On February 20, 2014, MHR Fund Management LLC exercised the call options it had purchased from Titan International Inc. in January.
The amount of consideration paid by MHR to exercise the options was approximately $26.3 million and gives the company an additional 3,240,000 shares of Titan stock. MHR purchased the call options at a premium: nearly $28.2 million.
This consideration was in addition to the premiums previously paid for the call options as described in the Initial Schedule 13D. For more information, check out the following link:
Titan posted a net loss of $15.6 million on net sales of $494.4 million for the fourth quarter ended Dec. 31, 2013. That compares to net income of $8.1 million on sales of $493.6 million for the same period the previous year.
According to C. Schon Williams, an analyst with BB&T Capital Markets, the fourth-quarter results were unimpressive.
"All segments underperformed, with organic sales declining for the sixth straight quarter. Management reiterated 2014 guidance, which looks increasingly optimistic given the headwinds in ag and mining."
Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993.