| News Release from Titan International, Inc. Contact: Lisa Ross
Titan Communications Coordinator
(217) 221-4489 February 24, 2005
Titan International, Inc. reports 30 percent increase in pro forma sales for fourth quarter 2004
Quincy, IL.— Titan International, Inc. (NYSE: TWI) reported net sales of $105.9 million for the fourth quarter ended December 31, 2004, up 30 percent from $81.5 million pro forma (adjusted to reflect the April 2004 sale of Titan Europe) for the fourth quarter of 2003. Pro forma net sales for the year 2004 totaled $461.1 million, increasing 32 percent over 2003 pro forma net sales of $347.9 million.
Gross profit increased to $13.1 million for the fourth quarter of 2004 compared to $7.9 million for the same quarter of 2003, a 66 percent improvement in gross profit. For the year, gross profit more than doubled to $79.5 million in 2004 from $29.7 million in 2003.
Net income for the year improved $47.8 million to a profit of $11.1 million versus a loss of $(36.7) million a year earlier. Fully diluted earnings per share were $.61 in 2004 versus a loss of $(1.75) in 2003, for a $2.36 year-over-year gain.
Included in the fourth quarter and year-end 2004 results is a $5.3 million depreciation charge for idled assets marketed for sale. Titan continues the sales process for these idled assets, including facilities in Greenwood, South Carolina, and Walcott, Iowa, and equipment in Natchez, Mississippi, and Brownsville, Texas.
“Titan has experienced another remarkable quarter and we are proud to report a profitable 2004,” stated Maurice Taylor Jr., Titan president and CEO. “The operating results for the year show Titan’s employees worked hard to return the company to profitability when presented with increased demand in the agricultural and construction markets. Although it’s been a bumpy ride, we will not forget to maintain focus on reducing costs and further enhancing efficiencies. Many of our customers are predicting another strong year in 2005.”
For additional financial information and Management’s Discussion and Analysis of Financial Condition and Results of Operations, see the company’s annual report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2005.
This press release includes forward-looking statements that involve risks and uncertainties, including risks as detailed in Titan International, Inc.’s periodic filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2004.
Titan International, Inc., a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction, and consumer (i.e. all terrain vehicles and trailers) applications.
| Titan International, Inc. | Consolidated Statements of Operations (unaudited)
For the three and twelve months ended December 31, 2004 and 2003 | | | 3 Months Ended
December 31, | 12 Months Ended
December 31, | | | 2004 | 2003 | 2004 | 2003 | | | Net sales | $105,920 | $120,469 | $510,571 | $491,672 | | | Cost of sales | 92,830 | 112,529 | 431,071 | 461,969 | | | Gross profit | 13,090 | 7,940 | 79,500 | 29,703 | | | | | | | | | Selling, general and administrative expenses | 8,455 | 11,066 | 36,040 | 43,174 | | | Research and development expenses | 345 | 727 | 1,875 | 2,749 | | | Idled assets marketed for sale - depreciation | 5,275 | 0 | 5,275 | 0 | | | Goodwill impairment on Titan Europe | 0 | 0 | 2,9,88 | 0 | | | (Loss) income from operations | (985) | (3,853) | 33,322 | (16,220) | | | | | | | | | Interest expense | (2,561) | (5,130) | (16,159) | (20,231) | | | Debt termination expense | 0 | 0 | (3,654) | 0 | | | Equity income from unconsolidated affiliate | 857 | 0 | 1,278 | 0 | | | Loss on investment | 0 | 0 | 0 | (2,707) | | | Other income | 189 | 2,762 | 428 | 5,490 | | | (Loss) income before income taxes | (2,500) | (6,221) | 15,215 | (33,668) | | | | | | | | | (Benefit) provision for income taxes | (1,207) | 2,989 | 4,108 | 2,989 | | | Net (loss) income | $(1,293) | $(9,210) | $11,107 | $(36,657) | | | | | | | | | (Loss) income per common share: | | | | | | | Basic | $(.08) | $(.44) | $.62 | $(1.75) | | | Diluted | (.08) | (.44) | .61 | (1.75) | | | Average common shares outstanding: | | | Basic | 16,326 | 21,168 | 17,798 | 20,984 | | | Diluted | 16,326 | 21,168 | 21,574 | 20,984 | | | Amounts in thousands except earnings per share data. | | | | | | | Net sales with and without Titan Europe | (Unaudited)
Amounts in thousands | | | 3 Months Ended
Dec. 31, | 12 Months Ended
Dec. 31, | | 2004 | 2003 | 2004 | 2003 | | Net sales | $105,920 | $120,469 | $510,571 | $491,672 | | Less Titan Europe included in historical sales | 0 | 39,002 | 49,446 | 143,724 | | Net sales without Titan Europe | $105,920 | $81,467 | $461,125 | $347,948 | | | | | | | Revenues from External Customers by Segment | (Unaudited)
Amounts in thousands | | | 3 Months Ended
Dec. 31, | 12 Months Ended
Dec. 31, | | 2004 | 2003 | 2004 | 2003 | | Agricultural | $62,652 | $71,675 | $316,235 | $288,545 | | Earthmoving/Construction | 35,751 | 42,129 | 160,297 | 169,087 | | Consumer | 7,517 | 6,665 | 34,039 | 34,040 | | Total | $105,920 | $120,469 | $510,571 | $491,672 | | | | | | | Consolidated Condensed Balance Sheets (Unaudited) | | Amounts in thousands | | | Dec. 31, | Dec. 31, | | Assets | 2004 | 2003 | | Current assets: | | | | | | | Cash and cash equivalents | $1,130 | $6,556 | | Accounts receivable | 52,781 | 83,975 | | Inventories | 84,658 | 112,496 | | Assets held for sale | 0 | 37,775 | | Deferred income taxes | 6,711 | 20,343 | | Other current assets | 9,388 | 25,801 | | Total current assets | 154,668 | 286,946 | | | | | | | | | | | | | | | | Property, plant and equipment, net | 80,644 | 138,482 | | Idled assets marketed for sale | 31,245 | 0 | | Investment in unconsolidated affiliate | 30,040 | 0 | | Restricted cash deposits | 24,500 | 51,039 | | Goodwill | 11,702 | 18,823 | | Other assets | 21,367 | 27,794 | | Total assets | $354,166 | $523,084 | | | | | | | | | | | | | | | | Liabilities & stockholders' equity | | | | | | | Current liabilities: | | | | | | | Short-term debt (including current portion of long-term debt) | $217 | $21,161 | | Accounts payable | 26,733 | 51,931 | | Other current liabilities | 12,820 | 29,883 | | Total current liabilities | 39,770 | 102,975 | | | | | | | | | | | | | | | | Long-term debt | 169,688 | 248,397 | | Deferred income taxes | 9,164 | 22,796 | | Other long-term liabilities | 28,663 | 36,960 | | Stockholders' equity | 106,881 | 111,956 | | Total liabilities & stockholders' equity | $354,166 | $523,084 | | |
