Toro 2008 Annual Report Download - page 31

ITEM 6. SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
Fiscal years ended October 31 2008 2007 2006 2005
1
2004
OPERATING RESULTS:
Net sales $1,878,184 $1,876,904 $1,835,991 $1,779,387 $1,652,508
Net sales growth from prior year 0.1% 2.2% 3.2% 7.7% 10.4%
Gross profit as a percentage of net sales 34.8% 36.1% 35.0% 34.6% 35.9%
Selling, general, and administrative expense as a percentage of net sales 24.2% 24.2% 24.0% 24.3% 25.9%
Earnings from operations $ 198,409 $ 223,649 $ 202,876 $ 182,726 $ 165,225
Interest expense 19,333 19,445 17,672 17,733 15,523
Net earnings 119,651 142,436 129,145 114,082 102,666
As a percentage of net sales 6.4% 7.6% 7.0% 6.4% 6.2%
Basic net earnings per share
2
$ 3.17 $ 3.50 $ 3.01 $ 2.55 $ 2.11
Diluted net earnings per share
2
3.10 3.40 2.91 2.45 2.02
Return on average stockholders’ equity 32.6% 37.4% 33.0% 28.1% 23.5%
SUMMARY OF FINANCIAL POSITION:
Total assets $ 932,260 $ 950,837 $ 919,073 $ 914,860 $ 929,846
Average net working capital as a percentage of net sales
3
27.5% 29.4% 29.5% 30.4% 30.6%
Long-term debt, including current portion $ 230,791 $ 229,209 $ 175,000 $ 175,046 $ 175,091
Stockholders’ equity 364,675 370,438 392,029 390,034 420,819
Debt-to-capitalization ratio 39.0% 38.3% 30.9% 31.0% 29.5%
CASH FLOW DATA:
Cash provided by operating activities $ 215,722 $ 183,574 $ 190,271 $ 174,083 $ 185,149
Repurchases of Toro common stock 110,355 182,843 146,543 156,972 169,821
Cash dividends per share of Toro common stock
2
0.60 0.48 0.36 0.24 0.12
OTHER STATISTICAL DATA:
Market price range –
High sales price
2
$ 59.16 $ 63.69 $ 52.52 $ 49.02 $ 35.825
Low sales price
2
27.16 42.06 36.30 33.90 22.225
Average number of employees 5,133 5,320 5,343 5,185 5,164
1
The company’s consolidated financial statements include results of Hayter Limited from February 8, 2005, date of acquisition.
2
Per share data has been adjusted for all fiscal years presented to reflect a two-for-one stock split effective on March 28, 2005.
3
Average net working capital is defined as monthly average accounts receivable plus inventory less trade payables.
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Off-Balance Sheet Arrangements and Contractual Obligations
ITEM 7. MANAGEMENT’S DISCUSSION AND
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Critical Accounting Policies and Estimates
ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW
We design, manufacture, and market professional turf maintenance
This Management’s Discussion and Analysis (MD&A) provides equipment and services, turf and agricultural micro-irrigation sys-
material historical and prospective disclosures intended to enable tems, landscaping equipment, and residential yard and irrigation
investors and other readers to assess our financial condition and products worldwide. We sell our products through a network of
results of operations. Statements that are not historical are for- distributors, dealers, hardware retailers, home centers, mass retail-
ward-looking and involve risks and uncertainties, including those ers, and over the Internet. Our businesses are organized into two
discussed in Part I, Item 1A, ‘‘Risk Factors’’ and elsewhere in this reportable business segments: professional and residential. A third
report. These risks could cause our actual results to differ materi- reportable segment called ‘‘other’’ consists of domestic company-
ally from any future performance suggested below. owned distribution companies and corporate activities, including
This MD&A is organized in the following major sections: corporate financing activities. Our emphasis is to provide well-built,
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Overview, including Summary of Fiscal 2008 Results, GrowLean dependable, and innovative products supported by an extensive
Initiative, and Outlook for Fiscal 2009 service network. A significant portion of our revenues has histori-
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Results of Operations cally been, and we expect it to continue to be, attributable to new
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Performance by Business Segment and enhanced products.
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Financial Condition
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