TORONTO, May 1, 2024 /CNW/ - Toromont Industries Ltd. (TSX:TIH) today reported its financial results for the first quarter ended March 31, 2024. Three months ended March 31 ($ millions, except per share amounts) 2024 2023 % change Revenue $ 1,016.3 $ 1,046.4 (3) % Operating income $ 106.6 $ 127.8 (17) % Net earnings $ 83.9 $ 96.0 (13) % Basic earnings per share ("EPS") $ 1.02 $ 1.17 (13) % "Results for the first quarter of 2024 are reflective of the evolution toward more normalized supply and demand dynamics when compared to the market factors we experienced last year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "Overall we saw a decline in revenues year over year, however activity levels remain solid with healthy bookings and backlog across the business. The Equipment Group executed well given market dynamics and customer demand priorities. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to focus on our long-term investment strategies and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions." HIGHLIGHTS:  Consolidated Results Revenue decreased $30.0 million (down 3%) to $1.0 billion for the quarter. Revenue decreased in the Equipment Group 3% and increased at CIMCO 3% compared to Q1 of 2023. Lower revenue in the Equipment Group resulted from lower equipment deliveries, on delays in customer schedules as well as against a stronger comparable last year. Product support revenue was healthy while rental revenue declined slightly on adverse weather conditions. CIMCO's growth reflects good product support activity levels, while package revenue declined slightly on timing of construction schedules. Our increased technician labour workforce continues to support growth. Operating income decreased 17% in the quarter, and was 10.5% of revenue compared to 12.2% in the similar period last year. The decrease in operating income reflects the lower revenue, higher relative expenses and lower gross margins. For the quarter, net earnings decreased $12.1 million or 13% to $83.9 million, or $1.02 EPS (basic) and $1.01 EPS (fully diluted). Bookings(1) increased 62% compared to the similar period last year. Equipment Group bookings increased on several large orders in mining and construction. CIMCO bookings increased on solid demand for our products and services. Booking activity can be lumpy, resulting in variability quarter over quarter, reflecting market-related factors and customer buying patterns. Backlog(1) was $1.4 billion as at March 31, 2024, compared to $1.1 billion as at March 31, 2023, and $1.2 billion as at December 31, 2023. Backlog remains healthy, reflecting good order intake, some deferrals or delays in construction and customer delivery schedules. Equipment Group  Revenue was down $32.3 million or 3% to $928.1 million for the quarter. New equipment sales decreased 11%, against a stronger comparable last year, coupled with some delays in customer delivery schedules and buying decisions. Rental revenue was dampened in part due to adverse weather conditions. Product support activity was healthy, with increases in both parts and service, reflecting good demand and increased technician levels. Operating income decreased $24.2 million or 20% to $98.8 million in the quarter, reflecting the lower revenue, lower gross margins and higher relative expenses. Operating income margin decreased to 10.6% versus 12.8% in the comparable period last year. Bookings in 2024 were $521.6 million, a increase of $176.1 million or 51% versus prior year, reflecting good order intake predominantly in the construction and mining sectors. Backlog of $1.1 billion at the end of March 2024 was up $144.0 million or 15% from the end of March 2023, reflecting good order intake, some delays in customer deliveries. CIMCO Revenue increased $2.2 million or 3% to $88.2 million for the quarter on good product support activity, up 11%, with increases in both Canada and the US. Package revenue was down 7%, mainly due to delays in equipment delivery and customer schedules. Operating income was up $3.0 million or 61% to $7.8 million for the quarter, reflecting improved gross margins and higher revenue. Operating income margin increased to 8.9% (2023 was 5.6%) reflecting higher gross margins on solid execution. Bookings increased 156% to $103.1 million in the first quarter of 2024. Both markets were higher, with recreational orders up 119% and industrial orders up 194%. Activity increased in both Canada (+ 14%) and the US (+167%). Backlog of $323.2 million at March 31, 2024 was up $124.1 million or 62% from last year, largely driven by an increase in the industrial market with strong order intake, along with a modest increase in the recreational market. Financial Position Toromont's share price of $130.35 at the end of March 2024, translated to market capitalization(1) of $10.7 billion and total enterprise value(1) of $10.4 billion. The Company maintained a strong financial position. Leverage as represented by the net debt to total capitalization(1) ratio was -14% at the end of March 2024, compared to -17% at the end of December 2023 and -1% at the end of March 2023. The change in the ratio from this time last year reflects solid cash flow from earnings. The Company purchased and cancelled 195,700 common shares ($25.0 million) under the Normal Course Issuer Bid program in the three-months ended March 31, 2024. The Board of Directors approved a quarterly dividend of $0.48 cents per share, payable on July 5, 2024 to shareholders on record on June 7, 2024. The Company's return on equity(1) was 22.0% at the end of March 2024, on a trailing twelve-month basis, compared to 23.1% at the end of December 2023 and 24.9% at the end of March 2023. Trailing twelve month pre‑tax return on capital employed(1) was 29.0% at the end of March 2024, compared to 30.4% at the end of December 2023 and 32.4% at the end of March 2023. "Historically, the first quarter experiences lower activity levels due to typical seasonality," continued Mr. McMillan. "We continue to monitor key metrics and supply‑dynamics. New bookings particularly in CIMCO and our construction and mining markets were solid. As noted, our long-term focus on growth and returns means we remain committed to our operating and financial disciplines to manage our cost structure, while we invest in capacity and capabilities to provide exceptional service to our customers today and in the future." FINANCIAL AND OPERATING RESULTS  All comparative figures in this press release are for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. All financial information presented in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS"), except as noted below, and are reported in Canadian dollars. This press release contains only selected financial and operational highlights and should be read in conjunction with Toromont's unaudited interim condensed consolidated financial statements and related notes and Management's Discussion and Analysis ("MD&A"), as at and for the three months ended March 31, 2024, which are available on SEDAR at www.sedarplus.ca and on the Company's website at www.toromont.com. Additional information is contained in the Company's filings with Canadian securities regulators, including the 2023 Annual Report and 2024 Annual Information Form, which are available on SEDAR and the Company's website. ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS The Company will be holding its Annual and Special Meeting of Shareholders in a virtual-only format, via live audio webcast on Thursday, May 2, 2024, at 10:00 a.m. (EDT). Shareholders and other interested parties can attend the meeting virtually by going to https://web.lumiagm.com/485110321 (password "toromont2024"). The meeting will also be available via live audio webcast at www.toromont.com. QUARTERLY CONFERENCE CALL AND WEBCAST Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Thursday, May 2, 2024 at 8:00 a.m. (EDT). The call may be accessed by telephone at 888‑664‑6383 (North American toll free) or 416-764-8650 (Toronto area) and quoting participant passcode 40118654. A replay of the conference call will be available until Thursday, May 9, 2024 by calling 1‑888‑390‑0541 (North American toll free) or 416-764-8677 (Toronto area) and quoting passcode 118654. The live webcast can also be accessed at www.toromont.com. Presentation materials to accompany the call will be available on our investor page on our website. NON-GAAP AND OTHER FINANCIAL MEASURES Management believes that providing certain non-GAAP measures provides users of the Company's unaudited interim condensed consolidated financial statements and MD&A with important information regarding the operational performance and related trends of the Company's business. By considering these measures in combination with the comparable IFRS measures set out below, management believes that users are provided a better overall understanding of the Company's business and its financial ...