Company Quick10K Filing
Titan Machinery
Price14.54 EPS0
Shares22 P/E29
MCap325 P/FCF-39
Net Debt-17 EBIT18
TEV308 TEV/EBIT17
TTM 2019-10-31, in MM, except price, ratios
10-Q 2020-10-31 Filed 2020-12-03
10-Q 2020-07-31 Filed 2020-09-04
10-Q 2020-04-30 Filed 2020-06-04
10-K 2020-01-31 Filed 2020-04-07
10-Q 2019-10-31 Filed 2019-12-05
10-Q 2019-07-31 Filed 2019-09-05
10-Q 2019-04-30 Filed 2019-06-06
10-K 2019-01-31 Filed 2019-04-05
10-Q 2018-10-31 Filed 2018-12-06
10-Q 2018-07-31 Filed 2018-09-06
10-Q 2018-04-30 Filed 2018-06-07
10-K 2018-01-31 Filed 2018-04-06
10-Q 2017-10-31 Filed 2017-12-07
10-Q 2017-07-31 Filed 2017-09-07
10-Q 2017-04-30 Filed 2017-06-02
10-K 2017-01-31 Filed 2017-04-07
10-Q 2016-10-31 Filed 2016-12-08
10-Q 2016-07-31 Filed 2016-09-01
10-Q 2016-04-30 Filed 2016-06-02
10-K 2016-01-31 Filed 2016-04-13
10-Q 2015-10-31 Filed 2015-12-07
10-Q 2015-07-31 Filed 2015-09-09
10-Q 2015-04-30 Filed 2015-06-09
10-K 2015-01-31 Filed 2015-04-15
10-Q 2014-10-31 Filed 2014-12-10
10-Q 2014-07-31 Filed 2014-09-09
10-Q 2014-04-30 Filed 2014-06-05
10-K 2014-01-31 Filed 2014-04-11
10-Q 2013-10-31 Filed 2013-12-05
10-Q 2013-04-30 Filed 2013-06-06
10-K 2013-01-31 Filed 2013-04-10
10-Q 2012-10-31 Filed 2012-12-06
10-Q 2012-07-31 Filed 2012-09-10
10-Q 2012-04-30 Filed 2012-06-07
10-K 2012-01-31 Filed 2012-04-11
10-Q 2011-10-31 Filed 2011-12-09
10-Q 2011-07-31 Filed 2011-09-08
10-Q 2011-04-30 Filed 2011-06-09
10-K 2011-01-31 Filed 2011-04-18
10-Q 2010-10-31 Filed 2010-12-09
10-Q 2010-07-31 Filed 2010-09-08
10-Q 2010-04-30 Filed 2010-06-09
10-K 2010-01-31 Filed 2010-04-15
8-K 2020-11-24
8-K 2020-08-27
8-K 2020-06-08
8-K 2020-05-28
8-K 2020-04-03
8-K 2020-03-26
8-K 2019-11-26
8-K 2019-08-27
8-K 2019-06-06
8-K 2019-05-30
8-K 2019-03-27
8-K 2019-02-12
8-K 2018-11-29
8-K 2018-09-17
8-K 2018-08-30
8-K 2018-06-07
8-K 2018-05-31
8-K 2018-03-29
8-K 2018-02-28

TITN 10Q Quarterly Report

Part I. - Financial Information
Item 1. Financial Statements
Note 1 - Business Activity and Significant Accounting Policies
Note 2 - Earnings per Share
Note 3 - Revenue
Note 4 - Receivables
Note 5 - Inventories
Note 6 - Property and Equipment
Note 7 - Intangible Assets and Goodwill
Note 8 - Floorplan Payable/Lines of Credit
Note 9 - Senior Convertible Notes
Note 10 - Long Term Debt
Note 11 - Derivative Instruments
Note 12 - Accumulated Other Comprehensive Income (Loss)
Note 13 - Leases
Note 14 - Fair Value Measurements
Note 15 - Income Taxes
Note 16 - Business Combinations
Note 17 - Contingencies
Note 18 - Segment Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 a10qfy21q3ex311.htm
EX-31.2 a10qfy21q3ex312.htm
EX-32.1 a10qfy21q3ex321.htm
EX-32.2 a10qfy21q3ex322.htm

Titan Machinery Earnings 2020-10-31

Balance SheetIncome StatementCash Flow
1.81.41.10.70.40.02012201420172020
Assets, Equity
0.80.60.40.30.1-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended October 31, 2020
OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____
 
Commission File No. 001-33866
 
TITAN MACHINERY INC.
(Exact name of registrant as specified in its charter)
Delaware 45-0357838
(State or Other Jurisdiction of
Incorporation or Organization)
 (IRS Employer
Identification No.)

644 East Beaton Drive
West Fargo, ND 58078-2648
(Address of Principal Executive Offices)
 
Registrant’s telephone number (701) 356-0130

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.00001 par value per shareTITNThe Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer ☒
Non-accelerated filerSmaller reporting company 
Emerging growth company 

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES     NO  

As of November 30, 2020, 22,555,832 shares of Common Stock, $0.00001 par value, of the registrant were outstanding.


Table of Contents
TITAN MACHINERY INC.
QUARTERLY REPORT ON FORM 10-Q
 
Table of Contents

 Page No.
PART I.
FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
 Consolidated Balance Sheets
 Consolidated Statements of Operations
 Consolidated Statements of Comprehensive Income
 Consolidated Statements of Stockholders' Equity
 Consolidated Statements of Cash Flows
 
Notes to Consolidated Financial Statements
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.
CONTROLS AND PROCEDURES
PART II.
OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
ITEM 1A.
RISK FACTORS
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
ITEM 4.
MINE SAFETY DISCLOSURES
ITEM 5.
OTHER INFORMATION
ITEM 6.
EXHIBITS
Exhibit Index
Signatures

2

Table of Contents
PART I. — FINANCIAL INFORMATION
 
ITEM 1.                FINANCIAL STATEMENTS
 
TITAN MACHINERY INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data)
October 31, 2020January 31, 2020
Assets
Current Assets
Cash$41,808 $43,721 
Receivables, net of allowance for expected credit losses73,531 72,776 
Inventories 532,746 597,394 
Prepaid expenses and other8,737 13,655 
Total current assets656,822 727,546 
Noncurrent Assets
Property and equipment, net of accumulated depreciation 148,520 145,562 
Operating lease assets81,401 88,281 
Deferred income taxes3,787 2,147 
Goodwill1,433 2,327 
Intangible assets, net of accumulated amortization7,764 8,367 
Other1,129 1,113 
Total noncurrent assets244,034 247,797 
Total Assets$900,856 $975,343 
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable$23,433 $16,976 
Floorplan payable 287,837 371,772 
Current maturities of long-term debt4,423 13,779 
Current operating lease liabilities12,373 12,259 
Deferred revenue14,708 40,968 
Accrued expenses and other38,433 38,409 
Total current liabilities381,207 494,163 
Long-Term Liabilities
Long-term debt, less current maturities 55,109 37,789 
Operating lease liabilities80,782 88,387 
Deferred income taxes5,814 2,055 
Other long-term liabilities10,376 7,845 
Total long-term liabilities152,081 136,076 
Commitments and Contingencies
Stockholders' Equity
Common stock, par value $.00001 per share, 45,000 shares authorized; 22,555 shares issued and outstanding at October 31, 2020; 22,335 shares issued and outstanding at January 31, 2020
  
Additional paid-in-capital252,270 250,607 
Retained earnings116,087 97,717 
Accumulated other comprehensive loss(789)(3,220)
Total stockholders' equity 367,568 345,104 
Total Liabilities and Stockholders' Equity$900,856 $975,343 
 See Notes to Consolidated Financial Statements
3

Table of Contents
TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
 Three Months Ended October 31,Nine Months Ended October 31,
 2020201920202019
Revenue
Equipment$240,901 $245,986 $662,060 $654,376 
Parts76,778 70,788 194,846 181,928 
Service30,696 27,553 84,282 77,215 
Rental and other12,497 16,609 33,357 40,688 
Total Revenue360,872 360,936 974,545 954,207 
Cost of Revenue
Equipment215,770 219,484 593,048 583,345 
Parts53,556 49,834 136,205 128,380 
Service10,254 8,950 28,263 25,170 
Rental and other8,741 10,894 23,379 27,612 
Total Cost of Revenue288,321 289,162 780,895 764,507 
Gross Profit72,551 71,774 193,650 189,700 
Operating Expenses54,115 58,184 160,252 165,594 
Impairment of Goodwill1,453 — 1,453 — 
Impairment of Intangible and Long-Lived Assets1,102 51 1,318 186 
Income from Operations15,881 13,539 30,627 23,920 
Other Income (Expense)
Interest and other income (expense)(360)1,273 333 2,687 
Floorplan interest expense(757)(1,448)(2,811)(3,724)
Other interest expense(940)(955)(2,884)(3,562)
Income Before Income Taxes13,824 12,409 25,265 19,321 
Provision for Income Taxes3,912 4,195 6,691 6,041 
Net Income$9,912 $8,214 $18,574 $13,280 
Earnings per Share:
Basic$0.44 $0.37 $0.83 $0.60 
Diluted$0.44 $0.37 $0.83 $0.60 
Weighted Average Common Shares:
Basic22,132 21,973 22,089 21,936 
Diluted22,137 21,976 22,091 21,942 
 
See Notes to Consolidated Financial Statements

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TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
 
 Three Months Ended October 31,Nine Months Ended October 31,
 2020201920202019
Net Income$9,912 $8,214 $18,574 $13,280 
Other Comprehensive Income (Loss)
Foreign currency translation adjustments2,181 (2,650)2,431 (2,409)
Comprehensive Income$12,093 $5,564 $21,005 $10,871 
 
See Notes to Consolidated Financial Statements

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TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
(in thousands)

Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity
Shares OutstandingAmount
BALANCE, January 31, 201922,218 $— $248,423 $89,228 $(2,340)$335,311 
Cumulative-effect adjustment of adopting ASC 842, Leases— — — (5,464)— (5,464)
Common stock issued on grant of restricted stock and exercise of stock options, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax(34)— (492)— — (492)
Stock-based compensation expense— — 603 — — 603 
Net loss— — — (445)— (445)
Other comprehensive loss— — — — (771)(771)
BALANCE, April 30, 201922,184 — 248,534 83,319 (3,111)328,742 
Common stock issued on grant of restricted stock and exercise of stock options, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax170 — — — — — 
Stock-based compensation expense— — 694 — — 694 
Net Income— — — 5,511 — 5,511 
Other comprehensive income— — — — 1,012 1,012 
BALANCE, July 31, 201922,354 — 249,228 88,830 (2,099)335,959 
Common stock issued on grant of restricted stock and exercise of stock options, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax(2)— (17)— — (17)
Stock-based compensation expense— — 773 — — 773 
Net Income— — — 8,214 — 8,214 
Other comprehensive loss— — — — (2,650)(2,650)
BALANCE, October 31, 201922,352 $— $249,984 $97,044 $(4,749)$342,279 

Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity
Shares OutstandingAmount
BALANCE, January 31, 202022,335 $— $250,607 $97,717 $(3,220)$345,104 
Cumulative-effect adjustment of adopting ASC 326, Financial Instruments - Credit Losses— — — (204)— (204)
Common stock issued on grant of restricted stock, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax(21)— (201)— — (201)
Stock-based compensation expense— — 645 — — 645 
Net income— — — 2,262 — 2,262 
Other comprehensive loss— — — — (528)(528)
BALANCE, April 30, 202022,314 — 251,051 99,775 (3,748)347,078 
Common stock issued on grant of restricted stock, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax239 — — — — — 
Stock-based compensation expense— — 536 — — 536 
Net income— — — 6,400 — 6,400 
Other comprehensive income— — — — 778 778 
BALANCE, July 31, 202022,553 — 251,587 106,175 (2,970)354,792 
Common stock issued on grant of restricted stock, net of restricted stock forfeitures and restricted stock withheld for employee withholding tax2 — (8)— — (8)
Stock-based compensation expense— — 691 — — 691 
Net income— — — 9,912 — 9,912 
Other comprehensive income— — — — 2,181 2,181 
BALANCE, October 31, 202022,555 $— 252,270 $116,087 $(789)$367,568 
See Notes to Consolidated Financial Statements
6


TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 Nine Months Ended October 31,
 20202019
Operating Activities
Net income$18,574 $13,280 
Adjustments to reconcile net income to net cash provided by (used for) operating activities
Depreciation and amortization17,731 21,061 
Impairment2,771 186 
Deferred income taxes2,117 629 
Stock-based compensation expense1,872 2,070 
Noncash interest expense125 394 
Noncash lease expense8,613 9,251 
Other, net(694)(63)
Changes in assets and liabilities
Receivables, prepaid expenses and other assets4,479 (4,630)
Inventories76,495 (133,929)
Manufacturer floorplan payable(46,466)113,632 
Accounts payable, deferred revenue, accrued expenses and other and other long-term liabilities(15,555)(20,697)
Operating lease liabilities(9,248)(9,473)
Net Cash Provided by (Used for) Operating Activities60,814 (8,289)
Investing Activities
Rental fleet purchases(6,799)(12,765)
Property and equipment purchases (excluding rental fleet)(9,406)(7,637)
Proceeds from sale of property and equipment795 1,386 
Acquisition consideration, net of cash acquired(6,790)(11,752)
Other, net(16)13 
Net Cash Used for Investing Activities(22,216)(30,755)
Financing Activities
Net change in non-manufacturer floorplan payable(40,779)62,387 
Principal payments on senior convertible notes— (45,644)
Proceeds from long-term debt borrowings5,326 21,865 
Principal payments on long-term debt and finance leases(4,417)(3,197)
Payment of debt issuance costs(700)— 
Other, net(209)(509)
Net Cash Provided by (Used for) Financing Activities(40,779)34,902 
Effect of Exchange Rate Changes on Cash268 (183)
Net Change in Cash(1,913)(4,325)
Cash at Beginning of Period43,721 56,745 
Cash at End of Period$41,808 $52,420 
Supplemental Disclosures of Cash Flow Information
Cash paid during the period
Income taxes, net of refunds$31 $4,934 
Interest$5,813 $7,162 
Supplemental Disclosures of Noncash Investing and Financing Activities
Net property and equipment financed with long-term debt, finance leases, accounts payable and accrued liabilities$8,555 $7,652 
Net transfer of assets from (to) property and equipment to (from) inventories$2,731 $(2,179)

See Notes to Consolidated Financial Statements
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TITAN MACHINERY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
 
NOTE 1 - 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, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2021. The information contained in the consolidated balance sheet as of January 31, 2020 was derived from the audited consolidated financial statements of 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, 2020 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, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Germany, Romania, Serbia and Ukraine. 
Impact of the COVID-19 Pandemic
In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak as a national emergency. The nature of COVID-19 led to worldwide shutdowns and halting of commercial and interpersonal activity as governments imposed regulations in efforts to control the spread of the pandemic, such as shelter-in-place orders and quarantines. The pandemic is a highly fluid and rapidly evolving situation, and we cannot anticipate with any certainty the length, scope, or severity of such restrictions in each of the markets that we operate.
Since the beginning of the COVID-19 pandemic, the safety of our employees and customers has been and continues to be our top concern. At the onset of the pandemic, we organized a COVID Task Force to implement safety protocols and to quickly respond to matters, in the event of positive cases at any of our locations.
Even though we are considered an essential business, in response to the COVID-19 pandemic, the Company closed its U.S. stores to the public in March 2020 but continued operations through social distancing means in all areas: equipment, parts, service and rental. Beginning in May 2020, we began fully reopening our stores to the public, following pandemic safety protocols, and by June 2020 all of our locations were once again open to the public. Additionally, our International stores have also been following pandemic safety protocols set forth by each country and local government authority, which at times have included border shutdowns and curfew regulations.
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, goodwill, or indefinite lived intangible 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.
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Recently Adopted Accounting Guidance
    In June 2016, the Financial Accounting Standards Board ("FASB") issued a new standard, codified in Accounting Standard Codification ("ASC") 326, Financial Instruments - Credit Losses, that modifies how entities measure credit losses on most financial instruments. The new standard replaced the "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 guidance impacts the Company on its accounts receivable portfolio but specifically excluded receivables from operating lease arrangements and, therefore, the Company’s receivables from rental contracts were not impacted. The guidance also requires new disclosures to allow the users of the financial statements to understand the credit risk inherent in a portfolio and how management monitors the credit quality of the portfolio, management’s estimate of expected credit losses, and changes in the estimate of expected credit losses that have taken place during the reporting period.
The Company adopted the new guidance on February 1, 2020 using a modified retrospective approach and recognized an immaterial cumulative-effect adjustment to retained earnings as of the effective date. The Company identified and updated existing internal controls and procedures to ensure compliance with the new guidance, but such modifications were not deemed to be material to the Company's overall system of internal control. While the adoption of this standard did not have a material impact on the Company's consolidated financial statements, it required changes to the Company's process of estimating expected credit losses on trade receivables. See footnote 4 for further discussion of our accounts receivables.
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, Internal Use Software. 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. The Company adopted this standard on February 1, 2020, using the prospective transition approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.
Accounting Guidance Not Yet Adopted
In March 2020, the FASB issued Accounting Standard Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”), which provides temporary optional expedients and exceptions to accounting guidance on contract modifications and hedge accounting to ease entities’ financial reporting burdens as the market transitions from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The Company is currently evaluating its contracts and hedging relationships that reference LIBOR to determine if the Company will adopt the new guidance.
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NOTE 2 - 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,
 2020201920202019
 (in thousands, except per share data)
Numerator:
Net income$9,912 $8,214 $18,574 $13,280 
Allocation to participating securities(186)(140)(301)(207)
Net income attributable to Titan Machinery Inc. common stockholders$9,726 $8,074 $18,273 $13,073 
Denominator:
Basic weighted-average common shares outstanding22,132 21,973 22,089 21,936 
Plus: incremental shares from vesting of restricted stock units5 3 2 6 
Diluted weighted-average common shares outstanding22,137 21,976 22,091 21,942 
Earnings Per Share:
Basic$0.44 $0.37 $0.83 $0.60 
Diluted$0.44 $0.37 $0.83 $0.60 

NOTE 3 - 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, 2020Three Months Ended October 31, 2019
AgricultureConstructionInternationalTotalAgricultureConstructionInternationalTotal
(in thousands)(in thousands)
Equipment$146,410 $47,766 $46,725 $240,901 $148,680 $43,299 $54,007 $245,986 
Parts50,528 14,072 12,179 76,779 44,923 13,586 12,279 70,788 
Service22,316 6,497 1,883 30,696 18,885 6,674 1,994 27,553 
Other823 628 102 1,553 835 826 50 1,711 
Revenue from contracts with customers
220,077 68,963 60,889 349,929 213,323 64,385 68,330 346,038 
Rental548 10,067 328 10,943 750 13,646 502 14,898 
Total revenues$220,625 $79,030 $61,217 $360,872 $214,073 $78,031 $68,832 $360,936 

Nine Months Ended October 31, 2020Nine Months Ended October 31, 2019
AgricultureConstructionInternationalTotalAgricultureConstructionInternationalTotal
(in thousands)(in thousands)
Equipment$396,759 $130,497 $134,804 $662,060 $367,754 $137,742 $148,880 $654,376 
Parts123,078 38,548 33,221 194,847 109,952 39,356 32,620 181,928 
Service59,466 19,514 5,302 84,282 51,869 20,163 5,183 77,215 
Other2,385 1,871 325 4,581 2,248 2,238 202 4,688 
Revenue from contracts with customers
581,688 190,430 173,652 945,770 531,823 199,499 186,885 918,207 
Rental1,638 26,432 705 28,775 1,715 33,314 971 36,000 
Total revenues$583,326 $216,862 $174,357 $974,545 $533,538 $232,813 $187,856 $954,207 
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Unbilled Receivables and Deferred Revenue