Actuant Reports Fourth Quarter and Full Year Fiscal 2013 Results; Increases 2014 Guidance
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its fourth quarter ended August 31, 2013.
Highlights
- Fourth quarter GAAP diluted earnings per share from continuing operations (“EPS”) of $0.60, and $0.50 excluding acquisition related costs and a favorable tax adjustment, an increase of 4% year-over-year (see attached reconciliation of earnings.)
- Core sales were flat and -3% for the fourth quarter and full year, respectively (total sales less the impact of acquisitions, divestitures and foreign currency rate changes) with improving trends throughout the fiscal year.
- Year-over-year operating profit margin expansion of 70 basis points for the fourth quarter, or 170 basis points excluding acquisition related costs.
- Cash flow from operations was a robust $78 million for the fourth quarter.
- Completed the acquisition of Viking SeaTech (“Viking”) for approximately $235 million, adding capabilities serving the deep water oil & gas market.
- Repurchased 1.3 million common shares in fiscal 2013 for $42 million, including 0.8 million shares for $28 million in the fourth quarter.
- Increased full year fiscal 2014 guidance with revised sales and EPS ranges of $1.41-1.45 billion and $2.00-2.10, respectively.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “We were pleased to finish the year in line with our expectations, with continued sequential core sales improvement, year-over-year margin and EPS growth, and record free cash flow. Consolidated fourth quarter core sales were flat, as overall demand continued to reflect economies around the world struggling to find steady growth. Excluding approximately $0.04 of Viking related acquisition costs and a favorable tax adjustment, fourth quarter EPS of $0.50 increased 4% on a year-over-year basis on improved margins, partially offset by a higher effective tax rate. In the quarter, we demonstrated our continued ability to operate in a stagnant market environment and deliver earnings growth, while still making strategic investments to drive the company's long-term growth strategy.”
Consolidated Results
Continuing Operations
Consolidated sales for the fourth quarter of fiscal 2013 were $327 million compared to $322 million in the comparable prior year quarter. Core sales were flat, with acquisitions contributing 2% and nominal currency impact. Fiscal 2013 fourth quarter net earnings and EPS from continuing operations were $45.1 million and $0.60, respectively, compared to $35.9 million and $0.48 in the comparable prior year quarter. Excluding the fourth quarter fiscal 2013 favorable tax adjustment of $10.6 million, or $0.14 per diluted share, EPS from continuing operations of $0.46 was 4% lower than the comparable prior year period; however, it included approximately $0.04 of acquisition transaction costs. (See attached reconciliation of earnings.)
Sales for the year ended August 31, 2013 of $1.28 billion were essentially unchanged from the prior year. Excluding the 4% benefit of acquisitions, and 1% negative impact from foreign currency translation, core sales declined 3%. Earnings and EPS from continuing operations for the year were $147.6 million, or $1.98 per diluted share, compared to $125.3 million, or $1.68 per diluted share for the comparable prior year period. Excluding the previously mentioned favorable tax adjustment as well as 2012 debt refinancing costs of $16.8 million, or $0.15 per diluted share, fiscal 2013 EPS from continuing operations of $1.84 was 1% higher than the $1.83 in the prior year. (See attached reconciliation of earnings.)
Commenting on the full year results, Arzbaecher stated, “While our performance in fiscal 2013 was impacted by weak global economic conditions, the sequential improvement throughout the year was encouraging. Both Industrial and Energy delivered full year core sales growth and we acquired approximately $90 million of revenue in the higher growth energy market. As a result of our portfolio management, cost control and operational improvement efforts, EBITDA margins, excluding acquisition costs, exceeded 20% by the end of the fiscal year. We generated record free cash flow of $205 million and free cash flow to net earnings conversion in excess of 125%. This allowed us to deploy $235 million in acquisitions and $42 million in share repurchases, yet maintain a year-end net debt to EBITDA leverage of just 1.3X. In summary, despite poor economic conditions, Actuant’s employees executed well and I am appreciative of their efforts.”
Discontinued Operations
Discontinued operations include the operating results of the Electrical segment for all periods presented. In the fourth quarter of fiscal 2013, a favorable, non-cash adjustment of $11.2 million ($0.10 per diluted share) was recorded to reduce the reserve against the Electrical segment’s carrying value, based on current information. The sale process for the Electrical segment is proceeding as planned and the Company expects the sale transaction to be completed in the first half of fiscal 2014.
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Segment Results |
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Industrial Segment |
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(US $ in millions) |
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| Three Months Ended August 31, | Year Ended August 31, | ||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||
| Sales | $111.2 | $110.6 | $422.6 | $419.3 | |||||
| Operating Profit | $31.9 | $29.5 | $117.6 | $114.8 | |||||
| Operating Profit % | 28.7% | 26.6% | 27.8% | 27.4% | |||||
Fourth quarter fiscal 2013 Industrial segment sales were $111 million, 1% higher than the prior year. This 1% core sales growth was due to higher integrated solutions activity, vertical market penetration and success in high growth regions including Africa, Indonesia and Brazil. Industrial tool sales within Europe and China continue to experience year-over-year declines, albeit at a more modest sequential pace. Fourth quarter operating profit margin increased 210 basis points to 28.7% on the higher volume, lower incentive compensation and operational excellence actions.
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Energy Segment |
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(US $ in millions) |
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| Three Months Ended August 31, | Year Ended August 31, | ||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||
| Sales | $92.7 | $93.4 | $363.4 | $349.2 | |||||
| Operating Profit | $18.5 | $18.8 | $63.3 | $62.2 | |||||
| Operating Profit % | 19.9% | 20.2% | 17.4% | 17.8% | |||||
Fiscal 2013 fourth quarter year-over-year Energy segment sales decreased 1% to $93 million. Excluding the 1% impact from acquisitions and negative 2% from foreign currency translation, core sales were flat year-over-year. Hydratight demand remained strong in both the Europe and Asia Pacific regions; however, North American revenues declined on lower service and nuclear maintenance activity. Offshore demand for umbilical, cable and rope solutions grew with continued favorable market dynamics; however, Cortland’s non-energy markets, such as defense, experienced persistent weak activity levels. Fourth quarter operating profit margin declined 30 basis points year-over-year, primarily the result of unfavorable product mix.
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Engineered Solutions Segment |
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(US $ in millions) |
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| Three Months Ended August 31, | Year Ended August 31, | ||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||
| Sales | $123.4 | $118.4 | $493.7 | $508.1 | |||||
| Operating Profit | $11.7 | $10.1 | $40.3 | $60.9 | |||||
| Operating Profit % | 9.5% | 8.5% | 8.2% | 12.0% | |||||
Fourth quarter fiscal 2013 Engineered Solutions segment sales increased 4% from the prior year to $123 million. Excluding the 3% net benefit from acquisitions/divestitures and 1% from foreign currency translation, year-over-year core sales were flat. This was a significant sequential improvement from the third quarter’s 10% core sale decline. During the fourth quarter, European heavy-duty truck sales grew over 10% and total agriculture sales benefited from new product launches. Sales were down year-over-year in the off-highway equipment markets including construction and defense, as well as within the European convertible auto market, but the rate of decline in both moderated from prior quarters. Fourth quarter operating profit margin increased 100 basis points due to the benefit of cost reduction actions.
Corporate and Income Taxes
Corporate expenses for the fourth quarter of fiscal 2013 were $9.3 million, $0.6 million above the comparable prior year period due primarily to $3.5 million of transaction costs related to the Viking acquisition, partially offset by lower incentive compensation expenses. Income tax expense in the fourth quarter of fiscal 2013 included a non-cash $10.6 million benefit from the cumulative correction in accounting for taxes on equity compensation expense over several years. The correction reduced historical annual tax expense (and increased net income), but was not material to any individual year.
Financial Position
Net debt at August 31, 2013 was $411 million (total debt of $515 million less $104 million of cash); approximately $180 million above the prior quarter end. The Company deployed approximately $235 million of capital to acquire Viking in the fourth quarter as well as approximately $28 million for share repurchases. Given the quarter’s strong free cash flow, Actuant’s August 31, 2013 net debt to EBITDA leverage ratio remained low at 1.3X. Available liquidity is strong with $104 million of cash on hand, $475 million of revolver availability and the expected 2014 cash flow and Electrical segment divestiture proceeds.
Outlook
“The economic environment remains difficult to predict, and we are focused on executing items within our control," Arzbaecher stated. "Our near-term priorities continue to be investing in strategic growth opportunities including high growth markets, acquisition capital deployment, cash generation, and completing the sale of the Electrical segment.
We continue to anticipate fiscal 2014 core sales growth in the range of 3-5%, outpacing GDP as a result of our company-specific Growth + Innovation (G+I) process and easier prior year comparisons. We expect total sales of $1.41-1.45 billion, including approximately $100 million of Viking fiscal 2014 revenue. On a year-over-year basis, the higher sales coupled with operational excellence initiatives and completed share repurchases should result in fiscal 2014 EPS of $2.00-2.10, an increase of 9-14% compared to fiscal 2013, excluding special items. We expect full year free cash flow of approximately $190 million. We anticipate first quarter fiscal 2014 sales in the $325-335 million range and EPS of $0.43-0.46. All guidance excludes the impact of future acquisitions and potential share repurchases.
Arzbaecher concluded, “Despite a stagnant macroeconomic environment, we expect to deliver sales and earnings growth in fiscal 2014. We remain focused on our G+I process, executing on cost savings initiatives, and maintaining our flexibility to capitalize on market opportunities. We believe our strong balance sheet provides significant capital deployment opportunities for Actuant to deliver shareholder value.”
Conference Call Information
An investor conference call is scheduled for 10am CT today, October 1, 2013. 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. This includes statements pertaining to, among other things, the planned divestiture of the Electrical segment, the potential timing thereof, and the prospects and expected financial results of Actuant after the planned transaction. 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 serving customers from operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic tools and solutions; 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) | |||||||||||||
| August 31, | August 31, | ||||||||||||
| 2013 | 2012 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and cash equivalents | $ | 103,986 | $ | 68,184 | |||||||||
| Accounts receivable, net | 219,075 | 234,756 | |||||||||||
| Inventories, net | 142,549 | 211,690 | |||||||||||
| Deferred income taxes | 18,796 | 22,583 | |||||||||||
| Other current assets | 28,228 | 24,068 | |||||||||||
| Assets of discontinued operations | 272,606 | - | |||||||||||
| Total current assets | 785,240 | 561,281 | |||||||||||
| Property, plant and equipment, net | 201,496 | 115,884 | |||||||||||
| Goodwill | 734,952 | 866,412 | |||||||||||
| Other intangible assets, net | 376,692 | 445,884 | |||||||||||
| Other long-term assets | 20,952 | 17,658 | |||||||||||
| Total assets | $ | 2,119,332 | $ | 2,007,119 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Trade accounts payable | $ | 154,049 | $ | 174,746 | |||||||||
| Accrued compensation and benefits | 43,800 | 58,817 | |||||||||||
| Current maturities of debt | - | 7,500 | |||||||||||
| Income taxes payable | 14,014 | 5,778 | |||||||||||
| Other current liabilities | 56,899 | 72,165 | |||||||||||
| Liabilities of discontinued operations | 53,080 | - | |||||||||||
| Total current liabilities | 321,842 | 319,006 | |||||||||||
| Long-term debt | 515,000 | 390,000 | |||||||||||
| Deferred income taxes | 115,865 | 132,653 | |||||||||||
| Pension and postretirement benefit accruals | 20,698 | 26,442 | |||||||||||
| Other long-term liabilities | 65,660 | 87,182 | |||||||||||
| Shareholders' equity | |||||||||||||
| Capital stock | 15,399 | 15,102 | |||||||||||
| Additional paid-in capital | 49,758 | 7,725 | |||||||||||
| Treasury stock | (104,915 | ) | (63,083 | ) | |||||||||
| Retained earnings | 1,188,685 | 1,161,564 | |||||||||||
| Accumulated other comprehensive loss | (68,660 | ) | (69,472 | ) | |||||||||
| Stock held in trust | (3,124 | ) | (2,689 | ) | |||||||||
| Deferred compensation liability | 3,124 | 2,689 | |||||||||||
| Total shareholders' equity | 1,080,267 | 1,051,836 | |||||||||||
| Total liabilities and shareholders' equity | $ | 2,119,332 | $ | 2,007,119 | |||||||||
| Actuant Corporation | |||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||
| (Dollars in thousands except per share amounts) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Net sales | $ | 327,260 | $ | 322,368 | $ | 1,279,742 | $ | 1,276,521 | |||||||||
| Cost of products sold | 197,760 | 192,760 | 772,792 | 765,061 | |||||||||||||
| Gross profit | 129,500 | 129,608 | 506,950 | 511,460 | |||||||||||||
| Selling, administrative and engineering expenses | 71,345 | 74,114 | 293,866 | 284,920 | |||||||||||||
| Amortization of intangible assets | 5,397 | 5,789 | 22,939 | 22,026 | |||||||||||||
| Operating profit | 52,758 | 49,705 | 190,145 | 204,514 | |||||||||||||
| Financing costs, net | 6,026 | 6,281 | 24,837 | 29,561 | |||||||||||||
| Debt refinancing costs | - | - | - | 16,830 | |||||||||||||
| Other expense, net | 841 | 196 | 2,359 | 3,493 | |||||||||||||
| Earnings from continuing operations before income tax expense | 45,891 | 43,228 | 162,949 | 154,630 | |||||||||||||
| Income tax expense | 776 | 7,312 | 15,372 | 29,354 | |||||||||||||
| Earnings from continuing operations | 45,115 | 35,916 | 147,577 | 125,276 | |||||||||||||
| Earnings (loss) from discontinued operations, net of income taxes | 13,138 | (52,376 | ) | (117,529 | ) | (37,986 | ) | ||||||||||
| Net earnings (loss) | $ | 58,253 | $ | (16,460 | ) | $ | 30,048 | $ | 87,290 | ||||||||
| Earnings from continuing operations per share | |||||||||||||||||
| Basic | $ | 0.62 | $ | 0.49 | $ | 2.02 | $ | 1.79 | |||||||||
| Diluted | 0.60 | 0.48 | 1.98 | 1.68 | |||||||||||||
| Earnings (loss) per share | |||||||||||||||||
| Basic | $ | 0.80 | $ | (0.23 | ) | $ | 0.41 | $ | 1.25 | ||||||||
| Diluted | 0.78 | (0.22 | ) | 0.40 | 1.17 | ||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||
| Basic | 73,048 | 72,846 | 72,979 | 70,099 | |||||||||||||
| Diluted | 74,845 | 74,158 | 74,580 | 74,940 | |||||||||||||
| Actuant Corporation | ||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| August 31, | August 31, | August 31, |
August 31, |
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| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Operating Activities | ||||||||||||||||
| Net earnings (loss) | $ | 58,253 | $ | (16,460 | ) | $ | 30,048 | $ | 87,290 | |||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by | ||||||||||||||||
| operating activities: | ||||||||||||||||
| Depreciation and amortization | 11,112 | 14,071 | 53,902 | 54,263 | ||||||||||||
| Stock-based compensation expense | 2,933 | 3,344 | 13,440 | 13,346 | ||||||||||||
| Benefit for deferred income taxes | (13,716 | ) | (8,387 | ) | (44,265 | ) | (10,524 | ) | ||||||||
| Impairment charges | (11,235 | ) | 62,464 | 158,817 | 62,464 | |||||||||||
| Amortization of debt discount and debt issuance costs | 452 | 498 | 1,940 | 1,990 | ||||||||||||
| Non-cash debt refinance charge | - | - | - | 2,254 | ||||||||||||
| Other non-cash adjustments | 157 | 139 | 328 | - | ||||||||||||
| Changes in components of working capital and other: | ||||||||||||||||
| Accounts receivable | 14,108 | 9,382 | (10,925 | ) | (12,310 | ) | ||||||||||
| Inventories | 6,388 | 2,361 | 13,714 | 11,532 | ||||||||||||
| Prepaid expenses and other assets | 10 | (3,235 | ) | (4,603 | ) | (2,164 | ) | |||||||||
| Trade accounts payable | (1,750 | ) | 3,123 | (9,279 | ) | 5,902 | ||||||||||
| Income taxes payable | 6,132 | (15,847 | ) | 594 | (17,903 | ) | ||||||||||
| Accrued compensation and benefits | (1,427 | ) | 2,474 | (14,256 | ) | (6,292 | ) | |||||||||
| Other accrued liabilities | 6,102 | (912 | ) | 4,334 | (7,519 | ) | ||||||||||
| Net cash provided by operating activities | 77,519 | 53,015 | 193,789 | 182,329 | ||||||||||||
| Investing Activities | ||||||||||||||||
| Proceeds from sale of property, plant and equipment | 304 | 15 | 1,621 | 8,501 | ||||||||||||
| Proceeds from sale of businesses, net of transaction costs | - | - | 4,854 | - | ||||||||||||
| Capital expenditures | (4,773 | ) | (5,249 | ) | (23,668 | ) | (22,740 | ) | ||||||||
| Business acquisitions, net of cash acquired | (235,406 | ) | (40,533 | ) | (239,041 | ) | (70,267 | ) | ||||||||
| Net cash used in investing activities | (239,875 | ) | (45,767 | ) | (256,234 | ) | (84,506 | ) | ||||||||
| Financing Activities | ||||||||||||||||
| Net borrowings (repayments) on revolving credit facilities and other debt | 125,000 | - | 125,000 | (58,167 | ) | |||||||||||
| Principal repayments on term loan | (2,500 | ) | (1,250 | ) | (7,500 | ) | (2,500 | ) | ||||||||
| Repurchases of 2% Convertible Notes | - | - | - | (102 | ) | |||||||||||
| Proceeds on 5.625% Senior Note issuance | - | - | - | 300,000 | ||||||||||||
| Redemption of 6.875% Senior Notes | - | - | - | (250,000 | ) | |||||||||||
| Debt issuance and refinancing costs | (2,035 | ) | (150 | ) | (2,035 | ) | (5,490 | ) | ||||||||
| Purchase of treasury shares | (28,162 | ) | (23,801 | ) | (41,832 | ) | (63,083 | ) | ||||||||
| Payment of contingent consideration | (1,826 | ) | - | (1,826 | ) | - | ||||||||||
| Stock option exercises and related tax benefits | 14,556 | 4,521 | 33,261 | 10,913 | ||||||||||||
| Cash dividend | - | - | (2,911 | ) | (2,748 | ) | ||||||||||
| Net cash provided by (used in) financing activities | 105,033 | (20,680 | ) | 102,157 | (71,177 | ) | ||||||||||
| Effect of exchange rate changes on cash | (109 | ) | 1,467 | (3,910 | ) | (2,683 | ) | |||||||||
| Net increase in cash and cash equivalents | (57,432 | ) | (11,965 | ) | 35,802 | 23,963 | ||||||||||
| Cash and cash equivalents - beginning of period | 161,418 | 80,149 | 68,184 | 44,221 | ||||||||||||
| Cash and cash equivalents - end of period | $ | 103,986 | $ | 68,184 | $ | 103,986 | $ | 68,184 | ||||||||
| ACTUANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
| FISCAL 2012 | FISCAL 2013 | |||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||||||||||||
| SALES | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 100,253 | $ | 98,342 | $ | 110,102 | $ | 110,598 | $ | 419,295 | $ | 101,122 | $ | 98,999 | $ | 111,308 | $ | 111,191 | $ | 422,620 | ||||||||||||||||||||||
| ENERGY SEGMENT | 80,421 | 78,937 | 96,399 | 93,406 | 349,163 | 90,769 | 80,794 | 99,158 | 92,651 | 363,372 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 129,292 | 123,640 | 136,767 | 118,364 | 508,063 | 115,918 | 120,675 | 133,739 | 123,418 | 493,750 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 309,966 | $ | 300,919 | $ | 343,268 | $ | 322,368 | $ | 1,276,521 | $ | 307,809 | $ | 300,468 | $ | 344,205 | $ | 327,260 | $ | 1,279,742 | ||||||||||||||||||||||
| % SALES GROWTH | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 15 | % | 11 | % | 2 | % | 2 | % | 7 | % | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 14 | % | 28 | % | 24 | % | 13 | % | 19 | % | 13 | % | 2 | % | 3 | % | -1 | % | 4 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 23 | % | 12 | % | 8 | % | -10 | % | 7 | % | -10 | % | -2 | % | -2 | % | 4 | % | -3 | % | ||||||||||||||||||||||
| TOTAL | 18 | % | 16 | % | 10 | % | 0 | % | 10 | % | -1 | % | 0 | % | 0 | % | 2 | % | 0 | % | ||||||||||||||||||||||
| OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 27,933 | $ | 26,690 | $ | 30,681 | $ | 29,473 | $ | 114,777 | $ | 27,006 | $ | 26,350 | $ | 32,426 | $ | 31,862 | $ | 117,644 | ||||||||||||||||||||||
| ENERGY SEGMENT | 13,217 | 11,632 | 18,515 | 18,841 | 62,205 | 15,387 | 9,677 | 19,736 | 18,480 | 63,280 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 18,999 | 13,281 | 18,467 | 10,104 | 60,851 | 7,625 | 8,275 | 12,754 | 11,674 | 40,328 | ||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (7,845 | ) | (7,948 | ) | (8,813 | ) | (8,713 | ) | (33,319 | ) | (6,544 | ) | (7,431 | ) | (7,874 | ) | (9,258 | ) | (31,107 | ) | ||||||||||||||||||||||
| TOTAL | $ | 52,304 | $ | 43,655 | $ | 58,850 | $ | 49,705 | $ | 204,514 | $ | 43,474 | $ | 36,871 | $ | 57,042 | $ | 52,758 | $ | 190,145 | ||||||||||||||||||||||
| OPERATING PROFIT % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 27.9 | % | 27.1 | % | 27.9 | % | 26.6 | % | 27.4 | % | 26.7 | % | 26.6 | % | 29.1 | % | 28.7 | % | 27.8 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 16.4 | % | 14.7 | % | 19.2 | % | 20.2 | % | 17.8 | % | 17.0 | % | 12.0 | % | 19.9 | % | 19.9 | % | 17.4 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 14.7 | % | 10.7 | % | 13.5 | % | 8.5 | % | 12.0 | % | 6.6 | % | 6.9 | % | 9.5 | % | 9.5 | % | 8.2 | % | ||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) | 16.9 | % | 14.5 | % | 17.1 | % | 15.4 | % | 16.0 | % | 14.1 | % | 12.3 | % | 16.6 | % | 16.1 | % | 14.9 | % | ||||||||||||||||||||||
| EBITDA | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 29,220 | $ | 29,116 | $ | 32,070 | $ | 31,774 | $ | 122,180 | $ | 29,033 | $ | 28,471 | $ | 34,374 | $ | 33,742 | $ | 125,620 | ||||||||||||||||||||||
| ENERGY SEGMENT | 18,243 | 15,601 | 22,216 | 23,166 | 79,226 | 19,694 | 14,278 | 23,977 | 22,185 | 80,134 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 22,213 | 16,762 | 21,418 | 13,991 | 74,384 | 12,047 | 12,611 | 16,700 | 15,659 | 57,017 | ||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (7,217 | ) | (7,479 | ) | (8,506 | ) | (7,972 | ) | (31,174 | ) | (6,195 | ) | (6,582 | ) | (7,556 | ) | (8,556 | ) | (28,889 | ) | ||||||||||||||||||||||
| TOTAL | $ | 62,459 | $ | 54,000 | $ | 67,198 | $ | 60,959 | $ | 244,616 | $ | 54,579 | $ | 48,778 | $ | 67,495 | $ | 63,030 | $ | 233,882 | ||||||||||||||||||||||
| EBITDA % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 29.1 | % | 29.6 | % | 29.1 | % | 28.7 | % | 29.1 | % | 28.7 | % | 28.8 | % | 30.9 | % | 30.3 | % | 29.7 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 22.7 | % | 19.8 | % | 23.0 | % | 24.8 | % | 22.7 | % | 21.7 | % | 17.7 | % | 24.2 | % | 23.9 | % | 22.1 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 17.2 | % | 13.6 | % | 15.7 | % | 11.8 | % | 14.6 | % | 10.4 | % | 10.5 | % | 12.5 | % | 12.7 | % | 11.5 | % | ||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) | 20.2 | % | 17.9 | % | 19.6 | % | 18.9 | % | 19.2 | % | 17.7 | % | 16.2 | % | 19.6 | % | 19.3 | % | 18.3 | % | ||||||||||||||||||||||
| ACTUANT CORPORATION | |||||||||||||||||||||||
| SUPPLEMENTAL UNAUDITED DATA | |||||||||||||||||||||||
| RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES | |||||||||||||||||||||||
| (Dollars in thousands, except for per share amounts) | |||||||||||||||||||||||
| FISCAL 2012 | FISCAL 2013 | ||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||
| EARNINGS (LOSS) BEFORE SPECIAL ITEMS (1) | |||||||||||||||||||||||
| NET EARNINGS (LOSS) | $ 37,174 | $ 32,175 | $ 34,401 | $ (16,460) | $ 87,290 | $ 36,343 | $ 28,435 | $ (92,983) | $ 58,253 | $ 30,048 | |||||||||||||
| LOSS (EARNINGS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,204) | (4,522) | (6,664) | 52,376 | 37,986 | (5,792) | (2,601) | 139,060 | (13,138) | 117,529 | |||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 33,970 | 27,653 | 27,737 | 35,916 | 125,276 | 30,551 | 25,834 | 46,077 | 45,115 | 147,577 | |||||||||||||
| DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | 10,482 | - | 10,482 | - | - | - | - | - | |||||||||||||
| INCOME TAX ADJUSTMENT | - | - | - | - | - | - | - | - | (10,596) | (10,596) | |||||||||||||
| TOTAL | $ 33,970 | $ 27,653 | $ 38,219 | $ 35,916 | $ 135,758 | $ 30,551 | $ 25,834 | $ 46,077 | $ 34,519 | $ 136,981 | |||||||||||||
| DILUTED EARNINGS (LOSS) PER SHARE, BEFORE | |||||||||||||||||||||||
| SPECIAL ITEMS (1) | |||||||||||||||||||||||
| NET EARNINGS (LOSS) | $ 0.50 | $ 0.43 | $ 0.45 | $ (0.22) | $ 1.17 | $ 0.49 | $ 0.38 | $ (1.24) | $ 0.78 | $ 0.40 | |||||||||||||
| LOSS (EARNINGS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (0.04) | (0.06) | (0.09) | 0.70 | 0.51 | (0.08) | (0.03) | 1.86 | (0.18) | 1.58 | |||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 0.46 | 0.37 | 0.36 | 0.48 | 1.68 | 0.41 | 0.35 | 0.62 | 0.60 | 1.98 | |||||||||||||
| DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | 0.15 | - | 0.15 | - | - | - | - | - | |||||||||||||
| INCOME TAX ADJUSTMENT | - | - | - | - | - | - | - | - | (0.14) | (0.14) | |||||||||||||
| TOTAL | $ 0.46 | $ 0.37 | $ 0.51 | $ 0.48 | $ 1.83 | $ 0.41 | $ 0.35 | $ 0.62 | $ 0.46 | $ 1.84 | |||||||||||||
| EBITDA (2) | |||||||||||||||||||||||
| NET EARNINGS (LOSS) (GAAP MEASURE) | $ 37,174 | $ 32,175 | $ 34,401 | $ (16,460) | $ 87,290 | $ 36,343 | $ 28,435 | $ (92,983) | $ 58,253 | $ 30,048 | |||||||||||||
| LOSS (EARNINGS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,204) | (4,522) | (6,664) | 52,376 | 37,986 | (5,792) | (2,601) | 139,060 | (13,138) | 117,529 | |||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 33,970 | 27,653 | 27,737 | 35,916 | 125,276 | 30,551 | 25,834 | 46,077 | 45,115 | 147,577 | |||||||||||||
| FINANCING COSTS, NET | 8,222 | 7,821 | 24,066 | 6,281 | 46,390 | 6,322 | 6,260 | 6,229 | 6,026 | 24,837 | |||||||||||||
| INCOME TAX EXPENSE | 9,447 | 8,139 | 4,456 | 7,312 | 29,354 | 5,957 | 4,814 | 3,825 | 776 | 15,372 | |||||||||||||
| DEPRECIATION & AMORTIZATION | 10,820 | 10,387 | 10,939 | 11,450 | 43,596 | 11,749 | 11,870 | 11,364 | 11,113 | 46,096 | |||||||||||||
| EBITDA - EXCLUDING DISCONTINUED OPERATIONS (NON-GAAP MEASURE) | $ 62,459 | $ 54,000 | $ 67,198 | $ 60,959 | $ 244,616 | $ 54,579 | $ 48,778 | $ 67,495 | $ 63,030 | $ 233,882 | |||||||||||||
| FOOTNOTES | |||||||||||||||||||||||
| NOTE: | The total of the individual quarters may not equal the annual total due to rounding. | ||||||||||||||||||||||
| (1) | Earnings (loss) and diluted earnings (loss) per share, excluding special items (debt refinancing charges, income tax adjustments, and discontinued operations), represent net earnings (loss) and diluted earnings (loss) per share per the Condensed Consolidated Statements of Operations 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 (loss) or diluted earnings (loss) 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 (loss) before financing costs, net, income tax expense, discontinued operations and depreciation & amortization. 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 Operations 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 October 1, 2013