|Three months ended||Nine months ended|
|millions, except per share amounts||2017||2016||% change||2017||2016||% change|
|Basic earnings per share ("EPS")||$||0.63||$||0.61||3%||$||1.49||$||1.41||6%|
"Results for the three and nine months ended
Acquisition of the
|•||The acquisition of the businesses and net operating assets of Hewitt was completed on
|•||Toromont became the authorized Caterpillar dealer for
|•||This acquisition provides a significant opportunity for profitable growth and the continued delivery of consistent returns to our stakeholders. This positions Toromont well to further strengthen its expertise and total customer offering in the key mining, construction and power systems markets and provides an expanded platform for market diversification.|
|Consolidated Results - good growth in earnings|
|•||Net earnings increased 4% in the quarter to
|•||EPS increased 3% or
|•||Revenues were up
|•||Bookingsa increased 2% in the quarter to
|CIMCO - improved results on strong Canadian activity levels|
|•||Revenues increased 9% to
|•||Revenues were up 7% year-to-date to
|•||Bookings were up 200% in the quarter to
|Financial Position - remains strong|
|•||Toromont maintained a very strong financial position. Net debt to total capitalizationa was 2% at
|•||The Board of Directors announced a quarterly dividend of
|•||On closing the Hewitt acquisition on
|•||expanded and extended its credit facility to include term acquisition financing of
|•||issued approximately 2.25 million common shares in consideration of the Hewitt acquisition.|
"The Hewitt acquisition marks a very important milestone for Toromont and we expect it to be beneficial to our customers, employees, suppliers and shareholders on many levels. We appreciate the confidence of our partner, Caterpillar, in endorsing this opportunity and we welcome the Hewitt team to the Toromont family. Integration efforts are already well under way," continued
Quarterly Results Materials
The complete third quarter report for 2017, including MD&A and unaudited interim condensed consolidated 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
Both the live webcast and the replay of the quarterly conference call can be accessed at www.toromont.com.
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 reflect current estimates, beliefs, and assumptions, which are based on Toromont's perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct. This press release also contains forward-looking statements about the subsequent acquisition of the businesses of Hewitt.
Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited 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; potential environmental liabilities of the subsequently acquired businesses and changes to environmental regulation; failure to attract and retain key employees; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; and any requirement of Toromont to make contributions to the registered funded defined benefit pension plans, postemployment benefits plan or the multi-employer pension plans in which it participates or will participate upon assuming Hewitt's obligations thereunder in excess of those currently contemplated. Risks and uncertainties related to the acquisition of the Hewitt operations could also cause the actual results to differ materially from the estimates beliefs and assumptions expressed or implied in the forward-looking statements, including but not limited to: changes in consumer and business confidence as a result of the change in ownership; the potential for liabilities assumed in the acquisition to exceed our estimates or for material undiscovered liabilities in the Hewitt business; the potential for third parties to terminate or alter their agreements or relationships with Toromont as a result of the acquisition; and risks related to integration of Hewitt operations with those of Toromont including cost of integration and ability to achieve the expected benefits. Readers are cautioned that the foregoing list of factors is not exhaustive.
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 or 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, which reflect Toromont's expectations only 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 to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
|a.||These financial metrics do not have a standardized meaning under International Financial Reporting Standards, which are also referred to herein as Generally Accepted Accounting Principles (GAAP), and may not be comparable to similar measures used by other issuers. The Company's Management's Discussion and Analysis (MD&A) includes additional information regarding these financial metrics, including definitions, under the sections titled "Additional GAAP Measures and Non-GAAP Measures."|
|INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS|
|Three months ended||Nine months ended|
|($ thousands, except share amounts)||2017||2016||2017||2016|
|Cost of goods sold||442,871||383,542||1,163,561||1,081,112|
|Selling and administrative expenses||72,702||65,133||200,834||189,969|
|Gain on sale of internally-developed software||-||(4,939||)||-||(4,939||)|
|Interest and investment income||(914||)||(422||)||(3,022||)||(2,629||)|
|Income before income taxes||67,681||64,664||160,534||150,915|
|Earnings per share|
|Weighted average number of shares outstanding|
1 Direct transaction costs for advisory services were
Executive Vice President and Chief Financial Officer
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