Q1 2019

First quarter sales increase 10 percent to a record $603.0 million

Reported quarterly EPS of $0.55; adjusted quarterly EPS of $0.51, up 6.3 percent over comparable 2018 period adjusted EPS of $0.48, includes $0.03 acquisition related expenses

Strength of new products across the portfolio drove positive performance for the quarter

“Our professional businesses delivered another good quarter, led by strength in landscape contractor sales, increased golf and grounds channel demand, and positive momentum in our BOSS® business,” said Richard M. Olson, Toro’s chairman and chief executive officer. “New products were again the key to success, as customers responded favorably to the latest lineup of our Exmark® Lazer®, and Radius® zero-turn riding mowers, and the BOSS® Stainless Steel XT V-Plow, which offers enhanced productivity and maneuverability for operators. Recent snow events in key regions also helped bolster sales of both professional and residential snow and ice management products in the quarter.

“At recent industry EDART shows, our team showcased several new products with the latest technology, designed to help our customers do their jobs more effectively. Key product lines like the Greensmaster® eTriFlex™ fully electric riding greensmower that effectively eliminates the potential for hydraulic leaks, while offering superior cutting performance, generated excitement among customers. The Outcross® 9060 continues to be a crowd favorite as customers learn more about the various attachments and versatility this machine offers to help address some of their biggest challenges. Our new Dingo® TXL 2000 also continues to impress with its vertical lifting capacity and telescoping arms for increased productivity and ease of use.

“We are very excited about the recent announcement regarding the acquisition of Charles Machine Works, known as 'The Underground Authority,' with a portfolio of businesses including Ditch Witch®, and other leading brands in the underground construction market. As mentioned during our conference call last week, this acquisition will align very well with our strategic priorities and will naturally complement our existing business. Similarly, the cultural alignment, commitment to innovation and the importance of community shared by the two companies, should position us well for a successful integration.

“Looking ahead, we remain committed to effectively balancing tariffs and related commodity pressures, with productivity gains and pricing strategies. While we maintain our prudent approach to expense management, we will not sacrifice important investments in new product development, technologies or operating efficiencies. These factors, paired with the good work and dedication of our team, positions us well to execute in the future.”
The Toro Company Reports Record First Quarter Results | The Toro Company

A Toro Co (NYSE: TTC) anunciou seu resultado trimestral na quinta-feira, 21 de fevereiro. A empresa divulgou lucro de US $ 0,51 por ação no trimestre, superando a estimativa de consenso de Zack's, que era de US $ 0,50, por US $ 0,01. A empresa reportou receita de US $ 603 milhões durante o trimestre, ao passo que a estimativa do mercado era de US $ 575,05 milhões. A Toro teve um retorno sobre o patrimônio líquido de 45,99% e uma margem líquida de 10,39%. A receita do negócio subiu 10,0% na comparação ano a ano. Durante o mesmo trimestre do ano anterior, a companhia reportou lucro de US $ 0,48 por ação (EPS).
NYSE:TTC - Stock Price, News, & Analysis for Toro | MarketBeat

Richard M. Olson -- Chairman and Chief Executive Officer

Thank you Heather. Good morning to all of our listeners. Fiscal 2019 is off to a good start with record first quarter sales. While the first quarter is traditionally a smaller one, we are pleased to have delivered strong results including record net sales of $603 million, an increase of 10% and net earnings of $59.5 million or $0.55 per share. Adjusted net earnings for the quarter were $55.2 million or $0.51 per share compared to adjusted net earnings of $52.1 million or $0.48 per share in the comparable 2018 period, an increase of 6.3%.

Our professional sales grew 12.7% due to strong demand for our landscape contractor, golf, sports fields and grounds and BOSS management snow and ice products. Residential sales were up 1.9% for the quarter due to higher shipments of snow throwers and walk power mowers. Sales increases in both segments also benefited from pricing actions that partially offset inflationary pressures. Following a brief commentary on our businesses, Renee will discuss our financial and operating results in more detail.

First our landscape contractor equipment alliance experienced solid first quarter retail and channel demand across our zero-turn riding offerings especially our Radius and Lazer models. Shipments of intermediate walk behind mowers also contributed to the strong quarter results. Next our golf and sports fields and grounds delivered solid results for the quarter, driven by channel demand as distributors prepared to fulfill their strong base of customer orders. Shipments of grounds master mowers and Workman utility vehicles led the way.

We were honored to send a crew and equipment to Atlanta's Mercedes Benz Stadium to once again help prepare the field for the Super Bowl. Our fleet of maintenance equipment, vehicles, Pro Force blowers and sensing technology enabled the field managers to address specific needs to optimize the playing surface for the big game. We also enjoyed very successful appearances of the recent STMA and the Golf Industry shows. We will highlight some of the exciting new products we unveiled during the shows later in the call.

Another strong first quarter performance was turned in by our BOSS team. New products including our Stainless Steel XT V-Plow, Exact Path drop spreader and the rear-mounted plow were particularly well received. The snow raider from the L.T. Rich acquisition also contributed to the positive results for the quarter. Innovation and the continuous improvement of BOSS products resonate with our customers.

Turning to our rental and construction business, shipments to construction equipment dealers were up for the quarter as their independent contractor customers, who enjoyed steady work last year invested in new equipment to update their fleet for the coming season. The release of the new TXL 2000 contributed to the positive results. However the rental business experienced a slowdown during the quarter as severe winter temperatures had a negative impact on equipment usage. Shipments were also affected by some customers deciding to take their large fleet orders in the second quarter instead of in the first as they have in the past. Following last week's announcement, the teams from Toro and Charles Machine Works' Ditch Witch organization were extremely busy during this week's American Rental Show. The prospects of our joining forces generated high levels of excitement in both companies' booths and throughout the conference center.

Our irrigation and lighting business enjoyed similarly successful recession at both the Golf Show and Irrigation Association Show. Golf product sales remained strong during the quarter while other irrigation segments faced unfavorable weather conditions. Conversely weather had a favorable impact on our residential business. Recent snowfalls fueled strong demand for snow throwers. Our team effectively executed storm (ph) shipping strategies to capitalize on rapidly developing retail opportunities. Residential sales for the quarter were further bolstered by solid sales of our walk power mowers.

Finally the international business saw mixed results across businesses and region. Our international team benefited from strong demand for golf and grounds equipment in golf irrigation products in certain regions. Customer interest in our new Outcross, Groundsmaster 1200 and ProLine H800 remain high. However regional weather pattern and currency headwinds tempered our international business results.

Toro Co (TTC) Q1 2019 Earnings Conference Call Transcript -- The Motley Fool