TORONTO, ONTARIO--(Marketwire - Aug. 12, 2011) - Toromont Industries Ltd. (TSX:TIH) today reported financial results for the second quarter ending June 30, 2011.

Three months ended June 30 Six months ended June 30
millions, except per share amounts 2011 2010 % change 2011 2010 % change
Continuing operations basis:
Revenues $ 344.6 $ 315.3 9 % $ 606.3 $ 528.2 15 %
Operating income $ 34.5 $ 30.7 12 % $ 55.7 $ 42.8 30 %
Net earnings $ 23.7 $ 17.9 33 % $ 37.5 $ 24.7 52 %
Earnings per share - basic $ 0.30 $ 0.23 30 % $ 0.49 $ 0.33 48 %
Discontinued operations:
Net earnings $ 136.0 $ 4.0 n/m $ 143.8 $ 12.7 n/m
Earnings per share - basic $ 1.77 $ 0.06 n/m $ 1.86 $ 0.17 n/m
Net earnings $ 159.7 $ 21.9 n/m $ 181.3 $ 37.4 n/m
Earnings per share - basic $ 2.07 $ 0.29 n/m $ 2.35 $ 0.50 n/m
Note – net earnings from discontinued operations includes a gain on disposition of $133.2 million, $1.73 per share basic.

Toromont reported strong results from continuing operations in the second quarter. Net earnings from continuing operations increased 33% in the second quarter, reflecting higher revenues and better margins.

"Our customers are continuing to recover from the recession. Product support and rental activity were at record levels. Second quarter bookings were up 15%, reflecting strength in mining, construction and road building industries. Backlogs were up 45% over last year," said Robert M. Ogilvie, Chairman and CEO of Toromont Industries Ltd.

The Company completed the spinoff of its natural gas compression and processing equipment business, Enerflex Ltd. ("Enerflex"), to its shareholders as a separate, publicly traded company effective June 1, 2011. The financial results of Enerflex have been included in the Company's results of operations up to that effective date and are reported as discontinued operations. A net gain of $133.2 million, $1.73 per share basic, was recorded on the spinoff of Enerflex.

The Board of Directors declared a quarterly dividend of 11 cents per share, payable October 3, 2011, to shareholders of record at the close of business on September 15, 2011. This represents a 10% increase in Toromont's regular quarterly cash dividend.

Second Quarter Highlights(1):

  • Net earnings from continuing operations were $23.7 million in the quarter ($0.30 per share basic), up 33% from $18.3 million reported in the same quarter last year. Higher revenues, improved margins and lower interest expense contributed to the improvement. For the first half of the year, net earnings from continuing operations were $37.5 million ($0.49 per share basic), 52% higher than the similar period last year.
  • Equipment Group revenues of $289 million were up 9% in the second quarter versus the similar period of 2010 on strong new machine sales and higher rental and product support activities. Rental revenues of $38 million were a record for this time of year, while product support revenues of $87 million were also an all-time record. Operating income increased 7% in the second quarter and was up 24% through the first half of the year compared to last year, largely tracking the higher revenues.
  • Equipment Group bookings totalling $154 million in the second quarter were 12% higher than the second quarter of 2010. Backlogs of $280 million were up 81% compared to this time last year. Mining, power systems and road building have reported strong activity levels.
  • CIMCO revenues of $55 million were 9% higher in the second quarter compared to the same period last year and were 10% higher through June. Operating income reached a record for this time of year on higher activity levels.
  • CIMCO bookings totalling $24 million in the quarter were 27% lower than those reported in the second quarter of 2010, stemming in part from the end of the governmental stimulus program. Backlogs ended the quarter at $55 million.
  • Toromont paid a quarterly dividend on July 1, 2011 of $0.10 per share on its outstanding common shares. This is consistent with the first quarter as the previous quarterly dividend of $0.16 per share was split, $0.10 from Toromont and $0.06 from Enerflex. As announced, the dividend payable October 3, 2011 has been increased to $0.11 per share.
  • The Company amended its committed credit facility in conjunction with the spinoff of Enerflex. The new facility provides for $200 million in borrowings and matures in June 2015. The Company ended the quarter with $19.6 million cash and had no drawings on the credit facility.
  • Net earnings per share from discontinued operations were $1.77 in the second quarter and $1.86 through the first half of 2011. Net earnings included a gain of $133.2 million, $1.73 per share basic realized on the spinoff of Enerflex. The gain reflects the difference between the fair value, based on share price as at the time of distribution, and the carrying value of assets and liabilities of Enerflex, offset by accumulated other comprehensive losses related to the historical translations of Enerflex's foreign operations.
  • Net earnings were $159.7 million in the quarter ($2.07 per share basic). For the first half of the year, net earnings were $181.3 million ($2.35 per share basic).
  • Subsequent to the end of the quarter through to August 11, 2011, the Company repurchased 57,000 shares for cancellation under its existing normal course issuer bid.
(1) Includes non-GAAP financial measures. See discussion in "Non-GAAP Financial Measures" section in the Management's Discussion and Analysis with respect to financial results for the three and six months ended June 30, 2011.

"Toromont is well positioned to achieve continuing success, with a healthy backlog, leading market positions and record volumes in our product support activities," continued Mr. Ogilvie. "We have significant organic growth opportunities. While growing, our markets have not yet recovered to pre-recession levels and we can improve our share of market. Our entire team is focused on providing exceptional service to our customers. We will be participating in the recent acquisitions of Bucyrus and MWM by Caterpillar as well as continuing to search for strategic acquisitions. As mine development is particularly active in our region, we expect to be participating in numerous new mine projects over the next few years. Our dividend declaration continues forty-two consecutive years of dividend payments and marks twenty-two years of dividend increases. We have a strong balance sheet, we have confidence in our business and we are optimistic about our growth prospects."

Quarterly Results Materials

The complete second quarter report for 2011, including MD&A and unaudited interim financial statements, is available on our website at

Quarterly Conference Call and Webcast

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Friday, August 12, 2011 at 5:00 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 Friday, August 26, 2011 by calling 1-800-408-3053 or 905-694-9451 (Toronto area) and quoting passcode 6567856.

Both the live webcast and the replay of the quarterly conference call can be accessed at


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; tax and other risks associated with the spinoff of Enerflex; 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 and may also be found at 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 on the Web at

Three months ended June 30 Six months ended June 30
($ thousands, except share amounts) 2011 2010 2011 2010
Revenues $ 344,644 $ 315,319 $ 606,253 $ 528,180
Cost of goods sold 260,891 241,990 457,357 401,963
Gross profit 83,753 73,329 148,896 126,217
Selling and administrative expenses 49,277 42,587 93,191 83,369
Operating income 34,476 30,742 55,705 42,848
Interest expense 2,307 3,567 4,849 7,568
Interest and investment income (506 ) (407 ) (1,056 ) (1,160 )
Income before income taxes 32,675 27,582 51,912 36,440
Income taxes 8,953 9,696 14,387 11,734
Net earnings from continuing operations 23,722 17,886 37,525 24,706
Net gain on spinoff of Enerflex 133,164 - 133,164 -
Earnings from discontinued operations 2,796 4,036 10,617 12,693
Net Earnings $ 159,682 $ 21,922 $ 181,306 $ 37,399
Earnings (losses) attributable to :
Common shareholders $ 160,088 $ 21,837 $ 181,929 $ 37,326
Non-controlling interests $ (406 ) $ 85 $ (623 ) $ 73
Basic earnings per share
Continuing operations $ 0.30 $ 0.23 $ 0.49 $ 0.33
Discontinued operations 1.77 0.06 1.86 0.17
$ 2.07 $ 0.29 $ 2.35 $ 0.50
Diluted earnings per share
Continuing operations $ 0.30 $ 0.22 $ 0.49 $ 0.32
Discontinued operations 1.76 0.06 1.85 0.17
$ 2.06 $ 0.28 $ 2.34 $ 0.49
Weighted average number of shares outstanding
Basic 77,203,562 76,881,262 77,183,293 75,381,981
Diluted 77,601,299 77,123,623 77,542,503 75,670,159

Contact Information:

Toromont Industries Ltd.
Robert M. Ogilvie
Chairman and Chief Executive Officer
(416) 667-5554

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