Short answer
Toro Co (TTC) filed its fiscal 2016 10-K annual report with the SEC on Dec 22, 2016. It reported revenue of $2.4B and net income of $231M.
- Top risk flagged: SEC conflict-minerals rules under Dodd-Frank: complex supply chain may prevent origin verification, risking customer losses
FY2016 key financial metrics · XBRL
- Revenue
- $2.4B
- Net income
- $231M
- Operating margin
- 14.0%
- Gross margin
- 36.6%
- EPS (diluted)
- $2.06
- ROE
- 42.0%
- Operating cash flow
- $362M
Source: XBRL data from the Toro Co (TTC) FY2016 10-K on SEC EDGAR. USD.
Toro Co FY2016 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: Professional and Residential outdoor equipment, irrigation, lighting, and services sold globally through distributors, dealers, retailers, and online channels
- New fiscal 2016 offerings: Cloud-based SMRT Logic and Light Logic Plus landscape controls using mobile and web connectivity
- Product expansion: EdgeSeries reels, TITAN HD, Exmark Radius, EXT Plow, Toro Workman GTX, and next-generation GrandStand MULTI FORCE
- International sales 24.2% of consolidated net sales, down from 25.5% in 2015 and 28.7% in 2014
- Engineering and research spending $77.4 million, or 3.2% of net sales, versus $73.6 million in 2015
- Distribution restructuring: Northwestern U.S. distribution company sold November 27, 2015, leaving one domestic distributorship
Management Discussion & Analysis
- Revenue $2,392.2M, up 0.1% YoY, with currency reducing sales by approximately $30.6M
- Gross margin 36.6% vs 35.0%, operating margin 14.0% vs 12.5%, net margin 9.7% vs 8.4%
- Best segment Professional: sales $1,705.3M, up 4.0%, margin 20.6% vs 18.8%
- Worst segment Residential: sales $669.1M, down 7.8%, margin 11.0% vs 11.7%
- Operating cash flow $361.9M, capex $50.7M, buybacks $107.5M, dividends $0.15 per share; fiscal 2017 capex planned at approximately $65M
Risk Factors
- SEC conflict-minerals rules under Dodd-Frank: complex supply chain may prevent origin verification, risking customer losses
- International exposure: non-U.S. sales 24.2%, with Juarez maquiladora operations vulnerable to drug-cartel violence
- Single-source components: supplier disruption or unavailable substitutes could impair production
- Competitive pressure: larger manufacturers may adapt faster to emerging technologies and changing customer preferences
- Debt covenants: debt-to-EBITDA above 1.50 increases interest rates and covenant breach could accelerate outstanding debt
Generated from the filing text; verify against the original. How to read a 10-K
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