<< Back

Toromont Announces Results for the Third Quarter of 2012

October 25, 2012 at 11:57 AM EDT

TORONTO, ONTARIO -- (Marketwire) -- 10/25/12 -- 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            Nine months ended

                                 September 30                 September 30


millions, except

 per share                                  %                            %

 amounts               2012      2011  change       2012      2011  change





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%



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


--  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 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, 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 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         Nine months ended

                                     September 30              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


 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


 operations                   32,733       30,930       75,626       68,455

Net gain on spinoff

 of Enerflex          22           -            -            -      133,164

Earnings from


 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


 interests               $         -  $         -  $         -  $      (623)

Basic earnings per



   operations         15 $      0.43  $      0.40  $      0.99  $      0.89


   operations         15           -            -            -         1.87


                         $      0.43  $      0.40  $      0.99  $      2.76



Diluted earnings

 per share


   operations         15 $      0.43  $      0.40  $      0.98  $      0.88


   operations         15           -            -            -         1.86


                         $      0.43  $      0.40  $      0.98  $      2.74



Weighted average

 number of shares


  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


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.

News Provided by Acquire Media