Toro’s sales plow ahead in Q2
The Toro Company made solid progress in the second fiscal quarter of 2014, with net sales up 5.8% and earnings pushing ahead 11.1%.
Total sales for the three-month period ended May 2, 2014 were $745.0 million, up from $704.5 million a year ago. Sales for the six-month period were also up 3.6%.
Meanwhile, net earnings came in at $87.1 million for the quarter, compared to $78.4 million in 2013.
“I’m proud of our team’s execution that delivered record sales and earnings for the quarter despite challenging spring weather conditions for the second straight year,” said Chairman and CEO Michael Hoffman. “Although retail sales of some residential products were hampered by the late spring, we experienced strong growth in our landscape maintenance business."
Despite challenging winter weather conditions that impacted sales across the industry, Toro attributed part of its success to strong demand for snow products and landscape maintenance equipment.
"Contractors who benefited from the robust snow season last winter invested in more new turf equipment during the quarter, favoring our productivity-enhancing mowers," added Hoffman. "In addition, shipments of golf equipment and irrigation products increased due to channel demand for our innovative new product offerings, including the recently introduced INFINITY sprinklers.”
Cedar Creek boosts presence in Mississippi
Oklahoma City-based Cedar Creek entered into a lease agreement to open a new location in Long Beach, Mississippi, by Dec. 1.
According to Cedar Creek CEO Bill Adams, “This is a great strategic fit as it positions us to provide optimal service to customers along the Gulf Coast from the Florida panhandle across the southern tier of Alabama, Mississippi and Louisiana.“
Cedar Creek covers some of the Gulf Coast currently, but the company thinks the facility will improve service to existing customers while providing access to new customers.
Cedar Creek is a leading wholesale building material distribution company with 24 locations serving over 30 states. In May 2010, Cedar Creek was recapitalized by Boston-based Charlesbank Capital Partners, with the goal of providing flexible capital for the company to grow beyond its current trade areas.
Lawsuit targets Ply Gem filings
A new class action suit against Ply Gem Holdings is charging the exterior building products manufacturer with misrepresenting its financial performance.
Robbins Geller Rudman & Dowd LLP announced the suit on Monday, which is being filed on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of Ply Gem shares related to its May 22, 2013 IPO.
The complaint alleges that Ply Gem violated the Securities Act by deliberately neglecting to disclose information in its Registration Statement that had a material effect on its future operating results.
Among the alleged "lies by ommission" were Ply Gem’s agreement to buy back inventory from The Home Depot, which stipulated that Ply Gem initially sell the retailer a large volume of low-priced, low-margin product that Ply Gem had difficulty selling during April and May of last year.
Additionally, the Registration Statement allegedly failed to properly disclose all material risks and changes in Ply Gem’s business affairs.
Lawyers allege that these ommitted events altered the company’s operating results for the worse during the second quarter ended June 29, 2013 — such that its common shares are now trading at a level that’s 50% lower than the IPO price.
A Ply Gem spokesperson told HCN that the company has not yet been served with the lawsuit and does not comment on active litigation.