Document and Entity Information
Document and Entity Information | 9 Months Ended |
Oct. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | Titan Machinery Inc. |
Entity Central Index Key | 0001409171 |
Document Type | 10-Q |
Document Period End Date | Oct. 31, 2019 |
Amendment Flag | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Current Fiscal Year End Date | --01-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 22,348,499 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Current Assets | ||
Cash | $ 52,420 | $ 56,745 |
Receivables, net of allowance for doubtful accounts | 88,907 | 77,500 |
Inventories | 624,215 | 491,091 |
Prepaid expenses and other | 7,857 | 15,556 |
Total current assets | 773,399 | 640,892 |
Noncurrent Assets | ||
Intangible assets, net of accumulated amortization | 9,059 | 7,247 |
Property and equipment, net of accumulated depreciation | 148,090 | 138,950 |
Operating Lease, Right-of-Use Asset | 92,124 | |
Deferred Tax Assets, Net, Noncurrent | 3,398 | 3,010 |
Goodwill | 2,291 | 1,161 |
Other | 1,163 | 1,178 |
Total noncurrent assets | 256,125 | 151,546 |
Total Assets | 1,029,524 | 792,438 |
Current Liabilities | ||
Accounts payable | 24,439 | 16,607 |
Floorplan payable | 445,726 | 273,756 |
Convertible Debt, Current | 0 | 45,249 |
Current maturities of long-term debt | 13,280 | 2,067 |
Operating Lease, Liability, Current | 12,002 | 0 |
Deferred revenue | 12,878 | 46,409 |
Accrued expenses and other | 39,392 | 36,364 |
Total current liabilities | 547,717 | 420,452 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 35,754 | 20,676 |
Operating Lease, Liability | 90,063 | |
Deferred income taxes | 5,586 | 4,955 |
Other long-term liabilities | 8,125 | 11,044 |
Total long-term liabilities | 139,528 | 36,675 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, par value $.00001 per share, 45,000 shares authorized; 22,354 shares issued and outstanding at July 31, 2019; 22,218 shares issued and outstanding at January 31, 2019 | 0 | 0 |
Additional paid-in-capital | 249,984 | 248,423 |
Retained earnings | 97,044 | 89,228 |
Accumulated other comprehensive loss | (4,749) | (2,340) |
Total stockholders' equity | 342,279 | 335,311 |
Total Liabilities and Stockholders' Equity | $ 1,029,524 | $ 792,438 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 31, 2019 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value, in dollars per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 22,352,000 | 22,218,000 |
Common stock, shares outstanding | 22,352,000 | 22,218,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Revenue | ||||
Equipment | $ 245,986 | $ 253,793 | $ 654,376 | $ 625,188 |
Parts | 70,788 | 64,609 | 181,928 | 166,923 |
Service | 27,553 | 24,808 | 77,215 | 68,013 |
Rental and Other | 16,609 | 17,703 | 40,688 | 41,734 |
Total Revenue | 360,936 | 360,913 | 954,207 | 901,858 |
Cost of Revenue | ||||
Equipment | 219,484 | 225,520 | 583,345 | 555,923 |
Parts | 49,834 | 45,666 | 128,380 | 118,254 |
Service | 8,950 | 7,756 | 25,170 | 21,918 |
Rental and other | 10,894 | 12,429 | 27,612 | 29,762 |
Total Cost of Revenue | 289,162 | 291,371 | 764,507 | 725,857 |
Gross Profit | 71,774 | 69,542 | 189,700 | 176,001 |
Operating Expenses | 58,184 | 53,306 | 165,594 | 147,665 |
Other Asset Impairment Charges | 51 | 304 | 186 | 459 |
Restructuring Costs | 0 | (151) | 0 | 414 |
Income from Operations | 13,539 | 16,083 | 23,920 | 27,463 |
Other Income (Expense) | ||||
Interest income and other income (expense) | 1,273 | 160 | 2,687 | 2,002 |
Floorplan interest expense | (1,448) | (1,856) | (3,724) | (4,932) |
Other interest expense | (955) | (1,617) | (3,562) | (6,137) |
Income Before Income Taxes | 12,409 | 12,770 | 19,321 | 18,396 |
Provision for Income Taxes | 4,195 | 1,994 | 6,041 | 4,055 |
Net Income | 8,214 | 10,776 | 13,280 | 14,341 |
Net Income Allocated to Participating Securities - Note 1 | (140) | (186) | (207) | (234) |
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders | $ 8,074 | $ 10,590 | $ 13,073 | $ 14,107 |
Earnings per Share: | ||||
Earnings (Loss) per Share - Basic, in dollars per share | $ 0.37 | $ 0.49 | $ 0.60 | $ 0.65 |
Earnings (Loss) per Share - Diluted, in dollars per share | $ 0.37 | $ 0.48 | $ 0.60 | $ 0.65 |
Weighted Average Common Shares: | 21,973 | 21,835 | 21,936 | 21,799 |
Basic | 21,976 | 21,842 | 21,942 | 21,806 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Net Income | $ 8,214 | $ 10,776 | $ 13,280 | $ 14,341 |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | (2,650) | 187 | (2,409) | 80 |
Comprehensive Income (Loss) | $ 5,564 | $ 10,963 | $ 10,871 | $ 14,421 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Operating Activities | ||
Net income | $ 13,280 | $ 14,341 |
Adjustments to reconcile net income to net cash used for operating activities | ||
Depreciation and amortization | 21,061 | 17,889 |
Impairment | 186 | 459 |
Deferred income taxes | 629 | 2,657 |
Stock-based compensation expense | 2,070 | 1,913 |
Noncash interest expense | 394 | 2,024 |
Operating Lease, Expense | 9,251 | |
Loss on repurchase of senior convertible notes | 0 | 615 |
Other, net | (63) | 1,116 |
Changes in assets and liabilities | ||
Receivables, prepaid expenses and other assets | (4,630) | (11,042) |
Inventories | (133,929) | (28,704) |
Manufacturer floorplan payable | 113,632 | 28,992 |
Accounts payable, deferred revenue, accrued expenses and other and other long-term liabilities | (20,697) | |
Operating Lease, Liability | (9,473) | |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | (8,289) | 11,726 |
Investing Activities | ||
Rental fleet purchases | (12,765) | (4,664) |
Property and equipment purchases (excluding rental fleet) | (7,637) | (4,456) |
Proceeds from sale of property and equipment | 1,386 | 1,101 |
Business Combination, Consideration Transferred | (11,752) | (15,299) |
Other, net | 13 | (399) |
Net Cash Used for Investing Activities | (30,755) | (23,717) |
Financing Activities | ||
Net change in non-manufacturer floorplan payable | 62,387 | 43,896 |
Repurchase of Senior Convertible Notes | (45,644) | (20,025) |
Proceeds from long-term debt borrowings | 21,865 | 3,183 |
Principal payments on long-term debt and finance leases | (3,197) | (15,102) |
Other, net | (509) | (643) |
Net Cash Provided by Financing Activities | 34,902 | 11,309 |
Effect of Exchange Rate Changes on Cash | (183) | (471) |
Net Change in Cash | (4,325) | (1,153) |
Cash at Beginning of Period | 56,745 | 53,396 |
Cash at End of Period | 52,420 | 52,243 |
Cash paid during the period | ||
Income taxes, net of refunds | 4,934 | 2,662 |
Interest | 7,162 | 8,965 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Net property and equipment financed with long-term debt, finance leases, accounts payable and accrued liabilities | 7,652 | 4,391 |
Net transfer of assets to (from) property and equipment from (to) inventories | $ (2,179) | $ 4,476 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Shares, Outstanding | 22,102 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 321,855 | $ 246,509 | $ 77,046 | $ (1,700) | |
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (22) | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (598) | (598) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 540 | 540 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1,614) | (1,614) | |||
Other Comprehensive Income (Loss), Net of Tax | 1,301 | 1,301 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 14,341 | ||||
Shares, Outstanding | 22,080 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 321,484 | 246,451 | 75,432 | (399) | |
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 138 | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (11) | (11) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 709 | 709 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5,180 | 5,180 | |||
Other Comprehensive Income (Loss), Net of Tax | (1,408) | (1,408) | |||
Shares, Outstanding | 22,218 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 325,954 | 247,149 | 80,612 | (1,807) | |
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 2 | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | 0 | 0 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 664 | 664 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 10,776 | 10,776 | |||
Other Comprehensive Income (Loss), Net of Tax | 187 | 187 | |||
Shares, Outstanding | 22,220 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 337,581 | 247,813 | 91,388 | (1,620) | |
Shares, Outstanding | 22,218 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 335,311 | 248,423 | 89,228 | (2,340) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Adjustments for New Accounting Pronouncement [Member] | (5,464) | ||||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (34) | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (492) | (492) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 603 | 603 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (445) | (445) | |||
Other Comprehensive Income (Loss), Net of Tax | (771) | (771) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 13,280 | ||||
Shares, Outstanding | 22,184 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 328,742 | 248,534 | 83,319 | (3,111) | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Adjustments for New Accounting Pronouncement [Member] | (5,464) | ||||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 170 | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | 0 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 694 | 694 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5,511 | 5,511 | |||
Other Comprehensive Income (Loss), Net of Tax | 1,012 | 1,012 | |||
Shares, Outstanding | 22,354 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 335,959 | 249,228 | 88,830 | (2,099) | |
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (2) | ||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (17) | (17) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 773 | 773 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 8,214 | 8,214 | |||
Other Comprehensive Income (Loss), Net of Tax | (2,650) | (2,650) | |||
Shares, Outstanding | 22,352 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 342,279 | $ 249,984 | $ 97,044 | $ (4,749) |
BUSINESS ACTIVITY AND SIGNIFICA
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2019 | |
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 nine -month period ended October 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2020 . The information contained in the consolidated balance sheet as of January 31, 2019 was derived from the audited consolidated financial statements for the Company for the fiscal 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 Annual Report on Form 10-K for the fiscal year ended January 31, 2019 as filed with the SEC. 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, Germany, 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, impairment of long-lived assets, collectability of receivables, and income taxes. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. Reclassifications Concurrent with the adoption of new lease accounting guidance, the Company elected to reclassify finance lease liabilities in the accompanying consolidated balance sheet as of January 31, 2019 to maintain consistency and comparability between periods presented. The amounts reclassified included $1.3 million from current maturities of long-term debt to accrued expenses and other and $5.1 million from long-term debt, less current maturities to other long-term liabilities. These reclassifications had no impact on total current liabilities, total long-term liabilities or total liabilities and stockholders' equity within the consolidated balance sheets. Certain reclassifications of amounts previously reported within the consolidated statements of cash flows have been made to maintain consistency and comparability between periods presented. These reclassifications had no impact on previously reported cash flows from operating, investing or financing activities within the consolidated statements of cash flows. Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board ("FASB") issued a new leasing standard applicable for lessees and lessors and codified in Accounting Standards Codification 842, Leases, ("ASC 842") to increase transparency and comparability among organizations. Most prominent among the changes in the standard is the recognition on the balance sheet by a lessee of right-of-use assets and lease liabilities for most leases. The standard also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from lease activities. This guidance is effective for reporting periods beginning after December 15, 2018. The Company adopted the leasing guidance on February 1, 2019 using a prospective transition method at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings as a result of adoption. Under this method of adoption, prior period amounts are not adjusted and will continue to be reported under accounting standards in effect for those periods. The Company elected the package of practical expedients afforded under the guidance, which applies to leases that commenced prior to adoption and permits an entity not to: 1) reassess whether existing or expired contracts are or contain a lease, 2) reassess the lease classification, and 3) reassess any initial direct costs for any existing leases. The Company did not elect the use of the hindsight practical expedient to determine the lease term, but rather included the lease term as defined under former leasing guidance to capitalize the right-of-use asset and lease liability upon adoption. The Company identified new, and updated existing, internal controls and processes to ensure compliance with the new standard, but such modifications were not deemed to be material to our overall system of internal controls. Adoption of the new standard for leasing transactions in which the Company is the lessee had a material impact on our consolidated balance sheet but did not have an impact on our consolidated statement of operations or cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while the accounting for financing leases remained substantially unchanged. We recognized a cumulative-effect adjustment to retained earnings as of February 1, 2019 of $5.5 million primarily resulting from impairment of operating lease right-of-use assets present on the date of adoption, net of the deferred tax impact. The adoption of the new standard for leasing transactions in which the Company is the lessor did not impact our consolidated balance sheet, statement of operations or cash flows. The Company has included the additional disclosures required under ASC 842 in Note 13. Adoption of ASC 842 impacted our consolidated balance sheet as of February 1, 2019 as follows: January 31, 2019 As Reported ASC 842 Adjustment on February 1, 2019 February 1, 2019 As Adjusted (in thousands) Assets Operating lease assets $ — $ 100,469 (a) $ 100,469 Liabilities and Stockholders' Equity Current maturities of long-term debt 3,340 (1,273 ) (b) 2,067 Current operating lease liabilities — 12,266 (c) 12,266 Accrued expenses and other 35,091 972 (d) 36,063 Long-term debt, less current maturities 25,812 (5,136 ) (b) 20,676 Operating lease liabilities — 98,250 (c) 98,250 Deferred income taxes 4,955 (374 ) (e) 4,581 Other long-term liabilities 5,908 1,228 (f) 7,136 Retained earnings 89,228 (5,464 ) (g) 83,764 (a) Capitalization of operating lease assets, net of straight-line rent accrued liabilities, cease-use liabilities, and right-of-use asset impairment present on the date of adoption. (b) As described above under Reclassifications , concurrent with the adoption of ASC 842, the Company elected to reclassify current maturities of finance lease liabilities from Current maturities of long-term debt to Accrued expenses and other and the long-term portion of finance lease liabilities from Long-term debt, less current maturities to Other long-term liabilities in the accompanying consolidated balance sheet as of January 31, 2019 to maintain consistency and comparability between periods presented. (c) Recognition of operating lease liabilities. (d) As described in (b) above, includes the reclassification of current maturities of finance lease liabilities, net of the reclassification of the current portion of cease-use liabilities to Operating lease assets as part of the adoption of ASC 842. (e) Deferred tax impact of adoption, primarily resulting from operating lease right-of-use asset impairment recognized upon adoption, net of the valuation allowance recognized for such deferred tax assets. (f) As described in (b) above, includes the reclassification of finance lease liabilities, net of the ASC 842 adoption impact of reclassifying straight-line rent accrued liabilities and cease-use liabilities, and the cumulative-effect adjustment recognized in retained earnings for gains deferred on previous sale-leaseback transactions. (g) Cumulative-effect adjustment of $6.6 million for operating lease right-of-use asset impairment present on the date of adoption net of the adjustment for deferred gains on previous sale-leaseback transactions of $0.7 million and the deferred tax impact of these adjustments, net of the valuation allowance recognized on such deferred tax assets. Unadopted Accounting Guidance In June 2016, the FASB issued a new standard, codified in ASC 326, that modifies how entities measure credit losses on most financial instruments. The new standard replaces the current "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We will adopt this standard on February 1, 2020. While we are currently evaluating the impact to our consolidated financial statements of adopting this guidance, we do not anticipate that the guidance will materially impact our consolidated financial statements. In February 2018, the FASB issued guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, codified in ASC 350-40. This guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and may be applied using either a retrospective or prospective transition approach. We will adopt this standard on February 1, 2020 and anticipate applying the prospective transition approach. While we are currently evaluating the impact of adopting this guidance, we do not anticipate that it will materially impact our consolidated financial statements. |
EARNINGS PER SHARE (Notes)
EARNINGS PER SHARE (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted EPS: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands, except per share data) Numerator: Net income $ 8,214 $ 10,776 $ 13,280 $ 14,341 Allocation to participating securities (140 ) (186 ) (207 ) (234 ) Net income attributable to Titan Machinery Inc. common stockholders $ 8,074 $ 10,590 $ 13,073 $ 14,107 Denominator: Basic weighted-average common shares outstanding 21,973 21,835 21,936 21,799 Plus: incremental shares from assumed exercises of stock options and vesting of restricted stock units 3 7 6 7 Diluted weighted-average common shares outstanding 21,976 21,842 21,942 21,806 Earnings Per Share: Basic $ 0.37 $ 0.49 $ 0.60 $ 0.65 Diluted $ 0.37 $ 0.48 $ 0.60 $ 0.65 Anti-dilutive shares excluded from diluted weighted-average common shares outstanding: Shares underlying senior convertible notes — 1,057 — 1,057 |
RECEIVABLES (Notes)
RECEIVABLES (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Receivables [Abstract] | |
Receivable [Policy Text Block] | RECEIVABLES October 31, 2019 January 31, 2019 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 41,834 $ 38,827 Trade receivables due from finance companies 15,060 10,265 Unbilled receivables 18,744 11,222 Trade and unbilled receivables from rental contracts Trade receivables 8,810 6,386 Unbilled receivables 1,363 828 Other receivables Due from manufacturers 6,906 12,950 Other 1,116 550 Total receivables 93,833 81,028 Less allowance for doubtful accounts (4,926 ) (3,528 ) Receivables, net of allowance for doubtful accounts $ 88,907 $ 77,500 The following table presents impairment losses on receivables arising from sales contracts with customers and receivables arising from rental contracts: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Impairment losses on: Receivables from sales contracts $ 75 $ 206 $ 1,061 $ 536 Receivables from rental contracts 282 62 779 220 $ 357 $ 268 $ 1,840 $ 756 |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue [Policy Text Block] | REVENUE Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to collect in exchange for those goods or services. Sales, value added and other taxes collected from our customers concurrent with our revenue activities are excluded from revenue. The following tables present our revenue disaggregated by revenue source and segment: Three Months Ended October 31, 2019 Three Months Ended October 31, 2018 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 148,680 $ 43,299 $ 54,007 $ 245,986 $ 151,247 $ 43,331 $ 59,215 $ 253,793 Parts 44,923 13,586 12,279 70,788 40,333 12,449 11,827 64,609 Service 18,885 6,674 1,994 27,553 16,758 6,336 1,714 24,808 Other 835 826 50 1,711 791 1,210 53 2,054 Revenue from contracts with customers 213,323 64,385 68,330 346,038 209,129 63,326 72,809 345,264 Rental 750 13,646 502 14,898 568 13,668 1,413 15,649 Total revenues $ 214,073 $ 78,031 $ 68,832 $ 360,936 $ 209,697 $ 76,994 $ 74,222 $ 360,913 Nine Months Ended October 31, 2019 Nine Months Ended October 31, 2018 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 367,754 $ 137,742 $ 148,880 $ 654,376 $ 350,435 $ 125,596 $ 149,157 $ 625,188 Parts 109,952 39,356 32,620 181,928 102,854 36,363 27,706 166,923 Service 51,869 20,163 5,183 77,215 46,554 17,979 3,480 68,013 Other 2,248 2,238 202 4,688 2,061 3,005 160 5,226 Revenue from contracts with customers 531,823 199,499 186,885 918,207 501,904 182,943 180,503 865,350 Rental 1,715 33,314 971 36,000 1,622 32,617 2,269 36,508 Total revenues $ 533,538 $ 232,813 $ 187,856 $ 954,207 $ 503,526 $ 215,560 $ 182,772 $ 901,858 Unbilled Receivables and Deferred Revenue Unbilled receivables amounted to $18.7 million and $11.2 million as of October 31, 2019 and January 31, 2019 . The increase in unbilled receivables is primarily the result of a seasonal increase in the volume of our service transactions in which we recognize revenue as our work is performed and prior to customer invoicing. Deferred revenue from contracts with customers amounted to $11.9 million and $44.9 million as of October 31, 2019 and January 31, 2019 . Our deferred revenue most often increases in the fourth quarter of each fiscal year due to a higher level of customer down payments or prepayments and longer time periods between customer payment and delivery of the equipment asset, and the related recognition of equipment revenue, prior to its seasonal use. During the nine months ended October 31, 2019 and 2018 , the Company recognized $43.7 million and $30.0 million , respectively, of revenue that was included in the deferred revenue balance as of January 31, 2019 and January 31, 2018 , respectively. No material amount of revenue was recognized during the three or nine months ended October 31, 2019 and 2018 from performance obligations satisfied in previous periods. The Company has elected as a practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of service of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The contracts for which the practical expedient has been applied include (i) equipment revenue transactions, which do not have a stated contractual term, but are short-term in nature, and (ii) service revenue transactions, which also do not have a stated contractual term but are generally completed within 30 days and for such contracts we recognize revenue over time at the amount to which we have the right to invoice for services completed to date. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES October 31, 2019 January 31, 2019 (in thousands) New equipment $ 417,681 $ 258,081 Used equipment 125,992 158,951 Parts and attachments 78,651 72,760 Work in process 1,891 1,299 $ 624,215 $ 491,091 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT October 31, 2019 January 31, 2019 (in thousands) Rental fleet equipment $ 115,361 $ 111,164 Machinery and equipment 22,434 21,646 Vehicles 49,785 42,330 Furniture and fixtures 41,360 40,645 Land, buildings, and leasehold improvements 66,278 63,091 295,218 278,876 Less accumulated depreciation (147,128 ) (139,926 ) $ 148,090 $ 138,950 The Company reviews its long-lived assets for potential impairment whenever events or circumstances indicate that the carrying value of the long-lived asset (or asset group) may not be recoverable. During the three months ended October 31, 2019 , the Company determined that a current period operating loss combined with historical losses of a certain store location indicated that the long-lived asset group of the store location may not be recoverable. The Company performed an impairment assessment of this asset group and as a result recognized an impairment charge of $0.1 million within its Construction segment. For the nine months ended October 31, 2019 , the Company recognized total impairment charges of $0.2 million within its Construction segment. For the three months ended October 31, 2018, the Company recognized an impairment charge within its Agriculture segment of $0.3 million . For the nine months ended October 31, 2018, the Company recognized total impairment charges of $0.5 million , of which $0.3 million was recognized within the Agriculture segment and $0.2 million within the International segment. In March 2019, the Company completed an assessment of its Enterprise Resource Planning ("ERP") application and concluded that the Company will begin the process to prepare for conversion to a new ERP application during the fiscal year ending January 31, 2020, with an anticipated implementation of the new ERP application during the first-half of the fiscal year ending January 31, 2021. Beginning in March 2019, the Company prospectively adjusted the useful life of its current ERP application such that it will be fully amortized upon its estimated replacement date. The net book value of the ERP asset of $8.7 million as of March 2019 will be amortized on a straight-line basis over the estimated remaining period of use. For the three and nine months ended October 31, 2019 , the Company recognized an additional $1.4 million and $3.7 million of amortization expense, which decreased operating income accordingly, decreased net income by approximately $1.1 million and $2.8 million , and decreased basic and diluted earnings per share by approximately $0.05 and $0.13 , respectively. |
GOODWILL (Notes)
GOODWILL (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Goodwill [Line Items] | |
Goodwill Disclosure [Text Block] | GOODWILL Changes in the carrying amount of goodwill during the nine months ended October 31, 2019 are as follows: Agriculture Construction International Total (in thousands) Balance, January 31, 2019 $ 250 $ — $ 911 $ 1,161 Arising from business combinations 699 — 499 1,198 Foreign currency translation — — (68 ) (68 ) Balance, October 31, 2019 $ 949 $ — $ 1,342 $ 2,291 |
LINES OF CREDIT _ FLOORPLAN PAY
LINES OF CREDIT / FLOORPLAN PAYABLE | 9 Months Ended |
Oct. 31, 2019 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT / FLOORPLAN PAYABLE | LINES OF CREDIT As of October 31, 2019 , the Company had floorplan lines of credit totaling $660.0 million , which is primarily comprised of three significant floorplan lines of credit: (i) a $400.0 million credit facility with CNH Industrial, (ii) a $140.0 million line of credit with a group of banks led by Wells Fargo Bank, National Association (the "Wells Fargo Credit Agreement"), and (iii) a $60.0 million credit facility with DLL Finance LLC. As of October 31, 2019 and January 31, 2019 , the Company's outstanding balances of floorplan payables and lines of credit consisted of the following: October 31, 2019 January 31, 2019 (in thousands) CNH Industrial $ 245,121 $ 120,319 Wells Fargo Credit Agreement (floorplan payable line) 98,400 49,100 DLL Finance 27,043 13,432 Other outstanding balances with manufacturers and non-manufacturers 75,162 90,905 $ 445,726 $ 273,756 As of October 31, 2019 , the interest-bearing U.S. floorplan payables carried various interest rates ranging from 4.28% to 5.60% , compared to a range of 4.77% to 6.30% as of January 31, 2019 . As of October 31, 2019 , foreign floorplan payables carried various interest rates primarily ranging from 0.86% to 7.88% , compared to a range of 0.94% to 8.51% as of January 31, 2019 . As of October 31, 2019 and January 31, 2019 , $257.1 million and $151.7 million , respectively, of outstanding floorplan payable were non-interest bearing. As of October 31, 2019 , the Company had a compensating balance arrangement under one of its foreign floorplan credit facilities, which requires a minimum cash deposit to be maintained with the lender in the amount of $5.0 million for the term of the credit facility. Wells Fargo Credit Agreement The maturity date of the Wells Fargo Credit Agreement was previously contingent upon the results of a maturity test that was performed on February 1, 2019, a date that was three months prior to the scheduled maturity date of the Company's outstanding senior convertible notes. Pursuant to this test, the maturity date for the Wells Fargo Credit Agreement would be October 28, 2020 so long as (i) the Company's fixed charge coverage ratio for the 12 month period ended December 31, 2018 was at least 1.10 to 1.00 and (ii) a liquidity test, requiring that the Company have unrestricted cash on hand plus excess borrowing availability under the Wells Fargo Credit Agreement (on a pro-forma basis reflecting the Company’s repayment in full of its outstanding senior convertible notes) in an amount that was greater than 20% of maximum credit amount under the facility, was met on February 1, 2019. If both financial tests were not satisfied on February 1, 2019, the Wells Fargo Credit Agreement would immediately mature and all amounts outstanding would become immediately due and payable in full. The Company satisfied the maturity test requirements on February 1, 2019, and therefore the maturity date of the Wells Fargo Credit Agreement is October 28, 2020. CNH Industrial Floorplan Payable Line of Credit In November 2019, the Company amended its credit facility with CNH Industrial to increase the available borrowings under the facility from $400.0 million to $450.0 million . Domestic available borrowings increased as a result of the amendment from $310.0 million to $360.0 million . Available borrowings of our European businesses remained unchanged at $90.0 million . DLL Finance Agreement In October 2019, the DLL Finance agreement was amended and restated to, among other things, increase the available borrowing capacity from $45.0 million to $60.0 million , of which approximately $47.0 million is available for domestic financing and approximately $13.0 million is available for financing in certain of our European markets, to decrease the interest margin on domestic borrowings from 3.00% to 2.85% , and to replace the maximum net leverage ratio covenant with a maximum adjusted debt to tangible net worth covenant of 3.50 :1.00. The adjusted debt to tangible net worth covenant is now aligned with the same covenant under our CNH Industrial floorplan financing arrangement. |
DEFERRED REVENUE (Notes)
DEFERRED REVENUE (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | DEFERRED REVENUE October 31, 2019 January 31, 2019 (in thousands) Deferred revenue from contracts with customers $ 11,866 $ 44,893 Deferred revenue from rental and other contracts 1,012 1,516 $ 12,878 $ 46,409 |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 9 Months Ended |
Oct. 31, 2019 | |
SENIOR CONVERTIBLE NOTES | |
Debt Disclosure [Text Block] | SENIOR CONVERTIBLE NOTES The Company's senior convertible notes matured, and the outstanding principal balance of $45.6 million was repaid in full, on May 1, 2019. The carrying value of outstanding senior convertible notes previously consisted of the following: October 31, 2019 January 31, 2019 (in thousands except conversion rate and conversion price) Principal value $ — $ 45,644 Unamortized debt discount — (350 ) Unamortized debt issuance costs — (45 ) Carrying value of senior convertible notes $ — $ 45,249 Carrying value of equity component, net of deferred taxes $ — $ 14,923 The Company recognized interest expense associated with its senior convertible notes as follows: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ — $ 428 $ 421 $ 1,579 Noncash Interest Expense Amortization of debt discount — 356 350 1,271 Amortization of transaction costs — 47 45 169 $ — $ 831 $ 816 $ 3,019 The effective interest rate of the liability component was equal to 7.3% for the three months ended October 31, 2018 and the nine months ended October 31, 2019 and 2018. |
LONG TERM DEBT (Notes)
LONG TERM DEBT (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt [Text Block] | LONG TERM DEBT The following is a summary of long-term debt as of October 31, 2019 and January 31, 2019 : October 31, 2019 January 31, 2019 (in thousands) Sale-leaseback financing obligations, interest rates ranging from 3.4% to 10.3% with various maturity dates through December 2030 $ 18,093 $ 19,010 Wells Fargo Credit Agreement - Working Capital Line, interest accrues at a variable rate on outstanding balances, requires monthly payments of accrued interest, matures on October 28, 2020. 10,000 — Real estate mortgage bearing interest at 5.11%, payable in quarterly installments of $0.3 million, maturing on May 15, 2039, secured by real estate assets 6,827 — Equipment financing loan, payable in monthly installments over a 72-month term for each funded tranche, bearing interest at 3.89%, secured by vehicle assets 6,369 — Real estate mortgage bearing interest at 4.62%, payable in monthly installments of $0.04 million with a final payment at maturity of $3.4 million, maturing on June 10, 2024, secured by real estate assets 4,465 — Real estate mortgage bearing interest at 2.09%, payable in monthly installments, maturing on June 30, 2026, secured by real estate assets 2,549 2,978 Other long-term debt primarily bearing interest at three-month EURIBOR plus 2.6%, payable in quarterly installments, maturing on January 31, 2021 731 755 49,034 22,743 Less current maturities (13,280 ) (2,067 ) $ 35,754 $ 20,676 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Oct. 31, 2019 | |
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. 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 Company's foreign currency forward contracts generally have three-month maturities, maturing on the last day of each fiscal quarter. No foreign currency contracts were outstanding as of October 31, 2019 . The notional value of outstanding foreign currency contracts as of January 31, 2019 was $14.1 million . As of January 31, 2019 , the fair value of the Company's outstanding derivative instruments was not material. Derivative instruments recognized as assets are recorded in prepaid expenses and other in the consolidated balance sheets, and derivative instruments recognized as liabilities are recorded in accrued expenses and other in the consolidated balance sheets. The following table sets forth the gains and losses recognized in income from the Company’s derivative instruments for the three and nine months ended October 31, 2019 and 2018 . Gains and losses are recognized in interest income and other income (expense) in the consolidated statements of operations: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Foreign currency contract gain (loss) $ (3 ) $ 634 $ 365 $ 1,757 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (Notes) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Oct. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | $ (2,650) | $ 1,012 | $ (771) | $ 187 | $ (1,408) | $ 1,301 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,749) | (2,099) | (3,111) | (1,620) | (1,807) | (399) | $ (4,749) | $ (2,340) | $ (1,700) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (2,650) | 1,012 | (771) | 187 | (1,408) | 1,301 | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (7,460) | $ (4,810) | $ (5,822) | $ (4,331) | $ (4,518) | $ (3,110) | $ (7,460) | $ (5,051) | $ (4,411) |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the periods ended October 31, 2019 and October 31, 2018 : Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2019 $ (5,051 ) $ 2,711 $ (2,340 ) Other comprehensive loss (771 ) — (771 ) Balance, April 30, 2019 (5,822 ) 2,711 (3,111 ) Other comprehensive income 1,012 — 1,012 Balance, July 31, 2019 (4,810 ) 2,711 (2,099 ) Other comprehensive loss (2,650 ) — (2,650 ) Balance, October 31, 2019 $ (7,460 ) $ 2,711 $ (4,749 ) Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2018 $ (4,411 ) $ 2,711 $ (1,700 ) Other comprehensive income 1,301 — 1,301 Balance, April 30, 2018 (3,110 ) 2,711 (399 ) Other comprehensive loss (1,408 ) — (1,408 ) Balance, July 31, 2018 (4,518 ) 2,711 (1,807 ) Other comprehensive income 187 — 187 Balance, October 31, 2018 $ (4,331 ) $ 2,711 $ (1,620 ) |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Lease Disclosure [Text Block] | LEASES As Lessee The Company, as lessee, leases certain of its dealership locations, office space, equipment and vehicles under operating and financing classified leasing arrangements. The Company has elected to not record leases with a lease term at commencement of 12 months or less on the consolidated balance sheet; such leases are expensed on a straight-line basis over the lease term. Many real estate lease agreements require the Company to pay the real estate taxes on the properties during the lease term and require that the Company maintain property insurance on each of the leased premises. Such payments are deemed to be variable lease payments as the amounts may change during the term of the lease. Certain leases include renewal options that can extend the lease term for periods of one to ten years. Most real estate leases grant the Company a right of first refusal or other options to purchase the real estate, generally at fair market value, either during the lease term or at its conclusion. In most cases, the Company has not included these renewal and purchase options within the measurement of the right-of-use asset and lease liability. Most often the Company cannot readily determine the interest rate implicit in the lease and thus applies its incremental borrowing rate to capitalize the right-of-use asset and lease liability. We estimate our incremental borrowing rate by incorporating considerations of lease term, asset class and lease currency and geographical market. Our lease agreements do not contain any material non-lease components, residual value guarantees or material restrictive covenants. The Company subleases a small number of real estate assets to third-parties, primarily dealership locations for which we have ceased operations. All sublease arrangements are classified as operating leases. The components of lease expense were as follows: Classification Three Months Ended October 31, 2019 Nine Months Ended October 31, 2019 (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 373 $ 1,080 Interest on lease liabilities Other interest expense 143 421 Operating lease cost Operating expenses & rental and other cost of revenue 4,613 14,154 Short-term lease cost Operating expenses 41 201 Variable lease cost Operating expenses 689 2,024 Sublease income Interest income and other income (expense) (146 ) (468 ) $ 5,713 $ 17,412 Right-of-use lease assets and lease liabilities consist of the following: Classification October 31, 2019 (in thousands) Assets Operating lease assets Operating lease assets $ 92,124 Finance lease assets (a) Property and equipment, net of accumulated depreciation 6,354 Total leased assets $ 98,478 Liabilities Current Operating Current operating lease liabilities $ 12,002 Finance Accrued expenses and other 1,640 Noncurrent Operating Operating lease liabilities 90,063 Finance Other long-term liabilities 4,267 Total lease liabilities $ 107,972 (a) Finance lease assets are recorded net of accumulated amortization of $1.1 million as of October 31, 2019 . Maturities of lease liabilities as of October 31, 2019 are as follows: Operating Finance Leases Leases Total Fiscal Year Ended January 31, (in thousands) 2020 (remainder) $ 4,555 $ 543 $ 5,098 2021 17,512 2,071 19,583 2022 16,675 1,754 18,429 2023 15,615 1,108 16,724 2024 14,713 380 15,093 2025 13,587 342 13,929 Thereafter 47,171 1,416 48,585 Total lease payments 129,828 7,614 137,441 Less: Interest 27,763 1,707 29,470 Present value of lease liabilities $ 102,065 $ 5,907 $ 107,971 The weighted-average lease term and discount rate as of October 31, 2019 are as follows: October 31, 2019 Weighted-average remaining lease term (years): Operating leases 8.2 Financing leases 5.5 Weighted-average discount rate: Operating leases 6.1 % Financing leases 10.3 % Other lease information is as follows: Nine Months Ended October 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,923 Operating cash flows from finance leases 421 Financing cash flows from finance leases 1,374 Operating lease assets obtained in exchange for new operating lease liabilities 1,073 Finance lease assets obtained in exchange for new finance lease liabilities 709 Minimum lease payments under operating and capital leases as determined under prior leasing guidance and as of January 31, 2019 were as follows: Operating Capital Leases Leases Fiscal year ended January 31, (in thousands) 2020 $ 20,117 $ 1,933 2021 18,786 1,831 2022 17,994 1,524 2023 17,117 882 2024 16,143 342 Thereafter 68,409 1,701 Total lease payments $ 158,566 8,213 Less: Interest 1,804 Present value of capital lease liabilities $ 6,409 As Lessor The Company rents equipment to customers, primarily in the Construction segment, on a short-term basis. Our rental arrangements generally do not include minimum, noncancellable periods as the lessee is entitled to cancel the arrangement at any time. Most often, our rental arrangements extend for periods ranging from a few days to a few months. We maintain a fleet of dedicated rental assets within our Construction segment and, within all segments, may also provide short-term rentals of certain equipment inventory assets. Certain rental arrangements may include rent-to-purchase options whereby customers are given a period of time to exercise an option to purchase the related equipment at an established price with any rental payments paid applied to reduce the purchase price. All of the Company's leasing arrangements as lessor are classified as operating leases. Rental revenue is recognized on a straight-line basis over the rental period. Rental revenue includes amounts charged for loss and damage insurance on rented equipment. In most cases, our rental arrangements include non-lease components, including delivery and pick-up services. The Company accounts for these non-lease components separate from the rental arrangement and recognizes the revenue associated with these components when the service is performed. The Company has elected to exclude from rental revenue all sales, value added and other taxes collected from our customers concurrent with our rental activities. Rental billings most often occur on a monthly basis and may be billed in advance or in arrears, thus creating unbilled rental receivables or deferred rental revenue amounts. The Company manages the residual value risk of its rented assets by (i) monitoring the quality, aging and anticipated retail market value of our rental fleet assets to determine the optimal period to remove an asset from the rental fleet, (ii) maintaining the quality of our assets through on-site parts and service support and (iii) requiring physical damage insurance of our lessee customers. We primarily dispose of our rental assets through the sale of the asset by our retail sales force. Revenue generated from leasing activities is disclosed, by segment, in Note 3. The following is the balance of our dedicated rental fleet assets of our Construction segment as of October 31, 2019 and January 31, 2019 : October 31, 2019 January 31, 2019 (in thousands) Rental fleet equipment $ 115,361 $ 111,164 Less accumulated depreciation 47,557 50,399 $ 67,804 $ 60,765 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Oct. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS As of January 31, 2019 , the fair value of the Company's foreign currency contracts, which are either assets or liabilities measured at fair value on a recurring basis, was not material. These foreign currency contracts were valued using a discounted cash flow analysis, an income approach, utilizing readily observable market data as inputs, which is classified as a Level 2 fair value measurement. The Company also valued certain long-lived assets at fair value on a non-recurring basis as of January 31, 2019 as part of its long-lived asset impairment testing. The estimated fair value of such assets was $0.9 million as of January 31, 2019 . Fair value was estimated through an income approach incorporating both observable and unobservable inputs, and are deemed to be Level 3 fair value inputs. The most significant unobservable inputs include forecasted net cash generated from the use of the assets and the discount rate applied to such cash flows to arrive at a fair value estimate. In addition, in certain instances the Company estimated the fair value of long-lived assets to approximate zero as no future cash flows were assumed to be generated from the use of such assets and the expected value to be realized upon disposition was deemed to be nominal. The Company also has financial instruments that are not recorded at fair value in the consolidated balance sheets, including cash, receivables, payables, long-term debt and senior convertible notes. The carrying amounts of these financial instruments approximated their fair values as of October 31, 2019 and January 31, 2019 . Fair value of these financial instruments was estimated based on Level 2 fair value inputs. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate was 33.8% and 15.6% for the three months ended October 31, 2019 and 2018 , and was 31.3% and 22.0% for the nine months ended October 31, 2019 and 2018 . Our effective tax rate can differ from the domestic federal statutory tax rate due to the mix of domestic and foreign income or losses and the impact of valuation allowances on our U.S. federal, state and certain of our foreign deferred tax assets, including net operating losses. In addition, for the three and nine months ended October 31, 2019, the effective tax rate increased by approximately seven percentage points due to foreign currency gains recognized as a result of a strengthening Ukrainian hryvnia. Differences in the amount of Ukrainian hryvnia foreign currency gains recognized for book and tax accounting are permanent differences that accordingly impacts our effective tax rate. The effective tax rate for the three months ended October 31, 2018 was impacted by certain discrete items recognized during the period and from certain tax planning strategies applied to minimize the impact of the global intangible low-taxed income ("GILTI") provisions for the fiscal year ended January 31, 2019. |
BUSINESS COMBINATIONS (Notes)
BUSINESS COMBINATIONS (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Fiscal 2020 On January 1, 2019, the Company, through its German subsidiary, acquired certain assets of ESB Agrartechnik GmbH ("ESB"). ESB is a full-service agriculture equipment dealership in Eastern Germany. Our acquisition of ESB further expands our presence in the German market. The total consideration transferred for the acquired business was $3.0 million paid in cash. This acquisition was recognized in the fiscal year ending January 31, 2020 as the acquisition occurred within our International segment in which all entities maintain a calendar year reporting period. On October 1, 2019, the Company acquired certain assets of Uglem-Ness Co. The acquired business consists of one Case IH agriculture equipment store in Northwood, North Dakota. The service area is contiguous to the Company's existing locations in Grand Forks and Casselton, North Dakota and Ada, Minnesota. The total consideration transferred for the acquired business was $8.8 million paid in cash. The Company has committed to acquire the real estate of the Uglem-Ness Co., subject to customary closing conditions, for a purchase price of $2.1 million . The Company anticipates completing the real estate acquisition by January 31, 2020. In connection with the acquisition, the Company acquired from CNH Industrial and certain other manufacturers equipment and parts inventory previously owned by Uglem-Ness Co. Upon acquiring such inventories, the Company has been offered floorplan financing by the manufacturer. In total, the Company acquired inventory and recognized a corresponding financing liability of $7.4 million . The recognition of these inventories and the associated financing liabilities are not included as part of the accounting for the business combination. Fiscal 2019 On July 2, 2018, the Company acquired all interests of two commonly-controlled companies, AGRAM Landtechnikvertrieb GmbH and AGRAM Landtechnik Rollwitz GmbH (collectively "AGRAM"), for $19.2 million in cash consideration. Founded in 1990, AGRAM is a CaseIH and Steyr dealership complex consisting of four agriculture dealership locations in the following cities of Germany: Altranft, Burkau, Gutzkow, and Rollwitz. Our acquisition of these entities provided the Company the opportunity to expand our international presence into the large, well-established German market. Purchase Price Allocation Each of the above acquisitions has been accounted for under the acquisition method of accounting, which requires the Company to estimate the acquisition date fair value of the assets acquired and liabilities assumed. The estimated fair values of the acquired assets of Uglem-Ness Co. are provisional estimates due to the short duration of time since the acquisition date. The estimated fair values of assets acquired from Ulgem-Ness Co. included below are based on the best information currently available but are estimates that are subject to change as the Company completes all remaining steps in finalizing the purchase price allocation. The Company expects to finalize the valuation of all assets by January 31, 2020. The accounting for all other acquisitions is complete as of October 31, 2019. The following table presents the aggregate purchase price allocations for all acquisitions completed during the nine months ended October 31, 2019 and 2018: October 31, 2019 October 31, 2018 (in thousands) Assets acquired: Cash $ — $ 3,857 Receivables 440 5,340 Inventories 6,466 21,725 Prepaid expenses and other — 887 Property and equipment 1,675 3,512 Intangible assets 1,973 1,944 Goodwill 1,198 924 Other — 61 11,752 38,250 Liabilities assumed: Accounts payable — 1,553 Floorplan payable — 13,820 Deferred revenue — 85 Accrued expenses and other — 1,279 Long-term debt — 1,725 Deferred income taxes — 632 — 19,094 Net assets acquired $ 11,752 $ 19,156 Goodwill recognized by segment: Agriculture $ 699 $ — Construction — — International 499 924 Goodwill expected to be deductible for tax purposes 1,198 $ — The recognition of goodwill in the above business combinations arose from the acquisition of an assembled workforce and anticipated synergies expected to be realized. For business combinations occurring during the nine months ended October 31, 2019, the Company recognized, in the aggregate, a customer relationship intangible asset of $0.2 million , a non-competition intangible asset of $0.1 million and a distribution rights intangible asset of $1.6 million . For the business combination occurring during the nine months ended October 31, 2018, the Company recognized a customer relationship intangible asset of $0.1 million and a distribution rights intangible asset of $1.8 million . The customer relationship and non-competition assets will be amortized over periods ranging from three to five years. The distribution rights assets are indefinite-lived intangible assets not subject to amortization. The Company estimated the fair value of the intangible assets using a multi-period excess earnings model, an income approach. Acquisition related costs were not material for either the nine months ended October 31, 2019 or 2018, and have been expensed as incurred and recognized as operating expenses in the consolidated statements of operations. |
CONTINGENCIES (Notes)
CONTINGENCIES (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 18 - CONTINGENCIES On October 11, 2017, the Romania Competition Council (“RCC”) initiated an administrative investigation of the Romanian Association of Manufacturers and Importers of Agricultural Machinery (“APIMAR”) and all its members, including Titan Machinery Romania. The RCC's investigation involves whether the APIMAR members engaged in anti-competitive practices in their sales of agricultural machinery not involving European Union ("EU") subvention funding programs, by referring to the published sales prices governing EU subvention funded transactions, which prices are mandatorily disclosed to and published by AFIR, a Romanian government agency that oversees the EU subvention funding programs in Romania. The investigation is in a preliminary stage and the Company is currently unable to predict its outcome or reasonably estimate any potential loss that may result from the investigation. The Company is also engaged in other legal proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Company's opinion that the outcome of these various legal actions and claims will not have a material impact on the financial position, results of operations or cash flows. These matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. |
SEGMENT INFORMATION AND OPERATI
SEGMENT INFORMATION AND OPERATING RESULTS | 9 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND OPERATING RESULTS | SEGMENT INFORMATION The Company has three reportable segments: Agriculture, Construction and International. 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 and property and equipment. Certain financial information for each of the Company’s business segments is set forth below. All revenue amounts for the three and nine months ended October 31, 2018 shown below are presented on an as corrected basis following the correction of an immaterial error identified in previously issued financial statements. Refer to Note 19 for additional details. Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue Agriculture $ 214,073 $ 209,697 $ 533,538 $ 503,526 Construction 78,031 76,994 232,813 215,560 International 68,832 74,222 187,856 182,772 Total $ 360,936 $ 360,913 $ 954,207 $ 901,858 Income (Loss) Before Income Taxes Agriculture $ 10,259 $ 9,383 $ 18,312 $ 15,666 Construction 347 1,154 (541 ) (1,773 ) International 2,061 2,596 2,783 6,235 Segment income (loss) before income taxes 12,667 13,133 20,554 20,128 Shared Resources (258 ) (363 ) (1,233 ) (1,732 ) Total $ 12,409 $ 12,770 $ 19,321 $ 18,396 October 31, 2019 January 31, 2019 (in thousands) Total Assets Agriculture $ 462,881 $ 316,224 Construction 297,703 227,261 International 199,168 170,187 Segment assets 959,752 713,672 Shared Resources 69,772 78,766 Total $ 1,029,524 $ 792,438 |
IMMATERIAL RESTATEMENT (Notes)
IMMATERIAL RESTATEMENT (Notes) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | IMMATERIAL RESTATEMENT OF PRIOR PERIOD FINANCIAL STATEMENTS As previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2019, the Company identified an immaterial error within its financial statements, including in the results for the three and nine months ended October 31, 2018. The identified error was the result of incorrectly eliminating certain internal parts and service transactions. The adjustments to correct for this error reduce total revenue and cost of revenue by approximately 1.0% and impact the amounts of previously reported equipment, parts, service and rental and other revenue and cost of revenue amounts, but have no impact on total gross profit, operating or net income, earnings per share, or the consolidated balance sheets or statements of cash flows. Management of the Company has evaluated all relevant quantitative and qualitative factors and has concluded that the error is not material to the results of operations for the previously reported periods. The Company has restated its accompanying statement of operations to correct for this immaterial error for the three and nine months ended October 31, 2018 . Included below is a summary of the previously reported amounts of revenue and cost of revenue, the impact of correcting for this immaterial error, and the as-corrected amounts for the three and nine month periods ended October 31, 2018 : Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Previously Reported Corrections As Corrected As Previously Reported Corrections As Corrected (in thousands) Revenue Equipment $ 241,198 $ 12,595 $ 253,793 $ 590,823 $ 34,365 $ 625,188 Parts 70,118 (5,509 ) 64,609 181,651 (14,728 ) 166,923 Service 33,560 (8,752 ) 24,808 92,187 (24,174 ) 68,013 Rental and other 18,773 (1,070 ) 17,703 44,558 (2,824 ) 41,734 Total Revenue 363,649 (2,736 ) 360,913 909,219 (7,361 ) 901,858 Cost of Revenue Equipment 218,204 7,316 225,520 534,443 21,480 555,923 Parts 49,481 (3,815 ) 45,666 128,683 (10,429 ) 118,254 Service 11,841 (4,085 ) 7,756 34,475 (12,557 ) 21,918 Rental and other 14,581 (2,152 ) 12,429 35,617 (5,855 ) 29,762 Total Cost of Revenue 294,107 (2,736 ) 291,371 733,218 (7,361 ) 725,857 Gross Profit $ 69,542 $ — $ 69,542 $ 176,001 $ — $ 176,001 |
BUSINESS ACTIVITY AND SIGNIFI_2
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Oct. 31, 2019 | |
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 nine -month period ended October 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2020 . The information contained in the consolidated balance sheet as of January 31, 2019 was derived from the audited consolidated financial statements for the Company for the fiscal 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 Annual Report on Form 10-K for the fiscal year ended January 31, 2019 as filed with the SEC. |
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, impairment of long-lived 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 subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. Reclassifications Concurrent with the adoption of new lease accounting guidance, the Company elected to reclassify finance lease liabilities in the accompanying consolidated balance sheet as of January 31, 2019 to maintain consistency and comparability between periods presented. The amounts reclassified included $1.3 million from current maturities of long-term debt to accrued expenses and other and $5.1 million from long-term debt, less current maturities to other long-term liabilities. These reclassifications had no impact on total current liabilities, total long-term liabilities or total liabilities and stockholders' equity within the consolidated balance sheets. Certain reclassifications of amounts previously reported within the consolidated statements of cash flows have been made to maintain consistency and comparability between periods presented. These reclassifications had no impact on previously reported cash flows from operating, investing or financing activities within the consolidated statements of cash flows. |
New Accounting Pronouncements | Recently Adopted Accounting Guidance In February 2016, the Financial Accounting Standards Board ("FASB") issued a new leasing standard applicable for lessees and lessors and codified in Accounting Standards Codification 842, Leases, ("ASC 842") to increase transparency and comparability among organizations. Most prominent among the changes in the standard is the recognition on the balance sheet by a lessee of right-of-use assets and lease liabilities for most leases. The standard also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from lease activities. This guidance is effective for reporting periods beginning after December 15, 2018. The Company adopted the leasing guidance on February 1, 2019 using a prospective transition method at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings as a result of adoption. Under this method of adoption, prior period amounts are not adjusted and will continue to be reported under accounting standards in effect for those periods. The Company elected the package of practical expedients afforded under the guidance, which applies to leases that commenced prior to adoption and permits an entity not to: 1) reassess whether existing or expired contracts are or contain a lease, 2) reassess the lease classification, and 3) reassess any initial direct costs for any existing leases. The Company did not elect the use of the hindsight practical expedient to determine the lease term, but rather included the lease term as defined under former leasing guidance to capitalize the right-of-use asset and lease liability upon adoption. The Company identified new, and updated existing, internal controls and processes to ensure compliance with the new standard, but such modifications were not deemed to be material to our overall system of internal controls. Adoption of the new standard for leasing transactions in which the Company is the lessee had a material impact on our consolidated balance sheet but did not have an impact on our consolidated statement of operations or cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while the accounting for financing leases remained substantially unchanged. We recognized a cumulative-effect adjustment to retained earnings as of February 1, 2019 of $5.5 million primarily resulting from impairment of operating lease right-of-use assets present on the date of adoption, net of the deferred tax impact. The adoption of the new standard for leasing transactions in which the Company is the lessor did not impact our consolidated balance sheet, statement of operations or cash flows. The Company has included the additional disclosures required under ASC 842 in Note 13. Adoption of ASC 842 impacted our consolidated balance sheet as of February 1, 2019 as follows: January 31, 2019 As Reported ASC 842 Adjustment on February 1, 2019 February 1, 2019 As Adjusted (in thousands) Assets Operating lease assets $ — $ 100,469 (a) $ 100,469 Liabilities and Stockholders' Equity Current maturities of long-term debt 3,340 (1,273 ) (b) 2,067 Current operating lease liabilities — 12,266 (c) 12,266 Accrued expenses and other 35,091 972 (d) 36,063 Long-term debt, less current maturities 25,812 (5,136 ) (b) 20,676 Operating lease liabilities — 98,250 (c) 98,250 Deferred income taxes 4,955 (374 ) (e) 4,581 Other long-term liabilities 5,908 1,228 (f) 7,136 Retained earnings 89,228 (5,464 ) (g) 83,764 (a) Capitalization of operating lease assets, net of straight-line rent accrued liabilities, cease-use liabilities, and right-of-use asset impairment present on the date of adoption. (b) As described above under Reclassifications , concurrent with the adoption of ASC 842, the Company elected to reclassify current maturities of finance lease liabilities from Current maturities of long-term debt to Accrued expenses and other and the long-term portion of finance lease liabilities from Long-term debt, less current maturities to Other long-term liabilities in the accompanying consolidated balance sheet as of January 31, 2019 to maintain consistency and comparability between periods presented. (c) Recognition of operating lease liabilities. (d) As described in (b) above, includes the reclassification of current maturities of finance lease liabilities, net of the reclassification of the current portion of cease-use liabilities to Operating lease assets as part of the adoption of ASC 842. (e) Deferred tax impact of adoption, primarily resulting from operating lease right-of-use asset impairment recognized upon adoption, net of the valuation allowance recognized for such deferred tax assets. (f) As described in (b) above, includes the reclassification of finance lease liabilities, net of the ASC 842 adoption impact of reclassifying straight-line rent accrued liabilities and cease-use liabilities, and the cumulative-effect adjustment recognized in retained earnings for gains deferred on previous sale-leaseback transactions. (g) Cumulative-effect adjustment of $6.6 million for operating lease right-of-use asset impairment present on the date of adoption net of the adjustment for deferred gains on previous sale-leaseback transactions of $0.7 million and the deferred tax impact of these adjustments, net of the valuation allowance recognized on such deferred tax assets. Unadopted Accounting Guidance In June 2016, the FASB issued a new standard, codified in ASC 326, that modifies how entities measure credit losses on most financial instruments. The new standard replaces the current "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We will adopt this standard on February 1, 2020. While we are currently evaluating the impact to our consolidated financial statements of adopting this guidance, we do not anticipate that the guidance will materially impact our consolidated financial statements. In February 2018, the FASB issued guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, codified in ASC 350-40. This guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and may be applied using either a retrospective or prospective transition approach. We will adopt this standard on February 1, 2020 and anticipate applying the prospective transition approach. While we are currently evaluating the impact of adopting this guidance, we do not anticipate that it will materially impact our consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted EPS: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands, except per share data) Numerator: Net income $ 8,214 $ 10,776 $ 13,280 $ 14,341 Allocation to participating securities (140 ) (186 ) (207 ) (234 ) Net income attributable to Titan Machinery Inc. common stockholders $ 8,074 $ 10,590 $ 13,073 $ 14,107 Denominator: Basic weighted-average common shares outstanding 21,973 21,835 21,936 21,799 Plus: incremental shares from assumed exercises of stock options and vesting of restricted stock units 3 7 6 7 Diluted weighted-average common shares outstanding 21,976 21,842 21,942 21,806 Earnings Per Share: Basic $ 0.37 $ 0.49 $ 0.60 $ 0.65 Diluted $ 0.37 $ 0.48 $ 0.60 $ 0.65 Anti-dilutive shares excluded from diluted weighted-average common shares outstanding: Shares underlying senior convertible notes — 1,057 — 1,057 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 41,834 $ 38,827 Trade receivables due from finance companies 15,060 10,265 Unbilled receivables 18,744 11,222 Trade and unbilled receivables from rental contracts Trade receivables 8,810 6,386 Unbilled receivables 1,363 828 Other receivables Due from manufacturers 6,906 12,950 Other 1,116 550 Total receivables 93,833 81,028 Less allowance for doubtful accounts (4,926 ) (3,528 ) Receivables, net of allowance for doubtful accounts $ 88,907 $ 77,500 |
Impaired Financing Receivables [Table Text Block] | The following table presents impairment losses on receivables arising from sales contracts with customers and receivables arising from rental contracts: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Impairment losses on: Receivables from sales contracts $ 75 $ 206 $ 1,061 $ 536 Receivables from rental contracts 282 62 779 220 $ 357 $ 268 $ 1,840 $ 756 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
DISAGGREGATED REVENUE [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables present our revenue disaggregated by revenue source and segment: Three Months Ended October 31, 2019 Three Months Ended October 31, 2018 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 148,680 $ 43,299 $ 54,007 $ 245,986 $ 151,247 $ 43,331 $ 59,215 $ 253,793 Parts 44,923 13,586 12,279 70,788 40,333 12,449 11,827 64,609 Service 18,885 6,674 1,994 27,553 16,758 6,336 1,714 24,808 Other 835 826 50 1,711 791 1,210 53 2,054 Revenue from contracts with customers 213,323 64,385 68,330 346,038 209,129 63,326 72,809 345,264 Rental 750 13,646 502 14,898 568 13,668 1,413 15,649 Total revenues $ 214,073 $ 78,031 $ 68,832 $ 360,936 $ 209,697 $ 76,994 $ 74,222 $ 360,913 Nine Months Ended October 31, 2019 Nine Months Ended October 31, 2018 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 367,754 $ 137,742 $ 148,880 $ 654,376 $ 350,435 $ 125,596 $ 149,157 $ 625,188 Parts 109,952 39,356 32,620 181,928 102,854 36,363 27,706 166,923 Service 51,869 20,163 5,183 77,215 46,554 17,979 3,480 68,013 Other 2,248 2,238 202 4,688 2,061 3,005 160 5,226 Revenue from contracts with customers 531,823 199,499 186,885 918,207 501,904 182,943 180,503 865,350 Rental 1,715 33,314 971 36,000 1,622 32,617 2,269 36,508 Total revenues $ 533,538 $ 232,813 $ 187,856 $ 954,207 $ 503,526 $ 215,560 $ 182,772 $ 901,858 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | October 31, 2019 January 31, 2019 (in thousands) New equipment $ 417,681 $ 258,081 Used equipment 125,992 158,951 Parts and attachments 78,651 72,760 Work in process 1,891 1,299 $ 624,215 $ 491,091 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | October 31, 2019 January 31, 2019 (in thousands) Rental fleet equipment $ 115,361 $ 111,164 Machinery and equipment 22,434 21,646 Vehicles 49,785 42,330 Furniture and fixtures 41,360 40,645 Land, buildings, and leasehold improvements 66,278 63,091 295,218 278,876 Less accumulated depreciation (147,128 ) (139,926 ) $ 148,090 $ 138,950 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Goodwill [Line Items] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Changes in the carrying amount of goodwill during the nine months ended October 31, 2019 are as follows: Agriculture Construction International Total (in thousands) Balance, January 31, 2019 $ 250 $ — $ 911 $ 1,161 Arising from business combinations 699 — 499 1,198 Foreign currency translation — — (68 ) (68 ) Balance, October 31, 2019 $ 949 $ — $ 1,342 $ 2,291 |
LINES OF CREDIT _ FLOORPLAN P_2
LINES OF CREDIT / FLOORPLAN PAYABLE Summary of Outstanding Amounts (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) CNH Industrial $ 245,121 $ 120,319 Wells Fargo Credit Agreement (floorplan payable line) 98,400 49,100 DLL Finance 27,043 13,432 Other outstanding balances with manufacturers and non-manufacturers 75,162 90,905 $ 445,726 $ 273,756 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | October 31, 2019 January 31, 2019 (in thousands) Deferred revenue from contracts with customers $ 11,866 $ 44,893 Deferred revenue from rental and other contracts 1,012 1,516 $ 12,878 $ 46,409 |
SENIOR CONVERTIBLE NOTES (Table
SENIOR CONVERTIBLE NOTES (Tables) - Senior Convertible Notes | 9 Months Ended |
Oct. 31, 2019 | |
SENIOR CONVERTIBLE NOTES | |
Schedule of 3.75% Senior Convertible Notes | : October 31, 2019 January 31, 2019 (in thousands except conversion rate and conversion price) Principal value $ — $ 45,644 Unamortized debt discount — (350 ) Unamortized debt issuance costs — (45 ) Carrying value of senior convertible notes $ — $ 45,249 Carrying value of equity component, net of deferred taxes $ — $ 14,923 |
Senior Convertible Notes Interest Expense | The Company recognized interest expense associated with its senior convertible notes as follows: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ — $ 428 $ 421 $ 1,579 Noncash Interest Expense Amortization of debt discount — 356 350 1,271 Amortization of transaction costs — 47 45 169 $ — $ 831 $ 816 $ 3,019 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Long Term Debt Excluding Senior Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The following is a summary of long-term debt as of October 31, 2019 and January 31, 2019 : October 31, 2019 January 31, 2019 (in thousands) Sale-leaseback financing obligations, interest rates ranging from 3.4% to 10.3% with various maturity dates through December 2030 $ 18,093 $ 19,010 Wells Fargo Credit Agreement - Working Capital Line, interest accrues at a variable rate on outstanding balances, requires monthly payments of accrued interest, matures on October 28, 2020. 10,000 — Real estate mortgage bearing interest at 5.11%, payable in quarterly installments of $0.3 million, maturing on May 15, 2039, secured by real estate assets 6,827 — Equipment financing loan, payable in monthly installments over a 72-month term for each funded tranche, bearing interest at 3.89%, secured by vehicle assets 6,369 — Real estate mortgage bearing interest at 4.62%, payable in monthly installments of $0.04 million with a final payment at maturity of $3.4 million, maturing on June 10, 2024, secured by real estate assets 4,465 — Real estate mortgage bearing interest at 2.09%, payable in monthly installments, maturing on June 30, 2026, secured by real estate assets 2,549 2,978 Other long-term debt primarily bearing interest at three-month EURIBOR plus 2.6%, payable in quarterly installments, maturing on January 31, 2021 731 755 49,034 22,743 Less current maturities (13,280 ) (2,067 ) $ 35,754 $ 20,676 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gains and losses recognized on derivative instruments | The following table sets forth the gains and losses recognized in income from the Company’s derivative instruments for the three and nine months ended October 31, 2019 and 2018 . Gains and losses are recognized in interest income and other income (expense) in the consolidated statements of operations: Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) Foreign currency contract gain (loss) $ (3 ) $ 634 $ 365 $ 1,757 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME AOCI (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the periods ended October 31, 2019 and October 31, 2018 : Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2019 $ (5,051 ) $ 2,711 $ (2,340 ) Other comprehensive loss (771 ) — (771 ) Balance, April 30, 2019 (5,822 ) 2,711 (3,111 ) Other comprehensive income 1,012 — 1,012 Balance, July 31, 2019 (4,810 ) 2,711 (2,099 ) Other comprehensive loss (2,650 ) — (2,650 ) Balance, October 31, 2019 $ (7,460 ) $ 2,711 $ (4,749 ) Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2018 $ (4,411 ) $ 2,711 $ (1,700 ) Other comprehensive income 1,301 — 1,301 Balance, April 30, 2018 (3,110 ) 2,711 (399 ) Other comprehensive loss (1,408 ) — (1,408 ) Balance, July 31, 2018 (4,518 ) 2,711 (1,807 ) Other comprehensive income 187 — 187 Balance, October 31, 2018 $ (4,331 ) $ 2,711 $ (1,620 ) |
LEASES (Tables)
LEASES (Tables) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Oct. 31, 2019 | Jan. 31, 2019 | |
Lease Expense [Abstract] | ||
Lease, Cost [Table Text Block] | The components of lease expense were as follows: Classification Three Months Ended October 31, 2019 Nine Months Ended October 31, 2019 (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 373 $ 1,080 Interest on lease liabilities Other interest expense 143 421 Operating lease cost Operating expenses & rental and other cost of revenue 4,613 14,154 Short-term lease cost Operating expenses 41 201 Variable lease cost Operating expenses 689 2,024 Sublease income Interest income and other income (expense) (146 ) (468 ) $ 5,713 $ 17,412 | |
Summary of Lease Assets and Liabilities [Table Text Block] | Right-of-use lease assets and lease liabilities consist of the following: Classification October 31, 2019 (in thousands) Assets Operating lease assets Operating lease assets $ 92,124 Finance lease assets (a) Property and equipment, net of accumulated depreciation 6,354 Total leased assets $ 98,478 Liabilities Current Operating Current operating lease liabilities $ 12,002 Finance Accrued expenses and other 1,640 Noncurrent Operating Operating lease liabilities 90,063 Finance Other long-term liabilities 4,267 Total lease liabilities $ 107,972 | |
Summary of Lease Maturities [Table Text Block] | Maturities of lease liabilities as of October 31, 2019 are as follows: Operating Finance Leases Leases Total Fiscal Year Ended January 31, (in thousands) 2020 (remainder) $ 4,555 $ 543 $ 5,098 2021 17,512 2,071 19,583 2022 16,675 1,754 18,429 2023 15,615 1,108 16,724 2024 14,713 380 15,093 2025 13,587 342 13,929 Thereafter 47,171 1,416 48,585 Total lease payments 129,828 7,614 137,441 Less: Interest 27,763 1,707 29,470 Present value of lease liabilities $ 102,065 $ 5,907 $ 107,971 | |
Weighted-Average Lease Term and Discount Rate [Table Text Block] | The weighted-average lease term and discount rate as of October 31, 2019 are as follows: October 31, 2019 Weighted-average remaining lease term (years): Operating leases 8.2 Financing leases 5.5 Weighted-average discount rate: Operating leases 6.1 % Financing leases 10.3 % | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 2 months | |
Cash Flow Related to Leases [Table Text Block] | Other lease information is as follows: Nine Months Ended October 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13,923 Operating cash flows from finance leases 421 Financing cash flows from finance leases 1,374 Operating lease assets obtained in exchange for new operating lease liabilities 1,073 Finance lease assets obtained in exchange for new finance lease liabilities 709 | |
Operating Lease, Payments | $ 13,923 | |
Contractual Obligation, Fiscal Year Maturity [Table Text Block] | Minimum lease payments under operating and capital leases as determined under prior leasing guidance and as of January 31, 2019 were as follows: Operating Capital Leases Leases Fiscal year ended January 31, (in thousands) 2020 $ 20,117 $ 1,933 2021 18,786 1,831 2022 17,994 1,524 2023 17,117 882 2024 16,143 342 Thereafter 68,409 1,701 Total lease payments $ 158,566 8,213 Less: Interest 1,804 Present value of capital lease liabilities $ 6,409 | |
Operating Leases, Future Minimum Payments Due | $ 158,566 | |
Rental Fleet Assets [Table Text Block] | The following is the balance of our dedicated rental fleet assets of our Construction segment as of October 31, 2019 and January 31, 2019 : October 31, 2019 January 31, 2019 (in thousands) Rental fleet equipment $ 115,361 $ 111,164 Less accumulated depreciation 47,557 50,399 $ 67,804 $ 60,765 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table presents the aggregate purchase price allocations for all acquisitions completed during the nine months ended October 31, 2019 and 2018: October 31, 2019 October 31, 2018 (in thousands) Assets acquired: Cash $ — $ 3,857 Receivables 440 5,340 Inventories 6,466 21,725 Prepaid expenses and other — 887 Property and equipment 1,675 3,512 Intangible assets 1,973 1,944 Goodwill 1,198 924 Other — 61 11,752 38,250 Liabilities assumed: Accounts payable — 1,553 Floorplan payable — 13,820 Deferred revenue — 85 Accrued expenses and other — 1,279 Long-term debt — 1,725 Deferred income taxes — 632 — 19,094 Net assets acquired $ 11,752 $ 19,156 Goodwill recognized by segment: Agriculture $ 699 $ — Construction — — International 499 924 Goodwill expected to be deductible for tax purposes 1,198 $ — |
SEGMENT INFORMATION AND OPERA_2
SEGMENT INFORMATION AND OPERATING RESULTS (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
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. All revenue amounts for the three and nine months ended October 31, 2018 shown below are presented on an as corrected basis following the correction of an immaterial error identified in previously issued financial statements. Refer to Note 19 for additional details. Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 (in thousands) (in thousands) Revenue Agriculture $ 214,073 $ 209,697 $ 533,538 $ 503,526 Construction 78,031 76,994 232,813 215,560 International 68,832 74,222 187,856 182,772 Total $ 360,936 $ 360,913 $ 954,207 $ 901,858 Income (Loss) Before Income Taxes Agriculture $ 10,259 $ 9,383 $ 18,312 $ 15,666 Construction 347 1,154 (541 ) (1,773 ) International 2,061 2,596 2,783 6,235 Segment income (loss) before income taxes 12,667 13,133 20,554 20,128 Shared Resources (258 ) (363 ) (1,233 ) (1,732 ) Total $ 12,409 $ 12,770 $ 19,321 $ 18,396 October 31, 2019 January 31, 2019 (in thousands) Total Assets Agriculture $ 462,881 $ 316,224 Construction 297,703 227,261 International 199,168 170,187 Segment assets 959,752 713,672 Shared Resources 69,772 78,766 Total $ 1,029,524 $ 792,438 |
IMMATERIAL RESTATEMENT (Tables)
IMMATERIAL RESTATEMENT (Tables) | 9 Months Ended |
Oct. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Included below is a summary of the previously reported amounts of revenue and cost of revenue, the impact of correcting for this immaterial error, and the as-corrected amounts for the three and nine month periods ended October 31, 2018 : Three Months Ended October 31, 2018 Nine Months Ended October 31, 2018 As Previously Reported Corrections As Corrected As Previously Reported Corrections As Corrected (in thousands) Revenue Equipment $ 241,198 $ 12,595 $ 253,793 $ 590,823 $ 34,365 $ 625,188 Parts 70,118 (5,509 ) 64,609 181,651 (14,728 ) 166,923 Service 33,560 (8,752 ) 24,808 92,187 (24,174 ) 68,013 Rental and other 18,773 (1,070 ) 17,703 44,558 (2,824 ) 41,734 Total Revenue 363,649 (2,736 ) 360,913 909,219 (7,361 ) 901,858 Cost of Revenue Equipment 218,204 7,316 225,520 534,443 21,480 555,923 Parts 49,481 (3,815 ) 45,666 128,683 (10,429 ) 118,254 Service 11,841 (4,085 ) 7,756 34,475 (12,557 ) 21,918 Rental and other 14,581 (2,152 ) 12,429 35,617 (5,855 ) 29,762 Total Cost of Revenue 294,107 (2,736 ) 291,371 733,218 (7,361 ) 725,857 Gross Profit $ 69,542 $ — $ 69,542 $ 176,001 $ — $ 176,001 |
BUSINESS ACTIVITY AND SIGNIFI_3
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details 2) (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 92,124 | $ 100,469 | |
Notes and Loans Payable, Current | 13,280 | 2,067 | $ 2,067 |
Operating Lease, Liability, Current | 12,002 | 12,266 | 0 |
Accrued Liabilities, Current | 39,392 | 36,063 | 36,364 |
Notes and Loans, Noncurrent | 35,754 | 20,676 | 20,676 |
Operating Lease, Liability | 102,065 | 98,250 | |
Deferred Tax Liabilities, Net, Noncurrent | 5,586 | 4,581 | 4,955 |
Other Liabilities, Noncurrent | 8,125 | 7,136 | 11,044 |
Retained Earnings (Accumulated Deficit) | 97,044 | 83,764 | 89,228 |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other Accrued Liabilities | 1,300 | ||
Other Long-term Debt | $ 5,100 | ||
Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | 100,469 | ||
Notes and Loans Payable, Current | (1,273) | ||
Operating Lease, Liability, Current | 12,266 | ||
Accrued Liabilities, Current | 972 | ||
Notes and Loans, Noncurrent | (5,136) | ||
Operating Lease, Liability | 98,250 | ||
Deferred Tax Liabilities, Net, Noncurrent | (374) | ||
Other Liabilities, Noncurrent | 1,228 | ||
Retained Earnings (Accumulated Deficit) | $ (5,464) | ||
Previously Reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Notes and Loans Payable, Current | 3,340 | ||
Accrued Liabilities, Current | 35,091 | ||
Notes and Loans, Noncurrent | 25,812 | ||
Deferred Tax Liabilities, Net, Noncurrent | 4,955 | ||
Other Liabilities, Noncurrent | 5,908 | ||
Retained Earnings (Accumulated Deficit) | $ 89,228 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 8,214 | $ 5,511 | $ (445) | $ 10,776 | $ 5,180 | $ (1,614) | $ 13,280 | $ 14,341 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 140 | 186 | 207 | 234 | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 8,074 | $ 10,590 | $ 13,073 | $ 14,107 | ||||
Basic weighted-average common shares outstanding | 21,973 | 21,835 | 21,936 | 21,799 | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 3 | 7 | 6 | 7 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 21,976 | 21,842 | 21,942 | 21,806 | ||||
Earnings Per Share, Basic | $ 0.37 | $ 0.49 | $ 0.60 | $ 0.65 | ||||
Earnings Per Share, Diluted | 0.37 | $ 0.48 | 0.60 | $ 0.65 | ||||
Convertible Debt Securities [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 43.17 | $ 43.17 | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 1,057 | 0 | 1,000 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Revenue from Contracts with Customers, Impairment Loss | $ 75 | $ 206 | $ 1,061 | $ 536 | |
Accounts Receivable, before Allowance for Credit Loss, Current | 93,833 | 93,833 | $ 81,028 | ||
Rental Contract, Impairment Loss | 282 | 62 | 779 | 220 | |
Accounts Receivable, Allowance for Credit Loss | (4,926) | (4,926) | (3,528) | ||
Accounts Receivable, after Allowance for Credit Loss, Current | 88,907 | 88,907 | 77,500 | ||
Unbilled Receivables, Current | 18,744 | 18,744 | 11,222 | ||
Impaired Financing Receivables [Table Text Block] | 357 | $ 268 | 1,840 | $ 756 | |
Unbilled Receivables from Operating Leases and Rental Contracts [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | 1,363 | 1,363 | 828 | ||
Trade Accounts Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | 41,834 | 41,834 | 38,827 | ||
Accounts Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | 8,810 | 8,810 | 6,386 | ||
Trade Receivables due from Finance Companies [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | 15,060 | 15,060 | 10,265 | ||
Receivables due from Manufacturers [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | 6,906 | 6,906 | 12,950 | ||
Accounts Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 1,116 | $ 1,116 | $ 550 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 360,936 | $ 360,913 | $ 954,207 | $ 901,858 |
Recognition of Deferred Revenue | (43,700) | (30,000) | ||
Revenue from Contracts with Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 346,038 | 345,264 | 918,207 | 865,350 |
Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,711 | 2,054 | 4,688 | 5,226 |
Service Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,553 | 24,808 | 77,215 | 68,013 |
Parts Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,788 | 64,609 | 181,928 | 166,923 |
Rental Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,898 | 15,649 | 36,000 | 36,508 |
Equipment Revenue [member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 245,986 | 253,793 | 654,376 | 625,188 |
Operating Segments [Member] | Agricultural Sector [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 214,073 | 209,697 | 533,538 | 503,526 |
Operating Segments [Member] | Agricultural Sector [Member] | Revenue from Contracts with Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 213,323 | 209,129 | 531,823 | 501,904 |
Operating Segments [Member] | Agricultural Sector [Member] | Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 835 | 791 | 2,248 | 2,061 |
Operating Segments [Member] | Agricultural Sector [Member] | Service Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18,885 | 16,758 | 51,869 | 46,554 |
Operating Segments [Member] | Agricultural Sector [Member] | Parts Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44,923 | 40,333 | 109,952 | 102,854 |
Operating Segments [Member] | Agricultural Sector [Member] | Rental Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 750 | 568 | 1,715 | 1,622 |
Operating Segments [Member] | Agricultural Sector [Member] | Equipment Revenue [member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 148,680 | 151,247 | 367,754 | 350,435 |
Operating Segments [Member] | Construction [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,031 | 76,994 | 232,813 | 215,560 |
Operating Segments [Member] | Construction [Member] | Revenue from Contracts with Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64,385 | 63,326 | 199,499 | 182,943 |
Operating Segments [Member] | Construction [Member] | Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 826 | 1,210 | 2,238 | 3,005 |
Operating Segments [Member] | Construction [Member] | Service Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,674 | 6,336 | 20,163 | 17,979 |
Operating Segments [Member] | Construction [Member] | Parts Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,586 | 12,449 | 39,356 | 36,363 |
Operating Segments [Member] | Construction [Member] | Rental Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,646 | 13,668 | 33,314 | 32,617 |
Operating Segments [Member] | Construction [Member] | Equipment Revenue [member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,299 | 43,331 | 137,742 | 125,596 |
Operating Segments [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,832 | 74,222 | 187,856 | 182,772 |
Operating Segments [Member] | International [Member] | Revenue from Contracts with Customers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,330 | 72,809 | 186,885 | 180,503 |
Operating Segments [Member] | International [Member] | Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 50 | 53 | 202 | 160 |
Operating Segments [Member] | International [Member] | Service Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,994 | 1,714 | 5,183 | 3,480 |
Operating Segments [Member] | International [Member] | Parts Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,279 | 11,827 | 32,620 | 27,706 |
Operating Segments [Member] | International [Member] | Rental Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 502 | 1,413 | 971 | 2,269 |
Operating Segments [Member] | International [Member] | Equipment Revenue [member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 54,007 | $ 59,215 | $ 148,880 | $ 149,157 |
REVENUE Unbilled Receivables (D
REVENUE Unbilled Receivables (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Unbilled Receivables [Abstract] | ||
Unbilled Receivables, Current | $ 18,744 | $ 11,222 |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $ 12,878 | $ 46,409 |
Deferred Revenue from Operating Leases and Rental Contracts [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 1,012 | 1,516 |
Deferred Revenue from Contracts with Customers [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $ 11,866 | $ 44,893 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Jan. 31, 2019 |
Inventory Disclosure [Abstract] | ||
New equipment | $ 417,681 | $ 258,081 |
Used equipment | 125,992 | 158,951 |
Parts and attachments | 78,651 | 72,760 |
Work in process | 1,891 | 1,299 |
Inventories | $ 624,215 | $ 491,091 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Mar. 01, 2019 | Jan. 31, 2019 | |
PROPERTY AND EQUIPMENT | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 500 | |||||
Other Asset Impairment Charges | $ 51 | $ 304 | $ 186 | 459 | ||
Property and equipment, gross | 295,218 | 295,218 | $ 278,876 | |||
Less accumulated depreciation | (147,128) | (147,128) | (139,926) | |||
Property and equipment, net | 148,090 | 148,090 | 138,950 | |||
Capitalized Computer Software, Net | $ 8,700 | |||||
Amortization | $ 1,400 | $ 3,700 | ||||
Earnings Per Share, Basic and Diluted | $ 0.05 | $ 0.13 | ||||
Rental fleet equipment | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | $ 115,361 | $ 115,361 | 111,164 | |||
Machinery and equipment | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | 22,434 | 22,434 | 21,646 | |||
Vehicles | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | 49,785 | 49,785 | 42,330 | |||
Furniture and fixtures | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | 41,360 | 41,360 | 40,645 | |||
Land, buildings, and leasehold improvements | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | 66,278 | 66,278 | 63,091 | |||
Construction [Member] | ||||||
PROPERTY AND EQUIPMENT | ||||||
Impairment of Long-Lived Assets to be Disposed of | 100 | 200 | ||||
Construction [Member] | Rental fleet equipment | ||||||
PROPERTY AND EQUIPMENT | ||||||
Property and equipment, gross | 115,361 | 115,361 | 111,164 | |||
Less accumulated depreciation | (47,557) | (47,557) | (50,399) | |||
Property and equipment, net | 67,804 | 67,804 | $ 60,765 | |||
International [Member] | ||||||
PROPERTY AND EQUIPMENT | ||||||
Impairment of Long-Lived Assets to be Disposed of | 200 | |||||
Agricultural Sector [Member] | ||||||
PROPERTY AND EQUIPMENT | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 300 | $ 300 | ||||
Operating Income (Loss) [Member] | ||||||
PROPERTY AND EQUIPMENT | ||||||
Net Income (Loss) Attributable to Parent | $ 1,100 | $ 2,800 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2019 | Jan. 31, 2019 | |
Goodwill [Line Items] | ||
Goodwill | $ 2,291 | $ 1,161 |
Goodwill, Acquired During Period | 1,198 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (68) | |
Agricultural Sector [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 949 | 250 |
Goodwill, Acquired During Period | 699 | |
International [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 1,342 | $ 911 |
Goodwill, Acquired During Period | 499 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ (68) |
LINES OF CREDIT _ FLOORPLAN P_3
LINES OF CREDIT / FLOORPLAN PAYABLE (Details) | 9 Months Ended | |||
Oct. 31, 2019USD ($) | Nov. 01, 2019USD ($) | Oct. 01, 2019USD ($) | Jan. 31, 2019USD ($) | |
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Floorplan Notes Payable | $ 445,726,000 | $ 273,756,000 | ||
Compensating Balance, Amount | 5,000,000 | |||
Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 660,000,000 | |||
Amount outstanding | $ 445,726,000 | $ 273,756,000 | ||
Floorplan Line of Credit | Non-US [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.90% | 0.90% | ||
Floorplan Line of Credit | Maximum [Member] | Non-US [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.90% | 8.50% | ||
Floorplan Notes Payable [Member] | U.S. | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.28% | 4.77% | ||
Floorplan Notes Payable [Member] | Maximum [Member] | U.S. | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.60% | 6.30% | ||
Non-Interest Bearing Floorplan Line of Credit [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Floorplan Notes Payable | $ 257,100,000 | $ 151,700,000 | ||
DLL Finance LLC [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Line of Credit Facility, Interest Rate During Period | 3.00% | |||
Line of Credit Facility, Interest Rate at Period End | 2.85% | |||
Wells Fargo Credit Facility [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | $ 140,000,000 | |||
CNH Industrial Capital Credit Facility | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 400,000,000 | $ 450,000,000 | ||
DLL Finance LLC [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 60,000,000 | $ 45,000,000 | ||
Other Affiliates [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Amount outstanding | 75,162,000 | 90,905,000 | ||
C N H Capital America L L C [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Amount outstanding | $ 245,121,000 | 120,319,000 | ||
DLL Finance LLC [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Line of Credit Facility, Covenant Compliance, Minimum Fixed Charge Coverage Ratio | 3.5 | |||
DLL Finance LLC [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Amount outstanding | $ 27,043,000 | 13,432,000 | ||
Wells Fargo Credit Facility [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Line of Credit Facility, Covenant Compliance, Minimum Fixed Charge Coverage Ratio | 1.1 | |||
Wells Fargo Bank National Association [Member] | Floorplan Line of Credit | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Amount outstanding | $ 98,400,000 | $ 49,100,000 | ||
Domestic Line of Credit [Member] | CNH Industrial Capital Credit Facility | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 310,000,000 | $ 360,000,000 | ||
Domestic Line of Credit [Member] | DLL Finance LLC [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 47,000,000 | |||
Foreign Line of Credit [Member] | DLL Finance LLC [Member] | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | 13,000,000 | |||
International [Member] | CNH Industrial Capital Credit Facility | ||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||
Maximum borrowing capacity | $ 90,000,000 |
SENIOR CONVERTIBLE NOTES (Detai
SENIOR CONVERTIBLE NOTES (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | May 01, 2019 | Jan. 31, 2019 |
Convertible Notes | |||
SENIOR CONVERTIBLE NOTES | |||
Debt Instrument, Face Amount | $ 0 | $ 45,600 | $ 45,644 |
SENIOR CONVERTIBLE NOTES (Det_2
SENIOR CONVERTIBLE NOTES (Details 2) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | May 01, 2019USD ($) | Jan. 31, 2019USD ($) | |
SENIOR CONVERTIBLE NOTES | ||||||
Repayments of Convertible Debt | $ 45,644 | $ 20,025 | ||||
Convertible notes | ||||||
Gain (Loss) on Extinguishment of Debt | 0 | (615) | ||||
Coupon interest expense | $ 955 | $ 1,617 | 3,562 | 6,137 | ||
Convertible Notes | ||||||
Convertible notes | ||||||
Principal value | 0 | 0 | $ 45,600 | $ 45,644 | ||
Unamortized debt discount | 0 | 0 | (350) | |||
Unamortized debt issuance costs | 0 | 0 | (45) | |||
Carrying value of senior convertible notes | 0 | 0 | 45,249 | |||
Carrying value of equity component, net of deferred taxes | 0 | $ 0 | $ 14,923 | |||
Conversion rate | 0.0231626 | |||||
Amortization of debt discount | 0 | 356 | $ 350 | 1,271 | ||
Amortization of transaction costs | 0 | 47 | 45 | 169 | ||
Interest Expense | $ 0 | $ 831 | $ 816 | $ 3,019 | ||
Effective interest rate (as a percent) | 7.30% | 7.30% | 7.30% | 7.30% | ||
Coupon interest expense | $ 0 | $ 428 | $ 421 | $ 1,579 |
LONG TERM DEBT (Details)
LONG TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
Debt Instrument [Line Items] | |||
Notes and Loans, Noncurrent | $ 35,754 | $ 20,676 | $ 20,676 |
Current maturities of long-term debt | 13,280 | $ 2,067 | 2,067 |
Notes and Loans Payable | 49,034 | 22,743 | |
Line of Credit, Current | 10,000 | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | 18,093 | 19,010 | |
Real Estate Loan [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | 6,827 | ||
Commercial Loan [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | 6,369 | ||
Loans and Finance Receivables [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | 4,465 | ||
Working Capital Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | 2,549 | 2,978 | |
Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Notes and Loans Payable | $ 731 | $ 755 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details 1) $ in Thousands | Jan. 31, 2019USD ($) |
Foreign currency contracts | Not designated as hedging instruments | Cash Flow Hedges | |
DERIVATIVE INSTRUMENTS | |
Notional amount outstanding | $ 14,055 |
DERIVATIVE INSTRUMENTS DERIVATE
DERIVATIVE INSTRUMENTS DERIVATE INSTRUMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Foreign currency contracts | Not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Income | $ (3) | $ 634 | $ 365 | $ 1,757 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Other Comprehensive Income [Abstract] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (7,460) | $ (4,810) | $ (5,822) | $ (4,331) | $ (4,518) | $ (3,110) | $ (5,051) | $ (4,411) |
Derivatives used in Net Investment Hedge, Net of Tax | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (4,749) | (2,099) | (3,111) | (1,620) | (1,807) | (399) | $ (2,340) | $ (1,700) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (2,650) | 1,012 | (771) | 187 | (1,408) | 1,301 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ (2,650) | $ 1,012 | $ (771) | $ 187 | $ (1,408) | $ 1,301 |
LEASES Lease Expense (Details)
LEASES Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | $ 373 | $ 1,080 |
Finance Lease, Interest Expense | 143 | 421 |
Operating Lease, Cost | 4,613 | 14,154 |
Short-term Lease, Cost | 41 | 201 |
Variable Lease, Cost | 689 | 2,024 |
Sublease Income | (146) | (468) |
Lease, Cost | $ 5,713 | $ 17,412 |
LEASES ROU Assets and Lease Lia
LEASES ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 92,124 | $ 100,469 | |
Finance Lease, Right-of-Use Asset | 6,354 | ||
Lessee, Right-Of-Use Asset | 98,478 | ||
Operating Lease, Liability, Current | 12,002 | $ 12,266 | $ 0 |
Finance Lease, Liability, Current | 1,640 | ||
Operating Lease, Liability, Noncurrent | 90,063 | ||
Finance Lease, Liability, Noncurrent | 4,267 | ||
Lessee, Lease Liability | $ 107,972 |
LEASES Maturities of Lease Liab
LEASES Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Oct. 31, 2019 | Feb. 01, 2019 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 20,117 | $ 4,555 | |
Capital Leases, Future Minimum Payments, Remainder of Fiscal Year | 1,933 | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 543 | ||
Lessee, Liability, Payments, Remainder of Fiscal Year | 5,098 | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 17,512 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 2,071 | ||
Lessee, Liability, Payments, Due Next Twelve Months | 19,583 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 18,786 | 16,675 | |
Capital Leases, Future Minimum Payments Due in Two Years | 1,831 | ||
Finance Lease, Liability, Payments, Due Year Two | 1,754 | ||
Lessee, Liability, Payments, Due Year Two | 18,429 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 17,994 | 15,615 | |
Capital Leases, Future Minimum Payments Due in Three Years | 1,524 | ||
Finance Lease, Liability, Payments, Due Year Three | 1,108 | ||
Lessee, Liability, Payments, Due Year Three | 16,724 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 17,117 | 14,713 | |
Capital Leases, Future Minimum Payments Due in Four Years | 882 | ||
Finance Lease, Liability, Payments, Due Year Four | 380 | ||
Lessee, Liability, Payments, Due Year Four | 15,093 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 16,143 | 13,587 | |
Capital Leases, Future Minimum Payments Due in Five Years | 342 | ||
Finance Lease, Liability, Payments, Due Year Five | 342 | ||
Lessee, Liability, Payments, Due Year Five | 13,929 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 68,409 | 47,171 | |
Finance Lease, Liability, Payments, Due after Year Five | 1,416 | ||
Lessee, Liability, Payments, Due After Year Five | 48,585 | ||
Lessee, Operating Lease, Liability, Payments, Due | 129,828 | ||
Finance Lease, Liability, Payment, Due | 7,614 | ||
Lessee, Liability, Payments, Due | 137,441 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 27,763 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 1,707 | ||
Lessee, Liability, Undiscounted Excess Amount | 29,470 | ||
Operating Lease, Liability | 102,065 | $ 98,250 | |
Finance Lease, Liability | 5,907 | ||
Present Value of Lease Liabilities | $ 107,971 | ||
Capital Leases, Future Minimum Payments Due Thereafter | 1,701 | ||
Operating Leases, Future Minimum Payments Due | 158,566 | ||
Capital Leases, Future Minimum Payments Due | 8,213 | ||
Interest Expense, Lessee, Assets under Capital Lease | 1,804 | ||
Present Value Of Minimum Lease Payments, Capital Leases, Thereafter | $ 6,409 |
LEASES Weighted Average Lease T
LEASES Weighted Average Lease Terms (Details) | Oct. 31, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 2 months |
Finance Lease, Weighted Average Remaining Lease Term | 5 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 6.10% |
Finance Lease, Weighted Average Discount Rate, Percent | 10.30% |
LEASES Other Lease Information
LEASES Other Lease Information (Details) $ in Thousands | 9 Months Ended |
Oct. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ 13,923 |
Finance Lease, Interest Payment on Liability | 421 |
Finance Lease, Principal Payments | 1,374 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,073 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 709 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) $ in Millions | Jan. 31, 2019USD ($) |
Fair Value, Inputs, Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Carrying Value of Long-Lived Assets Analyzed for Impairment | $ 0.9 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | ||||
Income (Loss) Before Income Taxes | $ 12,409 | $ 12,770 | $ 19,321 | $ 18,396 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective tax rate (as a percent) | (33.80%) | (15.60%) | (31.30%) | (22.00%) |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 01, 2019 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 8,800,000 | $ 19,200,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 1,973,000 | 1,944,000 | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,198,000 | 924,000 | |
Cash Acquired from Acquisition | 0 | 3,857,000 | |
Purchase Obligation | 2,100,000 | ||
Business Combination, Acquired Receivable, Fair Value | 440,000 | 5,340,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 6,466,000 | 21,725,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 887,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,675,000 | 3,512,000 | |
Goodwill, Acquired During Period | 1,198,000 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (68,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 61,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 11,752,000 | 38,250,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 1,553,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 13,820,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | $ 7,400,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 85,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1,279,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 1,725,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 632,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 19,094,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 19,156,000 | ||
Agricultural Sector [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 699,000 | ||
Goodwill, Acquired During Period | 699,000 | ||
International [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 3,000,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 499,000 | 924,000 | |
Goodwill, Acquired During Period | 499,000 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (68,000) | ||
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 200,000 | 100,000 | |
Other Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 100,000 | ||
Distribution Rights [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,600,000 | $ 1,800,000 |
SEGMENT INFORMATION AND OPERA_3
SEGMENT INFORMATION AND OPERATING RESULTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 31, 2019 | |
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | $ 360,936 | $ 360,913 | $ 954,207 | $ 901,858 | |
Income (Loss) Before Income Taxes | 12,409 | 12,770 | 19,321 | 18,396 | |
Total Assets | 1,029,524 | 1,029,524 | $ 792,438 | ||
Shared Resources | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | (258) | (363) | (1,233) | (1,732) | |
Total Assets | 69,772 | 69,772 | 78,766 | ||
Operating Segments | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | 12,667 | 13,133 | 20,554 | 20,128 | |
Total Assets | 959,752 | 959,752 | 713,672 | ||
Operating Segments | Agricultural Sector [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 214,073 | 209,697 | 533,538 | 503,526 | |
Income (Loss) Before Income Taxes | 10,259 | 9,383 | 18,312 | 15,666 | |
Total Assets | 462,881 | 462,881 | 316,224 | ||
Operating Segments | Construction | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 78,031 | 76,994 | 232,813 | 215,560 | |
Income (Loss) Before Income Taxes | 347 | 1,154 | (541) | (1,773) | |
Total Assets | 297,703 | 297,703 | 227,261 | ||
Operating Segments | International [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 68,832 | 74,222 | |||
Income (Loss) Before Income Taxes | 2,061 | 2,596 | |||
Operating Segments | International [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 68,832 | $ 74,222 | 187,856 | 182,772 | |
Income (Loss) Before Income Taxes | 2,783 | $ 6,235 | |||
Total Assets | $ 199,168 | $ 199,168 | $ 170,187 |
IMMATERIAL RESTATEMENT (Details
IMMATERIAL RESTATEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Gross Profit | $ 71,774 | $ 69,542 | $ 189,700 | $ 176,001 |
Revenues | 360,936 | 360,913 | 954,207 | 901,858 |
Cost of Revenue | 289,162 | 291,371 | 764,507 | 725,857 |
Other Cost of Operating Revenue | 10,894 | 12,429 | 27,612 | 29,762 |
Cost of Service | 8,950 | 7,756 | 25,170 | 21,918 |
Cost of Parts Sold | 49,834 | 45,666 | 128,380 | 118,254 |
Cost of Equipment Sold | 219,484 | 225,520 | 583,345 | 555,923 |
Sales Revenue Rental and Other | 16,609 | 17,703 | 40,688 | 41,734 |
Sales Revenue Service | 27,553 | 24,808 | 77,215 | 68,013 |
Sales Revenue Parts | 70,788 | 64,609 | 181,928 | 166,923 |
Sales Revenue Equipment | 245,986 | 253,793 | 654,376 | 625,188 |
Equipment Revenue, Previously Reported | 241,198 | 590,823 | ||
Parts Revenue, Previously Reported | 70,118 | 181,651 | ||
Service Revenue, Previously Reported | 33,560 | 92,187 | ||
Other Revenue, Previously Reported | 18,773 | 44,558 | ||
Revenue, Previously Reported | 363,649 | 909,219 | ||
Equipment Cost of Sales, Previously Reported | 218,204 | 534,443 | ||
Parts Cost of Sales, Previously Reported | 49,481 | 128,683 | ||
Service Cost of Sales, Previously Reported | 11,841 | 34,475 | ||
Other Cost of Sales, Previously Reported | 14,581 | 35,617 | ||
Cost of Sales, Previously Reported | 294,107 | 733,218 | ||
Gross Profit, Previously Reported | 69,542 | 176,001 | ||
Cost of Sales [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (2,736) | (7,361) | ||
Revenue Benchmark [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (2,736) | (7,361) | ||
Service Cost of Sales [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (4,085) | (12,557) | ||
Other Revenue [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (1,070) | (2,824) | ||
Revenues | 1,711 | 2,054 | 4,688 | 5,226 |
Cost of Sales, Other [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (2,152) | (5,855) | ||
Service Cost of Sales [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (3,815) | (10,429) | ||
Equipment Cost of Sales [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 7,316 | 21,480 | ||
Other Revenue [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (8,752) | (24,174) | ||
Revenues | 27,553 | 24,808 | 77,215 | 68,013 |
Equipment Revenue [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | 12,595 | 34,365 | ||
Revenues | 245,986 | 253,793 | 654,376 | 625,188 |
Service Revenue [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Quantifying Misstatement in Current Year Financial Statements, Amount | (5,509) | (14,728) | ||
Revenues | $ 70,788 | $ 64,609 | $ 181,928 | $ 166,923 |