The Toro pany(US:TTC)2024-12-18 13:39Financial Performance - Full-year net sales of $4.58 billion, up from $4.55 billion in fiscal 2023[1] - Fourth-quarter net sales of $1.08 billion, up from $0.98 billion in the same period of fiscal 2023[1] - Gross margin for the fourth quarter was 32.4%, compared with 33.5% for the same prior-year period[22] - Operating earnings as a percentage of net sales for the fourth quarter were 10.1%, compared with 9.6% in the same prior-year period[25] - Gross profit for the twelve months ended October 31, 2024, was $1,549.3 million, with a gross margin of 33.8%[40] - Net earnings for the twelve months ended October 31, 2024, were $418.9 million, with diluted net earnings per share of $4.01[40] - Gross profit for the three months ended October 31, 2024 was $349.0 million, compared to $329.6 million in the same period last year[52] - Adjusted gross margin for the twelve months ended October 31, 2024 was 33.9%, down from 34.7% in the prior year[52] - Operating earnings for the three months ended October 31, 2024 were $109.0 million, up from $94.5 million in the same period last year[52] - Adjusted operating earnings margin for the twelve months ended October 31, 2024 was 12.2%, compared to 12.9% in the prior year[52] - Net earnings for the twelve months ended October 31, 2024 were $418.9 million, up from $329.7 million in the prior year[52] - Adjusted diluted EPS for the twelve months ended October 31, 2024 was $4.17, compared to $4.21 in the prior year[52] Segment Performance - Professional segment net sales for the fourth quarter were $913.9 million, up 10.3% from $828.9 million in the same period last year[13] - Residential segment net sales for the fourth quarter were $155.1 million, up 4.5% from $148.4 million in the same period last year[17] - Professional segment net sales for the twelve months ended October 31, 2024, were $3,556.9 million, contributing significantly to total net sales[42] - Residential segment net sales for the twelve months ended October 31, 2024, were $998.3 million, showing growth compared to the previous year[42] - International net sales for the twelve months ended October 31, 2024, were $923.0 million[42] Cash Flow and Liquidity - Free cash flow increased to just over $470 million in fiscal 2024, with a conversion rate of 112.4%[5] - Cash and cash equivalents increased to $199.5 million in 2024 from $193.1 million in 2023[45] - Net cash provided by operating activities rose to $569.9 million in 2024 compared to $306.8 million in 2023[48] - Free cash flow for the twelve months ended October 31, 2024 was $470.7 million, up from $164.4 million in the prior year[60] - Free cash flow conversion percentage for the twelve months ended October 31, 2024 was 112.4%, compared to 49.9% in the prior year[60] - Net cash used in financing activities increased to $505.1 million in 2024 from $147.5 million in 2023[48] Debt and Equity - Long-term debt reduced to $911.8 million in 2024 from $1,031.5 million in 2023[45] - Stockholders' equity grew to $1,551.9 million in 2024 from $1,510.9 million in 2023[45] Expenses and Investments - Interest expense was down $0.4 million for the fourth quarter to $14.5 million[26] - Purchases of property, plant, and equipment decreased to $103.5 million in 2024 from $149.5 million in 2023[48] - Dividends paid on TTC common stock increased to $149.5 million in 2024 from $141.9 million in 2023[48] - Depreciation of property, plant, and equipment rose to $93.7 million in 2024 from $83.5 million in 2023[48] Tax and Earnings Guidance - Reported effective tax rate for fiscal 2024 was 18.3%, compared with 17.7% in fiscal 2023[28] - Full-year fiscal 2025 guidance of adjusted diluted EPS in the range of $4.25 to $4.40[1] - The company provided adjusted diluted EPS guidance for fiscal 2025, excluding certain unpredictable items[37] Strategic Initiatives and Forward-Looking Statements - The company's forward-looking statements include expectations regarding demand trends, supply chain stabilization, and the success of new products[38] - The company's fiscal 2025 financial guidance anticipates incremental growth from strategic partnerships and new product success[38] - The company uses non-GAAP financial measures to assess liquidity and operational performance, including free cash flow and free cash flow conversion percentage[34] - The company completed the acquisition of Intimidator Group on January 13, 2022, with acquisition-related costs of $0.2 million for the fiscal year ended October 31, 2023[54] - The company launched a significant productivity initiative named AMP in the first quarter of fiscal 2024, with charges of $5.7 million for the twelve months ended October 31, 2024[56] Inventory and Global Presence - Inventories decreased to $1,038.9 million in 2024 from $1,087.8 million in 2023[45] - The Toro Company reported net sales of $4.6 billion in fiscal 2024, with a global presence in over 125 countries[32]