Toromont Announces Results for the First Quarter of 2021 and Quarterly Dividend

By Globe Newswire4 days ago

TORONTO, May 04, 2021 (GLOBE NEWSWIRE) -- Toromont Industries Ltd. (TSX:TIH) reported its financial results for the first quarter ended March 31, 2021.

Toromont's first quarter results reflect our people's unwavering commitment to meet our customer needs as we continue to navigate through a complex operating environment, stated Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. The Equipment Group reported strong prime product deliveries, reflecting improved activity levels in the quarter. CIMCO revenues increased with good progress on its order backlog. Product support activity, particularly in the recreational markets, continues to reflect the impact of COVID restrictions. Operational efficiencies with continued focus on expense disciplines resulted in solid bottom line growth.

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Highlights:

Consolidated results

  • Revenues increased 13% in the quarter versus the same period last year where early COVID effects caused steep declines in the latter part of the quarter. This reflected improved activity levels in many areas and good execution from our teams. Product support revenues were 2% higher while rental revenues 11% lower compared to the similar quarter last year.
  • Operating income(1) increased 27% on the higher revenues, coupled with relatively unchanged expense levels.
  • Net earnings increased $10.6 million or 28% in the quarter versus a year ago to $48.0million or $0.58 EPS.
  • Backlogs(1) were $911.5 million at March 31, 2021, compared to $567.0 million at March31,2020, reflecting strong bookings(1) in the Equipment Group over the last two quarters.

Equipment Group

  • Revenues were up $69.6 million or 11% to $727.3 million for the quarter on strong equipment sales combined with product support growth. Weaker rental revenues were experienced on lower activity in most markets.
  • Operating income was up $14.7 million or 27% reflecting higher revenues against a relatively unchanged level of expenses.
  • Bookings in the first quarter of $686.1 million increased 103% reaching new highs. All sectors reported higher orders, most notably the mining and construction sector.
  • Backlogs of $736.0 million at the end of March 2021 were up $382.9 million or 108% from the end of March 2020 across all sectors. Approximately 80% of the backlog is expected to be delivered this year.

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