Toromont Industries Ltd. · TSX:TIH
Toromont Industries — Q3 2010 Earnings Presentation
16 slides from Toromont Industries's earnings presentation, Nov 9, 2010
Slide 1: Creating Two Market Leaders
Creating Two Market Leaders Third Quarter Conference Call November 9, 2010
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements and information herein that are not historical facts are "forward-looking information". Words such as “plans”, “intends”, “outlook”, “expects”, “anticipates”, “estimates”, “believes”, "likely", “should”, "could", "will", "may" and similar expressions often ident
Slide 3: Speakers
Speakers Robert Ogilvie Chief Executive Officer, Toromont Paul Jewer VP Finance & CFO, Toromont Blair Goertzen President & CEO Enerflex Ltd. 3
Slide 4: Creating Two Market Leaders
Creating Two Market Leaders TODAY POST SPIN OFF TSX Listed TSX Listed TSX Listed EQUIPMENT COMPRESSION ENERGY GROUP INDUSTRIAL GROUP SERVICES 4
Slide 5: Results: Increased Booking Strength
Results: Increased Booking Strength Combined Equipment Group & Compression Group Bookings ($Millions) 393 81 265 264 254 582 46 63 106 312 323 346 218 191 159 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 Toromont Legacy Enerflex Source: Toromont MD&A Q3, 2010 Note: Certain Enerflex Systems Income Fund Bookings ha
Slide 6: Results: Q3
Results: Q3 Margin Margin Q3 2010 Q3 2009 $M except where otherwise indicated % % Revenue $619.4 $429.9 Gross Profit $132.3 21.4% $101.9 23.7% Selling & Admin Expense $86.5 14.0% $54.5 12.7% Interest Expense $7.3 $1.9 Operating Income $45.9 7.4% $47.4 11.0% Net Earnings $26.2 4.2% $31.9 7.4% Earning
Slide 7: Strong Financial Position
Strong Financial Position September 30, 2010 Solid cash flows leading to $86 M cash on hand at quarter-end $180 M available financing under credit agreements at quarter end, subsequently grows with refinancing of acquisition debt Repaid $100 million of acquisition debt in the quarter Q3 net
Slide 8: Financial Outlook
Financial Outlook Consolidated order backlogs grow to $809 M at Sept. 30 including record mining order at Toromont CAT Cost synergies still being realized and as business volume rises, relative cost base decreases Subsequent to quarter end $193 M order received at Enerflex for gas production &
Slide 9: The Transaction
The Transaction 1Share Separate Shares in 9
Slide 10: Strategic Rationale
Strategic Rationale Creates distinct market leaders with critical mass and momentum Sharper and fully aligned independent business and strategic focus Broader opportunities for growth in each business Enhanced business specific access to growth capital Continuity in Toromont leadership sty
Slide 11: Contributing Factors to Decision
Contributing Factors to Decision 1 Timing Makes Sense 2 Both Boards able to Recruit Directors with Knowledge and Skills that Match their Respective Businesses 3 Management incentive plans more aligned with shareholders 11
Slide 12: Significant Synergies
Significant Synergies Strengthened North American & International Presence to become a Global Leader Combined 2 Competitors Retained Best People Reduced Cost Base 12
Slide 13: The New Enerflex
The New Enerflex One of the world’s largest suppliers of natural gas production and processing equipment Well positioned in high growth U.S. shales and international CBM and LNG markets Sources of revenue highly diversified by geography, customer and application Growing order of backlog and
Slide 14: The New Toromont
The New Toromont One of the world’s larger Caterpillar equipment dealerships Leading equipment rental operation Leading industrial and recreational refrigeration company in Canada Highly diversified by customer & industry served Strong momentum in bookings & order backlog Long track reco
Slide 15: Going Forward: Enhancing Long-Term Value for Shareholders
Going Forward Enhancing Long-Term Value for Shareholders 15
Slide 16: Creating Two Market Leaders
Creating Two Market Leaders Third Quarter Conference Call November 9, 2010