Toromont Announces 2021 Results and Quarterly Dividend

TORONTO, Feb. 09, 2022 (GLOBE NEWSWIRE) -- Toromont Industries Ltd. (TSX: TIH) today reported financial results for the three months and year ended December 31, 2021.

Three months ended December 31 Years ended December 31
millions, except per share amounts 2021 2020 % change 2021 2020 % change
Revenues $ 956.0 $ 992.2 (4 %) $ 3,886.5 $ 3,478.9 12 %
Operating income $ 148.8 $ 127.2 17 % $ 475.9 $ 372.4 28 %
Net earnings $ 105.6 $ 89.0 19 % $ 332.7 $ 254.9 31 %
Basic earnings per share ("EPS") $ 1.28 $ 1.08 19 % $ 4.03 $ 3.10 30 %

“Toromont delivered solid results in the fourth quarter and full year of 2021, reflective of our focus on operational execution and favourable operating leverage, including the benefit of ongoing integration and alignment of our dealership territory across Eastern Canada,” stated Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. “The Equipment Group reported strong prime product deliveries while rental activity and fleet utilization improved; however, pandemic and macroeconomic factors continued to affect customer buying patterns and prime product and parts availability. CIMCO revenues increased on progression of large projects. Product support activity improved in the Equipment Group, dampened somewhat by pandemic and supply chain related factors. We continue to leverage the learnings from the past two years with respect to cost structures and new ways to do business, while maintaining focus on customer service and support. Our order backlog at the end of 2021 was $1.3 billion, reflecting strong activity and the current supply environment.”

Considering the Company’s strong financial position and long-term outlook, the Board of Directors today increased the quarterly dividend by 11.4% to 39 cents per share. Toromont has paid dividends every year since 1968 and this is the 33rd consecutive year of dividend increases. The next dividend is payable on April 4, 2022 to shareholders on record on March 9, 2022.


Consolidated results

  • Revenues in the fourth quarter were $956.0 million, down 4% from the similar period last year. Equipment Group revenues were down 3% on changes in timing of deliveries, inclusive of delays as a result of supply chain disruptions. Revenues at CIMCO were 7% lower on timing of construction projects within the Canadian industrial segment and reduced recreational activity due to pandemic restrictions.

  • Revenues increased 12% to $3.9 billion for the year compared to 2020, on improved activity in end markets, reflective of the partial recovery from pandemic restrictions and shutdowns. Deliveries from healthy opening order backlogs(1) and on strong demand in the year generally, drove equipment and packages revenues 18% higher, while product support and rental revenues increased 5% and 8% respectively.

  • Operating income(1) increased 17% in the fourth quarter reflecting higher gross margins(1) on strong demand, improved rental fleet utilization, favourable sales mix, cost containment and operational efficiency.

  • Operating income increased 28% in 2021, reflecting the higher revenues and higher overall gross margins. Revenue growth exceeded growth in expenses, reflecting continued efforts to focus on cost management and improved efficiencies. Operating income margin(1) increased 150 basis points (“bps”) to 12.2%, compared to 10.7% in 2020.

  • Net earnings for the fourth quarter were $105.6 million up 19% and basic EPS (earnings per share) was $1.28, also up 19% from the fourth quarter of 2020.

  • For the year, net earnings were $332.7 million, up 31% from 2020, with basic EPS up 30% to $4.03, reflective of the higher activity levels and positive operating leverage.

Equipment Group

  • For the fourth quarter, revenues were down $29.9 million or 3%. Equipment revenues were lower, reflecting unique customer buying patterns throughout 2021, as well as supply chain constraints deferring deliveries into 2022. Rental revenues increased on higher activity in light equipment and power systems, and higher RPO (“rent with a purchase option”) revenues. Product support activity increased 4% from last year as activity continued to improve.

  • Operating income in the fourth quarter was up $20.3 million (18%). Gross margins were up across all revenue streams, coupled with a favourable sales mix, with a higher proportion of product support revenues to total revenues. Operating income was 15.6% of revenues compared to 12.8% in the comparable period last year, reflecting better gross margins and operating leverage.

  • For the year, revenues increased 11% or $359.2 million to $3.5 billion. Equipment sales, product support and rental activity were higher across most geographic markets and product groups. Construction and mining equipment sales demonstrated strong growth. Rental revenues increased on higher fleet utilization and product support revenues increased reflective of the improved activity.

  • For the year, operating income increased 30% or $105.0 million, on higher revenues and gross margins. Operating income was 190 bps higher at 12.8% of revenues compared to 10.9% last year.

  • Bookings(1) in 2021 increased $908.8 million (58%) to $2.5 billion, with increases across all market segments. Bookings in the fourth quarter were up 10% ($55.6 million) to $618.9 million, on strong construction and power systems orders, partially offset by lower material handling lift truck orders, mining and agricultural. Backlogs increased $757.4 million (203%) to $1.1 billion, 85% of which is expected to be delivered in 2022.


  • Revenues in the fourth quarter were $89.1 million, down $6.2 million (7%) with weaker activity in both package sales (down 11%) and product support (down 1%). Package revenues were down in part due to project scheduling. Operating income increased $1.3 million (10%) versus last year on the higher gross margins and project execution.

  • For the year, revenues were up $48.5 million (15%) to $361.3 million. Package sales were up $47.7 million or 30% on the build-out of industrial projects. Product support was relatively flat year-over-year, primarily on facility closures and pandemic related restrictions in Canadian markets. US revenues reflect continued growth in both construction and product support on generally fewer pandemic-related restrictions and renewed focus on increasing coverage and improving participation.

  • For the year, operating income was down by $1.5 million (6%) in 2021 on higher package revenues, more than offset by lower package gross margins and increased expenses. Operating income margin decreased to 6.9% (2020 - 8.5%) on higher package revenues, more than offset by lower package gross margins and increased expenses.

  • Bookings of $188.4 million for the year were down $39.9 million (17%) versus the 2020 comparable which included several large industrial orders in Canada. Recreational bookings were up 42% on increased market activity in both Canada and the US, after a period of limited activity on pandemic closures and restrictions. Industrial orders were down 38%, with a decrease in both Canada and the US. Fourth quarter bookings were up $31.4 million to $55.9 million, reflecting improving activity, particularly in the recreational market.

  • Backlogs of $161.1 million at December 31, 2021 were down $23.3 million (13%), against a very strong level last year, reflecting project build out of prior year bookings. Substantially all of the backlog is expected to be realized as revenue in 2022, subject to continued construction site access and schedules.

Financial Position

  • Toromont’s share price of $114.36 at the end of 2021, translates to a market capitalization(1) of $9.4 billion and a total enterprise value(1) of $9.2 billion.

  • The Company maintained a very strong financial position. Leverage, as represented by the net debt to total capitalization(1) ratio decreased to -16% at the end of December 31, 2021 from 3% at the end of December 31, 2020.

  • The Company commenced a Normal Course Issuer Bid in September 2021, and repurchased and cancelled 470,600 common shares for $50.0 million (average cost of $106.25 per share, including transaction costs) through December 31, 2021.

  • Return on opening shareholders’ equity(1) was 19.6% for 2021, compared to 16.6% for 2020, reflecting the higher net earnings. Return on capital employed(1) was 26.6% for 2021, compared to 20.4% for 2020. Capital employed increased year-over-year on improved earnings coupled with disciplined asset management.

“Our team has shown incredible effort and commitment over the past two years, adapting to a rapidly changing business environment, while maintaining focus on employee safety and executing on customer deliverables – we thank them for their resiliency and dedication,” continued Mr. Medhurst. “Current backlog levels are strong, and supportive of our future, however, the global supply chain, including vendor production, continues to be challenged. Product availability (prime equipment, components and parts) has been restricted and we will likely continue to see shifts in delivery schedules. Inflationary pressures, supply-demand dynamics and pandemic-related developments are monitored closely. Technician hiring remains a priority and is essential to support the growing demand for our product support and project construction business. The diversity of our business, extensive product and service offerings, technology investments and financial strength, together with our disciplined operating culture, continue to position us well. We are proud to continue to provide the essential services and solutions that our clients are looking for, while remaining diligently focused on safeguarding our employees, and protecting our business for the future.”

Financial and Operating Results

All financial information presented in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS") and are reported in Canadian dollars. This press release contains only selected financial and operational highlights and should be read in conjunction with Toromont's audited consolidated financial statements and related notes and Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2021, which are available on SEDAR at and on the Company's website at The Company's audited consolidated financial statements and MD&A contain detailed information about Toromont's financial position, results, liquidity and capital resources, strategy, plans and outlook, which investors are encouraged to read carefully.

Non-GAAP Measures

Management believes that providing certain non-GAAP measures provides users of the Company’s consolidated financial statements and MD&A with important information regarding the operational performance and related trends of the Company's business. By considering these measures in combination with the comparable IFRS measures (where available), management believes that users are provided a better overall understanding of the Company's business and its financial performance during the relevant period than if they simply considered the IFRS measures alone.

The non-GAAP measures used by management do not have any standardized meaning prescribed by IFRS and are therefore may not be comparable to similar measures presented by other issuers. Accordingly, these measures should not be considered as a substitute or alternative for GAAP measures as determined in accordance with IFRS.

Management also uses key performance indicators to enable consistent measurement of performance across the organization. These KPIs are non-GAAP financial measures, do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers.

Market Capitalization & Total Enterprise Value

Market capitalization represents the total market value of the Company’s equity. It is calculated by multiplying the market price of the Company’s common shares by the total number of common shares outstanding.

Total enterprise value represents the total value of the Company and is often used as a more comprehensive alternative to market capitalization. It is calculated by adding net debt (defined above) to market capitalization.

The calculations are as follows:

($ thousands, except for shares and share price) 2021 2020
Outstanding common shares 82,443,968 82,474,658
times: Ending share price $ 114.36 $ 89.20
Market capitalization $ 9,428,292 $ 7,356,739
Long-term debt $ 646,337 $ 646,299
less: Cash 916,830 591,128
Net debt $ (270,493 ) $ 55,171
Total enterprise value $ 9,157,799 $ 7,411,910

Gross Profit Margin

This measure is defined as gross profit (defined above) divided by total revenues.

Operating Income Margin

This measure is defined as operating income (defined above) divided by total revenues.

Order Bookings and Backlogs

Order bookings represent the retail value of firm equipment or project orders received during a period. Backlogs are defined as the retail value of equipment units ordered by customers with future delivery, and the remaining retail value of package/project orders remaining to be recognized in revenues under the percentage of completion method. Management uses order backlog as a measure of projecting future equipment and project deliveries. There are no directly comparable IFRS measures for order bookings or backlog.

Return on Capital Employed (“ROCE”)

ROCE is utilized to assess both current operating performance and prospective investments. The adjusted earnings numerator used for the calculation is income before income taxes, interest expense and interest income (excluding interest on rental conversions). The denominator in the calculation is the monthly average capital employed, which is defined as net debt plus shareholders’ equity, also referred to as total capitalization.

($ thousands) 2021 2020
Net earnings $ 332,710 $ 254,915
plus: Interest expense 28,161 29,981
less: Interest and investment income (9,027 ) (9,083 )
plus: Interest income - rental conversions 2,635 3,529
plus: Income taxes 124,093 96,621
Adjusted net earnings $ 478,572 $ 375,963
Average capital employed $ 1,796,703 $ 1,838,533
Return on capital employed 26.6 % 20.4 %

Return on Equity (“ROE”)

ROE is monitored to assess the profitability of the consolidated company and is calculated by dividing net earnings by opening shareholders’ equity (adjusted for both shares issued and shares repurchased and cancelled during the year).

($ thousands) 2021 2020
Net earnings $ 332,710 $ 254,915
Opening shareholders' equity (net of adjustments) $ 1,695,008 $ 1,538,817
Return on equity 19.6 % 16.6 %

Quarterly Conference Call and Webcast

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Thursday, February 10, 2022 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-800-898-3989 (toll free) or 416-406-0743 (Toronto area), participant passcode 1078844# is required. A replay of the conference call will be available until Thursday, February 17, 2021 by calling 1-800-408-3053 or 905-694-9451 (Toronto area) and quoting passcode 1861147# to listen. Both the live webcast and the replay of the quarterly conference call can be accessed at

Presentation materials to accompany the call will be available on our investor page on our website.


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 reflects current estimates, beliefs, and assumptions, which are based on Toromont’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct. This press release also contains forward-looking statements about the recently acquired businesses.

Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited 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; potential risks and uncertainties relating to the novel COVID-19 global pandemic, including an economic downturn, reduction or disruption in supply or demand for our products and services, or adverse impacts on our workforce, capital resources, or share trading price or liquidity; increased regulation of or restrictions placed on our businesses as a result of COVID-19; 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; potential environmental liabilities and changes to environmental regulation; information technology failures, including data or cyber security breaches; failure to attract and retain key employees; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; any requirement to make contributions to the registered defined benefit pension plans or postemployment benefit plans in excess of those currently contemplated; and increased insurance premiums. Readers are cautioned that the foregoing list of factors is not exhaustive.

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 MD&A, as filed with Canadian securities regulators at or at our website 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, which reflect Toromont’s expectations only 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 to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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 - spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Group includes industry leading rental operations, a complementary material handling business and an 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

For more information contact:

Michael S. McMillan
Executive Vice President and
Chief Financial Officer
Toromont Industries Ltd.
Tel: (416) 514-4790


  1. These financial metrics do not have a standardized meaning under International Financial Reporting Standards (IFRS), which are also referred to herein as Generally Accepted Accounting Principles (GAAP), and may not be comparable to similar measures used by other issuers. These measurements are presented for information purposes only. Please refer to the “Non-GAAP Measures” section of this press release for more information on these measures.

Primary Logo

Source: Toromont Industries Ltd.

Sign up for
email alerts

Receive company News
and Press Releases

Sign Up

Send a message to Toromont
Investor Relations

Complete a contact form to connect with
someone from Investor Relations

Contact Us