Interim period revenues and earnings historically reflect significant variability from quarter to quarter.
The Equipment Group has historically had a distinct seasonal trend in activity levels. Lower revenues are recorded during the first quarter due to winter shutdowns in the construction industry. The fourth quarter has typically been the strongest due in part to the timing of customers' capital investment decisions, delivery of equipment from suppliers for customer-specific orders and conversions of equipment on rent with a purchase option. In the future, fluctuations in mining-related business may distort this trend somewhat due to the timing of significant deliveries in any given quarter.
CIMCO also has historically had a distinct seasonal trend in results due to timing of construction activity. Prior to the increase in activities associated with the recent Federal stimulus program, CIMCO had traditionally posted a loss in the first quarter. Profitability increased in subsequent quarters as activity levels and resultant revenues increased.
As a result of the historical seasonal sales trends, inventories increase through the year in order to meet the expected demand for delivery in the fourth quarter of the fiscal year, while accounts receivable are highest at year end.
SELECTED ANNUAL INFORMATION
(in thousands, except per share amounts) 2012 2011 2010----------------------------------------------------------------------------Revenues $1,507,173 $1,381,974 $1,207,028Net earnings - continuing operations $ 120,553 $ 102,678 $ 76,659Net earnings $ 120,553 $ 246,459 $ 103,912Earnings per share - continuing operations- Basic $ 1.57 $ 1.33 $ 1.00- Diluted $ 1.56 $ 1.32 $ 0.99Earnings per share- Basic $ 1.57 $ 3.20 $ 1.36- Diluted $ 1.56 $ 3.18 $ 1.35Dividends declared per share $ 0.48 $ 0.48 $ 0.62Total assets $ 936,170 $ 913,331 $2,271,763Total long-term debt $ 159,767 $ 134,095 $ 419,929Weighted average common shares outstanding, basic (millions) 76.5 77.0 76.2
Revenues grew 9% in 2012 and 14% in 2011 on improved market conditions and significant mining activity within the Equipment Group.
Net earnings from continuing operations improved 18% in 2012 and 34% in 2011 on the higher revenues, generally improving margins and relatively slower growth in selling and administrative expenses.
Net earnings in 2010 and 2011 include results from discontinued operations, Enerflex. Toromont completed the acquisition of ESIF in 2010. Net earnings from discontinued operations in 2011 represent five months of results to May 31, 2011. Additionally, a net gain of $133.2 million was recognized on spinoff.
Earnings per share have generally followed earnings.
Dividends have generally increased in proportion to trailing earnings growth. In 2011, in conjunction with the spinoff, the regular quarterly dividend was apportioned between Toromont and Enerflex. The previous dividend rate of $0.16 per share was allocated $0.10 to Toromont and $0.06 to Enerflex, thereby keeping shareholders whole. Subsequent to the spinoff, Toromont announced a 10% increase in its dividend rate to $0.11 per share. The dividend rate was increased again in 2012 by 9% to $0.12 per share. The Company has announced dividend increases in each of the past 23 years.
