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TORONTO, ONTARIO – Nov. 4, 2013 – Toromont Industries Ltd. (TSX:TIH) today reported financial results for the third quarter ended September 30, 2013. For the quarter, revenues increased 20% and net earnings were 34% higher compared to the same period last year.
– Equipment Group revenues for the third quarter of 2013 were $427 million, up 18% from 2012 setting third quarter records for new, used rentals and product support. Equipment revenues increased 29% compared to last year with mining, construction and agriculture markets reporting solid year-over-year increases. Product support and rentals grew 6% and 2% respectively. Operating income increased 33% compared to last year on higher revenues, improved gross profit margins and lower relative expense growth.
– On a year-to-date basis, Equipment Group revenues were $1 billion, up 7% from 2012. New and used equipment revenues were 7% higher than 2012. While mining revenues were 18% lower, construction related markets including road building and infrastructure reported increases. Product support and rentals grew 6% and 10% respectively. Operating income increased 16% compared to last year on higher revenues and lower relative expense levels. Operating income as a percentage of revenues for the nine months ended September 30, 2013 was 11.2% compared with 10.3% for the similar period last year.
– Equipment Group backlogs were $116 million at September 30, 2013, down from $128 million at December 31, 2012 and $166 million at this time last year. Backlogs have declined from this time last year due to significant mining deliveries and improved equipment availability. Bookings were $203 million in the third quarter of 2013 compared to $108million for the same period last year.
– CIMCO set a new record for revenue for this time of year, at $71 million for the quarter and $175 million for the nine-month period ending September 30, 2013. Revenues increased 35% in the quarter and 31% year-to-date compared to last year on revenues related to a significant industrial project. Compared to last year, operating income increased 30% in the first nine months on higher revenues. On a year-to-date basis, operating income as a percentage of revenues was 7.3%, unchanged from last year.
– CIMCO bookings in the third quarter of 2013 were $19 million compared to $22 million in the same period last year. Canadian recreational bookings were up slightly from last year while industrial and US bookings were lower. On a year-to-date basis, bookings were 2% lower than last year excluding a record $50 million order in the prior year. Backlogs were $76 million at September 30, 2013, a good level for this time of year.
– Net earnings were $43.5 million in the quarter ($0.57 per share basic), up 34% from $32.5 million ($0.43 per share basic) reported last year, reflecting higher revenues and lower relative selling and administrative expenses. Through September 2013, net earnings were $88.6 million ($1.16 per share basic), up 18% from $74.8 million ($0.98 per share basic) reported last year, reflecting higher revenues, improved selling and administrative and expense levels and lower net interest expense, partially offset by lower gross margins.
– Total debt net of cash to total capitalization was 21%, well within stated capital targets, strengthening from 33% at this time last year on improved cash flows.
– Toromont announced the appointment of two new independent directors, Ms. Cathryn E. Cranston and Ms. Katherine A. Rethy, effective July 29, 2013. With these appointments, the Company’s Board now consists of nine directors of whom seven are independent.
– The Board of Directors approved the regular quarterly dividend of 13 cents per share on outstanding common shares, payable January 2, 2014 to shareholders of record on December 11, 2013. The regular quarterly dividend was previously increased 8% to 13 cents per share effective with the dividend paid April 1, 2013.
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