Toromont Announces Results for the First Quarter of 2013 and Regular Quarterly Dividend
Three months ended
|millions, except per share amounts||2013||2012||% change|
|Earnings per share - basic||$||0.23||$||0.22||5||%|
"We are pleased with results for the first quarter, traditionally our weakest due to seasonality. Revenues were up 11% from a year ago, fueled by increased equipment sales, rentals and product support," said
Equipment Grouprevenues for the quarter were $267 million, up 9% from 2012 on higher new equipment sales, product support and rentals. Operating income increased 7% compared to last year on the higher revenues. Heavy construction and power systems reported strong activity levels. Equipment Groupbacklogs were $147 millionat March 31, 2013compared to $128 millionat December 31, 2012and $260 millionat this time last year. Backlogs have declined from this time last year due to significant mining deliveries during 2012 and improved equipment availability. Bookings were $145 millionin the first quarter of 2013 compared to $155 millionfor the same period last year.
- CIMCO revenues of
$46 millionin the quarter were 30% higher than a year ago. Traditionally, results at CIMCO are softer in the first quarter due to the seasonality of construction schedules. Operating income decreased 18% in the quarter on lower gross margins resulting from tighter bids, more favourable contract close-outs last year, and the mix of product support revenues to total. Given this normal seasonal pattern, it was still a good first quarter and CIMCO's third best for profitability.
- CIMCO bookings in the first quarter of 2013 were
$34 million, down 55% versus the first quarter of 2012. Excluding orders from Maple Leaf Foods totalling a record $50 millionin the prior year, bookings were 35% higher than 2012 on stronger industrial activity. Backlogs were $107 millionat March 31, 2013.
- Net earnings were
$17.8 millionin the quarter ( $0.23per share basic), up 5% from $17.0 millionreported last year, reflecting higher revenues and good expense control, partially offset by lower gross margins. Equipment Groupinventory levels have been a focus this year. These inventories were reduced $46 millionfrom a year ago and $3 millionfrom December 31, 2012. The reduction from year-end represents continued focus as the normal seasonal trend would have levels increasing during the first quarter.
- Total debt net of cash to total capitalization was 26%, well within stated capital targets.
- The Board of Directors announced the regular quarterly dividend of
13 centsper share on outstanding common shares, payable July 2, 2013to shareholders of record on June 13, 2013. The regular quarterly dividend was previously increased 8% to 13 centsper share effective with the dividend paid April 1, 2013.
"We are encouraged with the results for the first quarter of the year, our best ever first quarter. Activity levels and sentiment in the core construction markets, rental segments and improved performance at Power Systems were healthy," continued
Annual and Special Meeting of Shareholders
The Company will hold its Annual and Special Meeting of Shareholders on
Quarterly Results Materials
The complete first quarter report for 2013, including MD&A and unaudited interim condensed 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
Both the live webcast and the replay of the quarterly conference call can be accessed at www.toromont.com.
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.
|INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS|
Three months ended
|($ thousands, except share amounts)||2013||2012|
|Cost of goods sold||237,213||206,214|
|Selling and administrative expenses||50,568||51,177|
|Interest and investment income||(1,192||)||(1,195||)|
|Income before income taxes||24,441||23,142|
|Earnings per share|
|Weighted average number of shares outstanding|
Executive Vice President and Chief Financial Officer
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