Titan International, Inc. 1525 Kautz Road, Suite 600 West Chicago, IL 60185 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") Exp ...

Titan International, Inc. (NYSE:TWI) Q3 2023 Earnings Call Transcript November 2, 2023 9:00 AM ET Company Participants Alan Snyder - Vice President, Financial Planning and Analysis Paul Reitz - President and Chief Executive Officer David Martin - Senior Vice President and Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti & Company Kirk Ludtke - Imperial Capital Lawrence Maria - William Blair Operator Good morning, ladies and gentlemen, and welcome to the Titan International, Inc. ...

CTT HCAN. INVESTOR PRESENTATION NOVEMBER 2023 NYSE: TWI Forward-Looking Statements & Non-GAAP Metrics Forward-Looking Statements The accompanying material includes forward-looking comments and information concerning the company's expectations and objectives for the future. Readers of this material should understand that these forward-looking statements are based on the Company's expectations and subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12936 TITAN INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 1525 Kautz ...

Financial Data and Key Metrics Changes - In Q2 2023, the company reported net sales of $481 million, with net income of $32 million, GAAP EPS of $0.48, and adjusted EPS of $0.43, alongside adjusted EBITDA of $59 million [20][21] - Free cash flow for the quarter was $49 million, contributing to a cash balance of $196 million, marking the highest first-half free cash flow in over a decade [5][20] - The company reduced net debt from $433 million at the end of 2019 to $234 million as of Q2 2023, demonstrating significant balance sheet improvement [7][11] Business Line Data and Key Metrics Changes - Agricultural segment net sales decreased to $269 million from $319 million year-over-year, primarily due to lower sales volume and elevated inventory levels [21][22] - Earthmoving and Construction (EMC) segment net sales fell by 17% to $175 million, attributed to lower volume in the Americas, particularly Brazil, while sales in Europe remained steady [22] - Consumer segment net sales were $37 million, down 15% from the previous year, mainly due to reduced demand for light utility truck tires in Latin America [23] Market Data and Key Metrics Changes - Demand in the North American large Ag segment remains strong, supported by solid farmer income and low grain stocks, while small Ag volumes have decreased due to interest rates and consumer behavior [11][12] - The European Ag market has shown steady performance with volume growth, while short-term demand in Brazil has slipped due to political uncertainty and inventory destocking [12][15] - Construction demand is supported by solid infrastructure activity, although Brazil's construction sales have slowed, reflecting local market issues [12][15] Company Strategy and Development Direction - The company has executed a strategic plan focused on product development, divestiture of underperforming units, and improving profitability through operational efficiency [6][9] - A multi-year strategic plan is being developed to enhance future growth and plant improvements, leveraging the strengthened balance sheet [8][11] - Innovation remains a core strength, with ongoing investments in product development and market-leading products [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong year for 2023, despite challenges related to inventory levels and production adjustments [11][18] - The macro environment for large Ag is positive, with expectations for demand to align with retail levels in 2024 as inventory issues are resolved [15][17] - The company anticipates revenue for 2023 to be between $1.85 billion and $1.9 billion, with adjusted EBITDA of $200 million to $210 million [17][30] Other Important Information - The company recorded $3 million in indirect tax credits during Q2, contributing to strong cash flow [20] - Capital expenditures for Q2 2023 were approximately $16 million, supporting ongoing capital programs [25] - The company plans to continue share repurchases opportunistically, believing the stock does not fully reflect its transformation [25] Q&A Session Summary Question: Clarification on destocking issues - Management clarified that the destocking issue is primarily related to the agricultural sector, with some impact on EMC, particularly in Brazil [32][35] Question: Expectations for EMC recovery - Management indicated that EMC trends are expected to follow similar patterns as Ag, with seasonality affecting performance [36][37] Question: Handling customer demand and inventory - Management noted that customers are eager to resolve inventory issues by the end of 2023, aiming to align production with retail demand [38][39] Question: Stock buyback evaluation criteria - Management stated that stock buybacks will be opportunistic, focusing on price weakness without fundamental reasons [40] Question: ERP implementation impact on working capital - Management expressed confidence that the ERP system will enhance working capital management and operational efficiency [43][45] Question: Competitive dynamics in the market - Management observed that the current market stability has led to rational behavior among competitors, avoiding drastic capacity expansions [47][48] Question: Sales and EBITDA cadence in the second half - Management indicated typical seasonality effects in Q3 and Q4, with destocking expected to be more prevalent in Q3 [49][50]

Financial Performance - Net sales for Q2 2023 were $481,176, a decrease of 16% from $572,895 in Q2 2022[8] - Gross profit for Q2 2023 was $85,895, down 22% from $109,653 in Q2 2022[8] - Net income for Q2 2023 was $31,895, a decline of 54% compared to $68,921 in Q2 2022[9] - Comprehensive income attributable to Titan for Q2 2023 was $32,503, compared to $49,112 in Q2 2022[9] - Net income for the six months ended June 30, 2023, was $65,325,000, compared to $93,499,000 for the same period in 2022, representing a decrease of approximately 30%[16] - Earnings per share (EPS) for the three months ended June 30, 2023, were $0.48, a decrease from $1.07 in the same period of 2022[70] - Net income for Q2 2023 was $31.9 million, a decrease of $37.0 million from $68.9 million in Q2 2022, with basic income per share dropping from $1.07 to $0.48[134] Expenses and Costs - Research and development expenses increased to $3,218 in Q2 2023, up 44% from $2,238 in Q2 2022[8] - Selling, general and administrative expenses for Q2 2023 were $34.9 million, or 7.2% of net sales, slightly up from $34.7 million, or 6.1% of net sales in Q2 2022[116] - Interest expense for Q2 2023 was $5.8 million, down from $7.7 million in Q2 2022, due to reduced borrowing under global credit facilities[124] - The effective income tax rate for Q2 2023 was 22.8%, compared to 21.6% in Q2 2022, influenced by a decrease in overall pre-tax income[131] Assets and Liabilities - Total assets as of June 30, 2023, were $1,305,151, compared to $1,284,630 as of June 30, 2022[12] - Titan's shareholders' equity increased to $450,098 as of June 30, 2023, up from $381,236 a year earlier[12] - Titan's total current liabilities decreased to $403,246 as of June 30, 2023, from $446,161 a year earlier[12] - Total liabilities of the variable interest entities were $3,023,000 as of June 30, 2023, compared to $3,139,000 at the end of 2022[54] - The company’s total current assets were reported at $101.8 million, while total current liabilities were $82.3 million as of June 30, 2023[172] Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2023, increased to $88,890,000 from $48,918,000 in 2022, indicating a significant improvement in operational cash generation[16] - The company had $196.5 million in cash as of June 30, 2023, an increase from $159.6 million at the end of 2022[162] - Net cash used for investing activities was $27.3 million in the first six months of 2023, compared to $9.9 million in the same period of 2022, reflecting increased capital expenditures[166] - The company expects full-year capital expenditures to be approximately $55 million to $60 million, primarily for enhancing existing facilities and new product development[175] Market and Segment Performance - Agricultural segment net sales for Q2 2023 were $269.1 million, a 15.5% decrease from $318.6 million in Q2 2022, primarily due to lower sales volume in North America and Latin America[139] - Earthmoving/construction segment net sales were $174.7 million for the three months ended June 30, 2023, a decrease of 17.0% compared to $210.4 million in the same period of 2022[146] - Consumer segment net sales were $37.3 million for the three months ended June 30, 2023, a decrease of 15.0% compared to $43.9 million in the same period of 2022[154] - The agricultural market outlook indicates continued healthy demand supported by high commodity prices and farmer income, despite concerns over OEM customer demand due to elevated inventory levels[106] - The earthmoving/construction segment is expected to recover over the mid to long term, driven by mining capital budgets and GDP growth, despite a slowdown in OEM demand in Q2 2023[107] Shareholder Actions - The company repurchased 603,068 shares of its common stock totaling $6.4 million during the six months ended June 30, 2023, with $43.6 million remaining available for future repurchases under the authorized program[23] - The company repurchased a total of 493,279 shares of its common stock during the three months ended June 30, 2023, with approximately $43.6 million remaining for future repurchases[186] Foreign Operations and Risks - The company’s Russian operations represented approximately 7% of consolidated global sales for the three months ended June 30, 2023, consistent with the previous year[21] - The company has stopped any additional investments into its joint project in Russia due to ongoing sanctions[87] - The impact of the military conflict between Russia and Ukraine has not significantly affected global operations[86] - The company continues to monitor potential impacts on business operations, including increased energy costs and supply chain disruptions[88]

Titan International, Inc. (NYSE:TWI) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET Company Participants Alan Snyder - Vice President, Financial Planning and Analysis Paul Reitz - President and Chief Executive Officer David Martin - Senior Vice President and Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti & Company Kirk Ludtke - Imperial Capital Larry De Maria - William Blair Operator Good morning, ladies and gentlemen, and welcome to the Titan International, Inc., First ...

Financial Performance - Net sales for Q1 2023 were $548,644, a decrease of 1% from $555,997 in Q1 2022[8] - Gross profit increased to $95,557, up 10% from $86,729 in the same period last year[8] - Net income attributable to Titan and applicable to common shareholders rose to $31,838, representing a 33% increase from $23,922 in Q1 2022[8] - Earnings per share (EPS) for Q1 2023 were $0.51 (basic) and $0.50 (diluted), compared to $0.37 for both in Q1 2022[8] - Operating income for Q1 2023 was $55,136, an increase of 23% from $44,708 in Q1 2022[8] - Comprehensive income attributable to Titan was $39,736, down from $43,226 in Q1 2022[10] - Net income for Q1 2023 was $33.4 million, an increase of $8.9 million from $24.6 million in Q1 2022, with basic income per share rising to $0.51 from $0.37[119] Assets and Liabilities - Total assets increased to $1,344,807, up from $1,284,630 year-over-year[14] - Cash and cash equivalents at the end of Q1 2023 were $164,116, compared to $98,144 at the end of Q1 2022[16] - Long-term debt totaled $417.8 million as of March 31, 2023, down from $419.4 million at December 31, 2022, indicating a reduction of 0.4%[36] - Titan's total current liabilities increased to $167.9 million as of March 31, 2023, from $151.9 million at December 31, 2022, representing a 10.5% increase[33] - Current liabilities totaled $116.3 million and long-term debt amounted to $395.6 million as of March 31, 2023[145] Cash Flow - The company reported a net cash provided by operating activities of $24,086, compared to a net cash used of $(18,517) in Q1 2022[16] - Cash flows from operating activities were $24.1 million in Q1 2023, a significant increase of $42.6 million compared to a cash outflow of $18.5 million in Q1 2022, primarily due to higher profitability[136] - Net cash used for investing activities was $11.4 million in Q1 2023, compared to net cash provided of $2.4 million in Q1 2022, with capital expenditures increasing to $11.7 million[139] - In the first three months of 2023, the company used $10.4 million in cash for financing activities, with $11.4 million in debt payments and $1.3 million in stock repurchases, partially offset by $2.4 million in borrowings[140] Expenses - Research and development expenses increased to $3,014, up from $2,920 in Q1 2022[8] - Selling, general and administrative expenses decreased to $34.5 million, or 6.3% of net sales, down from $36.2 million, or 6.5% of net sales in Q1 2022[105] - Income tax expense increased to $14.2 million for the three months ended March 31, 2023, from $8.7 million in 2022, with an effective tax rate of 29.8%[59] Segment Performance - Agricultural segment net sales were $305.858 million, slightly down from $309.600 million in Q1 2022, while gross profit increased to $49.250 million from $47.924 million[69] - Earthmoving/construction segment income from operations improved significantly to $23.538 million in Q1 2023, up from $15.840 million in Q1 2022[69] - Consumer segment net sales were $43.9 million in Q1 2023, a decrease of 2.8% from $45.1 million in Q1 2022, primarily due to lower sales volumes in Latin America and Russia[128] Market and Operational Insights - The agricultural market outlook remains positive due to high commodity prices and farmer income, despite concerns over inventory levels[96] - The earthmoving/construction segment is expected to remain stable, supported by low equipment inventory levels and increased mining capital budgets[97] - The company continues to monitor the impacts of the Russia-Ukraine conflict, particularly regarding increased energy costs in Europe[22] - The impact of the COVID-19 pandemic on operations was less severe in Q1 2023 compared to the same period in 2022, although supply chain constraints remain[76] Shareholder Actions - The company repurchased 109,789 shares of common stock for a total of $1.3 million under its Share Repurchase Program, with $48.7 million remaining available for future repurchases[26] - The company repurchased 109,789 shares of common stock at an average price of $11.75 during March 2023, with $48.7 million remaining available for future repurchases under the authorized program[160]

Titan International, Inc. (NYSE:TWI) Q4 2022 Earnings Conference Call February 28, 2023 9:00 AM ET Company Participants Alan Snyder – Vice President, Financial Planning and Analysis Paul Reitz – President and Chief Executive Officer David Martin – Senior Vice President and Chief Financial Officer Conference Call Participants Steve Ferazani – Sidoti Larry DeMaria – William Blair Kirk Ludtke – Imperial Capital Operator Good morning, ladies and gentlemen, and welcome to the Titan International Incorporated Fou ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Titan International is a global manufacturer of wheels, tires, and undercarriage systems for off-highway vehicles, serving agricultural, earthmoving, and consumer sectors - The company is a global manufacturer and supplier of wheels, tires, and undercarriage systems for the agricultural, earthmoving/construction, and consumer markets[18](index=18&type=chunk)[19](index=19&type=chunk) - A key competitive strength is the ability to produce both wheels and tires, enabling the company to provide complete assembly solutions to customers like **AGCO, Caterpillar, CNH, and Deere & Company**[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - Strategic priorities include promoting its proprietary **LSW®** tire technology, growing its higher-margin aftermarket business, and improving operational efficiencies[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - In **March 2022**, the company sold its Australian wheel business to **OTR Tyres** for approximately **$17.5 million** in gross proceeds and repatriated cash as part of its strategy to divest non-core assets[33](index=33&type=chunk) Customer Concentration (FY **2022 vs 2021**) | Customer Group | % of Net Sales (2022) | % of Net Sales (2021) | | :--- | :--- | :--- | | Top 10 Customers | **43%** | 40% | | **Deere & Company** | **15%** | 12% | International Operations Net Sales Contribution | Region | % of Net Sales (2022) | % of Net Sales (2021) | | :--- | :--- | :--- | | Latin America | **19%** | 18% | | Europe | **21%** | 22% | | Russia | **6%** | **6%** | Research & Development Expenses (**2020-2022**) | Year | R&D Expense (in millions) | | :--- | :--- | | **2022** | **$10.4** | | **2021** | **$10.1** | | **2020** | **$9.0** | [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from commodity price volatility, concentrated customer base, cyclical end-markets, international operations, and potential IT system disruptions - The company is exposed to price fluctuations of key commodities like steel and rubber, as it does not typically enter into long-term contracts or use derivative instruments to hedge these risks[73](index=73&type=chunk) - Operations are subject to risks from cyclical industries (agriculture, construction) and a concentrated customer base, with the ten largest customers accounting for **43%** of **2022** net sales[79](index=79&type=chunk)[83](index=83&type=chunk) - The military conflict between Russia and Ukraine poses a risk to the company's Russian operations (**Voltyre-Prom**), which represent approximately **7%** of consolidated assets and **6%** of global sales in **2022**[93](index=93&type=chunk)[95](index=95&type=chunk) - Debt obligations contain covenants that could limit financial and operational flexibility, including restrictions on dividends, stock repurchases, and additional borrowings[88](index=88&type=chunk) - The company faces risks from potential IT system failures or cybersecurity attacks, especially as it upgrades to cloud-based ERP systems, and must comply with evolving data privacy laws like **GDPR**[103](index=103&type=chunk)[104](index=104&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None [Properties](index=20&type=section&id=Item%202.%20Properties) Titan owns several large manufacturing and distribution facilities, with its most significant properties located in Sao Paulo, Brazil, and various locations in the United States and Russia Major Owned Properties (>1M sq ft) | Location | Approx. Square Footage | | :--- | :--- | | **Sao Paulo, Brazil** | 2,917,000 | | **Union City, Tennessee** | 2,212,000 | | **Volzhsky, Russia** | 2,153,000 | | **Des Moines, Iowa** | 1,930,000 | | **Quincy, Illinois** | 1,205,000 | | **Freeport, Illinois** | 1,202,000 | [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings typical for its business, which are not anticipated to have a material effect on its financial position or results - The company is subject to routine legal proceedings and claims arising from the normal course of business. See **Note 24** for further details[116](index=116&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Titan's common stock trades on the **NYSE** under the symbol **TWI**, with quarterly cash dividends suspended since **June 2020** and no dividends paid in **2022 or 2021** - The company's common stock trades on the New York Stock Exchange (**NYSE**) under the symbol **TWI**[120](index=120&type=chunk) - The quarterly common stock dividend was suspended on **June 11, 2020**, and remained suspended through **2022**. No dividends were declared in **2022 or 2021**[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In **2022**, net sales grew **22%** to **$2.17 billion** and net income surged to **$179.2 million**, driven by strong demand, favorable pricing, and tax benefits, with robust operating cash flow of **$160.7 million** Financial Highlights (FY **2022 vs. FY 2021**) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | **$2,169.4 M** | $1,780.2 M | **+22%** | | Gross Profit | **$360.7 M** | $237.5 M | **+52%** | | Gross Margin | **17%** | **13%** | **+31%** | | Income from Operations | **$205.8 M** | $85.2 M | **+142%** | | Net Income | **$179.2 M** | $49.9 M | **+259%** | | Diluted EPS | **$2.77** | $0.79 | **+251%** | - The company's Russian operations (**Voltyre-Prom**) account for approximately **6%** of consolidated global sales and **7%** of consolidated assets as of year-end **2022**. The Russia-Ukraine conflict has not had a significant impact on global operations to date[129](index=129&type=chunk) - In **2022**, the company recorded **$32.0 million** in other income from the approval of Brazilian indirect tax credits, which also resulted in **$16.1 million** of associated income tax expense[134](index=134&type=chunk) - The company released a significant portion of its U.S. valuation allowance on deferred tax assets, resulting in a tax benefit of **$47.4 million** in **2022**, due to achieving a three-year cumulative income position[156](index=156&type=chunk)[157](index=157&type=chunk) - Net cash provided by operating activities was **$160.7 million** in **2022**, a substantial increase from **$10.7 million** in **2021**, primarily driven by higher net income[170](index=170&type=chunk)[171](index=171&type=chunk) - Capital expenditures for **2023** are forecasted to be between **$55 million and $60 million**, intended to enhance manufacturing capabilities and drive productivity[182](index=182&type=chunk) [Market Conditions and Outlook](index=24&type=section&id=Market%20Conditions%20and%20Outlook) The **2023** outlook is positive, with sustained stability in agriculture, modest growth in earthmoving/construction, and stability in the consumer market - **Agricultural Market:** Favorable conditions are expected to continue into **2023**, supported by strong farmer income, replacement of aging equipment, and low dealer inventories[137](index=137&type=chunk) - **Earthmoving/Construction Market:** Modest growth is expected in **2023**, driven by infrastructure development and healthy mining capital budgets, though rising interest rates may soften housing starts[138](index=138&type=chunk) - **Consumer Market:** Markets remained stable in **2022**. This segment is influenced by consumer spending, interest rates, and other macroeconomic factors[139](index=139&type=chunk)[140](index=140&type=chunk) [Results of Operations (FY 2022 vs. FY 2021)](index=26&type=section&id=Results%20of%20Operations) Net sales increased **22%** to **$2.17 billion** in **2022**, with gross margin expanding to **17%** and net income significantly boosted by tax credits and valuation allowance release - The **22%** increase in net sales was primarily driven by price increases in response to inflation, with a lesser impact from increased volume. Sales were unfavorably impacted by foreign currency translation (**3.6%**) and the sale of the Australian wheel business (**1.8%**)[144](index=144&type=chunk) - Gross profit margin improved from **13%** in **2021** to **17%** in **2022**, attributed to higher sales, better operating leverage, and cost reduction initiatives[145](index=145&type=chunk) - Other income increased to **$25.4 million**, mainly due to a **$32.0 million** gain on indirect tax credits in Brazil, partially offset by a **$10.9 million** loss on the sale of the Australian wheel business[154](index=154&type=chunk) - The effective tax rate was **11.4%** in **2022**, compared to **2.3%** in **2021**. The **2022** rate was favorably impacted by a **$47.4 million** valuation allowance release[155](index=155&type=chunk)[156](index=156&type=chunk) [Segment Information](index=28&type=section&id=Segment%20Information) All three segments, Agricultural, Earthmoving/Construction, and Consumer, reported strong sales and operating income growth in **2022**, driven by price/mix and volume increases Agricultural Segment Performance (FY **2022 vs. FY 2021**) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | **$1,192.2 M** | $949.4 M | **+26%** | | Gross Profit | **$193.6 M** | $135.8 M | **+43%** | | Income from Operations | **$130.5 M** | $77.7 M | **+68%** | Earthmoving/Construction Segment Performance (FY **2022 vs. FY 2021**) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | **$807.4 M** | $693.4 M | **+16%** | | Gross Profit | **$135.8 M** | $83.7 M | **+62%** | | Income from Operations | **$79.8 M** | $27.8 M | **+187%** | Consumer Segment Performance (FY **2022 vs. FY 2021**) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | **$169.8 M** | $137.5 M | **+24%** | | Gross Profit | **$31.3 M** | $18.0 M | **+74%** | | Income from Operations | **$22.8 M** | $9.6 M | **+139%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved in **2022** with **$159.6 million** in cash and **$160.7 million** in operating cash flow, supporting capital expenditures and stock repurchases, with sufficient liquidity anticipated for **2023** - Cash and cash equivalents increased by **$61.5 million** to **$159.6 million** at year-end **2022**[170](index=170&type=chunk) - Net cash from operating activities was **$160.7 million**, driven by strong net income, which more than offset increased working capital needs in receivables and inventory[170](index=170&type=chunk) - Investing activities used **$36.8 million**, including **$47.0 million** in capital expenditures, partially offset by **$9.3 million** in proceeds from the sale of the Australian wheel business[173](index=173&type=chunk) - Financing activities used **$61.3 million**, primarily for debt payments (**$124.7 million**) and a **$25.0 million** common stock repurchase[175](index=175&type=chunk) - At **December 31, 2022**, the company had no outstanding borrowings under its **$125 million** revolving credit facility, with **$117.8 million** available[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks including foreign currency fluctuations, commodity price volatility for raw materials, and interest rate changes on its variable-rate debt - The company is exposed to foreign currency risk, with a net investment in foreign entities of **$249.0 million** at year-end **2022**. A hypothetical **10%** adverse change in exchange rates would result in a loss of value of approximately **$25.0 million**[192](index=192&type=chunk) - Titan is exposed to commodity price risk for materials like steel and rubber and does not use derivative instruments to hedge these fluctuations[193](index=193&type=chunk) - Interest rate risk is tied to the variable-rate **$125 million** credit facility. A **100 basis point (1%)** increase in interest rates would change annual interest expense by about **$1.2 million** if the facility were fully drawn[194](index=194&type=chunk) [Financial Statements and Supplementary Data](index=34&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the detailed financial statements and schedules located in **Part IV, Item 15** of the report - Reference is made to **Part IV, Item 15** of this report for the full financial statements and supplementary data[196](index=196&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=35&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None [Controls and Procedures](index=35&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of **December 31, 2022**, management concluded that the company's disclosure controls and internal control over financial reporting were effective, with no material changes during the **fourth quarter of 2022** - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2022**[198](index=198&type=chunk) - Management assessed internal control over financial reporting using the **COSO 2013 framework** and concluded it was effective as of **December 31, 2022**[201](index=201&type=chunk) - No changes in internal control over financial reporting occurred during the **fourth quarter of 2022** that materially affected, or are reasonably likely to materially affect, these controls[199](index=199&type=chunk) [Other Information](index=35&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=35&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable Part III [Directors, Executive Officers and Corporate Governance](index=36&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on the company's directors and executive officers, including **Paul G. Reitz** and **David A. Martin**, is incorporated by reference from the **2023 Proxy Statement** - Information regarding directors and corporate governance is incorporated by reference from the Company's **2023 Proxy Statement**[206](index=206&type=chunk) - Key executive officers include **Paul G. Reitz**, President and CEO, and **David A. Martin**, SVP and CFO[207](index=207&type=chunk)[208](index=208&type=chunk) [Executive Compensation](index=36&type=section&id=Item%2011.%20Executive%20Compensation) Detailed information regarding executive officer compensation is incorporated by reference from the company's **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Company's **2023 Proxy Statement**[212](index=212&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=36&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of beneficial owners, management, and related stockholder matters is incorporated by reference from the company's **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Company's **2023 Proxy Statement**[212](index=212&type=chunk) [Certain Relationships, Related Transactions, and Director Independence](index=36&type=section&id=Item%2013.%20Certain%20Relationships%2C%20Related%20Transactions%2C%20and%20Director%20Independence) Details concerning certain relationships, related party transactions, and director independence are incorporated by reference from the **2023 Proxy Statement** and **Note 27** of the Consolidated Financial Statements - Information required by this item is incorporated by reference from the Company's **2023 Proxy Statement** and also appears in **Note 27** of the Notes to Consolidated Financial Statements[213](index=213&type=chunk) [Principal Accounting Fees and Services](index=36&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding fees paid to the principal accountant for audit and other services is incorporated by reference from the company's **2023 Proxy Statement** - Information required by this item is incorporated by reference from the Company's **2023 Proxy Statement**[214](index=214&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=38&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed with the Form 10-K, with full financial statements beginning on page **F-1** - This item lists the financial statements, financial statement schedules, and exhibits included in or incorporated by reference into the Form 10-K[217](index=217&type=chunk) [Form 10-K Summary](index=40&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary for this item - None