FORM 10-Q
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Illinois
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36-3228472
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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Large accelerated filer o
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Accelerated filer þ
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Non-accelerated filer o (Do not check if a smaller reporting company)
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Smaller reporting company o
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Shares Outstanding at
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||
Class
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April 21, 2011
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Common stock, no par value per share
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42,072,631
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Page
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Part I.
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Financial Information
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|
Item 1.
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Financial Statements (Unaudited)
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Consolidated Condensed Statements of Operations
for the Three Months Ended March 31, 2011 and 2010
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1
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Consolidated Condensed Balance Sheets as of
March 31, 2011, and December 31, 2010
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2
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Consolidated Condensed Statement of Changes in Stockholders’
Equity for the Three Months Ended March 31, 2011
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3
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Consolidated Condensed Statements of Cash Flows
for the Three Months Ended March 31, 2011 and 2010
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4
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Notes to Consolidated Condensed Financial Statements
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5-19
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Item 2.
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Management’s Discussion and Analysis of
Financial Condition and Results of Operations
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20-31
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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32
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Item 4.
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Controls and Procedures
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32
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Part II.
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Other Information
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Item 1.
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Legal Proceedings
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33
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Item 1A.
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Risk Factors
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33
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Item 6.
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Exhibits
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33
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Signatures
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33
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Three months ended
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||||||||
March 31,
|
||||||||
2011
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2010
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|||||||
Net sales
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$ | 280,829 | $ | 196,448 | ||||
Cost of sales
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224,557 | 170,361 | ||||||
Gross profit
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56,272 | 26,087 | ||||||
Selling, general and administrative expenses
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25,293 | 11,809 | ||||||
Research and development expenses
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1,183 | 2,027 | ||||||
Royalty expense
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2,917 | 2,121 | ||||||
Income from operations
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26,879 | 10,130 | ||||||
Interest expense
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(6,280 | ) | (7,056 | ) | ||||
Noncash convertible debt conversion charge
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(16,135 | ) | 0 | |||||
Other income
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193 | 333 | ||||||
Income before income taxes
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4,657 | 3,407 | ||||||
Provision for income taxes
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7,693 | 1,329 | ||||||
Net income (loss)
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$ | (3,036 | ) | $ | 2,078 | |||
Earnings (loss) per common share:
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||||||||
Basic
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$ | (.07 | ) | $ | .06 | |||
Diluted
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(.07 | ) | .06 | |||||
Average common shares outstanding:
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||||||||
Basic
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40,511 | 34,772 | ||||||
Diluted
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40,511 | 35,329 | ||||||
Dividends declared per common share:
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$ | .005 | $ | .005 |
March 31,
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December 31,
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|||||||
Assets
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2011
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2010
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||||||
Current assets
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|
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||||||
Cash and cash equivalents
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$ | 230,048 | $ | 239,500 | ||||
Accounts receivable
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139,025 | 89,004 | ||||||
Inventories
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133,679 | 127,982 | ||||||
Deferred income taxes
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12,791 | 12,791 | ||||||
Prepaid and other current assets
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18,031 | 18,663 | ||||||
Total current assets
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533,574 | 487,940 | ||||||
Property, plant and equipment, net
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242,064 | 248,054 | ||||||
Other assets
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49,332 | 51,476 | ||||||
Total assets
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$ | 824,970 | $ | 787,470 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Current liabilities
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||||||||
Accounts payable
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$ | 45,186 | $ | 35,281 | ||||
Other current liabilities
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65,547 | 57,072 | ||||||
Total current liabilities
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110,733 | 92,353 | ||||||
Long-term debt
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312,881 | 373,564 | ||||||
Deferred income taxes
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9,385 | 1,970 | ||||||
Other long-term liabilities
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41,114 | 41,268 | ||||||
Total liabilities
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474,113 | 509,155 | ||||||
Stockholders’ equity
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||||||||
Common stock(no par, 120,000,000 shares authorized,
44,092,997 and 37,475,288 issued, respectively)
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37 | 30 | ||||||
Additional paid-in capital
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375,746 | 300,540 | ||||||
Retained earnings
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12,782 | 16,028 | ||||||
Treasury stock (at cost, 2,076,040 and 2,108,561 shares, respectively)
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(19,033 | ) | (19,324 | ) | ||||
Treasury stock reserved for deferred compensation
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(1,233 | ) | (1,917 | ) | ||||
Accumulated other comprehensive loss
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(17,442 | ) | (17,042 | ) | ||||
Total stockholders’ equity
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350,857 | 278,315 | ||||||
Total liabilities and stockholders’ equity
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$ | 824,970 | $ | 787,470 |
Number of common shares
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Common Stock
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Additional
paid-in
capital
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Retained earnings
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Treasury stock
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Treasury stock reserved for deferred compensation
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Accumulated other comprehensive income (loss)
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Total
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|||||||||||||||||||||||||
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|||||||||||||||||||||||||||||
Balance January 1, 2011
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#35,366,727 | $ | 30 | $ | 300,540 | $ | 16,028 | $ | (19,324 | ) | $ | (1,917 | ) | $ | (17,042 | ) | $ | 278,315 | ||||||||||||||
Comprehensive income (loss):
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||||||||||||||||||||||||||||||||
Net loss
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(3,036 | ) | (3,036 | ) | ||||||||||||||||||||||||||||
Pension liability adjustments, net of tax
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593 | 593 | ||||||||||||||||||||||||||||||
Unrealized loss on investment, net of tax
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(993 | ) | (993 | ) | ||||||||||||||||||||||||||||
Comprehensive loss
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(3,436 | ) | ||||||||||||||||||||||||||||||
Dividends on common stock
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(210 | ) | (210 | ) | ||||||||||||||||||||||||||||
Note conversion
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6,617,709 | 7 | 73,902 | 73,909 | ||||||||||||||||||||||||||||
Exercise of stock options
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26,125 | (4 | ) | 234 | 230 | |||||||||||||||||||||||||||
Stock-based compensation
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393 | 393 | ||||||||||||||||||||||||||||||
Deferred compensation transactions
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846 | 684 | 1,530 | |||||||||||||||||||||||||||||
Issuance of treasury stock under 401(k) plan
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6,396 | 69 | 57 | 126 | ||||||||||||||||||||||||||||
Balance March 31, 2011
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#42,016,957 | $ | 37 | $ | 375,746 | $ | 12,782 | $ | (19,033 | ) | $ | (1,233 | ) | $ | (17,442 | ) | $ | 350,857 |
Three months ended
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||||||||
March 31,
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||||||||
2011
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2010
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|||||||
Cash flows from operating activities:
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||||||||
Net income (loss)
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$ | (3,036 | ) | $ | 2,078 | |||
Adjustments to reconcile net income to net cash
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||||||||
provided by operating activities:
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||||||||
Depreciation and amortization
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9,299 | 9,281 | ||||||
Deferred income tax provision
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7,415 | 1,275 | ||||||
Noncash convertible debt conversion charge
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16,135 | 0 | ||||||
Stock-based compensation
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393 | 0 | ||||||
Issuance of treasury stock under 401(k) plan
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126 | 123 | ||||||
(Increase) decrease in assets:
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||||||||
Accounts receivable
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(50,021 | ) | (34,789 | ) | ||||
Inventories
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(5,697 | ) | (19,462 | ) | ||||
Prepaid and other current assets
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632 | 3,099 | ||||||
Other assets
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10 | 46 | ||||||
Increase in liabilities:
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||||||||
Accounts payable
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9,905 | 22,432 | ||||||
Other current liabilities
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8,442 | 4,413 | ||||||
Other liabilities
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802 | 1,365 | ||||||
Net cash used for operating activities
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(5,595 | ) | (10,139 | ) | ||||
Cash flows from investing activities:
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||||||||
Capital expenditures
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(3,469 | ) | (3,508 | ) | ||||
Other
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623 | 42 | ||||||
Net cash used for investing activities
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(2,846 | ) | (3,466 | ) | ||||
Cash flows from financing activities:
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||||||||
Repurchase of senior unsecured notes
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(1,064 | ) | 0 | |||||
Proceeds from exercise of stock options
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230 | 0 | ||||||
Payment of financing fees
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0 | (186 | ) | |||||
Dividends paid
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(177 | ) | (176 | ) | ||||
Net cash used for financing activities
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(1,011 | ) | (362 | ) | ||||
Net decrease in cash and cash equivalents
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(9,452 | ) | (13,967 | ) | ||||
Cash and cash equivalents at beginning of period
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239,500 | 229,182 | ||||||
Cash and cash equivalents at end of period
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$ | 230,048 | $ | 215,215 |
March 31,
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December 31,
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|||||||
2011
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2010
|
|||||||
Accounts receivable
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$ | 143,258 | $ | 92,893 | ||||
Allowance for doubtful accounts
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(4,233 | ) | (3,889 | ) | ||||
Accounts receivable, net
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$ | 139,025 | $ | 89,004 |
March 31,
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December 31,
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|||||||
2011
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2010
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|||||||
Raw materials
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$ | 54,169 | $ | 56,414 | ||||
Work-in-process
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18,103 | 16,860 | ||||||
Finished goods
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64,010 | 59,680 | ||||||
136,282 | 132,954 | |||||||
Adjustment to LIFO basis
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(2,603 | ) | (4,972 | ) | ||||
$ | 133,679 | $ | 127,982 |
March 31,
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December 31,
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|||||||
2011
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2010
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|||||||
Land and improvements
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$ | 3,061 | $ | 3,061 | ||||
Buildings and improvements
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98,234 | 98,233 | ||||||
Machinery and equipment
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385,153 | 383,231 | ||||||
Tools, dies and molds
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84,901 | 84,134 | ||||||
Construction-in-process
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8,040 | 8,741 | ||||||
579,389 | 577,400 | |||||||
Less accumulated depreciation
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(337,325 | ) | (329,346 | ) | ||||
$ | 242,064 | $ | 248,054 |
March 31,
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December 31,
|
|||||||
2011
|
2010
|
|||||||
Investment in Titan Europe Plc
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$ | 21,165 | $ | 22,693 |
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2011
|
2010
|
||||||
Warranty liability, January 1
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$ | 12,471 | $ | 9,169 | ||||
Provision for warranty liabilities
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5,256 | 3,629 | ||||||
Warranty payments made
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(3,743 | ) | (3,377 | ) | ||||
Warranty liability, March 31
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$ | 13,984 | $ | 9,421 |
March 31,
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December 31,
|
|||||||
2011
|
2010
|
|||||||
7.875% senior notes due 2017
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$ | 200,000 | $ | 200,000 | ||||
5.625% convertible senior notes due 2017
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112,881 | 172,500 | ||||||
8% senior unsecured notes due January 2012
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0 | 1,064 | ||||||
312,881 | 373,564 | |||||||
Less: Amounts due within one year
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0 | 0 | ||||||
$ | 312,881 | $ | 373,564 |
April 1 – December 31, 2011
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$ | 0 | ||
2012
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0 | |||
2013
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0 | |||
2014
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0 | |||
2015
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0 | |||
Thereafter
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312,881 | |||
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$ | 312,881 |
April 1 – December 31, 2011
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$ | 370 | ||
2012
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79 | |||
2013
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18 | |||
2014
|
1 | |||
Thereafter
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0 | |||
Total future minimum lease payments
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$ | 468 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Interest cost
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$ | 1,272 | $ | 1,300 | ||||
Expected return on assets
|
(1,315 | ) | (1,227 | ) | ||||
Amortization of unrecognized prior service cost
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34 | 34 | ||||||
Amortization of unrecognized deferred taxes
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(14 | ) | (14 | ) | ||||
Amortization of net unrecognized loss
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936 | 907 | ||||||
Net periodic pension cost
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$ | 913 | $ | 1,000 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Investment gain on marketable securities
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$ | 93 | $ | 196 | ||||
Interest income
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145 | 94 | ||||||
Other income (expense)
|
(45 | ) | 43 | |||||
$ | 193 | $ | 333 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income (loss)
|
$ | (3,036 | ) | $ | 2,078 | |||
Unrealized loss on investment, net of tax
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(993 | ) | (918 | ) | ||||
Pension liability adjustments, net of tax
|
593 | 575 | ||||||
$ | (3,436 | ) | $ | 1,735 | ||||
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Revenues from external customers
|
||||||||
Agricultural
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$ | 209,997 | $ | 151,112 | ||||
Earthmoving/construction
|
66,511 | 41,815 | ||||||
Consumer
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4,321 | 3,521 | ||||||
$ | 280,829 | $ | 196,448 | |||||
Gross profit
|
||||||||
Agricultural
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$ | 47,700 | $ | 23,890 | ||||
Earthmoving/construction
|
8,195 | 3,150 | ||||||
Consumer
|
1,002 | 668 | ||||||
Unallocated corporate
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(625 | ) | (1,621 | ) | ||||
$ | 56,272 | $ | 26,087 | |||||
Income from operations
|
||||||||
Agricultural
|
$ | 42,868 | $ | 19,955 | ||||
Earthmoving/construction
|
6,288 | 690 | ||||||
Consumer
|
916 | 581 | ||||||
Unallocated corporate
|
(23,193 | ) | (11,096 | ) | ||||
Consolidated income from operations
|
26,879 | 10,130 | ||||||
Interest expense
|
(6,280 | ) | (7,056 | ) | ||||
Noncash convertible debt conversion charge
|
(16,135 | ) | 0 | |||||
Other income, net
|
193 | 333 | ||||||
Income before income taxes
|
$ | 4,657 | $ | 3,407 |
March 31,
|
December 31,
|
|||||||
Total Assets
|
2011
|
2010
|
||||||
Agricultural
|
$ | 347,432 | $ | 304,048 | ||||
Earthmoving/construction
|
193,276 | 181,249 | ||||||
Consumer
|
9,239 | 5,863 | ||||||
Unallocated corporate
|
275,023 | 296,310 | ||||||
Consolidated totals
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$ | 824,970 | $ | 787,470 | ||||
|
Three months ended
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|||||||||||||||||||||||
|
March 31, 2011
|
March 31, 2010
|
||||||||||||||||||||||
|
Net
Loss
|
Weighted average shares
|
Per share amount
|
Net
Income
|
Weighted average shares
|
Per share amount
|
||||||||||||||||||
Basic EPS
|
$ | (3,036 | ) | 40,511 | $ | (.07 | ) | $ | 2,078 | 34,772 | $ | .06 | ||||||||||||
Effect of stock options/trusts
|
0 | 0 | 0 | 557 | ||||||||||||||||||||
Diluted EPS
|
$ | (3,036 | ) | 40,511 | $ | (.07 | ) | $ | 2,078 | 35,329 | $ | .06 |
|
Level 1 – Quoted prices in active markets for identical instruments;
|
|
Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable.
|
|
Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
|
March 31, 2011
|
December 31, 2010
|
||||||||||||||||||||||
|
Total
|
Level 1
|
Levels 2&3
|
Total
|
Level 1
|
Levels 2&3
|
||||||||||||||||||
Investment in Titan Europe Plc
|
$ | 21,165 | $ | 21,165 | $ | 0 | $ | 22,693 | $ | 22,693 | $ | 0 | ||||||||||||
Investment in marketable securities
|
12,791 | 12,791 | 0 | 11,168 | 11,168 | 0 | ||||||||||||||||||
Total
|
$ | 33,956 | $ | 33,956 | $ | 0 | $ | 33,861 | $ | 33,861 | $ | 0 |
|
Consolidating Condensed Statements of Operations
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
For the Three Months Ended March 31, 2011
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Net sales
|
$ | 0 | $ | 280,829 | $ | 0 | $ | 0 | $ | 280,829 | ||||||||||
Cost of sales
|
361 | 223,754 | 442 | 0 | 224,557 | |||||||||||||||
Gross profit (loss)
|
(361 | ) | 57,075 | (442 | ) | 0 | 56,272 | |||||||||||||
Selling, general and administrative expenses
|
15,405 | 2,725 | 7,163 | 0 | 25,293 | |||||||||||||||
Research and development expenses
|
0 | 1,183 | 0 | 0 | 1,183 | |||||||||||||||
Royalty expense
|
0 | 2,917 | 0 | 0 | 2,917 | |||||||||||||||
Income (loss) from operations
|
(15,766 | ) | 50,250 | (7,605 | ) | 0 | 26,879 | |||||||||||||
Interest expense
|
(6,280 | ) | 0 | 0 | 0 | (6,280 | ) | |||||||||||||
Noncash convertible debt conversion charge
|
(16,135 | ) | 0 | 0 | 0 | (16,135 | ) | |||||||||||||
Other income (expense)
|
317 | (202 | ) | 78 | 0 | 193 | ||||||||||||||
Income (loss) before income taxes
|
(37,864 | ) | 50,048 | (7,527 | ) | 0 | 4,657 | |||||||||||||
Provision (benefit) for income taxes
|
(8,039 | ) | 18,518 | (2,786 | ) | 0 | 7,693 | |||||||||||||
Equity in earnings of subsidiaries
|
26,789 | (60 | ) | 60 | (26,789 | ) | 0 | |||||||||||||
Net income (loss)
|
$ | (3,036 | ) | $ | 31,470 | $ | (4,681 | ) | $ | (26,789 | ) | $ | (3,036 | ) |
|
Consolidating Condensed Statements of Operations
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
For the Three Months Ended March 31, 2010
|
|||||||||||||||||||
Titan
|
Non-
|
|||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Net sales
|
$ | 0 | $ | 196,448 | $ | 0 | $ | 0 | $ | 196,448 | ||||||||||
Cost of sales
|
1,324 | 168,550 | 487 | 0 | 170,361 | |||||||||||||||
Gross profit (loss)
|
(1,324 | ) | 27,898 | (487 | ) | 0 | 26,087 | |||||||||||||
Selling, general and administrative expenses
|
4,864 | 2,334 | 4,611 | 0 | 11,809 | |||||||||||||||
Research and development expenses
|
0 | 2,027 | 0 | 0 | 2,027 | |||||||||||||||
Royalty expense
|
0 | 2,121 | 0 | 0 | 2,121 | |||||||||||||||
Income (loss) from operations
|
(6,188 | ) | 21,416 | (5,098 | ) | 0 | 10,130 | |||||||||||||
Interest expense
|
(7,056 | ) | 0 | 0 | 0 | (7,056 | ) | |||||||||||||
Other income (expense)
|
290 | (2 | ) | 45 | 0 | 333 | ||||||||||||||
Income (loss) before income taxes
|
(12,954 | ) | 21,414 | (5,053 | ) | 0 | 3,407 | |||||||||||||
Provision (benefit) for income taxes
|
(5,052 | ) | 8,352 | (1,971 | ) | 0 | 1,329 | |||||||||||||
Equity in earnings of subsidiaries
|
9,980 | (88 | ) | 88 | (9,980 | ) | 0 | |||||||||||||
Net income (loss)
|
$ | 2,078 | $ | 12,974 | $ | (2,994 | ) | $ | (9,980 | ) | $ | 2,078 |
|
Consolidating Condensed Balance Sheets
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
March 31, 2011
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 229,924 | $ | 7 | $ | 117 | $ | 0 | $ | 230,048 | ||||||||||
Accounts receivable
|
0 | 139,025 | 0 | 0 | 139,025 | |||||||||||||||
Inventories
|
0 | 133,679 | 0 | 0 | 133,679 | |||||||||||||||
Prepaid and other current assets
|
14,063 | 16,389 | 370 | 0 | 30,822 | |||||||||||||||
Total current assets
|
243,987 | 289,100 | 487 | 0 | 533,574 | |||||||||||||||
Property, plant and equipment, net
|
7,667 | 229,385 | 5,012 | 0 | 242,064 | |||||||||||||||
Investment in subsidiaries
|
61,855 | 9,057 | 20 | (70,932 | ) | 0 | ||||||||||||||
Other assets
|
21,573 | 1,060 | 26,699 | 0 | 49,332 | |||||||||||||||
Total assets
|
$ | 335,082 | $ | 528,602 | $ | 32,218 | $ | (70,932 | ) | $ | 824,970 | |||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Accounts payable
|
$ | 790 | $ | 44,006 | $ | 390 | $ | 0 | $ | 45,186 | ||||||||||
Other current liabilities
|
20,332 | 42,860 | 2,355 | 0 | 65,547 | |||||||||||||||
Total current liabilities
|
21,122 | 86,866 | 2,745 | 0 | 110,733 | |||||||||||||||
Long-term debt
|
312,881 | 0 | 0 | 0 | 312,881 | |||||||||||||||
Other long-term liabilities
|
16,980 | 27,671 | 5,848 | 0 | 50,499 | |||||||||||||||
Intercompany accounts
|
(366,758 | ) | 189,850 | 176,908 | 0 | 0 | ||||||||||||||
Stockholders’ equity
|
350,857 | 224,215 | (153,283 | ) | (70,932 | ) | 350,857 | |||||||||||||
Total liabilities and stockholders’ equity
|
$ | 335,082 | $ | 528,602 | $ | 32,218 | $ | (70,932 | ) | $ | 824,970 |
|
Consolidating Condensed Balance Sheets
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
December 31, 2010
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 239,362 | $ | 6 | $ | 132 | $ | 0 | $ | 239,500 | ||||||||||
Accounts receivable
|
0 | 89,004 | 0 | 0 | 89,004 | |||||||||||||||
Inventories
|
0 | 127,982 | 0 | 0 | 127,982 | |||||||||||||||
Prepaid and other current assets
|
14,732 | 16,240 | 482 | 0 | 31,454 | |||||||||||||||
Total current assets
|
254,094 | 233,232 | 614 | 0 | 487,940 | |||||||||||||||
Property, plant and equipment, net
|
7,678 | 235,143 | 5,233 | 0 | 248,054 | |||||||||||||||
Investment in subsidiaries
|
39,465 | 9,057 | 20 | (48,542 | ) | 0 | ||||||||||||||
Other assets
|
22,183 | 869 | 28,424 | 0 | 51,476 | |||||||||||||||
Total assets
|
$ | 323,420 | $ | 478,301 | $ | 34,291 | $ | (48,542 | ) | $ | 787,470 | |||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Accounts payable
|
$ | 1,406 | $ | 33,473 | $ | 402 | $ | 0 | $ | 35,281 | ||||||||||
Other current liabilities
|
16,066 | 39,186 | 1,820 | 0 | 57,072 | |||||||||||||||
Total current liabilities
|
17,472 | 72,659 | 2,222 | 0 | 92,353 | |||||||||||||||
Long-term debt
|
373,564 | 0 | 0 | 0 | 373,564 | |||||||||||||||
Other long-term liabilities
|
9,161 | 28,083 | 5,994 | 0 | 43,238 | |||||||||||||||
Intercompany accounts
|
(355,092 | ) | 178,164 | 176,928 | 0 | 0 | ||||||||||||||
Stockholders’ equity
|
278,315 | 199,395 | (150,853 | ) | (48,542 | ) | 278,315 | |||||||||||||
Total liabilities and stockholders’ equity
|
$ | 323,420 | $ | 478,301 | $ | 34,291 | $ | (48,542 | ) | $ | 787,470 |
Consolidating Condensed Statements of Cash Flows
|
||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||
For the Three Months Ended March 31, 2011
|
||||||||||||||||
Titan
|
Non-
|
|||||||||||||||
Intl., Inc.
|
Guarantor
|
Guarantor
|
||||||||||||||
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net cash provided by (used for) operating activities
|
$ | (8,115 | ) | $ | 2,487 | $ | 33 | $ | (5,595 | ) | ||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
(312 | ) | (3,100 | ) | (57 | ) | (3,469 | ) | ||||||||
Other, net
|
0 | 614 | 9 | 623 | ||||||||||||
Net cash used for investing activities
|
(312 | ) | (2,486 | ) | (48 | ) | (2,846 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Repurchase of senior unsecured notes
|
(1,064 | ) | 0 | 0 | (1,064 | ) | ||||||||||
Proceeds from exercise of stock options
|
230 | 0 | 0 | 230 | ||||||||||||
Dividends paid
|
(177 | ) | 0 | 0 | (177 | ) | ||||||||||
Net cash used for financing activities
|
(1,011 | ) | 0 | 0 | (1,011 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
(9,438 | ) | 1 | (15 | ) | (9,452 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
239,362 | 6 | 132 | 239,500 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 229,924 | $ | 7 | $ | 117 | $ | 230,048 |
Consolidating Condensed Statements of Cash Flows
|
||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||
For the Three Months Ended March 31, 2010
|
||||||||||||||||
Titan
|
Non-
|
|||||||||||||||
Intl., Inc.
|
Guarantor
|
Guarantor
|
||||||||||||||
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net cash provided by (used for) operating activities
|
$ | (13,596 | ) | $ | 3,427 | $ | 30 | $ | (10,139 | ) | ||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
0 | (3,460 | ) | (48 | ) | (3,508 | ) | |||||||||
Other, net
|
0 | 37 | 5 | 42 | ||||||||||||
Net cash used for investing activities
|
0 | (3,423 | ) | (43 | ) | (3,466 | ) | |||||||||
Cash flows from financing activities:
|
||||||||||||||||
Payment of financing fees
|
(186 | ) | 0 | 0 | (186 | ) | ||||||||||
Dividends paid
|
(176 | ) | 0 | 0 | (176 | ) | ||||||||||
Net cash used for financing activities
|
(362 | ) | 0 | 0 | (362 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
(13,958 | ) | 4 | (13 | ) | (13,967 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
229,004 | 11 | 167 | 229,182 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 215,046 | $ | 15 | $ | 154 | $ | 215,215 | ||||||||
|
Consolidating Condensed Statements of Operations
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
For the Three Months Ended March 31, 2011
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Net sales
|
$ | 0 | $ | 274,961 | $ | 5,868 | $ | 0 | $ | 280,829 | ||||||||||
Cost of sales
|
361 | 217,995 | 6,201 | 0 | 224,557 | |||||||||||||||
Gross profit (loss)
|
(361 | ) | 56,966 | (333 | ) | 0 | 56,272 | |||||||||||||
Selling, general and administrative expenses
|
15,405 | 2,649 | 7,239 | 0 | 25,293 | |||||||||||||||
Research and development expenses
|
0 | 1,183 | 0 | 0 | 1,183 | |||||||||||||||
Royalty expense
|
0 | 2,917 | 0 | 0 | 2,917 | |||||||||||||||
Income (loss) from operations
|
(15,766 | ) | 50,217 | (7,572 | ) | 0 | 26,879 | |||||||||||||
Interest expense
|
(6,280 | ) | 0 | 0 | 0 | (6,280 | ) | |||||||||||||
Noncash convertible debt conversion charge
|
(16,135 | ) | 0 | 0 | 0 | (16,135 | ) | |||||||||||||
Other income (expense)
|
317 | (235 | ) | 111 | 0 | 193 | ||||||||||||||
Income (loss) before income taxes
|
(37,864 | ) | 49,982 | (7,461 | ) | 0 | 4,657 | |||||||||||||
Provision (benefit) for income taxes
|
(8,039 | ) | 18,493 | (2,761 | ) | 0 | 7,693 | |||||||||||||
Equity in earnings of subsidiaries
|
26,789 | (60 | ) | 60 | (26,789 | ) | 0 | |||||||||||||
Net income (loss)
|
$ | (3,036 | ) | $ | 31,429 | $ | (4,640 | ) | $ | (26,789 | ) | $ | (3,036 | ) |
|
Consolidating Condensed Statements of Operations
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
For the Three Months Ended March 31, 2010
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Net sales
|
$ | 0 | $ | 192,458 | $ | 3,990 | $ | 0 | $ | 196,448 | ||||||||||
Cost of sales
|
1,324 | 163,000 | 6,037 | 0 | 170,361 | |||||||||||||||
Gross profit (loss)
|
(1,324 | ) | 29,458 | (2,047 | ) | 0 | 26,087 | |||||||||||||
Selling, general and administrative expenses
|
4,864 | 2,255 | 4,690 | 0 | 11,809 | |||||||||||||||
Research and development expenses
|
0 | 1,955 | 72 | 0 | 2,027 | |||||||||||||||
Royalty expense
|
0 | 2,121 | 0 | 0 | 2,121 | |||||||||||||||
Income (loss) from operations
|
(6,188 | ) | 23,127 | (6,809 | ) | 0 | 10,130 | |||||||||||||
Interest expense
|
(7,056 | ) | 0 | 0 | 0 | (7,056 | ) | |||||||||||||
Other income (expense)
|
290 | 27 | 16 | 0 | 333 | |||||||||||||||
Income (loss) before income taxes
|
(12,954 | ) | 23,154 | (6,793 | ) | 0 | 3,407 | |||||||||||||
Provision (benefit) for income taxes
|
(5,052 | ) | 9,030 | (2,649 | ) | 0 | 1,329 | |||||||||||||
Equity in earnings of subsidiaries
|
9,980 | (88 | ) | 88 | (9,980 | ) | 0 | |||||||||||||
Net income (loss)
|
$ | 2,078 | $ | 14,036 | $ | (4,056 | ) | $ | (9,980 | ) | $ | 2,078 |
|
Consolidating Condensed Balance Sheets
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
March 31, 2011
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 229,924 | $ | 4 | $ | 120 | $ | 0 | $ | 230,048 | ||||||||||
Accounts receivable
|
0 | 134,786 | 4,239 | 0 | 139,025 | |||||||||||||||
Inventories
|
0 | 119,300 | 14,379 | 0 | 133,679 | |||||||||||||||
Prepaid and other current assets
|
14,063 | 16,018 | 741 | 0 | 30,822 | |||||||||||||||
Total current assets
|
243,987 | 270,108 | 19,479 | 0 | 533,574 | |||||||||||||||
Property, plant and equipment, net
|
7,667 | 213,858 | 20,539 | 0 | 242,064 | |||||||||||||||
Investment in subsidiaries
|
61,855 | 9,057 | 10 | (70,922 | ) | 0 | ||||||||||||||
Other assets
|
21,573 | 1,060 | 26,699 | 0 | 49,332 | |||||||||||||||
Total assets
|
$ | 335,082 | $ | 494,083 | $ | 66,727 | $ | (70,922 | ) | $ | 824,970 | |||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Accounts payable
|
$ | 790 | $ | 42,779 | $ | 1,617 | $ | 0 | $ | 45,186 | ||||||||||
Other current liabilities
|
20,332 | 42,331 | 2,884 | 0 | 65,547 | |||||||||||||||
Total current liabilities
|
21,122 | 85,110 | 4,501 | 0 | 110,733 | |||||||||||||||
Long-term debt
|
312,881 | 0 | 0 | 0 | 312,881 | |||||||||||||||
Other long-term liabilities
|
16,980 | 27,609 | 5,910 | 0 | 50,499 | |||||||||||||||
Intercompany accounts
|
(366,758 | ) | 122,179 | 244,579 | 0 | 0 | ||||||||||||||
Stockholders’ equity
|
350,857 | 259,185 | (188,263 | ) | (70,922 | ) | 350,857 | |||||||||||||
Total liabilities and stockholders’ equity
|
$ | 335,082 | $ | 494,083 | $ | 66,727 | $ | (70,922 | ) | $ | 824,970 |
|
Consolidating Condensed Balance Sheets
|
|||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
|
December 31, 2010
|
|||||||||||||||||||
|
Titan
|
Non-
|
||||||||||||||||||
|
Intl., Inc.
|
Guarantor
|
Guarantor
|
|||||||||||||||||
|
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 239,362 | $ | 3 | $ | 135 | $ | 0 | $ | 239,500 | ||||||||||
Accounts receivable
|
0 | 85,335 | 3,669 | 0 | 89,004 | |||||||||||||||
Inventories
|
0 | 113,104 | 14,878 | 0 | 127,982 | |||||||||||||||
Prepaid and other current assets
|
14,732 | 15,937 | 785 | 0 | 31,454 | |||||||||||||||
Total current assets
|
254,094 | 214,379 | 19,467 | 0 | 487,940 | |||||||||||||||
Property, plant and equipment, net
|
7,678 | 218,999 | 21,377 | 0 | 248,054 | |||||||||||||||
Investment in subsidiaries
|
39,465 | 9,057 | 10 | (48,532 | ) | 0 | ||||||||||||||
Other assets
|
22,183 | 869 | 28,424 | 0 | 51,476 | |||||||||||||||
Total assets
|
$ | 323,420 | $ | 443,304 | $ | 69,278 | $ | (48,532 | ) | $ | 787,470 | |||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Accounts payable
|
$ | 1,406 | $ | 32,305 | $ | 1,570 | $ | 0 | $ | 35,281 | ||||||||||
Other current liabilities
|
16,066 | 38,689 | 2,317 | 0 | 57,072 | |||||||||||||||
Total current liabilities
|
17,472 | 70,994 | 3,887 | 0 | 92,353 | |||||||||||||||
Long-term debt
|
373,564 | 0 | 0 | 0 | 373,564 | |||||||||||||||
Other long-term liabilities
|
9,161 | 28,083 | 5,994 | 0 | 43,238 | |||||||||||||||
Intercompany accounts
|
(355,092 | ) | 110,361 | 244,731 | 0 | 0 | ||||||||||||||
Stockholders’ equity
|
278,315 | 233,866 | (185,334 | ) | (48,532 | ) | 278,315 | |||||||||||||
Total liabilities and stockholders’ equity
|
$ | 323,420 | $ | 443,304 | $ | 69,278 | $ | (48,532 | ) | $ | 787,470 |
Consolidating Condensed Statements of Cash Flows
|
||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||
For the Three Months Ended March 31, 2011
|
||||||||||||||||
Titan
|
Non-
|
|||||||||||||||
Intl., Inc.
|
Guarantor
|
Guarantor
|
||||||||||||||
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net cash provided by (used for) operating activities
|
$ | (8,115 | ) | $ | 2,487 | $ | 33 | $ | (5,595 | ) | ||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
(312 | ) | (3,100 | ) | (57 | ) | (3,469 | ) | ||||||||
Other, net
|
0 | 614 | 9 | 623 | ||||||||||||
Net cash used for investing activities
|
(312 | ) | (2,486 | ) | (48 | ) | (2,846 | ) | ||||||||
Cash flows from financing activities:
|
||||||||||||||||
Repurchase of senior unsecured notes
|
(1,064 | ) | 0 | 0 | (1,064 | ) | ||||||||||
Proceeds from exercise of stock option
|
230 | 0 | 0 | 230 | ||||||||||||
Dividends paid
|
(177 | ) | 0 | 0 | (177 | ) | ||||||||||
Net cash used for financing activities
|
(1,011 | ) | 0 | 0 | (1,011 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
(9,438 | ) | 1 | (15 | ) | (9,452 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
239,362 | 3 | 135 | 239,500 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 229,924 | $ | 4 | $ | 120 | $ | 230,048 |
Consolidating Condensed Statements of Cash Flows
|
||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||
For the Three Months Ended March 31, 2010
|
||||||||||||||||
Titan
|
Non-
|
|||||||||||||||
Intl., Inc.
|
Guarantor
|
Guarantor
|
||||||||||||||
(Parent)
|
Subsidiaries
|
Subsidiaries
|
Consolidated
|
|||||||||||||
Net cash provided by (used for) operating activities
|
$ | (13,596 | ) | $ | 3,382 | $ | 75 | $ | (10,139 | ) | ||||||
Cash flows from investing activities:
|
||||||||||||||||
Capital expenditures
|
0 | (3,384 | ) | (124 | ) | (3,508 | ) | |||||||||
Other, net
|
0 | 8 | 34 | 42 | ||||||||||||
Net cash used for investing activities
|
0 | (3,376 | ) | (90 | ) | (3,466 | ) | |||||||||
Cash flows from financing activities:
|
||||||||||||||||
Payment of financing fees
|
(186 | ) | 0 | 0 | (186 | ) | ||||||||||
Dividends paid
|
(176 | ) | 0 | 0 | (176 | ) | ||||||||||
Net cash used for financing activities
|
(362 | ) | 0 | 0 | (362 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
(13,958 | ) | 6 | (15 | ) | (13,967 | ) | |||||||||
Cash and cash equivalents, beginning of period
|
229,004 | 8 | 170 | 229,182 | ||||||||||||
Cash and cash equivalents, end of period
|
$ | 215,046 | $ | 14 | $ | 155 | $ | 215,215 |
·
|
Anticipated trends in the Company’s business
|
·
|
Future expenditures for capital projects
|
·
|
The Company’s ability to continue to control costs and maintain quality
|
·
|
Ability to meet financial covenants and conditions of loan agreements
|
·
|
The Company’s business strategies, including its intention to introduce new products
|
·
|
Expectations concerning the performance and success of the Company’s existing and new products
|
·
|
The Company’s intention to consider and pursue acquisition and divestiture opportunities
|
·
|
The effect of a recession on the Company and its customers and suppliers
|
·
|
Changes in the Company’s end-user markets as a result of world economic or regulatory influences
|
·
|
Changes in the marketplace, including new products and pricing changes by the Company’s competitors
|
·
|
Ability to maintain satisfactory labor relations
|
·
|
Unfavorable outcomes of legal proceedings
|
·
|
Availability and price of raw materials
|
·
|
Levels of operating efficiencies
|
·
|
Unfavorable product liability and warranty claims
|
·
|
Actions of domestic and foreign governments
|
·
|
Results of investments
|
·
|
Laws and regulations related to climate change
|
·
|
Risks associated with environmental laws and regulations
|
Three months ended March 31,
|
||||||||||||
2011
|
2010
|
% Increase
|
||||||||||
Net sales
|
$ | 280,829 | $ | 196,448 | 43 | % | ||||||
Gross profit
|
56,272 | 26,087 | 116 | % | ||||||||
Income from operations
|
26,879 | 10,130 | 165 | % | ||||||||
Net income (loss)
|
(3,036 | ) | 2,078 | n/a |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net sales
|
$ | 280,829 | $ | 196,448 | ||||
Cost of sales
|
224,557 | 170,361 | ||||||
Gross profit
|
$ | 56,272 | $ | 26,087 | ||||
Gross profit margin
|
20.0 | % | 13.3 | % |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Selling, general and administrative
|
$ | 25,293 | $ | 11,809 | ||||
Percentage of net sales
|
9.0 | % | 6.0 | % |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Research and development
|
$ | 1,183 | $ | 2,027 | ||||
Percentage of net sales
|
0.4 | % | 1.0 | % |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Royalty expense
|
$ | 2,917 | $ | 2,121 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Income from operations
|
$ | 26,879 | $ | 10,130 | ||||
Percentage of net sales
|
9.6 | % | 5.2 | % |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Interest expense
|
$ | 6,280 | $ | 7,056 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Noncash convertible debt
conversion charge
|
$ | 16,135 | $ | 0 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Other income
|
$ | 193 | $ | 333 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Income tax expense
|
$ | 7,693 | $ | 1,329 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net income (loss)
|
$ | (3,036 | ) | $ | 2,078 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net sales
|
$ | 209,997 | $ | 151,112 | ||||
Gross profit
|
47,700 | 23,890 | ||||||
Income from operations
|
42,868 | 19,955 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net sales
|
$ | 66,511 | $ | 41,815 | ||||
Gross profit
|
8,195 | 3,150 | ||||||
Income from operations
|
6,288 | 690 |
Three months ended March 31,
|
||||||||
2011
|
2010
|
|||||||
Net sales
|
$ | 4,321 | $ | 3,521 | ||||
Gross profit
|
1,002 | 668 | ||||||
Income from operations
|
916 | 581 |
Three months ended
March 31, 2011
|
Agricultural
|
Earthmoving/
Construction
|
Consumer
|
Corporate
Expenses
|
Consolidated
Totals
|
|||||||||||||||
Net sales
|
$ | 209,997 | $ | 66,511 | $ | 4,321 | $ | 0 | $ | 280,829 | ||||||||||
Gross profit (loss)
|
47,700 | 8,195 | 1,002 | (625 | ) | 56,272 | ||||||||||||||
Income (loss) from operations
|
42,868 | 6,288 | 916 | (23,193 | ) | 26,879 | ||||||||||||||
Three months ended
March 31, 2010
|
||||||||||||||||||||
Net sales
|
$ | 151,112 | $ | 41,815 | $ | 3,521 | $ | 0 | $ | 196,448 | ||||||||||
Gross profit (loss)
|
23,890 | 3,150 | 668 | (1,621 | ) | 26,087 | ||||||||||||||
Income (loss) from operations
|
19,955 | 690 | 581 | (11,096 | ) | 10,130 |
(amounts in thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Cash
|
$ | 230,048 | $ | 239,500 |
(amounts in thousands)
|
Three months ended March 31,
|
|||||||||||
2011
|
2010
|
Change
|
||||||||||
Net income (loss)
|
$ | (3,036 | ) | $ | 2,078 | $ | (5,114 | ) | ||||
Noncash convertible debt
conversion charge
|
16,135 | 0 | 16,135 | |||||||||
Depreciation and amortization
|
9,299 | 9,281 | 18 | |||||||||
Deferred income tax provision
|
7,415 | 1,275 | 6,140 | |||||||||
Accounts receivable
|
(50,021 | ) | (34,789 | ) | (15,232 | ) | ||||||
Inventories
|
(5,697 | ) | (19,462 | ) | 13,765 | |||||||
Accounts payable
|
9,905 | 22,432 | (12,527 | ) | ||||||||
Other operating activities
|
10,405 | 9,046 | 1,359 | |||||||||
Cash used for operating activities
|
$ | (5,595 | ) | $ | (10,139 | ) | $ | 4,544 |
(amounts in thousands)
|
Three months ended March 31,
|
|||||||||||
2011
|
2010
|
Change
|
||||||||||
Capital expenditures
|
$ | (3,469 | ) | $ | (3,508 | ) | $ | 39 | ||||
Other investing activities
|
623 | 42 | 581 | |||||||||
Cash used for investing activities
|
$ | (2,846 | ) | $ | (3,466 | ) | $ | 620 |
(amounts in thousands)
|
Three months ended March 31,
|
|||||||||||
2011
|
2010
|
Change
|
||||||||||
Repurchase of senior notes
|
$ | (1,064 | ) | $ | 0 | $ | (1,064 | ) | ||||
Proceeds from exercise of stock options
|
230 | 0 | 230 | |||||||||
Payment of financing fees
|
0 | (186 | ) | 186 | ||||||||
Other financing activities
|
(177 | ) | (176 | ) | (1 | ) | ||||||
Cash used for financing activities
|
$ | (1,011 | ) | $ | (362 | ) | $ | (649 | ) |
·
|
Collateral coverage be equal to or greater than 1.2 times the outstanding revolver balance.
|
·
|
If the 30-day average of the outstanding revolver balance exceeds $70 million, the fixed charge coverage ratio be equal to or greater than a 1.1 to 1.0 ratio.
|
·
|
Limits on payments of dividends and repurchases of the Company’s stock.
|
·
|
Restrictions on the ability of the Company to make additional borrowings, or to consolidate, merge or otherwise fundamentally change the ownership of the Company.
|
·
|
Limitations on investments, dispositions of assets and guarantees of indebtedness.
|
·
|
Other customary affirmative and negative covenants.
|
31.1
|
Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32
|
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
TITAN INTERNATIONAL, INC.
|
|
(Registrant)
|
Date:
|
April 27, 2011
|
By:
|
/s/ MAURICE M. TAYLOR JR.
|
Maurice M. Taylor Jr.
|
|||
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
By:
|
/s/ PAUL G. REITZ
|
|
Paul G. Reitz
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Titan International, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
April 27, 2011
|
By:
|
/s/ MAURICE M. TAYLOR JR.
|
Maurice M. Taylor Jr.
|
|||
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Titan International, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
April 27, 2011
|
By:
|
/s/ PAUL G. REITZ
|
Paul G. Reitz
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|
TITAN INTERNATIONAL, INC.
|
|
(Registrant)
|
Date:
|
April 27, 2011
|
By:
|
/s/ MAURICE M. TAYLOR JR.
|
Maurice M. Taylor Jr.
|
|||
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
By:
|
/s/ PAUL G. REITZ
|
||
Paul G. Reitz
|
|||
Chief Financial Officer
|
|||
(Principal Financial Officer)
|