Toro 2015 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, 2015. 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 2015
1
2014 2013 2012 2011
OPERATING RESULTS:
Net sales $2,390,875 $2,172,691 $2,041,431 $1,958,690 $1,883,953
Net sales growth from prior year 10.0% 6.4% 4.2% 4.0% 11.5%
Gross profit as a percentage of net sales 35.0% 35.6% 35.5% 34.4% 33.8%
Selling, general, and administrative expense as a percentage of net sales 22.5% 23.5% 24.2% 23.9% 24.0%
Operating earnings $ 299,114 $ 263,157 $ 230,662 $ 205,613 $ 184,487
As a percentage of net sales 12.5% 12.1% 11.3% 10.5% 9.8%
Net earnings $ 201,591 $ 173,870 $ 154,845 $ 129,541 $ 117,658
As a percentage of net sales 8.4% 8.0% 7.6% 6.6% 6.2%
Basic net earnings per share
2
$ 3.63 $ 3.09 $ 2.67 $ 2.18 $ 1.88
Diluted net earnings per share
2
3.55 3.02 2.62 2.14 1.85
Return on average stockholders’ equity 44.7% 45.3% 46.1% 44.7% 43.4%
SUMMARY OF FINANCIAL POSITION:
Total assets $1,303,658 $1,192,415 $1,002,748 $ 935,199 $ 870,663
Average net working capital as a percentage of net sales
3
16.0% 15.1% 16.6% 15.2% 15.0%
Long-term debt, including current portion $ 377,952 $ 353,956 $ 223,544 $ 225,340 $ 227,156
Stockholders’ equity 462,165 408,727 358,738 312,402 266,767
Debt-to-capitalization ratio 45.0% 47.8% 38.4% 41.9% 46.0%
CASH FLOW DATA:
Cash provided by operating activities $ 236,869 $ 182,365 $ 221,876 $ 185,798 $ 113,877
Repurchases of Toro common stock 106,964 103,039 99,587 93,395 129,955
Cash dividends per share of Toro common stock
2
1.00 0.80 0.56 0.44 0.40
OTHER STATISTICAL DATA:
Market price range –
High sales price
2
$ 75.83 $ 67.35 $ 59.50 $ 42.36 $ 34.22
Low sales price
2
60.20 55.77 40.25 25.89 22.53
Average number of employees 6,682 5,979 5,002 5,066 4,947
1
The company’s consolidated financial statements include results of the BOSS business from November 14, 2014, the date of acquisition.
2
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.
3
Average net working capital is defined as monthly average accounts receivable plus inventory less trade payables.
OVERVIEW
ITEM 7. MANAGEMENT’S DISCUSSION AND
We design, manufacture, and market professional turf maintenance
ANALYSIS OF FINANCIAL CONDITION AND equipment and services, turf irrigation systems, landscaping equip-
RESULTS OF OPERATIONS ment and lighting, agricultural micro-irrigation systems, rental and
specialty construction equipment, and residential yard and snow
This Management’s Discussion and Analysis (‘‘MD&A’’) provides thrower products. Beginning in fiscal 2015 with our acquisition of
material historical and prospective disclosures intended to enable BOSS, we also design, manufacture, and market professional
investors and other readers to assess our financial condition and snow and ice management products. We sell our products world-
results of operations. Statements that are not historical are for- wide through a network of distributors, dealers, hardware retailers,
ward-looking and involve risks and uncertainties, including those home centers, mass retailers, and over the Internet. Our busi-
discussed in Part I, Item 1A, ‘‘Risk Factors’’ and elsewhere in this nesses are organized into three reportable business segments:
report. These risks could cause our actual results to differ materi- Professional, Residential, and Distribution. Our Distribution seg-
ally from any future performance suggested below. ment, which consists of our company-owned domestic distributor-
ships, has been combined with our corporate activities and is
shown as ‘‘Other.’’ We strive to provide innovative, well-built, and
dependable products supported by an extensive service network. A
28