The Toro Company announced results for its fiscal second quarter ended April 29, 2022, highlighted by an 8.7% increase in net sales.
The company also raised its guidance for fiscal year 2022.
Second Quarter Fiscal 2022 Financial Highlights
- Net sales of $1.25 billion, up 8.7% from $1.15 billion in the second quarter of fiscal 2021.
- Net income of $131.1 million, down 7.8% from $142.2 million in the second quarter of Fiscal 2021; *Adjusted net income of $132.1 million, down 5.8% from $140.3 million in the second quarter of Fiscal 2021.
- Reported EPS of $1.24 per diluted share compared to $1.31 per diluted share in the second quarter of fiscal 2021; *Adjusted EPS of $1.25 per diluted share compared to $1.29 per diluted share in the second quarter of fiscal 2021.
“We delivered on our expectations for the second quarter, extending our long track record of consistent financial performance and building an increasingly solid foundation for the future,” said Richard M. Olson, chairman and chief executive officer. “Our revenue growth was driven by continued strong demand, net price realization and our ability to produce in what remains a very dynamic operating environment. Our organizational flexibility and resilience have helped us achieve these results, and we are well positioned to emerge as a more efficient and agile company. Based on our operational progress, we have gained confidence for the remainder of the year and accordingly have increased our guidance.
“Our commitment to innovation and technology leadership is the cornerstone of our strategy,” Olson said. “Last week, we announced our new generation of autonomous, battery-powered mowers for today’s busy homeowners. This robotic mower expands our Toro Smart Yard offerings even further, with easy, wireless setup and an industry-first patented vision-based navigation system. This follows the recent introduction of our new autonomous fairway mower, which takes advantage of our proprietary GeoLink Solutions technologies.
“During this time, our integration of the Intimidator Group has gotten off to a good start. Beyond the addition of the complementary range of Spartan professional zero-turn mowers, we have a great opportunity to leverage our combined resources to to deliver unrivaled products, technologies and services to customers.” Finally, we remain focused on sustainability, which is fundamental to our strategic business priorities. The next edition of our sustainability report will feature goals and metrics that will help us continue to drive change in a meaningful way for all stakeholders.”
Financial highlights since the beginning of fiscal year 2022
- Net sales of $2,182.1 million, up 7.9% from $2,022.1 million for the same period a year earlier.
- Net income of $200.6 million, down 20.8% from $253.5 million in the same period a year earlier; *Adjusted net income of $201.8 million, down 13.6% from $233.5 million in the first half of Fiscal 2021.
- Reported EPS of $1.89 per diluted share compared to $2.32 per diluted share in the same period last year; * Adjusted EPS of $1.91 per diluted share versus $2.14 per diluted share in the first six months of fiscal 2021.
“Our team is strongly focused on supporting our customers, enterprise-wide operational execution and long-term investment,” continued Olson. “As we enter the second half of the year, demand for our range of innovative products remains strong. In the short term, our ability to meet high demand continues to be impacted by the global supply chain environment. Given these factors, along with our operational actions and positive momentum, we are raising our outlook for the full year.
“Importantly, we continue to bring new products to market that meet current and future customer needs, thanks to our strategic investments in the key technology areas of alternative energy, smart connected and autonomous solutions. Helping our customers increase productivity and efficiency, address workforce challenges and support sustainability has long been a priority and is a key growth driver for our business. We believe this focus, coupled with our deep relationships, extensive distribution networks and disciplined execution, will strengthen our leadership in our attractive and resilient end markets. We remain well positioned to capitalize on growth opportunities and continue to deliver on our commitments to all stakeholders. »
The company is raising its guidance for fiscal 2022 and now expects total net sales growth in the range of 14-16% and adjusted EPS of between $4.00 and $4.15 per diluted share . This guidance is based on management’s current visibility into what continues to be a dynamic macro environment, and reflects expectations regarding continued strength in demand and operational execution, as well as modest increase in acquisition of Intimidator Group.
*Non-GAAP financial measure.