Toromont Industries Ltd. Logo (CNW Group/Toromont Industries Ltd.)

TORONTO, Feb. 13, 2024 /CNW/ - Toromont Industries Ltd. (TSX: TIH) today reported its financial results for the three months and year ended December 31, 2023.

Three months ended December 31

Years ended December 31

($ millions, except per share amounts)



% change



% change


$         1,226.9

$         1,128.5

9 %

$         4,622.3

$         4,115.3

12 %

Operating income

$            204.6

$            210.4

(3) %

$            704.2

$            619.1

14 %

Net earnings

$            154.1

$            159.9

(4) %

$            534.7

$            454.2

18 %

Basic earnings per share ("EPS")

$              1.87

$              1.94

(4) %

$              6.50

$              5.52

18 %

"We are pleased with the operating and financial performance which our teams delivered this year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group executed well, delivering against the opening order backlog in line with customer schedules and improvement in inventory flow, coupled with good growth in rental and product support activity, as well as a continued focus on expense control. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to navigate through uncertain economic conditions and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions."

Considering the Company's strong financial position and long-term outlook, the Board of Directors today increased the quarterly dividend by 11.6% to 48 cents per share. Toromont has paid dividends every year since 1968 and this is the 35th consecutive year of dividend increases. The next dividend is payable on April 4, 2024 to shareholders on record on March 8, 2024. 


Consolidated Results

  • Revenue increased $98.4 million or 9% in the fourth quarter compared to the similar period last year, with higher revenues in both groups. Equipment Group was up 9% and CIMCO revenue was up 2%.
  • Revenue increased $507.0 million (up 12%) to $4.6 billion for the year. Revenue increased in both groups, with the Equipment Group up 12% and CIMCO up 13% compared to 2022. Growth reflects in part improved supply from vendors, good opening order backlog, solid execution and the larger rental fleet investment. Product support revenues increased in both groups, reflecting continued activity in end markets. Our increased technician labour workforce continues to support growth.
  • In the fourth quarter of 2022, a property was sold resulting in a pre-tax gain of $17.7 million, and reported in the Equipment Group. This impacts comparability of results in both the quarter and year.
  • Operating income(1) decreased 3% in the quarter reflecting the property gain in the prior year. Excluding property gains in both years, operating income increased 5%, reflecting higher revenue partially offset by lower gross margins. Operating income as a percentage of sales decreased to 16.7% from 18.6% in the prior year, reflecting lower gross margins in the current period and the large property gain in the prior year.
  • Operating income increased 14% in the year, and was 15.2% of revenue compared to 15.0% in the similar period last year, reflecting similar trends as noted for the quarter.
  • As previously reported, the Company completed the sale of AgWest Ltd., a wholly-owned subsidiary, in the second quarter of 2023.
  • Net earnings from continuing operations decreased $4.2 million or 3% in the quarter versus a year ago to $154.1 million or $1.87 EPS (basic) and $1.86 EPS (fully diluted).
  • For the year, net earnings from continuing operations increased $79.0 million or 18% to $529.1 million, or $6.43 EPS (basic) and $6.38 EPS (fully diluted).
  • Bookings(1) increased 49% in the quarter compared to the similar period in 2022, and were 15% higher on a full year basis. Both Equipment Group and CIMCO reported higher bookings in both periods, although activity has been somewhat variable through the year due to a variety of market-related factors and customer buying patterns.
  • Backlog(1) remained relatively unchanged from this time last year at $1.2 billion, reflecting strong order activity. Equipment inflow through the supply chain has generally improved.

Equipment Group

  • Revenue was up $96.1 million or 9% to $1.1 billion for the quarter. Equipment sales (up 15%) improved across most markets. New equipment sales increased 19% on improving equipment availability, customer delivery schedules and year-end buying decisions. Rental revenue continued to grow on higher market activity, good execution and an expanded heavy and light equipment fleet. Product support activity was strong, with increases in both parts and service, reflecting good demand and increased technician levels.
  • Revenue was up $460.8 million or 12% to $4.2 billion for the year. Equipment sales, product support and rental activity were higher across most geographical markets and product groups on similar reasons as the quarter.
  • Operating income decreased $4.1 million or 2% in the fourth quarter when including the property gain reported in the prior period. Excluding this item, operating income increased 7%, reflecting higher revenue and lower expenses, partially offset by lower gross margins.
  • Operating income increased $72.1 million or 12% to $664.7 million in the year, reflecting the higher revenue, partially offset by lower gross margins and higher expenses. Operating income margin was unchanged from last year at 15.7%.
  • Bookings in the fourth quarter were $537.2 million, an increase of 53%. Customer demand improved late in the quarter, mainly in the construction sector, which had been slower throughout the year. Bookings in the full year 2023 were $1.9 billion, an increase of 14% from the prior year, with higher activity in mining, power and construction. Construction markets remain somewhat cautious given current business and economic factors which continue to override normal seasonality.
  • Backlog of $957.3 million at the end of December 2023 was down $74.7 million or 7% from the end of December 2022, reflecting good new order intake, improving equipment delivery from suppliers as well as planned deliveries against customer orders.


  • Revenue increased $2.4 million or 2% compared to the fourth quarter last year. Product support revenue was strong, up 14%, reflecting good market activity, with an increase in winter activities. Package revenue was lower, down 8%, with some delays in equipment delivery and project schedules by customers.
  • Revenue increased $46.2 million or 13% to $397.2 million for the year on higher package revenue (up 8%), mainly lead by an increase in the industrial market (up 12%), while recreational market activity was relatively flat (up 2%). Product support sales also increased (up 18%) on higher activity in both Canada and the US.
  • Operating income decreased $1.7 million or 12% for the quarter, as higher revenue was dampened by lower gross margins and higher selling and administrative expenses.
  • Operating income was up $13.0 million or 49% to $39.5 million for the year, reflecting improved gross margins and higher revenue. Operating income margin increased to 10.0% (2022 was 7.5%) reflecting higher gross margins on solid execution.
  • Bookings increased 24% in the fourth quarter to $56.2 million, and increased 19% for the year to $245.9 million. For the year, bookings were 35% higher in Canada and 18% lower in the US. Industrial bookings were 58% higher while recreational bookings were down 30%. Booking activity can be variable over time based on customer decision making schedules.
  • Backlog of $255.2 million at December 31, 2023 was up $56.8 million or 29% from last year, with an increase in the industrial market, on good order intake, being partially offset by a decrease in the recreational market. Backlog also reflects delays in equipment deliveries and customer construction schedules.

Financial Position

  • Toromont's share price of $116.10 at the end of December 2023, translated to market capitalization(1) of $9.6 billion and total enterprise value(1) of $9.2 billion.
  • The Company maintained a strong financial position. Leverage, as represented by the net debt to total capitalization(1) decreased to -17% at the end of December 31, 2023 compared to -14% at the end of December 2022. The change in the ratio reflects strong cash generation, in excess of investments made in working capital and capital assets in support of current and future activity levels.
  • The Company purchased 353,000 common shares for $37.5 million in the year ended December 31, 2023 (473,100 common shares for $48.5 million in 2022).
  • The Company's return on equity(1) was 22.8% for 2023, compared to 23.3% for 2022, while return on capital employed(1) was 30.1% for 2023, compared to 32.1% for 2022. Both metrics decreased year over year reflecting higher investments in working capital.

"We are mindful of the uncertain economic environment and continue to monitor key metrics and supply‑dynamics," continued Mr. McMillan. "We have seen some softening in construction markets, reflective of the current economic environment. We will continue to follow our disciplined approach while delivering results for our customers, suppliers and employees. While focused on managing discretionary spend, we continue to recruit technicians, to support our critical after-market service strategies and value‑added product offering over the long term. With strong order backlog and balance sheet, we are well positioned entering 2024, and will continue to support the business through thoughtful capital employment."


All financial information presented in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS"), except as noted below, 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"), as at and for the year ended December 31, 2023, 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.


Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Wednesday, February 14, 2024 at 8:00 a.m. (EDT). The call may be accessed by telephone at 888‑664‑6383 (North American toll free) or 416-764-8650 (Toronto area) and quoting participant passcode 74178667. A replay of the conference call will be available until Wednesday, February 21, 2024 by calling 1‑888‑390‑0541 (North American toll free) or 416-764-8677 (Toronto area) and quoting passcode 178667. The live webcast can also be accessed at

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


Management believes that providing certain non-GAAP measures provides users of the Company's audited 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 set out below, 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 unlikely to be comparable to similar measures presented by other issuers. Accordingly, these measures should not be considered as a substitute or alternative for net income or cash flow, in each case 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.

Gross Profit / Gross Profit Margin

Gross Profit is defined as total revenue less cost of goods sold.  

Gross Profit Margin is defined as gross profit (defined above) divided by total revenue.

Operating Income / Operating Income Margin

Operating income is defined as net income from continuing operations before interest expense, interest and investment income and income taxes and is used by management to assess and evaluate the financial performance of its operating segments. Financing and related interest charges cannot be attributed to business segments on a meaningful basis that is comparable to other companies. Business segments do not correspond to income tax jurisdictions and it is believed that the allocation of income taxes distorts the historical comparability of the performance of the business segments.

Operating income margin is defined as operating income (defined above) divided by total revenue.

Three months ended

Years ended

December 31

December 31

($ thousands)





Net income from continuing operations

$           154,052

$           158,267

$           529,107

$           450,100

plus:  Interest expense





less:  Interest and investment income





plus:  Income taxes





Operating income

$           204,555

$           210,414

$           704,228

$           619,098

Total revenue

$        1,226,937

$        1,128,528

$        4,622,301

$        4,115,347

Operating income margin

16.7 %

18.6 %

15.2 %

15.0 %

Net Debt to Total Capitalization/Equity

Net debt to total capitalization/equity are calculated as net debt divided by total capitalization and shareholders' equity, respectively, as defined below, and are used by management as measures of the Company's financial leverage.

Net debt is calculated as long-term debt plus current portion of long-term debt less cash and cash equivalents. Total capitalization is calculated as shareholders' equity plus net debt.  

The calculations are as follows:

($ thousands)



Long-term debt

$              647,784

$              647,060

less:  Cash and cash equivalents



Net debt



Shareholders' equity



Total capitalization

$          2,290,879

$          2,044,639

Net debt to total capitalization

(17) %

(14) %

Net debt to equity



Market Capitalization & Total Enterprise Value

Market capitalization represents the total market value of the Company's equity. It is calculated by multiplying the closing share 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 debt/net debt (defined above) to market capitalization.

The calculations are as follows:

($ thousands, except for shares and share price)



Outstanding common shares



times:  Ending share price

$                116.10

$                  97.71

Market capitalization

$           9,554,721

$           8,043,307

Long-term debt

$              647,784

$              647,060

less:  Cash and cash equivalents



Net debt

$             (392,973)

$             (280,720)

Total enterprise value

$           9,161,748

$           7,762,587

Order Bookings and Backlog

Order bookings represent the retail value of firm equipment or project orders received during a period. Backlog is 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 revenue 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 from continuing operations 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, adjusted for discontinued operations.  

($ thousands)



Net earnings from continuing operations

$              529,107

$              450,100

plus:  Interest expense



less:  Interest and investment income



plus:  Interest income – rental conversions



plus:  Income taxes



Adjusted net earnings

$              707,576

$              623,858

Average capital employed

$          2,347,864

$          1,944,501

Return on capital employed

30.1 %

32.1 %

Return on Equity ("ROE")

ROE is monitored to assess profitability and is calculated by dividing net earnings from continuing operations by opening shareholders' equity (adjusted for shares issued and shares repurchased and cancelled during the year).

($ thousands)



Net earnings from continuing operations

$              529,107

$              450,096

Opening shareholder's equity (net of adjustments)

$          2,317,906

$          1,935,365

Return on equity

22.8 %

23.3 %


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", "would", "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.   

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; inflationary pressures; potential risks and uncertainties relating to COVID-19 or a potential new world health issue; increased regulation of or restrictions placed on our businesses; 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, including reduction or disruption in supply or demand for our products stemming from external factors; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability and cost of financing; level and volatility of price and liquidity of Toromont's common shares; potential environmental liabilities and changes to environmental regulation; information technology failures, including data or cybersecurity breaches; failure to attract and retain key employees as well as the general workforce; 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 or other payments in respect of registered defined benefit pension plans or postemployment benefit plans in excess of those currently contemplated; increased insurance premiums; and risk related to integration of acquired operations including cost of integration and ability to achieve the expected benefits. 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 Management Discussion and Analysis, 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.


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 and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Equipment Group includes industry-leading rental operations and a complementary material handling 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:

John M. Doolittle
Executive Vice President and
Chief Financial Officer
Toromont Industries Ltd.
Tel: (416) 514-4790



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. The Company's Management's Discussion and Analysis (MD&A) includes additional information regarding these financial metrics, including definitions and a reconciliation to the most directly comparable GAAP measures, under the headings "Additional GAAP Measures", "Non-GAAP Measures" and "Key Performance Indicators."

SOURCE Toromont Industries Ltd.

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