Toro Company (the) · NYSE:TTC
Toro Company (the) — Q1 2023 Earnings Presentation
27 slides from Toro Company (the)'s earnings presentation, Mar 9, 2023
Slide 1: The Toro Company Q1 2023 Earnings Release
THE TORO COMPANY Q1 2023 EARNINGS RELEASE March 9, 2023
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 2023 EARNINGS RELEASE THE TORO COMPANY
Slide 4: The Toro Company: Built on Strong Relationships and Our Legacy of Excellence
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 2023 Key Messages
Q1 2023 Key Messages Delivered top-line growth in both segments, as demand for our 1 innovative products remained strong, especially in key professional markets Supply chain continued to improve which, combined with our 2 disciplined operational execution, drove manufacturing efficiencies and profes
Slide 6: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights (Year-over-year comparisons below) Driven primarily by higher shipments of +23.2% products broadly across the Professional NET SALES segment, net price realization, and incremental GROWTH revenue from the Intimidator Group acquisition Driven primarily by net price realiz
Slide 7: Q1 2023 Other Notable Highlights
Q1 2023 Other Notable Highlights The Toro Company is a leading Suite of Products with Also Leveraging Flex- provider of products HyperCell System Grows Force 60V Platform and solutions for the outdoor Providing all-day run time for Toro Featured in new Revolution Series environment, including: and E
Slide 8: Financials
Financials 8 Q1 2023 EARNINGS RELEASE THE TORO COMPANY
Slide 9: Q1 2023 Consolidated Results
Q1 2023 Consolidated Results Net price realization, Professional segment volume growth, and productivity improvements drove record results REPORTED ADJUSTED* Change from Change from Q1 23 Q1 22 Q1 23 Q1 22 Q1 22 Q1 22 Net Sales $1,148.8M $932.7M +23.2% $1,148.8M $932.7M +23.2% Gross Profit ($) $395.
Slide 10: Professional Segment Results
Professional Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) +30.9% +250 bps $880.7 16.4% 13.9% $672.9 Q1 22 Q1 23 Q1 22 Q1 23 Increase was primarily due to net price realization, net sales Increase was primarily driven by higher shipments of products lev
Slide 11: Residential Segment Results
Residential Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) +3.6% +190 bps 14.3% 12.4% $264.6 $255.4 Q1 22 Q1 23 Q1 22 Q1 23 Increase was primarily driven by net price realization and higher Increase was primarily driven by net price realization and shipm
Slide 12: 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 1.5x Q1 22 Q1 23 Q1 22 Q1 23 Target Range: 1.0x- 2.0x ($91.1) -85.2% ($101.9) -146.7% Q1 23 Free cash flo
Slide 13: Effective Capital Deployment
Effective Capital Deployment Consistent Strategy Q1 2023 Comments Invested $29.3M to fund new product investments, Capital expenditures supporting organic growth advanced manufacturing technologies, and capacity for 1 with high returns growth Celebrated one-year anniversary of The Intimidator Group
Slide 14: Reiterate Fiscal 2023 Guidance
Reiterate Fiscal 2023 Guidance Net Sales Growth (%) 7% to 10% Adjusted Operating Earnings Margin* (%) Higher than Fiscal 2022 Adjusted Diluted EPS* ($) $4.70 to $4.90 Capital Expenditures ($) $150M to $175M Depreciation & Amortization ($) ~$130M Interest Expense ~$55M Adjusted Effective Tax Rate* (%
Slide 15: 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 Favorable macro factors, steady replacement 2 cycle and customer-centric innovation drive future organic g
Slide 16: Appendix
APPENDIX
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Slide 23: 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 27: Gross Debt to EBITDA Ratio
Gross Debt to EBITDA Ratio Q2 22 Q3 22 Q4 22 Q1 23 Total Short Term Debt $100,000 $65,000 - - - Long Term Debt $990,970 $990,616 $990,768 $1,091,015 $1,091,015 Gross Debt $1,090,970 $1,055,616 $990,768 $1,091,015 $1,091,015 Earnings Before Income Taxes $165,056 $157,091 $143,252 $131,314 $596,713 In