TOROMONT ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2022 AND QUARTERLY DIVIDEND

TOROMONT ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2022 AND QUARTERLY DIVIDEND

Consolidated results

• Revenues decreased 4% in the quarter against a tough comparable. Revenues in 2021 benefited from timing of project construction activity, as well as accelerated purchasing by customers as COVID restrictions began to ease and reflecting historically high activity. Equipment sales were down 19% compared to prior year, with the Equipment Group down 16% and CIMCO package revenues down 38%, as both groups continue to experience delays in construction project schedules and deliveries due to supply chain constraints in the current year. Product support revenues were 14% higher on increased demand and technician headcount, with work-in-process levels remaining high, while rental revenues grew 19% on a larger fleet and higher utilization.
• Revenues on a year-to-date basis were largely unchanged at $1.9 billion, as the improved activity in rentals (up 23%) and product support (up 12%) offset reductions in equipment and package revenues (down 12%) against a tough comparable last year, coupled with continuing supply chain issues in the current year.
• Operating income⁽¹⁾ increased 28% in the quarter on a favourable sales mix (higher percentage of rentals and product support revenues to total revenues) and improved gross margins. Expense levels were up slightly at 12.1% of revenue (11.7% in Q2 2021), reflecting continued cost focus in an inflationary environment, consistent with gradual business openings.
• Operating income increased 26% in the first half of 2022, and was 12.5% of revenues compared to 10.0% in the similar period last year, reflecting the continued favourable sales mix and improved gross margins, offset by a higher expense ratio.
• Net earnings increased $26.3 million or 31% in the quarter versus a year ago to $111.7 million or $1.35 EPS.
• For the first half of the year, net earnings increased $37.9 million or 28% to $171.2 million, or $2.08 EPS.
• Bookings⁽¹⁾ for the second quarter were 34% lower compared to last year and were 25% lower on a year‑to‑date basis. Both the Equipment Group and CIMCO reported strong bookings in 2021, after a period of lower activity stemming from COVID restrictions. Backlogs⁽¹⁾ were $1.5 billion at June 30, 2022, compared to $957.8 million at June 30, 2021, reflecting strong order activity over the past year coupled with ongoing supply constraints.

https://www.newswire.ca/news-releases/toromont-announces-results-for-the-second-quarter-of-2022-and-quarterly-dividend-817989361.html