Financial Performance - Third-quarter net sales reached $1.16 billion, a 6.9% increase from $1.08 billion in the same period of fiscal 2023[1]. - Reported diluted EPS for the third quarter was $1.14, up from $(0.14) in the same period last year, while adjusted diluted EPS was $1.18, a 24.2% increase from $0.95[1][5]. - The professional segment net sales were $880.9 million, down 1.7% from $896.3 million, primarily due to lower shipments of snow and ice management products[6]. - The residential segment net sales increased by 52.6% to $267.5 million, driven by higher shipments to the mass channel[7]. - Gross margin for the third quarter was 34.8%, up from 34.4% in the same prior-year period, attributed to productivity improvements and net price realization[8]. - Operating earnings for the three months ended August 2, 2024, were $148.1 million, a recovery from an operating loss of $19.1 million in the same period last year[17]. - Net earnings for the nine months ended August 2, 2024, were $329.0 million, compared to $259.4 million for the same period last year, representing an increase of 27.0%[17]. - Adjusted net earnings for the nine months ended August 2, 2024, were $337.5 million, down from $369.4 million for the same period in 2023[21]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended August 2, 2024, was $329.8 million, significantly higher than $154.7 million for the same period in 2023[20]. - Net cash used in investing activities decreased to $43.4 million for the nine months ended August 2, 2024, from $119.2 million in the same period of 2023[20]. - Net cash used in financing activities increased to $260.5 million for the nine months ended August 2, 2024, compared to $82.4 million for the same period in 2023[20]. - Free cash flow for the nine months ended August 2, 2024, was $270.5 million, significantly up from $56.1 million for the same period in 2023[25]. - The company reported a free cash flow conversion percentage of 82.2% for the nine months ended August 2, 2024, a substantial increase from 21.6% in the prior year[25]. - Purchases of property, plant, and equipment were $59.3 million in August 2024, down from $98.6 million in August 2023[25]. Future Outlook - The company expects total net sales growth of about 1% for fiscal 2024, with adjusted diluted EPS guidance revised to a range of $4.15 to $4.20[4]. - The company remains optimistic about fiscal 2025 and beyond, focusing on agility, productivity, and leveraging its innovative product portfolio[4]. - The company anticipates at least $100 million in annualized run rate savings by fiscal 2027 from its multi-year productivity initiative named AMP[3]. - The company anticipates continued demand trends and has provided fiscal 2024 financial guidance, although specific figures were not disclosed in the provided content[16]. Tax and Inventory Management - The effective tax rate for the third quarter was reported at 17.3%, a decrease from 47.6% in the same prior-year period[9]. - The effective tax rate for the nine months ended August 2, 2024, was 17.3%, compared to 47.6% for the same period in 2023[21]. - Significant progress was made in reducing dealer field inventories of lawn care products, with expectations to exit the fiscal year in a better position than last year[3]. Segment Performance - Net sales for the three months ended August 2, 2024, were $1,156.9 million, an increase from $1,081.8 million for the same period last year, representing a growth of 6.9%[17]. - Gross profit for the nine months ended August 2, 2024, was $1,200.3 million, compared to $1,248.0 million for the same period last year, indicating a decrease of 3.8%[17]. - The gross margin for the three months ended August 2, 2024, improved to 34.8% from 34.4% in the same period last year[17]. - The Professional segment net sales for the three months ended August 2, 2024, were $880.9 million, a decrease of 1.6% from $896.3 million in the prior year[18]. - The Residential segment net sales increased significantly to $267.5 million for the three months ended August 2, 2024, compared to $175.3 million for the same period last year, reflecting a growth of 52.6%[18]. Impairment and Charges - Non-cash impairment charges recorded in the third quarter of fiscal 2023 amounted to $151.3 million, impacting the operating segment related to the Intimidator Group[22]. - The company launched the "Amplifying Maximum Productivity" (AMP) initiative in the first quarter of fiscal 2024, which includes significant third-party consulting costs and other related expenses[22].

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $1.35 billion for the second quarter, an increase of 26% year-over-year, driven by strong performance in the residential segment [25][27] - Adjusted diluted earnings per share (EPS) were $1.40, down from $1.58 in the same quarter last year, primarily due to segment mix and higher material costs [27][95] - Operating earnings as a percentage of net sales were 13.9%, compared to 16.3% in the same period last year, reflecting increased costs and changes in product mix [28][69] Business Segment Data and Key Metrics Changes - Residential segment net sales reached $335.6 million, up 26.3% year-over-year, with earnings increasing to $36.1 million, representing a margin of 10.8% [5][97] - Professional segment net sales were just over $1 million, down 5.9% year-over-year, primarily due to lower shipments of zero-turn mowers, partially offset by higher shipments in underground and specialty construction [62][97] - The company expects both professional and residential segment earnings margins to be higher than last year, with a slight improvement in professional segment margins [8] Market Data and Key Metrics Changes - The underground construction market is expected to see strong demand driven by infrastructure needs, with the company positioned as a market leader [11][32] - Golf tourism is projected to exceed 12 million travelers in 2024, about 20% above historical averages, indicating a positive outlook for the golf and grounds segment [10] - The company anticipates a reduction in preseason sell-in demand for snow and ice management products due to elevated field inventories from the previous season [33] Company Strategy and Development Direction - The company is focused on driving shareholder value through strategic investments, with plans to allocate $125 million in capital expenditures for new product investments and advanced manufacturing technologies [7][73] - The company is prioritizing investments in technology areas such as alternative power and smart connected solutions to enhance product development and competitive advantages [12][61] - The company aims to achieve $100 million in annualized savings by fiscal 2027 through its productivity initiative, AMP, while reinvesting up to 50% of those savings into innovation [26][115] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth in fiscal 2024, supported by strong fundamentals and market leadership [73][76] - The supply chain has largely returned to normal, enabling increased output to meet elevated order backlogs [73][102] - Management noted that retail activity for the 2024 spring season is off to a good start, with expectations for demand driven by regular replacement needs [74][75] Other Important Information - The company ended the quarter with a strong balance sheet, maintaining a gross debt-to-EBITDA leverage ratio within the target range of 1 to 2 times [7] - Accounts receivable increased by 34.9% year-over-year, primarily due to increased shipments to the mass channel [98] - The effective tax rate for the quarter was reported at 19.2%, down from 20.6% a year ago, reflecting a more favorable geographic mix of earnings [63] Q&A Session Summary Question: Will next fiscal year show organic total sales growth? - Management indicated that there is confidence in continued growth into next year, supported by demand and order profiles [106] Question: What is the expected timing for normalizing elevated field inventories? - Management expects to normalize field inventories throughout the year, particularly in the second and third quarters [122] Question: How is the productivity initiative progressing? - The AMP initiative is off to a great start, with expectations of achieving $100 million in annual savings by 2027 [115] Question: What is the outlook for the golf industry segments? - Management noted positive trends across private, semi-private, and public courses, with sustained spending in the golf industry [131] Question: What needs to occur to turn around the zero-turn mowers segment? - Management acknowledged that addressing elevated inventories and improving sell-through rates are critical for this segment [131]

0.7% NET SALES GROWTH | --- | --- | |----------------------------------------------------|-------| | | | | Decrease was primarily due to product mix given | | | exceptional residential segment growth and higher | | | material and manufacturing costs, partially offset | | | by productivity improvements | | 6 * Non-GAAP Measures: refer to the Appendix of this presentation for additional information and reconciliation YTD Free Cash Flow Up Nearly $100M Order Backlog Remains Elevated; Making Progress Amplifying ...

FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended May 3, 2024 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission File Number: 1-8649 THE TORO COMPANY (Exact name of registrant as specified in its charter) State or Other Jurisdiction of Incorporation or Org ...

"We executed well in the second quarter, delivering results aligned with our expectations and achieving record net sales," said Richard M. Olson, chairman and chief executive officer. "We realized exceptional growth in our residential segment due to our strong mass channel, successful new product introductions, and better weather conditions compared to last year. Our quarterly results also reflect growth in our professional segment's underground and specialty construction, and golf and grounds businesses. F ...

The Toro Company (NYSE:TTC) Q1 2024 Earnings Conference Call March 7, 2024 11:00 AM ET Company Participants Jeremy Steffan - Director, IR Julie Kerekes - Treasurer and Senior Managing Director of Global Tax and IR Richard Olson - Chairman and CEO Angela Drake - Vice President and CFO Conference Call Participants Sam Darkatsh - Raymond James Timothy Wojs - Baird David MacGregor - Longbow Research Thomas Hayes - CL King Edward Jackson - Northland Securities Operator Good day, ladies and gentlemen, and welcome ...

| --- | --- | --- | |--------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | THE TORO | | | | COMPANY | | | | Q1 2024 EARNINGS RELEASE | | | | March 7, 2024 | | | | | | | | | | | The Toro Company: 4 Q1 2024 EARNINGS RELEASE THE TORO COMPANY Q1 2024 Key Messages 2 Our multi-year productivity initiative, "AMP," is off to a great start and we are on track to deliver more than $100 million in annualized cost savings by fiscal 2027 Decrease was primarily due to lower shipmen ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) State or Other Jurisdiction of Incorporation or Organization Delaware 41-0580470 I.R.S. Employer Identification No. 8111 Lyndale Avenue South Bloomington, Minnesota 55420-1196 Telephone Number: (952) 888-8801 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offices) Securities registered pursuant ...

Investor Relations Jeremy Steffan Director, Investor Relations (952) 887-7962, jeremy.steffan@toro.com Media Relations Branden Happel Senior Manager, Public Relations (952) 887-8930, branden.happel@toro.com For Immediate Release The Toro Company Reports Results for the First Quarter of Fiscal 2024 Continued Strength in Demand Across Construction, and Golf and Grounds Markets Company Reaffirms Full-Year Fiscal 2024 Guidance BLOOMINGTON, Minn.—(BUSINESS WIRE) — March 7, 2024—The Toro Company (NYSE: TTC), a le ...

The Toro Company (NYSE:TTC) Q4 2023 Earnings Conference Call December 20, 2023 11:00 AM ET Company Participants Julie Kerekes - Treasurer and Senior Managing Director of Global Tax and Investor Relations Rick Olson - Chairman and Chief Executive Officer Angie Drake - Vice President and Chief Financial Officer Jeremy Steffan - Director of Investor Relations Conference Call Participants Sam Darkatsh - Raymond James Tim Wojs - Baird Tom Hayes - CL King David MacGregor - Longbow Research Eric Bosshard - Clevela ...