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Toromont Announces Results for the First Quarter of 2013 and Regular Quarterly Dividend

Toromont Announces Results for the First Quarter of 2013 and Regular Quarterly 
Dividend 
TORONTO, ONTARIO -- (Marketwired) -- 04/24/13 -- Toromont Industries
Ltd. (TSX:TIH) today reported financial results for the three-month
period ended March 31, 2013, with revenues up 11% and net earnings up
5% compared to the first quarter of 2012. 


 
----------------------------------------------------------------------------
                                                                            
                                                Three months ended March 31 
                                         -----------------------------------
millions, except per share amounts               2013        2012  % change 
----------------------------------------------------------------------------
                                                                            
Revenues                                  $     313.1 $     281.5        11%
Operating income                          $      25.4 $      24.1         5%
Net earnings                              $      17.8 $      17.0         5%
Earnings per share - basic                $      0.23 $      0.22         5%
                                                                            
----------------------------------------------------------------------------

 
"We are pleased with results for the first quarter, traditionally our
weakest due to seasonality. Revenues were up 11% from a year ago,
fueled by increased equipment sales, rentals and product support,"
said Scott J. Medhurst, President and Chief Executive Officer of
Toromont Industries Ltd. "Earnings also increased, a testimony to our
strong market position and product diversity following a period of
heavy contributions from mining equipment sales. Gross margins were
dampened by competitive equipment markets driven by a global surplus
of new equipment, and additional costs associated with the growth of
the product support organization." 
Highlights:  


 
--  Equipment Group revenues for the quarter were $267 million, up 9% from
    2012 on higher new equipment sales, product support and rentals.
    Operating income increased 7% compared to last year on the higher
    revenues. Heavy construction and power systems reported st
rong activity
    levels. 
 
--  Equipment Group backlogs were $147 million at March 31, 2013 compared to
    $128 million at December 31, 2012 and $260 million at this time last
    year. Backlogs have declined from this time last year due to significant
    mining deliveries during 2012 and improved equipment availability.
    Bookings were $145 million in the first quarter of 2013 compared to $155
    million for the same period last year.  
 
--  CIMCO revenues of $46 million in the quarter were 30% higher than a year
    ago. Traditionally, results at CIMCO are softer in the first quarter due
    to the seasonality of construction schedules. Operating income decreased
    18% in the quarter on lower gross margins resulting from tighter bids,
    more favourable contract close-outs last year, and the mix of product
    support revenues to total. Given this normal seasonal pattern, it was
    still a good first quarter and CIMCO's third best for profitability.  
 
--  CIMCO bookings in the first quarter of 2013 were $34 million, down 55%
    versus the first quarter of 2012. Excluding orders from Maple Leaf Foods
    totalling a record $50 million in the prior year, bookings were 35%
    higher than 2012 on stronger industrial activity. Backlogs were $107
    million at March 31, 2013.  
 
--  Net earnings were $17.8 million in the quarter ($0.23 per share basic),
    up 5% from $17.0 million reported last year, reflecting higher revenues
    and good expense control, partially offset by lower gross margins. 
 
--  Equipment Group inventory levels have been a focus this year. These
    inventories were reduced $46 million from a year ago and $3 million from
    December 31, 2012. The reduction from year-end represents continued
    focus as the normal seasonal trend would have levels increasing during
    the first quarter. 
 
--  Total debt net of cash to total capitalization was 26%, well within
    stated capital targets. 
 
--  The Board of Directors announced the regular quarterly dividend of 13
    cents per share on outstanding common shares, payable July 2, 2013 to
    shareholders of record on June 13, 2013. The regular quarterly dividend
    was previously increased 8% to 13 cents per share effective with the
    dividend paid April 1, 2013.  

 
"We are encouraged with the results for the first quarter of the
year, our best ever first quarter. Activity levels and sentiment in
the core construction markets, rental segments and improved
performance at Power Systems were healthy," continued Mr. Medhurst.
"In the short term, mining will not repeat the substantial
contribution to results achieved last year, however growing product
support and rental activity are expected to provide a measure of
counter balance. At CIMCO, recreational bookings recovered to more
normal levels and the order backlog position bodes well for
performance this year." 
Annual and Special Meeting of Shareholders 
The Company will hold its Annual and Special Meeting of Shareholders
on April 25, 2013, at 10 a.m. (ET) in the Imperial Room at the
Fairmont Royal York Hotel in Toronto, Ontario. The meeting will also
be available via live audio webcast at www.toromont.com. 
Quarterly Results Materials  
The complete first quarter report for 2013, including MD&A and
unaudited interim condensed financial statements, is available on our
website at www.toromont.com. 
Quarterly Conference Call and Webcast  
Interested parties are invited to join the quarterly conference call
with investment analysts, in listen-only mode, on Wednesday, April
24, 2013 at 2:00 p.m. (ET). The call may be accessed by telephone at
1-866-226-1792 (toll free) or 416-340-2216 (Toronto area). A replay
of the conference call will be available until Wednesday, May 8, 2013
by calling 1-800-408-3053 or 905-694-9451 and quoting passcode
3052783. 
Both the live webcast and the replay of the quarterly conference call
can be accessed at www.toromont.com. 
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 is
based on current objectives, strategies, expectations and assumptions
which management considers appropriate and reasonable at the time
including, but not limited to, general economic and industry growth
rates, commodity prices, currency exchange and interest rates,
competitive intensity and shareholder and regulatory approvals.  
By its nature, forward-looking information is subject to risks and
uncertainties which may be beyond the ability of Toromont to control
or predict. The actual results, performance or achievements of
Toromont could differ materially from those expressed or implied by
forward-looking information. Factors that could cause actual results,
performance, achievements or events to differ from current
expectations include, among others, risks and uncertainties related
to: business cycles, including general economic conditions in the
countries in which Toromont operates; com
modity 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; and, environmental
regulation.  
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 www.sedar.com and may also be found at
www.toromont.com. 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 that are included in this
press release, which are made 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 or intention to
update or revise any forward-looking information, whether as a result
of new information, future events or otherwise, except as required by
applicable securities legislation. 
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 in
addition to industry leading rental operations. 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 can be found at
www.toromont.com. 


 
TOROMONT INDUSTRIES LTD.                                                    
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS                            
(Unaudited)                                                                 
                                                         Three months ended 
                                                                   March 31 
($ thousands, except share amounts)                      2013          2012 
----------------------------------------------------------------------------
                                                                   Restated 
                                                                            
Revenues                                         $    313,132  $    281,459 
Cost of goods sold                                    237,213       206,214 
----------------------------------------------------------------------------
Gross profit                                           75,919        75,245 
Selling and administrative expenses                    50,568        51,177 
----------------------------------------------------------------------------
Operating income                                       25,351        24,068 
Interest expense                                        2,102         2,121 
Interest and investment income                         (1,192)       (1,195)
----------------------------------------------------------------------------
Income before income taxes                             24,441        23,142 
Income taxes                                            6,593         6,172 
----------------------------------------------------------------------------
Net Earnings                                     $     17,848  $     16,970 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share                                                          
  Basic                                          $       0.23  $       0.22 
  Diluted                                        $       0.23  $       0.22 
                                                                            
Weighted average number of shares outstanding                               
  Basic                                            76,495,141    76,785,655 
  Diluted                                          77,088,916    77,474,755 

Contacts:
Toromont Industries Ltd.
Paul R. Jewer
Executive Vice President and Chief Financial Officer
(416) 667-5638
www.toromont.com