Actuant Reports Third Quarter Results; Provides Fiscal 2014 Outlook
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2013.
Highlights
- Delivered third quarter diluted earnings per share (“EPS”) from continuing operations of $0.62, 22% higher than the prior year (excluding prior year debt refinancing costs - see attached reconciliation of earnings.)
- Sales from continuing operations of $344 million, approximately level with the prior year. Excluding the 3% contribution from acquisitions and -1% foreign currency impact, core sales declined 2% with two of the three segments posting core sales growth.
- Robust cash flow from operations of $76 million.
- Announced intent to divest the Electrical segment to refocus on the remaining businesses where Actuant is well positioned to build on identified secular growth trends and emerging market opportunities.
- Introduced full year fiscal 2014 outlook with sales and EPS from continuing operations expected to be $1.315-$1.340 billion and $1.95- $2.05, respectively.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “As expected, the third quarter represented an inflection point for Actuant as we delivered a 22% increase in EPS from continuing operations and improved sequential sales and profit margins. Solid core growth was achieved in both the Industrial and Energy segments, and the sequentially improved Engineered Solutions sales signal OEM destocking efforts are abating. Due to weak economic conditions, we continue to experience subdued activity in our global industrial markets and inconsistent demand. However, we did a good job balancing cost reduction actions and growth investments, as evidenced by our 19.6% EBITDA margins. Our third quarter EPS also benefitted from both lower interest expense and an effective income tax rate. We have asked a lot of our employees this year and I want to thank our world-class global team for their efforts in delivering the results.”
Consolidated Results
On June 3, 2013, the Company announced its intent to divest the Electrical segment. The results of operations for this segment, as well as the previously announced non-cash write-down, are reported in discontinued operations in the accompanying Condensed Consolidated Statement of Operations. Operating results for the third quarter and all prior periods have been reclassified for comparability.
Continuing Operations
Consolidated sales for the third quarter of fiscal 2013 were $344 million compared to $343 million in the comparable prior year quarter. Core sales declined 2% with acquisitions contributing 3% and currency translation reducing sales by 1%. Fiscal 2013 third quarter net earnings and EPS from continuing operations were $46.1 million and $0.62, respectively, compared to $27.7 million and $0.36 in the comparable prior year quarter. Results for the third quarter of fiscal 2012 included pre-tax debt refinancing costs of $16.8 million, or $0.15 per diluted share after tax. Excluding these costs, EPS grew 22% year-over-year to $0.62 compared to $0.51 in the prior year quarter. (See attached reconciliation of earnings.)
Sales for the nine months ended May 31, 2013 of $952 million were essentially unchanged from the $954 million in the comparable prior year period. Excluding the 5% impact of acquisitions, and 1% negative impact from foreign currency translation, year-to-date core sales declined 4%. Earnings and EPS from continuing operations for the nine month period were $102.5 million, or $1.38 per diluted share, compared to $89.4 million, or $1.19 per diluted share for the comparable prior year period. Excluding the debt refinancing costs, fiscal 2013 year-to-date EPS from continuing operations of $1.38 was 3% higher than the $1.34 in the prior year. (See attached reconciliation of earnings.)
Discontinued Operations
Discontinued operations represent the operating results for the Electrical segment for all periods presented. The third quarter of fiscal 2013 also includes a $150 million ($2.00 per diluted share) non-cash, after-tax charge from the write-down of the net assets held for sale to their net realizable value.
Segment Results
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Industrial Segment |
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(US $ in millions) |
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| Three Months Ended May 31, | Nine Months Ended May 31, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Sales | $111.3 | $110.1 | $311.4 | $308.7 | ||||||||
| Operating Profit | $32.4 | $30.7 | $85.8 | $85.3 | ||||||||
| Operating Profit % | 29.1% | 27.9% | 27.5% | 27.6% | ||||||||
Third quarter fiscal 2013 Industrial segment sales were $111 million, 1% higher than the prior year. Excluding the 1% negative impact of foreign currency translation, core sales increased 2% due to success in executing strategic initiatives including higher global Integrated Solutions, bolting and mining MRO tool sales. Europe and the Asia Pacific region, including China, continue to experience year-over-year core sales declines, albeit at a more modest sequential pace. Third quarter operating profit margin increased 120 basis points to 29.1% on the higher volume, lower incentive compensation and cost containment actions.
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Energy Segment |
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(US $ in millions) |
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| Three Months Ended May 31, | Nine Months Ended May 31, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Sales | $99.2 | $96.4 | $270.7 | $255.8 | ||||||||
| Operating Profit | $19.7 | $18.5 | $44.8 | $43.4 | ||||||||
| Operating Profit % | 19.9% | 19.2% | 16.5% | 17.0% | ||||||||
Fiscal 2013 third quarter year-over-year Energy segment sales increased 3% to $99 million. Excluding the negative 2% impact from foreign currency translation, core sales were 5% higher than the prior year’s robust levels. Deep water related umbilical, cable and rope revenues grew double digits with strong market demand and catch up of deferred shipments from earlier in the year. Cortland’s non-energy markets, such as defense, continued to experience weak activity levels. Hydratight’s core sales also grew during the quarter reflecting solid MRO spending in global oil & gas, partially offset by difficult comparisons given last year’s strong North American nuclear maintenance activity. Third quarter operating profit increased 70 basis points year-over-year, primarily the result of the higher volumes.
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Engineered Solutions Segment |
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(US $ in millions) |
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| Three Months Ended May 31, | Nine Months Ended May 31, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Sales | $133.7 | $136.8 | $370.3 | $389.7 | ||||||||
| Operating Profit | $12.8 | $18.5 | $28.7 | $50.7 | ||||||||
| Operating Profit % | 9.5% | 13.5% | 7.7% | 13.0% | ||||||||
Third quarter fiscal 2013 Engineered Solutions segment sales decreased 2% from the prior year to $134 million. Excluding the 8% net benefit from acquisitions/divestitures, year-over-year core sales declined 10%. Third quarter sales continued to be impacted by difficult comparisons in the North American heavy-duty truck, agriculture and global off-highway equipment markets. While convertible auto demand in Europe remained weak, European heavy-duty truck sales inflected in the quarter and were higher year-over-year. Third quarter operating profit margin declined due primarily to the impact of lower volumes, unfavorable sales mix and restructuring costs.
Corporate and Income Taxes
Corporate expenses for the third quarter of fiscal 2013 were $7.9 million, $0.9 million below the comparable prior year period due primarily to lower incentive compensation expense. As expected, the effective income tax rate for the quarter was significantly lower than the prior year reflecting the reversal of provisions in prior years for uncertain tax positions upon the lapsing of applicable foreign statutes.
Financial Position
Net debt at May 31, 2013 was $231 million (total debt of $392 million less $161 million of cash); approximately $73 million below the prior quarter end. With the exception of $5 million used for share repurchases (0.16 million shares at an average price of just under $30), essentially all of Actuant’s third quarter operating cash flow reduced net debt. At May 31, 2013, the Company’s net debt to EBITDA leverage ratio was 0.8, and its entire $600 million revolver was available.
Outlook
Commenting on Actuant’s outlook for the remainder of fiscal 2013, Arzbaecher stated, “We expect the inflection in earnings we saw in the third quarter to continue into the fourth quarter, albeit at a more modest rate given a higher prospective effective tax rate. Taking into account current business trends from continuing operations, we expect to complete fiscal 2013 with full year sales of $1.275-1.285 billion and EPS in the $1.85-1.90 range. With another expected strong cash flow quarter, we should finish fiscal 2013 with $190-200 million of free cash flow, representing approximately 115-120% conversion of net earnings (excluding the non-cash discontinued operations write-down.) This would represent our 13th consecutive year of conversion in excess of 100%.
As we look ahead to fiscal 2014, we face a market environment in which low global GDP and uncertainty are likely to persist. Actuant will continue to focus on taking advantage of our broad product and geographic scope to capitalize on profitable growth opportunities. Based on our current view of economic indicators as well as Actuant’s business trends and specific growth drivers, we anticipate fiscal 2014 core sales growth of 3-5%. Assuming current foreign currency exchange rates, we expect total sales of $1.315-1.340 billion. The benefit of volume and operational excellence initiatives, partially offset by investments in our best growth opportunities and a higher effective tax rate, should increase EPS to $1.95- 2.05 in fiscal 2014. This represents an increase of approximately 5-10% from fiscal 2013 levels, not including the benefit of potential future acquisitions or share repurchases, which continue to be a priority for the Company. We expect full year free cash flow to be approximately $175 million.”
Arzbaecher concluded, “We remain focused on long-term secular growth drivers which provide exciting organic and acquisition driven growth prospects. Given our healthy acquisition pipeline, the strongest balance sheet in our history and continued robust free cash flow generation, we are well positioned financially to capitalize on these strategic growth opportunities.”
Conference Call Information
An investor conference call is scheduled for 10am CT today, June 19, 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) | ||||||||||
| May 31, | August 31, | |||||||||
| 2013 | 2012 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 161,418 | $ | 68,184 | ||||||
| Accounts receivable, net | 214,683 | 234,756 | ||||||||
| Inventories, net | 145,226 | 211,690 | ||||||||
| Deferred income taxes | 22,503 | 22,583 | ||||||||
| Other current assets | 26,396 | 24,068 | ||||||||
| Assets of discontinued operations | 264,058 | - | ||||||||
| Total current assets | 834,284 | 561,281 | ||||||||
| Property, plant and equipment, net | 104,603 | 115,884 | ||||||||
| Goodwill | 647,150 | 866,412 | ||||||||
| Other intangible assets, net | 316,986 | 445,884 | ||||||||
| Other long-term assets | 16,451 | 17,658 | ||||||||
| Total assets | $ | 1,919,474 | $ | 2,007,119 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Trade accounts payable | $ | 147,898 | $ | 174,746 | ||||||
| Accrued compensation and benefits | 42,055 | 58,817 | ||||||||
| Current maturities of debt | 10,000 | 7,500 | ||||||||
| Income taxes payable | 9,350 | 5,778 | ||||||||
| Other current liabilities | 51,957 | 72,165 | ||||||||
| Liabilities of discontinued operations | 52,283 | - | ||||||||
| Total current liabilities | 313,543 | 319,006 | ||||||||
| Long-term debt | 382,500 | 390,000 | ||||||||
| Deferred income taxes | 97,745 | 132,653 | ||||||||
| Pension and postretirement benefit accruals | 25,567 | 26,442 | ||||||||
| Other long-term liabilities | 68,281 | 87,182 | ||||||||
| Shareholders' equity | ||||||||||
| Capital stock | 15,287 | 15,102 | ||||||||
| Additional paid-in capital | 34,176 | 7,725 | ||||||||
| Treasury stock | (76,753 | ) | (63,083 | ) | ||||||
| Retained earnings | 1,133,364 | 1,161,564 | ||||||||
| Accumulated other comprehensive loss | (74,236 | ) | (69,472 | ) | ||||||
| Stock held in trust | (3,094 | ) | (2,689 | ) | ||||||
| Deferred compensation liability | 3,094 | 2,689 | ||||||||
| Total shareholders' equity | 1,031,838 | 1,051,836 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,919,474 | $ | 2,007,119 | ||||||
| Actuant Corporation | ||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||
| (Dollars in thousands except per share amounts) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Net sales | $ | 344,205 | $ | 343,268 | $ | 952,482 | $ | 954,153 | ||||||||||
| Cost of products sold | 207,301 | 204,514 | 575,032 | 572,301 | ||||||||||||||
| Gross profit | 136,904 | 138,754 | 377,450 | 381,852 | ||||||||||||||
| Selling, administrative and engineering expenses | 74,323 | 74,341 | 222,521 | 210,806 | ||||||||||||||
| Amortization of intangible assets | 5,539 | 5,563 | 17,542 | 16,237 | ||||||||||||||
| Operating profit | 57,042 | 58,850 | 137,387 | 154,809 | ||||||||||||||
| Financing costs, net | 6,229 | 7,236 | 18,811 | 23,280 | ||||||||||||||
| Debt refinancing costs | - | 16,830 | - | 16,830 | ||||||||||||||
| Other expense, net | 911 | 2,591 | 1,518 | 3,297 | ||||||||||||||
| Earnings from continuing operations before income tax expense | 49,902 | 32,193 | 117,058 | 111,402 | ||||||||||||||
| Income tax expense | 3,825 | 4,456 | 14,596 | 22,042 | ||||||||||||||
| Earnings from continuing operations | 46,077 | 27,737 | 102,462 | 89,360 | ||||||||||||||
| Earnings (loss) from discontinued operations, net of income taxes | (139,060 | ) | 6,664 | (130,667 | ) | 14,390 | ||||||||||||
| Net earnings (loss) | $ | (92,983 | ) | $ | 34,401 | $ | (28,205 | ) | $ | 103,750 | ||||||||
| Earnings from continuing operations per share | ||||||||||||||||||
| Basic | $ | 0.63 | $ | 0.39 | $ | 1.40 | $ | 1.29 | ||||||||||
| Diluted | 0.62 | 0.36 | 1.38 | 1.19 | ||||||||||||||
| Earnings (loss) per share | ||||||||||||||||||
| Basic | $ | (1.27 | ) | $ | 0.48 | $ | (0.39 | ) | $ | 1.50 | ||||||||
| Diluted | (1.24 | ) | 0.45 | (0.38 | ) | 1.39 | ||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||||
| Basic | 73,133 | 71,083 | 72,957 | 69,184 | ||||||||||||||
| Diluted | 74,787 | 75,371 | 74,491 | 75,201 | ||||||||||||||
| Actuant Corporation | ||||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| May 31, | May 31, | May 31, | May 31, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
| Operating Activities | ||||||||||||||||||||
| Net earnings (loss) | $ | (92,983 | ) | $ | 34,401 | $ | (28,205 | ) | $ | 103,750 | ||||||||||
| Adjustments to reconcile net earnings (loss) to net cash provided by | ||||||||||||||||||||
| operating activities: | ||||||||||||||||||||
| Depreciation and amortization | 13,892 | 13,582 | 42,790 | 40,192 | ||||||||||||||||
| Stock-based compensation expense | 3,379 | 3,040 | 10,507 | 10,002 | ||||||||||||||||
| Provision (benefit) for deferred income taxes | (24,531 | ) | 117 | (30,549 | ) | (2,137 | ) | |||||||||||||
| Impairment charge | 170,052 | - | 170,052 | - | ||||||||||||||||
| Amortization of debt discount and debt issuance costs | 496 | 495 | 1,488 | 1,492 | ||||||||||||||||
| Non-cash debt refinance charge | - | 2,254 | - | 2,254 | ||||||||||||||||
| Other non-cash adjustments | 343 | 208 | 171 | (138 | ) | |||||||||||||||
| Changes in components of working capital and other: | ||||||||||||||||||||
| Accounts receivable | (21,312 | ) | (4,585 | ) | (25,033 | ) | (21,692 | ) | ||||||||||||
| Inventories | 11,478 | 10,231 | 7,326 | 9,171 | ||||||||||||||||
| Prepaid expenses and other assets | (3,409 | ) | 3,208 | (4,613 | ) | 1,071 | ||||||||||||||
| Trade accounts payable | 14,752 | 10,907 | (7,529 | ) | 2,779 | |||||||||||||||
| Income taxes payable | (2,816 | ) | (2,092 | ) | (5,538 | ) | (2,056 | ) | ||||||||||||
| Accrued compensation and benefits | (402 | ) | 5,332 | (12,829 | ) | (8,766 | ) | |||||||||||||
| Other accrued liabilities | 7,008 | 215 | (1,768 | ) | (6,608 | ) | ||||||||||||||
| Net cash provided by operating activities | 75,947 | 77,313 | 116,270 | 129,314 | ||||||||||||||||
| Investing Activities | ||||||||||||||||||||
| Proceeds from sale of property, plant and equipment | 140 | 711 | 1,317 | 8,486 | ||||||||||||||||
| Proceeds from sale of businesses, net of transaction costs | 4,854 | - | 4,854 | - | ||||||||||||||||
| Capital expenditures | (7,169 | ) | (7,039 | ) | (18,895 | ) | (17,491 | ) | ||||||||||||
| Business acquisitions, net of cash acquired | (2,202 | ) | (10,827 | ) | (3,635 | ) | (29,734 | ) | ||||||||||||
| Net cash used in investing activities | (4,377 | ) | (17,155 | ) | (16,359 | ) | (38,739 | ) | ||||||||||||
| Financing Activities | ||||||||||||||||||||
| Net repayments on revolving credit facilities and other debt | - | (58,000 | ) | - | (58,167 | ) | ||||||||||||||
| Principal repayments on term loan | (2,500 | ) | (1,250 | ) | (5,000 | ) | (1,250 | ) | ||||||||||||
| Repurchases of 2% Convertible Notes | - | (102 | ) | - | (102 | ) | ||||||||||||||
| Proceeds on 5.625% Senior Note issuance | - | 300,000 | - | 300,000 | ||||||||||||||||
| Redemption of 6.875% Senior Notes | - | (250,000 | ) | - | (250,000 | ) | ||||||||||||||
| Debt issuance costs | - | (5,340 | ) | - | (5,340 | ) | ||||||||||||||
| Purchase of treasury shares | (4,849 | ) | (18,872 | ) | (13,670 | ) | (39,282 | ) | ||||||||||||
| Stock option exercises and related tax benefits | 7,933 | 885 | 18,705 | 6,392 | ||||||||||||||||
| Cash dividend | - | - | (2,911 | ) | (2,748 | ) | ||||||||||||||
| Net cash provided by (used in) financing activities | 584 | (32,679 | ) | (2,876 | ) | (50,497 | ) | |||||||||||||
| Effect of exchange rate changes on cash | (1,559 | ) | (5,775 | ) | (3,801 | ) | (4,150 | ) | ||||||||||||
| Net increase in cash and cash equivalents | 70,595 | 21,704 | 93,234 | 35,928 | ||||||||||||||||
| Cash and cash equivalents - beginning of period | 90,823 | 58,445 | 68,184 | 44,221 | ||||||||||||||||
| Cash and cash equivalents - end of period | $ | 161,418 | $ | 80,149 | $ | 161,418 | $ | 80,149 | ||||||||||||
| 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 | $ | 311,429 | ||||||||||||||||||||||||
| ENERGY SEGMENT | 80,421 | 78,937 | 96,399 | 93,406 | 349,163 | 90,769 | 80,794 | 99,158 | 270,721 | |||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 129,292 | 123,640 | 136,767 | 118,364 | 508,063 | 115,918 | 120,675 | 133,739 | 370,332 | |||||||||||||||||||||||||||||||||
| TOTAL | $ | 309,966 | $ | 300,919 | $ | 343,268 | $ | 322,368 | $ | 1,276,521 | $ | 307,809 | $ | 300,468 | $ | 344,205 | $ | 952,482 | ||||||||||||||||||||||||
| % SALES GROWTH | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 15 | % | 11 | % | 2 | % | 2 | % | 7 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||||||||||||||
| ENERGY SEGMENT | 14 | % | 28 | % | 24 | % | 13 | % | 19 | % | 13 | % | 2 | % | 3 | % | 6 | % | ||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 23 | % | 12 | % | 8 | % | -10 | % | 7 | % | -10 | % | -2 | % | -2 | % | -5 | % | ||||||||||||||||||||||||
| TOTAL | 18 | % | 16 | % | 10 | % | 0 | % | 10 | % | -1 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||||||||||||
| OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 27,933 | $ | 26,690 | $ | 30,681 | $ | 29,473 | $ | 114,777 | $ | 27,006 | $ | 26,350 | $ | 32,426 | $ | 85,782 | ||||||||||||||||||||||||
| ENERGY SEGMENT | 13,217 | 11,632 | 18,515 | 18,841 | 62,205 | 15,387 | 9,677 | 19,736 | 44,800 | |||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 18,999 | 13,281 | 18,467 | 10,104 | 60,851 | 7,625 | 8,275 | 12,754 | 28,654 | |||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (7,845 | ) | (7,948 | ) | (8,813 | ) | (8,713 | ) | (33,319 | ) | (6,544 | ) | (7,431 | ) | (7,874 | ) | (21,849 | ) | ||||||||||||||||||||||||
| TOTAL | $ | 52,304 | $ | 43,655 | $ | 58,850 | $ | 49,705 | $ | 204,514 | $ | 43,474 | $ | 36,871 | $ | 57,042 | $ | 137,387 | ||||||||||||||||||||||||
| OPERATING PROFIT % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 27.9 | % | 27.1 | % | 27.9 | % | 26.6 | % | 27.4 | % | 26.7 | % | 26.6 | % | 29.1 | % | 27.5 | % | ||||||||||||||||||||||||
| ENERGY SEGMENT | 16.4 | % | 14.7 | % | 19.2 | % | 20.2 | % | 17.8 | % | 17.0 | % | 12.0 | % | 19.9 | % | 16.5 | % | ||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 14.7 | % | 10.7 | % | 13.5 | % | 8.5 | % | 12.0 | % | 6.6 | % | 6.9 | % | 9.5 | % | 7.7 | % | ||||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) | 16.9 | % | 14.5 | % | 17.1 | % | 15.4 | % | 16.0 | % | 14.1 | % | 12.3 | % | 16.6 | % | 14.4 | % | ||||||||||||||||||||||||
| EBITDA | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ | 29,220 | $ | 29,116 | $ | 32,070 | $ | 31,774 | $ | 122,180 | $ | 29,033 | $ | 28,471 | $ | 34,374 | $ | 91,878 | ||||||||||||||||||||||||
| ENERGY SEGMENT | 18,243 | 15,601 | 22,216 | 23,166 | 79,226 | 19,694 | 14,278 | 23,977 | 57,949 | |||||||||||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 22,213 | 16,762 | 21,418 | 13,991 | 74,384 | 12,047 | 12,611 | 16,700 | 41,358 | |||||||||||||||||||||||||||||||||
| CORPORATE / GENERAL | (7,217 | ) | (7,479 | ) | (8,506 | ) | (7,972 | ) | (31,174 | ) | (6,195 | ) | (6,582 | ) | (7,556 | ) | (20,333 | ) | ||||||||||||||||||||||||
| TOTAL | $ | 62,459 | $ | 54,000 | $ | 67,198 | $ | 60,959 | $ | 244,616 | $ | 54,579 | $ | 48,778 | $ | 67,495 | $ | 170,852 | ||||||||||||||||||||||||
| EBITDA % | ||||||||||||||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 29.1 | % | 29.6 | % | 29.1 | % | 28.7 | % | 29.1 | % | 28.7 | % | 28.8 | % | 30.9 | % | 29.5 | % | ||||||||||||||||||||||||
| ENERGY SEGMENT | 22.7 | % | 19.8 | % | 23.0 | % | 24.8 | % | 22.7 | % | 21.7 | % | 17.7 | % | 24.2 | % | 21.4 | % | ||||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 17.2 | % | 13.6 | % | 15.7 | % | 11.8 | % | 14.6 | % | 10.4 | % | 10.5 | % | 12.5 | % | 11.2 | % | ||||||||||||||||||||||||
| TOTAL (INCLUDING CORPORATE) | 20.2 | % | 17.9 | % | 19.6 | % | 18.9 | % | 19.2 | % | 17.7 | % | 16.2 | % | 19.6 | % | 17.9 | % | ||||||||||||||||||||||||
| 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 | ) | $ | (28,205 | ) | ||||||||||||||||||||
| DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,204 | ) | (4,522 | ) | (6,664 | ) | 52,376 | 37,986 | (5,792 | ) | (2,601 | ) | 139,060 | 130,667 | |||||||||||||||||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 33,970 | 27,653 | 27,737 | 35,916 | 125,276 | 30,551 | 25,834 | 46,077 | 102,462 | ||||||||||||||||||||||||||||||||
| DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | 10,482 | - | 10,482 | - | - | - | - | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 33,970 | $ | 27,653 | $ | 38,219 | $ | 35,916 | $ | 135,758 | $ | 30,551 | $ | 25,834 | $ | 46,077 | $ | 102,462 | |||||||||||||||||||||||
| 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 | ) | $ | (0.38 | ) | ||||||||||||||||||||
| DISCONTINUED OPERATIONS, NET OF INCOME TAX | (0.04 | ) | (0.06 | ) | (0.09 | ) | 0.70 | 0.51 | (0.08 | ) | (0.03 | ) | 1.86 | 1.76 | |||||||||||||||||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 0.46 | 0.37 | 0.36 | 0.48 | 1.68 | 0.41 | 0.35 | 0.62 | 1.38 | ||||||||||||||||||||||||||||||||
| DEBT REFINANCING CHARGES, NET OF INCOME TAX | - | - | 0.15 | - | 0.15 | - | - | - | - | ||||||||||||||||||||||||||||||||
| TOTAL | $ | 0.46 | $ | 0.37 | $ | 0.51 | $ | 0.48 | $ | 1.83 | $ | 0.41 | $ | 0.35 | $ | 0.62 | $ | 1.38 | |||||||||||||||||||||||
| EBITDA (2) | |||||||||||||||||||||||||||||||||||||||||
| NET EARNINGS (LOSS) (GAAP MEASURE) | $ | 37,174 | $ | 32,175 | $ | 34,401 | $ | (16,460 | ) | $ | 87,290 | $ | 36,343 | $ | 28,435 | $ | (92,983 | ) | $ | (28,205 | ) | ||||||||||||||||||||
| DISCONTINUED OPERATIONS, NET OF INCOME TAX | (3,204 | ) | (4,522 | ) | (6,664 | ) | 52,376 | 37,986 | (5,792 | ) | (2,601 | ) | 139,060 | 130,667 | |||||||||||||||||||||||||||
| EARNINGS FROM CONTINUING OPERATIONS | 33,970 | 27,653 | 27,737 | 35,916 | 125,276 | 30,551 | 25,834 | 46,077 | 102,462 | ||||||||||||||||||||||||||||||||
| FINANCING COSTS, NET | 8,222 | 7,821 | 24,066 | 6,281 | 46,390 | 6,322 | 6,260 | 6,229 | 18,811 | ||||||||||||||||||||||||||||||||
| INCOME TAX EXPENSE | 9,447 | 8,139 | 4,456 | 7,312 | 29,354 | 5,957 | 4,814 | 3,825 | 14,596 | ||||||||||||||||||||||||||||||||
| DEPRECIATION & AMORTIZATION | 10,820 | 10,387 | 10,939 | 11,450 | 43,596 | 11,749 | 11,870 | 11,364 | 34,983 | ||||||||||||||||||||||||||||||||
| EBITDA - EXCLUDING DISCONTINUED OPERATIONS (NON-GAAP MEASURE) | $ | 62,459 | $ | 54,000 | $ | 67,198 | $ | 60,959 | $ | 244,616 | $ | 54,579 | $ | 48,778 | $ | 67,495 | $ | 170,852 | |||||||||||||||||||||||
|
FOOTNOTES |
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| 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 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 June 19, 2013