TORONTO, ONTARIO — (Marketwired) — 11/07/17 — Toromont Industries Ltd. (TSX: TIH) reported its financial results for the third quarter ended September 30, 2017.
“Results for the three and nine months ended September 30, 2017 were very strong for both the Equipment Group and CIMCO. This reflected the diversity of our business and solid execution from our decentralized operational and corporate teams, empowered to execute and deliver results even while part of the team was heavily focused on a major transaction,” said Scott J. Medhurst, President and Chief Executive Officer of Toromont Industries Ltd. “We are pleased and enthused that our efforts to expand Toromont–s geographic profile and create opportunities for future growth have been realized with the Hewitt acquisition and we look forward to developing on the strength of the combined organization.”
“The Hewitt acquisition marks a very important milestone for Toromont and we expect it to be beneficial to our customers, employees, suppliers and shareholders on many levels. We appreciate the confidence of our partner, Caterpillar, in endorsing this opportunity and we welcome the Hewitt team to the Toromont family. Integration efforts are already well under way,” continued Mr. Medhurst. “The long-term outlook for infrastructure spending remains positive from both the provincial and federal governments. We continue to see increased activity in the mining and power systems sectors. Performance at CIMCO continues to be positive. Growth in bookings across our organization and good backlog positions, together with the long-term product support growth trends and the diversity of markets in our new and significantly expanded territory, provide substantial opportunities for continued success.”
Quarterly Results Materials
The complete third quarter report for 2017, including MD&A and unaudited interim condensed consolidated financial statements, is available on our website at .
Quarterly Conference Call and Webcast
Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Wednesday, November 8, 2017 at 8:00 a.m. (ET). The call may be accessed by telephone at 1-800-377-0758 (toll free) or 416-340-2218 (Toronto area). A replay of the conference call will be available until midnight, Wednesday, November 22, 2017, by calling 1-800-408-3053 (toll free) or 905-694-9451 (Toronto area) and entering passcode 1869115#.
Both the live webcast and the replay of the quarterly conference call can be accessed at .
Advisory
Information in this press release that is not a historical fact is “forward-looking information”. Words such as “plans”, “intends”, “outlook”, “expects”, “anticipates”, “estimates”, “believes”, “likely”, “should”, “could”, “will”, “may” and similar expressions are intended to identify statements containing forward-looking information. Forward-looking information in this press release reflect current estimates, beliefs, and assumptions, which are based on Toromont–s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont–s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct. This press release also contains forward-looking statements about the subsequent acquisition of the businesses of Hewitt.
Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: business cycles, including general economic conditions in the countries in which Toromont operates; commodity price changes, including changes in the price of precious and base metals; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability of financing; potential environmental liabilities of the subsequently acquired businesses and changes to environmental regulation; failure to attract and retain key employees; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; and any requirement of Toromont to make contributions to the registered funded defined benefit pension plans, postemployment benefits plan or the multi-employer pension plans in which it participates or will participate upon assuming Hewitt–s obligations thereunder in excess of those currently contemplated. Risks and uncertainties related to the acquisition of the Hewitt operations could also cause the actual results to differ materially from the estimates beliefs and assumptions expressed or implied in the forward-looking statements, including but not limited to: changes in consumer and business confidence as a result of the change in ownership; the potential for liabilities assumed in the acquisition to exceed our estimates or for material undiscovered liabilities in the Hewitt business; the potential for third parties to terminate or alter their agreements or relationships with Toromont as a result of the acquisition; and risks related to integration of Hewitt operations with those of Toromont including cost of integration and ability to achieve the expected benefits. Readers are cautioned that the foregoing list of factors is not exhaustive.
Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking information and statements included in this press release. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out in the “Risks and Risk Management” and “Outlook” sections of Toromont–s most recent annual or interim Management Discussion and Analysis, as filed with Canadian securities regulators at or at . Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by statements containing forward-looking information.
Readers are cautioned not to place undue reliance on statements containing forward-looking information, which reflect Toromont–s expectations only as of the date of this press release, and not to use such information for anything other than their intended purpose. Toromont disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Toromont
Toromont Industries Ltd. operates through two business segments: the Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory – spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Quebec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Group includes industry leading rental operations, a complementary material handling business and an agricultural equipment business. CIMCO is a market leader in the design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Both segments offer comprehensive product support capabilities. This press release and more information about Toromont Industries Ltd. can be found at .
FOOTNOTES
(1) Direct transaction costs for advisory services were $1.8 million pre-tax ($0.02 EPS) in the quarter and $2.6 million pre-tax ($0.02 EPS) year-to-date. The significant increase in the share price post the announcement of the acquisition contributed to higher mark-to-market on Deferred Share Units which we estimate led to a higher mark-to-market adjustment of approximately $4.1 million pre-tax in both the quarter and year-to-date ($0.04 EPS). The gain on the sale of software in the third quarter of 2016 contributed $4.9 million pre-tax ($0.05 EPS) to the 2016 results.
Contacts:
Paul R. Jewer
Executive Vice President and Chief Financial Officer
Toromont Industries Ltd.
(416) 514-4790