Short answer
Toro Co (TTC) filed its fiscal 2017 10-K annual report with the SEC on Dec 22, 2017. It reported revenue of $2.5B (+4.7% year over year) and net income of $268M.
- Top risk flagged: Regulatory exposure: Tier 4 engine-emission rules, tariffs and import controls could require product modifications or increase costs
FY2017 key financial metrics · XBRL
- Revenue
- $2.5B
- +4.7% YoY
- Net income
- $268M
- +15.9% YoY
- Operating margin
- 14.2%
- +0.2 pp YoY
- Gross margin
- 36.8%
- +0.2 pp YoY
- EPS (diluted)
- $2.41
- +17.0% YoY
- ROE
- 43.4%
- +1.4 pp YoY
- Operating cash flow
- $361M
- −0.3% YoY
Source: XBRL data from the Toro Co (TTC) FY2017 10-K on SEC EDGAR. USD.
Toro Co FY2017 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core model: Global manufacturer of professional and residential outdoor equipment, irrigation, lighting, and related services across Professional, Residential, and Other segments
- Fiscal 2017 additions: Perrot irrigation acquisition, RED Technology, QuickCube, DD2226 directional drill, PowerPlex 40V products
- Strategic emphasis: Broader technology-enabled solutions, including machine monitoring, precision irrigation, cloud controls, and battery-powered residential tools
- International footprint: Manufacturing in 9 countries, sales offices in 10 countries, sales outside the U.S. at 24.4% of total
- R&D investment: Engineering and research spending reached $80.4 million, or 3.2% of net sales
- Distinctive customer concentration: Home Depot represented approximately 10% of fiscal 2017 gross sales vs 11% in fiscal 2016
Management Discussion & Analysis
- Revenue $2,505.2M, up 4.7% YoY from $2,392.2M, driven by Professional products and new product introductions
- Gross margin 36.8% vs 36.6%; operating margin 14.2% vs 14.0%; net earnings $267.7M, up 15.9%
- Best segment Professional: sales $1,811.7M, up 6.2%, operating margin 20.9% vs 20.6%; Residential sales $673.2M, up 0.6%
- Operating cash flow $360.7M; capex $58.3M; buybacks $159.4M; quarterly dividend $0.175 per share
- Vision 2020 targets organic growth of at least 5% and operating margin of 15.5% by fiscal 2020; risks include commodity costs and currency fluctuations
Risk Factors
- Regulatory exposure: Tier 4 engine-emission rules, tariffs and import controls could require product modifications or increase costs
- International exposure: 24.4% of fiscal 2017 net sales generated outside the U.S., with Brexit and trade-agreement uncertainty
- Supply-chain vulnerability: Single-source components could disrupt production if substitutes are unavailable or delayed
- Competitive threat: Larger manufacturers may outspend Toro on emerging technologies, product development and pricing
- Financial constraint: $150 million revolving facility and debt covenants limit liquidity flexibility, with debt costs rising above 1.50 debt-to-EBITDA
Generated from the filing text; verify against the original. How to read a 10-K
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