Toro Co. Files 10-Q for Period Ending February 2, 2024

TL;DR

<b>Toro Co. has filed its Q1 2024 10-Q report, detailing financial performance and operational status.</b>

AI Summary

TORO CO (TTC) filed a Quarterly Report (10-Q) with the SEC on March 7, 2024. Toro Co. filed a 10-Q report for the period ending February 2, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on October 31st. Toro Co. is incorporated in Minnesota. The company's SIC code is 3524 for Lawn & Garden Tractors & Home Lawn & Garden Equipment.

Why It Matters

For investors and stakeholders tracking TORO CO, this filing contains several important signals. This 10-Q provides investors with an update on Toro Co.'s financial health and operational performance for the first quarter of fiscal year 2024. Understanding the details within this filing is crucial for assessing the company's trajectory in the lawn and garden equipment market.

Risk Assessment

Risk Level: low — TORO CO shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant financial distress or unusual events.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand Toro Co.'s current operational and financial standing.

Key Numbers

• 2024-02-02 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-03-07 — Filing Date (FILED AS OF DATE)
• 3524 — Standard Industrial Classification (SIC code for Toro Co.)
• 1031 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• TORO CO (company) — COMPANY CONFORMED NAME
• TTC (company) — ticker symbol
• 2024-02-02 (date) — CONFORMED PERIOD OF REPORT
• 2024-03-07 (date) — FILED AS OF DATE
• 8111 LYNDALE AVE SOUTH (address) — BUSINESS ADDRESS STREET 1
• BLOOMINGTON (location) — BUSINESS ADDRESS CITY
• MN (location) — BUSINESS ADDRESS STATE
• 55420-1196 (postal_code) — BUSINESS ADDRESS ZIP

FAQ

Industry Context

Toro Co. operates in the lawn and garden equipment industry, a sector influenced by seasonality and consumer spending on outdoor maintenance.

Regulatory Implications

The filing is a standard SEC disclosure under the Securities Exchange Act of 1934, requiring public companies to report financial and operational information quarterly.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Examine segment reporting to understand performance drivers in Professional and Residential segments.
3. Review any disclosed risk factors or management discussion and analysis for forward-looking insights.

Year-Over-Year Comparison

This is the 10-Q filing for the first quarter of fiscal year 2024, following previous filings which would include annual reports (10-K) and prior quarterly reports.

Key Financial Figures

• $1.00 — ich registered Common Stock, par value $1.00 per share TTC New York Stock Exchange

Filing Documents

• ttc-20240202.htm (10-Q) — 1357KB
• ttc02022024exhibit311.htm (EX-31.1) — 12KB
• ttc02022024exhibit312.htm (EX-31.2) — 12KB
• ttc02022024exhibit32.htm (EX-32) — 10KB
• 0000737758-24-000022.txt (&nbsp;) — 8194KB
• ttc-20240202.xsd (EX-101.SCH) — 48KB
• ttc-20240202_cal.xml (EX-101.CAL) — 87KB
• ttc-20240202_def.xml (EX-101.DEF) — 235KB
• ttc-20240202_lab.xml (EX-101.LAB) — 604KB
• ttc-20240202_pre.xml (EX-101.PRE) — 451KB
• ttc-20240202_htm.xml (XML) — 1543KB

Financial Statements

Financial Statements Condensed Consolidated Statements of Earnings (Unaudited) 5 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5 Condensed Consolidated Balance Sheets (Unaudited) 6 Condensed Consolidated Statements of Cash Flows (Unaudited) 7 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Company Overview 26 Results of Operations 27 Business Segments 28 Financial Position 30 Non-GAAP Financial Measures 32 Critical Accounting Policies and Estimates 34 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 36 PART II. OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 5. Other Information 37 Item 6. Exhibits 38

Signatures

Signatures 39 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we or others on our behalf may make forward-looking statements from time to time in oral presentations, including telephone conferences and/or web casts open to the public, in press releases or reports, on our web sites or otherwise. Statements that are not historical are forward-looking and reflect expectations and assumptions that we believe to be reasonable. Forward-looking statements are based on our current expectations of future events and often can be identified in this report and elsewhere by using words such as "expect," "strive," "outlook," "guidance," "forecast," "goal," "anticipate," "continue," "plan," "estimate," "project," "target," "improve," "believe," "become," "should," "could," "will," "would," "possible," "may," "likely," "intend," "can," "pursue," "potential," "pro forma," "approximately," variations of such words or the negative thereof, and similar expressions or future dates. Our forward-looking statements generally relate to our future performance, including our anticipated operating results, liquidity requirements, and financial condition; the anticipated impacts of current global supply chain disruptions, the inflationary environment, current wars and international sanctions and geopolitical tensions, tight labor markets and other macroeconomic factors; our business strategies, priorities, goals, and commitments; acquisitions and any impairment, restructuring, or other charges in connection therewith or resulting therefrom; business and productivity initiatives and anticipated sales growth, profitability, cost savings and other benefits associated therewith; and the effect of laws, rules, policies, regulations, tax reform, new accounting pronounce

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS THE TORO COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Earnings (Unaudited) (Dollars and shares in millions, except per share data) Three Months Ended February 2, 2024 February 3, 2023 Net sales $ 1,001.9 $ 1,148.8 Cost of sales 657.4 752.9 Gross profit 344.5 395.9 Selling, general and administrative expense 255.9 259.5 Operating earnings 88.6 136.4 Interest expense ( 16.2 ) ( 14.1 ) Other income, net 7.7 9.0 Earnings before income taxes 80.1 131.3 Provision for income taxes 15.2 24.4 Net earnings $ 64.9 $ 106.9 Basic net earnings per share of common stock $ 0.62 $ 1.02 Diluted net earnings per share of common stock $ 0.62 $ 1.01 Weighted-average number of shares of common stock outstanding — Basic 104.4 104.5 Weighted-average number of shares of common stock outstanding — Diluted 104.7 105.6 See accompanying Notes to Condensed Consolidated Financial Statements. THE TORO COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Dollars in millions) Three Months Ended February 2, 2024 February 3, 2023 Net earnings $ 64.9 $ 106.9 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments 7.3 21.2 Derivative instruments, net of tax of $( 1.9 ); $( 5.9 ), respectively ( 5.3 ) ( 16.7 ) Other comprehensive income, net of tax 2.0 4.5 Comprehensive income $ 66.9 $ 111.4 See accompanying Notes to Condensed Consolidated Financial Statements. 5 Table of Contents THE TORO COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (Dollars in millions, except per share data) February 2, 2024 February 3, 2023 October 31, 2023 ASSETS Cash and cash equivalents $ 198.5 $ 174.0 $ 193.1 Receivables, net 489.1 377.3 407.4 Inventories, net 1,177.1 1,131.4 1,087.8 Prepaid expenses and other current assets 101.8 75.0 110.5 Total current assets 1,966.5 1,757.7 1,798.8 Property, plant, and equipment, ne