TORONTO, July 30, 2024 /CNW/ - Toromont Industries Ltd. (TSX:TIH) today reported its financial results for the second quarter ended June 30, 2024. Three months ended June 30 Six months ended June 30 ($ millions, except per share amounts) 2024 2023 % change 2024 2023 % change Revenue $         1,359.9 $         1,175.0 16 % $         2,376.2 $         2,221.3 7 % Operating income $            177.5 $            178.8 (1) % $            284.1 $            306.6 (7) % Net earnings $            135.4 $            139.0 (3) % $            219.3 $            235.0 (7) % Basic earnings per share ("EPS") $              1.65 $              1.69 (2) % $              2.67 $              2.86 (7) % Continuing operations: Net earnings $            135.4 $            133.3 2 % $            219.3 $            229.4 (4) % Basic earnings per share ("EPS") $              1.65 $              1.62 2 % $              2.67 $              2.79 (4) % "Results for the second quarter of 2024 improved on a continuing operations basis and are reflective of more normalized supply when compared to the market factors we experienced last year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group executed well. Revenue increased year over year with solid deliveries against opening order backlog. Rental markets continued to ease, however product support activity levels remain healthy. CIMCO revenue and bottom line improved on good execution and higher product support activity. Across the organization, we remain focused on our long‑term investment strategies and our operating disciplines, driving our after-market strategies and delivering customer solutions." HIGHLIGHTS: Consolidated Results Revenue increased $184.9 million or 16% in the second quarter compared to the similar period last year, with higher revenue in both groups with Equipment Group up 15% and CIMCO up 19%. Higher revenue in the Equipment Group resulted from solid equipment deliveries against order backlog. Product support revenue was healthy while rental revenue declined slightly on easing market conditions. CIMCO's growth reflects good package and product support activity levels. Our increasing technician labour workforce continues to support our long-term growth objectives. Revenue increased $154.9 million (up 7%) to $2.4 billion for the year‑to‑date period. Revenue increased in the Equipment Group 7% and increased at CIMCO 11% compared to the second quarter of 2023. Operating income(1) decreased 1% in the quarter, as the higher revenue was more than offset by lower gross margins and higher expense levels. Operating income as a percentage of sales decreased to 13.1% from 15.2% in the prior year, mainly reflecting the lower gross margins in the current period. Operating income decreased 7% in the year‑to‑date period, and was 12.0% of revenue compared to 13.8% in the similar period last year. The decrease in operating income reflects the higher revenue, more than offset by lower gross margins and higher expenses. Net earnings from continuing operations increased $2.0 million or 2% in the quarter versus a year ago to $135.4 million. EPS was $1.65 (basic) and $1.64 (fully diluted), both up 2% compared to the second quarter last year.  For the year‑to‑date period, net earnings from continuing operations decreased $10.2 million or 4% to $219.3 million compared to the similar period last year. EPS was $2.67 (basic) and $2.65 (fully diluted), down 4% compared to last year. Bookings(1) for the second quarter decreased 13% compared to last year with lower bookings in both groups, reflective in part strong comparables last year. On a year-to-date basis, bookings increased 13% with both groups reporting higher bookings: Equipment Group up 11% and CIMCO up 31%, reflecting a strong start to the year. Backlog(1) of $1.3 billion as at June 30, 2024, was similar to that reported at this time last year and up slightly from $1.2 billion as at December 31, 2023. Backlog remains healthy, reflecting good order intake. Equipment Group Revenue was up $165.5 million or 15% to $1.2 billion for the quarter. New equipment sales increased 39%, with good activity in the mining and construction markets, coupled with improved deliveries on delayed customer schedules from earlier in the year. Rental revenue was somewhat dampened, particularly with respect to light equipment. Product support activity was healthy, with increases in both parts and service, reflecting good demand and continued growth of our technician workforce. Revenue was up $133.2 million or 7% to $2.2 billion for the year‑to‑date period. Equipment sales and product support activity were higher across most markets and product groups, partially offset by lower rental and power systems activity. Operating income decreased $3.7 million or 2% in the second quarter, as the higher revenue was more than offset by lower gross margins (predominantly mix related) and higher expenses. Operating income decreased $27.9 million or 10% to $264.0 million in the year‑to‑date period, due to similar reasons as noted for the quarter. Operating income margin decreased to 12.2% versus 14.4% in the comparable period last year, primarily reflecting lower gross margins. Bookings in the second quarter were $610.0 million, a decrease of 9%, versus a relatively strong comparable in 2023, which included several large mining and power systems orders. Year-to-date bookings were $1.1 billion, an increase of 11% from the similar period last year. Construction markets were active with a continuing evolution towards more normalized supply dynamics. Mining was also strong with good orders received through the first half of the year. Power systems order activity was lower, in part reflecting a large project received last year.  Both mining and power systems orders have more variability over time due to the nature of orders. Backlog of $1.0 billion at the end of June 2024 was down $76.0 million or 7% from the end of June 2023, reflecting deliveries against customer orders from the opening backlog, offset by  good new bookings. CIMCO Revenue increased $19.5 million or 19% compared to the second quarter last year. Package revenue was higher, up 25%, with good execution on package project construction. Product support revenue was strong, up 12%, reflecting good market activity in Canada, supported by the increased technician workforce. Revenue increased $21.7 million or 11% to $212.4 million for the year‑to‑date period on good product support activity, up 12%, with increases in both Canada and the US. Package revenue was up 11%. Operating income increased $2.4 million or 25% for the quarter, as higher revenue and improved gross margins were partially offset by a higher relative expense levels. Operating income was up $5.4 million or 37% to $20.1 million for the year‑to‑date period, reflecting similar trends as the quarter. Operating income margin increased to 9.5% (2023 - 7.7%) reflecting higher  gross margins on good execution. Bookings decreased 49% in the second quarter to $32.6 million, however were 31% higher for the year‑to‑date period at $135.7 million. For the first six months of the year, bookings were higher in both Canada, up 8%, and in the US, up 107%. Recreational bookings were 166% higher while industrial bookings were 15% lower. Booking activity can be variable over time based on customer decision making and construction schedules. Backlog of $289.7 million at June 30, 2024 was up $82.5 million or 40% from last year, with an increase in both markets. Industrial backlog increased 45%, with an increase in both Canada and in the US. Recreational backlog was up 34%, predominately reflecting a strong increase in Canada and a modest increase in the US. Financial Position Toromont's share price of $121.13 at the end of June 2024, translated to market capitalization(1) of $9.9 billion and total enterprise value(1) of $9.8 billion. The Company maintained a strong financial position. Leverage as represented by the net debt to total capitalization(1) ratio was -6% at the end of June 2024, compared to -17% at the end of December 2023 and -4% at the end of June 2023. The change in ratio from this time last year reflects good cash flow, net of changes in working capital and capital expenditures. The Company purchased and cancelled 608,000 common shares ($75.0 million) under the Normal Course Issuer Bid program in the six-months ended June 30, 2024. For the similar period last year, the Company purchased and cancelled 238,000 common shares ($25.0 million). The Board of Directors approved a quarterly dividend of $0.48 cents per share, payable on October 2, 2024 to shareholders on record on September 6, 2024. The Company's return on equity(1) was 21.0% at the end of June 2024, on a trailing twelve-month basis, compared to 23.1% at the end of December 2023 and 25.1% at the end of June 2023. Trailing twelve month pre‑tax return on capital employed(1) was 27.9% at the end of June 2024, compared to 30.4% at the end of December 2023 and 32.2% at the end of June 2023. "In the second quarter, construction and mining markets provided solid equipment ordering and product support activity," continued Mr. McMillan. "Although rental markets have eased through the first half of the year, we remain highly committed to this market for the longer term. CIMCO continues to perform well. We will maintain our focus on 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. This along with our strong financial position and order backlog position us well for the remainder of the year." FINANCIAL AND OPERATING RESULTS All comparative figures in this press release are for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 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 and six months ended June 30, 2024, which ...