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The Toro pany(TTC) - 2025 Q1 - Quarterly Results
TTCThe Toro pany(TTC)2025-03-06 13:38

Financial Performance - First-quarter net sales were 995million,down1995 million, down 1% from 1,002 million in the same period of fiscal 2024[5] - Reported diluted EPS for the first quarter was 0.52,adecreaseof160.52, a decrease of 16% compared to 0.62 in the same period of fiscal 2024[5] - Adjusted diluted EPS for the first quarter was 0.65,up20.65, up 2% from 0.64 in the same period of fiscal 2024[5] - Operating earnings decreased to 77.8million,comparedto77.8 million, compared to 88.6 million in the previous year, reflecting a decline of 12.0%[28] - Net earnings for the three months ended January 31, 2025, were 52.8million,down18.652.8 million, down 18.6% from 64.9 million in the same period of 2024[28] - Adjusted net earnings for the three months ended January 31, 2025, were 65.9million,slightlydownfrom65.9 million, slightly down from 66.5 million in the prior year, with adjusted net earnings per diluted share at 0.65,comparedto0.65, compared to 0.64[36] Segment Performance - Professional segment net sales increased by 1.6% to 768.8million,drivenbyhighershipmentsofgolfandgroundsproducts[17]−Professionalsegmentearningsroseto768.8 million, driven by higher shipments of golf and grounds products[17] - Professional segment earnings rose to 127.2 million, with a margin of 16.5%, up from 14.9% in the prior-year period[17] - Residential segment net sales decreased by 8% to 221million,primarilyduetolowershipmentsofsnowproductsandtheprioryearPopeProductsdivestiture[17]−TheProfessionalsegmentnetsalesincreasedto221 million, primarily due to lower shipments of snow products and the prior year Pope Products divestiture[17] - The Professional segment net sales increased to 768.8 million, up 1.9% from 756.5millionintheprioryear,whiletheResidentialsegmentnetsalesdecreasedto756.5 million in the prior year, while the Residential segment net sales decreased to 221.0 million, down 7.9%[30] Cash Flow and Shareholder Returns - The company returned 100milliontoshareholdersthroughsharerepurchases,reflectingimprovedcashflow[2]−Thecompanyreportedanetcashusedinoperatingactivitiesof100 million to shareholders through share repurchases, reflecting improved cash flow[2] - The company reported a net cash used in operating activities of 48.6 million for the three months ended January 31, 2025, compared to 92.2millioninthesameperiodof2024[34]−FreecashflowforthethreemonthsendedJanuary31,2025,was92.2 million in the same period of 2024[34] - Free cash flow for the three months ended January 31, 2025, was (67.7) million, an improvement from (111.3)millioninthesameperiodof2024,resultinginafreecashflowconversionpercentageof(128.2)(111.3) million in the same period of 2024, resulting in a free cash flow conversion percentage of (128.2)% compared to (171.5)%[38] - Net cash used in operating activities for the three months ended January 31, 2025, was (48.6) million, an improvement from (92.2)millionintheprioryear[38]GuidanceandFutureInitiatives−Thecompanymaintainsfull−yearfiscal2025netsalesgrowthguidanceof0(92.2) million in the prior year[38] Guidance and Future Initiatives - The company maintains full-year fiscal 2025 net sales growth guidance of 0% to 1% and adjusted diluted EPS guidance of 4.25 to 4.40[7]−TheAMPinitiativehasdelivered4.40[7] - The AMP initiative has delivered 64 million in run-rate cost savings to date, with a target of 100millionbyfiscal2027[6]−Thecompanyanticipatescontinueddemandtrendsandhasprovidedfiscal2025financialguidance,althoughspecificfigureswerenotdisclosedintheprovidedcontent[25]CostandMarginAnalysis−Grossmarginforthefirstquarterwas33.7100 million by fiscal 2027[6] - The company anticipates continued demand trends and has provided fiscal 2025 financial guidance, although specific figures were not disclosed in the provided content[25] Cost and Margin Analysis - Gross margin for the first quarter was 33.7%, down from 34.4% in the same prior-year period due to higher material and manufacturing costs[12] - Gross profit for the same period was 335.6 million, resulting in a gross margin of 33.7%, down from 34.4% in the prior year[28] - Operating earnings for the three months ended January 31, 2025, were 77.8million,downfrom77.8 million, down from 88.6 million in the prior year, with an operating earnings margin of 7.8% compared to 8.8%[36] - Adjusted operating earnings for the three months ended January 31, 2025, were 94.0million,comparedto94.0 million, compared to 92.5 million in the same period of 2024, with an adjusted operating earnings margin of 9.4%[36] Taxation - The effective tax rate for the three months ended January 31, 2025, was 20.1%, an increase from 19.0% in the same period of 2024[36] - Income tax provision for the three months ended January 31, 2025, was 13.3million,downfrom13.3 million, down from 15.2 million in the prior year[36] - The company recorded a tax impact of share-based compensation of 0.1millionforthethreemonthsendedJanuary31,2025,comparedto0.1 million for the three months ended January 31, 2025, compared to 1.5 million in the same period of 2024[36]