Actuant Reports Fourth Quarter and Full Year Fiscal 2015 Results; Provides 2016 Guidance
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its fourth quarter and fiscal year ended August 31, 2015.
Fourth Quarter Highlights
- Fourth quarter total sales declined 15% year-over-year with 8% attributable to the strengthening of the US dollar. Core sales were down 7% (total sales excluding the impact of acquisitions, divestitures and foreign currency rate changes).
- Diluted earnings per share (“EPS”) were $0.37 in the fourth quarter of fiscal 2015 versus $0.47 in the prior year, which excluded a $0.04 divestiture gain (see “Consolidated Results” below and attached reconciliation of earnings).
- Continued tight cost control with the year-over-year percentage reduction in selling, administrative and engineering (SA&E) expense exceeding that of the sales decline for the second consecutive quarter.
- Strong fourth quarter free cash flow resulting in full year free cash flow conversion of over 100% of net earnings for the 15th consecutive year.
- Introduced fiscal 2016 full year sales and EPS guidance of $1.16-1.20 billion and $1.20-1.40, respectively, excluding restructuring charges associated with incremental cost reduction actions.
Robert C. Arzbaecher, Chairman, President and CEO of Actuant commented, “Fourth quarter sales and operating earnings were in line with our expectations and reflect the continuing impact of the downturn across key end markets including energy, agriculture and general industrial. Our focus remains on tightly managing costs while continuing to fund our best growth initiatives across the businesses. On the cost front, we again achieved a year-over-year percentage reduction in SA&E expense greater than the decline in revenues. However, gross profit and operating margins in the fourth quarter were down due to the adverse impact of lower production and absorption levels associated with inventory destocking, approximately $3 million of downsizing costs, unfavorable sales mix, and negative purchase price variances driven by the stronger US dollar. We were especially pleased with the strong fourth quarter cash flow which drove our 15th consecutive year of free cash flow conversion of net earnings in excess of 100%, which provides the fuel for future business growth.
Given our expectations of continued sluggish demand in fiscal 2016, we are undertaking actions to further simplify our business and rationalize the cost structure. This will position Actuant for stronger profitable growth as end market demand improves. We expect fiscal 2016 to be a transformative year for Actuant and I am excited to be able to launch these important actions to help achieve our vision.”
Consolidated Results
Consolidated sales for the fourth quarter were $300 million, 15% below the $354 million in the comparable prior year quarter. Core sales declined 7%, unfavorable foreign currency exchange rate changes negatively impacted sales by 8% and the net impact of acquisitions and divestitures was neutral. Fiscal 2015 fourth quarter earnings and EPS were $22.1 million, or $0.37 per share, compared to $35.6 million and $0.51 per share, respectively, in the comparable prior year quarter. The prior year included $2.8 million, or $0.04 per share gain on the sale of the RV business. Excluding this item, EPS declined 21% to $0.37 from $0.47 in the comparable prior year quarter (see attached reconciliation of earnings).
Sales for the fiscal year ended August 31, 2015 were $1,249 million, 11% lower than the $1,400 million in the prior year. Excluding the 6% decline from the stronger US dollar and neutral impact of acquisitions and divestitures, full year core sales declined 5%. Fiscal 2015 earnings from continuing operations were $19.9 million or $0.32 per diluted share. Excluding the $84 million ($1.33 per share) second quarter non-cash impairment charge, earnings and EPS from continuing operations in fiscal 2015 were $102.5 million, or $1.65 per diluted share, compared to $138.6 million, or $1.91 per diluted share for the prior year, excluding the aforementioned RV gain (see attached reconciliation of earnings).
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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 | Year Ended | |||||||
| August 31, | August 31, | |||||||
| 2015 | 2014 | 2015 | 2014 | |||||
| Sales | $100.0 | $111.9 | $402.5 | $413.9 | ||||
| Operating Profit | $26.3 | $32.8 | $105.7 | $120.2 | ||||
| Operating Profit % | 26.3% | 29.3% | 26.3% | 29.1% | ||||
Fourth quarter fiscal 2015 Industrial segment sales were $100 million, 11% lower than the comparable prior year period. Unfavorable currency translation was a 6% headwind, and core sales declined 5%. Integrated Solutions sales declined on a year-over-year basis with the wind-down of certain large project related activity. Industrial Tool demand increased modestly in Europe but declined overall due to sluggish activity levels across industrial markets in China and North America, including the impact of distributor destocking. Sequentially, the North American sales rate of change improved modestly while China weakened further. Fourth quarter margins declined year-over-year due to the lower sales, reduced overhead absorption associated with inventory reduction actions, and unfavorable purchase price variances resulting from the stronger US dollar.
| Energy Segment | ||||||||
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(US $ in millions) |
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| Three Months Ended | Year Ended | |||||||
| August 31, | August 31, | |||||||
| 2015 | 2014 | 2015 | 2014 | |||||
| Sales | $100.8 | $123.2 | $411.9 | $462.4 | ||||
| Operating (Loss) Profit | $9.1 | $18.0 | $(41.4) | $56.4 | ||||
| Adjusted Operating Profit (1) | $9.1 | $18.0 | $43.0 | $56.4 | ||||
| Adjusted Operating Profit % (1) | 9.0% | 14.7% | 10.4% | 12.2% | ||||
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(1) Excludes second quarter fiscal 2015 pre-tax impairment charge of $84.4 million. |
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Fiscal 2015 fourth quarter Energy segment sales declined 18% year-over-year to $101 million. Excluding the unfavorable 10% foreign currency headwind, the 8% core sales decline was in line with expectations. Cortland continued to experience the impact of lower customer upstream capital spending, and posted a core sales reduction in line with its year-to-date pace. Hydratight’s core sales grew modestly in the quarter reflecting the commencement of service work on previously deferred maintenance projects, as well as solid activity levels in the Middle East. Viking core sales declined as expected, resulting from lower Asia Pacific activity as certain large mooring projects were completed. Fourth quarter operating profit margin declined due primarily to the high decremental margins at Viking, unfavorable mix at Hydratight (more service, less product and rental), restructuring costs, and lower production absorption, all of which were partially offset by cost reduction actions throughout the segment.
| Engineered Solutions Segment | ||||||||
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(US $ in millions) |
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| Three Months Ended | Year Ended | |||||||
| August 31, | August 31, | |||||||
| 2015 | 2014 | 2015 | 2014 | |||||
| Sales | $99.5 | $119.3 | $434.9 | $523.6 | ||||
| Operating Profit | $3.2 | $5.6 | $19.8 | $41.9 | ||||
| Operating Profit % | 3.2% | 4.7% | 4.6% | 8.0% | ||||
Fourth quarter fiscal 2015 Engineered Solutions segment sales were $100 million, 17% below the prior year. Excluding the 1% decline from the June 2014 RV product line divestiture and the 8% decrease from the stronger US dollar, core sales were 8% lower year-over-year. Stronger year-over-year European OEM heavy-duty truck production benefited core sales growth, however essentially all other segment end markets experienced weak fourth quarter demand, partially the result of customer inventory destocking. Fourth quarter operating profit margin declined year-over-year on lower volumes and manufacturing absorption, unfavorable purchase price variance associated with the stronger US dollar, and restructuring costs.
Corporate and Income Taxes
Corporate expenses of $9.8 million in the fourth quarter of fiscal 2015 were $1.5 million above the prior year due to an adverse legal matter and former CEO separation costs. Fourth quarter income taxes included the benefit of tax planning projects, favorable provision to return adjustments and other favorable income tax adjustments.
Financial Position
Net debt at August 31, 2015 was $419 million (total debt of $588 million less $169 million of cash), which was $73 million lower than the prior quarter end due to strong fourth quarter cash flow. Partially offsetting this was $7 million of cash used to repurchase approximately 0.3 million shares of common stock, as well as the impact of unfavorable foreign currency movements on net debt. At August 31, 2015, the Company had a net debt to EBITDA leverage ratio of 2.2 and nearly $600 million in revolver availability under the newly amended and extended credit agreement.
Outlook
Arzbaecher continued, “Actuant’s fiscal 2016 outlook reflects the existing weakness in our end markets. The first half in particular is expected to continue recent core sales trends, but should give way to sequential improvement in the back half of the year as well as easier comparisons. In particular, Energy experienced growth in the first half of fiscal 2015 and is only now seeing the full brunt of reduced oil & gas prices. We expect customers in our other segments to exhibit weak first half order patterns as part of inventory reduction efforts. Finally, foreign currency headwinds associated with the stronger US dollar will also be most acute in the early part of the fiscal year due to prior year comparisons.
We intend to further simplify our business and reduce our cost structure during the year. We are in the process of taking several incremental restructuring actions, and the related $25 million of pre-tax costs will be recognized over the next eighteen months as we exit certain facilities and reduce organizational complexity. Given the inherent difficulty in estimating the quarterly timing of the charges from such actions, we have excluded these charges from fiscal 2016 earnings guidance, but expect an approximate two year payback. Our guidance also excludes the impact of potential acquisitions and stock buybacks, which will be incorporated into future quarterly guidance updates as they occur.
We currently project full year fiscal 2016 sales in the range of $1.16 - 1.20 billion, reflecting a core sales decline of 1-4%, and $40 million of headwind from the stronger US dollar. EPS (excluding restructuring charges, future stock buybacks and acquisitions) is expected to be in the range of $1.20-1.40, reflecting the lower projected sales volume, unfavorable sales mix within the Energy segment and across our three segments, and a higher effective tax rate (estimated at 17-19%). Full year free cash flow is expected to be in the range of $110-120 million. First quarter guidance includes sales in the $275-285 million range on a 7-9% core sales decline, and EPS of $0.20-0.25 (excluding restructuring charges, future stock buybacks and acquisitions).
We are taking specific actions that we expect will help deliver 18% EBITDA margins in fiscal 2018, up from approximately 15% today. The majority of this improvement will be driven by internal initiatives such as simplification of organization structures and the next phase of facility consolidations. In addition, we expect to benefit from meaningful improvement in end market demand supplemented by disciplined capital deployment on tuck-in acquisitions. By focusing on a few critical initiatives, Actuant should be positioned to achieve double-digit EBITDA CAGR over the next three years reaching an approximate $300 million run rate by fiscal 2018.”
In closing, Arzbaecher stated, “Actuant is well-positioned to provide customers with advanced products and services, while funding both its internal simplification efforts and growth plans. The benefit of these actions will become increasingly clear as our end markets recover. These foundational improvements in our cost structure, combined with disciplined capital allocation, should drive increased shareholder value over the long-term.”
Conference Call Information
An investor conference call is scheduled for 10am CT today, September 30, 2015. 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
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 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, | ||||||||||||
| 2015 | 2014 | ||||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash and cash equivalents | $ | 168,846 | $ | 109,012 | |||||||||
| Accounts receivable, net | 193,081 | 227,008 | |||||||||||
| Inventories, net | 142,752 | 162,620 | |||||||||||
| Deferred income taxes | 12,922 | 11,050 | |||||||||||
| Other current assets | 42,788 | 33,300 | |||||||||||
| Total current assets | 560,389 | 542,990 | |||||||||||
| Property, plant and equipment, net | 142,458 | 169,101 | |||||||||||
| Goodwill | 608,256 | 742,770 | |||||||||||
| Other intangible assets, net | 308,762 | 365,177 | |||||||||||
| Other long-term assets | 17,052 | 36,841 | |||||||||||
| Total assets | $ | 1,636,917 | $ | 1,856,879 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Trade accounts payable | $ | 118,115 | $ | 145,798 | |||||||||
| Accrued compensation and benefits | 43,707 | 52,964 | |||||||||||
| Current maturities of debt and short-term borrowings | 3,969 | 4,500 | |||||||||||
| Income taxes payable | 14,805 | 38,347 | |||||||||||
| Other current liabilities | 54,460 | 57,512 | |||||||||||
| Total current liabilities | 235,056 | 299,121 | |||||||||||
| Long-term debt | 584,309 | 385,500 | |||||||||||
| Deferred income taxes | 72,941 | 96,970 | |||||||||||
| Pension and postretirement benefit accruals | 17,828 | 15,699 | |||||||||||
| Other long-term liabilities | 53,782 | 57,878 | |||||||||||
| Total liabilities | 963,916 | 855,168 | |||||||||||
| Shareholders' equity | |||||||||||||
| Capital stock | 15,787 | 15,695 | |||||||||||
| Additional paid-in capital | 104,308 | 93,449 | |||||||||||
| Treasury stock | (600,630 | ) | (388,627 | ) | |||||||||
| Retained earnings | 1,367,176 | 1,349,602 | |||||||||||
| Accumulated other comprehensive loss | (213,640 | ) | (68,408 | ) | |||||||||
| Stock held in trust | (4,292 | ) | (4,083 | ) | |||||||||
| Deferred compensation liability | 4,292 | 4,083 | |||||||||||
| Total shareholders' equity | 673,001 | 1,001,711 | |||||||||||
| Total liabilities and shareholders' equity | $ | 1,636,917 | $ | 1,856,879 | |||||||||
| Actuant Corporation | |||||||||||||||||
| Condensed Consolidated Statements of Earnings | |||||||||||||||||
| (Dollars in thousands except per share amounts) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Net sales | $ | 300,384 | $ | 354,349 | $ | 1,249,254 | $ | 1,399,862 | |||||||||
| Cost of products sold | 193,841 | 212,253 | 787,414 | 852,990 | |||||||||||||
| Gross profit | 106,543 | 142,096 | 461,840 | 546,872 | |||||||||||||
| Selling, administrative and engineering expenses | 71,792 | 87,438 | 299,601 | 332,093 | |||||||||||||
| Gain on product line divestiture | - | (13,495 | ) | - | (13,495 | ) | |||||||||||
| Amortization of intangible assets | 5,970 | 6,453 | 24,332 | 25,166 | |||||||||||||
| Impairment charge | - | - | 84,353 | - | |||||||||||||
| Operating profit | 28,781 | 61,700 | 53,554 | 203,108 | |||||||||||||
| Financing costs, net | 7,374 | 6,101 | 28,057 | 25,045 | |||||||||||||
| Other expense, net | 595 | 950 | 106 | 4,037 | |||||||||||||
| Earnings from continuing operations before income tax expense | 20,812 | 54,649 | 25,391 | 174,026 | |||||||||||||
| Income tax expense (benefit) | (1,266 | ) | 19,062 | 5,519 | 32,573 | ||||||||||||
| Earnings from continuing operations | 22,078 | 35,587 | 19,872 | 141,453 | |||||||||||||
| Earnings from discontinued operations, net of income taxes | - | - | - | 22,120 | |||||||||||||
| Net earnings | $ | 22,078 | $ | 35,587 | $ | 19,872 | $ | 163,573 | |||||||||
| Earnings from continuing operations per share | |||||||||||||||||
| Basic | $ | 0.37 | $ | 0.52 | $ | 0.32 | $ | 1.99 | |||||||||
| Diluted | 0.37 | 0.51 | 0.32 | 1.95 | |||||||||||||
| Earnings per share | |||||||||||||||||
| Basic | $ | 0.37 | $ | 0.52 | $ | 0.32 | $ | 2.31 | |||||||||
| Diluted | 0.37 | 0.51 | 0.32 | 2.26 | |||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||
| Basic | 59,314 | 68,025 | 61,262 | 70,942 | |||||||||||||
| Diluted | 59,897 | 69,391 | 62,055 | 72,486 | |||||||||||||
| 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, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Operating Activities | |||||||||||||||||
| Net earnings | $ | 22,078 | $ | 35,587 | $ | 19,872 | $ | 163,573 | |||||||||
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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| Depreciation and amortization | 13,004 | 13,701 | 53,239 | 60,635 | |||||||||||||
| Net gain on disposal of businesses | - | (2,813 | ) | - | (29,152 | ) | |||||||||||
| Stock-based compensation expense | 2,809 | 3,109 | 12,046 | 17,115 | |||||||||||||
| Provision (benefit) for deferred income taxes | (15,887 | ) | 4,272 | (13,939 | ) | (7,273 | ) | ||||||||||
| Impairment charge | - | - | 84,353 | - | |||||||||||||
| Amortization of debt discount and debt issuance costs | 568 | 423 | 1,897 | 1,829 | |||||||||||||
| Other non-cash adjustments | 392 | 178 | 805 | (168 | ) | ||||||||||||
| Changes in components of working capital and other: | |||||||||||||||||
| Accounts receivable | 24,142 | 27,607 | 12,827 | 1,336 | |||||||||||||
| Inventories | 11,684 | 3,761 | 6,608 | (21,915 | ) | ||||||||||||
| Prepaid expenses and other assets | 6,832 | 5,618 | (8,761 | ) | 4,276 | ||||||||||||
| Trade accounts payable | (11,523 | ) | (21,296 | ) | (19,801 | ) | (19,832 | ) | |||||||||
| Income taxes payable/refundable | 36,354 | (12,881 | ) | (11,629 | ) | (38,820 | ) | ||||||||||
| Accrued compensation and benefits | 2,620 | 3,226 | (8,944 | ) | 11,779 | ||||||||||||
| Other accrued liabilities | (5,385 | ) | (8,444 | ) | 395 | (18,149 | ) | ||||||||||
| Cash provided by operating activities | 87,688 | 52,048 | 128,968 | 125,234 | |||||||||||||
| Investing Activities | |||||||||||||||||
| Proceeds from sale of property, plant and equipment | 358 | 238 | 1,244 | 44,274 | |||||||||||||
| Proceeds from sale of businesses, net of transaction costs | - | 36,817 | - | 289,590 | |||||||||||||
| Capital expenditures | (5,282 | ) | (8,018 | ) | (22,516 | ) | (41,857 | ) | |||||||||
| Business acquisitions, net of cash acquired | - | - | - | (30,500 | ) | ||||||||||||
| Cash (used in) provided by investing activities | (4,924 | ) | 29,037 | (21,272 | ) | 261,507 | |||||||||||
| Financing Activities | |||||||||||||||||
| Net borrowings (repayments) on revolving credit facility | 220 | - | 220 | (125,000 | ) | ||||||||||||
| Principal repayments on term loan | - | - | (3,375 | ) | - | ||||||||||||
| Proceeds from term loan | - | - | 213,375 | - | |||||||||||||
| Redemption of 5.625% Senior Notes | (11,941 | ) | - | (11,941 | ) | - | |||||||||||
| Purchase of treasury shares | (7,376 | ) | (100,560 | ) | (212,003 | ) | (283,712 | ) | |||||||||
| Payment of contingent acquisition consideration | - | - | - | (1,585 | ) | ||||||||||||
| Debt issuance costs | (150 | ) | - | (2,025 | ) | - | |||||||||||
| Stock option exercises, related tax benefits and other | 350 | 2,375 | 5,396 | 32,224 | |||||||||||||
| Cash dividend | - | - | (2,598 | ) | (2,919 | ) | |||||||||||
| Cash used in financing activities | (18,897 | ) | (98,185 | ) | (12,951 | ) | (380,992 | ) | |||||||||
| Effect of exchange rate changes on cash | (3,146 | ) | (3,513 | ) | (34,911 | ) | (723 | ) | |||||||||
| Net increase (decrease) in cash and cash equivalents | 60,721 | (20,613 | ) | 59,834 | 5,026 | ||||||||||||
| Cash and cash equivalents - beginning of period | 108,125 | 129,625 | 109,012 | 103,986 | |||||||||||||
| Cash and cash equivalents - end of period | $ | 168,846 | $ | 109,012 | $ | 168,846 | $ | 109,012 | |||||||||
| ACTUANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
| FISCAL 2014 | FISCAL 2015 | |||||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||||||||||||
| SALES | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 98,641 | $ | 93,571 | $ | 109,809 | $ | 111,880 | $ | 413,901 | $ | 102,413 | $ | 96,488 | $ | 103,546 | $ | 100,016 | $ | 402,463 | ||||||||||||||||||||||
| ENERGY SEGMENT | 107,925 | 106,031 | 125,231 | 123,181 | 462,368 | 111,522 | 100,211 | 99,296 | 100,846 | 411,875 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 132,990 | 128,168 | 143,147 | 119,288 | 523,593 | 113,830 | 104,306 | 117,258 | 99,522 | 434,916 | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 339,556 | $ | 327,770 | $ | 378,187 | $ | 354,349 | $ | 1,399,862 | $ | 327,765 | $ | 301,005 | $ | 320,100 | $ | 300,384 | $ | 1,249,254 | ||||||||||||||||||||||
| % SALES GROWTH | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | -2 | % | -5 | % | -1 | % | 1 | % | -2 | % | 4 | % | 3 | % | -6 | % | -11 | % | -3 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 19 | % | 31 | % | 26 | % | 33 | % | 27 | % | 3 | % | -5 | % | -21 | % | -18 | % | -11 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 15 | % | 6 | % | 7 | % | -3 | % | 6 | % | -14 | % | -19 | % | -18 | % | -17 | % | -17 | % | ||||||||||||||||||||||
| TOTAL | 10 | % | 9 | % | 10 | % | 8 | % | 9 | % | -3 | % | -8 | % | -15 | % | -15 | % | -11 | % | ||||||||||||||||||||||
| OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 26,897 | $ | 26,477 | $ | 34,123 | $ | 32,752 | $ | 120,249 | $ | 26,705 | $ | 23,517 | $ | 29,165 | $ | 26,267 | $ | 105,654 | ||||||||||||||||||||||
| ENERGY SEGMENT | 8,923 | 9,504 | 19,936 | 18,049 | 56,412 | 12,442 | 8,680 | 12,774 | 9,106 | 43,002 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 13,190 | 9,548 | 13,560 | 5,638 | 41,936 | 6,278 | 2,010 | 8,313 | 3,188 | 19,789 | ||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (5,363 | ) | (6,548 | ) | (8,839 | ) | (8,234 | ) | (28,984 | ) | (7,207 | ) | (6,301 | ) | (7,250 | ) | (9,780 | ) | (30,538 | ) | ||||||||||||||||||||||
| TOTAL - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE | $ | 43,647 | $ | 38,981 | $ | 58,780 | $ | 48,205 | $ | 189,613 | $ | 38,218 | $ | 27,906 | $ | 43,002 | $ | 28,781 | $ | 137,907 | ||||||||||||||||||||||
| GAIN ON PRODUCT LINE DIVESTITURE | - | - | - | 13,495 | 13,495 | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | - | (84,353 | ) | - | - | (84,353 | ) | ||||||||||||||||||||||||||||||
| TOTAL | $ | 43,647 | $ | 38,981 | $ | 58,780 | $ | 61,700 | $ | 203,108 | $ | 38,218 | $ | (56,447 | ) | $ | 43,002 | $ | 28,781 | $ | 53,554 | |||||||||||||||||||||
| OPERATING PROFIT % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 27.3 | % | 28.3 | % | 31.1 | % | 29.3 | % | 29.1 | % | 26.1 | % | 24.4 | % | 28.2 | % | 26.3 | % | 26.3 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 8.3 | % | 9.0 | % | 15.9 | % | 14.7 | % | 12.2 | % | 11.2 | % | 8.7 | % | 12.9 | % | 9.0 | % | 10.4 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 9.9 | % | 7.4 | % | 9.5 | % | 4.7 | % | 8.0 | % | 5.5 | % | 1.9 | % | 7.1 | % | 3.2 | % | 4.6 | % | ||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE | 12.9 | % | 11.9 | % | 15.5 | % | 13.6 | % | 13.5 | % | 11.7 | % | 9.3 | % | 13.4 | % | 9.6 | % | 11.0 | % | ||||||||||||||||||||||
| EBITDA | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 28,657 | $ | 27,907 | $ | 35,426 | $ | 35,017 | $ | 127,007 | $ | 28,715 | $ | 25,534 | $ | 31,194 | $ | 27,968 | $ | 113,411 | ||||||||||||||||||||||
| ENERGY SEGMENT | 17,923 | 18,130 | 27,898 | 24,809 | 88,760 | 20,011 | 15,732 | 19,278 | 15,348 | 70,369 | ||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 17,365 | 13,581 | 18,464 | 9,046 | 58,456 | 11,514 | 5,603 | 12,294 | 6,635 | 36,046 | ||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (5,235 | ) | (6,202 | ) | (8,659 | ) | (7,916 | ) | (28,012 | ) | (7,875 | ) | (5,111 | ) | (7,037 | ) | (8,770 | ) | (28,793 | ) | ||||||||||||||||||||||
| TOTAL - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE | $ | 58,710 | $ | 53,416 | $ | 73,129 | $ | 60,956 | $ | 246,211 | $ | 52,365 | $ | 41,758 | $ | 55,729 | $ | 41,181 | $ | 191,033 | ||||||||||||||||||||||
| GAIN ON PRODUCT LINE DIVESTITURE | - | - | - | 13,495 | 13,495 | - | - | - | - | - | ||||||||||||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | - | (84,353 | ) | - | - | (84,353 | ) | ||||||||||||||||||||||||||||||
| TOTAL | $ | 58,710 | $ | 53,416 | $ | 73,129 | $ | 74,451 | $ | 259,706 | $ | 52,365 | $ | (42,595 | ) | $ | 55,729 | $ | 41,181 | $ | 106,680 | |||||||||||||||||||||
| EBITDA % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 29.1 | % | 29.8 | % | 32.3 | % | 31.3 | % | 30.7 | % | 28.0 | % | 26.5 | % | 30.1 | % | 28.0 | % | 28.2 | % | ||||||||||||||||||||||
| ENERGY SEGMENT | 16.6 | % | 17.1 | % | 22.3 | % | 20.1 | % | 19.2 | % | 17.9 | % | 15.7 | % | 19.4 | % | 15.2 | % | 17.1 | % | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 13.1 | % | 10.6 | % | 12.9 | % | 7.6 | % | 11.2 | % | 10.1 | % | 5.4 | % | 10.5 | % | 6.7 | % | 8.3 | % | ||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE | 17.3 | % | 16.3 | % | 19.3 | % | 17.2 | % | 17.6 | % | 16.0 | % | 13.9 | % | 17.4 | % | 13.7 | % | 15.3 | % | ||||||||||||||||||||||
| ACTUANT CORPORATION | ||||||||||||||||||||||||||||||||||||||||
| SUPPLEMENTAL UNAUDITED DATA | ||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES | ||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except for per share amounts) | ||||||||||||||||||||||||||||||||||||||||
| FISCAL 2014 | FISCAL 2015 | |||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||||||||||
| EARNINGS BEFORE SPECIAL ITEMS (1) | ||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) | $ | 36,037 | $ | 41,392 | $ | 50,557 | $ | 35,587 | $ | 163,573 | $ | 24,674 | $ | (64,838 | ) | $ | 37,958 | $ | 22,078 | $ | 19,872 | |||||||||||||||||||
| EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,032 | ) | (19,088 | ) | - | - | (22,120 | ) | - | - | - | - | - | |||||||||||||||||||||||||||
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 33,005 | 22,304 | 50,557 | 35,587 | 141,453 | 24,674 | (64,838 | ) | 37,958 | 22,078 | 19,872 | |||||||||||||||||||||||||||||
| GAIN ON PRODUCT LINE DIVESTITURE, NET OF INCOME TAX | - | - | - | (2,813 | ) | (2,813 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
| IMPAIRMENT CHARGE, NET OF INCOME TAX | - | - | - | - | - | - | 82,636 | - | - | 82,636 | ||||||||||||||||||||||||||||||
| TOTAL | $ | 33,005 | $ | 22,304 | $ | 50,557 | $ | 32,774 | $ | 138,640 | $ | 24,674 | $ | 17,798 | $ | 37,958 | $ | 22,078 | $ | 102,508 | ||||||||||||||||||||
|
DILUTED EARNINGS PER SHARE, BEFORE SPECIAL ITEMS (1) |
||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) | $ | 0.48 | $ | 0.56 | $ | 0.70 | $ | 0.51 | $ | 2.26 | $ | 0.38 | $ | (1.05 | ) | $ | 0.63 | $ | 0.37 | $ | 0.32 | |||||||||||||||||||
| EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (0.04 | ) | (0.26 | ) | - | - | (0.31 | ) | - | - | - | - | - | |||||||||||||||||||||||||||
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 0.44 | 0.30 | 0.70 | 0.51 | 1.95 | 0.38 | (1.05 | ) | 0.63 | 0.37 | 0.32 | |||||||||||||||||||||||||||||
| GAIN ON PRODUCT LINE DIVESTITURE, NET OF INCOME TAX | - | - | - | (0.04 | ) | (0.04 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
| IMPAIRMENT CHARGE, NET OF INCOME TAX | - | - | - | - | - | - | 1.33 | - | - | 1.33 | ||||||||||||||||||||||||||||||
| TOTAL | $ | 0.44 | $ | 0.30 | $ | 0.70 | $ | 0.47 | $ | 1.91 | $ | 0.38 | $ | 0.28 | $ | 0.63 | $ | 0.37 | $ | 1.65 | ||||||||||||||||||||
| EBITDA (2) | ||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) (GAAP MEASURE) | $ | 36,037 | $ | 41,392 | $ | 50,557 | $ | 35,587 | $ | 163,573 | $ | 24,674 | $ | (64,838 | ) | $ | 37,958 | $ | 22,078 | $ | 19,872 | |||||||||||||||||||
| EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,032 | ) | (19,088 | ) | - | - | (22,120 | ) | - | - | - | - | - | |||||||||||||||||||||||||||
| EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 33,005 | 22,304 | 50,557 | 35,587 | 141,453 | 24,674 | (64,838 | ) | 37,958 | 22,078 | 19,872 | |||||||||||||||||||||||||||||
| FINANCING COSTS, NET | 6,750 | 6,262 | 5,932 | 6,101 | 25,045 | 6,191 | 7,030 | 7,462 | 7,374 | 28,057 | ||||||||||||||||||||||||||||||
| INCOME TAX EXPENSE (BENEFIT) | 2,751 | 9,089 | 1,671 | 19,062 | 32,573 | 7,792 | 1,980 | (2,987 | ) | (1,266 | ) | 5,519 | ||||||||||||||||||||||||||||
| DEPRECIATION & AMORTIZATION | 16,204 | 15,761 | 14,969 | 13,701 | 60,635 | 13,708 | 13,233 | 13,296 | 12,995 | 53,232 | ||||||||||||||||||||||||||||||
| EBITDA - EXCLUDING DISCONTINUED OPERATIONS (NON-GAAP MEASURE) | $ | 58,710 | $ | 53,416 | $ | 73,129 | $ | 74,451 | $ | 259,706 | $ | 52,365 | $ | (42,595 | ) | $ | 55,729 | $ | 41,181 | $ | 106,680 | |||||||||||||||||||
| GAIN ON PRODUCT LINE DIVESTITURE | - | - | - | (13,495 | ) | (13,495 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | - | 84,353 | - | - | 84,353 | ||||||||||||||||||||||||||||||
| EBITDA - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE (NON-GAAP MEASURE) | $ | 58,710 | $ | 53,416 | $ | 73,129 | $ | 60,956 | $ | 246,211 | $ | 52,365 | $ | 41,758 | $ | 55,729 | $ | 41,181 | $ | 191,033 | ||||||||||||||||||||
| FOOTNOTES | ||||||||||||||||||||||||||||||||||||||||
| NOTE: | The total of the individual quarters may not equal the annual total due to rounding. | |||||||||||||||||||||||||||||||||||||||
| (1) | Earnings and diluted earnings per share, excluding special items (discontinued operations, gain on product line divestiture and impairment charge), represent net earnings (loss) and diluted earnings (loss) 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 (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 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 Earnings data. EBITDA should not be considered as an alternative to net earnings (loss) or operating profit (loss) 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. | |||||||||||||||||||||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150930005875/en/
Actuant Corporation
Karen Bauer
Communications & Investor
Relations Leader
262-293-1562
Source: Actuant Corporation
Released September 30, 2015