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Toromont Announces Strong Results for the Third Quarter of 2011

November 1, 2011 at 11:04 AM EDT

TORONTO, ONTARIO -- (MARKET WIRE) -- 11/01/11 -- Toromont Industries Ltd. (TSX: TIH) today reported financial results for the third quarter ending September 30, 2011.


                               Three months ended          Nine months ended

                                     September 30               September 30


millions, except per

 share amounts             2011     2010 % change     2011     2010 % change


Continuing operations


Revenues               $  367.3 $  336.0       9% $  973.5 $  864.2      13%

Operating income       $   44.3 $   34.2      29% $  100.0 $   77.0      30%

Net earnings           $   30.9 $   22.7      36% $   68.5 $   48.7      41%

Earnings per share -

 basic                 $   0.40 $   0.30      33% $   0.89 $   0.64      39%



Net earnings           $      - $    3.5      n/m $  143.8 $   14.9      n/m

Earnings per share -

 basic                 $      - $   0.04      n/m $   1.86 $   0.20      n/m


Net earnings           $   30.9 $   26.2      18% $  212.2 $   63.6      n/m

Earnings per share -

 basic                 $   0.40 $   0.34      18% $   2.75 $   0.84      n/m


Note - net earnings from discontinued operations includes a gain on

disposition of $133.2 million, $1.73 per share basic.

Toromont reported strong results in the third quarter with net earnings from continuing operations increasing 36%, reflecting higher revenues and better margins.

"We are pleased with the performance of our Company through the first three quarters of 2011. New records have again been established on a continuing operations basis for both revenue and net income. Product support and rental revenues were at record levels. Backlogs were up 17% over last year," said Robert M. Ogilvie, Chairman and CEO of Toromont Industries Ltd.

Third Quarter Highlights(1):

--  Net earnings from continuing operations were $30.9 million in the

    quarter ($0.40 per share basic), up 36% from $22.7 million reported in

    the same quarter last year. Higher revenues, improved margins and lower

    interest expense contributed to the improvement. Year-to-date, net

    earnings from continuing operations were $68.5 million ($0.89 per share

    basic), 41% higher than the similar period last year.

--  Equipment Group revenues of $315 million were up 11% in the third

    quarter versus the similar period of 2010 on higher rental and product

    support activities. Revenues were $825 million for the first nine months

    of 2011, up 14% from the prior year. Operating income increased 33% in

    the third quarter and 28% in the year-to-date compared to last year due

    to higher revenues and increased margins.

--  Equipment Group backlogs of $300 million were up 37% compared to this

    time last year. Mining, power systems and road building have reported

    strong activity levels. Bookings of $187 million in the third quarter

    were 18% lower than the third quarter of 2010, due principally to a $125

    million order received in 2010.

--  CIMCO revenues of $52 million in the third quarter were unchanged from

    the similar period last year and were 6% higher year-to-date. Operating

    income reached a record for this time of year on improved project


--  CIMCO bookings of $16 million in the third quarter were 31% lower than

    those reported in the same period last year, due principally to the end

    of the Recreational Infrastructure Canada stimulus program. Backlogs

    were $43 million at September 30, 2011.

--  Net earnings from continuing operations were $30.9 million in the third

    quarter ($0.40 per share basic), an increase of 36% from the comparable

    period of the prior year. For the nine-months ended September 30, 2011,

    net earnings were $68.5 million ($0.89 per share), an increase of 41%

    from the prior year.

--  The Company completed the spinoff of its natural gas compression and

    processing equipment business, Enerflex Ltd. ("Enerflex"), effective

    June 1, 2011. The financial results of Enerflex have been included in

    the Company's results of operations up to that effective date and are

    reported as discontinued operations. Earnings from discontinued

    operations in 2011 were $143.8 million, as reported last quarter,

    including a gain of $133.2 million, $1.73 per share basic realized on

    the spinoff of Enerflex.

--  Net earnings were $30.9 million in the quarter ($0.40 per share basic)

    and $212.2 million ($2.75 per share basic) on a year-to-date basis.

--  The Board of Directors increased the quarterly dividend 10% to $0.11 per

    common share, effective with the dividend paid on October 3, 2011 to

    shareholders of record on September 15, 2011.

--  During the third quarter of 2011, the Company purchased and cancelled

    477,235 shares under its normal course issuer bid. Total cost for the

    shares purchased was $8.0 million (average cost of $16.83 per share).

(1) Includes non-GAAP financial measures. See discussion in "Non-GAAP Financial Measures" section in the Management's Discussion and Analysis with respect to financial results for the three and nine months ended September 30, 2011.

"Toromont is well positioned to achieve continuing success, with a healthy backlog, leading market positions and record volumes in our product support activities," continued Mr. Ogilvie. "We have significant organic growth opportunities and continue to search for strategic acquisitions. Our team is focused on improving market share through providing exceptional service to our customers."

Quarterly Results Materials

The complete third quarter report for 2011, 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, November 1, 2011 at 5:00 p.m. (ET). The call may be accessed by telephone at 1-800-355-4959 (toll free) or 416-695-6616 (Toronto area). A replay of the conference call will be available until Tuesday, November 15, 2011 by calling 1-800-408-3053 or 905-694-9451 (Toronto area) and quoting passcode 1378188.

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 on the Web at www.toromont.com.




                             Three months ended           Nine months ended

                                   September 30                September 30

($ thousands, except

 share amounts)              2011          2010          2011          2010


Revenues             $    367,289  $    335,975  $    973,542  $    864,155

Cost of goods sold        270,577       254,226       727,934       656,189


Gross profit               96,712        81,749       245,608       207,966

Selling and


 expenses                  52,450        47,553       145,641       130,971


Operating income           44,262        34,196        99,967        76,995

Interest expense            2,039         3,024         6,888         9,357

Interest and

 investment income           (794)         (308)       (1,850)       (1,468)


Income before income

 taxes                     43,017        31,480        94,929        69,106

Income taxes               12,087         8,744        26,474        20,401


Net earnings from


 operations                30,930        22,736        68,455        48,705

Net gain on spinoff

 of Enerflex                    -             -       133,164             -

Earnings from


 operations                     -         3,465        10,617        14,895


Net Earnings         $     30,930  $     26,201  $    212,236  $     63,600



Earnings (losses)

 attributable to :

Common shareholders  $     30,930  $     26,501  $    212,859  $     63,827


 interests           $          -  $       (300) $       (623) $       (227)

Basic earnings per



  operations         $       0.40  $       0.30  $       0.89  $       0.64


  operations                    -          0.04          1.86          0.20


                     $       0.40  $       0.34  $       2.75  $       0.84



Diluted earnings per



  operations         $       0.40  $       0.30  $       0.89  $       0.63


  operations                    -          0.04          1.85          0.20


                     $       0.40  $       0.34  $       2.74  $       0.83



Weighted average

 number of shares


Basic                  77,094,820    76,896,069    77,153,368    75,895,887

Diluted                77,180,425    77,096,497    77,529,358    76,151,736


Toromont Industries Ltd.Robert M. Ogilvie

Chairman and Chief Executive Officer

(416) 667-5554

Toromont Industries Ltd.Paul R. Jewer

Executive Vice President and Chief Financial Officer

(416) 667-5638

Source: Toromont Industries Ltd.

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