Toromont Industries Ltd.
TSX : TIH

Toromont Industries Ltd.

April 25, 2011 10:00 ET

Toromont Announces Quarterly Dividend

TORONTO, ONTARIO--(Marketwire - April 25, 2011) -Toromont Industries Ltd. (TSX:TIH) today announced the regular quarterly dividend of 16 cents per share on outstanding common shares, payable July 1, 2011 to shareholders of record at the close of business on June 10, 2011, was declared on April 21, 2011 by the Company's Board of Directors.

If, as expected, the previously announced spinoff of Enerflex Ltd., Toromont's natural gas compression and processing equipment business, is effected prior to the June 10, 2011 record date for the quarterly dividend, Toromont will instead pay this quarterly dividend in an amount of 10 cents per share on its outstanding common shares. In these circumstances, it is expected that the Board of Directors of Enerflex Ltd. would declare a dividend of 6 cents per share on its outstanding common shares to holders of record on June 10, 2011, such that the initial quarterly dividends paid by Toromont and Enerflex Ltd. to their respective shareholders after the spinoff is effected will, in the aggregate, equal 16 cents per share.

Further details in respect of the proposed spinoff, including the dividend policies of Toromont and Enerflex following the spinoff, are included in Toromont's management information circular dated April 11, 2011, copies of which are available at www.sedar.com and www.toromont.com/spinoff.

About Toromont

Toromont Industries Ltd. operates through two business segments: The Equipment Group and the Compression Group. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory in addition to industry leading rental operations. The Compression Group is a global leader specializing in the design, engineering, fabrication and installation of compression systems for natural gas, coal-bed methane, fuel gas and carbon dioxide in addition to process systems and CIMCO industrial and recreational refrigeration systems. Both Groups offer comprehensive product support capabilities. This press release and more information about Toromont can be found on the web at www.toromont.com.

Advisory Regarding Forward-Looking Information

Information in this press release that is not a historical fact is "forward-looking information". Words such as "plans", "intends", "outlook", "expects", "anticipates", "estimates", "believes", "likely", "should", "could", "will", "may" and similar expressions are intended to identify statements containing forward-looking information. Forward-looking information in this press release is based on current objectives, strategies, expectations and assumptions which management considers appropriate and reasonable at the time including, but not limited to, general economic and industry growth rates, commodity prices, currency exchange and interest rates, competitive intensity and shareholder and regulatory approvals.

By its nature, forward-looking information is subject to risks and uncertainties which may be beyond the ability of Toromont Industries Ltd. ("Toromont") to control or predict. The actual results, performance or achievements of Toromont or Enerflex Ltd. ("Enerflex") could differ materially from those expressed or implied by forward-looking information. Factors that could cause actual results, performance, achievements or events to differ from current expectations include, among others, risks and uncertainties related to: business cycles, including general economic conditions in the countries in which Toromont and Enerflex operate; commodity price changes, including changes in the price of precious and base metals and natural gas; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability of financing; environmental regulation; the integration of Enerflex's operations with the gas compression operations of Toromont; and Enerflex's future dividend policy. Forward-looking information in respect of the spinoff of Enerflex as a separate, publicly traded company also entails various risks and uncertainties, including, among others, risks and uncertainties related to: obtaining approvals, rulings and consents, or satisfying other requirements, necessary or desirable to permit or facilitate completion of the spinoff; future factors that may arise making it inadvisable to proceed with, or advisable to delay, all or part of the spinoff, the potential for a lower combined trading price of common shares of Toromont and Enerflex after the spinoff the lack of an established market for common shares of Enerflex, the possibility of a negative effect on trading prices if current shareholders of Toromont are unwilling or unable to hold common shares of Toromont or Enerflex after the spinoff, potential exposure to substantial tax liabilities if the tax-deferred spinoff requirements are not met, delays or amendments to the spinoff if certain consents and approvals are not obtained on a timely basis, potentially significant indemnification obligations on Toromont and Enerflex following the spinoff and less diverse businesses of the separate companies resulting from the spinoff.

Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking information and statements included in this press release. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out in the "Risks and Risk Management" and "Outlook" sections of Toromont's annual Management Discussion and Analysis for the year ended December 31, 2010, as filed with Canadian securities regulators at www.sedar.com and may also be found at www.toromont.com. Certain risks and uncertainties specific to the proposed spinoff and Enerflex are further described in the information circular dated April 11, 2011 for the special shareholder meeting at which the spinoff will be considered. Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by statements containing forward-looking information.

Readers are cautioned not to place undue reliance on statements containing forward-looking information that are included in this press release, which are made as of the date of this press release, and not to use such information for anything other than their intended purpose. Toromont disclaims any obligation or intention to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

Contact Information

  • Toromont Industries Ltd.
    Robert M. Ogilvie
    Chairman & Chief Executive Officer
    (416) 667-5554

    Toromont Industries Ltd.
    Paul R. Jewer
    Vice President Finance & CFO
    (416) 667-5638
    www.toromont.com