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TORONTO, ONTARIO -- (Marketwire) -- 02/11/13 -- Toromont Industries Ltd. (TSX: TIH) today reported record financial results from continuing operations for the three and twelve-month periods ended December 31, 2012.
----------------------------------------------- ---------------------------- Three months ended Twelve months ended December 31 December 31 ------------------------ ----------------------------millions, except per share amounts 2012 2011 % change 2012 2011 % change----------------------------------------------- ----------------------------Continuing operations basis:Revenues $431.1 $408.4 6% $1,507.2 $1,382.0 9%Operating income $ 61.8 $ 48.2 28% $ 170.3 $ 148.2 15%Net earnings $ 44.9 $ 34.2 31% $ 120.6 $ 102.7 17%Earnings per share - basic $ 0.59 $ 0.44 34% $ 1.57 $ 1.33 18%Discontinued operations:Net earnings $ - $ - n/m $ - $ 143.8 n/mEarnings per share - basic $ - $ - n/m $ - $ 1.87 n/mTotal:Net earnings $ 44.9 $ 34.2 31% $ 120.6 $ 246.5 (51%)Earnings per share - basic $ 0.59 $ 0.44 34% $ 1.57 $ 3.20 (51%)----------------------------------------------- ----------------------------Note - 2011 net earnings from discontinued operations includes a gain ondisposition of $133.2 million, $1.73 per share basic.
Toromont reported strong results in the fourth quarter with net earnings from continuing operations increasing 31%, reflecting strong growth in product support, rental activities and improved margins due to sales mix. For the year, net earnings increased 17% on the same factors as well as higher new equipment deliveries.
"We are very pleased with our results for the quarter and year. Revenues from equipment, product support and rentals were at record levels for the full year and were at or near record levels for the quarter," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Each of our business units set records for the year. Our increased installed base and focus on product support, combined with increased rental utilization, resulted in terrific growth in earnings of 17%."
Considering the success achieved in 2012, solid financial position and positive long-term outlook the Board of Directors increased the quarterly dividend to 13 cents per share. This represents an 8% increase in Toromont's regular quarterly cash dividend. The next dividend is payable April 1, 2013, to shareholders of record at the close of business on March 13, 2013. The Company has paid dividends every year since going public in 1968 and has announced dividend increases in each of the past 24 years.
Highlights:
-- Net earnings from continuing operations were $44.9 million in the quarter ($0.59 per share basic), up 31% from $34.2 million reported in the same quarter last year. The improvement resulted from higher gross margins, an improved expense ratio, higher revenues and a lower statutory income tax rate.-- For the full year, net earnings from continuing operations were $120.6 million ($1.57 per share basic), 17% higher than 2011. Higher revenues, an improved expense ratio, higher gross margins and a reduction in statutory income tax rates contributed to the improvement.-- Equipment Group revenues of $367 million were down 1% in the fourth quarter versus the similar period of 2011 on lower new and used equipment sales. Product support and rental revenues were at record levels for the quarter, up 29% and 26% respectively from the fourth quarter of 2011. Operating income increased 23% in the quarter compared to last year on higher gross margins resulting from improved sales mix, with a higher proportion of product support activities in the current period, and higher heavy and light rental fleet utilization. Investments in the rental fleet continue to gain traction. Gross margin improvement was partially offset by higher expense levels and lower revenues.-- Equipment Group revenues were $1.3 billion for 2012, 9% higher than last year with records in equipment sales, product support and rental. Revenue growth resulted largely from increased mining activity in our markets. Operating income increased 16% year-over-year on higher revenues, improved gross margin (largely on sales mix) and a lower expense ratio.-- Equipment Group backlogs were $128 million at the end of 2012 compared to $224 million at this time last year. Significant mining deliveries in the year drew down the order backlog. Bookings of $156 million in the fourth quarter were 1% lower than the fourth quarter of 2011. Bookings in 2012 totalled $614 million compared to $635 million in the prior year.-- CIMCO had excellent results for the fourth quarter with revenues of $64 million and operating income of $4.4 million, up from $37 million and $1.5 million in the fourth quarter of 2011. Significant industrial package sales revenues in the fourth quarter of 2012 exceeded the expected decline in recreational package sales. Product support sales were also strong, up 14%.-- CIMCO revenues for the year were a record at $197 million, up 6% from 2011. Package sales and product support both reported increases. Higher industrial revenue exceeded the expected decline in recreational. Operating income increased 3% for the year, reaching $14.3 million or 7.2% of revenues. Increased income driven by higher revenues was partially offset by lower gross margins.-- CIMCO bookings were $23 million in the fourth quarter of 2012 compared to $27 million for the same period last year. Bookings for the year were $162 million, 78% higher than 2011 on a significant order from Maple Leaf Foods. Even excluding this order, bookings for the year were up 25%. Backlogs were $99 million at December 31, 2012, up 94% over 2011.-- Net earnings were $44.9 million in the quarter ($0.59 per share basic) and $120.6 million ($1.57 per share basic) for the year. Return on opening shareholders' equity was 30.1% and return on capital employed was 28.7%.-- The Company maintained a strong financial position. Total debt net of cash to total capitalization was 25%, well within stated capital targets.
