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Toromont Announces Results for the First Quarter of 2016 and Quarterly Dividend

TORONTO, ONTARIO--(Marketwired - April 26, 2016) - Toromont Industries Ltd. (TSX:TIH) reported its financial results for the first quarter ended March 31, 2016.




Financial Highlights

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                                         Three months ended March 31

                                   -----------------------------------------

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 Equipment Group delivered strong results despite weakness in many of the markets that we serve. Excess inventory levels industry-wide and soft commodity prices continue, which impact the operating environment. Product support growth continues to benefit from the larger installed base in the field and serves to partially offset the downward pressures from other areas of the business. We are encouraged that the Federal government has committed to increasing infrastructure spending in our territories, however, timing of any such projects is unclear at this time," continued Mr. Medhurst. "At CIMCO, activity levels in Canada and the US are encouraging with backlogs at record levels for any first quarter. Product support growth at CIMCO demonstrates continued momentum in both the US and Canada and remains a strategic focus."

Annual Meeting of Shareholders

The Company will hold its Annual Meeting of Shareholders on Wednesday, April 27, 2016, at 10:00 a.m. (ET) in the Toscana Ballroom at the Hilton Garden Inn (Vaughan), 3201 Highway 7, Vaughan, Ontario. The meeting will also be available via live audio webcast at www.toromont.com.

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 Wednesday, April 27, 2016 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-866-225-6564 (toll free) or 416-340-2220 (Toronto area). A replay of the conference call will be available until Wednesday, May 11, 2016 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 9362994.

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

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 and an expanding agricultural equipment business. 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 Ltd. can be found at www.toromont.com.

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

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Revenues                                           $   377,716  $   340,196

Cost of goods sold                                     286,019      254,092

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Gross profit                                            91,697       86,104

Selling and administrative expenses                     58,221       57,310

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Operating income                                        33,476       28,794

Interest expense                                         1,834        2,115

Interest and investment income                          (1,573)        (936)

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Income before income taxes                              33,215       27,615

Income taxes                                             9,045        7,478

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Net earnings                                       $    24,170  $    20,137

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Earnings per share

  Basic                                            $      0.31  $      0.26

  Diluted                                          $      0.31  $      0.26

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Weighted average number of shares outstanding

  Basic                                             77,897,536   77,421,511

  Diluted                                           78,422,700   78,132,037

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FOR FURTHER INFORMATION PLEASE CONTACT:

Toromont Industries Ltd.

Scott J. Medhurst

President and Chief Executive Officer

(416) 667-5588





Toromont Industries Ltd.

Paul R. Jewer

Executive Vice President and Chief Financial Officer

(416) 667-5638









Source: Toromont Industries Ltd.

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