Toromont Industries Ltd.

Toromont Industries Ltd.

October 25, 2012 11:57 ET

Toromont Announces Results for the Third Quarter of 2012

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2012) - Toromont Industries Ltd. (TSX:TIH) today reported financial results for the third quarter ending September 30, 2012. Net earnings were up 6% on record third quarter revenues.

Three months ended
September 30
Nine months ended
September 30
millions, except per share amounts 2012 2011 %
2012 2011 %
Continuing operations basis:
Revenues $ 415.0 $ 367.3 13 % $ 1,076.1 $ 973.5 11 %
Operating income $ 47.0 $ 44.3 6 % $ 108.5 $ 100.0 9 %
Net earnings $ 32.7 $ 30.9 6 % $ 75.6 $ 68.4 11 %
Earnings per share - basic $ 0.43 $ 0.40 7 % $ 0.99 $ 0.89 11 %
Discontinued operations:
Net earnings $ - $ - n/m $ - $ 143.8 n/m
Earnings per share - basic $ - $ - n/m $ - $ 1.87 n/m
Net earnings $ 32.7 $ 30.9 6 % $ 75.6 $ 212.2 (64 %)
Earnings per share - basic $ 0.43 $ 0.40 7 % $ 0.99 $ 2.76 (64 %)

"Toromont continued to perform well in the quarter with record revenues and good profitability," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "In addition to strong machine sales, growth in product support and rental is healthy and CIMCO's industrial business has picked up nicely."


  • Equipment Group revenues and operating income set new records for the quarter and year-to-date. Revenues were $362 million in the quarter and $942 million year-to-date, up 15% and 14% respectively compared to last year. Revenue growth in both periods was driven by higher new equipment sales, rentals and product support. Operating income was $41.9 million for the quarter and $98.6 million year-to-date, up 6% and 12% respectively. Higher operating income reflects the higher revenues, partially offset by lower gross margins.

  • Equipment Group bookings of $108 million in the third quarter were 42% lower than the third quarter of 2011. Bookings in the year-to-date were 4% lower than the prior year. Equipment Group backlogs were $166 million at September 30, 2012 compared to $224 million at December 31, 2011 and $300 million at this time last year. The reduction in backlogs reflects current deliveries on significant mining orders which had long lead times and the recent softening in some construction segments.

  • CIMCO's results for the quarter improved from a year ago with revenues of $53 million and operating income of $5.1 million, up 1% and 8% respectively from the third quarter of 2011. Revenues benefited from increased industrial activity in Canada. Favourable project execution served to increase operating income. Improvement in the US market also contributed with gains in product support and project revenues.

  • On a year-to-date basis, CIMCO revenues were $134 million and operating income was $9.9 million, down 10% and 20% respectively from the comparable periods last year. The decline in revenues and operating income year-to-date was expected given the end of the Recreational Infrastructure Canada stimulus program which contributed to 2011 results.

  • CIMCO's bookings in the quarter were $22 million, up 34% from the same period last year. Bookings in the first nine months of 2012 were a record $139 million on a large order from Maple Leaf Foods for their facilities expansion program, representing 36% of the total. Backlogs were $118 million at September 30, 2012.

  • Toromont completed the acquisition of the coterminous Bucyrus distribution network from Caterpillar for $13.7 million. The addition of the former Bucyrus products, now rebranded CAT, strengthens Toromont's mining offering with a much broader product line addressing surface and underground mining requirements.

  • Net earnings from continuing operations were $32.7 million in the quarter, $0.43 per share basic, up 6% and 7% respectively from last year on higher revenues, offset by lower gross margins and higher net interest expense.

  • Total debt net of cash to total capitalization was 33%, within stated capital targets, versus 13% at year-end and 25% a year ago. Increased debt levels were substantially due to increased investment in working capital and rental fleet.

  • During the quarter, the company purchased and cancelled 137,601 shares under its normal course issuer bid. Total cost for the shares purchased was $2.9 million (average cost of $21.25 per share).

  • The regular quarterly dividend of $0.12 per common share was paid on October 2, 2012. The Company has paid dividends every year since going public in 1968.

"Our engagement level on major infrastructure and mining projects continues. However, we have seen recent signs of softening equipment demand," continued Mr. Medhurst. "We have a strong product offering, leading market positions, and momentum in rentals and product support. These factors, along with our disciplined approach, position the Company well for long-term growth."

Quarterly Results Materials

The complete third quarter report for 2012, including management's discussion and analysis ("MD&A") and unaudited condensed interim consolidated financial statements, is available on our website at

Quarterly Conference Call and Webcast

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Thursday, October 25, 2012 at 5:00 p.m. (ET). The call may be accessed by telephone at 1-866-226-1792 (toll free) or 416-340-2216 (Toronto area). A replay of the conference call will be available until Thursday, November 8, 2012 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 2557220.

Both the live webcast and the replay of the quarterly conference call can be accessed at


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 and may also be found at 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. 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

Three months ended
September 30
Nine months ended
September 30
($ thousands, except share amounts) Note 2012 2011 2012 2011
Revenues $ 415,039 $ 367,289 $ 1,076,105 $ 973,542
Cost of goods sold 314,504 270,577 810,656 727,934
Gross profit 100,535 96,712 265,449 245,608
Selling and administrative expenses 53,552 52,450 156,981 145,641
Operating income 46,983 44,262 108,468 99,967
Interest expense 13 2,597 2,039 6,967 6,888
Interest and investment income 13 (450 ) (794 ) (2,087 ) (1,850 )
Income before income taxes 44,836 43,017 103,588 94,929
Income taxes 14 12,103 12,087 27,962 26,474
Net earnings from continuing operations 32,733 30,930 75,626 68,455
Net gain on spinoff of Enerflex 22 - - - 133,164
Earnings from discontinued operations 22 - - - 10,617
Net Earnings $ 32,733 $ 30,930 $ 75,626 $ 212,236
Earnings (losses) attributable to :
Common shareholders $ 32,733 $ 30,930 $ 75,626 $ 212,859
Non-controlling interests $ - $ - $ - $ (623 )
Basic earnings per share
Continuing operations 15 $ 0.43 $ 0.40 $ 0.99 $ 0.89
Discontinued operations 15 - - - 1.87
$ 0.43 $ 0.40 $ 0.99 $ 2.76
Diluted earnings per share
Continuing operations 15 $ 0.43 $ 0.40 $ 0.98 $ 0.88
Discontinued operations 15 - - - 1.86
$ 0.43 $ 0.40 $ 0.98 $ 2.74
Weighted average number of shares outstanding
Basic 76,289,126 77,094,820 76,616,258 77,153,368
Diluted 76,803,571 77,180,425 77,225,086 77,529,358

Contact Information

  • Toromont Industries Ltd.
    Scott J. Medhurst
    President and Chief Executive Officer
    (416) 667-5623

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