TITN - Earnings call transcript Q3 2019

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Operator

Greetings and welcome to the Titan Machinery Third Quarter Fiscal 2019 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to introduce your host, John Mills of ICR. sir. ahead, go Please

John Mills

Good Machinery and earnings third Kevin. to conference and the Titan quarter morning, you. gentlemen, ladies welcome call. Thank fiscal XXXX

Time. Meyer, X:XX release Officer; XXXX, this call and everyone Financial October should the today XX, to the which AM fiscal now, are On morning the third access earnings ended from Officer. By out Chief the at Mark and David Executive Eastern have Kalvoda, for approximately Chief went company Chairman quarter

have the of on website is received you the the as Investor replay at call company’s available If it is on well. a not release, This be and Relations Titan’s being available website will page webcast ir.titanmachinery.com.

we are a addition, accompany providing today’s to In presentation prepared remarks.

by The at now webcast Titan's You page. below of the the going presentation in directly may ir.titanmachinery.com. the middle information the presentation website is to access

required XX-K. involve including risk the on You and statements statements in may those statements Harbor statements. Factors any cause like be materially to the obligation Titan undue These statements detailed results discussion could or risks projected based Except We therefore by them. do today’s to that These any would Safe will forward-looking management of assumes law, Titan’s remarks from of your call. update and future most current no of more inherent section in made in a Report see those uncertainties, applicable and to Form not we’ll forward-looking the These ongoing and factors these more expectations Annual particularly our financial not forward-looking be transparency financial everyone release actual upon and call, identified on can prepared on when in as the additional maybe comparing that performance differ are presentation, an questions. forward-looking statement. in basis. on adjusted of may financial from the non-GAAP including make contain remind note Titan’s period-to-period. slide adjusted greater a to complete We discuss today’s Risk response X analysis forward-looking reliance believe guarantee placed that underlying measures, results results during measures should the filed that recently factors management Please statements facilitate performance, contain

We our included release. the their today’s The financial these reconciliations directly call GAAP at of approximately And prepared have your financial last will we XX non-GAAP will most remarks, open questions. in conclusion to measures of minutes. call the comparable measures to take

Mr. to Chairman Meyer. like Go CEO, introduce ahead, company’s the David and David. Now, I'd

David Meyer

morning, provide earnings everyone. will overview reviewing XXXX. for our you, summary updated third results fiscal then XXXX third financial quarter Thank today's John. fiscal Good each of business and assumptions conclude Welcome a call, On call. modeling segments. I’ll and results then XXXX our the review quarter to for our of for of our Mark an of conference fiscal by

overview turn you quarter to see will third you financial results. slide of an If our X,

$X.XX. of pretax was We're leverage the adjusted diluted segments and pleased generating million and per revenue third Our of million, revenue business. quarter earnings our all adjusted share are income $XXX across in with growth with we $XX.X operating

revenue industry increase position the we've are is challenges. across results our the efforts couple continued quarter third the years our of for in made agriculture The segments. over of all given past Our indicative encouraging, profitability to improved business segment

with increases operating helping inventory drive Our in profitability. position is combined margins, in expenses, improved generating lower improvements which is equipment our

growth segments, these and of prior period. improvements diluted year adjusted earnings the revenue result As in grew significantly a share per all over

On operating additional fiscal our range business. XXXX assumptions across such to of segment. earnings our are segments, is of by On continue agriculture to provide and I’ll productive fourth our a and our we for soybeans we consisting an experienced Given to to modeling segments for to thank see sales international low raising quarter, parts you commodity the Growers is a an harvest of and of a in $X.XX. have to conditions. these consolidation. $X.XX tractors. through our has harvest abnormally footprint been wet my some three our construction least, agriculture per spell, now current beginning years teams, in which and very the this results in overall warm domestic has and markers and our the to of average Northern diluted combines expectations seen they domestic rate factor field as most prices October not number the overview impacted a year adjusted our it for to are say service challenging I share and progress growers What ag the detail our To segment. customers and difficult of been an the a fall of fall level crop X importance Due and average farm A our slide on our are trailing un-harvested footprint. X all reliable XX today note, continue support increased harvest above -- farm big yields to average. on across positive be to

reflected commodity customers’ the USDA announced and on advantage impact our The Some support of Duty on main the margins. hedging of drivers Year-end benefit and will tariffs The fourth early grower for continue tax programs growers tax replacement with took are continue and the offsetting be sales. be results funding some their planning. fleets marketing opportunities. is bill cycles to prices. technology customers demand to repair increased equipment will our of new being previously lengthen Inventory year quarter levels the to volume, and the crop continued improved tax hours, equipment. our or update will age in looking improving, existing

equipment customers in focus on inspection parts to offseason keep fleets but We condition. which value program, only that produces revenues, and to uptime tremendous not continue our service top brings our

as segment. you'll depressed positively commodity equipment businesses. used to coastal economy continues are well domestic construction rural Turning business major impact seeing the equipment of prices, markets volatility areas negatively crude oil in see strong equipment the levels related are oil Despite The slide prices, related improved. inventory more construction prevalent the by is by Industry a X, growth to construction in impacted pickup metros an industry. and construction purchases as Industry we're and from our overview being farmers and ag other oil as new infrastructure. much affecting in

strong seeing efforts uptime the product program improved we’re offseason on segment, increased additional are fleet similarly to inspection from provide rental driving service and focus to a revenues. usage revenues ag is resulting and We support and machine increased our parts utilization, rationalization putting

results in for Our third fiscal kept in second and quarter top including line slide have international performance us our On XXXX. segment, on X, year-over-year of our have half bottom the we an construction of track of more markets segment overview crop The The Northern growing due Romania, and Serbia through prevalent conditions Europe, season within Ukraine. during our Bulgaria, countries including was drought the average best the rainy Germany, Germany. season. the was grain to improved drought

much stable western season our climate than for With grain credit crops the exception on of to Germany, with The the summary due conflict Ukraine, regions located The of of in countries far our crops in of and business facilities in conflict. the better in is Donetsk equipment the Eastern distance concentrated our customers’ footprint European Russian-Ukrainian available are rains. been Far Ukraine. purchases, timely increasingly and central late the retail were regions the from The and Luhansk. particularly a has Crimea

the have Ukraine. region. been There opportunities arising highly long-term mitigate financial from tensions We potential recent Eastern agricultural risks continue sizable of in geopolitical the in farms, to this reflecting global productive in investment European announcements

Our opportunities we in excited being integrated into the four the future AGRAM Germany in store successfully German of market. acquisition organization about our and are is

equipment Europe As we on we of to parts aftermarket to of and to our continues line. solid the a contributor continue support in growing increase be focus our bottom business. parts product area service, Europe,

Before a United call o very our quarter. line top report and bottom I I in it want and third turn great and to customers thank States over improved and to successful employees results all Europe for the Mark, is

Titan continues additional locations. balance equipment to Our bring are position to a as excellent for sheet US is an succession farm on Machinery be dealers solution, strong looking in

Kalvoda to Now, review more I’ll the call our to detail. financial Mark results in turn over

Mark Kalvoda

David. Thanks,

slide an increase million, to in businesses of up year. in to of each $XXX our was revenue third of Turning XX.X% last X, the total compared revenue generating quarter,

the revenues stores addition were Our of increase and equipment by AGRAM revenue was and across segments, driven within primarily by Parts our our segment. current aided X.X%, up quarter. the in X.X% all agriculture service

were X%, between our up high growth of our AGRAM, continued still and area parts in service demonstrating Excluding this business. business margin X%

due to Our X.X% in rental inventory of the and level increased revenue rental. higher a third quarter, other

year, last the primarily the to profit to $XX despite versus slide in margins. our fleet current equipment current of higher Our XX.X% year. to period to margins same basis designated prior shift for and higher On an last improved revenues compared XX compared XX% a higher quarter. of of for segment dollar our rental was increased in revenues in to driven mix the gross margin our gross quarter, profit the XX.X% utilization by quarter increase our of also construction the The the period equipment improved XX.X% equipment a points same by million year X, revenue

position. our Our stable equipment pricing margins and continue to inventory benefit from improved equipment

fiscal XXXX, million to the levels primarily for expenses equipment a increased result $XX profit. Our gross of operating variable expenses of $X.X as due increased as quarter million such third by to increased commissions of

we quarter, quarter leaner, due also quarter operating operating Despite structure. current of increases, efficient during to these to able Our leverage our includes operating a from achieve expenses our the AGRAM more full acquisition. were

quarter improved the a same expenses in percentage last in to operating quarter of year. revenue, XX.X% to XX.X% third compared the As

of XX% year. compared XXXX quarter from year. million recognized $X debt to and decreased plan to This our year. reduction the other senior expense fiscal was $X.X interest the $X.X earlier on fiscal this For in charges, our quarter $XXX,XXX this decrease of essentially interest $XX million third last repurchase due last million last in the fiscal quarter of completed the we notes, third compared impairment to a period the restructuring same expense in XXXX Floorplan same quarter Recall to of third that resulting we and in convertible in primarily approximately XXXX, million year. the restructuring in

million our million $XX income third third the net prior compared to the In compared of was fiscal EBITDA of to fiscal to of adjusted year. XXXX, $X.X improved quarter $XX.X in million quarter the the $XX.X million third last in For adjusted year. quarter XXXX,

Our effective was tax rate for XX.X%. the quarter

quarter a in the tax effective our of strategies. rate favorable impact minutes. positive as our income various I’ll of remainder tax the benefited color for certain from expectations from mix tax on in as discrete planning jurisdictions This well more certain items, a provide year few the

to compared quarter of in $X.XX was share diluted per $X.XX the earnings adjusted Our last year. third

You results an you EPS the of adjusted fiscal a net reconciliation slide million, EBITDA, of can of revenues adjusted will income find slide overview for increase appendix Agriculture our presentation. see segment and to adjusted $XXX an the X, diluted third XXXX. XX%. were the quarter of in On

equipment industry customer was earlier, improved revenue parts service supported well as mentioned ag David by as despite conditions demand, As performance. difficult replacement and

income and Our of pretax in income equipment compared achieved of $X.X in year result million of $X.X prior segment the was the increased adjusted ag primarily ag revenues segment pretax The improvement our adjusted profitability million margins. to period. adjusted

was construction to same the increase X% our period revenue $XX last to compared was our of segment, million, year. which an Turning

which of loss compared $XXX,XXX Our of was the compared an our The The last period offset fiscal was adjusted of million, of year-over-year XXXX, our against improvement was revenues revenue segment increase in over equipment in pretax for quarter In as to segment pretax the third revenue increased markets, international $XX up was fiscal our comparison was the primarily by partially revenue which X.X% third which $XXX,XXX results faced difficult in an quarter in XX%. early well to revenue a segment reduced increase the in expense. third impact XXXX. our certain the fiscal driven from interest lower were income AGRAM by XXXX, result as of increased the The other quarter European acquisition, quarter same revenue of year. same adjusted AGRAM last of of year. floorplan completed construction was

million last adjusted same was to the Our $X.X international compared $X.X segment pretax quarter income year. million, in

fiscal for nine service XX, first slide our year. quarter results nine by months contrast plan. months you third and to particular revenue and impacted Turning XXXX our fiscal fiscal In our our our restructuring in the of revenue see closings to with for was XXXX first revenue store our results, associated the parts of

XXXX, fiscal the year. closed compared of to period XX increased same decreased we first revenue the count, our the agriculture store last During half stores. X.X% Despite total

$XXX for same to months XX, X.X% the our million, was last first Turning gross the a nine year. increase slide to period compared profit

for margin XX profit improvement to nine increased equipment increased fiscal year-over-year basis in points gross due by the We of Our realized margin. gross profit XXXX. to first months an XX.X% margin

Our operating $XXX.X the expenses for year-to-date declined by plan. X.X% period $X.X from to million, cost or million restructuring due last year's savings to

the million decreased last XX.X% to nine decrease revenue, impairment as of months points in Restructuring to as expense to XXXX XXX in year. bearing repurchases of expenses lower XX.X% first nine basis fiscal and the months same notes. inventory savings XXXX, months XXXX the million and higher interest our of interest expense in to of nine nine $X.X in other months, senior with reflecting XXXX. in compared XX.X% last were compared year, the $XX.X first reflecting the operating our our resulting decreased months percentage fiscal a for first or well leveraging As million of same average compared fiscal first from a of convertible $XXX,XXX first the revenues in coupled $XX.X our Floorplan to the period period the cost structure interest fiscal charges nine of

improvement diluted nine XXXX the result diluted for of primarily million agriculture same of adjusted higher fiscal compared equipment margins our growth the that months provide in our $X.XX $X.XX the period. strengthening revenue On made first compared the volumes overview overall an our slide of international adjusted with combined the share $XX.X we've $XXX,XXX nine we was XX, share was and Our our progress our the first in to for and pretax corresponding month segment you in income fiscal period. period XX, operating months on year. expenses to as is floorplan last slide improvement for see adjusted the year This lower expense absorption XXXX of On adjusted segment well of prior loss an per structure nine in rate. per our earnings in as segment. in will a Overall, loss pretax sales

parts, is metric service gross recall, rental reflects fixed cover a As absorption you costs. of and operating profits that the ability to

significantly by to during XX%. expenses us cycle increased months the this same level increase. We approximately operating from have recover our Operating times, or into XX, October at annual revenues $XX while the of XX% And the conditions trough from us when million XX reduced expense ended the ag positions our expenses operating XX%. rate to to fiscal to challenging absorption XXXX industry over XXXX be our enabling period, trailing time leverage and profitable

last parts in quarter absorption of compared the third XXXX period to fiscal Our for XX% to improved to the XX% in the same our service businesses. strength year, rate due and

We overview an XX, fiscal of highlights third XXXX. million October Turning cash XX, the had of sheet of provide of our end quarter we $XX the as XXXX. at to slide balance of

at third of partially was $XX quarter reflecting from new increase million by the used Our decrease in a equipment, a an of XXXX, $XXX million the January end million, $XX offset $XX equipment. XX, increase million equipment inventory in

third equipment comparable times. versus terms turns quarter X.X were Our at inventory year the flat prior period

year, the years. end inventory equipment compared and we the inventory excluding our with this the our past our is level the in when chart slide to the acquisition. and from in turns prior Our to with quarter associated year levels expect should reduction five further fourth as flat deck appendix inventory AGRAM quarter for sequentially equipment Included reduced inventory and relatively prior

compared XXXX. the assets decreased of quarter the to end third million end $XXX $XXX to of million the rental Our quarter fourth fleet at fiscal of the at

to and quarter. We improving rates the current of some have have size our success seen reduced fleet focus on our the utilization in

We discretionary XXXX. XX, million on to million of around finish expect fiscal of as our size total of $XXX fleet as October had XXX XXXX. we payables decrease credit to lines We of million, floorplan outstanding floorplan $XXX

equipment We credit lines have continue to in capacity our handle finance ample to needs. our

X.X. outstanding tangible liabilities convertible of is current ratio notes $XX total our Our million. balance healthy net at remains a The worth’s, to senior

We ability to XXXX. our XXXX reported million our fiscal senior balance approximately nine months fully May $XXX our XX due Slide are flows million. of satisfy remaining activities the provided by for of GAAP $XXX face from notes The XX% our cash. was flow cash these maturity. the of notes an the notes and million we or The operating of first at X, provides period activities $XX have convertible with $XX overview million retired for of original operating on convertible cash in are in confident value

of include of financing, including flow used cash all part plan non-manufacture equipment floor activity. we adjusted our activities, for As operating inventory

nine Our adjustment of plan $XX for was fiscal XXXX. the non-manufacturer first payables million for floor months

period $X AGRAM We decreased reflect the period which in in our XXXX us inventory adjustments, nine-month our to acquisition. use in year. enables all equity XX, our flow to October period for floor we evaluate increased cash equipment and reduce $XX drew our equity decisions. equipment XX, inventory by to plan provided After used flows, We compared operating October million our our period debt, in flow during XXXX last million cash for ended lines to our adjusted for in activities nine-month the XX the month ended was as also an XX.X% our represents the changes The operating same XX, and inventory inventory ended a nine fund equipment the adjusted October equipment activities. of cash financing during reduced exclusive the equity constant operating to adjustment cash equipment flow to million XXXX inventory,

equipment XXXX modeling our as fourth in Slide inventories. expect updated generate cash annual XX We we assumptions. quarter, shows reduce to further the fiscal

agriculture constant revenue acquisition, third to the X to AGRAM that X%, X growth Recall segment includes from with up the quarter our closed to assumptions international all the leaving up XX% which for X% revenue contribution and range in construction international XXXX. up early of fiscal XX%. You're

see margins, our to our equipment segment. particularly ag continue strength in We in

the the domestic the tax We Earlier be in indicated adjusted effective annual are new and range our income of of to I law of which now our changing valuation the included of these equipment Variances tax prior to well regarding with to estimated our range tax year mix XX%, of among country the allowances some loss versus the jurisdictions, diluted that EPS full within segment. range margins can mix our in international in forecasting for income effective X.X%. an and X.X% tax by within foreign we or of in as X.X% various have assumptions expectations losses particularly when as jurisdictions. included rate income year, rate X.X% and occur

is This the a than we what to allowances effective more there expecting impact full that will tax valuation tax these variables, percentage XX%. rate rate effective expect lower of would future our fewer Now anticipate points we visibility are as we approximately year rate. a is few into

tax adjusted ready of our of to we margins, to anticipated diluted $X.XX earnings $X.XX of previous we equipment $X.XX. session the XXXX $X.XX are lower raising question-and-answer the to expectations Given call. the rate in fiscal range our Operator, range and improvement now effective per for are for a from share

Operator

[Operator from Our Craig-Hallum. coming question first Steve is Instructions] from Dyer

Ryan Sigdahl

Ryan Steve Sigdahl Dyer. for on

that a think on prices, farmers low now the going demand demand down are et soybean some there normal uncertainty, replacement the you occurring, cetera. helping and segment. is You it's trade right corn but of hunkering Do with mentioned ag replacement or

David Meyer

mean, growers the at getting reliability and so look is is late hours in that is purchase getting down, and business field, peak and during sold. importance keep decide updated replacement age are that, keeping. but don't it's They we're it you usage, uptime going those model since they’re our that definitely we're harvest [indiscernible] make to machinery that getting want But They of if hunkering the say XXXX, the some on if age, this the demand season season, equipment they parts whether the need also on in planting they their and hour are decisions, or Yeah. to of the especially get I higher it's really, the and then equipment. new a to piece service top with some really there And shape, when used.

Ryan Sigdahl

or that demand of ages X lows that? differently on kind a is to just that XXXX, offsetting the a replacement year of so is follow trend is it, that, or at down stable Maybe now said fleets up that, is point continuing or since call where

David Meyer

the I hours maybe flat would comment same bit but getting too not It's It's say that or plateau in all have lowest the more more and some equipment. longer. from improving. extending age depreciation their It's And the the is longer. the that a ever on and length they’ve a fleet, fleet more of depreciation it's with to little growers accelerated one on levels the of standpoint, depreciation typically been. they're basis at like some

as So their from a their tax tax get advice the much in standpoint to from is have people banks fleet depreciation their they and try and basis as possible. to

So, equipment factor that's for another purchase. motivating that

Ryan Sigdahl

construction, you recent talking declines any gears to November impact have in October from and here? mainly the oil Switching seen

David Meyer

infrastructure building oil wells [indiscernible] it's roads, out built, going -- the You know, in it's There's going and some it’s -- to has and fracking infrastructure it's just we're the the going the there's volatility, support Dakota on. but behind well the some been got we is are that then the there's in, in there only in but going area. communities, themselves, pipelines that them, not new the -- infrastructure in some of the -- refineries still North is western there seeing but

for in markets. improved been in we to oil prices. see us those business, though volatility So there even continue some the has some It's

Ryan Sigdahl

at improvement me weeds a much low kind being mean X% raised. the improving you kind then do of without here year, the or Last at for normal margins in one there's steadily been are hop that queue. guidance of next back in have think range? too level getting Equipment I continued I'll for and room we for with

Mark Kalvoda

averages about, of the maybe Yeah. historical our it's bit go so back that, it, if X.XX think, little I around of look you We've at of right our north those, around and nearing talked midpoint guidance there, is a that here kind X.X%, now. we're

there's of but here. to I level think the we've some that certainly improvement for some So not year-over-year -- there, level level experienced

averages we're think historical those I reaching there. So

Operator

from question Robert is from Dobre coming next Baird. W. Mig Our

Unidentified Analyst

[indiscernible] It’s on there. growth maybe Mig growth was forward? corner a second this of turned are What for a of This nice parts of in outlook service, like morning. kind the row going drivers in we’ve and rates looks the and the quarter in the improvement what’s

Mark Kalvoda

happy, quarter, Part X.X% Yeah. that We were up is still parts for X% up addition but that’s the in growth around and despite there AGRAM to that X%. so X.X, service respectively. there that of of the in

As that's David that providing certainly continues opportunity going to I on earlier, opportunity that for service be fleet mentioned us that's here far forward, that. think that more aging there parts something some as and some

in we and ballpark service know. probably what that bit than but expect, That's focus Also X%, has Certainly, to service we that as stronger just the with good here structure little team, a forward, parts had there well on there. there our and we’ve new parts over that and less with heavy mature maximize and a is you expert is X% kind businesses as think the as some over business continue opportunity opportunities a had business we there. of parts growth. for I service it's move international our the

Unidentified Analyst

SG&A. were run like And uptick unusual or drivers rate you new this drivers some of a quarter? the going in perhaps talked Is the in maybe the there about forward

Mark Kalvoda

Anytime commissions profit, to you ride those have equipment expenses of some of that. are gross up going higher as with a variable the level such

over and year, I that don't think talking that's I think think I we've changed. million for just the XXX been

I think we're level. still around that

QX gross here, certainly that of QX, of with a of because operating level expect profit. higher we and So higher equipment contribution little expenses

Unidentified Analyst

can one If more one. quick in I sneak maybe

the end much being outlook sort mentioned inventory ex AGRAM? AGRAM. from coming year, for prior You at inventory year of versus of flattish is the How

Mark Kalvoda

think, million, acquisition shy is XX in the just think of right I right I inventory XX AGRAM million. around around, maybe

Operator

William De Instructions] coming Blair. next [Operator Our is from Larry question from Maria

Larry De Maria

You hours David, are can in discussed that to and equipment to average put guys where level of farmers obviously maybe us on numbers, your now give this going replacement some willing replacement or maybe the and they you’ve a demand, put the are you on sense customers of the that that's need? now around

David Meyer

look this, that that well, I there's are at that buy historically, there let’s XX% farmers this segment, that new out break XX% probably from comes equipment. Well, -- an if of

that a for combines to get replaced. on all the they'd once old, I have example, to them, years X like X historically those For be to combine, hours XXXX those day seems be mean years and I that a talked X and has that the approaching to a grower he hours old solid, been them. been very who combines financially were buyer, had other XXXX day new longtime on

precision, the are really in way a purchases. life equipment on couple So to technology lot situations are combines Then that some the coupled from the -- equipment, of them similar than out what standpoint. they there where really new you of farther these put that those reliability out comfortable a and the see context with age the and in newer of feel newer some so that’s higher hours these driving is some that of some of there, the of the in on of some hours

Larry De Maria

for the greatest? or combines Is same it more tractors

David Meyer

Yeah.

self-propelled amount upgrade of horse fuel technology, a a and to they $XXXX they’re tremendous higher again And need as we the the forward efficiency, same, $XXXX, but the X drives. the want combine into that. old, you sprayers or fairly powers, technology tractors approaching don’t then some the of that run newer some of same think they is little bit start something years I updated, then way, definitely

those So driving purchases. again,

Larry De Maria

maybe where better to talking technology, are I are mix give you leading other some mean, revenue can opportunities getting [indiscernible], same and technology, you mentioned Is the about? you of that customers that Now further for around are of companies the upgrading better maybe some level you? but examples

David Meyer

Well, had we've a the auto systems while. for guidance

seeing tractors two combines and mainstream in or themselves. we're these become -- So, pretty the

side, planner you harvest the have the So, speed combine the capabilities. the with on speeds you've high got on front, variable the command combine got precision planners, prescription automation,

[indiscernible] that’s soil KSIH, the industry leading is there applications. from AFS command Something

digital If customers, the be farmers, exciting you into platform. that connectivity telematics that connectivity whole farmers, Larry machine that, current but which digital AFS they providing the put equipment, new platform AFS an with to legacy -- not look that machine, integrated for that's at fleet. not all but with the agreement their a And is able the to we and their there mix announced can really is that’s think, The only it recently their access for we’re only equipment. offering functionality I

other too that that a open that The get older have architecture you technologies. fleet, that platform it whole with that thing does equipment the all you that and software that with is have on mix can can is

So the think those exciting growers and that few I definitely higher are yields, fuel people, data more – and are and a decisions seeing all out from technology and these that's those all there there, is, investment return really are time, and that more season really from productivity all savings are in software. that some better and things more efficiency data things collection and ergonomic driving what on on

Larry De Maria

things. with that sounds perspective. and you're kind can of your be that that just technology sounds edge, competitor their confirm leave I'll you that, software if driving something some obviously line does and being in some imply like, despite the a from the cycle able helpful. the it are technology but of it say, couple here, a green it? with know would It stuff replacement equal, the or think prices then mitigate and that the that and years, fair unless high that trade moderate other like do And ag talks We platforms, level low top farmer’s no? happens all How So over that, concerns words, further, you with bad trade. about can just of about of that we to next Is to the in let's consider lead that growth else replacement commodity

David Meyer

lot an I working awful Well, that numbers, we’re of think on right.

of units numbers, in numbers. going these numbers to working able where a to take If and you right -- that, the same it's are not look to low some off order at lot we’re stay really to at industry sustain so are be

and uptick way, if and are low sustainable So, saw commodity that's the this a now really driving prices could probably see in sales we these some some in levels and business what's prices, that that the at is and we've at replacement feel unit level experienced then we demand of right we improvement. commodity fairly

fleets, So and the technology stuff the technology, it and it leading early to and edge what Machinery from right the we now getting edge that architecture, been edge Raven, back to go has if the days network and and precision, marketplace accommodates Titan our definitely KSIH related anything leading as delivers open they is with have a leading a the that you of to got affordable precision Definitely partnership take very have good as the partnerships some Edge, the ADRAM definitely there. tremble, out Deere with platform partnerships, has we've I think with. always Farmer’s

Operator

comments. for the of I’d reached question-and-answer turn like Mr. our We over any closing you. floor session. further back Thank Meyer end to to the

David Meyer

want call a I and on the to looking Well, to Okay. quarter. forward for fourth good everybody thank participation

thank So, you.

Operator

you. teleconference. That does Thank today’s conclude

wonderful We You and line at day. participation. your a you for may have thank this your disconnect time

Titan Machinery (TITN) 29 Nov 182019 Q3 Earnings call transcript