Toro 2014 Annual Report Download - page 34

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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, 2014. 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 2014 2013 2012 2011 2010
OPERATING RESULTS:
Net sales $2,172,691 $2,041,431 $1,958,690 $1,883,953 $1,690,378
Net sales growth from prior year 6.4% 4.2% 4.0% 11.5% 11.0%
Gross profit as a percentage of net sales 35.6% 35.5% 34.4% 33.8% 34.1%
Selling, general, and administrative expense as a percentage of net sales 23.5% 24.2% 23.9% 24.0% 25.1%
Operating earnings $ 263,157 $ 230,662 $ 205,613 $ 184,487 $ 151,266
As a percentage of net sales 12.1% 11.3% 10.5% 9.8% 9.0%
Net earnings $ 173,870 $ 154,845 $ 129,541 $ 117,658 $ 93,237
As a percentage of net sales 8.0% 7.6% 6.6% 6.2% 5.5%
Basic net earnings per share
1
$ 3.09 $ 2.67 $ 2.18 $ 1.88 $ 1.41
Diluted net earnings per share
1
3.02 2.62 2.14 1.85 1.39
Return on average stockholders’ equity 45.3% 46.1% 44.7% 43.4% 31.6%
SUMMARY OF FINANCIAL POSITION:
Total assets $1,192,415 $1,002,748 $ 935,199 $ 870,663 $ 885,622
Average net working capital as a percentage of net sales
2
15.1% 16.6% 15.2% 15.0% 13.9%
Long-term debt, including current portion $ 353,956 $ 223,544 $ 225,340 $ 227,156 $ 225,548
Stockholders’ equity 408,727 358,738 312,402 266,767 275,810
Debt-to-capitalization ratio 47.8% 38.4% 41.9% 46.0% 45.1%
CASH FLOW DATA:
Cash provided by operating activities $ 182,365 $ 221,876 $ 185,798 $ 113,877 $ 193,507
Repurchases of Toro common stock 103,039 99,587 93,395 129,955 135,777
Cash dividends per share of Toro common stock
1
0.80 0.56 0.44 0.40 0.36
OTHER STATISTICAL DATA:
Market price range –
High sales price
1
$ 67.35 $ 59.50 $ 42.36 $ 34.215 $ 29.250
Low sales price
1
55.77 40.25 25.89 22.525 18.235
Average number of employees 5,979 5,002 5,066 4,947 4,724
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.
specialty construction equipment, and residential yard and snow
ITEM 7. MANAGEMENT’S DISCUSSION AND
thrower products. Beginning in fiscal 2015 with our recent acquisi-
ANALYSIS OF FINANCIAL CONDITION AND tion of BOSS, we also design, manufacture, and market profes-
RESULTS OF OPERATIONS sional snow and ice management products. We sell our products
worldwide through a network of distributors, dealers, hardware
This Management’s Discussion and Analysis (‘‘MD&A’’) provides retailers, home centers, mass retailers, and over the Internet. Our
material historical and prospective disclosures intended to enable businesses are organized into three reportable business segments:
investors and other readers to assess our financial condition and Professional, Residential, and Distribution. Our Distribution seg-
results of operations. Statements that are not historical are for- ment, which consists of our company-owned domestic distributor-
ward-looking and involve risks and uncertainties, including those ships, has been combined with our corporate activities and is
discussed in Part I, Item 1A, ‘‘Risk Factors’’ and elsewhere in this shown as ‘‘Other.’’ We strive to provide innovative, well-built, and
report. These risks could cause our actual results to differ materi- dependable products supported by an extensive service network. A
ally from any future performance suggested below. significant portion of our revenues has historically been, and we
expect will continue to be, attributable to new and enhanced prod-
OVERVIEW ucts. We define new products as those introduced in the current
We design, manufacture, and market professional turf maintenance and previous two fiscal years.
equipment and services, turf irrigation systems, landscaping equip-
ment and lighting, agricultural micro-irrigation systems, rental and
28