Toromont Industries Ltd.
TSX : TIH

Toromont Industries Ltd.

April 22, 2015 17:19 ET

Toromont Announces Results for the First Quarter of 2015 and Regular Quarterly Dividend

TORONTO, ONTARIO--(Marketwired - April 22, 2015) - Toromont Industries Ltd. (TSX:TIH) reported its financial results for the first quarter ended March 31, 2015.

Three months ended March 31
millions, except per share amounts 2015 2014 % change
Revenues $ 340.2 $ 311.7 9%
Operating income $ 28.8 $ 26.6 8%
Net earnings $ 20.1 $ 18.6 8%
Earnings per share - basic $ 0.26 $ 0.24 8%

"We delivered growth in a relatively tough market environment," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Momentum in the Equipment Group continued with increased equipment sales and strong product support levels. CIMCO results were lower on project activity and timing in a seasonally low quarter, partly offset by higher product support sales."

Highlights:

  • Equipment Group revenues were $296.7 million for the quarter, up 12% from 2014 on higher equipment sales and strong product support revenues. Operating income increased 14% compared to last year, reflecting the higher revenues.
  • Equipment Group backlogs were $140 million at March 31, 2015 compared to $102 million at December 31, 2014 and $134 million at this time last year. Substantially the entire backlog is expected to be delivered this year. Bookings increased $15 million, or 10%, to $164 million compared to the same period last year.
  • CIMCO revenues were $43.5 million, down 9% from 2014 as strong product support growth was more than offset by lower package revenues in both Canada and the US against tough year- over-year comparators. The first quarter is typically slower than the rest of the year due to seasonality affecting construction schedules. Operating income was lower in the quarter reflecting the lower revenues and higher selling and administrative expenses.
  • CIMCO bookings in the quarter were up 3% with strong activity in US market segments and Canadian recreational markets. Backlogs increased 15% to $83 million in the quarter with substantially all expected to deliver over the remainder of the year.
  • Net earnings increased 8% to $20.1 million on 9% higher revenues, an increasing proportion of which came from product support, partially offset by higher selling and administrative expense levels.
  • Earnings per share (basic) increased 8% or $0.02 to $0.26 in the quarter.
  • Toromont's financial position remains strong. Total debt, net of cash, to total capitalization was 11%, well within stated capital targets.
  • The Board of Directors announced the regular quarterly dividend of 17 cents per common share, payable July 2, 2015 to shareholders of record on June 11, 2015. The regular quarterly dividend was previously increased 13% to 17 cents per share effective with the dividend paid April 1, 2015.

"In the Equipment Group, heightened competitive conditions are expected to continue throughout the year, particularly in mining markets. We benefit from the diversity of markets we serve, product support growth and added returns from the expanded investment in the rental fleet," continued Mr. Medhurst. "We are encouraged by the growing product support sales at CIMCO combined with increasing bookings and backlog."

Annual and Special Meeting of Shareholders

The Company will hold its Annual and Special Meeting of Shareholders on Thursday, April 23, 2015, at 10:00 a.m. (ET) at the Hilton Garden Inn (Vaughan), 3201 Highway 7, Vaughan, Ontario. The meeting will also be available via live audio webcast at www.toromont.com.

Quarterly Results Materials

The complete first quarter report for 2015, including MD&A and unaudited interim condensed consolidated financial statements, is available on our website at www.toromont.com.

Quarterly Conference Call and Webcast

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Thursday, April 23, 2015 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-800-355-4959 (toll free) or 416-340-8527 (Toronto area). A replay of the conference call will be available until Thursday, May 7, 2015 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 1044093.

Both the live webcast and the replay of the quarterly conference call can be accessed at www.toromont.com.

Advisory

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 to control or predict. The actual results, performance or achievements of Toromont 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 operates; commodity price changes, including changes in the price of precious and base metals; 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; and, environmental regulation.

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 most recent annual or interim Management Discussion and Analysis, as filed with Canadian securities regulators at www.sedar.com and may also be found at www.toromont.com. 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.

About Toromont

Toromont Industries Ltd. operates through two business segments: The Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory in addition to industry leading rental operations and a growing agricultural equipment business. CIMCO is a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Both segments offer comprehensive product support capabilities. This press release and more information about Toromont Industries can be found at www.toromont.com.

TOROMONT INDUSTRIES LTD.
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Three months ended March 31
($ thousands, except share amounts) 2015 2014
Revenues $ 340,196 $ 311,748
Cost of goods sold 254,092 234,039
Gross profit 86,104 77,709
Selling and administrative expenses 57,310 51,149
Operating income 28,794 26,560
Interest expense 2,115 2,085
Interest and investment income (936 ) (1,066 )
Income before income taxes 27,615 25,541
Income taxes 7,478 6,912
Net earnings $ 20,137 $ 18,629
Earnings per share
Basic $ 0.26 $ 0.24
Diluted $ 0.26 $ 0.24
Weighted average number of shares outstanding
Basic 77,421,511 76,895,051
Diluted 78,132,037 77,567,084

Contact Information

  • Toromont Industries Ltd.
    Paul R. Jewer
    Executive Vice President and Chief Financial Officer
    (416) 667-5638
    www.toromont.com