Cover
Cover | 9 Months Ended |
Oct. 31, 2020 | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Oct. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-33866 |
Entity Registrant Name | TITAN MACHINERY INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 45-0357838 |
Entity Address, Address Line One | 644 East Beaton Drive |
Entity Address, City or Town | West Fargo, |
Entity Address, State or Province | ND |
Entity Address, Postal Zip Code | 58078-2648 |
City Area Code | (701) |
Local Phone Number | 356-0130 |
Title of 12(b) Security | Common Stock, $0.00001 par value per share |
Trading Symbol | TITN |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2020 | Nov. 30, 2020 | |
Document and Entity Information | ||
Entity Central Index Key | 0001409171 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 22,555,832 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) shares in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Current Assets | ||
Cash | $ 41,808,000 | $ 43,721,000 |
Receivables, net of allowance for expected credit losses | 73,531,000 | 72,776,000 |
Inventories | 532,746,000 | 597,394,000 |
Prepaid expenses and other | 8,737,000 | 13,655,000 |
Total current assets | 656,822,000 | 727,546,000 |
Noncurrent Assets | ||
Property and equipment, net of accumulated depreciation | 148,520,000 | 145,562,000 |
Operating Lease, Right-of-Use Asset | 81,401,000 | 88,281,000 |
Deferred Income Taxes and Other Assets, Noncurrent | 3,787,000 | 2,147,000 |
Goodwill | 1,433,000 | 2,327,000 |
Intangible assets, net of accumulated amortization | 7,764,000 | 8,367,000 |
Other | 1,129,000 | 1,113,000 |
Total noncurrent assets | 244,034,000 | 247,797,000 |
Total Assets | 900,856,000 | 975,343,000 |
Current Liabilities | ||
Accounts payable | 23,433,000 | 16,976,000 |
Floorplan payable | 287,837,000 | 371,772,000 |
Current maturities of long-term debt | 4,423,000 | 13,779,000 |
Operating Lease, Liability, Current | 12,373,000 | 12,259,000 |
Deferred revenue | 14,708,000 | 40,968,000 |
Accrued expenses and other | 38,433,000 | 38,409,000 |
Total current liabilities | 381,207,000 | 494,163,000 |
Long-Term Liabilities | ||
Long-term debt, less current maturities | 55,109,000 | 37,789,000 |
Operating Lease, Liability | 80,782,000 | 88,387,000 |
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | 5,814,000 | 2,055,000 |
Other long-term liabilities | 10,376,000 | 7,845,000 |
Total long-term liabilities | 152,081,000 | 136,076,000 |
Commitments and Contingencies | ||
Common stock, shares outstanding | 22,555 | 22,335 |
Common stock, shares issued | 22,555 | 22,335 |
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 | $ 0 | $ 0 |
Additional paid-in-capital | 252,270,000 | 250,607,000 |
Retained earnings | 116,087,000 | 97,717,000 |
Accumulated other comprehensive loss | (789,000) | (3,220,000) |
Total Titan Machinery Inc. stockholders' equity | 367,568,000 | 345,104,000 |
Total Liabilities and Stockholders' Equity | $ 900,856,000 | $ 975,343,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value, in dollars per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 45,000 | 45,000 |
Common stock, shares issued | 22,555 | 22,335 |
Common stock, shares outstanding | 22,555 | 22,335 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenue | ||||
Equipment | $ 240,901 | $ 245,986 | $ 662,060 | $ 654,376 |
Parts | 76,778 | 70,788 | 194,846 | 181,928 |
Service | 30,696 | 27,553 | 84,282 | 77,215 |
Rental and Other | 12,497 | 16,609 | 33,357 | 40,688 |
Total Revenue | 360,872 | 360,936 | 974,545 | 954,207 |
Cost of Revenue | ||||
Equipment | 215,770 | 219,484 | 593,048 | 583,345 |
Parts | 53,556 | 49,834 | 136,205 | 128,380 |
Service | 10,254 | 8,950 | 28,263 | 25,170 |
Rental and other | 8,741 | 10,894 | 23,379 | 27,612 |
Total Cost of Revenue | 288,321 | 289,162 | 780,895 | 764,507 |
Gross Profit | 72,551 | 71,774 | 193,650 | 189,700 |
Operating Expenses | 54,115 | 58,184 | 160,252 | 165,594 |
Goodwill, Impairment Loss | 1,453 | 1,453 | ||
Other Asset Impairment Charges | 1,102 | 51 | 1,318 | 186 |
Income from Operations | 15,881 | 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 Taxes | 13,824 | 12,409 | 25,265 | 19,321 |
Provision for Income Taxes | 3,912 | 4,195 | 6,691 | 6,041 |
Net Income | $ 9,912 | $ 8,214 | $ 18,574 | $ 13,280 |
Earnings per Share: | ||||
Earnings (Loss) per Share - Basic, in dollars per share | $ 0.44 | $ 0.37 | $ 0.83 | $ 0.60 |
Earnings (Loss) per Share - Diluted, in dollars per share | $ 0.44 | $ 0.37 | $ 0.83 | $ 0.60 |
Weighted Average Common Shares: | 22,132 | 21,973 | 22,089 | 21,936 |
Basic | 22,137 | 21,976 | 22,091 | 21,942 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 9,912 | $ 8,214 | $ 18,574 | $ 13,280 |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | 2,181 | (2,650) | 2,431 | (2,409) |
Comprehensive Income (Loss) | $ 12,093 | $ 5,564 | $ 21,005 | $ 10,871 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | AOCI Attributable to Parent [Member] |
Shares, Outstanding | 22,218 | ||||||
Stockholders' Equity Attributable to Parent | $ 335,311 | $ 248,423 | $ 89,228 | $ (2,340) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (34) | ||||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (492) | (492) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 603 | 603 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (445) | (445) | |||||
Other Comprehensive Income (Loss), Net of Tax | (771) | (771) | |||||
Retained earnings | $ (5,464) | $ (5,464) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 13,280 | ||||||
Shares, Outstanding | 22,184 | ||||||
Stockholders' Equity Attributable to Parent | 328,742 | 248,534 | 83,319 | (3,111) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 170 | ||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 694 | 694 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 5,511 | 5,511 | |||||
Other Comprehensive Income (Loss), Net of Tax | 1,012 | 1,012 | |||||
Shares, Outstanding | 22,354 | ||||||
Stockholders' Equity Attributable to Parent | 335,959 | 249,228 | 88,830 | (2,099) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (2) | ||||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (17) | (17) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 773 | 773 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 8,214 | 8,214 | |||||
Other Comprehensive Income (Loss), Net of Tax | (2,650) | (2,650) | |||||
Shares, Outstanding | 22,352 | ||||||
Stockholders' Equity Attributable to Parent | 342,279 | 249,984 | 97,044 | (4,749) | |||
Shares, Outstanding | 22,335 | ||||||
Stockholders' Equity Attributable to Parent | 345,104 | 250,607 | 97,717 | (3,220) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | (21) | ||||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (201) | (201) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 645 | 645 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 2,262 | 2,262 | |||||
Other Comprehensive Income (Loss), Net of Tax | (528) | (528) | |||||
Retained earnings | $ (204) | $ (204) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 18,574 | ||||||
Shares, Outstanding | 22,314 | ||||||
Stockholders' Equity Attributable to Parent | 347,078 | 251,051 | 99,775 | (3,748) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 239 | ||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 536 | 536 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 6,400 | 6,400 | |||||
Other Comprehensive Income (Loss), Net of Tax | 778 | 778 | |||||
Shares, Outstanding | 22,553 | ||||||
Stockholders' Equity Attributable to Parent | 354,792 | 251,587 | 106,175 | (2,970) | |||
Stock Issued During Period, Share of Restricted Stock Award Stock Options Exercised and Warrants and Tax Benefits of Equity Awards | 2 | ||||||
Stock Issued During Period, Value of Restricted Stock Award Stock Options Exercised Warrants Exercised and Tax Benefits of Equity Awards | (8) | (8) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 691 | 691 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 9,912 | 9,912 | |||||
Other Comprehensive Income (Loss), Net of Tax | 2,181 | 2,181 | |||||
Shares, Outstanding | 22,555 | ||||||
Stockholders' Equity Attributable to Parent | $ 367,568 | $ 252,270 | $ 116,087 | $ (789) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Operating Activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 18,574 | $ 13,280 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||
Depreciation and amortization | 17,731 | 21,061 |
Impairment | 2,771 | 186 |
Deferred income taxes | 2,117 | 629 |
Stock-based compensation expense | 1,872 | 2,070 |
Noncash interest expense | 125 | 394 |
Noncash lease expense | 8,613 | 9,251 |
Other, net | (694) | (63) |
Changes in assets and liabilities | ||
Receivables, prepaid expenses and other assets | 4,479 | (4,630) |
Inventories | 76,495 | (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 Activities | 60,814 | (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 equipment | 795 | 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 borrowings | 5,326 | 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 Cash | 268 | (183) |
Net Change in Cash | (1,913) | (4,325) |
Cash at Beginning of Period | 43,721 | 56,745 |
Cash at End of Period | 41,808 | 52,420 |
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) |
BUSINESS ACTIVITY AND SIGNIFICA
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 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. 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. |
EARNINGS PER SHARE (Notes)
EARNINGS PER SHARE (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 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, 2020 2019 2020 2019 (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 outstanding 22,132 21,973 22,089 21,936 Plus: incremental shares from vesting of restricted stock units 5 3 2 6 Diluted weighted-average common shares outstanding 22,137 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 |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 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, 2020 Three Months Ended October 31, 2019 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 146,410 $ 47,766 $ 46,725 $ 240,901 $ 148,680 $ 43,299 $ 54,007 $ 245,986 Parts 50,528 14,072 12,179 76,779 44,923 13,586 12,279 70,788 Service 22,316 6,497 1,883 30,696 18,885 6,674 1,994 27,553 Other 823 628 102 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 Rental 548 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, 2020 Nine Months Ended October 31, 2019 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 396,759 $ 130,497 $ 134,804 $ 662,060 $ 367,754 $ 137,742 $ 148,880 $ 654,376 Parts 123,078 38,548 33,221 194,847 109,952 39,356 32,620 181,928 Service 59,466 19,514 5,302 84,282 51,869 20,163 5,183 77,215 Other 2,385 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 Rental 1,638 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 Unbilled Receivables and Deferred Revenue Unbilled receivables amounted to $16.8 million and $13.9 million as of October 31, 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 $13.7 million and $39.5 million as of October 31, 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 October 31, 2020 and 2019, the Company recognized $3.9 million and $2.5 million, respectively, of revenue that was included in the deferred revenue balance as of January 31, 2020 and January 31, 2019, respectively. During the nine months ended October 31, 2020 and 2019, the Company recognized $40.9 million and $43.7 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 and nine months ended October 31, 2020 and 2019 from performance obligations satisfied in previous periods. The following is a summary of deferred revenue as of October 31, 2020 and January 31, 2020: October 31, 2020 January 31, 2020 (in thousands) Deferred revenue from contracts with customers $ 13,687 $ 39,512 Deferred revenue from rental and other contracts 1,021 1,456 $ 14,708 $ 40,968 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. |
RECEIVABLES (Notes)
RECEIVABLES (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | NOTE 4 - RECEIVABLES The Company provides an allowance for expected credit losses on its nonrental receivables. 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 United States and are specifically excluded from the accounting guidance 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. October 31, 2020 January 31, 2020 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 31,606 $ 36,400 Unbilled receivables 16,796 13,944 Less allowance for expected credit losses 3,053 2,943 45,349 47,401 Trade receivables due from finance companies 11,967 12,352 Trade and unbilled receivables from rental contracts Trade receivables 6,060 7,381 Unbilled receivables 1,130 861 Less allowance for expected credit losses 1,957 2,180 5,233 6,062 Other receivables Due from manufacturers 9,992 5,763 Other 990 1,198 10,982 6,961 Receivables, net of allowance for expected credit losses $ 73,531 $ 72,776 Following is a summary of allowance for credit losses on trade and unbilled accounts receivable by segment: Agriculture Construction International Total Balance at February 1, 2020 $ 181 $ 1,016 $ 1,746 $ 2,943 Current expected credit loss provision 14 113 226 353 Write-offs charged against allowance 5 71 133 209 Credit loss recoveries collected 40 4 6 50 Foreign exchange impact — — (29) (29) Balance at April 30, 2020 230 1,062 1,816 3,108 Current expected credit loss provision 16 95 265 376 Write-offs charged against allowance 47 78 98 223 Credit loss recoveries collected 9 — — 9 Foreign exchange impact — — 23 23 Balance at July 31, 2020 208 1,079 2,006 3,293 Current expected credit loss provision 30 12 (256) (215) Write-offs charged against allowance 44 21 48 114 Credit loss recoveries collected 2 18 — 20 Foreign exchange impact — — 67 67 Balance at October 31, 2020 $ 196 $ 1,088 $ 1,769 $ 3,053 The following table presents impairment losses (recoveries) on receivables arising from sales contracts with customers and receivables arising from rental contracts: Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) Impairment losses (recoveries) on: Receivables from sales contracts $ (213) $ 75 $ 307 $ 1,061 Receivables from rental contracts (59) 282 92 779 $ (272) $ 357 $ 399 $ 1,840 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES October 31, 2020 January 31, 2020 (in thousands) New equipment $ 322,207 $ 358,339 Used equipment 127,605 157,535 Parts and attachments 81,302 79,813 Work in process 1,632 1,707 $ 532,746 $ 597,394 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT October 31, 2020 January 31, 2020 (in thousands) Rental fleet equipment $ 94,220 $ 104,133 Machinery and equipment 23,478 22,682 Vehicles 55,416 51,850 Furniture and fixtures 43,169 41,720 Land, buildings, and leasehold improvements 79,761 70,408 296,044 290,793 Less accumulated depreciation 147,524 145,231 $ 148,520 $ 145,562 The Company reviews its long-lived assets for potential impairment whenever events or circumstances indicate that the carrying value of the long-lived asset (or asset group) may not be recoverable. During the three months ended October 31, 2020, the Company determined, based on changing expectations regarding the future use of certain long-lived assets, that the $0.8 million carrying value of these assets, may not be recoverable. The Company performed an impairment assessment of this asset group and, as a result, recognized an impairment charge of $0.2 million within its Agriculture segment for the three months ended October 31, 2020. For the nine months ended October 31, 2020, the Company recognized a total impairment charge of $0.2 million within its Construction segment and a $0.2 million impairment charge within its Agriculture segment. For the three and nine months ended October 31, 2019, the Company recognized an impairment charge of $0.1 million and $0.2 million, respectively, within its Construction segment. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other | 9 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | INTANGIBLE ASSETS AND GOODWILL Goodwill The following is a summary of the changes in goodwill, by segment, for the period ended October 31, 2020: Agriculture Construction International Total (in thousands) January 31, 2020 $ 949 $ — $ 1,378 $ 2,327 Arising from business combinations 484 — — 484 Foreign currency translation — — 75 75 Impairment — — (1,453) (1,453) October 31, 2020 $ 1,433 $ — $ — $ 1,433 The Company performs at least an annual impairment testing of goodwill and, due to ongoing losses and the impact of COVID-19, an interim impairment test was performed in the third quarter of fiscal 2021 for our Germany reporting unit. Under the impairment test, the fair value of the reporting unit is estimated using an income approach in which a discounted cash flow analysis is utilized, which includes a five-year forecast of future operating performance for the reporting unit and a terminal value that estimates sustained long-term growth. The discount rate applied to the estimated future cash flows reflects an estimate of the weighted-average cost of capital of comparable companies. The quantitative goodwill impairment analysis for the Germany reporting unit indicated that the estimated fair value of the reporting unit was less than the carrying value. T he implied fair value of the goodwill associated with the reporting unit approximated zero, thus requiring a full impairment charge of the goodwill carrying value of the reporting unit. A s such, a goodwill impairment charge of $1.5 million was recognized for the three and nine months ended October 31, 2020, which is included in the impairment of goodwill amount in the consolidated statements of operations. The impairment charges arose as the result of lowered expectations of the future financial performance of this reporting unit. The Company's assumptions about future financial performance were impacted by the current year operating performance of this reporting unit and by the anticipated impact that challenging industry conditions, including COVID-19, may have on the future financial performance of this reporting unit. There were no goodwill impairment charges for the three and nine months ended October 31, 2019 . Indefinite-Lived Intangible Assets The Company's indefinite-lived intangible assets consist of distribution rights assets. The following is a summary of the changes in indefinite-lived intangible assets, by segment, for the period ended October 31, 2020: Agriculture Construction International Total (in thousands) January 31, 2020 $ 6,070 $ 72 $ 1,870 $ 8,012 Arising from business combinations 195 — — 195 Foreign currency translation — — 97 97 Impairment — — (858) (858) October 31, 2020 $ 6,265 $ 72 $ 1,109 $ 7,446 The Company performs at least an annual impairment testing of its indefinite-lived distribution rights intangible assets and, due to ongoing losses and the impact of COVID-19, an interim test was completed in the third quarter of fiscal 2021 for our Germany assets. Under the impairment test, the fair value of distribution rights intangible assets is estimated based on a multi-period excess earnings model, an income approach. This model allocates future estimated earnings of the store/complex amongst working capital, fixed assets and other intangible assets of the store/complex and any remaining earnings (the "excess earnings") are allocated to the distribution rights intangible assets. The earnings allocated to the distribution rights are then discounted to arrive at the present value of the future estimated excess earnings, which represents the estimated fair value of the distribution rights intangible asset. The discount rate applied reflects the Company's estimate of the weighted-average cost of capital of comparable companies plus an additional risk premium to reflect the additional risk inherent in the distribution right asset. The results of the Company's impairment testing for the Germany distribution rights intangible assets for the quarter ended October 31, 2020, indicated that the estimated fair value of the tested distribution rights was below the carrying value of such assets, thus requiring an impairment to be recognized. Impairment charges of $0.9 million were recognized for the three and nine months ended October 31, 2020 and included in the Impairment of Intangibles and Long-lived assets amount in the consolidated statements of operations. The impairment charges arose as the result of lowered expectations of the future financial performance of this reporting unit. The Company's assumptions about future financial performance were impacted by the current year operating performance of this reporting unit and by the anticipated impact that challenging industry conditions, including COVID-19, may have on the future financial performance of this reporting unit. There were no indefinite-lived intangible impairment charges for the three and nine months ended October 31, 2019 |
LINES OF CREDIT _ FLOORPLAN PAY
LINES OF CREDIT / FLOORPLAN PAYABLE | 9 Months Ended |
Oct. 31, 2020 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT / FLOORPLAN PAYABLE | LINES OF CREDIT On April 3, 2020, the Company entered into a Third Amended and Restated Credit Agreement (the "Bank Syndicate Agreement") with a group of banks, that amended and restated the Company's prior $200.0 million credit facility, dated October 28, 2015. The Bank Syndicate Agreement provides for a secured credit facility in an amount up to $250.0 million, consisting of a $185.0 million floorplan facility (the "Floorplan Loan") and a $65.0 million operating line (the "Revolver Loan"), and changed the interest rates as compared to the prior credit facility, amongst other things. The amounts available under the Bank Syndicate Agreement are subject to base calculations and reduced by outstanding standby letters of credit and certain reserves. The Bank Syndicate Agreement includes a variable interest rate on outstanding balances, charges a 0.25% non-usage fee on the average monthly unused amount, and requires monthly payments of accrued interest. The Company elects at the time of any advance to choose a Base Rate Loan or a LIBOR Rate Loan. The LIBOR Rate is based upon one month, two month, or three month LIBOR, as chosen by the Company, but in no event shall the LIBOR Rate be less than 0.50%. The Base Rate is the greater of (a) the prime rate of interest announced, from time to time, by Bank of America; (b) the Federal Funds Rate plus 0.5%, or (c) one month LIBOR plus 1%, but in no event shall the Base Rate be less than zero. The applicable margin rate is determined based on excess availability under the Bank Syndicate Agreement and ranges from 0.5% to 1.0% for Base Rate Loans and 1.5% to 2.0% for LIBOR Rate Loans. The Bank Syndicate Agreement does not obligate the Company to maintain financial covenants, except in the event that excess availability (each as defined in the Bank Syndicate Agreement) is less than 15% of the lower of the borrowing base or the size of the maximum credit line, at which point the Company is required to maintain a fixed charge coverage ratio of at least 1.10:1.00. The Bank Syndicate Agreement includes various restrictions on the Company and its subsidiaries’ activities, including, under certain conditions, limitations on the Company’s ability to make certain cash payments including cash dividends and stock repurchases, issuance of equity instruments, acquisitions and divestitures, and entering into new indebtedness transactions. The Bank Syndicate Agreement matures on April 3, 2025. The Floorplan Loan under the Bank Syndicate Agreement is used to finance equipment inventory purchases. Amounts outstanding are recorded as floorplan payable, within current liabilities on the consolidated balance sheets, as the Company intends to repay amounts borrowed within one year. The Revolver Loan under the Bank Syndicate Agreement is used to finance rental fleet equipment and for general working capital requirements of the Company. Amounts outstanding are recorded as long-term debt, within long-term liabilities on the consolidated balance sheets, as the Company does not have the intention or obligation to repay amounts borrowed within one year. As of October 31, 2020, the Company had floorplan lines of credit totaling $765.0 million, which is primarily comprised of three significant floorplan lines of credit: (i) a $450.0 million credit facility with CNH Industrial, (ii) a $185.0 million line of credit under the Bank Syndicate Agreement, and (iii) a $60.0 million credit facility with DLL Finance LLC. As of October 31, 2020 and January 31, 2020, the Company's outstanding balances of floorplan lines of credit consisted of the following: October 31, 2020 January 31, 2020 (in thousands) CNH Industrial $ 138,588 $ 187,690 Bank Syndicate Agreement Floorplan Loan 49,750 — Wells Fargo Floorplan Payable Line — 82,700 DLL Finance 19,348 30,657 Other outstanding balances with manufacturers and non-manufacturers 80,151 70,725 $ 287,837 $ 371,772 |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 9 Months Ended |
Oct. 31, 2020 | |
SENIOR CONVERTIBLE NOTES | |
Debt Disclosure [Text Block] | SENIOR CONVERTIBLE NOTES The Company's senior convertible notes matured, and the outstanding principal balance of $45.6 million was repaid in full, on May 1, 2019, and as such there was no interest expense for the three and nine months ended October 31, 2020 and three months ended October 31, 2019. For the nine months ended October 31, 2019, the Company recognized $0.8 million in interest expense associated with its senior convertible notes. |
LONG TERM DEBT (Notes)
LONG TERM DEBT (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | LONG TERM DEBT The following is a summary of long-term debt as of October 31, 2020 and January 31, 2020: Description Maturity Dates Interest Rates October 31, 2020 January 31, 2020 (in thousands) Mortgage loans, secured Various through May 2039 2.09% to 5.1% $ 23,015 $ 15,252 Sale-leaseback financing obligations Various through December 2030 3.4% to 10.3% 16,832 17,781 Bank Syndicate Agreement - Revolver Loan April 2025 2.25% 10,000 10,000 Vehicle loans, secured Various through June 2026 1.7% to 3.94% 9,538 7,468 Other January 2021 2.6% 147 1,067 Total debt 59,532 51,568 Less: current maturities 4,423 13,779 Long-term debt, net $ 55,109 $ 37,789 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Oct. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company holds derivative instruments for the purpose of minimizing exposure to fluctuations in foreign currency exchange rates to which the Company is exposed in the normal course of its operations. The Company uses foreign currency forward contracts to hedge the effects of fluctuations in exchange rates on outstanding intercompany loans. The Company does not formally designate and document such derivative instruments as hedging instruments; however, the instruments are an effective economic hedge of the underlying foreign currency exposure. Both the gain or loss on the derivative instrument and the offsetting gain or loss on the underlying intercompany loan are recognized in earnings immediately, thereby eliminating or reducing the impact of foreign currency exchange rate fluctuations on net income. The Company's foreign currency forward contracts generally have three-month maturities, maturing on the last day of each fiscal quarter. No foreign currency contracts were outstanding as of January 31, 2020. The notional value of outstanding foreign currency contracts as of October 31, 2020 was $7.0 million. As of October 31, 2020, the fair value of the Company's outstanding derivative instruments was not material. Derivative instruments recognized as assets are recorded in prepaid expenses and other in the consolidated balance sheets, and derivative instruments recognized as liabilities are recorded in accrued expenses and other in the consolidated balance sheets. The following table sets forth the gains and losses recognized in income from the Company’s derivative instruments for the three and nine months ended October 31, 2020 and 2019. Gains and losses are recognized in Interest and other income (expense) in the consolidated statements of operations: Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) Foreign currency contract gain (loss) $ 471 $ (3) $ 660 $ 365 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the periods ended October 31, 2020 and October 31, 2019: Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2020 $ (5,931) $ 2,711 $ (3,220) Other comprehensive loss (528) — (528) Balance, April 30, 2020 (6,459) 2,711 (3,748) Other comprehensive income 778 — 778 Balance, July 31, 2020 (5,681) 2,711 (2,970) Other comprehensive income 2,181 — 2,181 Balance, October 31, 2020 $ (3,500) $ 2,711 $ (789) Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2019 $ (5,051) $ 2,711 $ (2,340) Other comprehensive loss (771) — (771) Balance, April 30, 2019 (5,822) 2,711 (3,111) Other comprehensive income 1,012 — 1,012 Balance, July 31, 2019 (4,810) 2,711 (2,099) Other comprehensive loss (2,650) — (2,650) Balance, October 31, 2019 $ (7,460) $ 2,711 $ (4,749) |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Lease Disclosure [Text Block] | LEASES As Lessee The Company, as lessee, leases certain of its dealership locations, office space, equipment and vehicles under operating and financing classified leasing arrangements. The Company has elected to not record leases with a lease term at commencement of 12 months or less on the consolidated balance sheet; such leases are expensed on a straight-line basis over the lease term. Many real estate lease agreements require the Company to pay the real estate taxes on the properties during the lease term and require that the Company maintain property insurance on each of the leased premises. Such payments are deemed to be variable lease payments as the amounts may change during the term of the lease. Certain leases include renewal options that can extend the lease term for periods of one to ten years. Most real estate leases grant the Company a right of first refusal or other options to purchase the real estate, generally at fair market value, either during the lease term or at its conclusion. In most cases, the Company has not included these renewal and purchase options within the measurement of the right-of-use asset and lease liability. Most often, the Company cannot readily determine the interest rate implicit in the lease and thus applies its incremental borrowing rate to capitalize the right-of-use asset and lease liability. The Company estimates its incremental borrowing rate by incorporating considerations of lease term, asset class and lease currency and geographical market. The Company's lease agreements do not contain any material non-lease components, residual value guarantees or material restrictive covenants. The Company subleases a small number of real estate assets to third-parties, primarily dealership locations for which it has ceased operations. All sublease arrangements are classified as operating leases. The components of lease expense were as follows: Three Months Ended October 31, Nine Months Ended October 31, Classification 2020 2019 2020 2019 (in thousands) (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 395 $ 373 $ 1,176 $ 1,080 Interest on lease liabilities Other interest expense 108 143 351 421 Operating lease cost Operating expenses and rental and other cost of revenue 4,541 4,613 13,329 14,154 Short-term lease cost Operating expenses 81 41 270 201 Variable lease cost Operating expenses 739 689 2,109 2,024 Sublease income Interest and other income (expense) (136) (146) (419) (468) $ 5,728 $ 5,713 $ 16,816 $ 17,412 Right-of-use lease assets and lease liabilities consist of the following: Classification October 31, 2020 January 31, 2020 (in thousands) Assets Operating lease assets Operating lease assets $ 81,401 $ 88,281 Finance lease assets (a) Property and equipment, net of accumulated depreciation 5,478 6,297 Total leased assets $ 86,879 $ 94,578 Liabilities Current Operating Current operating lease liabilities $ 12,373 $ 12,259 Finance Accrued expenses and other 1,712 1,708 Noncurrent Operating Operating lease liabilities 80,782 88,387 Finance Other long-term liabilities 3,121 4,103 Total lease liabilities $ 97,988 $ 106,457 (a) Finance lease assets are recorded net of accumulated amortization of $2.6 million as of October 31, 2020 and $1.5 million as of January 31, 2020. Maturities of lease liabilities as of October 31, 2020 are as follows: Operating Finance Leases Leases Total Fiscal Year Ended January 31, (in thousands) 2021 (remainder) $ 4,481 $ 548 $ 5,029 2022 17,307 1,923 19,230 2023 16,248 1,269 17,517 2024 15,150 530 15,680 2025 13,998 424 14,422 2026 13,835 312 14,147 Thereafter 34,720 1,084 35,804 Total lease payments 115,739 6,090 121,829 Less: Interest 22,584 1,257 23,841 Present value of lease liabilities $ 93,155 $ 4,833 $ 97,988 The weighted-average lease term and discount rate as of October 31, 2020 are as follows: October 31, 2020 Weighted-average remaining lease term (years): Operating leases 7.4 Financing leases 5.0 Weighted-average discount rate: Operating leases 6.0 % Financing leases 9.5 % As Lessor The Company rents equipment to customers, primarily in the Construction segment, on a short-term basis. Our rental arrangements generally do not include minimum, noncancellable periods as the lessee is entitled to cancel the arrangement at any time. Most often, our rental arrangements extend for periods ranging from a few days to a few months. We maintain a fleet of dedicated rental assets within our Construction segment and, within all segments, may also provide short-term rentals of certain equipment inventory assets. Certain rental arrangements may include rent-to-purchase options whereby customers are given a period of time to exercise an option to purchase the related equipment at an established price with any rental payments paid applied to reduce the purchase price. All of the Company's leasing arrangements as lessor are classified as operating leases. Rental revenue is recognized on a straight-line basis over the rental period. Rental revenue includes amounts charged for loss and damage insurance on rented equipment. In most cases, our rental arrangements include non-lease components, including delivery and pick-up services. The Company accounts for these non-lease components separate from the rental arrangement and recognizes the revenue associated with these components when the service is performed. The Company has elected to exclude from rental revenue all sales, value added and other taxes collected from our customers concurrent with our rental activities. Rental billings most often occur on a monthly basis and may be billed in advance or in arrears, thus creating unbilled rental receivables or deferred rental revenue amounts. The Company manages the residual value risk of its rented assets by (i) monitoring the quality, aging and anticipated retail market value of our rental fleet assets to determine the optimal period to remove an asset from the rental fleet, (ii) maintaining the quality of our assets through on-site parts and service support and (iii) requiring physical damage insurance of our lessee customers. We primarily dispose of our rental assets through the sale of the asset by our retail sales force. Revenue generated from leasing activities is disclosed, by segment, in Note 3. The following is the balance of our dedicated rental fleet assets, included in Property and equipment, net of accumulated depreciation in the consolidated balance sheet, of our Construction segment as of October 31, 2020 and January 31, 2020: October 31, 2020 January 31, 2020 (in thousands) Rental fleet equipment $ 94,220 $ 104,133 Less accumulated depreciation 34,970 42,076 $ 59,250 $ 62,057 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE MEASUREMENTS As of October 31, 2020 and January 31, 2020, the fair value of the Company's foreign currency contracts, which are either assets or liabilities measured at fair value on a recurring basis, was not material. These foreign currency contracts were valued using a discounted cash flow analysis, which is an income approach, utilizing readily observable market data as inputs, which is classified as a Level 2 fair value measurement. The Company also valued certain long-lived assets at fair value on a non-recurring basis as of October 31, 2020, A pril 30, 2020, and January 31, 2020 as part of its long-lived asset impairment testing. The estimated fair value of such assets as of October 31, 2020, April 30, 2020, and January 31, 2020 was $0.5 million, $0.4 million, and $2.8 million, respectively. Fair value was estimated through an income approach incorporating both observable and unobservable inputs, and are deemed to be Level 3 fair value inputs. The most significant unobservable inputs include forecasted net cash generated from the use of the assets and the discount rate applied to such cash flows to arrive at a fair value estimate. In addition, in certain instances the Company estimated the fair value of long-lived assets to approximate zero as no future cash flows were assumed to be generated from the use of such assets and the expected value to be realized upon disposition was deemed to be nominal. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate was 28.3% and 33.8% for the three months ended October 31, 2020 and October 31, 2019 and was 26.5% and 31.3% for the nine months ended October 31, 2020 and October 31, 2019. Our effective tax rate differs from the domestic federal statutory tax rate due to the impact of state taxes, the mix of domestic and foreign income or losses, the impact of the recognition of valuation allowance on certain of |
BUSINESS COMBINATIONS (Notes)
BUSINESS COMBINATIONS (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Fiscal 2021 On May 4, 2020, the Company acquired certain assets of HorizonWest Inc. This acquired CaseIH agriculture dealership complex consisted of three agriculture equipment stores in Scottsbluff and Sidney, Nebraska and Torrington, Wyoming, which expanded the Company's agriculture presence in Nebraska and into Wyoming. The total consideration transferred for the acquired business was $6.8 million paid in cash. In connection with the acquisition, the Company acquired from CNH Industrial and certain other manufacturers equipment and parts inventory previously owned by HorizonWest Inc. Upon acquiring such inventories, the Company was offered floorplan financing by the manufacturer. In total, the Company acquired inventory and recognized a corresponding financing liability of $2.7 million. The recognition of these inventories and the associated financing liabilities are not included as part of the accounting for the business combination. Fiscal 2020 On January 1, 2019, the Company, through its German subsidiary, acquired certain assets of ESB Agrartechnik GmbH ("ESB"). ESB is a full-service agriculture equipment dealership in Eastern Germany. Our acquisition of ESB further expanded our presence in the German market. The total consideration transferred for the acquired business was $3.0 million paid in cash. This acquisition was recognized in the fiscal year ended January 31, 2020 as the acquisition occurred within our International segment in which all entities maintain a calendar year reporting period. On October 1, 2019, the Company acquired certain assets of Uglem-Ness Co. The acquired business consisted of one Case IH agriculture equipment store in Northwood, North Dakota. The service area is contiguous to the Company's existing locations in Grand Forks and Casselton, North Dakota and Ada, Minnesota. The total consideration transferred for the acquired business was $10.9 million paid in cash. In connection with the acquisition, the Company acquired from CNH Industrial and certain other manufacturers equipment and parts inventory previously owned by Uglem-Ness Co. Upon acquiring such inventories, the Company was offered floorplan financing by the manufacturer. In total, the Company acquired inventory and recognized a corresponding financing liability of $7.4 million. The recognition of these inventories and the associated financing liabilities are not included as part of the accounting for the business combination. Purchase Price Allocation Each of the above acquisitions has been accounted for under the acquisition method of accounting, which requires the Company to estimate the acquisition date fair value of the assets acquired and liabilities assumed. The accounting for all business combinations was complete as of October 31, 2020. The following table presents the aggregate purchase price allocations for all acquisitions completed during the nine months ended October 31, 2020 and twelve months ended January 31, 2020: October 31, 2020 January 31, 2020 (in thousands) Assets acquired: Cash $ 1 $ — Receivables — 440 Inventories 4,260 6,466 Prepaid expenses and other 48 — Property and equipment 1,752 3,810 Operating lease assets 2,006 — Intangible assets 245 1,973 Goodwill 484 1,198 8,796 13,887 Liabilities assumed: Current operating lease liabilities 159 — Operating lease liabilities 1,847 — 2,006 — Net assets acquired $ 6,790 $ 13,887 Goodwill recognized by segment: Agriculture $ 484 $ 699 Construction — — International — 499 Goodwill expected to be deductible for tax purposes $ 484 $ 1,198 The recognition of goodwill in the above business combinations arose from the acquisition of an assembled workforce and anticipated synergies expected to be realized. For the business combinations occurring during the twelve months ended January 31, 2020, the Company recognized a customer relationship intangible asset of $0.2 million, a non-competition |
CONTINGENCIES (Notes)
CONTINGENCIES (Notes) | 9 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 17 - CONTINGENCIES On October 11, 2017, the Romania Competition Council (“RCC”) initiated an administrative investigation of the Romanian Association of Manufacturers and Importers of Agricultural Machinery (“APIMAR”) and all its members, including Titan Machinery Romania. The RCC's investigation involves whether the APIMAR members engaged in anti-competitive practices in their sales of agricultural machinery not involving European Union ("EU") subvention funding programs, by referring to the published sales prices governing EU subvention funded transactions, which prices are mandatorily disclosed to and published by AFIR, a Romanian government agency that oversees the EU subvention funding programs in Romania. The investigation is in a preliminary stage and the Company is currently unable to predict its outcome or reasonably estimate any potential loss that may result from the investigation. The Company is also engaged in other legal proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Company's opinion that the outcome of these various legal actions and claims will not have a material impact on the financial position, results of operations or cash flows. These matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. |
SEGMENT INFORMATION AND OPERATI
SEGMENT INFORMATION AND OPERATING RESULTS | 9 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND OPERATING RESULTS | SEGMENT INFORMATION The Company has three reportable segments: Agriculture, Construction and International. Revenue between segments is immaterial. The Company retains various unallocated income/(expense) items and assets at the general corporate level, which the Company refers to as “Shared Resources” in the table below. Shared Resources assets primarily consist of cash and property and equipment. Certain financial information for each of the Company’s business segments is set forth below. Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) (in thousands) Revenue Agriculture $ 220,625 $ 214,073 $ 583,326 $ 533,538 Construction 79,030 78,031 216,862 232,813 International 61,217 68,832 174,357 187,856 Total $ 360,872 $ 360,936 $ 974,545 $ 954,207 Income (Loss) Before Income Taxes Agriculture $ 13,575 $ 10,259 $ 26,490 $ 18,312 Construction 1,448 347 (50) (541) International (2,424) 2,061 (3,136) 2,783 Segment income before income taxes 12,599 12,667 23,304 20,554 Shared Resources 1,225 (258) 1,961 (1,233) Total $ 13,824 $ 12,409 $ 25,265 $ 19,321 October 31, 2020 January 31, 2020 (in thousands) Total Assets Agriculture $ 421,556 $ 444,942 Construction 232,236 275,645 International 189,239 191,513 Segment assets 843,031 912,100 Shared Resources 57,825 63,243 Total $ 900,856 $ 975,343 |
BUSINESS ACTIVITY AND SIGNIFI_2
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. |
Estimates | 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 | 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. |
New Accounting Pronouncements | 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. |
Description of New Accounting Pronouncements Not yet Adopted | 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted EPS: Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (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 outstanding 22,132 21,973 22,089 21,936 Plus: incremental shares from vesting of restricted stock units 5 3 2 6 Diluted weighted-average common shares outstanding 22,137 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 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables present our revenue disaggregated by revenue source and segment: Three Months Ended October 31, 2020 Three Months Ended October 31, 2019 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 146,410 $ 47,766 $ 46,725 $ 240,901 $ 148,680 $ 43,299 $ 54,007 $ 245,986 Parts 50,528 14,072 12,179 76,779 44,923 13,586 12,279 70,788 Service 22,316 6,497 1,883 30,696 18,885 6,674 1,994 27,553 Other 823 628 102 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 Rental 548 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, 2020 Nine Months Ended October 31, 2019 Agriculture Construction International Total Agriculture Construction International Total (in thousands) (in thousands) Equipment $ 396,759 $ 130,497 $ 134,804 $ 662,060 $ 367,754 $ 137,742 $ 148,880 $ 654,376 Parts 123,078 38,548 33,221 194,847 109,952 39,356 32,620 181,928 Service 59,466 19,514 5,302 84,282 51,869 20,163 5,183 77,215 Other 2,385 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 Rental 1,638 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 |
Contract with Customer Liability [Table Text Block] | October 31, 2020 January 31, 2020 (in thousands) Deferred revenue from contracts with customers $ 13,687 $ 39,512 Deferred revenue from rental and other contracts 1,021 1,456 $ 14,708 $ 40,968 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | October 31, 2020 January 31, 2020 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 31,606 $ 36,400 Unbilled receivables 16,796 13,944 Less allowance for expected credit losses 3,053 2,943 45,349 47,401 Trade receivables due from finance companies 11,967 12,352 Trade and unbilled receivables from rental contracts Trade receivables 6,060 7,381 Unbilled receivables 1,130 861 Less allowance for expected credit losses 1,957 2,180 5,233 6,062 Other receivables Due from manufacturers 9,992 5,763 Other 990 1,198 10,982 6,961 Receivables, net of allowance for expected credit losses $ 73,531 $ 72,776 |
Impaired Financing Receivables [Table Text Block] | The following table presents impairment losses (recoveries) on receivables arising from sales contracts with customers and receivables arising from rental contracts: Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) Impairment losses (recoveries) on: Receivables from sales contracts $ (213) $ 75 $ 307 $ 1,061 Receivables from rental contracts (59) 282 92 779 $ (272) $ 357 $ 399 $ 1,840 |
Accounts Receivable, Allowance for Credit Loss | Following is a summary of allowance for credit losses on trade and unbilled accounts receivable by segment: Agriculture Construction International Total Balance at February 1, 2020 $ 181 $ 1,016 $ 1,746 $ 2,943 Current expected credit loss provision 14 113 226 353 Write-offs charged against allowance 5 71 133 209 Credit loss recoveries collected 40 4 6 50 Foreign exchange impact — — (29) (29) Balance at April 30, 2020 230 1,062 1,816 3,108 Current expected credit loss provision 16 95 265 376 Write-offs charged against allowance 47 78 98 223 Credit loss recoveries collected 9 — — 9 Foreign exchange impact — — 23 23 Balance at July 31, 2020 208 1,079 2,006 3,293 Current expected credit loss provision 30 12 (256) (215) Write-offs charged against allowance 44 21 48 114 Credit loss recoveries collected 2 18 — 20 Foreign exchange impact — — 67 67 Balance at October 31, 2020 $ 196 $ 1,088 $ 1,769 $ 3,053 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | October 31, 2020 January 31, 2020 (in thousands) New equipment $ 322,207 $ 358,339 Used equipment 127,605 157,535 Parts and attachments 81,302 79,813 Work in process 1,632 1,707 $ 532,746 $ 597,394 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | PROPERTY AND EQUIPMENT October 31, 2020 January 31, 2020 (in thousands) Rental fleet equipment $ 94,220 $ 104,133 Machinery and equipment 23,478 22,682 Vehicles 55,416 51,850 Furniture and fixtures 43,169 41,720 Land, buildings, and leasehold improvements 79,761 70,408 296,044 290,793 Less accumulated depreciation 147,524 145,231 $ 148,520 $ 145,562 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of the changes in goodwill, by segment, for the period ended October 31, 2020: Agriculture Construction International Total (in thousands) January 31, 2020 $ 949 $ — $ 1,378 $ 2,327 Arising from business combinations 484 — — 484 Foreign currency translation — — 75 75 Impairment — — (1,453) (1,453) October 31, 2020 $ 1,433 $ — $ — $ 1,433 |
Schedule of Indefinite-Lived Intangible Assets | The Company's indefinite-lived intangible assets consist of distribution rights assets. The following is a summary of the changes in indefinite-lived intangible assets, by segment, for the period ended October 31, 2020: Agriculture Construction International Total (in thousands) January 31, 2020 $ 6,070 $ 72 $ 1,870 $ 8,012 Arising from business combinations 195 — — 195 Foreign currency translation — — 97 97 Impairment — — (858) (858) October 31, 2020 $ 6,265 $ 72 $ 1,109 $ 7,446 |
LINES OF CREDIT _ FLOORPLAN P_2
LINES OF CREDIT / FLOORPLAN PAYABLE Summary of Outstanding Amounts (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | October 31, 2020 January 31, 2020 (in thousands) CNH Industrial $ 138,588 $ 187,690 Bank Syndicate Agreement Floorplan Loan 49,750 — Wells Fargo Floorplan Payable Line — 82,700 DLL Finance 19,348 30,657 Other outstanding balances with manufacturers and non-manufacturers 80,151 70,725 $ 287,837 $ 371,772 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Long Term Debt Excluding Senior Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The following is a summary of long-term debt as of October 31, 2020 and January 31, 2020: Description Maturity Dates Interest Rates October 31, 2020 January 31, 2020 (in thousands) Mortgage loans, secured Various through May 2039 2.09% to 5.1% $ 23,015 $ 15,252 Sale-leaseback financing obligations Various through December 2030 3.4% to 10.3% 16,832 17,781 Bank Syndicate Agreement - Revolver Loan April 2025 2.25% 10,000 10,000 Vehicle loans, secured Various through June 2026 1.7% to 3.94% 9,538 7,468 Other January 2021 2.6% 147 1,067 Total debt 59,532 51,568 Less: current maturities 4,423 13,779 Long-term debt, net $ 55,109 $ 37,789 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gains and losses recognized on derivative instruments | The following table sets forth the gains and losses recognized in income from the Company’s derivative instruments for the three and nine months ended October 31, 2020 and 2019. Gains and losses are recognized in Interest and other income (expense) in the consolidated statements of operations: Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) Foreign currency contract gain (loss) $ 471 $ (3) $ 660 $ 365 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME AOCI (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the periods ended October 31, 2020 and October 31, 2019: Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2020 $ (5,931) $ 2,711 $ (3,220) Other comprehensive loss (528) — (528) Balance, April 30, 2020 (6,459) 2,711 (3,748) Other comprehensive income 778 — 778 Balance, July 31, 2020 (5,681) 2,711 (2,970) Other comprehensive income 2,181 — 2,181 Balance, October 31, 2020 $ (3,500) $ 2,711 $ (789) Foreign Currency Translation Adjustment Net Investment Hedging Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2019 $ (5,051) $ 2,711 $ (2,340) Other comprehensive loss (771) — (771) Balance, April 30, 2019 (5,822) 2,711 (3,111) Other comprehensive income 1,012 — 1,012 Balance, July 31, 2019 (4,810) 2,711 (2,099) Other comprehensive loss (2,650) — (2,650) Balance, October 31, 2019 $ (7,460) $ 2,711 $ (4,749) |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows: Three Months Ended October 31, Nine Months Ended October 31, Classification 2020 2019 2020 2019 (in thousands) (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 395 $ 373 $ 1,176 $ 1,080 Interest on lease liabilities Other interest expense 108 143 351 421 Operating lease cost Operating expenses and rental and other cost of revenue 4,541 4,613 13,329 14,154 Short-term lease cost Operating expenses 81 41 270 201 Variable lease cost Operating expenses 739 689 2,109 2,024 Sublease income Interest and other income (expense) (136) (146) (419) (468) $ 5,728 $ 5,713 $ 16,816 $ 17,412 |
Summary of Lease Assets and Liabilities [Table Text Block] | Right-of-use lease assets and lease liabilities consist of the following: Classification October 31, 2020 January 31, 2020 (in thousands) Assets Operating lease assets Operating lease assets $ 81,401 $ 88,281 Finance lease assets (a) Property and equipment, net of accumulated depreciation 5,478 6,297 Total leased assets $ 86,879 $ 94,578 Liabilities Current Operating Current operating lease liabilities $ 12,373 $ 12,259 Finance Accrued expenses and other 1,712 1,708 Noncurrent Operating Operating lease liabilities 80,782 88,387 Finance Other long-term liabilities 3,121 4,103 Total lease liabilities $ 97,988 $ 106,457 (a) Finance lease assets are recorded net of accumulated amortization of $2.6 million as of October 31, 2020 and $1.5 million as of January 31, 2020. |
Summary of Lease Maturities [Table Text Block] | Maturities of lease liabilities as of October 31, 2020 are as follows: Operating Finance Leases Leases Total Fiscal Year Ended January 31, (in thousands) 2021 (remainder) $ 4,481 $ 548 $ 5,029 2022 17,307 1,923 19,230 2023 16,248 1,269 17,517 2024 15,150 530 15,680 2025 13,998 424 14,422 2026 13,835 312 14,147 Thereafter 34,720 1,084 35,804 Total lease payments 115,739 6,090 121,829 Less: Interest 22,584 1,257 23,841 Present value of lease liabilities $ 93,155 $ 4,833 $ 97,988 |
Weighted-Average Lease Term and Discount Rate [Table Text Block] | The weighted-average lease term and discount rate as of October 31, 2020 are as follows: October 31, 2020 Weighted-average remaining lease term (years): Operating leases 7.4 Financing leases 5.0 Weighted-average discount rate: Operating leases 6.0 % Financing leases 9.5 % |
Rental Fleet Assets [Table Text Block] | The following is the balance of our dedicated rental fleet assets, included in Property and equipment, net of accumulated depreciation in the consolidated balance sheet, of our Construction segment as of October 31, 2020 and January 31, 2020: October 31, 2020 January 31, 2020 (in thousands) Rental fleet equipment $ 94,220 $ 104,133 Less accumulated depreciation 34,970 42,076 $ 59,250 $ 62,057 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table presents the aggregate purchase price allocations for all acquisitions completed during the nine months ended October 31, 2020 and twelve months ended January 31, 2020: October 31, 2020 January 31, 2020 (in thousands) Assets acquired: Cash $ 1 $ — Receivables — 440 Inventories 4,260 6,466 Prepaid expenses and other 48 — Property and equipment 1,752 3,810 Operating lease assets 2,006 — Intangible assets 245 1,973 Goodwill 484 1,198 8,796 13,887 Liabilities assumed: Current operating lease liabilities 159 — Operating lease liabilities 1,847 — 2,006 — Net assets acquired $ 6,790 $ 13,887 Goodwill recognized by segment: Agriculture $ 484 $ 699 Construction — — International — 499 Goodwill expected to be deductible for tax purposes $ 484 $ 1,198 |
SEGMENT INFORMATION AND OPERA_2
SEGMENT INFORMATION AND OPERATING RESULTS (Tables) | 9 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial information of business segments | Certain financial information for each of the Company’s business segments is set forth below. Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 (in thousands) (in thousands) Revenue Agriculture $ 220,625 $ 214,073 $ 583,326 $ 533,538 Construction 79,030 78,031 216,862 232,813 International 61,217 68,832 174,357 187,856 Total $ 360,872 $ 360,936 $ 974,545 $ 954,207 Income (Loss) Before Income Taxes Agriculture $ 13,575 $ 10,259 $ 26,490 $ 18,312 Construction 1,448 347 (50) (541) International (2,424) 2,061 (3,136) 2,783 Segment income before income taxes 12,599 12,667 23,304 20,554 Shared Resources 1,225 (258) 1,961 (1,233) Total $ 13,824 $ 12,409 $ 25,265 $ 19,321 October 31, 2020 January 31, 2020 (in thousands) Total Assets Agriculture $ 421,556 $ 444,942 Construction 232,236 275,645 International 189,239 191,513 Segment assets 843,031 912,100 Shared Resources 57,825 63,243 Total $ 900,856 $ 975,343 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 9,912 | $ 6,400 | $ 2,262 | $ 8,214 | $ 5,511 | $ (445) | $ 18,574 | $ 13,280 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 186 | 140 | 301 | 207 | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 9,726 | $ 8,074 | $ 18,273 | $ 13,073 | ||||
Basic weighted-average common shares outstanding | 22,132 | 21,973 | 22,089 | 21,936 | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 5 | 3 | 2 | 6 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 22,137 | 21,976 | 22,091 | 21,942 | ||||
Earnings Per Share, Basic | $ 0.44 | $ 0.37 | $ 0.83 | $ 0.60 | ||||
Earnings Per Share, Diluted | $ 0.44 | $ 0.37 | $ 0.83 | $ 0.60 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 360,872 | $ 360,936 | $ 974,545 | $ 954,207 | |
Unbilled Receivables, Current | 16,800 | 16,800 | $ 13,900 | ||
Deferred Revenue | 1,021 | 1,021 | $ 1,456 | ||
Contract with Customer, Liability, Revenue Recognized | (3,900) | (2,500) | (40,900) | (43,700) | |
Revenue from Contracts with Customers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 349,929 | 346,038 | 945,770 | 918,207 | |
Other Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,553 | 1,711 | 4,581 | 4,688 | |
Service Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 30,696 | 27,553 | 84,282 | 77,215 | |
Parts Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 76,779 | 70,788 | 194,847 | 181,928 | |
Rental Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 10,943 | 14,898 | 28,775 | 36,000 | |
Equipment Revenue [member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 240,901 | 245,986 | 662,060 | 654,376 | |
Operating Segments [Member] | Agricultural Segment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 220,625 | 214,073 | 583,326 | 533,538 | |
Operating Segments [Member] | Agricultural Segment [Member] | Revenue from Contracts with Customers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 220,077 | 213,323 | 581,688 | 531,823 | |
Operating Segments [Member] | Agricultural Segment [Member] | Other Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 823 | 835 | 2,385 | 2,248 | |
Operating Segments [Member] | Agricultural Segment [Member] | Service Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 22,316 | 18,885 | 59,466 | 51,869 | |
Operating Segments [Member] | Agricultural Segment [Member] | Parts Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 50,528 | 44,923 | 123,078 | 109,952 | |
Operating Segments [Member] | Agricultural Segment [Member] | Rental Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 548 | 750 | 1,638 | 1,715 | |
Operating Segments [Member] | Agricultural Segment [Member] | Equipment Revenue [member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 146,410 | 148,680 | 396,759 | 367,754 | |
Operating Segments [Member] | Construction [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 79,030 | 78,031 | 216,862 | 232,813 | |
Operating Segments [Member] | Construction [Member] | Revenue from Contracts with Customers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 68,963 | 64,385 | 190,430 | 199,499 | |
Operating Segments [Member] | Construction [Member] | Other Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 628 | 826 | 1,871 | 2,238 | |
Operating Segments [Member] | Construction [Member] | Service Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,497 | 6,674 | 19,514 | 20,163 | |
Operating Segments [Member] | Construction [Member] | Parts Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 14,072 | 13,586 | 38,548 | 39,356 | |
Operating Segments [Member] | Construction [Member] | Rental Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 10,067 | 13,646 | 26,432 | 33,314 | |
Operating Segments [Member] | Construction [Member] | Equipment Revenue [member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 47,766 | 43,299 | 130,497 | 137,742 | |
Operating Segments [Member] | International [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 61,217 | 68,832 | 174,357 | 187,856 | |
Operating Segments [Member] | International [Member] | Revenue from Contracts with Customers [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 60,889 | 68,330 | 173,652 | 186,885 | |
Operating Segments [Member] | International [Member] | Other Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 102 | 50 | 325 | 202 | |
Operating Segments [Member] | International [Member] | Service Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,883 | 1,994 | 5,302 | 5,183 | |
Operating Segments [Member] | International [Member] | Parts Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 12,179 | 12,279 | 33,221 | 32,620 | |
Operating Segments [Member] | International [Member] | Rental Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 328 | 502 | 705 | 971 | |
Operating Segments [Member] | International [Member] | Equipment Revenue [member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 46,725 | $ 54,007 | $ 134,804 | $ 148,880 |
REVENUE Unbilled Receivables (D
REVENUE Unbilled Receivables (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled Receivables, Current | $ 16,800 | $ 13,900 |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | $ 1,021 | $ 1,021 | $ 1,456 | ||
Contract with Customer, Liability, Revenue Recognized | (3,900) | $ (2,500) | (40,900) | $ (43,700) | |
Deferred Revenue from Contracts with Customers [Member] | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Deferred Revenue | $ 13,700 | $ 13,700 | $ 39,500 |
REVENUE Deferred Revenue Table
REVENUE Deferred Revenue Table (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability | $ 14,708 | $ 40,968 |
Deferred Revenue | 1,021 | 1,456 |
Product and Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability | $ 13,687 | $ 39,512 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Feb. 01, 2020 | Jan. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Revenue from Contracts with Customers, Impairment Loss | $ (213) | $ 75 | $ 307 | $ 1,061 | ||||
Rental Contract, Impairment Loss | (59) | 282 | 92 | 779 | ||||
Accounts Receivable, Allowance for Credit Loss | $ (2,943) | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current | 73,531 | 73,531 | $ 72,776 | |||||
Unbilled Receivables, Current | 16,800 | 16,800 | 13,900 | |||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 114 | $ 223 | $ 209 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | (215) | 376 | 353 | |||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 20 | 9 | 50 | |||||
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | 67 | 23 | (29) | |||||
Impaired Financing Receivables | (272) | $ 357 | 399 | $ 1,840 | ||||
Accounting Standards Update 2016-13 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, Allowance for Credit Loss | (3,053) | (3,293) | (3,108) | (3,053) | ||||
Trade Accounts Receivable [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 31,606 | 31,606 | 36,400 | |||||
Unbilled Receivables from Operating Leases and Rental Contracts [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 1,130 | 1,130 | 861 | |||||
Accounts Receivable, Allowance for Credit Loss | (3,053) | (3,053) | (2,943) | |||||
Accounts Receivable, after Allowance for Credit Loss, Current | 45,349 | 45,349 | 47,401 | |||||
Unbilled Receivables, Current | 16,796 | 16,796 | 13,944 | |||||
Trade Receivables due from Finance Companies [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 11,967 | 11,967 | 12,352 | |||||
Accounts Receivable [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 6,060 | 6,060 | 7,381 | |||||
Receivables due from Manufacturers [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 9,992 | 9,992 | 5,763 | |||||
Other Receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, before Allowance for Credit Loss, Current | 990 | 990 | 1,198 | |||||
Accounts Receivable, after Allowance for Credit Loss, Current | 10,982 | 10,982 | 6,961 | |||||
Trade And Unbilled Receivables From Rental Contracts | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, Allowance for Credit Loss | (1,957) | (1,957) | (2,180) | |||||
Accounts Receivable, after Allowance for Credit Loss, Current | 5,233 | 5,233 | $ 6,062 | |||||
Construction | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, Allowance for Credit Loss | (1,088) | (1,079) | (1,062) | (1,088) | (1,016) | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 21 | 78 | 71 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 12 | 95 | 113 | |||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 18 | 4 | ||||||
Agricultural Segment [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, Allowance for Credit Loss | (196) | (208) | (230) | (196) | (181) | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 44 | 47 | 5 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 30 | 16 | 14 | |||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 2 | 9 | 40 | |||||
International [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts Receivable, Allowance for Credit Loss | (1,769) | (2,006) | (1,816) | $ (1,769) | $ (1,746) | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 48 | 98 | 133 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | (256) | 265 | 226 | |||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 6 | |||||||
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | $ 67 | $ 23 | $ (29) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Inventory Disclosure [Abstract] | ||
New equipment | $ 322,207 | $ 358,339 |
Used equipment | 127,605 | 157,535 |
Parts and attachments | 81,302 | 79,813 |
Work in process | 1,632 | 1,707 |
Inventories | $ 532,746 | $ 597,394 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2020 | |
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | $ 296,044,000 | $ 296,044,000 | $ 290,793,000 | ||
Less accumulated depreciation | (147,524,000) | (147,524,000) | (145,231,000) | ||
Property and equipment, net | 148,520,000 | 148,520,000 | 145,562,000 | ||
Impairment | 2,771,000 | $ 186,000 | |||
Rental fleet equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 94,220,000 | 94,220,000 | 104,133,000 | ||
Machinery and equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 23,478,000 | 23,478,000 | 22,682,000 | ||
Vehicles | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 55,416,000 | 55,416,000 | 51,850,000 | ||
Furniture and fixtures | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 43,169,000 | 43,169,000 | 41,720,000 | ||
Land, buildings, and leasehold improvements | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 79,761,000 | 79,761,000 | 70,408,000 | ||
Construction [Member] | |||||
PROPERTY AND EQUIPMENT | |||||
Impairment | $ 100,000 | 200,000 | $ 200,000 | ||
Construction [Member] | Rental fleet equipment | |||||
PROPERTY AND EQUIPMENT | |||||
Property and equipment, gross | 94,220,000 | 94,220,000 | 104,133,000 | ||
Less accumulated depreciation | (34,970,000) | (34,970,000) | (42,076,000) | ||
Property and equipment, net | 59,250,000 | 59,250,000 | $ 62,057,000 | ||
Agricultural Segment [Member] | |||||
PROPERTY AND EQUIPMENT | |||||
Impairment | $ 200,000 | $ 200,000 |
Intangible Assets, Goodwill (De
Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2020 | Jan. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $ 484 | ||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 75 | ||
Goodwill | $ 1,433 | 1,433 | $ 2,327 |
Goodwill, Impairment Loss | 1,453 | 1,453 | |
Agricultural Segment [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 484 | ||
Goodwill | 1,433 | 1,433 | 949 |
International [Member] | |||
Goodwill [Line Items] | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 75 | ||
Goodwill | 0 | 0 | $ 1,378 |
Goodwill, Impairment Loss | $ 1,500 | $ (1,453) |
Intangible Assets, Other (Detai
Intangible Assets, Other (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2020 | Jan. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Other Indefinite-lived Intangible Assets | $ 7,446 | $ 8,012 |
Indefinite-lived Intangible Assets Acquired | 195 | |
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 75 | |
Impairment of Intangible Assets (Excluding Goodwill) | 900 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (858) | |
Other Intangible Assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 97 | |
Agricultural Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other Indefinite-lived Intangible Assets | 6,265 | 6,070 |
Indefinite-lived Intangible Assets Acquired | 195 | |
Construction | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other Indefinite-lived Intangible Assets | 72 | 72 |
International [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other Indefinite-lived Intangible Assets | 1,109 | $ 1,870 |
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 75 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (858) | |
International [Member] | Other Intangible Assets | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | $ 97 |
LINES OF CREDIT _ FLOORPLAN P_3
LINES OF CREDIT / FLOORPLAN PAYABLE (Details) $ in Thousands | 9 Months Ended | ||
Oct. 31, 2020USD ($) | Apr. 03, 2020USD ($) | Jan. 31, 2020USD ($) | |
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | $ 250,000 | $ 200,000 | |
Floorplan Notes Payable | $ 287,837 | 371,772 | |
Line of Credit Facility, Covenant Compliance, Minimum Fixed Charge Coverage Ratio | 1.10 | ||
Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | $ 287,837 | $ 371,772 | |
Floorplan Notes Payable [Member] | U.S. | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 4.05% | |
Floorplan Notes Payable [Member] | Maximum [Member] | U.S. | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | 4.81% | |
Non-Interest Bearing Floorplan Line of Credit [Member] | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Floorplan Notes Payable | $ 164,600 | $ 205,200 | |
Credit Facility | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | $ 765,000 | 65,000 | |
Credit Facility | Non-US [Member] | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 0.86% | |
Credit Facility | Maximum [Member] | Non-US [Member] | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.84% | 7.66% | |
Bank Syndicate [Domain] | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | $ 185,000 | ||
CNH Industrial Capital Credit Facility | Credit Facility | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | $ 450,000 | ||
DLL Finance LLC [Member] | Credit Facility | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | 60,000 | ||
Bank Syndicate [Domain] | Credit Facility | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Maximum borrowing capacity | 185,000 | ||
Credit Facility | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 10,000 | $ 10,000 | |
CNH Industrial Capital Credit Facility | Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 138,588 | 187,690 | |
Bank Syndicate [Domain] | Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 49,750 | ||
Wells Fargo Credit Facility [Member] | Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 82,700 | ||
DLL Finance LLC [Member] | Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 19,348 | 30,657 | |
Other Affiliates [Member] | Floorplan Line of Credit | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Amount outstanding | 80,151 | $ 70,725 | |
Non-US [Member] | |||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | |||
Compensating Balance, Amount | $ 5,000 |
SENIOR CONVERTIBLE NOTES (Detai
SENIOR CONVERTIBLE NOTES (Details) - Convertible Notes - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2019 | May 01, 2019 | |
SENIOR CONVERTIBLE NOTES | ||
Debt Instrument, Face Amount | $ 45,600 | |
Interest Expense | $ 800 |
LONG TERM DEBT (Details)
LONG TERM DEBT (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | ||
Notes and Loans, Noncurrent | $ 55,109 | $ 37,789 |
Current maturities of long-term debt | 4,423 | 13,779 |
Notes and Loans Payable | 59,532 | 51,568 |
Sale-leaseback Financing Obligation | ||
Debt Instrument [Line Items] | ||
Notes and Loans Payable | 16,832 | 17,781 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Amount outstanding | 10,000 | 10,000 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Notes and Loans Payable | 23,015 | 15,252 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Notes and Loans Payable | 9,538 | 7,468 |
Loans Payable | ||
Debt Instrument [Line Items] | ||
Notes and Loans Payable | $ 147 | $ 1,067 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details 1) $ in Millions | Oct. 31, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Notional Amount | $ 7 |
DERIVATIVE INSTRUMENTS DERIVATE
DERIVATIVE INSTRUMENTS DERIVATE INSTRUMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Foreign currency contracts | Not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) | ||||
Foreign currency contract gain (loss) | $ 471 | $ (3) | $ 660 | $ 365 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (3,500) | $ (5,681) | $ (6,459) | $ (7,460) | $ (4,810) | $ (5,822) | $ (5,931) | $ (5,051) |
Derivatives used in Net Investment Hedge, Net of Tax | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 | 2,711 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (789) | (2,970) | (3,748) | (4,749) | (2,099) | (3,111) | $ (3,220) | $ (2,340) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 2,181 | 778 | (528) | (2,650) | 1,012 | (771) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 2,181 | $ 778 | $ (528) | $ (2,650) | $ 1,012 | $ (771) |
LEASES Lease Expense (Details)
LEASES Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||||
Finance Lease, Right-of-Use Asset, Amortization | $ 395 | $ 373 | $ 1,176 | $ 1,080 |
Finance Lease, Interest Expense | 108 | 143 | 351 | 421 |
Operating Lease, Cost | 4,541 | 4,613 | 13,329 | 14,154 |
Short-term Lease, Cost | 81 | 41 | 270 | 201 |
Variable Lease, Cost | 739 | 689 | 2,109 | 2,024 |
Sublease Income | (136) | (146) | (419) | (468) |
Lease, Cost | $ 5,728 | $ 5,713 | $ 16,816 | $ 17,412 |
LEASES ROU Assets and Lease Lia
LEASES ROU Assets and Lease Liabilities (Details) - USD ($) | Oct. 31, 2020 | Jan. 31, 2020 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 81,401,000 | $ 88,281,000 |
Finance Lease, Right-of-Use Asset | 5,478,000 | 6,297,000 |
Lessee, Right-Of-Use Asset | 86,879,000 | 94,578,000 |
Operating Lease, Liability, Current | 12,373,000 | 12,259,000 |
Finance Lease, Liability, Current | 1,712,000 | 1,708,000 |
Operating Lease, Liability, Noncurrent | 80,782,000 | 88,387,000 |
Finance Lease, Liability, Noncurrent | 3,121,000 | 4,103,000 |
Lessee, Lease Liability | $ 97,988,000 | $ 106,457,000 |
LEASES Maturities of Lease Liab
LEASES Maturities of Lease Liabilities (Details) $ in Thousands | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 4,481 |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 548 |
Lessee, Liability, Payments, Remainder of Fiscal Year | 5,029 |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 17,307 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 1,923 |
Lessee, Liability, Payments, Due Next Twelve Months | 19,230 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 16,248 |
Finance Lease, Liability, Payments, Due Year Two | 1,269 |
Lessee, Liability, Payments, Due Year Two | 17,517 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 15,150 |
Finance Lease, Liability, Payments, Due Year Three | 530 |
Lessee, Liability, Payments, Due Year Three | 15,680 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 13,998 |
Finance Lease, Liability, Payments, Due Year Four | 424 |
Lessee, Liability, Payments, Due Year Four | 14,422 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 13,835 |
Finance Lease, Liability, Payments, Due Year Five | 312 |
Lessee, Liability, Payments, Due Year Five | 14,147 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 34,720 |
Finance Lease, Liability, Payments, Due after Year Five | 1,084 |
Lessee, Liability, Payments, Due After Year Five | 35,804 |
Lessee, Operating Lease, Liability, Payments, Due | 115,739 |
Finance Lease, Liability, Payment, Due | 6,090 |
Lessee, Liability, Payments, Due | 121,829 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 22,584 |
Finance Lease, Liability, Undiscounted Excess Amount | 1,257 |
Lessee, Liability, Undiscounted Excess Amount | 23,841 |
Operating Lease, Liability | 93,155 |
Finance Lease, Liability | 4,833 |
Present Value of Lease Liabilities | $ 97,988 |
LEASES Weighted Average Lease T
LEASES Weighted Average Lease Terms (Details) | Oct. 31, 2020 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 4 months 24 days |
Finance Lease, Weighted Average Remaining Lease Term | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% |
Finance Lease, Weighted Average Discount Rate, Percent | 9.50% |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 |
Fair Value Disclosures [Abstract] | |||
Long-Lived Assets | $ 500 | $ 400 | $ 2,800 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | (28.30%) | (33.80%) | (26.50%) | (31.30%) |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | May 04, 2020 | Oct. 01, 2019 | Oct. 31, 2020 | Jan. 31, 2020 |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 6,800,000 | $ 10,900,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | $ 2,700,000 | $ 7,400,000 | ||
Cash Acquired from Acquisition | $ 1,000 | |||
Business Combination, Acquired Receivable, Fair Value | $ 440,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 4,260,000 | 6,466,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 48,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,752,000 | 3,810,000 | ||
Business Combination, Recognized Identifiable Asset Acquired And Liability Assumed, Operating Lease Assets | 2,006,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 245,000 | 1,973,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 484,000 | 1,198,000 | ||
Business Combination, Recognized Identifiable Asset Acquired And Liability Assumed, Operating Lease Liability, Current | 159,000 | |||
Business Combination, Recognized Identifiable Asset Acquired And Liability Assumed, Operating Lease Liability, Noncurrent | 1,847,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 8,796,000 | 13,887,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,006,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 6,790,000 | 13,887,000 | ||
International [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | 3,000,000 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 499,000 | |||
Agricultural Segment [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 484,000 | 699,000 | ||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 200,000 | |||
Distribution Rights [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 200,000 | 1,600,000 | ||
Noncompete Agreements [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 100,000 | $ 100,000 |
SEGMENT INFORMATION AND OPERA_3
SEGMENT INFORMATION AND OPERATING RESULTS (Details) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2020USD ($)segment | Oct. 31, 2019USD ($) | Jan. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | $ 360,872,000 | $ 360,936,000 | $ 974,545,000 | $ 954,207,000 | |
Income (Loss) Before Income Taxes | 13,824,000 | 12,409,000 | 25,265,000 | 19,321,000 | |
Total Assets | 900,856,000 | 900,856,000 | $ 975,343,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 484,000 | 484,000 | 1,198,000 | ||
Agricultural Segment [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 484,000 | 484,000 | 699,000 | ||
International [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 499,000 | ||||
Shared Resources | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | 1,225,000 | (258,000) | 1,961,000 | (1,233,000) | |
Total Assets | 57,825,000 | 57,825,000 | 63,243,000 | ||
Operating Segments | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | 12,599,000 | 12,667,000 | 23,304,000 | 20,554,000 | |
Total Assets | 843,031,000 | 843,031,000 | 912,100,000 | ||
Operating Segments | Agricultural Segment [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 220,625,000 | 214,073,000 | 583,326,000 | 533,538,000 | |
Income (Loss) Before Income Taxes | 13,575,000 | 10,259,000 | 26,490,000 | 18,312,000 | |
Total Assets | 421,556,000 | 421,556,000 | 444,942,000 | ||
Operating Segments | Construction | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 79,030,000 | 78,031,000 | 216,862,000 | 232,813,000 | |
Income (Loss) Before Income Taxes | 1,448,000 | 347,000 | (50,000) | (541,000) | |
Total Assets | 232,236,000 | 232,236,000 | 275,645,000 | ||
Operating Segments | International [Member] | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 61,217,000 | 68,832,000 | 174,357,000 | 187,856,000 | |
Income (Loss) Before Income Taxes | (2,424,000) | $ 2,061,000 | (3,136,000) | $ 2,783,000 | |
Total Assets | $ 189,239,000 | $ 189,239,000 | $ 191,513,000 |