Short answer
Toro Co (TTC) filed its fiscal 2018 10-K annual report with the SEC on Dec 21, 2018. It reported revenue of $2.6B (+4.5% year over year) and net income of $272M.
- Top risk flagged: U.S. and international trade-policy changes, including tariffs on imported steel, aluminum, components and parts, threatening profit margins
FY2018 key financial metrics · XBRL
- Revenue
- $2.6B
- +4.5% YoY
- Net income
- $272M
- +1.6% YoY
- Operating margin
- 14.2%
- +0.1 pp YoY
- Gross margin
- 35.9%
- −0.8 pp YoY
- EPS (diluted)
- $2.50
- +3.7% YoY
- ROE
- 40.7%
- −2.7 pp YoY
- Operating cash flow
- $365M
- +1.1% YoY
Source: XBRL data from the Toro Co (TTC) FY2018 10-K on SEC EDGAR. USD.
Toro Co FY2018 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
- Fiscal 2018 launches: Outcross 9060, Lynx Smart Module, DD2226 directional drill, Irritrol KD2 controller, and PowerJet corded blower
- Strategic expansion: L.T. Rich acquisition broadened landscape contractor turf-renovation and snow-management offerings
- International reach: Manufacturing in 9 countries, sales offices across 9 countries, products marketed in more than 125 countries
- Employees: 6,715 at October 31, 2018, with 16% covered by collective bargaining agreements
Management Discussion & Analysis
- Revenue $2,618.7M, up 4.5% YoY from $2,505.2M, driven by Professional products and new introductions
- Net earnings $271.9M, up 1.6%; gross margin 35.9% vs 36.8%, operating margin 14.2% vs 14.2%
- Best segment Professional: sales $1,947.0M, up 7.5%; worst Residential: sales $654.4M, down 2.8%
- Operating cash flow $364.8M; capex $90.1M; buybacks $160.4M; quarterly dividend $0.20 per share
- Outlook: fiscal 2019 capex approximately $85.0M; risks from higher commodity costs, tariffs, freight, supply challenges, and unfavorable weather
Risk Factors
- U.S. and international trade-policy changes, including tariffs on imported steel, aluminum, components and parts, threatening profit margins
- International exposure: non-U.S. sales at 24.6% of fiscal 2018 consolidated net sales, vulnerable to Brexit and sovereign-debt instability
- Supply-chain concentration: certain raw materials, components, parts and accessories sourced from single suppliers
- Competitive disruption: larger manufacturers able to commercialize emerging technologies faster and pursue low-cost-country pricing
- Financing dependence: $600 million revolving credit facility and debt covenants including maximum leverage ratio requirements
Generated from the filing text; verify against the original. How to read a 10-K
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