The Toro Company (NYSE:TTC) Q3 2020 Earnings Conference Call - Final Transcript

Sep 03, 2020 • 11:00 am ET

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The Toro Company (NYSE:TTC) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. And welcome to The Toro Company's Third Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Nicholas Rhoads, Managing Director of Investor Relations. Please go ahead.

Executive
Nicholas Rhoads

Thank you, and good morning. Our earnings release was issued this morning by Business Wire 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, Treasurer, 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 are all 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, including those related to COVID-19 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. The company believes these measures may be useful in performing meaningful comparisons of past and present operating results to understand the performance of its ongoing operations and how management views the business. Such non-GAAP financial measures should not be considered superior to as a substitute for or as an alternative to and should be considered in conjunction with the GAAP financial measures presented in our earnings release and this call.

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

Executive
Richard M. Olson

Thanks, Nick, and good morning. Our third quarter was a strong and dynamic one given the circumstances. Since COVID-19 began to spread across the globe, the macroeconomic environment went from robust growth to recession almost overnight. Now, we are seeing more positive economic and market trends, but the rates of the recovery and the status of the virus remain highly variable. In short, the environment in which we conduct business remains uncertain.

For the third quarter, we were pleased to have achieved top line growth on the strength of our residential segment as favorable weather, our new product lineup and stay-at-home trends drove robust demand in the mass and dealer channels. Incremental sales from our successful Venture Products acquisition also contributed to third quarter growth. I'm deeply grateful for the extraordinary efforts and the commitments of our team during these challenging times.

The health and safety of our people remains our top priority, as we support and deliver value to our customers. Our talented global team of more than 9,000 remained resilient and solution-oriented. Among other things, we modified production lines and workflow to accommodate social distancing in manufacturing, continued to work effectively, while adhering to local safety guidelines, developed methods to