Actuant Reports Record Third Quarter Results, Provides Fiscal 2009 Outlook
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE:ATU) today announced record sales and earnings for its third quarter ended May 31, 2008.
Highlights
-- Sales totaled $445 million, a 15% increase over the prior
year, with 2% core sales growth (total sales less the impact
of foreign currency rate changes and business acquisitions).
-- Diluted earnings per share ("EPS") of $0.60 for the quarter,
which includes a $0.04 tax gain. Excluding this gain and the
prior year's European Electrical restructuring charges, EPS
increased 17% year-over-year.
-- EBITDA margin expansion of 50 basis points.
-- Cash generated from operations of approximately $64 million.
Robert Arzbaecher, CEO of Actuant, commented, "I am pleased to report that Actuant delivered another quarter of strong sales, earnings and cash flow. Execution on profit improvement and growth initiatives during the quarter was solid and we continued to enjoy the benefit of robust demand in the global energy and truck markets. These factors more than offset the challenging conditions in the consumer-oriented recreational vehicle ("RV"), retail and marine electrical markets, which weakened as the quarter progressed. We are continuing to invest in the businesses that are growing, while carefully monitoring and reducing discretionary expenses in businesses serving the more challenged markets. This quarter's strong financial results demonstrate the value of our diversified global business model."
Consolidated Results
Third quarter sales increased 15% to $445 million from $385 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (6%) and acquisitions (7%), core sales growth was 2%. Three of the Company's four operating segments reported third quarter core sales growth, led by the Industrial segment with 14%.
Fiscal 2008 third quarter net earnings and EPS were $38.6 million and $0.60, respectively, compared to prior year net earnings and EPS of $29.6 million and $0.47, respectively. Fiscal 2008 third quarter results include a $2.6 million ($0.04 per diluted share) income tax gain resulting from provision to return adjustments. Fiscal 2007 third quarter results included a $0.4 million ($0.01 per diluted share) European Electrical restructuring charge. Excluding these items, third quarter EPS increased 17% year-over-year from $0.48 to $0.56. (See attached reconciliation of GAAP to non-GAAP measures).
Sales for the nine months ended May 31, 2008 were $1.259 billion, 18% higher than the $1.069 billion in the comparable prior year period. Excluding the impact of foreign currency rate changes (5%) and sales from acquired businesses (10%), year-to-date core sales increased 3%.
Net earnings for the nine months ended May 31, 2008 rose 20% to $88.3 million, or $1.39 per diluted share, compared to $73.6 million, or $1.19 per diluted share for the comparable prior year period. Year-to-date fiscal 2008 results include $0.16 per diluted share of European Electrical restructuring charges as well as a $0.04 per diluted share income tax gain. Fiscal 2007 year-to-date results include $0.05 per diluted share of European Electrical restructuring charges. Excluding the tax gain and restructuring charges, EPS rose 22% to $1.51 per diluted share, from $1.24 per diluted share for the comparable prior year period. (See attached reconciliation of GAAP to non-GAAP measures).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Sales $160.0 $115.9 $427.9 $316.3
Operating Profit $43.7 $33.3 $114.4 $86.4
Operating Profit % 27.3% 28.7% 26.7% 27.3%
Third quarter fiscal 2008 Industrial segment sales increased 38% to $160 million. Excluding foreign currency translation and acquisitions, Industrial segment core sales grew 14% driven by continued strong global demand for joint integrity products and services for the oil & gas and power generation markets, as well as high-force hydraulic tools. Operating profit margins in the third quarter benefited from higher volumes, pricing and continuous improvement initiatives; however, they declined slightly from the prior year due to unfavorable product mix, higher incentive compensation expense and investments in sales and marketing initiatives.
Electrical Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Sales $129.1 $127.7 $393.9 $373.3
Operating Profit (1) $8.1 $10.3 $29.7 $29.2
Operating Profit % 6.3% 8.1% 7.6% 7.8%
(1) Excludes European Electrical restructuring charges of $0.4 million for the three months ended May 31, 2007 and $10.5 million and $4.3 million for the nine months ended May 31, 2008 and 2007, respectively.
Fiscal 2008 third quarter Electrical segment sales increased 1% to $129 million. While revenues benefitted from foreign currency translation and the acquisition of BH Electronics (July 2007), core sales declined 10% reflecting weaker demand from consumer, marine and transformer customers as well as the impact of SKU reductions in European Electrical. Operating profit margin declined to 6.3% reflecting the lower production volumes as well as unfavorable sales mix, despite margin improvement in the European Electrical product line.
Actuation Systems Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Sales $122.9 $111.8 $345.5 $315.1
Operating Profit $13.7 $11.0 $32.1 $27.6
Operating Profit % 11.2% 9.8% 9.3% 8.7%
Actuation Systems segment third quarter fiscal 2008 sales increased 10% to $123 million. In addition to foreign currency translation, core sales grew 1% in the quarter driven by strong demand from the Company's global truck customers as well as new automotive launches. Sales to the RV market, however, declined significantly due to lower RV OEM build rates caused by weak consumer demand. Segment operating profit margins increased 140 basis points over the prior year reflecting continued manufacturing efficiency improvements, price increases and favorable sales mix.
Engineered Products Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ----------
Sales $32.6 $29.8 $92.1 $64.5
Operating Profit $4.3 $4.1 $11.6 $8.8
Operating Profit % 13.1% 13.6% 12.6% 13.7%
Third quarter 2008 Engineered Products segment sales increased 9% from the prior year due to core growth and the weaker US dollar. Core growth of 6% resulted from increased demand in the agriculture, aerospace, utility and container hardware markets. Third quarter operating profit of $4.3 million was 5% higher than the prior year as base business margin expansion was partially offset by higher incentive compensation costs.
Financial Position
Net debt at May 31, 2008 was $496 million (total debt of $587 million less $91 million of cash), an increase of $9 million from the beginning of the quarter. During the quarter the Company completed the acquisition of Superior Plant Services for approximately $58 million which was largely offset by strong cash flow generation.
Outlook
The Company updated its fiscal year 2008 outlook to incorporate its actual third quarter performance. Full year fiscal 2008 EPS is expected to be in the range of $2.02-2.06 (excluding the tax gain and European Electrical restructuring charges) on sales of $1.67-1.68 billion. Fourth quarter EPS is projected to be in the $0.51-0.55 range.
Arzbaecher commented, "Actuant's employees are driving hard in the final quarter of fiscal 2008 to deliver continued strong results for shareholders. We intend to carry this positive momentum into fiscal 2009, despite challenging economic conditions in North America. We are optimistic that the consistent execution of our business model will continue to reward shareholders with strong results. Ignoring future acquisitions, we are projecting fiscal 2009 EPS growth of 10-15% above the mid-point of our fiscal 2008 EPS guidance range, to $2.25-2.35, on sales of approximately $1.75 billion. We continue to pursue accretive acquisition opportunities which, when executed, will become incremental to this guidance. Given our diversity, variable cost structure and focus on continuous improvement, we believe we are well positioned to deliver another year of growth in 2009."
Conference Call Information
An investor conference call is scheduled for 10:00am CDT today, June 19, 2008. Webcast information and conference call materials will be made available on Actuant's 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. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or any other reason.
About Actuant
Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to $1.6 billion and its market capitalization from $113 million to over $1.8 billion. The Company employs a workforce of more than 7,700 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, 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,
2008 2007
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $91,079 $86,680
Accounts receivable, net 249,163 194,775
Inventories, net 223,151 197,539
Deferred income taxes 14,147 14,827
Other current assets 13,810 11,459
----------- -----------
Total current assets 591,350 505,280
Property, plant and equipment, net 136,308 122,817
Goodwill 651,560 599,841
Other intangible assets, net 300,352 260,418
Other long-term assets 9,696 12,420
----------- -----------
Total assets $1,689,266 $1,500,776
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $2,218 $-
Trade accounts payable 178,877 153,205
Accrued compensation and benefits 58,587 52,345
Income taxes payable 28,176 20,309
Current maturities of long-term debt 35 519
Other current liabilities 71,325 64,449
----------- -----------
Total current liabilities 339,218 290,827
Long-term debt, less current maturities 584,876 561,138
Deferred income taxes 111,000 103,589
Pension and postretirement benefit accruals 23,226 27,437
Other long-term liabilities 26,444 17,864
Shareholders' equity
Capital stock 11,179 11,070
Additional paid-in capital (330,779) (349,190)
Accumulated other comprehensive income 20,051 12,876
Stock held in trust (2,069) (1,744)
Deferred compensation liability 2,069 1,744
Retained earnings 904,051 825,165
----------- -----------
Total shareholders' equity 604,502 499,921
----------- -----------
Total liabilities and shareholders' equity $1,689,266 $1,500,776
=========== ===========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Nine Months Ended
Ended
----------------- ---------------------
May 31, May 31, May 31, May 31,
2008 2007 2008 2007
----------------- ---------------------
Net sales $444,656 $385,090 $1,259,428 $1,069,093
Cost of products sold 290,684 255,504 830,783 716,218
----------------- ---------------------
Gross profit 153,972 129,586 428,645 352,875
Selling, administrative and
engineering expenses 88,421 73,772 252,396 207,837
Restructuring charge - 434 10,473 4,319
Amortization of intangible
assets 4,023 2,906 10,741 7,819
----------------- ---------------------
Operating profit 61,528 52,474 155,035 132,900
Financing costs, net 9,190 9,075 27,522 24,185
Other (income) expense, net 201 660 (1,579) 1,632
----------------- ---------------------
Earnings from operations
before income
tax expense and minority
interest 52,137 42,739 129,092 107,083
Income tax expense 13,465 13,146 40,767 33,480
Minority interest, net of
income taxes 37 11 24 3
----------------- ---------------------
Net earnings $38,635 $29,582 $88,301 $73,600
================= =====================
Earnings per share
Basic $0.69 $0.54 $1.58 $1.35
Diluted 0.60 0.47 1.39 1.19
Weighted average common shares
outstanding
Basic 55,874 54,684 55,766 54,646
Diluted 64,945 63,621 64,770 63,505
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,
2008 2007 2008 2007
--------- ---------- ----------- ----------
Operating Activities
Net earnings $38,635 $29,582 $88,301 $73,600
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and
amortization 11,434 9,167 32,926 25,888
Stock-based compensation
expense 1,750 1,337 4,890 4,087
Provision for deferred
income taxes 311 752 6,990 (2,402)
Other (326) (702) (541) 63
Changes in operating
assets and liabilities,
excluding the effects
of the business
acquisitions
Accounts receivable (9,796) 3,695 (34,851) (6,435)
Accounts receivable
securitization
program 4,714 20,237 5,045 14,121
Inventories (1,886) (1,152) (8,066) (8,971)
Prepaid expenses and
other assets (231) (2,732) 1,744 (4,043)
Trade accounts payable 9,951 34,402 14,713 19,196
Income taxes payable (2,934) 8,211 (1,278) 4,441
Other accrued
liabilities 12,726 15,259 15,319 9,869
--------- ---------- ----------- ----------
Net cash provided by
operating activities 64,348 118,056 125,192 129,414
Investing Activities
Proceeds from sale of
property, plant and
equipment 2,097 1,330 13,676 4,119
Capital expenditures (13,268) (7,757) (32,502) (20,494)
Business acquisitions,
net of cash acquired (59,043) (22,531) (110,109) (132,590)
--------- ---------- ----------- ----------
Net cash used in investing
activities (70,214) (28,958) (128,935) (148,965)
Financing Activities
Net borrowings
(repayments) on
revolving credit
facilities and short-
term borrowings 15 (36,364) 2,155 (80,355)
Proceeds from term loan - - - 155,737
Principal repayments on
term loans (7) (4,608) (1,008) (7,077)
Cash dividend - - (2,221) (2,187)
Stock option exercises,
related tax benefits,
and other 872 328 4,210 335
--------- ---------- ----------- ----------
Net cash provided by
financing activities 880 (40,644) 3,136 66,453
Effect of exchange rate
changes on cash 1,153 398 5,006 1,142
--------- ---------- ----------- ----------
Net increase (decrease) in
cash and cash equivalents (3,833) 48,852 4,399 48,044
Cash and cash equivalents
- beginning of period 94,912 24,851 86,680 25,659
--------- ---------- ----------- ----------
Cash and cash equivalents
- end of period $91,079 $73,703 $91,079 $73,703
========= ========== =========== ==========
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $103,935 $96,501 $115,852 $122,855 $439,143
ELECTRICAL
SEGMENT 122,017 123,599 127,653 132,439 505,708
ACTUATION
SYSTEMS SEGMENT 105,654 97,656 111,768 104,367 419,445
ENGINEERED
PRODUCTS
SEGMENT 11,377 23,264 29,817 29,994 94,452
---------------------------------------------------
TOTAL $342,983 $341,020 $385,090 $389,655 $1,458,748
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 31% 34% 34% 22% 30%
ELECTRICAL
SEGMENT 16% 17% 17% 18% 17%
ACTUATION
SYSTEMS SEGMENT 19% 11% 2% 4% 9%
ENGINEERED
PRODUCTS
SEGMENT 7% 120% 157% 159% 112%
TOTAL 21% 24% 22% 20% 21%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $28,958 $24,203 $33,259 $34,865 $121,285
ELECTRICAL
SEGMENT 9,357 9,535 10,341 10,851 40,084
ACTUATION
SYSTEMS SEGMENT 8,614 7,954 10,994 9,562 37,124
ENGINEERED
PRODUCTS
SEGMENT 1,653 3,088 4,069 4,644 13,454
CORPORATE /
GENERAL (4,944) (4,105) (5,756) (6,274) (21,079)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $43,638 $40,675 $52,907 $53,648 $190,868
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
---------------------------------------------------
TOTAL $43,529 $36,899 $52,473 $52,572 $185,473
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 27.9% 25.1% 28.7% 28.4% 27.6%
ELECTRICAL
SEGMENT 7.7% 7.7% 8.1% 8.2% 7.9%
ACTUATION
SYSTEMS SEGMENT 8.2% 8.1% 9.8% 9.2% 8.9%
ENGINEERED
PRODUCTS
SEGMENT 14.5% 13.3% 13.6% 15.5% 14.2%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 13.7% 13.8% 13.1%
EBITDA
INDUSTRIAL
SEGMENT $31,356 $26,475 $35,738 $39,156 $132,725
ELECTRICAL
SEGMENT 11,543 11,404 12,355 13,501 48,803
ACTUATION
SYSTEMS SEGMENT 11,339 10,928 14,179 12,547 48,993
ENGINEERED
PRODUCTS
SEGMENT 1,904 3,986 4,962 5,780 16,632
CORPORATE /
GENERAL (4,844) (4,028) (5,822) (6,350) (21,044)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
---------------------------------------------------
TOTAL $51,189 $44,989 $60,978 $63,558 $220,714
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 30.2% 27.4% 30.8% 31.9% 30.2%
ELECTRICAL
SEGMENT 9.5% 9.2% 9.7% 10.2% 9.7%
ACTUATION
SYSTEMS SEGMENT 10.7% 11.2% 12.7% 12.0% 11.7%
ENGINEERED
PRODUCTS
SEGMENT 16.7% 17.1% 16.6% 19.3% 17.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 15.9% 16.6% 15.5%
FISCAL 2008
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $137,089 $130,802 $160,035 $427,926
ELECTRICAL
SEGMENT 133,962 130,779 129,142 393,883
ACTUATION
SYSTEMS SEGMENT 112,899 109,764 122,850 345,513
ENGINEERED
PRODUCTS
SEGMENT 31,193 28,284 32,629 92,106
---------------------------------------------------
TOTAL $415,143 $399,629 $444,656 $1,259,428
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 32% 36% 38% 35%
ELECTRICAL
SEGMENT 10% 6% 1% 6%
ACTUATION
SYSTEMS SEGMENT 7% 12% 10% 10%
ENGINEERED
PRODUCTS
SEGMENT 174% 22% 9% 43%
TOTAL 21% 17% 15% 18%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $37,976 $32,757 $43,692 $114,425
ELECTRICAL
SEGMENT 10,426 11,239 8,074 29,738
ACTUATION
SYSTEMS SEGMENT 10,059 8,301 13,705 32,065
ENGINEERED
PRODUCTS
SEGMENT 4,235 3,146 4,260 11,641
CORPORATE /
GENERAL (6,415) (7,743) (8,203) (22,361)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $56,281 $47,700 $61,528 $165,508
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) - (10,473)
---------------------------------------------------
TOTAL $50,760 $42,748 $61,528 $155,035
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 27.7% 25.0% 27.3% 26.7%
ELECTRICAL
SEGMENT 7.8% 8.6% 6.3% 7.6%
ACTUATION
SYSTEMS SEGMENT 8.9% 7.6% 11.2% 9.3%
ENGINEERED
PRODUCTS
SEGMENT 13.6% 11.1% 13.1% 12.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.6% 11.9% 13.8% 13.1%
EBITDA
INDUSTRIAL
SEGMENT $42,570 $37,386 $48,388 $128,344
ELECTRICAL
SEGMENT 13,226 13,661 10,562 37,449
ACTUATION
SYSTEMS SEGMENT 13,292 11,428 16,402 41,122
ENGINEERED
PRODUCTS
SEGMENT 5,399 4,445 5,400 15,244
CORPORATE /
GENERAL (6,632) (7,522) (7,991) (22,145)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $67,855 $59,398 $72,761 $200,014
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) - (10,473)
---------------------------------------------------
TOTAL $62,334 $54,446 $72,761 $189,541
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 31.1% 28.6% 30.2% 30.0%
ELECTRICAL
SEGMENT 9.9% 10.4% 8.2% 9.5%
ACTUATION
SYSTEMS SEGMENT 11.8% 10.4% 13.4% 11.9%
ENGINEERED
PRODUCTS
SEGMENT 17.3% 15.7% 16.5% 16.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 16.3% 14.9% 16.4% 15.9%
Note: All prior periods have been restated to include Milwaukee
Cylinder as part of the Industrial Segment. Previously this
business was part of the Engineered Products Segment.
The total of the individual quarters may not equal the annual
total due to rounding.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING
CHARGE
AND TAX
ADJUSTMENTS /
CREDITS (1)
NET EARNINGS
(GAAP MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT 109 2,926 434 1,076 4,545
TAX
ADJUSTMENTS /
CREDITS - - - (1,580) (1,580)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $25,211 $21,845 $30,014 $30,847 $107,917
===================================================
DILUTED EARNINGS
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS /
CREDITS (1)
NET EARNINGS
(GAAP MEASURE) $0.41 $0.31 $0.47 $0.50 $1.69
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT - 0.05 0.01 0.02 0.07
TAX
ADJUSTMENTS /
CREDITS - - - (0.02) (0.02)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.41 $0.35 $0.48 $0.49 $1.73
===================================================
EBITDA (2)
NET EARNINGS
(GAAP MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
FINANCING
COSTS, NET 6,841 8,268 9,076 8,816 33,001
INCOME TAX
EXPENSE 11,379 8,956 13,146 13,300 46,781
DEPRECIATION &
AMORTIZATION 7,877 8,844 9,165 10,137 36,023
MINORITY
INTEREST, NET
OF INCOME TAX (10) 2 11 (46) (43)
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE) $51,189 $44,989 $60,978 $63,558 $220,714
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE 109 3,776 434 1,076 5,395
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE)
- EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
===================================================
FISCAL 2008
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING
CHARGE
AND TAX
ADJUSTMENTS /
CREDITS (1)
NET EARNINGS
(GAAP MEASURE) $27,427 $22,239 $38,635 $88,301
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT 5,521 4,729 - 10,250
TAX
ADJUSTMENTS /
CREDITS - - (2,625) (2,625)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $32,948 $26,968 $36,010 $95,926
===================================================
DILUTED EARNINGS
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS /
CREDITS (1)
NET EARNINGS
(GAAP MEASURE) $0.43 $0.35 $0.60 $1.39
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT 0.09 0.07 - 0.16
TAX
ADJUSTMENTS /
CREDITS - - (0.04) (0.04)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.52 $0.43 $0.56 $1.51
===================================================
EBITDA (2)
NET EARNINGS
(GAAP MEASURE) $27,427 $22,239 $38,635 $88,301
FINANCING
COSTS, NET 9,300 9,032 9,190 27,522
INCOME TAX
EXPENSE 15,149 12,154 13,465 40,768
DEPRECIATION &
AMORTIZATION 10,464 11,028 11,434 32,926
MINORITY
INTEREST, NET
OF INCOME TAX (6) (7) 37 24
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE) $62,334 $54,446 $72,761 $189,541
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE 5,521 4,952 - 10,473
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE)
- EXCLUDING
RESTRUCTURING
CHARGE $67,855 $59,398 $72,761 $200,014
===================================================
(1) Net earnings and diluted earnings per share excluding
restructuring charges and income tax adjustments / credits
represent net earnings and diluted earnings per share per the
Consolidated Statement 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 do not equal diluted earnings per share
excluding restructuring charges and income tax adjustments /
credits due to rounding.
(2) EBITDA represents net earnings before financing costs, net,
income tax expense, depreciation & amortization and minority
interest. 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 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. The total of the individual quarters may not equal
the annual total due to rounding.
Source: Actuant Corporation
Released June 19, 2008