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Toromont Announces Results for the First Quarter of 2013 and Regular Quarterly Dividend

Apr 24 2013 12:00AM

Marketwire

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TORONTO, ONTARIO -- (Marketwired) -- 04/24/13 -- Toromont Industries Ltd. (TSX: TIH) today reported financial results for the three-month period ended March 31, 2013, with revenues up 11% and net earnings up 5% compared to the first quarter of 2012.

---------------------------------------------------------------------------- Three months ended March 31 -----------------------------------millions, except per share amounts 2013 2012 % change----------------------------------------------------------------------------Revenues $ 313.1 $ 281.5 11%Operating income $ 25.4 $ 24.1 5%Net earnings $ 17.8 $ 17.0 5%Earnings per share - basic $ 0.23 $ 0.22 5%----------------------------------------------------------------------------



"We are pleased with results for the first quarter, traditionally our weakest due to seasonality. Revenues were up 11% from a year ago, fueled by increased equipment sales, rentals and product support," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Earnings also increased, a testimony to our strong market position and product diversity following a period of heavy contributions from mining equipment sales. Gross margins were dampened by competitive equipment markets driven by a global surplus of new equipment, and additional costs associated with the growth of the product support organization."

Highlights:

-- Equipment Group revenues for the quarter were $267 million, up 9% from 2012 on higher new equipment sales, product support and rentals. Operating income increased 7% compared to last year on the higher revenues. Heavy construction and power systems reported strong activity levels.-- Equipment Group backlogs were $147 million at March 31, 2013 compared to $128 million at December 31, 2012 and $260 million at this time last year. Backlogs have declined from this time last year due to significant mining deliveries during 2012 and improved equipment availability. Bookings were $145 million in the first quarter of 2013 compared to $155 million for the same period last year.-- CIMCO revenues of $46 million in the quarter were 30% higher than a year ago. Traditionally, results at CIMCO are softer in the first quarter due to the seasonality of construction schedules. Operating income decreased 18% in the quarter on lower gross margins resulting from tighter bids, more favourable contract close-outs last year, and the mix of product support revenues to total. Given this normal seasonal pattern, it was still a good first quarter and CIMCO's third best for profitability.-- CIMCO bookings in the first quarter of 2013 were $34 million, down 55% versus the first quarter of 2012. Excluding orders from Maple Leaf Foods totalling a record $50 million in the prior year, bookings were 35% higher than 2012 on stronger industrial activity. Backlogs were $107 million at March 31, 2013.-- Net earnings were $17.8 million in the quarter ($0.23 per share basic), up 5% from $17.0 million reported last year, reflecting higher revenues and good expense control, partially offset by lower gross margins.-- Equipment Group inventory levels have been a focus this year. These inventories were reduced $46 million from a year ago and $3 million from December 31, 2012. The reduction from year-end represents continued focus as the normal seasonal trend would have levels increasing during the first quarter.-- Total debt net of cash to total capitalization was 26%, well within stated capital targets.-- The Board of Directors announced the regular quarterly dividend of 13 cents per share on outstanding common shares, payable July 2, 2013 to shareholders of record on June 13, 2013. The regular quarterly dividend was previously increased 8% to 13 cents per share effective with the dividend paid April 1, 2013.



"We are encouraged with the results for the first quarter of the year, our best ever first quarter. Activity levels and sentiment in the core construction markets, rental segments and improved performance at Power Systems were healthy," continued Mr. Medhurst. "In the short term, mining will not repeat the substantial contribution to results achieved last year, however growing product support and rental activity are expected to provide a measure of counter balance. At CIMCO, recreational bookings recovered to more normal levels and the order backlog position bodes well for performance this year."

Annual and Special Meeting of Shareholders

The Company will hold its Annual and Special Meeting of Shareholders on April 25, 2013, at 10 a.m. (ET) in the Imperial Room at the Fairmont Royal York Hotel in Toronto, Ontario. The meeting will also be available via live audio webcast at www.toromont.com.

Quarterly Results Materials

The complete first quarter report for 2013, including MD&A and unaudited interim condensed 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 24, 2013 at 2:00 p.m. (ET). The call may be accessed by telephone at 1-866-226-1792 (toll free) or 416-340-2216 (Toronto area). A replay of the conference call will be available until Wednesday, May 8, 2013 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 3052783.

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 and may also be found 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. 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 can be found at www.toromont.com.

TOROMONT INDUSTRIES LTD.INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS(Unaudited) Three months ended March 31($ thousands, except share amounts) 2013 2012---------------------------------------------------------------------------- RestatedRevenues $ 313,132 $ 281,459Cost of goods sold 237,213 206,214----------------------------------------------------------------------------Gross profit 75,919 75,245Selling and administrative expenses 50,568 51,177----------------------------------------------------------------------------Operating income 25,351 24,068Interest expense 2,102 2,121Interest and investment income (1,192) (1,195)----------------------------------------------------------------------------Income before income taxes 24,441 23,142Income taxes 6,593 6,172----------------------------------------------------------------------------Net Earnings $ 17,848 $ 16,970--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings per share Basic $ 0.23 $ 0.22 Diluted $ 0.23 $ 0.22Weighted average number of shares outstanding Basic 76,495,141 76,785,655 Diluted 77,088,916 77,474,755





Contacts:
Toromont Industries Ltd.
Paul R. Jewer
Executive Vice President and Chief Financial Officer
(416) 667-5638
www.toromont.com





Source: Marketwire


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