Toromont Announces Results for the First Quarter of 2017 and Quarterly Dividend

TORONTO, ONTARIO--(Marketwired - April 26, 2017) - Toromont Industries Ltd. (TSX:TIH) reported its financial results for the first quarter ended March 31, 2017.

                                     Three months ended March 31


millions, except per share amounts       2017      2016 % change


Revenues                            $   412.3 $   387.9       6%

Operating income                    $    37.9 $    33.5      13%

Net earnings                        $    27.0 $    24.2      12%

Basic earnings per share ("EPS")    $    0.34 $    0.31      10%


"Toromont delivered continued growth in the first quarter on strong execution across the business," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group performed well on strength in mining, power systems and rentals despite broad challenges with tight pricing conditions. CIMCO delivered solid results with excellent activity in Canada. Product support continues to provide a strong foundation for both Groups. Our balance sheet remained strong and positions us well."

First Quarter Highlights:

--  Equipment Group - good execution in a challenging market

    --  Revenues increased 6% to $359.8 million versus a year ago with

        higher equipment sales, rentals and product support revenues.

        Operating income increased 10% to $35.1 million and was 9.7% as a

        percentage of revenues.

    --  Bookings(1) increased 2% year-over-year to $188.0 million on strong

        mining and power systems orders which served to offset lower

        construction orders. Backlogs(1) were $176.0 million at March 31,

        2017 compared to $147.0 million at December 31, 2016 and $126.0

        million at this time last year. Most of the backlog is expected to

        be delivered this year.

--  CIMCO - strong results on higher revenues and improved margins

    --  Revenues increased 5% to $52.5 million from a year ago mainly due to

        higher product support revenues. Operating income increased 76% to

        $2.8 million and was 5.4% as a percentage of revenues.

    --  Bookings were up 37% versus last year to $63.0 million with

        increases in both Canada and the US. Backlogs of $138.0 million are

        at record levels for the end of a first quarter, and up from $99.0

        million at December 31, 2016 and $112.0 million at this time last

        year. Most of the backlog is expected to be delivered this year.

--  Net earnings increased 12% in the quarter to $27.0 million reflecting

    the higher revenues and improved operating margins.

--  EPS increased 10% or $0.03 in the quarter to $0.34.

--  Toromont maintained a very strong financial position. Cash marginally

    exceeded total debt at the end of the quarter.

--  The Board of Directors announced a quarterly dividend of 19 cents per

    common share, payable July 4, 2017 to shareholders of record on June 9,

    2017. The quarterly dividend was previously increased 6% to 19 cents per

    share effective with the dividend paid April 3, 2017.

"The long-term outlook for infrastructure spending remains positive following the federal budget, however we await clarity on the timing and nature of the anticipated spending. We also remain cautiously optimistic on various provincial spending initiatives and expect to get better visibility in the coming months. We are beginning to see increased activity in the mining sector. Performance at CIMCO continues to be positive and represents the emerging realization of focused strategies," continued Mr. Medhurst. "Across our organization, strong product support growth, together with diverse products and markets, provides a sound financial base, operational stability and opportunities for continued success."

Quarterly Results Materials

The complete first quarter report for 2017, including MD&A and unaudited interim condensed consolidated financial statements, is available on our website at

Quarterly Conference Call and Webcast

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Thursday, April 27, 2017 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-877-467-6811 (toll free) or 647-427-2254 (international) and quoting passcode 7875829. A replay of the conference call will be available until Friday, May 5, 2017, by calling 1-800-585-8367 (toll free) or 404-537-3406 (international) and quoting passcode 7875829.

Both the live webcast and the replay of the quarterly conference call can be accessed at


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 or at 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


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 sections titled "Additional GAAP Measures and Non-GAAP





                                                 Three months ended March 31


($ thousands, except share amounts)                      2017           2016


Revenues                                       $     412,308  $     387,919

Cost of goods sold                                   311,903        295,969


Gross profit                                         100,405         91,950

Selling and administrative expenses                   62,511         58,474


Operating income                                      37,894         33,476

Interest expense                                       1,832          1,834

Interest and investment income                        (1,112)        (1,573)


Income before income taxes                            37,174         33,215

Income taxes                                          10,150          9,045


Net earnings                                   $      27,024  $      24,170


Earnings per share

  Basic                                        $        0.34  $        0.31

  Diluted                                      $        0.34  $        0.31


Weighted average number of shares outstanding

  Basic                                           78,433,827     77,897,536

  Diluted                                         79,221,266     78,422,700



Scott J. Medhurst

President and Chief Executive Officer

Toromont Industries Ltd.

(416) 667-5588

Paul R. Jewer

Executive Vice President and Chief Financial Officer

Toromont Industries Ltd.

(416) 514-4790

Source: Toromont Industries Ltd.



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