Actuant Reports Third Quarter Results; Provides Initial 2013 Outlook
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2012.
Highlights
- Diluted earnings per share (“EPS”) increased 18% year-over-year to $0.60 (continuing operations, excluding debt refinancing costs - see attached reconciliation of earnings.)
- Core sales growth of 4% (total sales less the impact of acquisitions, divestitures and foreign currency rate changes) led by the Energy segment with 23% core growth.
- Year-over-year operating profit margin expansion of 100 basis points.
- Cash flow from operations of $77 million.
- Completed the acquisition of Turotest, establishing an attractive position in the Brazil agriculture and off-highway markets.
- Introduced full year fiscal 2013 outlook with sales and EPS expected to be $1.665-$1.700 billion and $2.15-$2.30, respectively.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “We are pleased with the results for the third quarter. As expected, our growth rates moderated from the strong pace of the past nine quarters. We delivered financial metrics at the high end of our guidance range even with the impact of foreign currency headwinds. Solid results in the U.S. and in our later cycle businesses such as Energy more than offset some end market softness in Europe and China, highlighting the benefit of our diversity. We continue to execute on our strategic growth and operations initiatives and our capital structure has never been in better shape. This gives us confidence in our ability to drive continued strong performance. I want to thank our employees across the globe for their help in delivering another solid quarter.”
Consolidated Results
Consolidated sales for the third quarter were $429 million, 9% higher than the comparable prior year quarter. Core sales increased 4% with acquisitions contributing 8% partially offset by a negative 3% impact of the weaker Euro. Earnings and EPS from continuing operations were $34.4 million and $0.45, respectively, compared to $38.4 million and $0.51 in the comparable prior year quarter. Results for the third quarter of fiscal 2012 include pre-tax debt refinancing costs of $16.8 million, or $0.15 per diluted share after tax. Excluding these costs, fiscal 2012 third quarter EPS from continuing operations of $0.60 was 18% higher than the $0.51 in the prior year quarter. (See attached reconciliation of earnings.)
Sales for the nine months ended May 31, 2012 were $1.20 billion, 15% higher than the $1.04 billion in the comparable prior year period. Excluding the 10% impact from acquisitions and negative 1% impact of the weaker Euro, year-to-date core sales increased 6%. Earnings and EPS from continuing operations for the nine months ended May 31, 2012 were $103.8 million and $1.39, respectively, compared to $87.2 million and $1.17 in the comparable prior year period. Fiscal 2012 year-to-date results include pre-tax debt refinancing costs of $16.8 million, or $0.15 per diluted share after tax. Excluding these costs, fiscal 2012 year-to-date EPS from continuing operations of $1.54 was 32% higher than the $1.17 in the prior year. (See attached reconciliation of earnings.)
Segment Results |
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Industrial Segment |
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(US $ in millions) |
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Three Months Ended May 31, | Nine Months Ended May 31, | |||||||
2012 | 2011 | 2012 | 2011 | |||||
Sales | $110.1 | $107.8 | $308.7 | $284.1 | ||||
Operating Profit | $30.7 | $29.5 | $85.3 | $69.9 | ||||
Operating Profit % | 27.9% | 27.4% | 27.6% | 24.6% | ||||
Third quarter fiscal 2012 Industrial segment sales were $110 million, 2% higher than the prior year. Excluding the 3% negative impact of foreign currency rate changes, core sales increased 5% over the prior year’s strong third quarter. The growth was driven by generally strong industrial demand across our served end markets and geographies. The segment continues to benefit from its focus on Growth + Innovation (“G+I”) initiatives including new product introductions, vertical market strategies and emerging market penetration, as well as robust activity within Integrated Solutions. Year-over-year operating profit margins in the third quarter improved 50 basis points due primarily to the higher volumes, partially offset by incremental G+I investments and mix.
Energy Segment |
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(US $ in millions) |
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Three Months Ended May 31, | Nine Months Ended May 31, | |||||||
2012 | 2011 | 2012 | 2011 | |||||
Sales | $96.4 | $78.0 | $255.8 | $210.3 | ||||
Operating Profit | $18.5 | $13.5 | $43.4 | $32.2 | ||||
Operating Profit % | 19.2% | 17.4% | 17.0% | 15.3% | ||||
Fiscal 2012 third quarter year-over-year Energy segment sales increased 24% to $96 million. Excluding the 4% impact from acquisitions and negative 3% impact from foreign currency rate changes, core sales increased 23% reflecting continued higher activity levels across the segment’s diverse end markets. Maintenance spending in oil & gas, refinery, petrochemical and power generation markets, along with higher capital project activity in offshore energy, were the primary drivers. Quoting activity remains healthy and the breadth of geographies served continue to support a strong outlook. Third quarter operating profit margin improved 180 basis points from the prior year due to higher volumes partially offset by increased G+I spending.
Electrical Segment |
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(US $ in millions) |
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Three Months Ended May 31, | Nine Months Ended May 31, | |||||||
2012 | 2011 | 2012 | 2011 | |||||
Sales | $85.9 | $80.3 | $245.9 | $205.9 | ||||
Operating Profit | $8.8 | $5.5 | $19.6 | $14.2 | ||||
Operating Profit % | 10.3% | 6.8% | 8.0% | 6.9% | ||||
Electrical segment fiscal 2012 third quarter sales were $86 million, 7% higher than the comparable prior year quarter. Core sales increased 10%, while the impact of the weaker Euro was a 3% headwind. The strong core sales growth was broad based and reflected higher volumes in the solar, utility, industrial, retail and marine aftermarket channels. The marine OEM market, most notably in Europe, was modestly weaker than the prior year. Third quarter operating profit margin increased 350 basis points from the prior year due to the higher volumes and improved Mastervolt profitability.
Engineered Solutions Segment |
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(US $ in millions) |
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Three Months Ended May 31, | Nine Months Ended May 31, | |||||||
2012 | 2011 | 2012 | 2011 | |||||
Sales | $136.8 | $126.7 | $389.7 | $341.6 | ||||
Operating Profit | $18.5 | $20.0 | $50.7 | $47.2 | ||||
Operating Profit % | 13.5% | 15.8% | 13.0% | 13.8% | ||||
Third quarter fiscal 2012 Engineered Solutions segment sales increased 8% from the prior year to $137 million. Excluding the impact of the weaker Euro (-4%), and the Weasler & Turotest acquisitions (+23%), year-over-year core sales declined 11%, in line with expectations. Third quarter sales reflected lower OEM production levels for heavy-duty trucks in China and Europe as well as a decline in automotive sales. The segment benefited from increased demand in the North American heavy-duty truck, construction and agriculture markets. Third quarter operating profit margin declined 230 basis points from the segment’s record high in the prior year due to the lower core sales, partially offset by favorable acquisition mix.
Corporate
Corporate expenses for the third quarter of fiscal 2012 were $8.8 million, $1.7 million below the comparable prior year period as increased G+I spending at the corporate level was offset by lower incentive compensation and idle facility holding costs.
Financial Position
Net debt at May 31, 2012 was $319 million (total debt of $399 million less $80 million of cash), a reduction of approximately $148 million during the quarter. This decline was the result of robust quarterly cash flow and the conversion to common stock of $117 million of the Company’s 2% Convertible Bonds, which more than offset the deployment of approximately $11 million on acquisitions and $19 million in stock repurchases (buy-back of approximately 0.7 million shares of common stock). At May 31, 2012, the Company had a net debt to EBITDA leverage ratio of 1.1 times, and its entire $600 million revolver available.
Outlook
Commenting on Actuant’s outlook, Arzbaecher stated, “As we enter the fourth quarter, we are very pleased with the execution of our business model which is driving record sales, cash flow and EPS, while simultaneously investing for future growth. The moderating trends across our markets are in line with expectations, yet currency translation and European macroeconomic headwinds create uncertainty. Given these items, we expect to complete fiscal 2012 with full year sales of $1.60-1.61 billion and EPS in the $2.03-2.08 range. We project fiscal 2012 full year free cash flow to be in the $180-185 million range, representing a free cash flow to earnings conversion well above 100%.
As we look ahead to fiscal 2013, we expect to see more uneven end market demand, notably in Europe and China. Based on our current evaluation of broad economic indicators as well as Actuant’s business trends and specific growth drivers, we anticipate fiscal 2013 core sales growth of 3-5%. Assuming current foreign currency exchange rates and modest acquisition revenue carryover, we expect total sales of $1.665-1.700 billion. The benefit of volume, operational excellence initiatives, lower interest costs and completed share repurchases should drive our fiscal 2013 EPS expectation in the range of $2.15-2.30. We expect full year free cash flow in the $195-200 million range.
Consistent with past practice, all guidance excludes the impact of potential future acquisitions and share repurchases. Our acquisition pipeline is robust and with our strong cash flow and borrowing capacity, we are well positioned financially to fund both growth investments and opportunistic share buy-backs.
We are optimistic about Actuant’s future as we continue to invest in growth initiatives, pursue opportunities to strengthen our portfolio and improve our market position. We believe these activities will enable us to continue to create long-term shareholder value.”
Conference Call Information
An investor conference call is scheduled for 10am CDT today, June 20, 2012. 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, | ||||||||||||
2012 | 2011 | ||||||||||||
ASSETS | |||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 80,149 | $ | 44,221 | |||||||||
Accounts receivable, net | 237,438 | 223,760 | |||||||||||
Inventories, net | 206,389 | 223,235 | |||||||||||
Deferred income taxes | 32,206 | 32,461 | |||||||||||
Other current assets | 19,109 | 22,807 | |||||||||||
Total current assets | 575,291 | 546,484 | |||||||||||
Property, plant and equipment, net | 115,965 | 128,649 | |||||||||||
Goodwill | 873,682 | 888,466 | |||||||||||
Other intangible assets, net | 454,360 | 479,406 | |||||||||||
Other long-term assets | 14,811 | 13,676 | |||||||||||
Total assets | $ | 2,034,109 | $ | 2,056,681 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Current liabilities | |||||||||||||
Trade accounts payable | $ | 167,632 | $ | 170,084 | |||||||||
Accrued compensation and benefits | 53,008 | 71,639 | |||||||||||
Short term borrowings and current maturities of debt | 6,250 | 2,690 | |||||||||||
Income taxes payable | 30,289 | 19,342 | |||||||||||
Other current liabilities | 68,583 | 66,548 | |||||||||||
Total current liabilities | 325,762 | 330,303 | |||||||||||
Long-term debt | 392,500 | 522,727 | |||||||||||
Deferred income taxes | 133,619 | 165,945 | |||||||||||
Pension and postretirement benefit accruals | 18,171 | 18,864 | |||||||||||
Other long-term liabilities | 86,772 | 99,829 | |||||||||||
Shareholders' equity | |||||||||||||
Capital stock | 15,054 | 13,731 | |||||||||||
Additional paid-in capital | 382 | (154,231 | ) | ||||||||||
Treasury stock | (39,282 | ) | - | ||||||||||
Retained earnings | 1,180,942 | 1,077,192 | |||||||||||
Accumulated other comprehensive loss | (79,811 | ) | (17,679 | ) | |||||||||
Stock held in trust | (2,661 | ) | (2,137 | ) | |||||||||
Deferred compensation liability | 2,661 | 2,137 | |||||||||||
Total shareholders' equity | 1,077,285 | 919,013 | |||||||||||
Total liabilities and shareholders' equity | $ | 2,034,109 | $ | 2,056,681 | |||||||||
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, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net sales | $ | 429,215 | $ | 392,777 | $ | 1,200,038 | $ | 1,041,887 | ||||||||
Cost of products sold | 263,095 | 238,739 | 740,018 | 640,969 | ||||||||||||
Gross profit | 166,120 | 154,038 | 460,020 | 400,918 | ||||||||||||
Selling, administrative and engineering expenses | 91,063 | 89,166 | 263,935 | 244,453 | ||||||||||||
Amortization of intangible assets | 7,393 | 6,871 | 21,684 | 19,846 | ||||||||||||
Operating profit | 67,664 | 58,001 | 174,401 | 136,619 | ||||||||||||
Financing costs, net | 7,236 | 7,850 | 23,279 | 23,640 | ||||||||||||
Debt refinancing charges | 16,830 | - | 16,830 | - | ||||||||||||
Other expense, net | 2,604 | 331 | 3,090 | 1,276 | ||||||||||||
Earnings from continuing operations before income | ||||||||||||||||
tax expense | 40,994 | 49,820 | 131,202 | 111,703 | ||||||||||||
Income tax expense | 6,593 | 11,460 | 27,452 | 24,540 | ||||||||||||
Earnings from continuing operations | 34,401 | 38,360 | 103,750 | 87,163 | ||||||||||||
Loss from discontinued operations, net of income taxes | - | (2,002 | ) | - | (16,986 | ) | ||||||||||
Net earnings | $ | 34,401 | $ | 36,358 | $ | 103,750 | $ | 70,177 | ||||||||
Earnings from continuing operations per share | ||||||||||||||||
Basic | $ | 0.48 | $ | 0.56 | $ | 1.50 | $ | 1.28 | ||||||||
Diluted | 0.45 | 0.51 | 1.39 | 1.17 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.48 | $ | 0.53 | $ | 1.50 | $ | 1.03 | ||||||||
Diluted | 0.45 | 0.49 | 1.39 | 0.95 | ||||||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic | 71,083 | 68,354 | 69,184 | 68,208 | ||||||||||||
Diluted | 75,371 | 75,571 | 75,201 | 75,314 | ||||||||||||
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, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Operating Activities | ||||||||||||||||
Net earnings | $ | 34,401 | $ | 36,358 | $ | 103,750 | $ | 70,177 | ||||||||
Adjustments to reconcile net earnings to net cash provided by | ||||||||||||||||
operating activities: | ||||||||||||||||
Depreciation and amortization | 13,582 | 12,959 | 40,192 | 38,143 | ||||||||||||
Net loss on disposal of businesses | - | 2,002 | - | 15,744 | ||||||||||||
Stock-based compensation expense | 3,040 | 3,280 | 10,002 | 8,093 | ||||||||||||
Provision (benefit) for deferred income taxes | 117 | (908 | ) | (2,137 | ) | (2,298 | ) | |||||||||
Amortization of debt discount and debt issuance costs | 495 | 495 | 1,492 | 2,409 | ||||||||||||
Non-cash debt refinance charge | 2,254 | - | 2,254 | - | ||||||||||||
Other non-cash adjustments | 208 | 28 | (138 | ) | (18 | ) | ||||||||||
Changes in components of working capital and other: | ||||||||||||||||
Accounts receivable | (4,585 | ) | (18,726 | ) | (21,692 | ) | (27,752 | ) | ||||||||
Inventories | 10,231 | (13,964 | ) | 9,171 | (39,533 | ) | ||||||||||
Prepaid expenses and other assets | 3,208 | 1,939 | 1,071 | 5,989 | ||||||||||||
Trade accounts payable | 10,907 | 24,704 | 2,779 | 18,400 | ||||||||||||
Income taxes payable | (2,092 | ) | 1,634 | (2,056 | ) | 6,904 | ||||||||||
Accrued compensation and benefits | 5,332 | 10,065 | (8,766 | ) | 646 | |||||||||||
Other accrued liabilities | 215 | 14,936 | (6,608 | ) | (1,806 | ) | ||||||||||
Net cash provided by operating activities | 77,313 | 74,802 | 129,314 | 95,098 | ||||||||||||
Investing Activities | ||||||||||||||||
Proceeds from sale of property, plant and equipment | 711 | 93 | 8,486 | 359 | ||||||||||||
Proceeds from sale of businesses, net of transaction costs | - | - | - | 3,463 | ||||||||||||
Capital expenditures | (7,039 | ) | (6,552 | ) | (17,491 | ) | (14,843 | ) | ||||||||
Business acquisitions, net of cash acquired | (10,827 | ) | (1,514 | ) | (29,734 | ) | (160,047 | ) | ||||||||
Net cash used in investing activities | (17,155 | ) | (7,973 | ) | (38,739 | ) | (171,068 | ) | ||||||||
Financing Activities | ||||||||||||||||
Net borrowings (repayments) on revolving credit facilities and other debt | (58,000 | ) | (41,155 | ) | (58,167 | ) | 14 | |||||||||
Issuance of term loan | - | - | - | 100,000 | ||||||||||||
Principal repayments on term loan | (1,250 | ) | - | (1,250 | ) | - | ||||||||||
Repurchases of 2% Convertible Notes | (102 | ) | - | (102 | ) | (34 | ) | |||||||||
Proceeds on 5.625% Senior Note issuance | 300,000 | - | 300,000 | - | ||||||||||||
Redemption of 6.875% Senior Notes | (250,000 | ) | - | (250,000 | ) | - | ||||||||||
Debt issuance costs | (5,340 | ) | - | (5,340 | ) | (5,197 | ) | |||||||||
Purchase of treasury shares | (18,872 | ) | - | (39,282 | ) | - | ||||||||||
Stock option exercises and related tax benefits | 885 | 472 | 6,392 | 7,285 | ||||||||||||
Cash dividend | - | - | (2,748 | ) | (2,716 | ) | ||||||||||
Net cash provided by (used in) financing activities | (32,679 | ) | (40,683 | ) | (50,497 | ) | 99,352 | |||||||||
Effect of exchange rate changes on cash | (5,775 | ) | 1,753 | (4,150 | ) | 4,695 | ||||||||||
Net increase in cash and cash equivalents | 21,704 | 27,899 | 35,928 | 28,077 | ||||||||||||
Cash and cash equivalents - beginning of period | 58,445 | 40,400 | 44,221 | 40,222 | ||||||||||||
Cash and cash equivalents - end of period | $ | 80,149 | $ | 68,299 | $ | 80,149 | $ | 68,299 | ||||||||
ACTUANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
FISCAL 2011 | FISCAL 2012 | |||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||||||||||||
SALES | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ | 87,392 | $ | 88,935 | $ | 107,759 | $ | 108,927 | $ | 393,013 | $ | 100,253 | $ | 98,342 | $ | 110,102 | $ | 308,697 | ||||||||||||||||||||||||
ENERGY SEGMENT | 70,743 | 61,587 | 78,002 | 82,728 | 293,060 | 80,421 | 78,937 | 96,399 | 255,757 | |||||||||||||||||||||||||||||||||
ELECTRICAL SEGMENT | 55,396 | 70,176 | 80,329 | 80,112 | 286,013 | 82,833 | 77,105 | 85,947 | 245,885 | |||||||||||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 104,881 | 110,000 | 126,687 | 131,669 | 473,237 | 129,292 | 123,640 | 136,767 | 389,699 | |||||||||||||||||||||||||||||||||
TOTAL | $ | 318,412 | $ | 330,698 | $ | 392,777 | $ | 403,436 | $ | 1,445,323 | $ | 392,799 | $ | 378,024 | $ | 429,215 | $ | 1,200,038 | ||||||||||||||||||||||||
% SALES GROWTH | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 34 | % | 28 | % | 35 | % | 27 | % | 31 | % | 15 | % | 11 | % | 2 | % | 9 | % | ||||||||||||||||||||||||
ENERGY SEGMENT | 10 | % | 14 | % | 38 | % | 35 | % | 24 | % | 14 | % | 28 | % | 24 | % | 22 | % | ||||||||||||||||||||||||
ELECTRICAL SEGMENT | 2 | % | 28 | % | 30 | % | 28 | % | 22 | % | 50 | % | 10 | % | 7 | % | 19 | % | ||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 18 | % | 23 | % | 13 | % | 31 | % | 21 | % | 23 | % | 12 | % | 8 | % | 14 | % | ||||||||||||||||||||||||
TOTAL | 17 | % | 24 | % | 27 | % | 30 | % | 25 | % | 23 | % | 14 | % | 9 | % | 15 | % | ||||||||||||||||||||||||
OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ | 20,187 | $ | 20,149 | $ | 29,517 | $ | 28,562 | $ | 98,415 | $ | 27,933 | $ | 26,690 | $ | 30,681 | $ | 85,304 | ||||||||||||||||||||||||
ENERGY SEGMENT | 11,858 | 6,792 | 13,545 | 17,150 | 49,345 | 13,217 | 11,632 | 18,515 | 43,364 | |||||||||||||||||||||||||||||||||
ELECTRICAL SEGMENT | 3,760 | 4,945 | 5,462 | 6,516 | 20,683 | 4,977 | 5,801 | 8,814 | 19,592 | |||||||||||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 13,802 | 13,425 | 19,977 | 16,408 | 63,612 | 18,999 | 13,281 | 18,467 | 50,747 | |||||||||||||||||||||||||||||||||
CORPORATE / GENERAL | (8,035 | ) | (8,265 | ) | (10,500 | ) | (11,685 | ) | (38,485 | ) | (7,845 | ) | (7,948 | ) | (8,813 | ) | (24,606 | ) | ||||||||||||||||||||||||
TOTAL | $ | 41,572 | $ | 37,046 | $ | 58,001 | $ | 56,951 | $ | 193,570 | $ | 57,281 | $ | 49,456 | $ | 67,664 | $ | 174,401 | ||||||||||||||||||||||||
OPERATING PROFIT % | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 23.1 | % | 22.7 | % | 27.4 | % | 26.2 | % | 25.0 | % | 27.9 | % | 27.1 | % | 27.9 | % | 27.6 | % | ||||||||||||||||||||||||
ENERGY SEGMENT | 16.8 | % | 11.0 | % | 17.4 | % | 20.7 | % | 16.8 | % | 16.4 | % | 14.7 | % | 19.2 | % | 17.0 | % | ||||||||||||||||||||||||
ELECTRICAL SEGMENT | 6.8 | % | 7.0 | % | 6.8 | % | 8.1 | % | 7.2 | % | 6.0 | % | 7.5 | % | 10.3 | % | 8.0 | % | ||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 13.2 | % | 12.2 | % | 15.8 | % | 12.5 | % | 13.4 | % | 14.7 | % | 10.7 | % | 13.5 | % | 13.0 | % | ||||||||||||||||||||||||
TOTAL (INCLUDING CORPORATE) | 13.1 | % | 11.2 | % | 14.8 | % | 14.1 | % | 13.4 | % | 14.6 | % | 13.1 | % | 15.8 | % | 14.5 | % | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ | 22,449 | $ | 22,245 | $ | 31,227 | $ | 30,680 | $ | 106,601 | $ | 29,220 | $ | 29,116 | $ | 32,070 | $ | 90,406 | ||||||||||||||||||||||||
ENERGY SEGMENT | 15,745 | 10,475 | 16,778 | 21,488 | 64,486 | 18,243 | 15,601 | 22,216 | 56,060 | |||||||||||||||||||||||||||||||||
ELECTRICAL SEGMENT | 5,067 | 8,075 | 8,208 | 9,390 | 30,740 | 7,705 | 8,697 | 11,444 | 27,846 | |||||||||||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 17,184 | 16,346 | 23,878 | 20,046 | 77,454 | 22,213 | 16,762 | 21,418 | 60,393 | |||||||||||||||||||||||||||||||||
CORPORATE / GENERAL | (7,161 | ) | (7,709 | ) | (9,462 | ) | (10,769 | ) | (35,101 | ) | (7,217 | ) | (7,479 | ) | (8,506 | ) | (23,202 | ) | ||||||||||||||||||||||||
TOTAL | $ | 53,284 | $ | 49,432 | $ | 70,629 | $ | 70,835 | $ | 244,180 | $ | 70,164 | $ | 62,697 | $ | 78,642 | $ | 211,503 | ||||||||||||||||||||||||
EBITDA % | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 25.7 | % | 25.0 | % | 29.0 | % | 28.2 | % | 27.1 | % | 29.1 | % | 29.6 | % | 29.1 | % | 29.3 | % | ||||||||||||||||||||||||
ENERGY SEGMENT | 22.3 | % | 17.0 | % | 21.5 | % | 26.0 | % | 22.0 | % | 22.7 | % | 19.8 | % | 23.0 | % | 21.9 | % | ||||||||||||||||||||||||
ELECTRICAL SEGMENT | 9.1 | % | 11.5 | % | 10.2 | % | 11.7 | % | 10.7 | % | 9.3 | % | 11.3 | % | 13.3 | % | 11.3 | % | ||||||||||||||||||||||||
ENGINEERED SOLUTIONS SEGMENT | 16.4 | % | 14.9 | % | 18.8 | % | 15.2 | % | 16.4 | % | 17.2 | % | 13.6 | % | 15.7 | % | 15.5 | % | ||||||||||||||||||||||||
TOTAL (INCLUDING CORPORATE) | 16.7 | % | 14.9 | % | 18.0 | % | 17.6 | % | 16.9 | % | 17.9 | % | 16.6 | % | 18.3 | % | 17.6 | % | ||||||||||||||||||||||||
ACTUANT CORPORATION | |||||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
(Dollars in thousands, except for per share amounts) | |||||||||||||||||||||||||||||||||||
FISCAL 2011 | FISCAL 2012 | ||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS (1) | |||||||||||||||||||||||||||||||||||
NET EARNINGS | $ | 25,890 | $ | 7,929 | $ | 36,358 | $ | 41,382 | $ | 111,559 | $ | 37,174 | $ | 32,175 | $ | 34,401 | $ | 103,750 | |||||||||||||||||
DISCONTINUED OPERATIONS, NET OF INCOME TAX | 771 | 14,213 | 2,002 | (4,049 | ) | 12,937 | - | - | - | - | |||||||||||||||||||||||||
DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | - | - | - | - | - | 10,482 | 10,482 | ||||||||||||||||||||||||||
TOTAL | $ | 26,661 | $ | 22,142 | $ | 38,360 | $ | 37,333 | $ | 124,496 | $ | 37,174 | $ | 32,175 | $ | 44,883 | $ | 114,232 | |||||||||||||||||
DILUTED EARNINGS PER SHARE, FROM CONTINUING | |||||||||||||||||||||||||||||||||||
OPERATIONS BEFORE SPECIAL ITEMS (1) | |||||||||||||||||||||||||||||||||||
NET EARNINGS | $ | 0.35 | $ | 0.11 | $ | 0.49 | $ | 0.55 | $ | 1.50 | $ | 0.50 | $ | 0.43 | $ | 0.45 | $ | 1.39 | |||||||||||||||||
DISCONTINUED OPERATIONS, NET OF INCOME TAX | 0.01 | 0.19 | 0.02 | (0.05 | ) | 0.18 | - | - | - | - | |||||||||||||||||||||||||
DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | - | - | - | - | - | 0.15 | 0.15 | ||||||||||||||||||||||||||
TOTAL | $ | 0.36 | $ | 0.30 | $ | 0.51 | $ | 0.50 | $ | 1.68 | $ | 0.50 | $ | 0.43 | $ | 0.60 | $ | 1.54 | |||||||||||||||||
EBITDA (2) | |||||||||||||||||||||||||||||||||||
NET EARNINGS (GAAP MEASURE) | $ | 25,890 | $ | 7,929 | $ | 36,358 | $ | 41,382 | $ | 111,559 | $ | 37,174 | $ | 32,175 | $ | 34,401 | $ | 103,750 | |||||||||||||||||
FINANCING COSTS, NET | 7,552 | 8,238 | 7,850 | 8,479 | 32,119 | 8,222 | 7,821 | 24,066 | 40,109 | ||||||||||||||||||||||||||
INCOME TAX EXPENSE | 6,911 | 6,169 | 11,460 | 10,171 | 34,711 | 11,228 | 9,631 | 6,593 | 27,452 | ||||||||||||||||||||||||||
DEPRECIATION & AMORTIZATION | 12,160 | 12,883 | 12,959 | 14,852 | 52,854 | 13,540 | 13,070 | 13,582 | 40,192 | ||||||||||||||||||||||||||
DISCONTINUED OPERATIONS, NET OF INCOME TAX | 771 | 14,213 | 2,002 | (4,049 | ) | 12,937 | - | - | - | - | |||||||||||||||||||||||||
EBITDA (NON-GAAP MEASURE) | $ | 53,284 | $ | 49,432 | $ | 70,629 | $ | 70,835 | $ | 244,180 | $ | 70,164 | $ | 62,697 | $ | 78,642 | $ | 211,503 | |||||||||||||||||
FOOTNOTES | |||
NOTE: | The total of the individual quarters may not equal the annual total due to rounding. | ||
(1) | Earnings from continuing operations and diluted earnings per share, excluding special items (discontinued operations and debt refinancing charges), represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be 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. | ||
(2) | 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 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. |
Actuant Corporation
Karen Bauer, 262-293-1562
Communications &
Investor Relations Leader
Source: Actuant Corporation
Released June 20, 2012