2020
ANNUAL 2020 ANNUAL REPORT REPORT Titan Machinery Inc. ∙ 644 East Beaton Drive ∙ West Fargo, North Dakota www.titanmachinery.com TITAN MACHINERY INC. LETTER TO SHAREHOLDERS Have asafeandhealthyyear. and theycanbeconfidentthatwewilldowhatittakesto keepthemsafeandensuretheirsuccess. work donethatweallcounton.AtTitan Machinery, wesupportthepeoplewhofeedandbuildourworld, precision technologies,anddeterminationthatistheirhallmark, ourcustomerswillcontinuetogetthe to growresponsiblyandserveourcustomersbetter. Withimprovedfarmingandjobsitepractices, Through depressedcommodityprices,coronavirus,$20oil,andwhatcomesnext,wewillcontinue efficient operations. continue toevaluateandcompleteacquisitionsthatleverageourscalebuildonfoundationof recently announcedacquisitionoftheHorizonWest dealershipgroupinNebraskaandWyoming,we our localcommunities.And,aswithfourthquarterdealershippurchaseinNorthwood,NDand environmental impactsandrisks;bringingthecaringcapacityofourglobalcompanytolifein customers, andourCOVID-19Task Forceismonitoringthecoronavirussituationandguidelines We wereamongthefirstdealergroupstolimitpublicaccessourstoresprotectemployeesand aggressive actionstoslowthespreadofvirushelpeaseburdenonourlocalhealthsystems. business to keep our customers running in fields and on jobsitesacross our footprint, and we are taking strained ascompaniesadjusttothisnewreality. We aregratefultobedesignatedasanessential between businessstrength,employeesafety, andcommunityresponsibilityisbeingcontinuously The COVID-19pandemichasledtounprecedentedsocialandeconomicuncertainty, andthebalance being combined,coronavirusstruck. sustainability throughthesedemandingconditions.Then,whilethelastofourdomesticcornwasstill David J.Meyer, BEST REGARDS, Chairman & CEO & Chairman ever. Andastheyearended,weweresatisfiedtohavedemonstratedourfinancial knowing thateveryproductiveacreandcompletedprojectedmatteredmorethan running intheirfieldsandonjobsiteswithdouble-digitpartsservicegrowth, economic pullbackinEasternEurope.Evenso,wekeptgrowersandcontractors U.S., atradewarwithChinathatworsenedalreadylowcommodityprices,andan extremely wetplantingconditionsthatpersistedthroughalateharvestinthe achieving top-andbottom-linegrowthinchallengingmarkets.We experienced In fiscal2020, Titan Machinerymarkedanotheryearofsteadyfinancialprogress, for sustainableproductinnovationandadvancedprecisionsolutions;reducing ongoing effortstoadvanceemployeesafety, growthanddevelopment;partnering our pillarsofPeople,Environment,andCommunity. Afewexamplesinclude:Our ir.titanmachinery.com tobetterunderstandhowwearecontinuinginvestin I hopeyouwilltakeafewminutestoreadourStatementonSustainabilityat Even amidthiscrisis,weremainfocusedonprogressandsustainablegrowth. our storesandcommunitiessafe. across ourfootprint,andcommunicatingfrequentlywithemployeestohelpkeep FinancialHighlights
TitanMachineryInc.
Financial Highlights Years ended January 31, 2020 and 2019 (in thousands, except per share data)
SummaryIncomeStatement 2020 2019
Revenue $1,305,171 $ 1,261,505 Cost of Revenue 1,054,353 1,029,917 Gross Profit 250,818 231,588
Operating Expenses 225,722 201,537 Impairment of LongLived Assets &