The Toro Company (TTC) 8-K/A Results of Operations and Financial Condition

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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