TORONTO, ONTARIO--(Marketwired - Oct. 27, 2014) - Toromont Industries Ltd. (TSX:TIH) reported its financial results for the third quarter ended September 30, 2014.

Three months ended September 30 Nine months ended September 30
millions, except per share amounts 2014 2013 % change 2014 2013 % change
Revenues $ 467.4 $ 498.3 (6 %) $ 1,194.7 $ 1,186.2 1 %
Operating income $ 56.2 $ 62.1 (10 %) $ 122.7 $ 126.2 (3 %)
Net earnings $ 40.0 $ 43.5 (8 %) $ 87.5 $ 88.6 (1 %)
Earnings per share - basic $ 0.52 $ 0.57 (9 %) $ 1.14 $ 1.16 (2 %)

"Overall, we are pleased with performance in the third quarter and first nine months of the year," said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. "Equipment Group markets have continued to be reasonably strong, albeit competitive. The timing of significant mining deliveries somewhat masks the full measure of activity versus a year ago. Product support and rental have produced meaningful growth responding to increases in machine population and our investment in rental fleet. CIMCO product support growth continued in the quarter and year-to-date. Bookings activity improved in the quarter after a slower first half of the year."


  • Equipment Group revenues decreased 4% to $411.1 million in the third quarter mainly on lower new and used equipment sales. The third quarter of 2013 presents a challenging comparator as the Company completed its largest-ever single quarter mining delivery totalling $82 million. Rentals and product support revenues were both at record levels. Operating income decreased 6% compared to last year, largely on the lower revenues.

  • Equipment Group revenues were up 3% to $1 billion year-to-date mainly on increased used equipment sales, product support and rentals. Rentals were up 13% to $157.1 million while product support revenues were up 10% to $338.6 million. Operating income increased 2% on the higher revenues.

  • Equipment Group backlogs were $111 million at September 30, 2014, up from $97 million at December 31, 2013 and down from $116 million at this time last year. Most of the order backlog is expected to be delivered this year. Bookings decreased 26% in the quarter, as total activity including the significant Keeyask order were more than offset by a large mining order received last year. Bookings through September 30, 2014 were 2% higher than last year.

  • CIMCO revenues were down $14.8 million for the quarter and $24.0 million year-to-date versus the records set last year. Industrial and Canadian recreational project activity has been lower year-over-year while US recreational activity has increased. Product support revenues of $27.5 million in the quarter and $72.5 million year-to-date were new highs for their respective periods, with increases in both Canada and the US. Operating income was 34% lower in the quarter and 42% lower year-to-date compared to similar periods in 2013 on lower project revenues.

  • CIMCO bookings in the quarter were up 47% with strong activity in the Canadian industrial and US markets. Year-to-date bookings were lower by 3% on lower Canadian recreational activity. Backlogs of $70 million at September 30, 2014 were up from $65 million at December 31, 2013 and down from $76 million at September 30, 2013. Backlogs are within normal levels for this time of year.

  • Net earnings decreased 8% in the quarter compared to last year largely due to the lower revenues and higher expense levels. On a year-to-date basis, net earnings were 1% lower compared to last year due to lower gross profit margins and marginally higher expense levels. The lower effective income tax rate positively impacted both the quarter and year-to-date net earnings.

  • Earnings per share (basic) decreased $0.05 to $0.52 in the quarter and $0.02 to $1.14 year-to-date.

  • The Company is in a strong financial position. Total debt, net of cash, to total capitalization was 17%, well within stated capital targets.

  • The Board of Directors announced the regular quarterly dividend of 15 cents per outstanding common shares, payable January 2, 2015 to shareholders of record on December 11, 2014. The regular quarterly dividend was previously increased 15% to 15 cents per share effective with the dividend paid April 1, 2014.

  • On September 30, 2014, the Company acquired Ag West Equipment Limited ("Ag West") for $6 million inclusive of acquired debt. Based in Manitoba, Ag West specializes in the sale and service of agricultural equipment as an authorized dealer of Agco and other manufacturers' products. Ag West has been in business for over twenty years and last year generated revenues of $19 million. The acquisition further expands Toromont's product offerings and strengthens its presence in the agricultural sector.

"In the Equipment Group, heightened competitive conditions across all industries we serve, together with the weaker Canadian dollar, have suppressed gross profit margins. Product support growth is expected to continue with the substantially increased base of equipment within our territory. Rental revenue growth is expected to continue in light of good demand, supported by our investment in the rental fleet," continued Mr. Medhurst. "Though project activity is tight at CIMCO, backlogs were at satisfactory levels for this time of year. Product support growth remains encouraging."

Quarterly Results Materials

The complete third quarter report for 2014, including MD&A and unaudited interim condensed consolidated 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 Tuesday, October 28, 2014 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-866-223-7781 (toll free) or 416-340-2216 (Toronto area). A replay of the conference call will be available until Tuesday, November 11, 2014 by calling 1-800-408-3053 or 905-694-9451 and quoting passcode 2529948.

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; 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 at

Three months ended September 30 Nine months ended September 30
($ thousands, except share amounts) 2014 2013 2014 2013
Revenues $ 467,432 $ 498,297 $ 1,194,739 $ 1,186,167
Cost of goods sold 353,622 377,969 907,886 898,503
Gross profit 113,810 120,328 286,853 287,664
Selling and administrative expenses 57,621 58,235 164,185 161,513
Operating income 56,189 62,093 122,668 126,151
Interest expense 2,060 2,242 6,217 6,519
Interest and investment income (444 ) (599 ) (2,406 ) (2,859 )
Income before income taxes 54,573 60,450 118,857 122,491
Income taxes 14,535 16,965 31,331 33,874
Net earnings $ 40,038 $ 43,485 $ 87,526 $ 88,617
Earnings per share
Basic $ 0.52 $ 0.57 $ 1.14 $ 1.16
Diluted $ 0.51 $ 0.56 $ 1.13 $ 1.15
Weighted average number of shares outstanding
Basic 77,116,885 76,625,374 77,015,442 76,570,320
Diluted 77,775,872 77,227,797 77,647,692 77,143,911

Contact Information:

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