The Toro Company (NYSE:TTC) Q2 2023 Earnings Call Transcript

So we are extremely excited about the progress with electric and battery — electric battery products. One element to getting to that percentage is the consumer or the end customer uptake and their acceptance of electric as a solution. We will continue to offer both electric and battery solutions and in some categories, when you get into a more economically challenged time, it’s a bigger upfront purchase. So we know that there are factors going into the decision. We are absolutely committed to our path to our goal, and we are doing our part to make sure we’ve got the solutions in place to be able to achieve that.

David MacGregor: Right, right, thank you for that. Last question from me is just on the acquisition pipeline. You’ve done fairly significant transactions in 2019, 2020, 2021, 2022, nothing so far in 2023. I know that window kind of opens and closes over time based on a number of factors. Just wondering how you’re thinking about the acquisition opportunity right now within the bigger capital allocation thought process and what the pipeline looks like right now in terms of the next maybe three to four quarters?

Rick Olson: We are — we’ve talked about it a number of times, we’re very disciplined about our capital allocation process, and those priorities remain the same. Acquisition opportunities and M&A are part of those priorities and the process never ends. So even after a significant acquisition we are talking the next day to the — to another set of people that might be of interest. I would say there’s no significant difference in the amount of opportunities that might be out there. And that process continues. And again, the most important thing for us is not the opportunities. It’s the discipline to make sure we have acquisitions that we don’t regret in the future. We don’t regret the acquisitions that we’ve made. We are delighted with what we’ve done in the last few years.

David MacGregor: Thanks very much, and good luck.

Rick Olson: Okay. Thank you.

Julie Kerekes: Thank you.

Operator: This concludes the Q&A session. Ms. Kerekes, please proceed with the closing remarks.

Julie Kerekes: Thank you, Tanya, and thank you all for your questions and interest in The Toro Company. We look forward to talking with everyone again in September to discuss our fiscal 2023 third quarter results.

Operator: Thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Good day.