The Toro Company (TTC) has reported a 14.59 percent rise in profit for the quarter ended Feb. 03, 2017. The company has earned $44.99 million, or $0.41 a share in the quarter, compared with $39.26 million, or $0.35 a share for the same period last year.
Revenue during the quarter grew 6.05 percent to $515.84 million from $486.40 million in the previous year period. Gross margin for the quarter expanded 4 basis points over the previous year period to 62.49 percent. Total expenses were 88.26 percent of quarterly revenues, down from 88.93 percent for the same period last year. This has led to an improvement of 67 basis points in operating margin to 11.74 percent.
Operating income for the quarter was $60.57 million, compared with $53.84 million in the previous year period.
"The company is off to a solid start for the year with record results for the first quarter," said Richard M. Olson, Toro's president and chief executive officer. "Growth in the professional segment was a key driver with new product offerings in multiple areas. The landscape contractor businesses experienced strong demand for the new lines of professional zero-turn mowers. Also contributing to the momentum were strong sales in our golf, BOSS snow and ice management and specialty construction businesses."
For financial year 2017, The Toro Company expects revenue to grow in the range of 3 percent to 4 percent. It projects diluted earnings per share to be in the range of $2.25 to $2.30 for the same period.
For the second-quarter, The Toro Company expects diluted earnings per share to be $1.
Operating cash flow improves significantly
The Toro Company has generated cash of $15.39 million from operating activities during the quarter, up 239.70 percent or $10.86 million, when compared with the last year period.
The company has spent $35.60 million cash to meet investing activities during the quarter as against cash outgo of $8.36 million in the last year period.
The company has spent $96.29 million cash to carry out financing activities during the quarter as against cash outgo of $3.07 million in the last year period.
Cash and cash equivalents stood at $158.89 million as on Feb. 03, 2017, up 34.50 percent or $40.75 million from $118.14 million on Jan. 29, 2016.
Debt comes down
The Toro Company has recorded a decline in total debt over the last one year. It stood at $338.27 million as on Feb. 03, 2017, down 18.35 percent or $76 million from $414.28 million on Jan. 29, 2016. Total debt was 24.11 percent of total assets as on Feb. 03, 2017, compared with 29.72 percent on Jan. 29, 2016. Debt to equity ratio was at 0.66 as on Feb. 03, 2017, down from 0.90 as on Jan. 29, 2016. Interest coverage ratio improved to 12.40 for the quarter from 11.57 for the same period last year.
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