Drives Quarter over Quarter Sequential Gross
Margin Improvement In a Dynamic Operating Environment
- First-quarter net sales up 6.8% compared to the same prior year
period, to $932.7 million; Professional segment net sales up 3.5%,
Residential segment net sales up 17.3%
- First-quarter reported and *adjusted diluted EPS of $0.66
- Gross margin results improved sequentially from the fourth
quarter of fiscal 2021, driven by increased net price realization
and enhanced operational performance; comparisons to the same
prior-year period were affected by increased inflationary pressures
and product availability constraints
The Toro Company (NYSE: TTC) today reported results for its
fiscal first-quarter ended January 28, 2022.
“We achieved solid financial results for the quarter and
continued to advance our strategic initiatives,” said Richard M.
Olson, chairman and chief executive officer. “Demand across our
businesses remained robust, while supply chain constraints and
inflationary pressures continued. Our team kept a sharp focus on
operational execution and serving our customers as they
collaborated with suppliers and channel partners. This focus
allowed us to drive productivity gains, achieve sequential margin
improvement and fund investments for a sustainable future, all of
which enabled us to extend our market leadership.
“We continued to invest in new products and acquisitions that
align with our strategic priorities and bolster our reputation for
best-in-class performance and technology. In January, our
acquisition of the Intimidator Group added the complementary
Spartan line of professional zero-turn mowers. Spartan is known for
its exceptional performance, features, durability, and distinctive
styling. The acquisition positions us to be an even stronger player
in the large and rapidly growing zero-turn mower market, enhancing
customer reach and geographic strength. More recently, at the GCSAA
golf industry show, we introduced our GeoLink Solutions Autonomous
Fairway Mower, which represents an important milestone in advancing
our autonomous vision.”
FIRST-QUARTER FISCAL 2022 FINANCIAL
HIGHLIGHTS
- Net sales of $932.7 million, up 6.8% from $873.0 million in the
first quarter of fiscal 2021.
- Net earnings of $69.5 million, down 37.5% from $111.3 million
in the first quarter of fiscal 2021; *adjusted net earnings of
$69.7 million, down 25.3% from $93.2 million in the first quarter
of fiscal 2021.
- Reported EPS of $0.66 per diluted share versus $1.02 per
diluted share in the first quarter of fiscal 2021; *adjusted EPS of
$0.66 per diluted share versus $0.85 per diluted share in the first
quarter of fiscal 2021.
- Utilized cash on hand and existing credit facilities to acquire
the Intimidator Group, and returned $106.5 million to shareholders
through regular dividends of $31.5 million and share repurchases of
$75.0 million.
OUTLOOK
“The Toro Company team worldwide continues to work diligently to
advance our strategic priorities and fulfill our purpose of helping
our customers enrich the beauty, productivity and sustainability of
the land,” added Olson. “These efforts are rooted in our
world-class innovation capabilities and enterprise-wide operational
excellence, which together, will help drive our sales momentum,
margin expansion, and enterprise value for all stakeholders. While
we are seeing improvements in our manufacturing performance, as
well as positive indicators in our supply chain, we acknowledge
that the recent geopolitical events may create additional
challenges. Our operational efficiency and market leadership
position us well to manage through this environment and take our
business to the next level.
“Our inspired team is focused on delivering results. The
strength of our purpose and culture, founded upon our commitment to
innovation, collaboration, and caring relationships, helps us
attract top talent. The Toro Company's focus on accelerating
profitable growth, driving productivity and operational excellence,
and empowering people sets us up to emerge from the current cycle
even stronger.”
The company is raising its full-year fiscal 2022 net sales
guidance to incorporate the Intimidator Group acquisition, and now
expects total net sales growth in the range of 12% to 14%. In light
of the current geopolitical environment, the company is holding its
*adjusted EPS guidance in the range of $3.90 to $4.10 per diluted
share. This guidance is based on current visibility, and reflects
expectations for continued strong demand and increasing net price
realization.
FIRST-QUARTER FISCAL 2022 SEGMENT
RESULTS
Professional Segment
- Professional segment net sales for the first quarter were
$672.9 million, up 3.5% compared with $650.2 million in the same
period last year. The increase was driven primarily by net price
realization, partially offset by lower volume in certain key
product categories due to product availability constraints.
- Professional segment earnings for the first quarter were $93.3
million, down 20.2% compared with $116.8 million in the same period
last year, and when expressed as a percentage of net sales, 13.9%,
down from 18.0% in the prior-year period. The decrease was largely
due to higher material, freight and manufacturing costs, partially
offset by increased net price realization.
Residential Segment
- Residential segment net sales for the first quarter were $255.4
million, up 17.3% compared with $217.7 million in the same period
last year. The increase was primarily due to net price realization
and higher shipments of zero-turn riding and walk power
mowers.
- Residential segment earnings for the first quarter were $31.8
million, down 1.1% compared with $32.1 million in the same period
last year, and when expressed as a percentage of net sales, 12.4%,
down from 14.7% in the prior-year period. The decrease was largely
driven by higher material and freight costs, partially offset by
increased net price realization and productivity improvements.
OPERATING RESULTS
Gross margin for the first quarter was 32.2%, compared with
36.1% for the same prior-year period. The decrease was primarily
due to higher material and freight costs, partially offset by
increased net price realization.
SG&A expense as a percentage of net sales for the first
quarter was 22.4% compared with 19.9% in the prior-year period. The
increase was primarily due to the favorable impact of a one-time
legal settlement in the prior year that did not reoccur, as well as
increased investments in research, engineering and marketing in the
current-year period.
Operating earnings as a percentage of net sales were 9.8% for
the first quarter, compared with 16.2% in the same prior-year
period. *Adjusted operating earnings as a percentage of net sales
for the first quarter were 9.9%, compared with 14.2% in the same
prior-year period.
Interest expense was down $0.5 million for the first quarter to
$7.0 million, driven by lower average debt levels and decreased
interest rates.
The reported effective tax rate for the first quarter was 20.2%,
compared with 18.1% for the same prior-year period. The reported
effective tax rate increase was primarily due to lower tax benefits
recorded as excess tax deductions for stock compensation. The
*adjusted effective tax rate for the first quarter was 20.9%,
compared with 21.5% in the first quarter of 2021.
*Non-GAAP financial measure. Please see the tables provided for
a reconciliation of historical non-GAAP financial measures to the
most comparable GAAP measures.
LIVE CONFERENCE CALL March 3, 2022 at 10:00 a.m. CST
www.thetorocompany.com/invest
The Toro Company will conduct its earnings call and webcast for
investors beginning at 10:00 a.m. CST on March 3, 2022. The webcast
will be available at www.thetorocompany.com/invest. Webcast
participants will need to complete a brief registration form and
should allocate extra time before the webcast begins to register
and, if necessary, install audio software.
About The Toro Company
The Toro Company (NYSE: TTC) is a leading worldwide provider of
innovative solutions for the outdoor environment including turf and
landscape maintenance, snow and ice management, underground utility
construction, rental and specialty construction, and irrigation and
outdoor lighting solutions. With sales of $4.0 billion in fiscal
2021, The Toro Company’s global presence extends to more than 125
countries through a family of brands that includes Toro, Ditch
Witch, Exmark, Spartan Mowers, BOSS Snowplow, Ventrac, American
Augers, Trencor, Pope, Subsite Electronics, HammerHead, Radius HDD,
Perrot, Hayter, Unique Lighting Systems, Irritrol, and Lawn-Boy.
Through constant innovation and caring relationships built on trust
and integrity, The Toro Company and its family of brands have built
a legacy of excellence by helping customers work on golf courses,
sports fields, construction sites, public green spaces, commercial
and residential properties and agricultural operations. For more
information, visit www.thetorocompany.com.
Use of Non-GAAP Financial Information
This press release and our related earnings call reference
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.S. GAAP. The non-GAAP
financial measures included within this press release and our
related earnings call that are utilized as measures of our
operating performance consist of operating earnings, earnings
before income taxes, net earnings, net earnings per diluted share,
and the effective tax rate, each as adjusted. The non-GAAP
financial measures included within this press release and our
related earnings call that are utilized as measures of our
liquidity consist of free cash flow and free cash flow conversion
percentage.
The Toro Company uses these non-GAAP financial measures in
making operating decisions and assessing liquidity because it
believes these non-GAAP financial measures provide meaningful
supplemental information regarding core operational performance and
cash flows, as a measure of the company's liquidity, and provide
the company with a better understanding of how to allocate
resources to both ongoing and prospective business initiatives.
Additionally, these non-GAAP financial measures facilitate the
company's internal comparisons for both historical operating
results and competitors' operating results by factoring out
potential differences caused by charges and benefits not related to
its regular, ongoing business, including, without limitation,
certain non-cash, large, and/or unpredictable charges and benefits;
acquisitions and dispositions; legal judgments, settlements, or
other matters; and tax positions. The company believes that these
non-GAAP financial measures, when considered in conjunction with
the financial measures prepared in accordance with U.S. GAAP,
provide investors with useful supplemental financial information to
better understand its core operational performance and cash
flows.
Reconciliations of historical non-GAAP financial measures to the
most comparable U.S. GAAP financial measures are included in the
financial tables contained in this press release. These non-GAAP
financial measures, however, should not be considered superior to,
as a substitute for, or as an alternative to, and should be
considered in conjunction with, the U.S. GAAP financial measures
included within this press release and the company’s related
earnings call. These non-GAAP financial measures may differ from
similar measures used by other companies.
The Toro Company cannot provide quantitative reconciliations of
forward-looking non-GAAP financial measures provided herein or in
its related earnings call without unreasonable effort because the
combined effect and timing of recognition of potential charges or
gains is inherently uncertain and difficult to predict. In
addition, since any adjustments could have a substantial effect on
U.S. GAAP measures of financial performance, such quantitative
reconciliations would imply a degree of precision and certainty
that could be confusing to investors. From a qualitative
perspective, it is anticipated that the differences between the
forward-looking non-GAAP financial measures and the most directly
comparable GAAP financial measure will consist of items similar to
those described in the financial tables later in this release,
including, for example and without limitation, certain non-cash,
large, and/or unpredictable charges and benefits; acquisitions and
dispositions; legal judgments, settlements, or other matters; and
tax positions.
Forward-Looking Statements
This news release 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 often can be identified by words
such as “expect,” “strive,” “looking ahead,” “outlook,” “guidance,”
“forecast,” “goal,” “optimistic,” “encourage,” “anticipate,”
“continue,” “plan,” “estimate,” “project,” “target,” “improve,”
“believe,” “become,” “should,” “could,” “will,” “would,”
“possible,” “promise,” “may,” “likely,” “intend,” “can,” “seek,”
“pursue,” “potential,” “pro forma,” variations of such words or the
negative thereof, and similar expressions or future dates.
Forward-looking statements involve risks and uncertainties that
could cause actual events and results to differ materially from
those projected or implied. Forward-looking statements in this
release include the company’s fiscal 2022 financial guidance,
expectations that supply chain and inflationary pressures will
normalize over time, and for continued strong demand and increasing
net price realization and slight improvement in the operating
environment in the second half of the year. Particular risks and
uncertainties that may affect the company’s operating results or
financial position include: COVID-19 related factors, risks, and
challenges; adverse worldwide economic conditions, including
inflationary pressures; disruption at or in proximity to its
facilities or in its manufacturing or other operations, or those in
its distribution channel customers, mass retailers or home centers
where its products are sold, or suppliers; fluctuations in the cost
and availability of commodities, components, parts, and
accessories, including steel, engines, hydraulics and resins; the
effect of abnormal weather patterns; the effect of natural
disasters, social unrest, war and global pandemics; the level of
growth or contraction in its key markets; customer, government and
municipal revenue, budget, spending levels and cash conservation
efforts; loss of any substantial customer; inventory adjustments or
changes in purchasing patterns by customers; the company’s ability
to develop and achieve market acceptance for new products;
increased competition; the risks attendant to international
relations, operations and markets; foreign currency exchange rate
fluctuations; financial viability of and/or relationships with the
company’s distribution channel partners; risks associated with
acquisitions and dispositions, including the company's recent
acquisition of Intimidator Group; impairment of goodwill or other
intangible assets; impacts of any restructuring activities;
management of alliances or joint ventures, including Red Iron
Acceptance, LLC; impact of laws, regulations and standards,
consumer product safety, accounting, taxation, trade, tariffs
and/or antidumping and countervailing duties petitions, healthcare,
and environmental, health and safety matters; unforeseen product
quality problems; loss of or changes in executive management or key
employees; the occurrence of litigation or claims, including those
involving intellectual property or product liability matters;
impact of increased scrutiny on its environmental, social, and
governance practices; and other risks and uncertainties described
in the company’s most recent annual report on Form 10-K, subsequent
quarterly reports on Form 10-Q, or current reports on Form 8-K, and
other filings with the Securities and Exchange Commission. The
company makes no commitment to revise or update any forward-looking
statements in order to reflect events or circumstances occurring or
existing after the date any forward-looking statement is made.
(Financial tables follow)
THE TORO COMPANY AND
SUBSIDIARIES
Condensed Consolidated
Statements of Earnings (Unaudited)
(Dollars and shares in
thousands, except per-share data)
Three Months Ended
January 28, 2022
January 29, 2021
Net sales
$
932,650
$
872,986
Cost of sales
632,174
557,950
Gross profit
300,476
315,036
Gross margin
32.2
%
36.1
%
Selling, general and administrative
expense
208,850
173,571
Operating earnings
91,626
141,465
Interest expense
(7,013
)
(7,522
)
Other income, net
2,534
1,883
Earnings before income taxes
87,147
135,826
Provision for income taxes
17,637
24,545
Net earnings
$
69,510
$
111,281
Basic net earnings per share of common
stock
$
0.66
$
1.03
Diluted net earnings per share of common
stock
$
0.66
$
1.02
Weighted-average number of shares of
common stock outstanding — Basic
105,037
108,122
Weighted-average number of shares of
common stock outstanding — Diluted
106,048
109,194
Segment Data
(Unaudited)
(Dollars in thousands)
Three Months Ended
Segment Net Sales
January 28, 2022
January 29, 2021
Professional
$
672,885
$
650,223
Residential
255,402
217,700
Other
4,363
5,063
Total net sales*
$
932,650
$
872,986
*Includes international net sales of:
$
194,986
$
191,681
Three Months Ended
Segment Earnings (Loss)
January 28, 2022
January 29, 2021
Professional
$
93,272
$
116,816
Residential
31,760
32,108
Other
(37,885
)
(13,098
)
Total segment earnings
$
87,147
$
135,826
THE TORO COMPANY AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets (Unaudited)
(Dollars in thousands)
January 28, 2022
January 29, 2021
October 31,
2021
ASSETS
Cash and cash equivalents
$
192,959
$
433,394
$
405,612
Receivables, net
366,270
306,865
310,279
Inventories, net
832,072
675,307
738,170
Prepaid expenses and other current
assets
45,962
41,177
35,124
Total current assets
1,437,263
1,456,743
1,489,185
Property, plant, and equipment, net
507,549
457,147
487,731
Goodwill
576,940
422,163
421,680
Other intangible assets, net
600,797
410,587
420,041
Right-of-use assets
78,306
75,467
66,990
Investment in finance affiliate
24,119
22,955
20,671
Deferred income taxes
3,938
9,658
5,800
Other assets
24,133
20,418
24,042
Total assets
$
3,253,045
$
2,875,138
$
2,936,140
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt
$
100,000
$
9,992
$
—
Accounts payable
474,483
364,361
503,116
Accrued liabilities
395,739
429,820
419,620
Short-term lease liabilities
15,842
15,368
14,283
Total current liabilities
986,064
819,541
937,019
Long-term debt, less current portion
991,354
691,356
691,242
Long-term lease liabilities
65,760
63,469
55,752
Deferred income taxes
50,382
71,970
50,397
Other long-term liabilities
39,936
49,080
50,598
Stockholders’ equity:
Preferred stock
—
—
—
Common stock
104,529
107,613
105,206
Retained earnings
1,040,634
1,104,285
1,071,922
Accumulated other comprehensive loss
(25,614
)
(32,176
)
(25,996
)
Total stockholders’ equity
1,119,549
1,179,722
1,151,132
Total liabilities and stockholders’
equity
$
3,253,045
$
2,875,138
$
2,936,140
THE TORO COMPANY AND
SUBSIDIARIES
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(Dollars in thousands)
Three Months Ended
January 28, 2022
January 29, 2021
Cash flows from operating activities:
Net earnings
$
69,510
$
111,281
Adjustments to reconcile net earnings to
net cash (used in) provided by operating activities:
Non-cash income from finance affiliate
(1,398
)
(1,283
)
Contributions to finance affiliate,
net
(2,050
)
(1,927
)
Depreciation of property, plant and
equipment
18,487
19,173
Amortization of other intangible
assets
6,456
4,894
Compensation cost for stock-based
compensation awards
5,225
4,516
Deferred income taxes
—
1,232
Other
146
1,080
Changes in operating assets and
liabilities, net of the effect of acquisitions:
Receivables, net
(50,599
)
(46,159
)
Inventories, net
(59,171
)
(25,594
)
Prepaid expenses and other assets
(4,187
)
(2,794
)
Accounts payable, accrued liabilities, and
other liabilities
(72,462
)
30,606
Net cash (used in) provided by operating
activities
(90,043
)
95,025
Cash flows from investing activities:
Purchases of property, plant and
equipment
(11,903
)
(10,504
)
Business combinations, net of cash
acquired
(401,494
)
—
Asset acquisition, net of cash
acquired
—
(4,542
)
Proceeds from asset disposals
26
74
Proceeds from sale of a business
—
12,886
Net cash used in investing activities
(413,371
)
(2,086
)
Cash flows from financing activities:
Borrowings under debt arrangements
400,000
—
Repayments under debt arrangements
—
(90,000
)
Proceeds from exercise of stock
options
1,150
7,714
Payments of withholding taxes for stock
awards
(1,381
)
(941
)
Purchases of TTC common stock
(75,000
)
(31,351
)
Dividends paid on TTC common stock
(31,469
)
(28,411
)
Net cash provided by (used in) financing
activities
293,300
(142,989
)
Effect of exchange rates on cash and cash
equivalents
(2,539
)
3,552
Net decrease in cash and cash
equivalents
(212,653
)
(46,498
)
Cash and cash equivalents as of the
beginning of the fiscal period
405,612
479,892
Cash and cash equivalents as of the end of
the fiscal period
$
192,959
$
433,394
THE TORO COMPANY AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands, except per-share data)
The company has provided financial measures that are not
calculated or presented in accordance with United States ("U.S.")
generally accepted accounting principles ("GAAP") ("non-GAAP
financial measures"), as information supplemental and in addition
to the most directly comparable financial measures presented in the
accompanying press release that are calculated and presented in
accordance with U.S. GAAP. The company uses these non-GAAP
financial measures in making operating decisions and assessing
liquidity because the company believes they provide meaningful
supplemental information regarding the company's core operational
performance and cash flows, as a measure of the company's
liquidity, and provide the company with a better understanding of
how to allocate resources to both ongoing and prospective business
initiatives. Additionally, these non-GAAP financial measures
facilitate management's internal comparisons to both the company's
historical operating results and to the company's competitors'
operating results by factoring out potential differences caused by
charges and benefits not related to the company's regular, ongoing
business, including, without limitation, certain non-cash, large,
and/or unpredictable charges and benefits; acquisitions or
dispositions; legal judgments, settlements or other matters; and
tax positions. The company believes that such non-GAAP financial
measures, when considered in conjunction with the company's
financial measures prepared in accordance with U.S. GAAP, provide
investors with useful supplemental financial information to better
understand the company's core operational performance and cash
flows. These non-GAAP financial measures should not be considered
superior to, as a substitute for, or as an alternative to, and
should be considered in conjunction with, the most directly
comparable U.S. GAAP financial measures presented in the
accompanying press release. The non-GAAP financial measures
presented in the accompanying press release may differ from similar
measures used by other companies.
Reconciliation of Non-GAAP Financial Performance
Measures
The following table provides a reconciliation of financial
performance measures calculated and reported in accordance with
U.S. GAAP to the most directly comparable non-GAAP financial
performance measures included within the accompanying press release
for the three month periods ended January 28, 2022 and January 29,
2021:
Three Months Ended
January 28, 2022
January 29, 2021
Operating earnings
$
91,626
$
141,465
Acquisition-related costs1
1,016
—
Litigation settlement, net2
—
(17,075
)
Non-GAAP operating earnings
$
92,642
$
124,390
Earnings before income taxes
$
87,147
$
135,826
Acquisition-related costs1
1,016
—
Litigation settlement, net2
—
(17,075
)
Non-GAAP earnings before income taxes
$
88,163
$
118,751
Net earnings
$
69,510
$
111,281
Acquisition-related costs1
804
—
Litigation settlement, net2
—
(13,455
)
Tax impact of stock-based
compensation3
(620
)
(4,578
)
Non-GAAP net earnings
$
69,694
$
93,248
Net earnings per diluted share
$
0.66
$
1.02
Acquisition-related costs1
0.01
—
Litigation settlement, net2
—
(0.13
)
Tax impact of stock-based
compensation3
(0.01
)
(0.04
)
Non-GAAP net earnings per diluted
share
$
0.66
$
0.85
Effective tax rate
20.2
%
18.1
%
Tax impact of stock-based
compensation3
0.7
%
3.4
%
Non-GAAP effective tax rate
20.9
%
21.5
%
1
On January 13, 2022, the company
completed the acquisition of Intimidator Group. Acquisition-related
costs for the three month period ended January 28, 2022 represent
transaction and integration costs incurred for the company's
acquisition of Intimidator Group. No acquisition-related costs were
incurred during the three month period ended January 29, 2021.
2
On November 19, 2020, Exmark
Manufacturing Company Incorporated ("Exmark"), a wholly-owned
subsidiary of TTC, and Briggs & Stratton Corporation ("BGG")
entered into a settlement agreement ("Settlement Agreement")
relating to the decade-long patent infringement litigation that
Exmark originally filed in May 2010 against Briggs & Stratton
Power Products Group, LLC ("BSPPG"), a former wholly-owned
subsidiary of BGG (Case No. 8:10CV187, U.S. District Court for the
District of Nebraska) (the "Infringement Action"). The Settlement
Agreement provided, among other things, that upon approval by the
bankruptcy court, and such approval becoming final and
nonappealable, BGG agreed to pay Exmark $33.65 million ("Settlement
Amount"). During January 2021, the first quarter of fiscal 2021,
the Settlement Amount was received by Exmark in connection with the
settlement of the Infringement Action and at such time, the
underlying events and contingencies associated with the gain
contingency related to the Infringement Action were satisfied. As
such, the company recognized in selling, general and administrative
expense within the Consolidated Statements of Earnings during the
first quarter of fiscal 2021 (i) the gain associated with the
Infringement Action and (ii) a corresponding expense related to the
contingent fee arrangement with the company's external legal
counsel customary in patent infringement cases equal to
approximately 50 percent of the Settlement Amount. Accordingly,
litigation settlement, net represents the net amount recorded
within selling, general and administrative expense in the Condensed
Consolidated Statements of Earnings for the settlement of the
Infringement Action during the three month period ended January 29,
2021. No amounts were recorded for litigation settlement, net
during the three month period ended January 28, 2022.
3
The accounting standards
codification guidance governing employee stock-based compensation
requires that any excess tax deduction for stock-based compensation
be immediately recorded within income tax expense. Employee
stock-based compensation activity, including the exercise of stock
options under The Toro Company Amended and Restated 2010 Equity and
Incentive Plan, as amended, can be unpredictable and can
significantly impact the company's net earnings, net earnings per
diluted share, and effective tax rate. These amounts represent the
discrete tax benefits recorded as excess tax deductions for
stock-based compensation during the three month periods ended
January 28, 2022 and January 29, 2021.
Reconciliation of Non-GAAP Liquidity Measures
The company defines non-GAAP free cash flow as net cash provided
by operating activities less purchases of property, plant and
equipment. Non-GAAP free cash flow conversion percentage represents
non-GAAP free cash flow as a percentage of net earnings. The
company considers non-GAAP free cash flow and non-GAAP free cash
flow conversion percentage to be liquidity measures that provide
useful information to management and investors about the company's
ability to convert net earnings into cash resources that can be
used to pursue opportunities to enhance shareholder value, fund
ongoing and prospective business initiatives, and strengthen the
company's Consolidated Balance Sheets, after reinvesting in
necessary capital expenditures required to maintain and grow the
company's business. The following table provides a reconciliation
of net cash provided by operating activities, the most directly
comparable GAAP financial measure, to non-GAAP free cash flow for
the three month periods ended January 28, 2022 and January 29,
2021:
Three Months Ended
(Dollars in thousands)
January 28, 2022
January 29, 2021
Net cash (used in) provided by operating
activities
$
(90,043
)
$
95,025
Less: Purchases of property, plant and
equipment
11,903
10,504
Non-GAAP free cash flow
(101,946
)
84,521
Net earnings
$
69,510
$
111,281
Non-GAAP free cash flow conversion
percentage
(146.7
) %
76.0
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220303005206/en/
Investor Relations Julie Kerekes Treasurer and Sr.
Managing Director, Global Tax and Investor Relations (952)
887-8846, julie.kerekes@toro.com
Media Relations Branden Happel Senior Manager, Public
Relations (952) 887-8930, branden.happel@toro.com
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