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 ...

Financial Data and Key Metrics Changes - Professional segment earnings for the first quarter were $112.8 million, down from $144.1 million last year, with earnings as a percentage of net sales at 14.9%, compared to 16.4% last year [2] - Interest expense for the quarter was $16.2 million, up $2.1 million from last year, primarily due to higher average interest rates and outstanding borrowings [3] - Consolidated net sales for the quarter were just over $1 billion, a decrease of 12.8% compared to last year, with adjusted diluted EPS at $0.64, down from $0.98 [95] Business Line Data and Key Metrics Changes - Professional segment net sales for the first quarter were $756.5 million, down 14.1% year-over-year, primarily due to lower shipments of zero-turn mowers and snow products [39] - Residential segment net sales for the first quarter were $240.1 million, down 9.3% compared to last year, driven by lower shipments of snow products and zero-turn mowers [83] - Adjusted gross margin for the quarter was 34.4%, slightly down from 34.5% in the same period last year, primarily due to unfavorable product mix within the residential segment [96] Market Data and Key Metrics Changes - The company expects continued strength in demand for underground and specialty construction products, supported by private and public spending addressing global issues [88] - For golf, the company anticipates sustained demand driven by new golfers and rounds played, with U.S. rounds played at the highest ever [17] - The company expects retail demand for landscape contractors to remain steady, with some price sensitivity, while homeowner demand is expected to stabilize in spring [18] Company Strategy and Development Direction - The company plans to fund $125 million in capital expenditures for new product investments and advanced manufacturing technologies [4] - The AMP initiative aims to deliver at least $100 million of annualized savings by fiscal 2027, focusing on productivity and operational excellence [10][16] - The company is committed to sustainability and innovation, developing products that drive productivity and reduce environmental impact [94] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring business and consumer confidence, spending patterns, and macroeconomic factors such as inflation and geopolitical events [7] - The company reaffirms its full-year fiscal 2024 net sales and adjusted diluted EPS guidance, expecting low single-digit total company net sales growth [42] - Management expressed confidence in the ability to drive long-term growth through strategic investments and maintaining a strong balance sheet [11][41] Other Important Information - Accounts receivables were $489.1 million, up 29.6% from a year ago, primarily due to timing of shipments [13] - Inventory was $1.18 billion, up 4% compared to last year, driven by higher finished goods balances [13] - Free cash flow in the quarter was a $111.3 million use of cash, primarily due to aligning production and inventory levels to demand [97] Q&A Session Summary Question: Clarification on DSOs and share repurchase activity - Management confirmed that DSOs were up due to initial sell-in to Lowe's and noted no share repurchase activity in the quarter, focusing on paying down the revolver first [23][52] Question: Outlook for the second half of the year - Management expressed confidence in the second half, expecting improved field inventory and increased output to address backlog [25] Question: Update on order patterns and cancellations - Management reported no significant order cancellations and noted healthy order growth, with slight progress in reducing backlog [104][130] Question: Insights on the underground business and market demand - Management highlighted strong market demand for underground and specialty construction, driven by significant funding for broadband and infrastructure projects [110][136] Question: Working capital trends and inventory management - Management expects to see working capital improvement throughout the year, with a focus on reducing inventory levels [146]

| --- | --- | --- | |--------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended October 31, 2023 or ☐ 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 Organization) Delawa ...