Actuant Reports Improved Third Quarter Results; Raises Fiscal 2011 Guidance and Provides Initial Fiscal 2012 Outlook
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2011.
Highlights
-- A 46% increase in diluted earnings per share from continuing operations
("EPS") to $0.51, compared to $0.35 in the prior year quarter (excluding
prior year restructuring and tax items - see attached reconciliation of
earnings.)
-- Core sales growth in all four segments, resulting in a consolidated 14%
year-over-year increase in core revenue (total sales less the impact of
acquisitions, divestitures and foreign currency rate changes).
-- Year-over-year operating profit margin expansion of 140 basis points,
excluding prior year restructuring costs.
-- Strong cash flow from operations totaling $75 million, putting the
Company on track for delivering its full year cash flow target.
-- Completed the previously announced acquisition of Weasler Engineering,
Inc. ("Weasler") after quarter end, strengthening the Engineered
Solutions segment.
-- Introduced fiscal 2012 sales and EPS outlook of $1.60-$1.65 billion and
$1.80-$2.00, respectively.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "Actuant is executing well and delivering terrific results, including another quarter of double digit organic sales growth, margin expansion, higher than expected EPS and healthy cash flow. We reported year-over-year core sales growth in all four segments, with sequential increases in three of the four segments and in excess of 20% year-over-year core growth in both Industrial and Energy. Incremental profits on the higher sales led to year-over-year operating margin expansion of 140 basis points and EPS above the top of our guidance range. We generated robust free cash flow and consistent with our business model, deployed it in growth investments, including the acquisition of Weasler just after quarter-end. It was a strong performance quarter by all measures and we expect that momentum to continue into our fourth quarter and next fiscal year."
Consolidated Results from Continuing Operations
Consolidated sales for the third quarter were $393 million, 27% higher than the comparable prior year quarter. Core sales increased 14% with acquisitions contributing an additional 9% and the weaker U.S. dollar 4%. Earnings and EPS from continuing operations were $38.4 million and $0.51, respectively, compared to $28.3 million and $0.39 in the comparable prior year quarter. Results for the third quarter of fiscal 2010 included pre-tax restructuring costs as well as net income tax adjustments. Excluding these items, fiscal 2011 third quarter EPS from continuing operations of $0.51 was 46% higher than the $0.35 in the prior year. (See attached reconciliation of earnings.)
Sales for the nine months ended May 31, 2011 were $1,042 million, 23% higher than the $850 million in the comparable prior year period. Excluding the impact of the weaker US dollar (+1%) and acquisitions (+8%), year-to-date core sales increased 14%. Earnings and EPS from continuing operations for the nine months ended May 31, 2011 were $87.2 million, or $1.17 per diluted share, compared to $49.4 million, or $0.69 per diluted share for the comparable prior year period. Year-to-date fiscal 2010 results included pre-tax restructuring costs as well as net income tax adjustments. Excluding these items, current year-to-date EPS of $1.17 was 52% higher than the $0.77 for the comparable prior year period. (See attached reconciliation of earnings.)
Discontinued Operations
Discontinued operations represent the results for the European Electrical business for all periods presented. The $2.0 million ($0.02 per diluted share) third quarter loss primarily reflects post closing adjustments on the European Electrical business sale that took place in the second fiscal quarter.
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
2011 2010 2011 2010
Sales $ 107.8 $ 79.7 $ 284.1 $ 214.3
Operating Profit $ 29.5 $ 20.4 $ 69.9 $ 45.0
Adjusted Operating Profit(1) $ 29.5 $ 20.7 $ 69.9 $ 50.4
Adjusted Operating Profit %(1) 27.4 % 26.0 % 24.6 % 23.5 %
(1) Excludes restructuring costs of $0.3 million and $5.4 million for the three and nine months ended May 31, 2010.
Third quarter fiscal 2011 Industrial segment sales were $108 million, 35% higher than the prior year. Excluding foreign currency rate changes (+4%), and the benefit of the Integrated Solutions (IS) acquisitions (+8%), Industrial segment core sales increased 23%. This compares to year-over-year second quarter core sales growth of 15%. The accelerated year-over-year growth rate was driven by robust global demand across nearly all served markets, the introduction of new products and a focus on higher growth vertical markets. Adjusted operating profit margins also increased sequentially and year-over-year due to incremental volumes and favorable mix.
Energy Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
2011 2010 2011 2010
Sales $ 78.0 $ 56.6 $ 210.3 $ 174.6
Operating Profit $ 13.5 $ 7.2 $ 32.2 $ 22.5
Adjusted Operating Profit(2) $ 13.5 $ 7.3 $ 32.2 $ 24.4
Adjusted Operating Profit %(2) 17.4 % 12.9 % 15.3 % 14.0 %
(2) Excludes restructuring costs of $0.1 million and $1.9 million for the three and nine months ended May 31, 2010.
Fiscal 2011 third quarter year-over-year Energy segment sales increased 38% to $78 million. Excluding the 9% contribution from acquisitions and 7% from foreign currency rate changes, core sales increased 22% due primarily to higher activity levels across virtually all of the segment's primary markets, reflecting increased capital and maintenance related spending globally. Current year third quarter adjusted operating profit margins improved 450 basis points year-over-year due to operating leverage on the higher volumes.
Electrical Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
2011 2010 2011 2010
Sales $ 80.3 $ 62.0 $ 205.9 $ 171.0
Operating Profit $ 5.5 $ 6.8 $ 14.2 $ 13.4
Adjusted Operating Profit(3) $ 5.5 $ 7.3 $ 14.2 $ 16.9
Adjusted Operating Profit %(3) 6.8 % 11.8 % 6.9 % 9.9 %
(3) Excludes restructuring costs of $0.5 million and $3.5 million for the three and nine months ended May 31, 2010.
Electrical segment fiscal 2011 third quarter sales were $80 million, 30% higher than the comparable prior year quarter. Excluding foreign currency rate changes (+1%) and the Mastervolt acquisition (+26%), core sales increased 3%, with growth in the North American marine, utility and OEM markets. Results from Mastervolt, which was acquired in December 2010, reflect marine market sales in line with expectations but weaker than expected solar inverter product sales due to European feed-in-tariff reductions and high channel inventory levels. Third quarter adjusted operating profit and margins were adversely impacted on a segment level basis due to solar market weakness which is expected to continue into the fourth fiscal quarter.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
2011 2010 2011 2010
Sales $ 126.7 $ 111.7 $ 341.6 $ 290.3
Operating Profit $ 20.0 $ 13.2 $ 47.2 $ 22.2
Adjusted Operating Profit(4) $ 20.0 $ 13.6 $ 47.2 $ 25.0
Adjusted Operating Profit %(4) 15.8 % 12.1 % 13.8 % 8.6 %
(4) Excludes restructuring costs of $0.4 million and $2.8 million for the three and nine months ended May 31, 2010.
Third quarter fiscal 2011 Engineered Solutions segment sales increased 13% from the prior year to $127 million. Excluding the impact of the weaker U.S. dollar (+4%), year-over-year core sales grew 9%. This increase reflects strong demand from the global heavy-duty truck, agriculture, construction equipment and defense markets. As expected, year-over-year segment sales growth moderated sequentially, reflecting more difficult prior year comparisons and a decline in convertible top actuation revenues due to the anniversary of prior year new vehicle launches. Third quarter adjusted operating margins increased 370 basis points year-over-year due to margin leverage on the higher volumes and operational improvements.
Corporate
Corporate expenses for the third quarter of fiscal 2011 were $10.5 million. The approximate $3 million year-over-year increase results from training expenditures, growth and innovation initiative spending and provisions for idle facility holding costs.
Financial Position
Net debt at May 31, 2011 was $399 million (total debt of $467 million less $68 million of cash), a decrease of $69 million from the beginning of the quarter as the Company's strong third quarter free cash flow was used to reduce revolver borrowings. In early June 2011, the Company deployed approximately $155 million of capital to fund the Weasler acquisition. Total quarter-end availability under the Company's $600 million revolver, including the Weasler acquisition, was approximately $445 million at May 31, 2011.
Outlook
Arzbaecher continued, "Through the first nine months of fiscal 2011, Actuant has delivered strong financial results while simultaneously investing for future growth. We expect this momentum to continue into the fourth quarter and fiscal 2012. Given our strong third quarter results and the acquisition of Weasler, we have increased our full year fiscal 2011 sales guidance to $1.43-$1.44 billion. Our expectation is that Weasler will be EPS neutral in the fourth fiscal quarter due to one-time transaction costs and purchase accounting charges. However, we have raised our full year EPS guidance to $1.60-$1.65 to take into account current business momentum, including higher than expected third quarter earnings. We continue to forecast free cash flow in the $140-$150 million range for the fiscal year.
Based on our evaluation of both broad economic indicators and Actuant's current business trends, we anticipate our businesses will continue to expand in fiscal 2012, but at a moderating growth rate as the year progresses. On a consolidated basis, we expect core growth in the range of 5%-8% for the full year with our later cycle energy and infrastructure end markets showing the most growth. The fiscal 2011 Mastervolt and Weasler acquisitions will also contribute to fiscal 2012 growth. Excluding future acquisitions, we are projecting fiscal 2012 EPS of $1.80-$2.00 on sales of approximately $1.60-$1.65 billion. Projected free cash flow for fiscal 2012 is $155-$165 million.
We remain committed to executing our proven business model which has rewarded shareholders, employees and stakeholders over the past decade with a strong track record of sales, earnings and cash flow growth."
Conference Call Information
An investor conference call is scheduled for 10am CT today, June 16, 2011. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.
Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
About Actuant Corporation
Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.
(tables follow)
Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
May 31, August 31,
2011 2010
ASSETS
Current assets
Cash and cash equivalents $ 68,299 $ 40,222
Accounts receivable, net 233,620 185,693
Inventories, net 213,265 146,154
Deferred income taxes 33,011 30,701
Other current assets 25,144 12,578
Current assets of discontinued operations - 44,802
Total current assets 573,339 460,150
Property, plant and equipment, net 110,769 108,382
Goodwill 812,095 704,889
Other intangible assets, net 419,395 336,978
Other long-term assets 13,617 11,304
Total assets $ 1,929,215 $ 1,621,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ - $ -
Trade accounts payable 172,252 130,051
Accrued compensation and benefits 55,840 53,212
Current maturities of long-term debt 1,250 -
Income taxes payable 58,749 50,318
Other current liabilities 75,852 74,561
Current liabilities of discontinued operations - 37,695
Total current liabilities 363,943 345,837
Long-term debt 465,966 367,380
Deferred income taxes 131,881 110,230
Pension and postretirement benefit accruals 27,723 28,072
Other long-term liabilities 61,839 30,463
Shareholders' equity
Capital stock 13,724 13,610
Additional paid-in capital (157,290 ) (175,157 )
Retained earnings 1,038,558 968,373
Accumulated other comprehensive loss (17,129 ) (67,105 )
Stock held in trust (2,081 ) (1,934 )
Deferred compensation liability 2,081 1,934
Total shareholders' equity 877,863 739,721
Total liabilities and shareholders' equity $ 1,929,215 $ 1,621,703
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
2011 2010 2011 2010
Net sales $ 392,777 $ 310,068 $ 1,041,887 $ 850,146
Cost of products sold 238,739 193,882 640,969 537,474
Gross profit 154,038 116,186 400,918 312,672
Selling, administrative 89,166 70,806 244,453 212,421
and engineering expenses
Amortization of intangible 6,871 5,285 19,846 16,071
assets
Operating profit 58,001 40,095 136,619 84,180
Financing costs, net 7,850 7,782 23,640 24,115
Other expense (income), 331 314 1,276 362
net
Earnings from continuing
operations before income 49,820 31,999 111,703 59,703
tax expense
Income tax expense 11,460 3,706 24,540 10,255
Earnings from continuing 38,360 28,293 87,163 49,448
operations
Loss from discontinued
operations, net of income (2,002 ) (6,458 ) (16,986 ) (8,602 )
taxes
Net earnings $ 36,358 $ 21,835 $ 70,177 $ 40,846
Earnings from continuing
operations per share
Basic $ 0.56 $ 0.42 $ 1.28 $ 0.73
Diluted 0.51 0.39 1.17 0.69
Earnings per share
Basic $ 0.53 $ 0.32 $ 1.03 $ 0.60
Diluted 0.49 0.30 0.95 0.57
Weighted average common
shares outstanding
Basic 68,354 67,642 68,208 67,593
Diluted 75,571 74,389 75,314 74,156
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
2011 2010 2011 2010
Operating Activities
Net earnings $ 36,358 $ 21,835 $ 70,177 $ 40,846
Adjustments to reconcile
net earnings to net
cash provided by operating
activities:
Depreciation and 12,959 12,064 38,143 39,079
amortization
Net loss (gain) on disposal 2,002 - 15,744 (334 )
of businesses
Stock-based compensation 3,280 2,146 8,093 6,044
expense
Provision (benefit) for (908 ) 155 (2,298 ) 682
deferred income taxes
Amortization of debt
discount and debt issuance 495 1,005 2,409 2,964
costs
Other non-cash adjustments 28 (295 ) (18 ) (707 )
Changes in components of
working capital and other:
Accounts receivable (18,726 ) (16,592 ) (27,752 ) (28,555 )
Expiration of accounts
receivable securitization - - - (37,106 )
program
Inventories (13,964 ) 1,460 (39,533 ) (3,899 )
Prepaid expenses and other 1,939 84 5,989 2,372
assets
Trade accounts payable 24,704 12,591 18,400 24,680
Income taxes payable 1,634 5,701 6,904 9,235
Accrued compensation and 10,065 8,701 646 16,994
benefits
Other accrued liabilities 14,936 2,835 (1,806 ) (2,721 )
Net cash provided by 74,802 51,690 95,098 69,574
operating activities
Investing Activities
Proceeds from sale of
property, plant and 93 390 359 1,073
equipment
Proceeds from sale of
businesses, net of - - 3,463 7,516
transaction costs
Capital expenditures (6,552 ) (6,437 ) (14,843 ) (13,213 )
Business acquisitions, net (1,514 ) (27,248 ) (160,047 ) (29,248 )
of cash acquired
Net cash used in investing (7,973 ) (33,295 ) (171,068 ) (33,872 )
activities
Financing Activities
Net borrowings (repayments)
on revolving credit (41,155 ) (11,579 ) 14 182
facilities
Issuance of term loan - - 100,000 -
Repurchases of 2% - - (34 ) (22,894 )
Convertible Notes
Debt issuance costs - - (5,197 ) -
Stock option exercises and 472 682 7,285 1,692
related tax benefits
Cash dividend - - (2,716 ) (2,702 )
Net cash provided by (used (40,683 ) (10,897 ) 99,352 (23,722 )
in) financing activities
Effect of exchange rate 1,753 (927 ) 4,695 (1,084 )
changes on cash
Net increase in cash and 27,899 6,571 28,077 10,896
cash equivalents
Cash and cash equivalents - 40,400 15,710 40,222 11,385
beginning of period
Cash and cash equivalents - $ 68,299 $ 22,281 $ 68,299 $ 22,281
end of period
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2010 (1) FISCAL 2011 (1)
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
SALES
INDUSTRIAL $ 65,308 $ 69,235 $ 79,744 $ 85,696 $ 299,983 $ 87,392 $ 88,935 $ 107,759 $ 284,086
SEGMENT
ENERGY SEGMENT 64,065 53,862 56,645 61,151 235,723 70,743 61,587 78,002 210,332
ELECTRICAL 54,065 54,927 61,967 62,743 233,702 55,396 70,176 80,329 205,901
SEGMENT
ENGINEERED
SOLUTIONS 89,202 89,414 111,712 100,772 391,100 104,881 110,000 126,687 341,568
SEGMENT
TOTAL $ 272,640 $ 267,438 $ 310,068 $ 310,362 $ 1,160,508 $ 318,412 $ 330,698 $ 392,777 $ - $ 1,041,887
% SALES GROWTH
INDUSTRIAL -28 % -3 % 27 % 39 % 5 % 34 % 28 % 35 % 33 %
SEGMENT
ENERGY SEGMENT -13 % -10 % -9 % -4 % -9 % 10 % 14 % 38 % 20 %
ELECTRICAL -20 % -8 % 10 % 7 % -3 % 2 % 28 % 30 % 20 %
SEGMENT
ENGINEERED
SOLUTIONS -14 % 23 % 46 % 31 % 19 % 18 % 23 % 13 % 18 %
SEGMENT
TOTAL -19 % 1 % 20 % 19 % 4 % 17 % 24 % 27 % 23 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,149 $ 29,517 $ 69,853
SEGMENT
ENERGY SEGMENT 11,502 5,615 7,326 8,283 32,726 11,858 6,792 13,545 32,195
ELECTRICAL 4,073 5,539 7,309 7,446 24,367 3,760 4,945 5,462 14,167
SEGMENT
ENGINEERED
SOLUTIONS 5,481 6,007 13,554 10,242 35,284 13,802 13,425 19,977 47,204
SEGMENT
CORPORATE / (5,471 ) (5,561 ) (7,351 ) (7,710 ) (26,093 ) (8,035 ) (8,265 ) (10,500 ) (26,800 )
GENERAL
TOTAL -
EXCLUDING $ 29,439 $ 27,447 $ 41,541 $ 40,039 $ 138,466 $ 41,572 $ 37,046 $ 58,001 $ - $ 136,619
RESTRUCTURING
CHARGES
RESTRUCTURING (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - - - -
CHARGES
TOTAL $ 26,608 $ 17,479 $ 40,093 $ 37,592 $ 121,772 $ 41,572 $ 37,046 $ 58,001 $ - $ 136,619
OPERATING
PROFIT %
INDUSTRIAL 21.2 % 22.9 % 26.0 % 25.4 % 24.1 % 23.1 % 22.7 % 27.4 % 24.6 %
SEGMENT
ENERGY SEGMENT 18.0 % 10.4 % 12.9 % 13.5 % 13.9 % 16.8 % 11.0 % 17.4 % 15.3 %
ELECTRICAL 7.5 % 10.1 % 11.8 % 11.9 % 10.4 % 6.8 % 7.0 % 6.8 % 6.9 %
SEGMENT
ENGINEERED
SOLUTIONS 6.1 % 6.7 % 12.1 % 10.2 % 9.0 % 13.2 % 12.2 % 15.8 % 13.8 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 10.8 % 10.3 % 13.4 % 12.9 % 11.9 % 13.1 % 11.2 % 14.8 % 13.1 %
EXCLUDING
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ 15,633 $ 16,639 $ 21,632 $ 24,268 $ 78,172 $ 22,449 $ 22,245 $ 31,227 $ 75,921
SEGMENT
ENERGY SEGMENT 15,493 10,072 11,353 11,731 48,649 15,745 10,475 16,778 42,998
ELECTRICAL 5,675 6,988 8,632 8,876 30,171 5,067 8,075 8,208 21,350
SEGMENT
ENGINEERED
SOLUTIONS 8,981 10,168 17,373 14,379 50,901 17,184 16,346 23,878 57,408
SEGMENT
CORPORATE / (4,771 ) (4,339 ) (6,542 ) (7,252 ) (22,904 ) (7,161 ) (7,709 ) (9,462 ) (24,332 )
GENERAL
TOTAL -
EXCLUDING $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
RESTRUCTURING
CHARGES
RESTRUCTURING (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - - - -
CHARGES
TOTAL $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
EBITDA %
INDUSTRIAL 23.9 % 24.0 % 27.1 % 28.3 % 26.1 % 25.7 % 25.0 % 29.0 % 26.7 %
SEGMENT
ENERGY SEGMENT 24.2 % 18.7 % 20.0 % 19.2 % 20.6 % 22.3 % 17.0 % 21.5 % 20.4 %
ELECTRICAL 10.5 % 12.7 % 13.9 % 14.1 % 12.9 % 9.1 % 11.5 % 10.2 % 10.4 %
SEGMENT
ENGINEERED
SOLUTIONS 10.1 % 11.4 % 15.6 % 14.3 % 13.0 % 16.4 % 14.9 % 18.8 % 16.8 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 15.0 % 14.8 % 16.9 % 16.8 % 15.9 % 16.7 % 14.9 % 18.0 % 16.6 %
EXCLUDING
RESTRUCTURING
CHARGES
ACTUANT CORPORATION
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FISCAL 2010 (1) FISCAL 2011 (1)
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
OPERATING PROFIT
(LOSS),
EXCLUDING
RESTRUCTURING
CHARGES
INDUSTRIAL
SEGMENT
OPERATING
PROFIT (GAAP $ 13,676 $ 10,937 $ 20,374 $ 21,357 $ 66,344 $ 20,187 $ 20,149 $ 29,517 $ 69,853
MEASURE)
RESTRUCTURING 178 4,910 329 421 5,838 - - - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,149 $ 29,517 $ - $ 69,853
(NON-GAAP
MEASURE)
ENERGY SEGMENT
OPERATING
PROFIT (GAAP $ 11,359 $ 3,922 $ 7,203 $ 8,218 $ 30,702 $ 11,858 $ 6,792 $ 13,545 $ 32,195
MEASURE)
RESTRUCTURING 143 1,693 123 65 2,024 - - - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 11,502 $ 5,615 $ 7,326 $ 8,283 $ 32,726 $ 11,858 $ 6,792 $ 13,545 $ - $ 32,195
(NON-GAAP
MEASURE)
ELECTRICAL
SEGMENT
OPERATING
PROFIT (GAAP $ 2,186 $ 4,373 $ 6,775 $ 6,519 $ 19,853 $ 3,760 $ 4,945 $ 5,462 $ 14,167
MEASURE)
RESTRUCTURING 1,887 1,166 534 927 4,514 - - - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 4,073 $ 5,539 $ 7,309 $ 7,446 $ 24,367 $ 3,760 $ 4,945 $ 5,462 $ - $ 14,167
(NON-GAAP
MEASURE)
ENGINEERED
SOLUTIONS
OPERATING
PROFIT (GAAP $ 5,053 $ 3,995 $ 13,170 $ 9,463 $ 31,681 $ 13,802 $ 13,425 $ 19,977 $ 47,204
MEASURE)
RESTRUCTURING 428 2,012 384 779 3,603 - - - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 5,481 $ 6,007 $ 13,554 $ 10,242 $ 35,284 $ 13,802 $ 13,425 $ 19,977 $ - $ 47,204
(NON-GAAP
MEASURE)
CORPORATE
OPERATING
LOSS (GAAP $ (5,666 ) $ (5,748 ) $ (7,429 ) $ (7,965 ) $ (26,808 ) $ (8,035 ) $ (8,265 ) $ (10,500 ) $ (26,800 )
MEASURE)
RESTRUCTURING 195 187 78 255 715 - - - -
CHARGES
ADJUSTED
OPERATING
LOSS $ (5,471 ) $ (5,561 ) $ (7,351 ) $ (7,710 ) $ (26,093 ) $ (8,035 ) $ (8,265 ) $ (10,500 ) $ - $ (26,800 )
(NON-GAAP
MEASURE)
NET EARNINGS
(LOSS),
EXCLUDING
RESTRUCTURING
CHARGES,
INCOME TAX
ADJUSTMENTS AND
DISCONTINUED
OPERATIONS (2)
NET EARNINGS
(LOSS) (GAAP $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 7,929 $ 36,358 $ 70,177
MEASURE)
RESTRUCTURING
CHARGES, NET 1,804 6,863 1,069 1,938 11,674 - - - -
OF INCOME TAX
INCOME TAX - - 632 - 632 - - - -
ADJUSTMENTS
DISCONTINUED
OPERATIONS, 1,406 738 1,853 37,723 41,720 771 14,213 2,002 16,986
NET OF INCOME
TAX
$ 15,064 $ 14,758 $ 25,389 $ 22,847 $ 78,057 $ 26,661 $ 22,142 $ 38,360 $ - $ 87,163
DILUTED EARNINGS
(LOSS) PER
SHARE, EXCLUDING
RESTRUCTURING
CHARGES, INCOME
TAX ADJUSTMENTS,
AND DISCONTINUED
OPERATIONS (2)
NET EARNINGS
(LOSS) (GAAP $ 0.17 $ 0.10 $ 0.30 $ (0.22 ) $ 0.35 $ 0.35 $ 0.11 $ 0.49 $ 0.95
MEASURE)
RESTRUCTURING
CHARGES, NET 0.02 0.10 0.01 0.02 0.16 - - - -
OF INCOME TAX
INCOME TAX - - 0.01 - 0.01 - - - -
ADJUSTMENTS
DISCONTINUED
OPERATIONS, 0.02 0.01 0.03 0.51 0.56 0.01 0.19 0.02 0.22
NET OF INCOME
TAX
TOTAL
(NON-GAAP $ 0.21 $ 0.21 $ 0.35 $ 0.31 $ 1.08 $ 0.36 $ 0.30 $ 0.51 $ - $ 1.17
MEASURE)
EBITDA (3)
NET EARNINGS
(LOSS) (GAAP $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 7,929 $ 36,358 $ 70,177
MEASURE)
FINANCING 8,538 7,798 7,779 7,744 31,859 7,552 8,238 7,850 23,640
COSTS, NET
INCOME TAX 4,529 2,020 3,706 8,590 18,846 6,911 6,169 11,460 24,540
EXPENSE
DEPRECIATION
& 11,853 11,847 11,222 12,312 47,234 12,160 12,883 12,959 38,002
AMORTIZATION
DISCONTINUED
OPERATIONS, 1,406 738 6,458 37,723 46,325 771 14,213 2,002 16,986
NET OF INCOME
TAX
EBITDA
(NON-GAAP $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
MEASURE)
RESTRUCTURING 2,831 9,968 1,448 2,447 16,694 - - - -
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING
DISCONTINUED
OPERATIONS
AND $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
RESTRUCTURING
CHARGES
ACTUANT CORPORATION
FOOTNOTES FOR SUPPLEMENTAL UNAUDITED DATA AND RECONCILIATION OF GAAP MEASURES
TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FOOTNOTES
NOTE: The total of the individual quarters may not equal the annual total due
to rounding.
As a result of the global economic downturn in 2009, the Company
implemented various restructuring initiatives aimed at reducing its cost
structure and improving operational performance. These restructuring
actions were substantially completed at August 31, 2010. Fiscal 2011 first,
(1) second and third quarter operating results include $461, $359 and $862 of
restructuring charges, respectively, which are included in segment
operating profit, EBITDA and earnings per share, as the amounts are not
significant. However, fiscal 2010 operating profit, EBITDA and earnings per
share amounts exclude restructuring charges for comparability purposes.
A summary of restructuring charges included in cost of products sold is as
follows:
FISCAL 2010 FISCAL 2011
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Restructuring
- cost of $ 54 $ 692 $ 92 $ 259 $ 1,097 $ - $ - $ - $ - $ -
products sold
Net earnings and diluted earnings per share excluding restructuring charges
(2010 only), income tax adjustments and discontinued operations represent
net earnings and diluted earnings per share per the Condensed Consolidated
Statements of Earnings net of charges or credits for items to be
(2) highlighted for comparability purposes. These measures should not be
considered as an alternative to net earnings or diluted earnings per share
as an indicator of the Company's operating performance. However, this
presentation is important to investors for understanding the operating
results of the current portfolio of Actuant companies. The total of the
individual components may not equal due to rounding.
EBITDA represents net earnings before financing costs, net, income tax
expense, depreciation & amortization and discontinued operations. EBITDA is
not a calculation based upon generally accepted accounting principles
(GAAP). The amounts included in the EBITDA calculation, however, are
derived from amounts included in the Condensed Consolidated Statements of
Earnings data. EBITDA should not be considered as an alternative to net
earnings or operating profit as an indicator of the Company's operating
(3) performance, or as an alternative to operating cash flows as a measure of
liquidity. Actuant has presented EBITDA because it regularly reviews this
as a measure of the company's ability to incur and service debt. In
addition, EBITDA is used by many of our investors and lenders, and is
presented as a convenience to them. However, the EBITDA measure presented
may not always be comparable to similarly titled measures reported by other
companies due to differences in the components of the calculation. The
total of the individual quarters may not equal the annual total due to
rounding.
Source: Actuant Corporation
Released June 16, 2011