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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

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

Date of Report (Date of earliest event reported): February 29, 2024

TITAN INTERNATIONAL, INC.
(Exact name of Registrant as specified in its Charter)

Delaware1-1293636-3228472
(State of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

1525 Kautz Road, Suite 600, West Chicago, IL  60185
(Address of principal executive offices) (Zip Code)

(630) 377-0486
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol
Name of each exchange on which registered
Common stock, $0.0001 par valueTWINew York Stock Exchange




Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 29, 2024, Titan International, Inc. issued a press release reporting its fourth quarter and year-end 2023 financial results. A copy of the press release is furnished herewith as Exhibit 99.


Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d)Exhibits






SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




TITAN INTERNATIONAL, INC.
(Registrant)

Date:February 29, 2024
By:
/s/ DAVID A. MARTIN
David A. Martin
SVP and Chief Financial Officer
(Principal Financial Officer)







titancolora09.jpg    
Titan International, Inc.
1525 Kautz Road, Suite 600
West Chicago, IL 60185
        
INVESTOR CONTACT:    
Jeremy Hellman
VP - The Equity Group
jhellman@equityny.com

Alan Snyder
VP, Financial Planning & Investor Relations
630-251-0589
Alan.snyder@titan-intl.com


FOR IMMEDIATE RELEASE
Thursday, February 29, 2024
                                    

TITAN INTERNATIONAL, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 FINANCIAL PERFORMANCE

FY 2023 Results Highlighted by Buoyant Margins and Strong Free Cash Flow

Transformative Acquisition of Carlstar Group LLC. (“Carlstar”) Expected to Add Strategic Diversification of Customer Base, Product Line, Manufacturing and Distribution

WEST CHICAGO, ILLINOIS, February 29, 2024 - Titan International, Inc. (NYSE: TWI) (“Titan” or the “Company”), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today reported results for the fourth quarter and year ended December 31, 2023.

“One of our primary long-term objectives has been to structure Titan to deliver consistent, strong, bottom-line results, while serving our customers throughout various market cycles. Recall that 2022 was an excellent year for top-line sales as agricultural equipment dealers ramped up inventory in order to ensure they could satisfy expected farmer demand. While Titan certainly enjoyed that environment, as we moved into 2023 it also became clear that the aggressive inventory build in 2022 resulted in reduced demand in 2023 as OEMs worked down excess inventory. Despite this dynamic and its impact on our sales, we were able to report full year gross margins that were up slightly from 2022. We were also able to report record Free Cash Flow of $119 million, thanks to a firm focus on margins, along with working capital management. Our ability to deliver quality bottom-line and cash flow results in the face of a robust destocking headwind is a significant achievement and I want to thank our entire One Titan team for their hard work in making that happen,” stated Paul Reitz, President and Chief Executive Officer.

Mr. Reitz added, “As we look back through the past years, we were able to build long-term strength via product portfolio optimization, addressing non-core businesses, and an enhanced focus on new product development. In doing so, we have fortified our balance sheet by eliminating debt, and building cash and, at the same time, have been able to create value for shareholders by repurchasing shares. Now we’re excited to talk about the new growth path ahead of us through the accretive acquisition of Carlstar Group. As we highlighted in the press release we
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issued announcing the transaction, Carlstar will further diversify our customer base and product portfolio while also adding key manufacturing and distribution assets around the world. We are really pleased that we were able to complete this acquisition at a fair valuation of approximately four times their 2023 adjusted EBITDA, using a combination of cash and stock, which will not stress our balance sheet. As noted in the acquisition announcement, Carlstar is a well-run, profitable business which is complementary to our existing business, creating avenues for incremental growth and synergies.

Mr. Reitz continued, “Now moving to market conditions within our segments, commentary from large, global agricultural equipment companies through the first two months of 2024 is consistent with what we are seeing in the field and hearing from our customers, namely that demand is somewhat soft due to declining farmer incomes. On the other hand, inventories appear to have normalized, which is a positive allowing for a more direct connection between commodity prices and equipment demand, including both new and aftermarket, as we move through the year. Over the longer term, the continued adoption of precision farming represents a positive demand driver and farmers are also increasingly cognizant of the ability of our tire technologies such as LSW to deliver meaningful additions to their bottom lines. The construction and earthmoving markets, particularly non-residential construction projects, have the tailwind of infrastructure support and the transition to clean energy is expected to support commodity prices of key inputs such as rare earth elements, which will benefit the mining segment over the long term.”

Mr. Reitz continued, “Carlstar also brings us an expansive offering in outdoor power equipment, high speed trailers, and power sports within our Consumer segment. Those markets are retail-centric, where demand and market activity are subject to much different drivers than agriculture. We expect this to further solidify the margin and cash flow success we enjoyed in 2023 while also providing additional avenues for top line expansion. With the addition of Carlstar, we will have increased manufacturing flexibility and distribution channels, and the best-in-class wheel and tire lineup.”

Mr, Reitz concluded, “We are excited to get to work incorporating Carlstar’s operation with Titan’s. Given the scope of the integration work, along with the addition of new end markets, we think it is prudent to refrain from providing financial guidance at this time. As we progress through the integration, we will look to provide financial guidance later in the year.”

Financial Summary

Net sales for the fourth quarter ended December 31, 2023, were $390.2 million, compared to $509.8 million in the comparable quarter of 2022. Net sales change was across all segments and primarily driven by sales volume decrease caused by elevated inventory levels at our customers in the Americas, particularly OEM customers, lower levels of end customer demand in small agricultural equipment, and economic softness in Brazil. Net sales change was also impacted by negative price, primarily due to lower raw material and other input costs, most notably steel, and unfavorable foreign currency translation of -2%.

Gross profit for the fourth quarter ended December 31, 2023, was $58.3 million, compared to $76.7 million in the comparable prior year period. Gross margin was 14.9% of net sales for the quarter, consistent with 15.0% of net sales in the comparable prior year period. Margins were maintained as a result of lower production input costs and continued productivity initiatives across global production facilities, despite headwinds from the unfavorable impact of fixed cost absorption on lower revenue.

Selling, general, administrative, research and development (SGARD) expenses for the fourth quarter of 2023 were $35.2 million, compared to $33.3 million for the comparable prior year period. For the year ended December 31, 2023, SGARD expenses of $147.5 million were up a modest 3.0% from $143.2 million the prior year due to normal inflation within the business.

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Income from operations for the fourth quarter of 2023 was $20.7 million, or 5.3% of net sales, compared to $40.9 million, or 8.0% of net sales, for the fourth quarter of 2022. The change in income was primarily due to lower net sales and the net result of the items previously discussed.

Segment Information
Agricultural Segment
    
(Amounts in thousands)Three months endedTwelve months ended
December 31,December 31,
 20232022% Increase/(Decrease)20232022% Increase/(Decrease)
Net sales$192,564 $274,796 (29.9)%$980,537 $1,192,239 (17.8)%
Gross profit$28,014 $37,791 (25.9)%$163,026 $193,585 (15.8)%
Profit margin14.5 %13.8 %5.1 %16.6 %16.2 %2.5 %
Income from operations $14,571 $24,348 (40.2)%$100,642 $130,474 (22.9)%

Net sales in the agricultural segment were $192.6 million for the three months ended December 31, 2023, as compared to $274.8 million for the comparable period in 2022. The net sales change was primarily due to lower sales volumes in North and South America, which was caused by actions taken by customers primarily within the OEM channel to reduce elevated inventory levels. Additional drivers included softness in demand for small agricultural equipment and a decline in Brazilian economic activity. The change in net sales was also impacted by negative price associated with lower steel prices, and an unfavorable impact of foreign currency translation of 5.1%.
Earthmoving/Construction Segment

(Amounts in thousands)Three months endedTwelve months ended
December 31,December 31,
 20232022% Increase/(Decrease)20232022% Increase/(Decrease)
Net sales$159,106 $195,806 (18.7)%$687,758 $807,356 (14.8)%
Gross profit$22,107 $33,137 (33.3)%$110,690 $135,788 (18.5)%
Profit margin13.9 %16.9 %(17.8)%16.1 %16.8 %(4.2)%
Income from operations $8,561 $19,858 (56.9)%$55,122 $79,810 (30.9)%

Net sales in the earthmoving / construction segment were $159.1 million for the three months ended December 31, 2023, as compared to $195.8 million for the comparable period in 2022. The change in earthmoving/construction sales was primarily due to decreased volume in the Americas and the undercarriage business which was caused by elevated customer inventory levels and a slowdown at construction OEM customers. In addition, the net sales change was impacted by negative price from lower raw material and other input costs. The change in net sales was partially offset by favorable impact of foreign currency translation of 1.9%.

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Consumer Segment

(Amounts in thousands)Three months endedTwelve months ended
December 31,December 31,
 20232022% Increase/(Decrease)20232022% Increase/(Decrease)
Net sales$38,529 $39,164 (1.6)%$153,505 $169,785 (9.6)%
Gross profit$8,203 $5,767 42.2 %$32,133 $31,337 2.5 %
Profit margin21.3 %14.7 %44.9 %20.9 %18.5 %13.0 %
Income from operations $5,197 $3,867 34.4 %$22,380 $22,843 (2.0)%

Net sales in the consumer segment were $38.5 million for the three months ended December 31, 2023, as compared to $39.2 million for the comparable period in 2022. The change was due to lower sales volumes, mainly in Latin America for light utility truck tires related to softer economic conditions in the region. In addition, net sales were unfavorably impacted by negative price from lower raw material and other input costs, and foreign currency translation of 1.8%.

Non-GAAP Financial Measures

Adjusted EBITDA was $38.1 million for the fourth quarter of 2023, compared to $52.8 million in the comparable prior year period. The Company utilizes EBITDA and adjusted EBITDA, which are non-GAAP financial measures, as a means to measure its operating performance. A reconciliation of net income to EBITDA and adjusted EBITDA can be found at the end of this release.

Adjusted net income applicable to common shareholders for the fourth quarter of 2023 was $21.0 million, equal to income of $0.34 per basic and diluted share, compared to $27.7 million, equal to income of $0.44 per basic and diluted share, in the fourth quarter of 2022. The Company utilizes adjusted net income applicable to common shareholders, which is a non-GAAP financial measure, as a means to measure its operating performance. A reconciliation of net income applicable to common shareholders and adjusted net income applicable to common shareholders can be found at the end of this release.

Financial Condition

The Company ended 2023 with total cash and cash equivalents of $220.3 million, compared to $159.6 million at December 31, 2022. Long-term debt at December 31, 2023, was $409.2 million, compared to $414.8 million at December 31, 2022. Short-term debt was $16.9 million at December 31, 2023, compared to $30.9 million at December 31, 2022. Net debt (total debt less cash and cash equivalents) was $205.8 million at December 31, 2023, compared to $286.0 million at December 31, 2022. The decrease in net debt during 2023 was due to the increase in cash of $60.7 million and the decrease of short and long-term debt of $19.5 million.

Cash provided by operating activities increased by $18.7 million when comparing the year ended December 31, 2023 to 2022. This increase was primarily due to focused working capital management centered on collections of accounts receivable and inventory management, resulting in improvements of $70.1 million and $51.2 million, respectively. The increase was partially offset by the changes in accounts payable and other current liabilities by $55.0 million and $18.0 million, respectively.

Capital expenditures were $60.8 million for the year ended December 31, 2023, compared to $47.0 million for 2022. Capital expenditures represent plant equipment replacement and improvements, along with new tools, dies and molds related to new product development. The overall capital outlay for 2023 increased as the Company seeks to enhance the Company's existing facilities and manufacturing capabilities and drive plant efficiency and labor productivity gains.

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Teleconference and Webcast

Titan will be hosting a teleconference and webcast to discuss the fourth quarter financial results on Thursday, February 29, 2024, at 9 a.m. Eastern Time.

The real-time, listen-only webcast can be accessed using the following link release https://events.q4inc.com/attendee/889510132 or on our website at www.titan-intl.com within the “Investor Relations” page under the “News & Events” menu (https://ir.titan-intl.com/news-and-events/events/default.aspx). Listeners should access the website at least 15 minutes prior to the live event to download and install any necessary audio software.

A webcast replay of the teleconference will be available on our website (https://ir.titan-intl.com/news-and-events/events/default.aspx) soon after the live event.

In order to participate in the real-time teleconference, with live audio Q&A, participants should use one of the following dial in numbers:

U.S. Toll Free:             1 833 470 1428
All Other Locations: https://www.netroadshow.com/conferencing/global-numbers?confId=56511
Participants Access Code:     133146


Safe Harbor Statement

This press release contains forward-looking statements. These forward-looking statements are covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “would,” “could,” “potential,” “may,” “will,” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, these assumptions are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond Titan International, Inc.'s control. As a result, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to, the effect of geopolitical instability; the effect of a recession on the Company and its customers and suppliers; changes in the Company’s end-user markets into which the Company sells its products as a result of domestic and world economic or regulatory influences or otherwise; changes in the marketplace, including new products and pricing changes by the Company’s competitors; the Company's ability to maintain satisfactory labor relations; unfavorable outcomes of legal proceedings; the Company's ability to comply with current or future regulations applicable to the Company's business and the industry in which it competes or any actions taken or orders issued by regulatory authorities; availability and price of raw materials; levels of operating efficiencies; the effects of the Company's indebtedness and its compliance with the terms thereof; changes in the interest rate environment and their effects on the Company's outstanding indebtedness; unfavorable product liability and warranty claims; actions of domestic and foreign governments, including the imposition of additional tariffs; geopolitical and economic uncertainties relating to the countries in which the Company operates or does business; risks associated with acquisitions, including difficulty in integrating operations and personnel, disruption of ongoing business, and increased expenses; results of investments; the realization of projected synergies; the effects of potential processes to explore various strategic transactions, including potential dispositions; fluctuations in currency translations; risks associated with environmental laws and regulations; risks relating to our manufacturing facilities, including that any of our material facilities may become inoperable; risks relating to financial reporting, internal controls, tax accounting, and information systems; and the other risks and factors detailed in the Company’s periodic reports
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filed with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those reports. These forward-looking statements are made only as of the date hereof. The Company cautions that any forward-looking statements included in this press release are subject to a number of risks and uncertainties, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events, or for any other reason, except as required by law.

About Titan

Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products. Headquartered in West Chicago, Illinois, the Company globally produces a broad range of products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction, and consumer markets. For more information, visit www.titan-intl.com.




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Titan International, Inc.
Consolidated Statements of Operations
Amounts in thousands, except per share data
 Three months endedTwelve months ended
December 31,December 31,
 2023202220232022
(unaudited)(unaudited)
Net sales$390,199 $509,766 $1,821,800 $2,169,380 
Cost of sales331,875 433,071 1,515,951 1,808,670 
Gross profit58,324 76,695 305,849 360,710 
Selling, general and administrative expenses32,021 30,486 134,938 132,792 
Research and development expenses3,140 2,812 12,539 10,404 
Royalty expense2,445 2,495 9,645 11,712 
Income from operations20,718 40,902 148,727 205,802 
Interest expense, net(2,600)(6,961)(18,785)(29,796)
Foreign exchange (loss) gain(21,940)(7,822)(22,822)927 
Other income219 894 2,628 25,420 
Income before income taxes(3,603)27,013 109,748 202,353 
(Benefit) provision for income taxes(2,321)(15,961)26,042 23,167 
Net income (1,282)42,974 83,706 179,186 
Net income attributable to noncontrolling interests1,283 934 4,946 2,884 
Net income attributable to Titan and applicable to common shareholders$(2,565)$42,040 $78,760 $176,302 
Earnings per common share:   
Basic$(.04)$.67 $1.26 $2.80 
Diluted$(.04)$.66 $1.25 $2.77 
Average common shares and equivalents outstanding:  
Basic61,389 62,842 62,452 63,040 
Diluted62,088 63,521 62,961 63,691 


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Titan International, Inc.
Consolidated Balance Sheets
Amounts in thousands, except share data
 December 31, 2023December 31, 2022
Assets
Current assets  
Cash and cash equivalents$220,251 $159,577 
Accounts receivable, net219,145 266,758 
Inventories365,156 397,223 
Prepaid and other current assets72,229 86,070 
Total current assets876,781 909,628 
Property, plant and equipment, net321,694 296,605 
Operating lease assets11,955 8,932 
Deferred income taxes38,033 38,736 
Other long-term assets40,782 30,729 
Total assets$1,289,245 $1,284,630 
Liabilities  
Current liabilities  
Short-term debt$16,913 $30,857 
Accounts payable201,201 263,376 
Other current liabilities154,261 151,928 
Total current liabilities372,375 446,161 
Long-term debt409,178 414,761 
Deferred income taxes2,234 3,425 
Other long-term liabilities38,043 37,145 
Total liabilities821,830 901,492 
Equity  
Titan stockholders' equity
Common stock ($0.0001 par, 120,000,000 shares authorized, 66,525,269 issued at December 2023 and 66,525,269 at December 2022)— — 
Additional paid-in capital569,065 565,546 
Retained earnings169,623 90,863 
Treasury stock (at cost, 5,809,414 shares at December 2023 and 3,681,308 shares at December 2022)(52,585)(23,418)
Accumulated other comprehensive loss(219,043)(251,755)
Total Titan stockholders’ equity467,060 381,236 
Noncontrolling interests355 1,902 
Total equity467,415 383,138 
Total liabilities and equity$1,289,245 $1,284,630 




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Titan International, Inc.
Consolidated Statements of Cash Flows
All amounts in thousands

Twelve months ended
December 31,
Cash flows from operating activities:20232022
Net income $83,706 $179,186 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization42,434 42,747 
Loss on sale of the Australian wheel business— 10,890 
Deferred income tax provision (benefit)(2,081)(23,385)
Income on indirect taxes(3,096)(32,043)
Gain on fixed asset and investment sale(644)(216)
Stock-based compensation5,235 4,282 
Issuance of stock under 401(k) plan1,776 1,627 
Foreign currency loss (gain)19,734 2,661 
(Increase) decrease in assets:  
Accounts receivable42,871 (27,201)
Inventories31,635 (19,598)
Prepaid and other current assets17,596 11,366 
Other assets(2)(1,288)
Increase (decrease) in liabilities:  
Accounts payable(62,725)(7,754)
Other current liabilities872 18,888 
Other liabilities2,039 516 
Net cash provided by operating activities179,350 160,678 
Cash flows from investing activities:  
Capital expenditures(60,799)(46,974)
Proceeds from sale of investments2,085 9,293 
Other investing activities1,791 930 
Net cash used for investing activities(56,923)(36,751)
Cash flows from financing activities:  
Proceeds from borrowings6,666 88,940 
Payment on debt(27,608)(124,739)
Repurchase of common stock(32,579)(25,000)
Other financing activities(2,495)(511)
Net cash used for financing activities(56,016)(61,310)
Effect of exchange rate changes on cash(5,737)(1,148)
Net increase in cash and cash equivalents60,674 61,469 
Cash and cash equivalents, beginning of year159,577 98,108 
Cash and cash equivalents, end of year$220,251 $159,577 
Supplemental information:
Interest paid$30,269 $31,604 
Income taxes paid, net of refunds received$21,801 $24,105 
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Titan International, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
Amounts in thousands, except earnings per share data

The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). These supplemental schedules provide a quantitative reconciliation between each of adjusted net income attributable to Titan, EBITDA, adjusted EBITDA, net sales on a constant currency basis, and net debt, each of which is a non-GAAP financial measure and the most directly comparable financial measures calculated and reported in accordance with GAAP.

We present adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, and net debt, as we believe that they assist investors with analyzing our business results. In addition, management reviews each of these non-GAAP financial measures in order to evaluate the financial performance of each of our segments, as well as the Company’s performance as a whole. We believe that the presentation of these non‑GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.

Adjusted net income attributable to Titan, adjusted earnings per common share, EBITDA, adjusted EBITDA, net sales on a constant currency basis, and net debt should be considered supplemental to, not a substitute for, the financial measures calculated in accordance with GAAP. One should not consider these measures in isolation or as a substitute for our results reported under GAAP. These measures have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may be calculated differently than non-GAAP financial measures reported by other companies, limiting their usefulness as comparative measures. We attempt to compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.

The table below provides a reconciliation of adjusted net income attributable to Titan to net income applicable to common shareholders, the most directly comparable GAAP financial measure, for each of the three and twelve month periods ended December 31, 2023 and 2022.
Three months endedTwelve months ended
December 31,December 31,
2023202220232022
Net income attributable to Titan and applicable to common shareholders$(2,565)$42,040 $78,760 $176,302 
Adjustments:
  Foreign exchange loss (gain)21,940 7,823 22,822 (927)
  Loss on sale of Australian wheel business— — — 10,890 
  Proceeds from government grant— — — (1,324)
  Income on Brazilian indirect tax credits, net of taxes (a)
— 6,720 (3,096)(15,874)
  Net deferred income tax benefit (b)
— (28,882)— (28,882)
Restructuring charges1,637 — 1,637 — 
Adjusted Net income attributable to Titan and applicable to common shareholders$21,012 $27,701 $100,123 $140,185 
Adjusted income per common share:
  Basic $0.34 $0.44 $1.60 $2.22 
  Diluted $0.34 $0.44 $1.59 $2.20 
Average common shares and equivalents outstanding:
  Basic 61,389 62,842 62,452 63,040 
  Diluted62,088 63,521 62,961 63,691 



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(a) The Company incurred global intangible low-taxed income (GILTI) tax during the fourth quarter associated with the income on the Brazilian indirect tax credits.

(b) During the fourth quarter of 2022, the income tax benefit was primarily driven by a $53.3 million domestic valuation allowance release offset by $25.3 million of net NOLs used in the current year.

The table below provides a reconciliation of net income to EBITDA and adjusted EBITDA, non-GAAP financial measures, for the three and twelve-month periods ended December 31, 2023 and 2022.

Three months endedTwelve months ended
December 31,December 31,
2023202220232022
Net Income$(1,282)$42,974 $83,706 $179,186 
Adjustments:
Provision for income taxes(2,321)(15,961)26,042 23,167 
Interest expense, excluding interest income7,274 7,517 29,063 31,273 
Depreciation and amortization10,836 10,464 42,434 42,747 
EBITDA$14,507 $44,994 $181,245 $276,373 
Adjustments:
Foreign exchange loss (gain)21,940 7,823 22,822 (927)
Loss on sale of Australian wheel business— — — 10,890 
Proceeds from government grant— — — (1,324)
Income on Brazilian indirect tax credits, gross— — (475)(32,043)
Restructuring charges1,637 — 1,637 — 
Adjusted EBITDA$38,084 $52,817 $205,229 $252,969 

The table below sets forth, for the three and twelve-month periods ended December 31, 2023, the impact to net sales of currency translation (constant currency) by geography (in thousands, except percentages):

 Three Months Ended December 31,Change due to currency translationThree Months Ended December 31, 2023
20232022% Change from 2022$%Constant Currency
United States $160,352 $237,967 (32.6)%$— — %$160,352 
Europe / CIS134,265 151,901 (11.6)%(6,869)(4.5)%141,134 
Latin America71,847 98,290 (26.9)%780 0.8 %71,067 
Other International23,735 21,608 9.8%(4,815)(22.3)%28,550 
$390,199 $509,766 (23.5)%$(10,904)(2.1)%$401,103 

 Twelve Months Ended December 31,Change due to currency translationTwelve Months Ended December 31, 2023
20232022% Change from 2022$%Constant Currency
United States $814,676 $1,074,715 (24.2)%$— — %$814,676 
Europe / CIS558,677 577,877 (3.3)%(17,776)(3.1)%576,453 
Latin America354,979 422,439 (16.0)%(2,665)(0.6)%357,644 
Other International93,468 94,349 (0.9)%(17,333)(18.4)%110,801 
$1,821,800 $2,169,380 (16.0)%$(37,774)(1.7)%$1,859,574 
`    
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The table below provides a reconciliation of net debt, which is a non-GAAP financial measure:

 December 31, 2023September 30, 2023December 31, 2022
  
Long-term debt$409,178 $409,747 $414,761 
Short-term debt16,913 17,556 30,857 
   Total debt$426,091 $427,303 $445,618 
Cash and cash equivalents220,251 211,902 159,577 
     Net debt$205,840 $215,401 $286,041 

The table below provides a reconciliation of net cash provided by operating activities to free cash flow, which is a non-GAAP financial measure:

Three months endedTwelve months ended
December 31,December 31,
2023202220232022
Net cash provided by operating activities$39,244 $58,438 $179,350 $160,678 
Capital expenditures(19,319)(14,219)(60,799)(46,974)
Free cash flow$19,925 $44,219 $118,551 $113,704 
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v3.24.0.1
Cover Document
Feb. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 29, 2024
Entity Registrant Name TITAN INTERNATIONAL, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-12936
Entity Tax Identification Number 36-3228472
Entity Address, Address Line One 1525 Kautz Road, Suite 600
Entity Address, City or Town West Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60185
City Area Code (630)
Local Phone Number 377-0486
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common stock, $0.0001 par value
Trading Symbol TWI
Security Exchange Name NYSE
Entity Central Index Key 0000899751
Amendment Flag false

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