Toro Company (the) · NYSE:TTC
Toro Company (the) — Q1 2024 Earnings Presentation
29 slides from Toro Company (the)'s earnings presentation, Mar 7, 2024
Slide 1: The Toro Company Q1 2024 Earnings Release
THE TORO COMPANY Q1 2024 EARNINGS RELEASE March 7, 2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements, which are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current assumptions and expectations of future events and
Slide 3: Overview
Overview 3 Q1 2024 EARNINGS RELEASE THE TORO COMPANY
Slide 4: The Toro Company: Built on Strong Relationships
The Toro Company: Built on Strong OUR OUR OUR Relationships and PURPOSE VISION MISSION Our Legacy of To help our customers enrich To be the most trusted leader in To deliver superior innovation and to Excellence the beauty, productivity and sustainability solutions for the outdoor environment. deliv
Slide 5: Q1 2024 Key Messages
Q1 2024 Key Messages The first quarter was in-line with our expectations, as we drove exceptional top-line growth for our underground and specialty 1 construction, and golf and grounds businesses, and continued to align production to demand trends The strength in our construction and golf and ground
Slide 6: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights (Year-over-year comparisons below) Decrease was primarily due to lower shipments of -12.8% zero-turn mowers, and snow and ice management products, partially offset by higher shipments of NET SALES underground and specialty construction products, DECLINE golf and grounds
Slide 7: Amplifying Maximum Productivity (AMP)
Amplifying Maximum Productivity (“AMP”) Major productivity initiative expected to result in more than $100M of incremental annual cost savings by fiscal 2027, a portion of which the company intends to prudently reinvest 3 Key Focus Areas for Transformation: Supply Base 1 Design-to-Value 2 Route-to-M
Slide 8: Q1 2024 Other Notable Highlights
Q1 2024 Other Notable Highlights The Toro Company is a leading Continued to Leverage Leadership Highlighted at provider of products Innovation Investments 2024 GCSAA Trade Show and solutions for the outdoor New Groundsmaster® e3200 Strength of golf end market was environment, including: out-front ro
Slide 9: Financials
Financials 9 Q1 2024 EARNINGS RELEASE THE TORO COMPANY
Slide 10: Q1 2024 Consolidated Results
Q1 2024 Consolidated Results Sustained strength in businesses with elevated order backlog offset by continued caution in homeowner markets and below-average snowfall REPORTED ADJUSTED* Change from Change from Q1 24 Q1 23 Q1 24 Q1 23 Q1 23 Q1 23 Net Sales $1,001.9M $1,148.8M -12.8% $1,001.9M $1,148.8
Slide 11: Professional Segment Results
Professional Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) -14.1% -150 bps 16.4% $880.7 14.9% $756.5 Q1 23 Q1 24 Q1 23 Q1 24 Decrease was primarily driven by lower shipments of zero-turn mowers, and snow and ice management products, partially Decrease w
Slide 12: Residential Segment Results
Residential Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) -9.3% -450 bps 14.3% $264.6 $240.1 9.8% Q1 23 Q1 24 Q1 23 Q1 24 Decrease was primarily driven by lower shipments of snow products and zero-turn mowers, partially offset by higher Decrease was lar
Slide 13: Strong Balance Sheet and Resilient Free Cash Flow
Strong Balance Sheet and Resilient Free Cash Flow Free Cash Flow* Free Cash Flow Conversion* Gross Debt to EBITDA Ratio* (Three months ended) (Three months ended) In millions Goal: 100% over time Target Range: Q1 23 Q1 24 Q1 23 Q1 24 1.0x- 2.0x ($91.1) -85.2% ($111.3) Q1 24 -171.5% Free cash flow wa
Slide 14: Effective Capital Deployment
Effective Capital Deployment Consistent Strategy FY2024 Comments Invested $19.1M to fund new product investments, Capital expenditures supporting organic growth advanced manufacturing technologies, and capacity for 1 with high returns growth Company continues to evaluate potential acquisitions with
Slide 15: Fiscal 2024 Guidance Reaffirmed
Fiscal 2024 Guidance Reaffirmed Net Sales Growth (%) Low Single-Digit Growth Adjusted Operating Earnings Margin* (%) Slightly Higher than 2023 Adjusted Diluted EPS* ($) $4.25 to $4.35 Capital Expenditures ($) ~$125M Depreciation & Amortization ($) $120M to $130M Interest Expense ~$59M Adjusted Effec
Slide 16: Investment Thesis
Investment Thesis Well positioned to win with deep expertise, 1 leading market share positions, and best-in- class distribution and service networks – all of which create high barriers to entry Attractive end markets, customer-centric 2 innovation, and steady replacement cycles drive future organic
Slide 17: Appendix
APPENDIX
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Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as information supplemental and in addition to the most directly comparable financial measures calculated and presented in accordance with U
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Slide 29: Gross Debt to EBITDA Ratio
Gross Debt to EBITDA Ratio ($ millions) Q2 23 Q3 23 Q4 23 Q1 24 Total Short Term Debt - - - - - Long Term Debt $1,041.2 $1,061.3 $1,031.5 $1,186.6 $1,186.6 Gross Debt $1,041.2 $1,061.3 $1,031.5 $1,186.6 $1,186.6 Earnings Before Income Taxes $210.8 ($28.6) $86.9 $80.1 $349.2 Interest Expense $14.7 $1