Titan Machinery Inc. (NASDAQ:TITN) Q4 2017 Earnings Conference Call March 30, 2017 08:30 ET Executives John Mills - IR, ICR David Meyer - Chairman & CEO Mar - From Seeking Alpha
Lastly, due to the number of participants on today's call, we ask that you keep your question period to two questions and then rejoin the queue.
Our operating expenses as a percentage of revenue in the fourth quarter of fiscal 2017 was 16.4% compared to 16.3% for the same quarter last year.
Absorption for the fourth quarter of fiscal 2017 improved to 70.7% compared to 61.1% due to a slight increase in gross profit from parts service and rental in fiscal 2017 combined with a reduction in our fixed operating cost and lower floor plan interest expense.
We expect to drive continued improvement in our absorption rate as we implement our restructuring plan as David highlighted which will increase focus on parts, service and rental while reducing our operating cost structure.
So by putting the expert teams together, as opposed to, say, a store manager that has responsibility for not only parts and service, but new and used equipment sales, to have dedicated teams across complexes of 2 to 3 stores that put the resources in for the parts and the service department, and we need to include precision in this also, to put that resources in our company, so we've got the dedicated team that report up through people that are specifically focused, they wake up every morning, all they worry about is product support, the parts business, the service business, our up-time inspections, the training and all the support that goes with that, the extended hours in either department and how we can better serve the customers and what that translates into.