Titan Machinery Inc.

Hello, and welcome to the Titan Machinery first quarter fiscal 2023 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Jeff Sonick of ICR. Thank you. You may begin.

Thank you, good morning, and welcome to Titan Machinery's first quarter fiscal 2023 earnings conference call. On the call today from the company are David Meyer, Chairman and Chief Executive Officer, Mark Calvota, Chief Financial Officer, and Brian Knutson, Chief Operating Officer. By now, everyone should have access to the earnings release for the fiscal first quarter ended April 30, 2022, which went out this morning at approximately 6.45 a.m. Eastern Time. If you have not received the release, it's available on the investor relations page of Titan's website at ir.titanmachinery.com. This call is being webcast and a replay will be available on the company's website as well. In addition, we're providing a presentation to accompany today's prepared remarks. You may access the presentation now by going to Titan's website at ir.titanmachinery.com. The presentation is available directly below the webcast information in the middle of the page. You'll see on slide two of the presentation our safe harbor statement. We would like to remind everyone that the prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance and therefore undue reliance should not be placed upon them. These forward-looking statements are based on current expectations of management and involve inherent risks and uncertainties including those identified in the risk factors section of Titan's most recently filed annual report on Form 10-K, as updated in subsequently filed quarterly reports on Form 10-Q. These risk factors contain a more detailed discussion of the factors that could cause actual results to differ materially from those projected in any forward-looking statements, except as may be required by applicable law Titan assumes no obligation to update any forward-looking statements that may be made in today's release or call. Please note that during today's call, we'll discuss non-GAAP financial measures, including results on an adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis and greater transparency into Titan's ongoing financial performance, particularly when comparing underlying results from period to period. We've included reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure in today's release. The call will last approximately 45 minutes. At the conclusion of our prepared remarks, we'll open the call to take your questions. Now, I'd like to introduce the company's chairman and CEO, Mr. David Meyer. David, go ahead.

Thank you, Jeff. Good morning, everyone. Welcome to our first quarter fiscal 2023 earnings conference call. On today's call, I will provide a summary of our results and then Brian Knutson, our Chief Operating Officer, will give an overview for each of our business segments. Mark Calvota, our CFO, will then review financial results for the first quarter of fiscal 2023 and provide an update to our full year modeling assumptions. If you turn to slide three, you'll see an overview of our first quarter financial results. Our momentum continued in the fiscal first quarter of 2023 with strong operating leverage across each of our segments, which combined for a 24% increase in revenue to $461 million and a 66% increase in earnings per share to 78 cents. At the segment level, our agriculture segment benefited from robust demand, which was supported by an increase in equipment deliveries from our suppliers following a delay in fiscal fourth quarter 2022. And our construction segment continued to demonstrate improved levels of pre-tax profitability as we achieve operating improvements across our optimized footprint. While revenue growth on the international segment was negatively affected by the conflict in Ukraine, the impact on our operations is less than we originally anticipated. We are supporting our Ukrainian customers' farming activities with equipment parts and service to the extent possible. The resolve of our customers and employees has been nothing short of inspiring. More broadly, our business across the European footprint proved to be resilient to the conflict's indirect effects, and we were able to generate an improvement in pre-tax income margins despite a slight decrease in revenue. In terms of M&A, on the domestic front, we remain active with our pipeline of potential acquisition candidates as we seek to grow our business through quality acquisitions, in addition to our continuous focus on same-store organic growth. You saw this most recently with the closing of our acquisition of the Marx Machinery in April, which followed our acquisition of a Jaycox implement in December 2021. We are very pleased with our full integration, immediate accretion, and valuable contributions to the Tite Machinery team and store footprint. We remain positive on the broader environment, despite some of the recent market turbulence. As a result, we are increasing our modeling assumptions, which Mark will talk through in greater detail. We continue to expect an exceptional fiscal 2023 at Titan Machinery. Now I'll turn the call over to Brian Knudson.