with Customers. This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. When adopted, the Company will employ one of the two retrospective application methods. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. | ||||||||
In August 2014, the FASB issued authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern. The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is not alleviated, and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The Company will adopt this guidance for the year-ended January 31, 2017, and it will apply to each interim and annual period thereafter. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. | ||||||||
In April 2015, the FASB amended authoritative guidance on debt issuance costs, codified in ASC 835-30, Imputation of Interest. The amended guidance changes the balance sheet presentation of debt issuance costs to be a direct deduction from the related debt liability rather than an asset. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. |
BUSINESS_ACTIVITY_AND_SIGNIFIC2
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of calculation of basic and diluted EPS | The following table sets forth the calculation of the denominator for basic and diluted EPS: | |||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands, except per share data) | ||||||||
Basic Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Plus: Incremental Shares From Assumed Exercise of Stock Options | — | — | ||||||
Diluted Weighted-Average Common Shares Outstanding | 21,044 | 20,951 | ||||||
Earnings (Loss) per Share - Basic | $ | (0.29 | ) | $ | (0.31 | ) | ||
Earnings (Loss) per Share - Diluted | $ | (0.29 | ) | $ | (0.31 | ) | ||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventories | ||||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
New equipment | $ | 451,587 | $ | 442,984 | ||||
Used equipment | 314,818 | 318,308 | ||||||
Parts and attachments | 100,944 | 107,893 | ||||||
Work in process | 12,711 | 10,255 | ||||||
$ | 880,060 | $ | 879,440 | |||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of property and equipment | ||||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Rental fleet equipment | $ | 137,616 | $ | 148,198 | ||||
Machinery and equipment | 23,858 | 24,071 | ||||||
Vehicles | 42,436 | 43,435 | ||||||
Furniture and fixtures | 39,697 | 39,421 | ||||||
Land, buildings, and leasehold improvements | 57,074 | 57,630 | ||||||
300,681 | 312,755 | |||||||
Less accumulated depreciation | (105,893 | ) | (104,075 | ) | ||||
$ | 194,788 | $ | 208,680 | |||||
SENIOR_CONVERTIBLE_NOTES_Table
SENIOR CONVERTIBLE NOTES (Tables) (Senior Convertible Notes) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Senior Convertible Notes | ||||||||
SENIOR CONVERTIBLE NOTES | ||||||||
Schedule of 3.75% Senior Convertible Notes | The Company’s 3.75% Senior Convertible Notes issued on April 24, 2012 (“Convertible Notes”) consisted of the following: | |||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands except conversion | ||||||||
rate and conversion price) | ||||||||
Principal value | $ | 150,000 | $ | 150,000 | ||||
Unamortized debt discount | (16,755 | ) | (17,650 | ) | ||||
Carrying value of senior convertible notes | $ | 133,245 | $ | 132,350 | ||||
Carrying value of equity component, net of deferred taxes | $ | 15,546 | $ | 15,546 | ||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 23.1626 | |||||||
Conversion price (per share of common stock) | $ | 43.17 | ||||||
Senior Convertible Notes Interest Expense | The Company recognized interest expense associated with its Senior Convertible Notes as follows: | |||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cash Interest Expense | ||||||||
Coupon interest expense | $ | 1,406 | $ | 1,406 | ||||
Noncash Interest Expense | ||||||||
Amortization of debt discount | 894 | 835 | ||||||
Amortization of transaction costs | 136 | 133 | ||||||
$ | 2,436 | $ | 2,374 | |||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Schedule of notional amounts of outstanding derivative positions | The following table sets forth the notional value of the Company's outstanding derivative instruments. | |||||||||||||||||
Notional Amount as of: | ||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Net investment hedge: | ||||||||||||||||||
Foreign currency contracts | $ | 7,691 | $ | 14,223 | ||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | 100,000 | 100,000 | ||||||||||||||||
Foreign currency contracts | — | — | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency contracts | 28,578 | 30,030 | ||||||||||||||||
Schedule of fair value of outstanding derivative instruments | The following table sets forth the fair value of the Company’s outstanding derivative instruments. | |||||||||||||||||
Fair Value as of: | Balance Sheet Location | |||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Liability Derivatives: | ||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Net investment hedges: | ||||||||||||||||||
Foreign currency contracts | $ | 88 | $ | 19 | Accrued expenses | |||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | $ | 2,622 | $ | 3,233 | Accrued expenses | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency contracts | 273 | 17 | Accrued expenses | |||||||||||||||
Total Liability Derivatives | $ | 2,983 | $ | 3,269 | ||||||||||||||
Schedule of gains and losses recognized on derivative instruments | The following table sets forth the gains and losses recognized in other comprehensive income (loss) ("OCI") and income (loss) related to the Company’s derivative instruments for the three months ended April 30, 2015 and 2014, respectively. All amounts included in income (loss) in the table below from derivatives designated as hedging instruments relate to reclassifications from accumulated other comprehensive income. | |||||||||||||||||
Three Months Ended April 30, | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
OCI | Income (Loss) | OCI | Income (Loss) | Statements of Operations Classification | ||||||||||||||
(in thousands) | ||||||||||||||||||
Dervatives Designated as Hedging Instruments: | ||||||||||||||||||
Net investment hedges: | ||||||||||||||||||
Foreign currency contracts | $ | 111 | $ | — | $ | (1,245 | ) | $ | — | N/A | ||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate swap | 181 | (430 | ) | 5 | — | Floorplan interest expense | ||||||||||||
Foreign currency contracts | — | (13 | ) | 53 | (14 | ) | Cost of revenue - equipment | |||||||||||
Dervatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Foreign currency contracts | — | 82 | — | (1,303 | ) | Interest income and other income (expense) | ||||||||||||
Total Derivatives | $ | 292 | $ | (361 | ) | $ | (1,187 | ) | $ | (1,317 | ) | |||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | The liabilities which are measured at fair value on a recurring basis as of April 30, 2015 and January 31, 2015 are as follows: | |||||||||||||||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Interest rate swap | $ | — | $ | 2,622 | $ | — | $ | 2,622 | $ | — | $ | 3,233 | $ | — | $ | 3,233 | ||||||||||||||||
Foreign currency contracts | — | 361 | — | 361 | — | 36 | — | 36 | ||||||||||||||||||||||||
Total Financial Liabilities | $ | — | $ | 2,983 | $ | — | $ | 2,983 | $ | — | $ | 3,269 | $ | — | $ | 3,269 | ||||||||||||||||
Fair Value of Senior Convertible Notes | The following table provides details on the Senior Convertible Notes as of April 30, 2015 and January 31, 2015. The difference between the face value and the carrying value of these notes is the result of the allocation between the debt and equity components. Fair value of the Senior Convertible Notes was estimated based on Level 2 fair value inputs. | |||||||||||||||||||||||||||||||
April 30, 2015 | January 31, 2015 | |||||||||||||||||||||||||||||||
Estimated Fair Value | Carrying Value | Face Value | Estimated Fair Value | Carrying Value | Face Value | |||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Senior convertible notes | $ | 117,219 | $ | 133,245 | $ | 150,000 | $ | 111,273 | $ | 132,350 | $ | 150,000 | ||||||||||||||||||||
SEGMENT_INFORMATION_AND_OPERAT1
SEGMENT INFORMATION AND OPERATING RESULTS (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of financial information of business segments | Certain financial information for each of the Company’s business segments is set forth below. | |||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
Agriculture | $ | 239,855 | $ | 344,381 | ||||
Construction | 81,171 | 91,765 | ||||||
International | 32,170 | 29,317 | ||||||
Total | $ | 353,196 | $ | 465,463 | ||||
Income (Loss) Before Income Taxes | ||||||||
Agriculture | $ | (1,086 | ) | $ | 3,505 | |||
Construction | (3,565 | ) | (5,993 | ) | ||||
International | (4,371 | ) | (5,265 | ) | ||||
Segment income (loss) before income taxes | (9,022 | ) | (7,753 | ) | ||||
Shared Resources | 196 | (873 | ) | |||||
Loss Before Income Taxes | $ | (8,826 | ) | $ | (8,626 | ) | ||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
Agriculture | $ | 681,952 | $ | 734,894 | ||||
Construction | 368,407 | 393,573 | ||||||
International | 130,886 | 152,587 | ||||||
Segment assets | 1,181,245 | 1,281,054 | ||||||
Shared Resources | 116,475 | 68,693 | ||||||
Total | $ | 1,297,720 | $ | 1,349,747 | ||||
STORE_CLOSINGS_AND_REALIGNMENT1
STORE CLOSINGS AND REALIGNMENT COST (Tables) | 3 Months Ended | |||||||||
Apr. 30, 2015 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Schedule of Restructuring Costs by Type of Cost | The following summarizes the exit costs associated with the aforementioned store closings and realignment activities: | |||||||||
Three Months Ended April 30, | ||||||||||
2015 | 2014 | Income Statement Classification | ||||||||
(in thousands) | ||||||||||
Construction Segment | ||||||||||
Lease termination costs | $ | 261 | $ | 1,518 | Impairment and Realignment Costs | |||||
Employee severance costs | 258 | 451 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | 90 | 152 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 54 | 165 | Impairment and Realignment Costs | |||||||
$ | 663 | $ | 2,286 | |||||||
Agriculture Segment | ||||||||||
Lease termination costs | $ | 251 | $ | 114 | Impairment and Realignment Costs | |||||
Employee severance costs | 304 | 71 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | — | 85 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 85 | 32 | Impairment and Realignment Costs | |||||||
Inventory cost adjustments | — | 404 | Equipment Cost of Sales | |||||||
$ | 640 | $ | 706 | |||||||
International | ||||||||||
Employee severance costs | $ | — | $ | — | Impairment and Realignment Costs | |||||
$ | — | $ | — | |||||||
Shared Resource Center | ||||||||||
Lease termination costs | $ | 49 | $ | — | Impairment and Realignment Costs | |||||
Employee severance costs | $ | 187 | $ | 213 | Impairment and Realignment Costs | |||||
Impairment of fixed assets, net of gains on asset disposition | 62 | — | Impairment and Realignment Costs | |||||||
$ | 298 | $ | 213 | |||||||
Total | ||||||||||
Lease termination costs | $ | 561 | $ | 1,632 | Impairment and Realignment Costs | |||||
Employee severance costs | 749 | 735 | Impairment and Realignment Costs | |||||||
Impairment of fixed assets, net of gains on asset disposition | 152 | 237 | Impairment and Realignment Costs | |||||||
Asset relocation and other closing costs | 139 | 197 | Impairment and Realignment Costs | |||||||
Inventory cost adjustments | — | 404 | Equipment Cost of Sales | |||||||
$ | 1,601 | $ | 3,205 | — | ||||||
Restructuring Reserve Rollforward | A reconciliation of the beginning and ending exit cost liability balance, which is included in accrued expenses in the consolidated balance sheets, follows: | |||||||||
Amount | ||||||||||
(in thousands) | ||||||||||
Balance, January 31, 2015 | $ | 1,706 | ||||||||
Exit costs incurred and charged to expense | ||||||||||
Lease termination costs | 561 | |||||||||
Employee severance costs | 749 | |||||||||
Exit costs paid | ||||||||||
Lease termination costs | (138 | ) | ||||||||
Employee severance costs | (644 | ) | ||||||||
Balance, April 30, 2015 | $ | 2,234 | ||||||||
HELD_FOR_SALE_Tables
HELD FOR SALE (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of Disposal Groups | The assets and liabilities which are held for sale are presented in the following table: | |||||||
April 30, 2015 | January 31, 2015 | |||||||
(in thousands) | ||||||||
Assets Held for Sale | ||||||||
Receivables | $ | 79 | $ | 147 | ||||
Inventories | ||||||||
New equipment | 5,538 | 6,269 | ||||||
Used equipment | 3,448 | 3,973 | ||||||
Parts and attachments | 863 | 920 | ||||||
Work in process | 86 | 65 | ||||||
Total inventories | 9,935 | 11,227 | ||||||
Property and equipment | ||||||||
Machinery and equipment | 106 | 114 | ||||||
Vehicles | 154 | 155 | ||||||
Furniture and fixtures | 51 | 57 | ||||||
Land, buildings, and leasehold improvements | 4,621 | 3,612 | ||||||
Total property and equipment | 4,932 | 3,938 | ||||||
$ | 14,946 | $ | 15,312 | |||||
Liabilities Held for Sale | ||||||||
Accounts payable | $ | 68 | $ | 151 | ||||
Floorplan payable | 1,321 | 1,771 | ||||||
Customer deposits | 151 | 913 | ||||||
$ | 1,540 | $ | 2,835 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Income Before Income Tax | ||||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
(dollars in thousands) | ||||||||
U.S. | $ | (4,488 | ) | $ | (3,223 | ) | ||
Foreign | (4,338 | ) | (5,403 | ) | ||||
Total | $ | (8,826 | ) | $ | (8,626 | ) | ||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows: | |||||||
Three Months Ended April 30, | ||||||||
2015 | 2014 | |||||||
U.S. statutory rate | (35.0 | )% | (35.0 | )% | ||||
Foreign statutory rates | 11.7 | % | 10.6 | % | ||||
State taxes on income net of federal tax benefit | (4.1 | )% | (4.3 | )% | ||||
Change in valuation allowance | 35.7 | % | 46.3 | % | ||||
Tax effect of Ukrainian hryvnia devaluation(a) | (28.0 | )% | (36.6 | )% | ||||
All other, net | (2.2 | )% | (1.1 | )% | ||||
(21.9 | )% | (20.1 | )% | |||||
(a) Represents the tax impact of differences in foreign currency losses recognized as the result of Ukrianian hryvnia devaluation between Ukrainian taxable income (loss) and financial reporting income (loss). |
BUSINESS_ACTIVITY_AND_SIGNIFIC3
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES, VAT Correction (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Net Income (Loss) Attributable to Titan Machinery Inc. | ($6,304) | ($6,549) |
Earnings (Loss) per share - diluted (in dollars per share) | ($0.29) | ($0.31) |
Reclassification of VAT Asset and Devaluation of UAH | Adjustment | ||
Net Income (Loss) Attributable to Titan Machinery Inc. | -2,300 | |
Earnings (Loss) per share - diluted (in dollars per share) | ($0.11) | |
Reclassification of VAT Asset and Devaluation of UAH | Previously Reported | ||
Net Income (Loss) Attributable to Titan Machinery Inc. | ($4,200) | |
Earnings (Loss) per share - diluted (in dollars per share) | ($0.20) |
BUSINESS_ACTIVITY_AND_SIGNIFIC4
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Denominator | ||
Basic Weighted-Average Common Shares Outstanding | 21,044 | 20,951 |
Plus: Incremental Shares From Assumed Exercise of Stock Options | 0 | 0 |
Diluted Weighted-Average Common Shares Outstanding | 21,044 | 20,951 |
Earnings (Loss) per Share - Basic, in dollars per share | ($0.29) | ($0.31) |
Earnings (Loss) per Share - Diluted, in dollars per share | ($0.29) | ($0.31) |
Employee Stock Option | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of diluted EPS (in shares) | 211 | 375 |
Convertible Notes | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of diluted EPS (in shares) | 3,474 | |
Conversion price of shares underlying convertible notes (in dollars per share) | $43.17 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
New equipment | $451,587 | $442,984 |
Used equipment | 314,818 | 318,308 |
Parts and attachments | 100,944 | 107,893 |
Work in process | 12,711 | 10,255 |
Inventories | $880,060 | $879,440 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $300,681 | $312,755 |
Less accumulated depreciation | -105,893 | -104,075 |
Property and equipment, net | 194,788 | 208,680 |
Rental fleet equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 137,616 | 148,198 |
Machinery and equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 23,858 | 24,071 |
Vehicles | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 42,436 | 43,435 |
Furniture and fixtures | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 39,697 | 39,421 |
Land, buildings, and leasehold improvements | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $57,074 | $57,630 |
LINES_OF_CREDIT_FLOORPLAN_PAYA1
LINES OF CREDIT / FLOORPLAN PAYABLE (Details) (USD $) | 3 Months Ended | |
Apr. 30, 2015 | Jan. 31, 2015 | |
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Floorplan payable | 606,673,000 | $627,249,000 |
Floorplan Lines of Credit | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 1,100,000,000 | |
Floorplan payable | 573,000,000 | 594,100,000 |
Floorplan Lines of Credit | U.S. | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Interest rate, Minimum (as a percent) | 3.31% | |
Interest rate, Maximum (as a percent) | 5.02% | |
Floorplan Lines of Credit | Foreign | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 128,400,000 | |
Interest rate, Minimum (as a percent) | 1.81% | |
Interest rate, Maximum (as a percent) | 12.00% | |
Floorplan Lines of Credit | Group of banks led by Wells Fargo Bank | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 275,000,000 | |
Floorplan Lines of Credit | CNH Capital America LLC | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 450,000,000 | |
Floorplan Lines of Credit | Agricredit Acceptance LLC | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 200,000,000 | |
Working Capital Line of Credit | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Amount outstanding | 18,700,000 | 18,700,000 |
Working Capital Line of Credit | Group of banks led by Wells Fargo Bank | ||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||
Maximum borrowing capacity | 87,500,000 |
SENIOR_CONVERTIBLE_NOTES_Detai
SENIOR CONVERTIBLE NOTES (Details) (Convertible Notes) | Apr. 30, 2015 |
Convertible Notes | |
SENIOR CONVERTIBLE NOTES | |
Interest rate (as a percent) | 3.75% |
SENIOR_CONVERTIBLE_NOTES_Detai1
SENIOR CONVERTIBLE NOTES (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 |
Convertible notes | |||
Principal value | $150,000 | $150,000 | |
Other interest expense | 3,827 | 3,441 | |
Convertible Notes | |||
Convertible notes | |||
Principal value | 150,000 | 150,000 | |
Unamortized debt discount | -16,755 | -17,650 | |
Carrying value of senior convertible notes | 133,245 | 132,350 | |
Carrying value of equity component, net of deferred taxes | 15,546 | 15,546 | |
Conversion rate | 0.0231626 | ||
Conversion price (per share of common stock) | $43.17 | ||
Other interest expense | 1,406 | 1,406 | |
Amortization of debt discount | 894 | 835 | |
Amortization of transaction costs | 136 | 133 | |
Interest Expense | $2,436 | $2,374 | |
Remaining period over which unamortized debt discount will be amortized | 4 years 0 months | ||
Effective interest rate (as a percent) | 7.00% | 7.00% |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details 1) (Forward-starting contract, USD $) | Oct. 09, 2013 | Apr. 30, 2015 | Jan. 31, 2015 |
Interest Rate Swap | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Fixed interest rate (as a percent) | 1.90% | ||
Notional amount outstanding | $100,000,000 | ||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | 100,000,000 | 100,000,000 | |
Foreign currency contracts | Designated as Hedging Instrument | Net Investment Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | 7,691,000 | 14,223,000 | |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | 0 | 0 | |
Foreign currency contracts | Not designated as hedging instruments | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | $28,578,000 | $30,030,000 |
DERIVATIVE_INSTRUMENTS_DERIVAT
DERIVATIVE INSTRUMENTS DERIVATIVES INSTRUMENTS (Details 2) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | $2,983 | $3,269 |
Foreign currency contracts | Not designated as hedging instruments | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | 273 | 17 |
Net Investment Hedges | Foreign currency contracts | Designated as Hedging Instrument | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | 88 | 19 |
Cash Flow Hedges | Interest Rate Swap | Designated as Hedging Instrument | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | $2,622 | $3,233 |
DERIVATIVE_INSTRUMENTS_DERIVAT1
DERIVATIVE INSTRUMENTS DERIVATE INSTRUMENTS (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Foreign currency contracts | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $292 | ($1,187) |
Amount of Gain (Loss) Recognized in Income | -361 | -1,317 |
Foreign currency contracts | Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 111 | -1,245 |
Amount of Gain (Loss) Recognized in Income | 0 | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 0 | 53 |
Amount of Gain (Loss) Recognized in Income | -13 | -14 |
Foreign currency contracts | Not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 0 | 0 |
Amount of Gain (Loss) Recognized in Income | 82 | -1,303 |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 181 | 5 |
Amount of Gain (Loss) Recognized in Income | ($430) | $0 |
DERIVATIVE_INSTRUMENTS_DERIVAT2
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS NARRATIVE (Details) (Cash Flow Hedges, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2015 |
Interest Rate Swap | |
Derivative | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Before Tax | ($2.60) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | -1.6 |
Foreign currency contracts | |
Derivative | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Before Tax | 0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $0 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | ($2,983) | ($3,269) |
Principal value | 150,000 | 150,000 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Convertible Notes | 117,219 | 111,273 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Convertible Notes | 133,245 | 132,350 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | -2,622 | -3,233 |
Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | -361 | -36 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | -2,983 | -3,269 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | -2,622 | -3,233 |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | -361 | -36 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | $0 | $0 |
SEGMENT_INFORMATION_AND_OPERAT2
SEGMENT INFORMATION AND OPERATING RESULTS (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Jan. 31, 2015 |
segment | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Revenue | $353,196 | $465,463 | |
Income (Loss) Before Income Taxes | -8,826 | -8,626 | |
Total Assets | 1,297,720 | 1,349,747 | |
Shared Resources | |||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Income (Loss) Before Income Taxes | 196 | -873 | |
Total Assets | 116,475 | 68,693 | |
Operating Segments | |||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Income (Loss) Before Income Taxes | -9,022 | -7,753 | |
Total Assets | 1,181,245 | 1,281,054 | |
Operating Segments | Agriculture | |||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Revenue | 239,855 | 344,381 | |
Income (Loss) Before Income Taxes | -1,086 | 3,505 | |
Total Assets | 681,952 | 734,894 | |
Operating Segments | Construction | |||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Revenue | 81,171 | 91,765 | |
Income (Loss) Before Income Taxes | -3,565 | -5,993 | |
Total Assets | 368,407 | 393,573 | |
Operating Segments | International | |||
SEGMENT INFORMATION AND OPERATING RESULTS | |||
Revenue | 32,170 | 29,317 | |
Income (Loss) Before Income Taxes | -4,371 | -5,265 | |
Total Assets | $130,886 | $152,587 |
STORE_CLOSINGS_AND_REALIGNMENT2
STORE CLOSINGS AND REALIGNMENT COST (Details) (USD $) | 3 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | Mar. 05, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | |
Realignment Costs | |||||
Amount of Realignment Cost Incurred | $1,601,000 | $3,205,000 | |||
Construction | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 663,000 | 2,286,000 | |||
Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 640,000 | 706,000 | |||
International | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 0 | 0 | |||
Shared Resource Center | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 298,000 | 213,000 | |||
Lease termination costs | Realignment Cost | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 561,000 | 1,632,000 | |||
Lease termination costs | Realignment Cost | Construction | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 261,000 | 1,518,000 | |||
Lease termination costs | Realignment Cost | Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 251,000 | 114,000 | |||
Lease termination costs | Realignment Cost | Shared Resource Center | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 49,000 | 0 | |||
Employee severance costs | Realignment Cost | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 749,000 | 735,000 | |||
Employee severance costs | Realignment Cost | Construction | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 258,000 | 451,000 | |||
Employee severance costs | Realignment Cost | Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 304,000 | 71,000 | |||
Employee severance costs | Realignment Cost | International | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 0 | 0 | |||
Employee severance costs | Realignment Cost | Shared Resource Center | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 187,000 | 213,000 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 152,000 | 237,000 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Construction | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 90,000 | 152,000 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 0 | 85,000 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Shared Resource Center | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 62,000 | 0 | |||
Asset relocation and other closing costs | Realignment Cost | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 139,000 | 197,000 | |||
Asset relocation and other closing costs | Realignment Cost | Construction | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 54,000 | 165,000 | |||
Asset relocation and other closing costs | Realignment Cost | Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 85,000 | 32,000 | |||
Inventory cost adjustments | Equipment Cost of Sales | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 0 | 404,000 | |||
Inventory cost adjustments | Equipment Cost of Sales | Agriculture | |||||
Realignment Costs | |||||
Amount of Realignment Cost Incurred | 0 | 404,000 | |||
Realignment Announced March 2015 | |||||
Realignment Costs | |||||
Reduction of Construction-related headcount, percent | 14.00% | ||||
Restructuring and Related Cost, Expected Cost | 2,000,000 | ||||
Amount of Realignment Cost Incurred | 1,600,000 | 100,000 | |||
Realignment Announced March 2015 | Construction | |||||
Realignment Costs | |||||
Number of stores closed (in ones) | 1 | ||||
Realignment Announced March 2015 | Agriculture | |||||
Realignment Costs | |||||
Number of stores closed (in ones) | 3 | ||||
Realignment Announced April 2104 | |||||
Realignment Costs | |||||
Reduction of Construction-related headcount, percent | 12.00% | ||||
Amount of Realignment Cost Incurred | $3,200,000 | $3,800,000 | |||
Realignment Announced April 2104 | Construction | |||||
Realignment Costs | |||||
Number of stores closed (in ones) | 7 | ||||
Realignment Announced April 2104 | Agriculture | |||||
Realignment Costs | |||||
Number of stores closed (in ones) | 1 |
STORE_CLOSINGS_AND_REALIGNMENT3
STORE CLOSINGS AND REALIGNMENT COST (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Jan. 31, 2015 |
Realignment Reserve [Roll Forward] | ||
Balance, January 31, 2015 | $1,706 | |
Balance, April 30, 2015 | 2,234 | 1,706 |
Lease termination costs | ||
Realignment Reserve [Roll Forward] | ||
Exit costs incurred and charged to expense | 561 | |
Exit costs paid | -138 | |
Employee severance costs | ||
Realignment Reserve [Roll Forward] | ||
Exit costs incurred and charged to expense | 749 | |
Exit costs paid | ($644) |
HELD_FOR_SALE_Details
HELD FOR SALE (Details) (USD $) | Apr. 30, 2015 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Property and equipment: | ||
Assets held for sale | $14,946 | $15,312 |
Liabilities Held for Sale [Abstract] | ||
Liabilities held for sale | 1,540 | 2,835 |
Held-for-sale | ||
Assets Held for Sale [Abstract] | ||
Receivables | 79 | 147 |
Inventories: | ||
New equipment | 5,538 | 6,269 |
Used equipment | 3,448 | 3,973 |
Parts and attachments | 863 | 920 |
Work in process | 86 | 65 |
Total inventories | 9,935 | 11,227 |
Property and equipment: | ||
Machinery and equipment | 106 | 114 |
Vehicles | 154 | 155 |
Furniture and fixtures | 51 | 57 |
Land, buildings, and leasehold improvements | 4,621 | 3,612 |
Total property and equipment | 4,932 | 3,938 |
Assets held for sale | 14,946 | 15,312 |
Liabilities Held for Sale [Abstract] | ||
Accounts payable | 68 | 151 |
Floorplan payable | 1,321 | 1,771 |
Customer deposits | 151 | 913 |
Liabilities held for sale | $1,540 | $2,835 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
U.S. | ($4,488) | ($3,223) |
Foreign | -4,338 | -5,403 |
Income (Loss) Before Income Taxes | ($8,826) | ($8,626) |
Effective Income Tax Rate Reconciliation, Percent | -21.90% | -20.10% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | -35.00% | -35.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 11.70% | 10.60% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | -4.10% | -4.30% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 35.70% | 46.30% |
Effective Income Tax Rate Reconciliation, Currency Devaluation | -28.00% | -36.60% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | -2.20% | -1.10% |
Minimum | ||
Operating Loss Carryforward Period | 5 years | |
Maximum | ||
Operating Loss Carryforward Period | 7 years |