The following is a summary of the Toromont Industries Ltd. (TMTNF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Toromont Industries reported a decrease in revenue year-over-year for Q1 2024, despite healthy bookings and backlogs across the business.

• There was a 9% decrease in investment in non-cash working capital majorly due to higher orders in customer billings against long-term contracts and backlog.

• The company ended Q1 with robust liquidity, including a cash balance of $983 million, an additional $461 million on their existing credit facility, and a net debt to total capitalization ratio at a negative 14%.

• A slight decrease in Return on Equity of 22% for Q1 2024 compared with 24.9% for Q1 2023 was reported.

• The Board of Directors approved a dividend of $0.48 per share, payable on July 5, 2024, thereby increasing shareholder value.

• A marginal profitability increase was recorded due to positive activity in product support.

Business Progress:

• Despite challenges due to market and weather conditions impacting prime product delivery and rental, the company reported increased technician headcount and maintained a healthy opening order backlog.

• CIMCO had a productive start to the year, with operational performance driven by execution in Canada and the U.S. and an increase in activity levels.

• Toromont Industries launched a new green manufacturing center in Bradford, Ontario, which increased its capacity and efficiency.

• Significant investments were made in both heavy and light fleets, creating potential for future revenue growth.

• The company expanded its U.S. footprint with a new facility in South Carolina.

• Rental market remains a significant focus area for the company, with plans to capture more market share.

• Toromont Industries continued its investment in technician training, leading to the growth of their service capacity.

• The expansion and modernization of the Bradford facility is expected to bring about an increase in efficiency and capacity.

• The company reported strong interest in hiring for its new Bradford facility.

More details: TOROMONT INDUSTRIES LTD IR

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