The Toro Company (TTC) Q2 2022 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you standing by and welcome to The Toro Company’s Fiscal Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to your host, Julie Kerekes, Treasurer and Senior Managing Director of Global Tax and Investor Relations. You may begin.

Julie Kerekes

Thank you and good morning everyone. Our earnings release was issued this morning and a copy can be found in the Investor Information section of our corporate website, thetorocompany.com.

On our call today are Rick Olson, Chairman and Chief Executive Officer; and Renee Peterson, Vice President and Chief Financial Officer.

We begin with our customary forward-looking statement policy. During this call, we will make forward-looking statements regarding our business and future financial and operating results. You all are aware of the inherent difficulties, risks and uncertainties in making predictive statements. Our earnings release, as well as our SEC filings detail some of the important risk factors that may cause our actual results to differ materially from those in our predictions. Please note that we do not have a duty to update our forward-looking statements.

In addition, during this call, we will reference certain non-GAAP financial measures. Reconciliations of historical non-GAAP financial measures to reported GAAP financial measures can be found in our earnings release or on our website. We believe these measures may be useful in performing meaningful comparisons of past and present operating results and cash flows to understand the performance of our ongoing operations and how management views the business. Non-GAAP financial measures should not be considered superior to or a substitute for the GAAP financial measures presented in our earnings release and this call.

With that, I will now turn the call over to Rick.

Rick Olson

Thanks, Julie, and good morning, everyone.

The Toro Company has a long history of consistently delivering financial results, in line with our expectations, and this quarter was no exception. For the second quarter, we drove 8.7% top-line net sales growth. And that was on top of our strong 23.6% growth in the second quarter of fiscal 2021.

Our top-line growth was driven by net price realization, continued strong demand for our innovative products and our ability to produce in what remains a highly dynamic operating environment. We continue to see broad-based demand across our professional businesses. We also saw a solid demand in our Residential segment for zero-turn riding mowers, although the late spring impacted retail demand for other products. Importantly, we saw areas of incremental improvements in our supply chain.