Toro 2013 Annual Report Download - page 40

provide us with adequate liquidity to meet our anticipated operating
Capital Expenditures and
requirements. We believe that the funds available through existing
Other Long-Term Assets
financing arrangements and forecasted cash flows will be sufficient
Fiscal 2013 capital expenditures of $49.4 million were higher by
to provide the necessary capital resources for our anticipated
14.3 percent compared to fiscal 2012. This increase was primarily
working capital needs, capital expenditures, investments, debt
attributable to capital expenditures for new product tooling, replace-
repayments, quarterly cash dividend payments, and stock repur-
ment production equipment, implementation of new information
chases for at least the next twelve months. As of October 31,
systems, and expansion of facilities. Capital expenditures for fiscal
2013, cash and short-term investments held by our foreign subsidi-
2014 are planned to be approximately $65 million as we expect to
aries that are not available to fund domestic operations unless
continue to invest in new product tooling and replacement produc-
repatriated were $24.8 million. We currently do not intend to repa-
tion equipment, as well as expansion and construction of facilities,
triate this cash held by our foreign subsidiaries; however, if circum-
including the expansion of our corporate facilities located in Bloom-
stances changed and these funds were needed for our U.S. opera-
ington, Minnesota, which includes the construction of a new corpo-
tions, we would be required to accrue and pay U.S. taxes to
rate facility to accommodate our need to expand space available
repatriate these funds.
for our product development and test capacities.
Long-term assets as of October 31, 2013 were $349.5 million
Cash Dividends
compared to $323.1 million as of October 31, 2012, an increase of
Each quarter in fiscal 2013, our Board of Directors declared a cash
8.2 percent. This increase was due primarily to a higher amount of
dividend of $0.14 per share, which was a 27.3 percent increase
capital expenditures in fiscal 2013 compared to fiscal 2012, as
over our cash dividend of $0.11 per share paid each quarter in
discussed above, and an increase in long-term deferred income
fiscal 2012. As announced on December 5, 2013, our Board of
taxes. Included in long-term assets as of October 31, 2013 and
Directors recently increased our fiscal 2014 first quarter cash divi-
2012 was goodwill in the amount of $91.9 million and $92.0 mil-
dend by 42.9 percent to $0.20 per share from the quarterly cash
lion, respectively. Based on our annual impairment analysis, we
dividend paid in the first quarter of fiscal 2013. Additionally, during
determined there was no goodwill impairment for any of our report-
the first quarter of fiscal 2014, we changed our annual dividend
ing units as their related fair values were substantially in excess of
guideline from 20 to 30 percent to 30 to 40 percent of our
their carrying values.
three-year average net earnings per share for the current and pre-
vious two fiscal years.
Capital Structure
The following table details the components of our total capitaliza-
Authorized Shares of Common Stock
tion and debt-to-capitalization ratio.
On March 12, 2013, following approval by our shareholders at our
(Dollars in millions) 2013 annual meeting of shareholders, we amended our Restated
October 31 2013 2012 Certificate of Incorporation by filing a Certificate of Amendment to
Long-term debt, including current portion $223.5 $225.3 Restated Certificate of Incorporation to increase the number of
Stockholders’ equity 358.7 312.4 authorized shares of common stock from 100 million to 175 million.
Debt-to-capitalization ratio 38.4% 41.9%
Our debt-to-capitalization ratio decreased in fiscal 2013 com- Cash Flow
pared to fiscal 2012 due to an increase in stockholders’ equity Cash flows provided by (used in) operating, investing, and financ-
from higher net earnings somewhat offset by an increase in divi- ing activities during the past three fiscal years are shown in the
dends paid and repurchases of shares of our common stock in following table.
fiscal 2013 as compared to fiscal 2012.
Cash Provided by
(Used in)
Liquidity and Capital Resources (Dollars in millions)
Fiscal years ended October 31 2013 2012 2011
Our businesses are seasonally working capital intensive and
require funding for purchases of raw materials used in production, Operating activities $ 221.9 $185.8 $ 113.9
Investing activities (44.8) (47.3) (69.3)
replacement parts inventory, payroll and other administrative costs,
Financing activities (118.3) (93.0) (140.1)
capital expenditures, establishment of new facilities, expansion and Effect of exchange rates on cash (1.7) (0.5) (1.0)
upgrading of existing facilities, as well as for financing receivables
Net cash provided (used) $ 57.1 $ 45.0 $ (96.5)
from customers that are not financed with Red Iron. We believe
Cash and cash equivalents as of fiscal year end $ 183.0 $125.9 $ 80.9
that anticipated cash generated from operations, together with our
fixed rate long-term debt, bank credit lines, and cash on hand, will
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