THE TORO COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
| February 2, | February 3, | |||||||
| 2007 | 2006 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 30,051 | $ | 19,744 | ||||
| Receivables, net | 357,165 | 313,157 | ||||||
| Inventories, net | 307,415 | 295,687 | ||||||
| Prepaid expenses and other current assets | 14,905 | 18,049 | ||||||
| Deferred income taxes | 55,801 | 56,099 | ||||||
| Total current assets | 765,337 | 702,736 | ||||||
| Property, plant, and equipment, net | 169,304 | 165,078 | ||||||
| Deferred income taxes | 1,862 | — | ||||||
| Goodwill and other assets, net | 97,933 | 98,493 | ||||||
| Total assets | $ | 1,034,436 | $ | 966,307 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current portion of long-term debt | $ | 75,000 | $ | 35 | ||||
| Short-term debt | 127,100 | 51,900 | ||||||
| Accounts payable | 106,881 | 95,213 | ||||||
| Accrued liabilities | 230,485 | 242,453 | ||||||
| Total current liabilities | 539,466 | 389,601 | ||||||
| Long-term debt, less current portion | 100,000 | 175,000 | ||||||
| Long-term deferred income taxes | — | 872 | ||||||
| Deferred revenue and other long-term liabilities | 9,142 | 9,423 | ||||||
| Stockholders’ equity | 385,828 | 391,411 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,034,436 | $ | 966,307 | ||||
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THE TORO COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Dollars in thousands)
| Three Months Ended | ||||||||
| February 2, | February 3, | |||||||
| 2007 | 2006 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 18,450 | $ | 14,279 | ||||
| Adjustments to reconcile net earnings to net cash used in operating activities: | ||||||||
| Equity losses from investments | 59 | 359 | ||||||
| Provision for depreciation and amortization | 10,334 | 10,534 | ||||||
| Gain on disposal of property, plant, and equipment | (46 | ) | (29 | ) | ||||
| Stock-based compensation expense | 1,944 | 2,510 | ||||||
| Decrease in deferred income taxes | 90 | 596 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | (62,588 | ) | (17,599 | ) | ||||
| Inventories | (67,261 | ) | (60,085 | ) | ||||
| Prepaid expenses and other assets | (5,737 | ) | (2,270 | ) | ||||
| Accounts payable, accrued expenses, and deferred revenue | (6,099 | ) | (1,623 | ) | ||||
| Net cash used in operating activities | (110,854 | ) | (53,328 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property, plant, and equipment | (12,478 | ) | (8,026 | ) | ||||
| Proceeds from disposal of property, plant, and equipment | 47 | 126 | ||||||
| (Increase) decrease in other assets | (754 | ) | 3,118 | |||||
| Acquisition, net of cash acquired | (1,088 | ) | — | |||||
| Net cash used in investing activities | (14,273 | ) | (4,782 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Increase in short-term debt | 126,780 | 51,575 | ||||||
| Repayments of long-term debt | — | (11 | ) | |||||
| Excess tax benefits from stock-based awards | 2,758 | 12,275 | ||||||
| Proceeds from exercise of stock-based awards | 4,145 | 4,101 | ||||||
| Purchases of Toro common stock | (29,029 | ) | (27,587 | ) | ||||
| Dividends paid on Toro common stock | (4,929 | ) | (3,923 | ) | ||||
| Net cash provided by financing activities | 99,725 | 36,430 | ||||||
| Effect of exchange rates on cash | (70 | ) | 22 | |||||
| Net decrease in cash and cash equivalents | (25,472 | ) | (21,658 | ) | ||||
| Cash and cash equivalents as of the beginning of the fiscal period | 55,523 | 41,402 | ||||||
| Cash and cash equivalents as of the end of the fiscal period | $ | 30,051 | $ | 19,744 | ||||
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