TWI - Earnings call 4 2023 | Titan International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Titan International Inc. Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to turn the floor over to Alan Snyder, Vice President, Financial Planning and Investor Relations for Titan. Mr. now is floor the yours. Snyder,

Alan Snyder

Good Thank everyone like welcome I'd Titan's you, Fourth Jaquita. to Quarter to Call. morning. XXXX Earnings

also On XX-K, I in release morning.. along we will are are and the today with a CEO; earnings Titan's with to which Securities the Titan's our filed begin Vice Exchange with call results that Senior CFO. and with Martin, and morning, review Paul and issued this President about was this reminder President the Form David the Reitz, me Commission were presented

As from certain could involve that a reminder, forward-looking the during risks, and this company's that call, assumptions materially we and cause will information. . our forward-looking be including projections discussing uncertainties future actual information, for results the plans differ the to

factors the or looking and included these harbor from SEC. well aggregate information in Forms differ results filed earlier Form filed within of have that with forward in XX-Q, as actual company's been earnings Additional attached individually our as the found which XX-K the safe to latest be either to cause could the release Form materially X-K the all statement statements can concerning

transcript website. quarterly the available will presentation, company's now after a to as the refer call and to other financial comparable quantitative be The information a financial to and as release remarks call which to measures be today's are turn The reconciliation measures, the well earnings today available would of earnings over is to soon intended the Paul. non-GAAP on this QX measures. A GAAP net In today's for the GAAP the addition, today's accompanies supplement, of contains latest all call may be website. Titan's like not of investor directly company's but the measures. non-GAAP substitute I most most release, comparable the presentation on discussed copy which replay to

Paul Reitz

morning, Alan, everyone. Thanks, good and

have the That's also seen to earnings of with the you announced of us. assets. a and is hopefully manufacturing of while expand our of Carlstar by and portfolio an transformative along acquisition This adding for announcement As transaction all word the we year-end QX to Carlstar. distribution morning, now, this our key say, customer will product and addition complicated base significantly accretive try

said the questions. for aspects of reported the opportunity really just for and results, transaction, going wheels acquisition manufacturer our instead to With with course, the Carlstar specialty I results on provide financial we're transformative should the we'll QX that and Titan my some I'm market strategic today. forward as Instead, along in brief focus will our our David the going normal have different. mind, of of Carlstar excited family. business spend of time damn on Carlstar is not global then, tires. Then and comments much a remarks make of year-end as to have of be on for discussion the our a as of sustainably I part rationale Titan, calling Carlstar transaction, will will time team Similar to conditions.

end Carlstar's products outdoor and not are business. markets diversification sports, Power where in Titan meaningful power power some adding equipment to end verticals agriculture smaller add portfolio markets has outdoor recent product the and in The equipment. our will equipment, the primary trailers high-speed trailers So years, for are sports, power competed those

and a a one-stop retailers of shop Carlstar relationships addition, unparalleled. Carlstar a has built commercial customers national In and that maintained in their servicing is key to connection strong dealers. X number segments with key

we're industries Carlstar excited arsenal and that we cyclical. to of strong It's an tires our construction and and users. key unmatched add products large secret our where new better offer segment, Titan end connection business. to agriculture customers Titan's together, with these no Titan are has done the customer and relationships same into and and wheels in ag, a are

So of by more some the something sales, addition of profitability these consistency our benefit retail-centric cyclicality. time reducing over and of margins that will categories we is expect the

sauce. secret simply such tremendous equipment, secret to spent sports developing and Carlstar ATV in has use have they segments that repeatedly sauce Part and tractors, has implements. X and as is this operate, turf, one-stop UTVs, the primarily Carlstar in years trailers. around as business of for again, they a shop areas a word done I'm building secret smaller high-speed going Along that because power portfolio a built of world-class model. the such job ag where equipment formation the backhoes products specialty power outdoor sauce with

existing our with well dovetails portfolio lineup. Titan This

Although in channels. these we products some do have

Our butter really -- and the been combines. innovating larger go wheels Titan's the tires bread and has and butter and biggest bread on tractors that

we combined really will our segments. Going these think in the forward, product best-in-class line feature offerings

offer extending to able product that market and just there be our We to are to I pleased, leadership really the mentioned. portfolio pleased be

we these producers that Carlstar's with assets model excited connects with a very manner. in excited effective opportunities top While line business broad are manufacturing base, their product are really about third-party we and for distribution efficient a and

an South X located has access in to with and our X Carlstar Midwest. Carlstar's well in materials. existing fit production the plant which throughout primarily that Carolina, facilities, has Tennessee incredible, X U.S. Meizu, a knowledgeable a is workforce located strategically long China base, lower-cost with in history and

value-added product valued operating in Titan's base manufacturing approach. I earlier, that to as that form Carlstar's shop platform also our an Carlstar can Complementing industry a mitigation extensive is mentioned manufacturing is combination unmatched in produce customers. The one-stop with portfolio our and providing locations risk while

distribution lot their approach impressed many develop connected to I've the via secret From again, sauce. with word customers. We're centers very hearing learning market about is the XX truly they You're team to this I've because sales, and getting inventory addition to the it are know impressive to process. planning It associated going keep one-stop looking more that years, connection with watching their the and an operating forward but of this beginning, the how the been processes been from shop. outside, for a that and

This this having products forward operations deliver into these in their market as well Central vertically integrated for strategic like the West managed their to get Carlstar the locations the our good Southern mentioned also Coast Internally distribution how timely penetration where source their I'd in of areas, allows has and in, opportunity DC origin. acquisition Overseas, including U.S. or on Hungary, customers manufacturing Titan previously. a we in are, and key regardless them to are a up good penetration existing in-house. they is manner And center facilities domestic expand All a is there. to and look Canada. to

business construction. some retail oriented of sales expect less is correlated Retail our is had Approximately fit Carlstar's even revenues I As past. such, going the Carlstar less noted see to than in annual Titan's and commodities consumer within ag XX% going XX% have forward to remaining more Titan's. smaller the they and we segment, earlier, volatility with with as ag and than

dive growth the strategic as are Titan exist the Titan, rolling As strong our perspective, to we start move really operations is integrate Titan's eager into you we opportunities but really from a team the Carlstar that for into up business, forward. can to and Carlstar fit sleeves with see a and

good to the in do bit it a that able were deal is in our into more balance moment. shape. highlight a around I get fair will leaves But the fact David sheet at It's we valuation this Xx and adjusted details a EBITDA. that want to accretive,

Over that the past couple of combined team Before of Titan do And has pro our the it to to handing between and is modest our use acquisition, based a profitability years, to to asset-backed fund David, want leverage And still that's on hard company revolver worked manageable leverage. touch the help post-deal our reduce conditions. X.Xx. I very market off upon forma this

have many softer. time, market are from government destocking by has be its place and that leaders supply, grain in global declines combined just the really actions is conservative farmer being equipment sectors. same course. really This overall taking impacted or weighed current expected XXXX incomes heard All geopolitics. of run the the you the and in construction uncertainties XXXX would that's that At Expectations on demand. dynamic with ag the described as As for driven best from

So ag market with the we starting inventories driven over year activity by this With state. we in balance the expect are that, a year commodity of more down the normal is prices. be will

still we've having has less Again, nothing comment do from impact are that shattering future compared earth noise the inventory the channels very driven but the farmer well throughout in from balance bodes really lagging of sheets that And amidst That cycles as market seen from impact in America North farmer being land forget the we XXXX or headwind prospects let's that prior and values been see not North American decades. strong. new as incomes, by as to for XXXX. with current

Wrapping plan of The One into ago to XXXX our I'm we solid has a year put our our our margins. challenges, for a around years up, ability proud navigate and of and Titan, customers was Titan maintain place number line. serving each is get serve centered focus their Carlstar other and efforts for commitment Titan the goal to dedication, I on want itself gaining during with the relentless the transaction our proven team thank due our and to diligence to momentum all customers. over team

talked financial to making are closing, They've its call performance business Titan turn organization. world-class Carlstar its In and like and in our to people. is a markets. Carlstar together. to All turn that our Titan that, the With better strong would our and the that clear work of team about excellent I ability to customers building to hard good Carlstar they done the are I an I'd really end over earlier. job and growth. into in group now. is serving David like They're showing welcome the seek flywheel It's

David Martin

to and the call. Paul, you, Thank good everybody morning on

is As the acquisition we noted, transformative Carlstar of said. as deal, a Paul

because that it of to So say Titan to it come people Titan. all the to importantly, very brings more is the things and important that

to have Titan of them part as happy very we're the So family.

will as we we're Xx, about. deal something than they is accretive now. be said Paul up it, financial have certainly Our to results going excited multiple immediately And operations which and and again, was to the forward our the different acquisition look expect

margin the billion. million. profile. That our is fiscal summary year done these results fourth Before we've operations provide and over more that, driving at adjusted compared to optimize into gross the year evidence in came XXXX over primary up long $X XXXX, results. from as emphasize I thing $X.X the our Full well touch revenues highlights some a XXXX our to $XXX capture billion was durable on that quarter that for positions better to is us get profitability EBITDA A solid on term. to work I details improved will

fourth with revenues million, the $XX million. our quarter, were EBITDA For $XXX of adjusted

full improved sales XX gross Our XX.X% impacted the XX.X% basis margins our other points that factors despite the being driven year-over-year this to the year. destocking from last sales have year economic XXXX and in through down

Elaborating on dynamic bit further. that a

one our earn a might and aggressively can to our fair return As our been on way our always the has balancing assets. extent to ag expect, costs followed in that while the our allows we have cycle a product typically margins to goal pricing manage input us

As are tires. operations. hard several for mind, naturally improve worked last and production and have in material With our impacted by manufacturer, a really costs years, our over we we our wheels to the raw that

the in the the show. compared $XX.X we for quarter was our we can margin gains SG&A is durable prior fourth things a our expense result able have in higher XXXX to million as to and results control, controlling By cost gross the year. million structure been floor $XX make

inflation pressures in the especially to With compensation. primarily change employee due due

things and full year, living given expenses control is up inflation modest For we're to and in XXXX. with X.X% $XXX from world that, $XXX these in that really able the totaled That our a costs. the million million, important, we're like

the they million expense our million prioritizing and quarter reflect our $X.X was full to $XX.X in fourth investments. on $X.X Those $XX.X and R&D emphasis R&D continued during year. compared and million the XXXX million for figures

with on our are a portfolio maintain equipment of us. to based committing decisions are ROI, farmers products increasingly We significant differentiator making and their best-in-class for a innovations

full year. Our income the was for $XX.X for operating the and million quarter $XXX million

Our year the $XXX operating up XX.X% flow the prior was million, cash year. for from

operating we improve that by that cash year. This be We teams the pleased global and line shows focus and the working able given to to efforts operating the the headwinds go to on our very top that flow experienced cash into finance throughout discipline capital driving all and our flow. things were significant

like I'd of couple nonoperating we statement mention. unusually to high Argentinian income a peso the to of During U.S. events relative dollar. had the impact the devaluation There year, that an was the

been applied for of which restructuring million The cost we cost years. we at approved to business hyperinflation exchange had million. adjust hyperinflationary in was year. a did the restructuring Turkey our Also, designated the in We our Argentina to plan foreign a European to and position outperform X structure the As economies the $XX both prior as better rules of in accounting recognize result, businesses action losses future. and $X.X

foreign Both loss costs out net non-GAAP exchange income EBITDA, the the EPS reconciliation within were of and and restructuring adjusted schedule. the

during to make investments the CapEx variety year. in $XX million during prior a Our $XX totaled compared key strong cash XXXX for the the flow and of enabled us to year million business our

million back shares total fourth $XX.X during million. nearly X We the for also our to a shares the nearly bringing cash of worth X.X our year million $XX used the buying fund repurchase quarter, program, total for million to share

us program. leaves capacity available on That $XX million of approximately our

the we acquisition Over of of cost free the cash and Carlstar of of newly million, called our in million $XXX comments, several cash composed excited we're which was form judicious million The in Echoing morning. shares. issued of intentions be TWI last Paul's announced the flow $XXX and quarters, was out the also $XXX have deploying of XX.X it. million have of this acquisition to stock to strong

basis. post X.Xx program expect a along X.X Altogether, sorry, our very to my stands I'm forma our with to transaction EBITDA way -- Importantly, we debt fund a reduction purchase leverage cash at on the debt manageable capital script pro programs. adjusted adequately flow on here, share our net continued lost and

million. to the are closing, expanded Concurrently of with similar to the million $XXX $XXX facility. ABL ABL we expanded our from existing Terms very

facility and the Carlstar. We XXX also domestic the fixed depending from the similar base guarantors our Canadian is and ratios The include points borrowing assets to pricing SOFR time. related plus basis to of coverage charge the points have the expanded basis time at to on on XXX

read The extend will XXXX, can't even facility facility my with The paper senior notes. to concurrently our maturing to I -- will extend anymore.

as X release, In Carlstar's cost And years there consistent with results more the integration the specific information figures, been Titan's. terms synergies to the we few relatively as and pursued. can work businesses be areas It's press we in meaningful premature coming in expect anticipate sharing operating we a bit have give margins, through detailed will months. of we of noted where last be the the

today Titan, down companies. ABL we businesses Broadly, repurchase to and our borrowing continue taken of with us is an solid Carlstar program cash, working while in on operating to in a of our profile combined fund the the also to similar cash allow the expect adequate investing we to produce to share have future and combined the generator flow increase

fiscal year Lastly, as this we we're earnings not noted release, providing at time. XXXX in our guidance

prudent we it's XXXX more that, expect The we like combined our a think And ways. we integration as little get is do acquisition. a gain to Carlstar that, transformative what significant addition to clarity look the on with path And for of will operations. down

do provide so, As guidance for reports. year look subsequent will the we during to earnings our we

turn for And the thank Titan. is this over and like call would the for -- our We session. very I'd time attention like matters now to you your your to team. for exciting Jaquita, our morning to a to to day what back operator, It Q&A

Operator

[Operator Instructions].

with the Blair. question first from of The De Larry comes line Maria William

Lawrence De Maria

-- you look Carlstar no no like you What in on Can -- just you you color of stand give on does reduced in deal. guidance some where said from cyclicality. the said Can there's now? I Congratulations Carlstar announcement 'XX -- guess there's you the obviously, 'XX.

Paul Reitz

to had and complete consumer, comments, Carlstar market Titan David in the some in what mean, really think is seeing his you're overall is I I mentioned similar 'XX. we're landscape, to across construction, there the ag, what in softness compared so seeing

reasons our in different tractors space, more smaller exposed They softer segments interest in we've though, had is our of being agriculture impact. some business, I -- but the think in rates talked consumer an rates based, have what with interest their we've seen. for to than are about

think So you with that's what out that's there different to of different Overall, don't anything that's blah, heard or been ag income a government, geopolitics, there's put different factors than number Carlstar blah. to release from any different I Titan, construction. other than with from rates interest It's farmer blah,

You could go on and on.

year have exceptional, to in good They 'XX for overall, So and were a the 'XX. had another in Carlstar results good going 'XX. year they're

a a continue it's an performing mentioned high-quality to times, got team. So going of been It's well. it's one-stop exceptional a It's -- we've number perform business. shop, to as well. tremendous they

together should teams And time growth to to thing David where, to put Carlstar because existing to combine I on but now. are market, frankly, portfolio. we service think spend Carlstar's really it just of mentioned isn't table, that and markets but Titan's also the this, going the quite didn't work touching lot product really drive synergies, down in a take opportunities. capabilities with into X on we you the right our have

As primarily bit we mentioned, U.S., little Carlstar is Europe. a in the in

global Titan that PSYOP what that is process. at centers You through world-class missing distribution model look secret one-stop connecting the in sauce to a our customers shop manufacturing is of footprint,

learn not of that only markets us, in in together opportunities better excited the from So we in where in work the front future. to we're moving also for places how get but starting and Carlstar have exist the Titan here there together see people we and today there. in and can

Lawrence De Maria

And both first rather guess you facilities South question new And that through into synergies figure I to the it's versa, don't -- actually out it as get product is, America? not. can or vice and can them. about or just facilities synergies go? happening it does maybe manufacturing I came ask because and the that explore going you down and cost and we're like quickly. it's to sounds the their Did I But secondly, we going in sales go confirm know like it really we bring together some seems that to ways and quickly, you leverage -- ability was and

Paul Reitz

good leverage we a you there, to facilities. more question, a to Yes. It's more manufacturing their get footprint. the chance are effectively, mean like I opportunities question said walk leverage to your in plants around there did their ours effectively on

transaction I also fairly diligence announced of say to lot months. So quickly due over couple did want the today. it But did we we a happen of the that last

We've been with legal around their business. and the plants, worked comfortable teams the financial endlessly, have getting

to going but So as I you and around then need do strengths, to in see now connect those about their some their when starts and forward bulb give our let and capabilities what the too, turn question, and learning on Larry, our first capabilities. said strengths, people we manufacturing processes, with their ours chance when that light their team your a would our say see more time to thinking it's combining locations their getting see spend like dots them team sees and they their

I And an is the to yes, We timing so your But came point, We're all to announce it together time. pleased right. today. quickly. think exciting it's this think

some bit kind more clearly we of going. little it we're articulate a investor opportunities back out that there us of going to time continue to certainly to takes base. to have the it explore get Let's and But

Lawrence De Maria

speak to overlap customer Any question. quick last just of? And

Paul Reitz

complementary. very the you look think to have are I businesses our the customer at answer And Mainly product. to question,

start go you, ag customers, then overlap. products So products, with is different. the we the of are and customers directions the to honest there. -- overlap same There We overlap But where in of be with the do don't kind here differential insignificant different we really in some smaller the are to with. because

enough I where fairly particular both well at know do think products, we is well overlap each that customer the have we business other's even contained. similar that

call question, together. teams of our bit these those a are the making morning, highly businesses so first getting of and X:XX with little phone with this And that any answer on complementary to overlap. your were at customers customers overlapped Starting to

continue built we what at a we're the the and going stronger service customers, still want that our you to effective say in is to got in to Carlstar and So we're together, you've Titan to do company. But combined process built. same manners this same time,

try And that. not change to

this you matrix both So question, a little a your in I to again, base at products very overlap when answer you look from favorable again, overlap think little them the And combine both. manner. overlap in customer each. in should when very standpoint, some and see customers. But

Operator

question of with comes Steve the line The Ferazani from Sidoti. next

Steve Ferazani

busy. very been you've Obviously,

lot cover on You Carlstar. to the A questions morning. had on call of a couple this more

with profile. you're competitive like in margin Your advantage less niche relatively has operating It you similar compare Can competition. the for markets looks always Carlstar. a been landscape fairly

Paul Reitz

something segments similar Titan same Yes. that connected right the was to business primary good I with in X product diligence, question, they our over and in profile their question your very has way extensive due the be to we no Carlstar there. mitigate hurdle And to is portfolio risk in that competitive operate that we, to customers That's a their a Steve. they model comfortable markets the have get around competitor probably that serve. an ours. mean the our built had can biggest to can the that margin landscape exact early that's customers and how related We as needed being

in exceptional. marketplace extremely is They pricing have connected their margin They portfolio very They're product the good. a understand well. to that's profile customer. Their

distribution As Carlstar that a -- that they to their I've to have forecast connects manufacturing, their rely their on of their secret mentioned their process way. significant their centers a to times, with number in sauce customers the inventory

spectrums that's to all across they operate. do the X can like competitor that truthfully in segments a no have very Titan's There's they they profile So can. they -- yes, similar it

do like the do Carlstar, there segments that there's and you in look a for competitor what and can we it's look they is we not do. you very Titan, at X And that ag, similar So wheels tires if what one-stop X tires do across if at wheels nobody all segments. shop with that primary this with do can

of lot and are a better that Carlstar together. are similarities So complementary. Titan Again,

Steve Ferazani

helpful. I for be you've sell I Xx ask for Paul, EBITDA? question a than really for would have That's you. mean to you given this But it business, more it and them would Great. described how this, it's why

Paul Reitz

don't can know if that I answer even I one.

me a from on try get Let and get response we'll you one. that to back them, and

I will want think, look, employees, it's Again, and on customers, you I to Titan's some of Carlstar I along from opportunity their Look, perspective -- give on customers. behalf employees it. speak don't -- Titan's a color their shareholders, great them for -- with there

a the believed They think of Titan. They it's the I of in And long-standing believed in but They Carlstar saw they They the power also tremendous Group, a business. becoming equity in -- Investor believed the in have Titan. believed Carlstar, value a in together. companies reputation. private they shareholder X

and looked using comment So that. for stock, win-win as this about both structure, employees. By and investors, if cash great the David we Carlstars', opportunity you and customers, and I'll look let deal more at a a at Titan

of And believe companies at think in of They X having on so Carlstar, combined. power Titan. of our tremendous which, They people. owners are board on a comp will the -- I be again, seat just the the behalf

David Martin

stock of it's deal. believe of fair this the amount There's of as a took that. I a to say that. allocation of mean upside in And part not significant they the much than combination obviously, more other and

it lot to So I them of if a prove it that be way, value think out you will as at well. look to

Steve Ferazani

helpful. That's

do then model seasonality Can we have -- idea of do any to you because geographic it. distribution? Just you the compared that of yours? to business And have

David Martin

of tend both have like interesting. questions, that. ours also similar take and of planting seasons things It's sports year, terms to I'll early then in Steve. part Yes, spring those to They of an and the power the

they have I than really that not bit wouldn't bigger that it's different. significant, first half. half second say though. It's a little So But

half. than you dispersion fairly at bit... is first bit similar, So North being second a America. little the the a have more Geographic half look mostly can but They in quarter-to-quarter little just

Steve Ferazani

If I I could more X sorry I'm it. get in. missed

David Martin

Europe. in bit little A

Steve Ferazani

bit little A in Europe.

Okay.

you -- very the the with obviously, flow free really cash You year cash a given ended balance. strong significant

like, you but and softer could lately, that a that? that you to the you've expanding been like are seems down haven't it How know ABL, seems year, pretty you I built quickly, You're thinking getting and pay we're up. paying down about it

David Martin

be able to to we'll the time, over generate cash in down the pay U.S. debt. the think I

haven't terms debt, it of that how we some adjustments in be will to it, -- There out that. closing paid We that to down fully come able us, at first the for quickly that working back happen. pay mapped we we'll and was will capital for had call the half

And half, the how in be capabilities in we our judicious also continue and we'll over the maintaining second invest our business program and that to do share repurchase where appropriate.

Operator

Tom Kerr investment. The next line with question comes of Zachs the from

Thomas Kerr

an investment EBITDA. Xx to just business at going you buying guys something started was comment I

it that, range? in margin but Carlstar XX% covered, and similar on of business legacy secondly capital-intensive Is the think the because you the about I size business gross a then the the of the has been than products is similar talked profile. margin less just

David Martin

both of Tom. cover I'll Yes. those,

on those margins. Titan's profile, The cost they higher I'll margin second maintain tend take little well, do accretive to the first, distribution more a the -- slightly actually to operating there. first bit X be X centers operating it's -- would

similar. about XX%, the that's has up a very same. -- been EBITDA about it's I end you having think so averaging margin Over So ours

can't the So remember I that question, -- it pretty now. covers much that your first profile

Thomas Kerr

just the than less a business because capital-intensive it . Is --

David Martin

the X% little bit which that. is higher Yes. dissimilar that The a produce of is of smaller. products size sales. than not to the of obviously, maintaining Titan, with they X% we've sales, business, They've around been But been about

Thomas Kerr

I guys try aren't you All but I'm give know And going anyway. Okay. to guidance, going to right.

XX% range expect we still the around can seeing forward massive wouldn't that even income, So do That's number with could with going gross the problem margins solved, declines. maintain we -- one, to XX% then softness with we if pick I can we're year? two, a year-to-date, farmer think this inventory the And or XX% that. number you in

David Martin

Yes.

margins, to well. we XXXX the gross forward similar going on XX% margin able our we be profile, On ballpark over a expect fiscal year in and in to were be as

how all we the costs forth about things so the input and pricing. we discipline talked operate, our have in in Given that managing we our

should intact everything pretty so And . with that. be

on Paul that the we any we're is pretty can by higher a the address a that believe we market pressure the impacted level fact but at side, in context, were offset softness where again, the we're seeing overall XXXX. position Now significantly -- in

Paul Reitz

Yes.

down everybody a No, Tom, XX% the so has marketplace, XX% in situation far There's year about that that's talked similar we're I at think to and like had So referenced, comments. all. it softness not this think I right? you general in

not here we're so repeat sit it. and And to going

I heard ag was lot range. what XX% companies you large of a from the think

we're And that's so that the falling, anything run is not no, XX%. cover, sky indicating seeing for down

a spend color year. going -- just we the getting able additional Carlstar we're we're So arms our through time some be forecast, provide and and some Titan move around forecast as to the we'll to

Thomas Kerr

maybe that the of you And big quick Sounds more would kind accounting refresh just in how that my question. business currency effect? hyperinflation rule. the is larger Can explain And one and quickly have good. memory Argentina

David Martin

and very Argentinian it's it significant of But a it's take to the but that remember losses Tom. position during Yes, net was the FX the time. that XXXX. can creates peso We business, off-line over very Okay. us, devaluation for a profitable got too, business smaller you that really later, asset

a time. So devalued during significantly that it period you that assets was of have --

of course time well. And a over the of longer as it's period long

So up were rules. we to hyperinflationary catching

for you versus have a lot to to rates the the assets. adjust rate So basically, current everything your of historical

Paul Reitz

from terrible something time. We made Tom, our They a just a long is output for business facility the in connection happened. No, said, David It's know. business that It's been perspective. probably portfolio -- market. I a it Brazilian portfolio Argentina changed was don't it's Nothing but good to stupid, margins. of Argentina, don't part it up a stupid. We customers great call a tragic just it good a like really makes kind we years on activity. agriculture got manufacture is there, good it of was like But stupid. market. seem Argentina it catching it's of

David Martin

the Yes, do require accounting to rules us this.

you these rules. it the up over obviously period and have to the of if with go or to deflation to exceeds time, it to And we XXX% a -- caught you so respect over things have And hits when that. inflation

it So a about lot more we you off-line, want. talk if can

Operator

comes The line Kirk the Imperial Capital. question next Ludtke with of from

Kirk Ludtke

you Can on to the Alan. David, One, consumer Paul, transaction. hear segment? compare couple me? Carlstar already would how what in your Congratulations you doing you're of A follow-ups.

Paul Reitz

have in we're mixing and Not even a I it's just good touch different comparable thorough bread, where quite what at direction really were we're Tennessee. do. in doing in world-class know we mentioned What Carlstar we times, this David Carlstar going and we few a doesn't is -- they a what consumer, all. consumer than facility a do in

laps running our other they but mix the along in operates some we were so in companies, were I true the where doing we segments consumer And they own for are dabbled with us. custom But around, in, that servicing around facilities. mean Carlstar space yes,

definitely better together. So again, are Carlstar Titan and

Kirk Ludtke

Got -- you with that about it. know got learned competing Carlstar them? and Were them You weren'y? to is you how

Paul Reitz

little I it's complementary and or different but doing world. doing I touch a mean, yes, did other we a bit each we we in -- way. a in way in mean similar competing different similar is probably I with little products, a ag but some it's world small mean it we word. just really but a weren't a bit of in Well, similar where a competitors, strong were operating spaces

way for of the did. customers what users, the end of and of the lot lot the taking Titan were a to Carlstar, a they care it's So respect marketplace, connected

But businesses very really, of is our complementary the strong. nature

go but the know world, to, we other a a shows trade would directly competing big they didn't big of they because each And it's have we not small booth. like so would a go say to, shows have booth trade I we wouldn't

the is overlap So minimal.

Kirk Ludtke

Interesting.

been couple working what the Okay. And on the for transaction precipitated months? a And you've sale? of

Paul Reitz

what group mean I did start well that last on for months. I Carlstar's is together and diligence due the about just really brought mean sale we we've months. our been few Board myself, members, between X ownership some before context talking the working

though. together. understanding it and was seeing takes And businesses. time parties our so time other, takes in of and this just It It interest takes there each some both of come

it rationale Carlstar. a mean folks it that's on and strategic of yes, of quickly at I few months, a the in came few from a the look from the amount you to create But to happened just Titan so if don't months. happen And want perspective, I effort that impression this tremendous really in -- and together last make team couple that a

with a their strength us the took behind There and strength board great do clear scenes that, some that we Yes. again, And transaction to on that in got lot to was understandings we our I of want get place. board. able saw you again, mean, to more the place were a led today. of the that. I a owners, be

I again, point. in the get just together cobbled months. think you . wasn't So It X

Kirk Ludtke

That's one? it contemplating? deal for And on you there for Or focus decent-sized you. it. it's helpful. this Got other Are M&A you're while? deals it. a . for going this a out Got Is there to are

Paul Reitz

think I hard business, we this good We've products, Well, to balance strong growth. people a get point mean I sheet. company, strong pursue a have good to as worked brands, and a developed good to

maximize So and that significant. the around and we need to Carlstar table we value do I it's the our customers our think brings this shareholders, arms our to get think at this point, for and

opportunities It's accretive right synergies. out gate, of and in the growth strong

may the maximum there's to geographical But combined right the I when footprint like think this be sure time thing opportunities some company. do out we that the we that that to the growth never get could you transaction. this the opportunities I make So going think value period of of is a do know there's investments expand present of some require one. as territories, themselves

in sheet can want them. in pursue our become position balance we a keep we our So -- they where to company that opportunities position available, a

Kirk Ludtke

Got size, that revised target as companies a change composition leverage in it. the is you're sharing? and there -- Is there

David Martin

No.

profile over it out now, we're -- we a not this this on to forma And doesn't basis, conservative us that took we're obviously, X.Xx. debt to maintain the transaction that and pro deal. enabled think I right on our skis respect with

we stay digest So as a we territory. general transaction. want in to And this

important the future flow We inside terms products, we whatever. our cash growth with then can is and to of growth. for also form the business, as flexibility about obviously, investments in the just well. strength that debt territories, continue to have pay an in flexibility And has for come like talked can not build down maintain investments of Paul acquisition, but

and to like our where is I to continue have respect -- we that again, sit it's now leverage with we flexibility. -- where we'll about So, all

Kirk Ludtke

when be Got down. there's other there it. And last tailwinds Are about that we no follow-up. should know any we are I guidance. forecast 'XX? thinking Volumes headwinds or

Paul Reitz

I so. don't think

I anything good again, 'XX think reported 'XX very seen you've well. strong at coming that we're on we different as morning really we've of the off than pretty don't 'XX. already is touched year seeing a this marketplace. what was I in think

we've So no, enough I provided color. think

better 'XX for because, articulating will just You've I again, think together. are Articulate that heard going Titan that from towards place the understanding look again, others. getting Carlstar and like And enough what the to but work of what future not Carlstar a Titan work good we together. be the towards is for also and

information a our you. we'll on for little that down heads So put while . getting work and for

Operator

-- from of Steve with the question comes next Sidoti. The question line Ferazani a I'm sorry, follow-up

Steve Ferazani

I don't depending to a accelerating weeks. decline months Again, XX% getting tractors, XX% X last on but for the to kind on entirely large were half to over destocking, do the listen which whose ag you a the of for but harp been want it's this, back of this year, down in trying of second math on this. on or question you to couple I've accelerated XX% is almost through Everyone call year. the

significantly mean, math would that more were pin what to and an would was the okay a you're that year, would -- I want mean, I of I in don't simple that a reasonable -- you're number, year. already math down to to you If say getting you flat, in all much by destocking I'm because way about say flattish kind it? were the ask. got Look, you this hit I question how this ag to that time, think of is the

David Martin

come certainly into the on Steve. as great impact full really number we not equation, question, something We Man, the put than -- it's of can't isn't year, but fine-tuned down. Obviously, probably market the a that. the in less a being mean, I that's flat certainly,

Operator

no are waiting this at additional There questions time.

to over call So the closing for back I will Reitz Mr. pass remarks.

Paul Reitz

us to better be and opportunity Carlstar to can the and I Titan about appreciate today's hear Carlstar you. Thank talk everybody's attention and call the acquisition how together.

and you, again thank talking to forward So soon look . you to

Operator

That you. thank Have today's you call. -- presentation. Thank That day. great concludes our attending a for concludes

Titan International (TWI) 29 Feb 242023 Q4 Earnings call transcript