Toro Company (the) · NYSE:TTC
Toro Company (the) — Q2 2023 Earnings Presentation
27 slides from Toro Company (the)'s earnings presentation, Jun 19, 2023
Slide 1: The Toro Company Q2 2023 Earnings Release
THE TORO COMPANY Q2 2023 EARNINGS RELEASE June 8, 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 Q2 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: Q2 2023 Key Messages
Q2 2023 Key Messages Delivered record top and bottom-line growth, driven by strong 1 Professional segment performance and continued production improvements Professional segment achieved broad-based volume gains and increased profitability, driven by continued demand, steady supply 2 chain improvemen
Slide 6: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights (Year-over-year comparisons below) Driven primarily by higher shipments of +7.2% products broadly across the Professional segment and net price realization, partially NET SALES offset by lower shipments in the Residential GROWTH segment +340 bps Driven primarily by net p
Slide 7: Q2 2023 Other Notable Highlights
Q2 2023 Other Notable Highlights The Toro Company is a leading provider of products and solutions for the outdoor environment, including: Ever-Expanding Flex- Long-Standing Market Building Stronger Force 60V Lineup Leader in Golf Communities Turf & landscape maintenance Two of our 60V products were
Slide 8: Financials
Financials 8 Q2 2023 EARNINGS RELEASE THE TORO COMPANY
Slide 9: Q2 2023 Consolidated Results
Q2 2023 Consolidated Results Strong Professional Segment Performance and Continued Production Improvements REPORTED ADJUSTED* Change from Change from Q2 23 Q2 22 Q2 23 Q2 22 Q2 22 Q2 22 Net Sales $1,339.3M $1,249.5M +7.2% $1,339.3M $1,249.5M +7.2% Gross Profit ($) $479.7M $405.4M +18.3% $479.7M $406
Slide 10: Professional Segment Results
Professional Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) +15.4% +340 bps $1,068.7 21.3% $925.8 17.9% Q2 22 Q2 23 Q2 22 Q2 23 Increase was primarily due to net price realization, favorable Increase was primarily driven by higher shipments of products p
Slide 11: Residential Segment Results
Residential Segment Results NET SALES SEGMENT EARNINGS RATE (in millions) (as a percentage of net sales) (16.8%) (300 bps) $319.7 11.6% $265.8 8.6% Q2 22 Q2 23 Q2 22 Q2 23 Decrease was primarily driven by lower sales volume, higher Decrease was primarily driven by lower shipments of products marketi
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* (Six months ended) (Six months ended) In millions Goal: 100% over time 1.3x $6.9 Target Range: 1.0x- 3.4% 2.0x 1H 22 1H 23 1H 22 1H 23 ($1.3) -0.5% Q2 23 Free cash flow was a use
Slide 13: Effective Capital Deployment
Effective Capital Deployment Consistent Strategy 1H 2023 Comments Capital expenditures supporting organic growth Invested $63M to fund new product investments, advanced 1 with high returns manufacturing technologies, and capacity for growth Celebrated one-year anniversary of The Intimidator Group St
Slide 14: Updated Fiscal 2023 Guidance
Updated Fiscal 2023 Guidance Guidance 3/9/23 Guidance 6/8/23 Net Sales Growth (%) 7% to 10% 7% to 8% Adjusted Operating Earnings Margin* (%) Higher than Fiscal 2022 Higher than Fiscal 2022 Adjusted Diluted EPS* ($) $4.70 to $4.90 $4.70 to $4.80 Capital Expenditures ($) $150M to $175M ~$150M Deprecia
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
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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 Q3 22 Q4 22 Q1 23 Q2 23 Total Short Term Debt $65,000 - - - - Long Term Debt $990,616 $990,768 $1,091,015 $1,041,162 $1,041,162 Gross Debt $1,055,616 $990,768 $1,091,015 $1,041,162 $1,041,162 Earnings Before Income Taxes $157,091 $143,252 $131,314 $210,819 $642,476 Interes