Actuant Announces Record Third Quarter Results and Provides Fiscal 2008 Outlook
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2007. Including restructuring charges, third quarter fiscal 2007 net earnings and diluted earnings per share ("EPS") were $29.6 million and $0.95, respectively, compared to prior year net earnings and EPS of $26.8 million and $0.86, respectively. Fiscal 2007 third quarter results include a $0.4 million ($0.01 per diluted share) charge covering a portion of the Company's previously announced restructuring of its European Electrical business. Fiscal 2006 third quarter results include a $2.6 million ($0.08 per diluted share) one-time tax benefit. Excluding the restructuring charge and prior year tax benefit, third quarter EPS increased 23% year-over-year from $0.78 to $0.96 (see attached reconciliation of earnings).
Third Quarter 2007 Highlights
-- 23% improvement in EPS, excluding restructuring and prior year
tax benefit, representing largest quarterly EPS growth of the
year.
-- Record sales of $385 million, a 22% increase over the prior
year.
-- Strong cash flow resulting in third quarter net debt reduction
of $88 million. Year-to-date free cash flow of $98 million, a
138% conversion of net income.
-- Sequential and year-over-year operating profit and EBITDA
margin improvement.
-- Completed acquisition of T.T. Fijnmechanica B.V. ("TTF"),
broadening the Industrial Segment product offering.
-- Announced $250 million Senior Notes offering (completed June
12th).
Robert Arzbaecher, President and CEO of Actuant commented, "We are pleased with our performance in the third quarter which added to our track record of consistent, profitable growth. With the exception of the expected year-over-year sales decline in the Actuation Systems segment, we saw continued core sales growth in our other three segments. These results reinforce the benefits of Actuant's customer, market and geographic diversification. In addition, acquisitions contributed $42 million or 13% of the sales improvement in the third quarter and highlight the success of adding to growth opportunities in our existing businesses via acquisitions."
Consolidated Results
Third quarter sales increased 22% to $385 million from $317 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 (5%) and acquisitions (13%), core sales growth was 4%. The Industrial Segment once again generated double digit core sales growth while the Actuation Systems Segment reported a year-over-year sales decline due to prior year convertible top launches and the North American heavy duty truck pre-buy.
The third quarter operating margin was 13.7%, excluding restructuring charges, an increase of 20 basis points versus the prior year resulting from improvements in both gross profit margin and selling, administrative and engineering spending, partially offset by higher acquisition related amortization expense. These improvements reflect the Company's strategic sourcing and Lean Enterprise Across Discipline (LEAD) activities.
Sales for the nine months ended May 31, 2007 were $1.069 billion, or 22% higher than the $877 million in the comparable prior year period. Excluding the impact of foreign currency rate changes and sales from acquired businesses, core sales increased 7%.
Earnings for the nine months ended May 31, 2007, excluding the restructuring charge, rose 19% to $77.1 million, or $2.48 per diluted share, compared to $64.8 million, or $2.11 for the comparable prior year period (excluding the tax benefit). Year-to-date fiscal 2007 results include $0.10 per diluted share of European Electrical restructuring charges while fiscal 2006 included an $0.08 favorable tax adjustment (see attached reconciliation of earnings).
Segment Results
---------------------------
Industrial Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Sales $112.8 $83.1 $307.1 $227.9
Operating Profit $33.0 $21.3 $85.7 $58.1
Operating Profit % 29.3% 25.6% 27.9% 25.5%
Third quarter fiscal 2007 Industrial Segment sales increased 36% to $113 million, resulting from increased demand, the weaker US dollar and sales from acquired businesses. Excluding currency translation and sales from acquired businesses, Industrial Segment sales increased approximately 15% from the comparable prior year period, driven by continued strong demand in both the high-force hydraulic tool and joint integrity product lines. Third quarter operating profit margins expanded 370 basis points to 29.3% due primarily to the benefit of higher volume and operating efficiencies.
Electrical Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Sales $127.7 $109.4 $373.3 $320.6
Operating Profit (1) $10.3 $11.2 $29.2 $32.1
Operating Profit % 8.1% 10.2% 7.8% 10.0%
(1) Operating profit excludes European Electrical restructuring
charges of $0.4 million and $4.3 million for the three and nine
months ended May 31, 2007, respectively.
Fiscal 2007 third quarter Electrical Segment sales increased 17% to $128 million, reflecting 3% core sales growth, favorable foreign currency exchange rate changes and the August 2006 acquisition of Actown. The Electrical Segment operating profit margin declined from 10.2% in the third quarter of fiscal 2006 to 8.1% in fiscal 2007, excluding restructuring charges, primarily due to restructuring related inefficiencies in the European Electrical operations, product buyback and reset costs and unfavorable sales and acquisition mix. The Company expects to substantially complete the previously announced restructuring of its European Electrical operations by the end of calendar 2007.
Actuation Systems Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Sales $111.8 $109.1 $315.1 $285.6
Operating Profit $11.0 $12.2 $27.6 $31.5
Operating Profit % 9.8% 11.2% 8.7% 11.0%
Actuation Systems third quarter fiscal 2007 sales increased 2% to $112 million. Core sales declined 2% in the quarter as increased demand in the recreational vehicle ("RV") and European truck markets was more than offset by declines in both the automotive and North American truck markets. Automotive sales in the third fiscal quarter of last year were over 50% higher than the previous year quarter due to several new convertible top platform launches. The decline in North America truck was anticipated due to the impact of emissions regulation changes. Operating profit margins declined year-over-year due primarily to unfavorable sales mix; however, they improved sequentially reflecting the benefit of profit improvement actions.
Engineered Products Segment
(US $ in millions)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Sales $32.9 $15.0 $73.6 $42.5
Operating Profit $4.3 $2.1 $9.6 $5.7
Operating Profit % 13.1% 14.3% 13.0% 13.4%
Fiscal 2007 third quarter Engineered Products Segment sales more than doubled to $32.9 million reflecting both 5% core sales growth and the acquisition of Maxima in December 2006. Operating profit increased to $4.3 million from $2.1 million while margins declined 120 basis points.
Financial Position
Quarter-end net debt (total debt of $555 million less $74 million of cash) was $481 million, a decrease of $88 million from the beginning of the quarter. Actuant's free cash flow in the quarter was approximately $92 million driven by strong earnings conversion, improved working capital management and the timing of certain cash payments. Approximately $23 million of cash was used in business acquisitions which nearly offset the $20 million increase in accounts receivable securitization proceeds in the quarter.
Outlook
The Company updated its fiscal year 2007 guidance to reflect both the TTF acquisition and third quarter results. Full year fiscal 2007 EPS is expected to be in the range of $3.38-3.43 (excluding European Electrical restructuring charges) on sales of $1.430-1.440 billion. Fourth quarter EPS (excluding restructuring charges) is projected to be in the $0.90-0.95 range.
Actuant also provided its preliminary outlook for fiscal 2008, which reflects the continued execution of its dual strategy of organic growth and tuck-in business acquisitions. The company is targeting approximately 10-15% EPS growth (excluding future acquisitions), above the mid-point of its fiscal 2007 EPS guidance. Diluted EPS is projected to be in the $3.70-3.90 range, excluding European Electrical restructuring charges. The Company currently anticipates that next year's sales will be in the $1.530-1.550 billion range, an increase of 6-8% over fiscal 2007.
Arzbaecher commented, "We are very pleased with the way fiscal 2007 has developed and expect 2008 to follow a similar pattern. Our 2007 EPS guidance from last June anticipated 9-14% growth because, similar to our preliminary 2008 guidance, it didn't include the benefit of future acquisitions. As a result of acquisitions and base business performance, fiscal 2007 EPS is currently forecasted to grow 17-18% above the prior year. We are excited about the prospects for the upcoming year. There are growth opportunities in all our segments and the pipeline for additional acquisitions remains very active. Our focus on LEAD, including Asian sourcing, will continue to drive margin enhancement opportunities. We expect continued strong performance in 2008."
Conference Call Information
An investor conference call is scheduled for 10am CDT today, June 19, 2007. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.
Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors.
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 over $1.3 billion and its market capitalization from $113 million to over $1.3 billion. The Company employs a workforce of more than 6,700 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,
2007 2006
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $73,703 $25,659
Accounts receivable, net 188,623 171,262
Inventories, net 194,506 165,760
Deferred income taxes 22,398 18,796
Other current assets 12,572 9,448
----------- -----------
Total current assets 491,802 390,925
Property, plant and equipment, net 116,710 94,544
Goodwill 583,775 505,428
Other intangible assets, net 250,435 210,899
Other long-term assets 10,524 11,579
----------- -----------
Total assets $1,453,246 $1,213,375
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $- $-
Trade accounts payable 154,765 122,164
Accrued compensation and benefits 47,288 43,983
Income taxes payable 28,471 21,852
Current maturities of long-term debt 216 18,896
Other current liabilities 67,586 57,499
----------- -----------
Total current liabilities 298,326 264,394
Long-term debt, less current maturities 554,970 461,356
Deferred income taxes 86,914 70,184
Pension and postretirement benefit accruals 36,726 36,606
Other long-term liabilities 22,755 17,870
Shareholders' equity
Capital stock 5,484 5,460
Additional paid-in capital (350,987) (360,353)
Accumulated other comprehensive income (loss) 3,030 (4,581)
Stock held in trust (1,689) (1,355)
Deferred compensation liability 1,689 1,355
Retained earnings 796,028 722,439
----------- -----------
Total shareholders' equity 453,555 362,965
----------- -----------
Total liabilities and shareholders' equity $1,453,246 $1,213,375
=========== ===========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
---------------------- ----------------------
2007 2006 2007 2006
---------------------- ----------------------
Net sales $385,090 $316,662 $1,069,093 $876,557
Cost of products sold 255,505 210,767 716,218 580,123
---------------------- ----------------------
Gross profit 129,585 105,895 352,875 296,434
Selling, administrative
and engineering expenses 73,772 61,171 207,836 175,086
Restructuring charge 434 - 4,319 -
Amortization of
intangible assets 2,906 1,884 7,819 5,443
---------------------- ----------------------
Operating profit 52,473 42,840 132,901 115,905
Financing costs, net 9,076 6,785 24,185 18,936
Other expense, net 660 659 1,632 1,682
---------------------- ----------------------
Earnings from
operations before
income tax expense and
minority interest 42,737 35,396 107,084 95,287
Income tax expense 13,146 8,636 33,480 28,015
Minority interest, net of
income taxes 11 (27) 3 (81)
---------------------- ----------------------
Net earnings $29,580 $26,787 $73,601 $67,353
====================== ======================
Earnings per share
Basic $1.08 $0.99 $2.69 $2.49
Diluted 0.95 0.86 2.38 2.19
Weighted average common
shares outstanding
Basic 27,342 27,150 27,323 27,091
Diluted 31,811 31,717 31,753 31,591
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
--------------------- ---------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Operating Activities
Net earnings $29,580 $26,787 $73,601 $67,353
Adjustments to reconcile
net earnings to net cash
provided by operating
activities:
Depreciation and
amortization 9,165 6,681 25,886 19,923
Other non-cash items 1,387 194 1,748 3,660
Changes in operating
assets and liabilities,
excluding the effects
of the business
acquisitions:
Accounts receivable 1,578 (5,724) (8,552) (22,375)
Increase in AR
securitization
program 20,236 3,808 14,121 4,250
Inventories (1,151) (2,885) (8,971) (8,198)
Prepaid expenses and
other assets (610) (497) (1,921) (1,727)
Trade accounts payable 34,404 15,509 19,196 18,022
Income taxes payable 8,211 4,181 4,441 5,831
Other accrued
liabilities 15,260 6,822 9,869 3,138
---------- ---------- ---------- ----------
Net cash provided by
operating activities 118,060 54,876 129,418 89,877
Investing Activities
Proceeds from sale of
property, plant and
equipment 1,330 474 4,119 589
Capital expenditures (7,757) (5,566) (20,494) (15,465)
Cash paid for business
acquisitions, net of cash
acquired (22,535) (95,539) (132,594) (104,876)
---------- ---------- ---------- ----------
Net cash used in investing
activities (28,962) (100,631) (148,969) (119,752)
Financing Activities
Net borrowings
(repayments) on revolving
credit facilities and
short-term borrowings (36,364) 51,566 (80,355) 36,481
Proceeds from term loans - - 155,737 -
Principal repayments on
term loans (4,608) - (7,077) -
Cash dividend - - (2,187) (2,165)
Stock option exercises and
other 328 2,003 335 4,140
---------- ---------- ---------- ----------
Net cash provided by (used
in) financing activities (40,644) 53,569 66,453 38,456
Effect of exchange rate
changes on cash 398 419 1,142 275
---------- ---------- ---------- ----------
Net increase in cash and
cash equivalents 48,852 8,233 48,044 8,856
Cash and cash equivalents
- beginning of period 24,851 10,979 25,659 10,356
---------- ---------- ---------- ----------
Cash and cash equivalents
- end of period $73,703 $19,212 $73,703 $19,212
========== ========== ========== ==========
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2006
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
SALES
INDUSTRIAL SEGMENT $75,846 $68,907 $83,131 $96,804 $324,688
ELECTRICAL SEGMENT 105,460 105,670 109,449 111,907 432,486
ACTUATION SYSTEMS
SEGMENT 88,678 87,779 109,099 100,687 386,243
ENGINEERED PRODUCTS
SEGMENT 13,892 13,663 14,983 15,203 57,741
-----------------------------------------------
TOTAL $283,876 $276,019 $316,662 $324,601 $1,201,158
===============================================
% SALES GROWTH
INDUSTRIAL SEGMENT 81% 51% 44% 33% 49%
ELECTRICAL SEGMENT 50% 14% 9% 11% 19%
ACTUATION SYSTEMS
SEGMENT 9% 1% 9% 23% 10%
ENGINEERED PRODUCTS
SEGMENT 149% 41% 15% 16% 40%
TOTAL 42% 17% 17% 20% 23%
OPERATING PROFIT
INDUSTRIAL SEGMENT $20,201 $16,595 $21,307 $27,408 $85,511
ELECTRICAL SEGMENT 10,215 10,760 11,172 9,583 41,730
ACTUATION SYSTEMS
SEGMENT 10,034 9,297 12,203 8,846 40,380
ENGINEERED PRODUCTS
SEGMENT 1,728 1,834 2,139 2,020 7,721
CORPORATE / GENERAL (3,967) (3,632) (3,981) (4,787) (16,367)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $38,211 $34,854 $42,840 $43,070 $158,975
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
-----------------------------------------------
TOTAL $38,211 $34,854 $42,840 $38,160 $154,065
===============================================
OPERATING PROFIT %
INDUSTRIAL SEGMENT 26.6% 24.1% 25.6% 28.3% 26.3%
ELECTRICAL SEGMENT 9.7% 10.2% 10.2% 8.6% 9.6%
ACTUATION SYSTEMS
SEGMENT 11.3% 10.6% 11.2% 8.8% 10.5%
ENGINEERED PRODUCTS
SEGMENT 12.4% 13.4% 14.3% 13.3% 13.4%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.5% 12.6% 13.5% 13.3% 13.2%
EBITDA
INDUSTRIAL SEGMENT $21,626 $18,050 $22,752 $29,644 $92,072
ELECTRICAL SEGMENT 11,904 12,818 12,643 11,496 48,861
ACTUATION SYSTEMS
SEGMENT 12,063 11,823 14,913 11,555 50,354
ENGINEERED PRODUCTS
SEGMENT 2,042 2,145 2,435 2,324 8,946
CORPORATE / GENERAL (3,601) (3,586) (3,881) (4,487) (15,555)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
-----------------------------------------------
TOTAL $44,034 $41,250 $48,862 $45,622 $179,768
===============================================
EBITDA %
INDUSTRIAL SEGMENT 28.5% 26.2% 27.4% 30.6% 28.4%
ELECTRICAL SEGMENT 11.3% 12.1% 11.6% 10.3% 11.3%
ACTUATION SYSTEMS
SEGMENT 13.6% 13.5% 13.7% 11.5% 13.0%
ENGINEERED PRODUCTS
SEGMENT 14.7% 15.7% 16.3% 15.3% 15.5%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.5% 14.9% 15.4% 15.6% 15.4%
FISCAL 2007
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
SALES
INDUSTRIAL SEGMENT $100,867 $93,487 $112,760 $307,114
ELECTRICAL SEGMENT 122,017 123,599 127,653 373,269
ACTUATION SYSTEMS
SEGMENT 105,654 97,656 111,768 315,078
ENGINEERED PRODUCTS
SEGMENT 14,445 26,278 32,909 73,632
-----------------------------------------------
TOTAL $342,983 $341,020 $385,090 $1,069,093
===============================================
% SALES GROWTH
INDUSTRIAL SEGMENT 33% 36% 36% 35%
ELECTRICAL SEGMENT 16% 17% 17% 16%
ACTUATION SYSTEMS
SEGMENT 19% 11% 2% 10%
ENGINEERED PRODUCTS
SEGMENT 4% 92% 120% 73%
TOTAL 21% 24% 22% 22%
OPERATING PROFIT
INDUSTRIAL SEGMENT $28,680 $23,988 $33,004 $85,672
ELECTRICAL SEGMENT 9,357 9,535 10,341 29,233
ACTUATION SYSTEMS
SEGMENT 8,614 7,954 10,994 27,562
ENGINEERED PRODUCTS
SEGMENT 1,931 3,303 4,324 9,558
CORPORATE / GENERAL (4,944) (4,105) (5,756) (14,805)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $43,638 $40,675 $52,907 $137,220
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (4,319)
-----------------------------------------------
TOTAL $43,529 $36,899 $52,473 $132,901
===============================================
OPERATING PROFIT %
INDUSTRIAL SEGMENT 28.4% 25.7% 29.3% 27.9%
ELECTRICAL SEGMENT 7.7% 7.7% 8.1% 7.8%
ACTUATION SYSTEMS
SEGMENT 8.2% 8.1% 9.8% 8.7%
ENGINEERED PRODUCTS
SEGMENT 13.4% 12.6% 13.1% 13.0%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 13.7% 12.8%
EBITDA
INDUSTRIAL SEGMENT $31,022 $26,205 $35,428 $92,655
ELECTRICAL SEGMENT 11,543 11,404 12,355 35,302
ACTUATION SYSTEMS
SEGMENT 11,339 10,928 14,179 36,446
ENGINEERED PRODUCTS
SEGMENT 2,238 4,256 5,273 11,767
CORPORATE / GENERAL (4,844) (4,028) (5,823) (14,695)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $161,475
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (4,319)
-----------------------------------------------
TOTAL $51,189 $44,989 $60,978 $157,156
===============================================
EBITDA %
INDUSTRIAL SEGMENT 30.8% 28.0% 31.4% 30.2%
ELECTRICAL SEGMENT 9.5% 9.2% 9.7% 9.5%
ACTUATION SYSTEMS
SEGMENT 10.7% 11.2% 12.7% 11.6%
ENGINEERED PRODUCTS
SEGMENT 15.5% 16.2% 16.0% 16.0%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 15.9% 15.1%
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2006
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING CHARGE
AND TAX ADJUSTMENTS
(1)
NET EARNINGS (GAAP
MEASURE) $21,268 $19,298 $26,787 $25,235 $92,588
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - - - 4,499 4,499
TAX ADJUSTMENTS - - (2,597) (5,374) (7,971)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $21,268 $19,298 $24,190 $24,360 $89,116
===============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS (GAAP
MEASURE) $0.70 $0.63 $0.86 $0.82 $3.01
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - - - 0.14 0.14
TAX ADJUSTMENTS - - (0.08) (0.17) (0.25)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.70 $0.63 $0.78 $0.79 $2.90
===============================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $21,268 19,298 26,787 25,235 $92,588
FINANCING COSTS,
NET 6,067 6,084 6,786 7,209 26,146
INCOME TAX
EXPENSE 10,220 9,159 8,636 5,371 33,386
DEPRECIATION &
AMORTIZATION 6,521 6,721 6,680 7,851 27,773
MINORITY
INTEREST, NET OF
INCOME TAX (42) (12) (27) (44) (125)
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) $44,034 $41,250 $48,862 $45,622 $179,768
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE - - - 4,910 4,910
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) -
EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
===============================================
FISCAL 2007
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING CHARGE
AND TAX ADJUSTMENTS
(1)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $73,601
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT 109 2,926 434 3,469
TAX ADJUSTMENTS - - - -
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $25,211 $21,845 $30,014 $77,070
===============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS (GAAP
MEASURE) $0.81 $0.62 $0.95 $2.38
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - 0.09 0.01 0.10
TAX ADJUSTMENTS - - - -
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.81 $0.71 $0.96 $2.48
===============================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $73,601
FINANCING COSTS,
NET 6,841 8,268 9,076 24,185
INCOME TAX
EXPENSE 11,379 8,956 13,146 33,481
DEPRECIATION &
AMORTIZATION 7,877 8,844 9,165 25,886
MINORITY
INTEREST, NET OF
INCOME TAX (10) 2 11 3
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) $51,189 $44,989 $60,978 $157,156
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE 109 3,776 434 4,319
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) -
EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $161,475
===============================================
(1) Net earnings and diluted earnings per share excluding
restructuring charges and income tax adjustments 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.
(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.
Source: Actuant Corporation
Released June 19, 2007