Company Quick10K Filing
⚲
Titan Machinery
Financials
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
Filings
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
Reports
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

Content
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 - Floorplan Payable/Lines of Credit
Note 8 - Deferred Revenue
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
Note 19 - Subsequent Events
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
Exhibits
EX-10.1 a10qfy21q1ex101.htm
EX-10.2 a10qfy21q1ex102.htm
EX-10.3 a10qfy21q1ex103.htm
EX-10.4 a10qfy21q1ex104.htm
EX-31.1 a10qfy21q1ex311.htm
EX-31.2 a10qfy21q1ex312.htm
EX-32.1 a10qfy21q1ex321.htm
EX-32.2 a10qfy21q1ex322.htm

Titan Machinery Earnings 2020-04-30

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 April 30, 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 filer☐Smaller 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 May 29, 2020, 22,313,893 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)
April 30, 2020January 31, 2020
Assets
Current Assets
Cash$50,835  $43,721  
Receivables, net of allowance for expected credit losses76,430  72,776  
Inventories 583,435  597,394  
Prepaid expenses and other10,626  13,655  
Total current assets721,326  727,546  
Noncurrent Assets
Property and equipment, net of accumulated depreciation 148,293  145,562  
Operating lease assets84,577  88,281  
Deferred income taxes3,783  2,147  
Goodwill2,311  2,327  
Intangible assets, net of accumulated amortization8,318  8,367  
Other1,131  1,113  
Total noncurrent assets248,413  247,797  
Total Assets$969,739  $975,343  
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable$23,119  $16,976  
Floorplan payable 378,302  371,772  
Current maturities of long-term debt3,787  13,779  
Current operating lease liabilities12,320  12,259  
Deferred revenue29,163  40,968  
Accrued expenses and other30,726  38,409  
Total current liabilities477,417  494,163  
Long-Term Liabilities
Long-term debt, less current maturities 49,522  37,789  
Operating lease liabilities84,499  88,387  
Deferred income taxes3,808  2,055  
Other long-term liabilities7,415  7,845  
Total long-term liabilities145,244  136,076  
Commitments and Contingencies
Stockholders' Equity
Common stock, par value $.00001 per share, 45,000 shares authorized; 22,314 shares issued and outstanding at April 30, 2020; 22,335 shares issued and outstanding at January 31, 2020—  —  
Additional paid-in-capital251,051  250,607  
Retained earnings99,775  97,717  
Accumulated other comprehensive loss(3,748) (3,220) 
Total stockholders' equity 347,078  345,104  
Total Liabilities and Stockholders' Equity$969,739  $975,343  
 See Notes to Consolidated Financial Statements
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TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
 Three Months Ended April 30,
 20202019
Revenue
Equipment$218,505  $193,956  
Parts56,614  51,938  
Service25,600  22,831  
Rental and other9,489  9,567  
Total Revenue310,208  278,292  
Cost of Revenue
Equipment197,046  173,154  
Parts39,617  36,814  
Service8,345  7,483  
Rental and other6,790  6,941  
Total Cost of Revenue251,798  224,392  
Gross Profit58,410  53,900  
Operating Expenses53,058  52,555  
Impairment of Long-Lived Assets216  135  
Income from Operations5,136  1,210  
Other Income (Expense)
Interest and other income130  794  
Floorplan interest expense(1,152) (877) 
Other interest expense(966) (1,642) 
Income (Loss) Before Income Taxes3,148  (515) 
Provision for (Benefit from) Income Taxes886  (70) 
Net Income (Loss)$2,262  $(445) 
Earnings per Share:
Basic$0.10  $(0.02) 
Diluted$0.10  $(0.02) 
Weighted Average Common Shares:
Basic22,012  21,872  
Diluted22,012  21,872  
 
See Notes to Consolidated Financial Statements

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TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
 
 Three Months Ended April 30,
 20202019
Net Income (Loss)$2,262  $(445) 
Other Comprehensive Income (Loss)
Foreign currency translation adjustments(528) (771) 
Comprehensive Income (Loss)$1,734  $(1,216) 
 
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 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, Credit Loss—  —  —  (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  

See Notes to Consolidated Financial Statements
6

TITAN MACHINERY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 Three Months Ended April 30,
 20202019
Operating Activities
Net income (loss)$2,262  $(445) 
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities
Depreciation and amortization5,375  6,064  
Impairment216  135  
Deferred income taxes117  (316) 
Stock-based compensation expense645  603  
Noncash interest expense27  401  
Noncash lease expense2,833  3,062  
Other, net(54) 11  
Changes in assets and liabilities
Receivables, prepaid expenses and other assets(1,125) (5,593) 
Inventories11,941  (78,254) 
Manufacturer floorplan payable(10,669) 89,599  
Accounts payable, deferred revenue, accrued expenses and other and other long-term liabilities(13,919) (9,289) 
Operating lease liabilities(3,091) (3,126) 
Net Cash Provided by (Used for) Operating Activities(5,442) 2,852  
Investing Activities
Rental fleet purchases(3,378) (3,886) 
Property and equipment purchases (excluding rental fleet)(2,036) (1,604) 
Proceeds from sale of property and equipment313  416  
Acquisition consideration, net of cash acquired—  (2,972) 
Other, net(21) 8  
Net Cash Used for Investing Activities(5,122) (8,038) 
Financing Activities
Net change in non-manufacturer floorplan payable18,781  12,772  
Proceeds from long-term debt borrowings1,112  373  
Principal payments on long-term debt and finance leases(1,309) (878) 
Payment of debt issuance costs(670) —  
Other, net(200) (492) 
Net Cash Provided by Financing Activities17,714  11,775  
Effect of Exchange Rate Changes on Cash(36) (3) 
Net Change in Cash7,114  6,586  
Cash at Beginning of Period43,721  56,745  
Cash at End of Period$50,835  $63,331  
Supplemental Disclosures of Cash Flow Information
Cash paid during the period
Income taxes, net of refunds$365  $517  
Interest$2,262  $1,712  
Supplemental Disclosures of Noncash Investing and Financing Activities
Net property and equipment financed with long-term debt, finance leases, accounts payable and accrued liabilities$2,085  $5,861  
Net transfer of assets from (to) property and equipment to (from) inventories$(888) $(371) 

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 three-month period ended April 30, 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 for 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. See Item 1A. Risk Factors for more information on possible impacts.
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 a positive case at one 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 on March 23, 2020 but continued operations through social distancing means in all areas: equipment, parts, service and rental. Beginning May 4, 2020, we began fully reopening our stores to the public, following pandemic safety protocols applicable to the locations. Additionally, our International stores have also been following pandemic safety protocols applicable to each location.
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, 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 FASB issued a new standard, codified in ASC 326, 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 ASU 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.
Following is a summary of allowance for credit losses on trade and unbilled accounts receivable:
Balance at February 1, 2020Current Expected Credit Loss ProvisionWrite-offs Charged Against the AllowanceCredit Loss Recoveries CollectedF/X ImpactBalance at April 30, 2020
(in thousands)
Agriculture$181  $14  $5  $40  $—  $230  
Construction1,016  113  71  4  —  1,062  
International1,746  226  133  6  (29) 1,816  
$2,943  $353  $209  $50  $(29) $3,108  
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. 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. This standard was adopted on February 1, 2020 and was applied using the prospective transition approach. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements.
Unadopted Accounting Guidance
In March 2020, the FASB issued 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 April 30,
 20202019
 (in thousands, except per share data)
Numerator:
Net income (loss)$2,262  $(445) 
Allocation to participating securities(32) —  
Net income (loss) attributable to Titan Machinery Inc. common stockholders$2,230  $(445) 
Denominator:
Basic weighted-average common shares outstanding22,012  21,872  
Plus: incremental shares from vesting of restricted stock units—  —  
Diluted weighted-average common shares outstanding22,012  21,872  
Earnings Per Share:
Basic$0.10  $(0.02) 
Diluted$0.10  $(0.02) 
Anti-dilutive shares excluded from diluted weighted-average common shares outstanding:
Restricted stock units9  8  
Shares underlying senior convertible notes—  1,057  

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 April 30, 2020
AgricultureConstructionInternationalTotal
(in thousands)
Equipment$139,749  $34,253  $44,503  $218,505  
Parts35,079  11,460  10,075  56,614  
Service17,720  6,212  1,668  25,600  
Other733  518  104  1,355  
Revenue from contracts with customers
193,281  52,443  56,350  302,074  
Rental346  7,671  117  8,134  
Total revenues$193,627  $60,114  $56,467  $310,208  

Three Months Ended April 30, 2019
AgricultureConstructionInternationalTotal
(in thousands)
Equipment$107,864  $43,046  $43,046  $193,956  
Parts29,976  12,704  9,258  51,938  
Service14,985  6,521  1,325  22,831  
Other618  593  22  1,233  
Revenue from contracts with customers
153,443  62,864  53,651  269,958  
Rental332  7,879  123  8,334  
Total revenues$153,775  $70,743  $53,774  $278,292  
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Unbilled Receivables and Deferred Revenue
        Unbilled receivables amounted to $17.1 million and $13.9 million as of April 30, 2020 and January 31, 2020. The increase in unbilled receivables is primarily the result of a seasonal increase in the volume of our service transactions in which we recognize revenue as our work is performed and prior to customer invoicing.
        Deferred revenue from contracts with customers amounted to $27.9 million and $39.5 million as of April 30, 2020 and January 31, 2020. Our deferred revenue most often increases in the fourth quarter of each fiscal year due to a higher level of customer down payments or prepayments and longer time periods between customer payment and delivery of the equipment asset, and the related recognition of equipment revenue, prior to its seasonal use. During the three months ended April 30, 2020 and 2019, the Company recognized $29.7 million and $30.5 million, respectively, of revenue that was included in the deferred revenue balance as of January 31, 2020 and January 31, 2019, respectively. No material amount of revenue was recognized during the three months ended April 30, 2020 and 2019 from performance obligations satisfied in previous periods.
        The Company has elected as a practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of service of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The contracts for which the practical expedient has been applied include (i) equipment revenue transactions, which do not have a stated contractual term, but are short-term in nature, and (ii) service revenue transactions, which also do not have a stated contractual term but are generally completed within 30 days and for such contracts we recognize revenue over time at the amount to which we have the right to invoice for services completed to date.
NOTE 4 - RECEIVABLES
The Company provides an allowance for expected credit losses on its nonrental receivables in accordance with the guidance in ASU 2016-13. To measure the expected credit losses, receivables have been grouped based on shared credit risk characteristics as shown in the table below.
Trade and unbilled receivables from contracts with customers have credit risk and the allowance is determined by applying expected credit loss percentages to aging categories based on historical experience that are updated each quarter. The rates may also be adjusted to the extent future events are expected to differ from historical results. Given that the credit terms for these receivables are short-term, changes in credit loss percentages due to future events may not occur on a frequent basis. In addition, the allowance is adjusted based on information obtained by continued monitoring of individual customer credit.
Trade receivables from finance companies, other receivables due from manufacturers, and other receivables have not historically resulted in any credit losses to the Company. These receivables are short-term in nature and deemed to be of good credit quality and have no need for any allowance for expected credit losses. Management continually monitors these receivables and should information be obtained that identifies potential credit risk, an adjustment to the allowance would be made if deemed appropriate.
Trade and unbilled receivables from rental contracts are primarily in the US and are specifically excluded from the guidance in ASU 2016-13 in determining an allowance for expected losses. The Company does provide an allowance for these receivables based on historical experience and using credit information obtained from continued monitoring of customer accounts.
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April 30, 2020January 31, 2020
(in thousands)
Trade and unbilled receivables from contracts with customers
Trade receivables due from customers$32,962  $36,400  
Trade receivables due from finance companies17,388  12,352  
Unbilled receivables17,076  13,944  
Trade and unbilled receivables from rental contracts
Trade receivables5,581  7,381  
Unbilled receivables741  861  
Other receivables
Due from manufacturers6,565  5,763  
Other1,346  1,198  
Total receivables81,659  77,899  
Less allowance for expected credit losses(5,229) (5,123) 
Receivables, net of allowance for expected credit losses$76,430  $72,776  
        The following table presents impairment losses on receivables arising from sales contracts with customers and receivables arising from rental contracts:
Three Months Ended April 30,
20202019
(in thousands)
Impairment losses on:
Receivables from sales contracts$143  $328  
Receivables from rental contracts138  83  
$281  $411  

NOTE 5 - INVENTORIES
April 30, 2020January 31, 2020
 (in thousands)
New equipment$346,703  $358,339  
Used equipment154,538  157,535  
Parts and attachments80,294  79,813  
Work in process1,900  1,707  
$583,435  $