Ramsey County: Economic Development Authority to allow flexibility on housing projects
Ramsey County has established an Economic Development Authority, allowing the county to assist small businesses in areas such as technical, advisory services and expansion.
The county's Housing Redevelopment Authority previously was only able to fund specifically housing-related projects. With the addition of the EDA, the HRA's levy funding now can be used more broadly, according to District 6 Commissioner Mai Chong Xiong. Small business programming, for example, would be allowed.
The creation of the EDA is allowed due an omnibus bill signed last month by Gov. Tim Walz.
'This legislation allows Ramsey County to use the HRA levy more flexibly by expanding what it can fund without adding another tax,' Xiong said in a May 27 statement. 'That means deeper investments in small business support, commercial corridors, workforce infrastructure, and the stability of the neighborhoods we serve. Notably, the passage of the EDA comes at a critical time as counties brace for significant cuts to federal funding to housing, creating high-stakes urgency to stretch every local dollar further and smarter.'
City councils in the county who are members of the HRA must opt-in or opt-out of business programming through the passage of resolutions by June.
Expanding the HRA's authority supports the county in taking a more modern approach to an affordable housing plan, said Rep. Liz Lee, DFL-St. Paul, who authored the legislation in the Minnesota House. It will allow the county to focus on needs beyond just housing.
It could mean affordable housing units above a nonprofit laundromat, Lee said. It will help officials create a community people want to live in, rather than just concentrating those living in poverty into public housing.
Mixed-use projects can be challenging to develop across the entire county, said Josh Olson, Ramsey County's director of Community and Economic Development.
'I think the two things that I would say is, this is about flexibility more than anything else. It's about our opportunity to kind of support the community in a proactive but also holistic way.' Olson said. 'The other is, the county is going to remain focused on affordable housing. That is, and has been the lion's share of how we've spent the HRA, and I expect that to not change substantially even with this change in legislation.'
The flexibility ties into the county's Economic Competitiveness and Inclusion Plan, with the county focusing on adding affordable housing, redevelopment, businesses and workforce, Olson said.
'We've been in a housing crisis here, nationally, regionally, and we have felt that we still can intend to invest heavily through our multiple uses, but that investing solely in housing or narrowly in housing doesn't get the county out of a housing crisis,' Olson said. 'And so one aspect of that is in that intersection where it supports businesses, and that, in turn, supports job opportunities and job growth as well as wage growth. And so that's really kind of the nexus that links all these things.'
The county directed $11.1 million to affordable housing and redevelopment projects as part of the 2022-2023 budget.
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OPERATING RESULTS Gross margin and *adjusted gross margin for the second quarter were 33.1% and 33.4%, respectively, down from 33.6% for both in the same prior-year period. The change in gross margin was primarily due to higher material and manufacturing costs and inventory valuation adjustments, partially offset by product mix and productivity improvements. SG&A expense as a percentage of net sales for the second quarter was 19.8%, compared with 19.7% in the prior-year period, primarily driven by lower net sales volume. Operating earnings as a percentage of net sales were 13.3% for the second quarter, compared with 13.9% in the same prior-year period. *Adjusted operating earnings as a percentage of net sales for the second quarter were 13.7%, compared with 14.2% in the same prior-year period. Interest expense was $15.8 million for the second quarter, down $0.9 million from the same prior-year period. This decrease was primarily due to lower average interest rates. 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The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company's operating performance consist of gross profit, gross margin, operating earnings, earnings before income taxes, net earnings, diluted EPS, and the effective tax rate, each as adjusted. The non-GAAP financial measures included within this press release and the related earnings call that are utilized as measures of the company's liquidity consist of free cash flow and free cash flow conversion percentage. The Toro Company uses these non-GAAP financial measures in making operating decisions and assessing liquidity because it believes these non-GAAP financial measures provide meaningful supplemental information regarding core operational performance and cash flows, as a measure of the company's liquidity, and provide the company with a better understanding of how to allocate resources to both ongoing and prospective business initiatives. Additionally, these non-GAAP financial measures facilitate the company's internal comparisons for both historical operating results and competitors' operating results by factoring out potential differences caused by charges and benefits not related to its regular, ongoing business, including, without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The company believes that these non-GAAP financial measures, when considered in conjunction with the financial measures prepared in accordance with U.S. GAAP, provide investors with useful supplemental financial information to better understand its core operational performance and cash flows. Reconciliations of historical non-GAAP financial measures to the most comparable U.S. GAAP financial measures are included in the financial tables contained in this press release. These non-GAAP financial measures, however, should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the U.S. GAAP financial measures included within this press release and the company's related earnings call. These non-GAAP financial measures may differ from similar measures used by other companies. The Toro Company does not provide a quantitative reconciliation of the company's projected range for adjusted diluted EPS for fiscal 2025 to diluted EPS, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The company's adjusted diluted EPS guidance for fiscal 2025 excludes certain items that are inherently uncertain and difficult to predict, including certain non-cash, large and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. Due to the uncertainty of the amount or timing of these future excluded items, management does not forecast them for internal use and therefore cannot create a quantitative adjusted diluted EPS for fiscal 2025 to diluted EPS reconciliation without unreasonable efforts. A quantitative reconciliation of adjusted diluted EPS for fiscal 2025 to diluted EPS would imply a degree of precision and certainty as to these future items that does not exist and could be confusing to investors. From a qualitative perspective, it is anticipated that the differences between adjusted diluted EPS for fiscal 2025 to diluted EPS will consist of items similar to those described in the financial tables later in this release, including, for example and without limitation, certain non-cash, large, and/or unpredictable charges and benefits; acquisitions and dispositions; legal judgments, settlements, or other matters; and tax positions. The timing and amount of any of these excluded items could significantly impact the company's diluted EPS for a particular period. Forward-Looking Statements This news release contains forward-looking statements, which are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current assumptions and expectations of future events, and often can be identified by words such as 'anticipate,' 'believe,' 'become,' 'can,' 'continue,' 'could,' 'encourage,' 'estimate,' 'expect,' 'forecast,' 'goal,' 'guidance,' 'improve,' 'intend,' 'likely,' 'looking ahead,' 'may,' 'optimistic,' 'outlook,' 'plan,' 'possible,' 'potential,' 'pro forma,' 'project,' 'promise,' 'pursue,' 'should,' 'strive,' 'target,' 'will,' 'would,' 'seek,' variations of such words or the negative thereof, and similar expressions or future dates. Forward-looking statements involve risks and uncertainties that could cause actual events and results to differ materially from those projected or implied. Forward-looking statements in this release include the company's fiscal 2025 financial guidance, expectations regarding anticipated tariff impacts, reduction in volume from macro factors that have driven increased homeowner and channel caution, and continued strong demand and stable supply for underground construction and golf and grounds businesses, and other statements made under the "Outlook" section of this release. 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The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made. (Financial tables follow) Segment Data (Unaudited) (Dollars in millions) Three Months Ended Six Months Ended Segment net sales May 2, 2025 May 3, 2024 May 2, 2025 May 3, 2024 Professional $ 1,014.1 $ 1,005.6 $ 1,782.9 $ 1,762.1 Residential 297.4 335.6 518.4 575.7 Other 6.4 7.8 11.6 13.1 Total net sales* $ 1,317.9 $ 1,349.0 $ 2,312.9 $ 2,350.9 *Includes international net sales of: $ 255.6 $ 268.2 $ 467.0 $ 473.2 Three Months Ended Six Months Ended Segment earnings (loss) before income taxes May 2, 2025 May 3, 2024 May 2, 2025 May 3, 2024 Professional $ 202.1 $ 190.7 $ 329.3 $ 303.5 Residential 16.1 36.1 33.3 59.6 Other (49.5 ) (47.6 ) (127.8 ) (103.8 ) Total segment earnings before income taxes $ 168.7 $ 179.2 $ 234.8 $ 259.3 Expand THE TORO COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (Dollars in millions) May 3, 2024 October 31, 2024 ASSETS Cash and cash equivalents $ 176.5 $ 188.8 $ 199.5 Receivables, net 602.5 623.1 459.7 Inventories, net 1,119.8 1,105.0 1,038.9 Prepaid expenses and other current assets 80.1 102.3 66.8 Total current assets 1,978.9 2,019.2 1,764.9 Property, plant, and equipment, net 635.8 637.8 644.8 Goodwill 450.8 450.7 450.3 Other intangible assets, net 487.3 522.7 498.7 Right-of-use assets 110.9 117.3 114.5 Investment in finance affiliate 51.2 51.7 49.2 Deferred income taxes 58.6 31.0 45.0 Other assets 14.6 21.8 15.4 Total assets $ 3,788.1 $ 3,852.2 $ 3,582.8 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 20.0 $ 13.5 $ 10.0 Accounts payable 516.0 512.4 452.7 Accrued liabilities 536.7 503.2 493.0 Short-term lease liabilities 18.5 19.6 20.3 Total current liabilities 1,091.2 1,048.7 976.0 Long-term debt, less current portion 1,077.1 1,003.3 911.8 Long-term lease liabilities 96.2 103.2 99.1 Deferred income taxes 0.6 0.4 0.5 Other long-term liabilities 46.4 45.2 43.5 Stockholders' equity: Preferred stock — — — Common stock 99.0 104.0 101.5 Retained earnings 1,419.6 1,583.2 1,496.4 Accumulated other comprehensive loss (42.0 ) (35.8 ) (46.0 ) Total stockholders' equity 1,476.6 1,651.4 1,551.9 Total liabilities and stockholders' equity $ 3,788.1 $ 3,852.2 $ 3,582.8 Expand THE TORO COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in millions) Six Months Ended May 2, 2025 May 3, 2024 Cash flows from operating activities: Net earnings $ 189.6 $ 209.7 Adjustments to reconcile net earnings to net cash provided by operating activities: Non-cash income from finance affiliate (9.8 ) (10.4 ) Distributions from finance affiliate, net 7.8 9.3 Depreciation of property, plant, and equipment 48.0 43.4 Amortization of other intangible assets 15.6 17.5 Stock-based compensation expense 9.8 15.3 Other 0.9 0.6 Changes in operating assets and liabilities, net of the effect of acquisitions: Receivables, net (141.6 ) (214.6 ) Inventories, net (78.7 ) (15.6 ) Other assets 51.3 (1.0 ) Accounts payable 59.5 81.0 Other liabilities (29.3 ) (0.1 ) Net cash provided by operating activities 123.1 135.1 Cash flows from investing activities: Purchases of property, plant, and equipment (38.4 ) (39.5 ) Acquisition, net of cash acquired (4.2 ) — Proceeds from asset disposals 0.2 0.1 Proceeds from divestitures — 1.9 Net cash used in investing activities (42.4 ) (37.5 ) Cash flows from financing activities: Borrowings under debt arrangements 1 740.0 285.0 Repayments under debt arrangements 1 (565.0 ) (300.0 ) Proceeds from exercise of stock options 1.3 1.9 Payments of withholding taxes for stock awards (1.8 ) (2.5 ) Common stock repurchases (200.0 ) (10.0 ) Dividends paid on common stock (76.3 ) (75.1 ) Other (3.1 ) (2.7 ) Net cash used in financing activities (104.9 ) (103.4 ) Effect of exchange rates on cash and cash equivalents 1.2 1.5 Net decrease in cash and cash equivalents (23.0 ) (4.3 ) Cash and cash equivalents as of the beginning of the fiscal period 199.5 193.1 Cash and cash equivalents as of the end of the fiscal period $ 176.5 $ 188.8 Expand 1 Presentation of prior year revolving credit facility and long-term debt activity has been conformed to the current year presentation. 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Employee stock-based compensation activity, including the exercise of stock options, can be unpredictable and can significantly impact our net earnings, net earnings per diluted share, and effective tax rate. These amounts represent the discrete tax benefits recorded as excess tax deductions for stock-based compensation during the three and six month periods ended May 2, 2025 and May 3, 2024. Expand Reconciliation of Non-GAAP Liquidity Measures The company defines free cash flow as net cash provided by operating activities less purchases of property, plant and equipment. Free cash flow conversion percentage represents free cash flow as a percentage of net earnings. The company considers free cash flow and free cash flow conversion percentage to be non-GAAP liquidity measures that provide useful information to management and investors about the company's ability to convert net earnings into cash resources that can be used to pursue opportunities to enhance shareholder value, fund ongoing and prospective business initiatives, and strengthen the company's Consolidated Balance Sheets, after reinvesting in necessary capital expenditures required to maintain and grow the company's business. The following table provides a reconciliation of non-GAAP free cash flow and free cash flow conversion percentage to net cash provided by operating activities, which is the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, for the six month periods ended May 2, 2025 and May 3, 2024: Six Months Ended (Dollars in millions) May 2, 2025 May 3, 2024 Net cash provided by operating activities $ 123.1 $ 135.1 Less: Purchases of property, plant and equipment 38.4 39.5 Free cash flow $ 84.7 $ 95.6 Net earnings $ 189.6 $ 209.7 Free cash flow conversion percentage 44.7 % 45.6 % Expand
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