Toromont Announces Results for the First Quarter of 2016 and Quarterly Dividend
Financial Highlights
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Three months ended March 31
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millions, except per share amounts 2016 2015 % change
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Revenues $ 377.7 $ 340.2 11%
Operating income $ 33.5 $ 28.8 16%
Net earnings $ 24.2 $ 20.1 20%
Basic earnings per share ("EPS") $ 0.31 $ 0.26 19%
"We were pleased to achieve growth in the quarter on higher revenues and good expense control in both the Equipment Group and CIMCO," said Scott J. Medhurst , President and Chief Executive Officer of Toromont Industries Ltd. "In the Equipment Group , strong used equipment sales, product support growth, and increased RPO conversions led to higher revenues. At CIMCO, package sales and product support achieved growth in both Canada and the US."
Highlights:
-- Equipment Group revenues increased 10% to $327.6 million in the quarter.
Operating income increased 11% to $31.9 million compared to last year on
higher revenues and relatively lower expenses partially offset by lower
gross margins.
-- Equipment Group backlogs(1) were $126.0 million at March 31, 2016
compared to $92.0 million at December 31, 2015 and $140.0 million at
this time last year. Substantially all of the backlog is expected to be
delivered this year. Bookings(1) for the quarter increased 20% versus a
year ago to $184.0 million .
-- CIMCO revenues were up 15% to $50.1 million in the quarter on increased
package sales and strong product support growth. Operating income
increased $1.4 million to $1.6 million and was 3.2% as a percentage of
revenues.
-- CIMCO bookings were up 35% in the quarter to $46.0 million with strong
growth in the US and Canada . Backlogs of $112.0 million are at record
levels for the end of a first quarter, and up from $88.0 million at
December 31, 2015 and $83.0 million at March 31, 2015 . Most of the
backlog is expected to be delivered in 2016.
-- Net earnings increased 20% in the quarter to $24.2 million largely due
to the higher revenues and a relatively lower expense ratio, partially
offset by lower gross profit margins(1).
-- Earnings per share (basic) increased 19% or $0.05 in the quarter to
$0.31 .
-- Toromont's financial position remains strong. Net debt to total
capitalization(1) was 11%. The Company's balance sheet strength supports
the pursuit of growth opportunities.
-- During the quarter, the Company purchased and cancelled 89,244 common
shares ($2.6 million ) under its Normal Course Issuer Bid program.
-- The Board of Directors announced a quarterly dividend of 18 cents per
common share, payable July 4, 2016 to shareholders of record on June 10,
2016 . The quarterly dividend was previously increased 6% to 18 cents per
share effective with the dividend paid April 1, 2016 .
"In the quarter, the
Annual Meeting of Shareholders
The Company will hold its Annual Meeting of Shareholders on
Quarterly Results Materials
The complete first quarter report for 2016, 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
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 or 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
FOOTNOTES
(1) These financial metrics do not have a standardized meaning under International Financial Reporting Standards, which are also referred to herein as Generally Accepted Accounting Principles (GAAP), and may not be comparable to similar measures used by other issuers. The Company's Management's Discussion and Analysis (MD&A) includes additional information regarding these financial metrics, including definitions, under the heading "Description of Additional GAAP and Non-GAAP Measures."
TOROMONT INDUSTRIES LTD. INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) Three months ended March 31 -------------------------- ($ thousands, except share amounts) 2016 2015 ---------------------------------------------------------------------------- Revenues$ 377,716 $ 340,196 Cost of goods sold 286,019 254,092 ---------------------------------------------------------------------------- Gross profit 91,697 86,104 Selling and administrative expenses 58,221 57,310 ---------------------------------------------------------------------------- Operating income 33,476 28,794 Interest expense 1,834 2,115 Interest and investment income (1,573) (936) ---------------------------------------------------------------------------- Income before income taxes 33,215 27,615 Income taxes 9,045 7,478 ---------------------------------------------------------------------------- Net earnings$ 24,170 $ 20,137 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share Basic$ 0.31 $ 0.26 Diluted$ 0.31 $ 0.26 ---------------------------------------------------------------------------- Weighted average number of shares outstanding Basic 77,897,536 77,421,511 Diluted 78,422,700 78,132,037 ---------------------------------------------------------------------------- FOR FURTHER INFORMATION PLEASE CONTACT:Toromont Industries Ltd. Scott J. Medhurst President and Chief Executive Officer (416) 667-5588Toromont Industries Ltd. Paul R. Jewer Executive Vice President and Chief Financial Officer (416) 667-5638 Source:Toromont Industries Ltd.
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