Toro 2013 Annual Report Download - page 32

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ITEM 6. SELECTED FINANCIAL DATA
The following table presents our selected financial data for each of the fiscal years in the five-year period ended October 31, 2013. The table
should be read in conjunction with Item 7, ‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations,’’ and
Item 8, ‘‘Financial Statements and Supplementary Data,’’ of this Annual Report on Form 10-K.
(Dollars in thousands, except per share data)
Fiscal years ended October 31 2013 2012 2011 2010 2009
OPERATING RESULTS:
Net sales $2,041,431 $1,958,690 $1,883,953 $1,690,378 $1,523,447
Net sales growth (decline) from prior year 4.2% 4.0% 11.5% 11.0% (18.9)%
Gross profit as a percentage of net sales 35.5% 34.4% 33.8% 34.1% 33.5%
Selling, general, and administrative expense as a percentage of net sales 24.2% 23.9% 24.0% 25.1% 26.0%
Operating earnings $ 230,662 $ 205,613 $ 184,487 $ 151,266 $ 115,197
As a percentage of net sales 11.3% 10.5% 9.8% 9.0% 7.5%
Net earnings $ 154,845 $ 129,541 $ 117,658 $ 93,237 $ 62,837
As a percentage of net sales 7.6% 6.6% 6.2% 5.5% 4.1%
Basic net earnings per share
1
$ 2.67 $ 2.18 $ 1.88 $ 1.41 $ 0.88
Diluted net earnings per share
1
2.62 2.14 1.85 1.39 0.87
Return on average stockholders’ equity 46.1% 44.7% 43.4% 31.6% 18.5%
SUMMARY OF FINANCIAL POSITION:
Total assets $1,002,748 $ 935,199 $ 870,663 $ 885,622 $ 872,682
Average net working capital as a percentage of net sales
2
16.6% 15.2% 15.0% 13.9% 26.2%
Long-term debt, including current portion $ 223,544 $ 225,340 $ 227,156 $ 225,548 $ 228,811
Stockholders’ equity 358,738 312,402 266,767 275,810 315,212
Debt-to-capitalization ratio 38.4% 41.9% 46.0% 45.1% 42.5%
CASH FLOW DATA:
Cash provided by operating activities $ 221,876 $ 185,798 $ 113,877 $ 193,507 $ 251,470
Repurchases of Toro common stock 99,587 93,395 129,955 135,777 115,283
Cash dividends per share of Toro common stock
1
0.56 0.44 0.40 0.36 0.30
OTHER STATISTICAL DATA:
Market price range –
High sales price
1
$ 59.500 $ 42.360 $ 34.215 $ 29.250 $ 21.015
Low sales price
1
40.250 25.890 22.525 18.235 10.130
Average number of employees 5,002 5,066 4,947 4,724 4,612
1
Per share data and sales prices have been adjusted for all periods presented to reflect the impact of the company’s two-for-one stock split effective June 29, 2012.
2
Average net working capital is defined as monthly average accounts receivable plus inventory less trade payables.
ITEM 7. MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF
OPERATIONS
This Management’s Discussion and Analysis (‘‘MD&A’’) provides construction equipment, and residential yard and snow removal
material historical and prospective disclosures intended to enable products. We sell our products worldwide through a network of
investors and other readers to assess our financial condition and distributors, dealers, hardware retailers, home centers, mass retail-
results of operations. Statements that are not historical are for- ers, and over the Internet. Our businesses are organized into three
ward-looking and involve risks and uncertainties, including those reportable business segments: Professional, Residential, and Dis-
discussed in Part I, Item 1A, ‘‘Risk Factors’’ and elsewhere in this tribution. Our Distribution segment, which consists of our company-
report. These risks could cause our actual results to differ materi- owned domestic distributorships, has been combined with our cor-
ally from any future performance suggested below. porate activities and is shown as ‘‘Other.’’ We strive to provide
innovative, well-built, and dependable products supported by an
OVERVIEW extensive service network. A significant portion of our revenues
We design, manufacture, and market professional turf maintenance has historically been, and we expect will continue to be, attributa-
equipment and services, turf irrigation systems, landscaping equip- ble to new and enhanced products. We define new products as
ment and lighting, agricultural micro-irrigation systems, rental and those introduced in the current and previous two fiscal years.
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