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Toromont Announces Results for the Second Quarter of 2012

July 31, 2012 at 11:44 AM EDT

TORONTO, ONTARIO -- (Marketwire) -- 07/31/12 -- Toromont Industries Ltd. (TSX: TIH) today reported strong financial results for the second quarter ending June 30, 2012. Net earnings from continuing operations were up 8%, reflecting record second quarter revenues.


                    Three months ended June 30    Six months ended June 30


millions, except per                         %                           %

 share amounts           2012     2011  change       2012     2011  change



 operations basis:

Revenues             $  379.6 $  344.6      10%  $  661.1 $  606.3       9%

Operating income     $   37.1 $   34.5       7%  $   61.5 $   55.7      10%

Net earnings         $   25.7 $   23.7       8%  $   42.9 $   37.5      14%

Earnings per share -

 basic               $   0.34 $   0.31      10%  $   0.56 $   0.49      14%



Net earnings         $      - $  136.0     n/m   $      - $  143.8     n/m

Earnings per share -

 basic               $      - $   1.77     n/m   $      - $   1.87     n/m


Net earnings         $   25.7 $  159.7     (84%) $   42.9 $  181.3     (76%)

Earnings per share -

 basic               $   0.34 $   2.08     (84%) $   0.56 $   2.36     (76%)


"We are pleased with our results for the second quarter and first half of 2012. Revenues increased 10% versus a year ago driven by strong deliveries to the mining sector and record levels for product support," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Bookings in the quarter were strong, up 33% from a year ago, with healthy increases in mining, power systems and refrigeration."


--  Equipment Group revenues set a new second quarter record of $334

    million, up 16% from 2011 on higher new and used equipment sales and

    product support. Operating income was also a record at $33.8 million, up

    15% in the quarter compared to 2011 on the higher revenues.

--  For the first half of 2012, Equipment Group revenues were a record $580

    million, up 14% from 2011 on higher new and used equipment sales and

    product support. Operating income was also a record at $56.7 million, up

    18% year-over-year on the higher revenues and improved gross margins.

--  Equipment Group bookings of $195 million in the second quarter were 26%

    higher than the second quarter of 2011. Bookings in the year-to-date

    were 21% higher than the prior year. Mining and power systems reported

    strong activity levels in the quarter. Equipment Group backlogs were

    $260 million at June 30, 2012 compared to $224 million at December 31,

    2011 and $280 million at this time last year.

--  CIMCO revenues were $45 million in the quarter and $81 million for the

    first half of 2012, down 18% and 16% respectively from the comparable

    periods last year. The decline in recreational package sales revenues

    was expected given the end of the Recreational Infrastructure Canada

    stimulus program which contributed to 2011 results. Operating income

    decreased 36% in the quarter and 37% year-to-date on the lower revenues.

--  CIMCO bookings were a record for a second quarter at $42 million, up 72%

    from the similar period last year, on strong industrial orders. Bookings

    in the first six months of 2012 were also a record $117 million on a

    large order from Maple Leaf Foods for their announced facilities

    expansion program. Backlogs were a record $126 million at June 30, 2012.

--  Net earnings from continuing operations were $25.7 million in the

    quarter, $0.34 per share basic, up 8% and 10% respectively from last

    year on higher revenues. Net earnings from discontinued operations in

    the second quarter of 2011 were $136.0 million ($1.77 per share basic)

    and included a net gain of $133 million on the spinoff of Enerflex.

--  Total debt net of cash to total capitalization increased to 34%, within

    stated capital targets, versus 13% at year-end and 24% a year ago.

    Increased debt levels are substantially due to an increased investment

    in working capital.

--  During the quarter, the Company purchased and cancelled 528,438 shares

    under its normal course issuer bid. Total cost for the shares purchased

    was $11.2 million (average cost of $21.22 per share).

--  The regular quarterly dividend of $0.12 per common share was paid on

    July 2, 2012. The Company has paid dividends every year since going

    public in 1968.

--  Subsequent to the end of the quarter, Toromont entered into an agreement

    with Caterpillar to secure the assets associated with the former Bucyrus

    distribution network. Under this agreement, Toromont will pay US $18

    million inclusive of working capital of $4.5 million. The transaction is

    expected to close on August 1, 2012. The addition of the Bucyrus

    products will strengthen our mining offering for surface and


"We have leading market positions, healthy backlogs and momentum in product support," continued Mr. Medhurst. "These factors, together with expanded product offerings, position the Company well for long-term growth."

Quarterly Results Materials

The complete second quarter report for 2012, including MD&A and unaudited interim 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 Tuesday, July 31, 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 Tuesday, August 14, 2012 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 3022778.

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.

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 www.toromont.com.




                               Three months ended          Six months ended

                                          June 30                   June 30

($ thousands, except

 share amounts)                 2012         2011         2012         2011


Revenues                 $   379,607  $   344,644  $   661,066  $   606,253

Cost of goods sold           289,938      260,891      496,152      457,357


Gross profit                  89,669       83,753      164,914      148,896

Selling and

 administrative expenses      52,619       49,277      103,429       93,191


Operating income              37,050       34,476       61,485       55,705

Interest expense               2,249        2,307        4,370        4,849

Interest and investment

 income                         (442)        (506)      (1,637)      (1,056)


Income before income

 taxes                        35,243       32,675       58,752       51,912

Income taxes                   9,590        8,953       15,859       14,387


Net earnings from

 continuing operations        25,653       23,722       42,893       37,525

Net gain on spinoff of

 Enerflex                          -      133,164            -      133,164

Earnings from

 discontinued operations           -        2,796            -       10,617


Net Earnings             $    25,653  $   159,682  $    42,893  $   181,306



Earnings (losses)

 attributable to :

Common shareholders      $    25,653  $   160,088  $    42,893  $   181,929


 interests               $         -  $      (406) $         -  $      (623)

Basic earnings per share

  Continuing operations  $      0.34  $      0.31  $      0.56  $      0.49


   operations                      -         1.77            -         1.87


                         $      0.34  $      2.08  $      0.56  $      2.36



Diluted earnings per


  Continuing operations  $      0.33  $      0.30  $      0.55  $      0.48


   operations                      -         1.76            -         1.86


                         $      0.33  $      2.06  $      0.55  $      2.34



Weighted average number

 of shares outstanding

  Basic                   76,760,731   77,203,562   76,773,193   77,183,293

  Diluted                 77,336,473   77,601,299   77,399,535   77,542,503


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


Source: Toromont Industries Ltd.

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