This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Toro Company CEO Discusses F2Q12 Results - Earnings Call Transcript

Stocks in this article: TTC

Our earnings release was issued this morning by Business Wire, a copy can be found in the Information section of our investor site, thetorocompany.com.

I will turn the call over to Mike.

Mike Hoffman



Thank you Kurt and good morning to all our listeners. Favorable weather conditions across much of the United States helped fuel the retail and continued the shift in momentum we reported during our first quarter call. We achieved record second quarter revenues and earnings per share. Net sales for the quarter grew 9.5% with earnings per share up 20%. For the first six months, net sales increased nearly 10% while earnings per share rose 21%. Renee will discuss our financial and operating results in more detail later in the call.

As reported in our earnings release earlier this morning, the strength of our second quarter and year-to-date performance led to our raising guidance for the year. In addition, the board has declared a two for one stock split. This is the third stock split declared by our board since we launched five by five, the first in a series of corporate initiatives to focus the enterprise on driving growth and efficiencies and thus add shareholder value. That effort continues with our current initiative, destination 2014.

Domestically while the economy still prevents mixed signals, the unseasonably warm weather and ample moisture are driving end user purchases across our residential landscape and golf businesses. In fact, we are enjoying strong results around the world with exception of Europe where economic conditions have slowed sales.

Golf courses across the United States are enjoying a resurgence of player activity. The National Golf Foundation or NGF's latest report shows rounds played in March grew by 30%, raising the 2012 calendar year to date growth rate to over 20%. Most regions in United States are reporting increased sales with the most significant growth coming from the large core markets of California, Arizona, Florida and the Carolinas which were all hard hit by the economic downturn. The NGF attributes these games to a lessening of recessionary effects on the game and an upward trend in golfer confidence. Whether also contributed to an early start to the golf season generating better than expected cash flow for golf course operations. In response to the increased activity, many courses are investing in new equipment, both to replace worn machinery and to capitalize on the innovation and productivity, our latest advancements deliver. We continue to win a significant share of large golf equipment packages. Our greensmower and rollers have been especially well received. New hybrid technology, featured on our greensmowers showed particular promise for future growth. As many of you witnessed firsthand, these and our many other cutting edge equipment, precision golf irrigation product and services kept our booth packed with customers during the National Golf Industries show in late February.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs