Actuant Reports Record Second Quarter Results, Raises Full Year Guidance
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE: ATU) today announced record sales and earnings for its second quarter ended February 29, 2008.
Highlights
-- Sales totaled $400 million, a 17% increase over the prior
year, with 4% core sales growth (total sales less the impact
of foreign currency rate changes and business acquisitions).
-- Completed the previously announced European Electrical
restructuring program.
-- 23% year-over-year improvement in diluted earnings per share
("EPS"), to $0.43 for the quarter, excluding European
Electrical restructuring charges.
-- EBITDA margin expansion of 60 basis points, excluding European
Electrical restructuring charges.
-- Cash generated from operations of approximately $32 million.
-- Completed acquisition of Superior Plant Services ("SPS") on
March 3, 2008, broadening the Joint Integrity product line
offering.
Robert Arzbaecher, CEO of Actuant, commented, "We are pleased to once again report record quarterly sales and earnings. In addition to the solid 4% core sales growth, our recent acquisitions and the weaker US dollar drove robust sales growth. The combination of this sales growth and our profit improvement initiatives drove a 60 basis point increase in EBITDA margins as well as 23% diluted EPS growth, excluding European Electrical restructuring charges. Our results reinforce the benefits of Actuant's end market, geographic and customer diversification and demonstrate the Company's success in leveraging cost synergies from existing and new businesses, while at the same time investing in promising growth opportunities."
Consolidated Results
Second quarter sales increased 17% to $400 million from $341 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 (8%), core sales growth was 4%. Three of the Company's four operating segments reported second quarter core sales growth, led by the Industrial segment which generated 16% core growth - its highest in the last two years.
Excluding European Electrical restructuring charges, operating margins in the second quarter were even with the prior year. Gross profit margins improved due to higher volume, favorable sales mix and the Company's continuous improvement initiatives including Lean Enterprise Across Disciplines (LEAD). These improvements were offset by higher amortization expense, as well as increased selling, administrative and engineering expenses in support of both growth and earnings improvement initiatives.
Second quarter fiscal 2008 net earnings and EPS were $22.2 million and $0.35, respectively, compared to prior year net earnings and EPS of $18.9 million and $0.31, respectively. Fiscal 2008 second quarter results include a $4.7 million ($0.07 per diluted share) net charge covering the final portion of the Company's previously announced European Electrical restructuring initiative, versus $2.9 million ($0.05 per diluted share) in the second quarter of fiscal 2007. Excluding these restructuring charges, second quarter EPS increased 23% year-over-year from $0.35 to $0.43. (See attached reconciliation of GAAP to non-GAAP measures).
Sales for the six months ended February 29, 2008 were $815 million, or 19% higher than the $684 million in the comparable prior year period. Excluding the impact of foreign currency rate changes (5%) and sales from acquired businesses (10%), core sales increased 4%.
Net earnings for the six months ended February 29, 2008 rose 13% to $49.7 million, or $0.79 per diluted share, compared to $44.0 million, or $0.71 per diluted share for the comparable prior year period. Year-to-date fiscal 2008 results include $0.16 per diluted share of European Electrical restructuring charges while fiscal 2007 included $0.05 per diluted share. Excluding restructuring charges, EPS rose 25% to $0.95 per diluted share, compared to $0.76 per diluted share for the comparable prior year period. (See attached reconciliation of GAAP to non-GAAP measures).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $130.8 $96.5 $267.9 $200.4
Operating Profit $32.8 $24.2 $70.7 $53.2
Operating Profit % 25.0% 25.1% 26.4% 26.5%
Second quarter fiscal 2008 Industrial segment sales increased 36%
to $131 million. Excluding currency translation and acquisitions,
Industrial segment core sales grew 16% driven by continued strong
global demand for joint integrity products and services for the oil &
gas and power generation markets, as well as high-force hydraulic
tools. Although second quarter operating profit margins benefited from
higher volumes, pricing and continuous improvement initiatives, they
declined 10 basis points from the prior year due to unfavorable sales
and acquisition mix, as well as higher acquisition-related
amortization expense.
Electrical Segment
(US $ in millions)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $130.8 $123.6 $264.7 $245.6
Operating Profit
(1) $11.2 $9.5 $21.7 $18.9
Operating Profit % 8.6% 7.7% 8.2% 7.7%
(1) Excludes European Electrical restructuring charges of $5.0 million and $3.8 million for the three months ended February 29, 2008 and February 28, 2007, respectively and $10.5 million and $3.9 million for the six months ended February 29, 2008 and February 28, 2007, respectively.
Fiscal 2008 second quarter Electrical segment sales increased 6% to $131 million due to foreign currency translation and the acquisition of BH Electronics (July 2007). Core sales declined 6% reflecting weaker demand from DIY, marine and transformer customers. Excluding European Electrical restructuring charges, operating profit margin improved to 8.6% in the quarter from 7.7% in the comparable prior year period.
Actuation Systems Segment
(US $ in millions)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $109.8 $97.7 $222.7 $203.3
Operating Profit $8.3 $8.0 $18.4 $16.6
Operating Profit % 7.6% 8.1% 8.2% 8.1%
Actuation Systems segment second quarter fiscal 2008 sales increased 12% to $110 million. Core sales grew 5% in the quarter due to higher demand from the Company's global truck and automotive customers, with the balance of the increase due to currency translation. Sales to the recreational vehicle ("RV") market declined due to lower OEM build levels caused by weaker consumer demand. Although operating profit margins declined 50 basis points compared to last year, excluding the costs to consolidate two RV facilities into one, second quarter segment margins increased year-over-year.
Engineered Products Segment
(US $ in millions)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $28.3 $23.3 $59.5 $34.6
Operating Profit $3.1 $3.1 $7.4 $4.7
Operating Profit % 11.1% 13.3% 12.4% 13.7%
Second quarter 2008 Engineered Products segment sales increased to $28 million from $23 million in the prior year reflecting 1% core sales growth and the acquisition of Maxima in December 2006. The second quarter operating profit margin of 11.1% was lower than the prior year due to facility relocation and downsizing costs at certain businesses in the segment.
Financial Position
Net debt at February 29, 2008 was $487 million (total debt of $582 million less $95 million of cash), a decrease of $18 million from the beginning of the quarter. There were no borrowings outstanding under the Company's $250 million revolving credit facility at February 29, 2008.
Outlook
The Company provided increased full year sales and earnings guidance as well as initial guidance for the third quarter of fiscal 2008. Arzbaecher stated, "Our third quarter is expected to exhibit similar trends to what we experienced this past quarter characterized by robust performance from our Industrial segment, strong demand for our truck products and the continued benefit of margin improvement initiatives. Excluding future acquisitions, we are projecting third quarter sales and EPS to be in the range of $435 - 445 million, and $0.53-0.57 per diluted share, respectively."
Arzbaecher continued, "Our full year fiscal 2008 sales and earnings outlook is being increased to reflect actual second quarter results, the acquisition of Superior Plant Services, the weaker US dollar and current business conditions. We currently expect sales and EPS in the range of $1.67-1.69 billion and $2.00-2.07 per share, respectively, compared to our previous sales and EPS guidance of $1.625-$1.660 billion and $1.95-$2.05 per diluted share, respectively. The estimates exclude future acquisitions as well as previously recorded European Electrical restructuring charges. This translates to 16-20% EPS growth over the prior year's $1.73 per share, excluding tax gains and European Electrical restructuring charges. Given our diversity, variable cost structure and focus on continuous improvement, Actuant is well-positioned to deliver another record year in 2008."
Conference Call Information
An investor conference call is scheduled for 10:00am CDT today, March 19, 2008. 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 Form 10-K 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 $1.5 billion and its market
capitalization from $113 million to over $1.6 billion. The Company
employs a workforce of more than 7,500 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)
February 29, August 31,
2008 2007
------------ -----------
ASSETS
Current assets
Cash and cash equivalents $94,912 $86,680
Accounts receivable, net 236,006 194,775
Inventories, net 221,208 197,539
Deferred income taxes 14,382 14,827
Other current assets 11,607 11,459
------------ -----------
Total current assets 578,115 505,280
Property, plant and equipment, net 126,133 122,817
Goodwill 626,677 599,841
Other intangible assets, net 276,967 260,418
Other long-term assets 10,138 12,420
------------ -----------
Total assets $1,618,030 $1,500,776
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $2,148 $-
Trade accounts payable 166,923 153,205
Accrued compensation and benefits 47,923 52,345
Income taxes payable 31,000 20,309
Current maturities of long-term debt 34 519
Other current liabilities 67,181 64,449
------------ -----------
Total current liabilities 315,209 290,827
Long-term debt, less current maturities 580,159 561,138
Deferred income taxes 110,726 103,589
Pension and postretirement benefit accruals 23,877 27,437
Other long-term liabilities 25,691 17,864
Shareholders' equity
Capital stock 11,167 11,070
Additional paid-in capital (333,584) (349,190)
Accumulated other comprehensive income
(loss) 19,369 12,876
Stock held in trust (1,997) (1,744)
Deferred compensation liability 1,997 1,744
Retained earnings 865,416 825,165
------------ -----------
Total shareholders' equity 562,368 499,921
------------ -----------
Total liabilities and shareholders' equity $1,618,030 $1,500,776
============ ===========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------------------- -------------------------
Net sales $399,629 $341,020 $814,772 $684,003
Cost of products
sold 265,789 230,775 540,099 460,713
------------------------- -------------------------
Gross profit 133,840 110,245 274,673 223,290
Selling,
administrative
and engineering
expenses 82,679 66,910 163,976 134,065
Restructuring
charge 4,952 3,776 10,472 3,885
Amortization of
intangible assets 3,461 2,660 6,718 4,913
------------------------- -------------------------
Operating profit 42,748 36,899 93,507 80,427
Financing costs,
net 9,032 8,268 18,331 15,110
Other (income)
expense, net (670) 754 (1,780) 970
------------------------- -------------------------
Earnings from
operations
before income
tax expense and
minority
interest 34,386 27,877 76,956 64,347
Income tax expense 12,154 8,956 27,302 20,334
Minority interest,
net of income
taxes (7) 2 (12) (8)
------------------------- -------------------------
Net earnings $22,239 $18,919 $49,666 $44,021
========================= =========================
Earnings per share
Basic $0.40 $0.35 $0.89 $0.81
Diluted 0.35 0.31 0.79 0.71
Weighted average
common shares
outstanding
Basic 55,815 54,653 55,712 54,627
Diluted 64,716 63,480 64,691 63,458
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 29, February 28, February 29, February 28,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Operating
Activities
Net earnings $22,239 $18,919 $49,666 $44,021
Adjustments to
reconcile net
earnings to net
cash provided by
operating
activities:
Depreciation and
amortization 11,028 8,844 21,492 16,721
Stock-based
compensation
expense 1,537 1,333 3,140 2,750
Provision for
deferred income
taxes 293 (237) 6,679 (3,154)
Other (241) 261 (215) 765
Changes in
operating
assets and
liabilities,
excluding the
effects of the
business
acquisitions
Accounts
receivable (2,288) 4,080 (25,055) (10,130)
Accounts
receivable
securitiza-
tion program (4,593) (9,267) 331 (6,115)
Inventories 844 (1,463) (6,180) (7,820)
Prepaid
expenses and
other assets 1,027 61 1,975 (1,311)
Trade accounts
payable 4,524 (9,453) 4,762 (15,208)
Income taxes
payable (796) (9,147) 1,656 (3,770)
Other accrued
liabilities (1,454) (316) 2,593 (5,391)
------------ ------------ ------------ ------------
Net cash provided
by operating
activities 32,120 3,615 60,844 11,358
Investing
Activities
Proceeds from
sale of
property, plant
and equipment 3,258 - 11,579 2,789
Capital
expenditures (10,198) (6,221) (19,234) (12,737)
Business
acquisitions,
net of cash
acquired (3,629) (110,332) (51,066) (110,059)
------------ ------------ ------------ ------------
Net cash used in
investing
activities (10,569) (116,553) (58,721) (120,007)
Financing
Activities
Net borrowings
(repayments) on
revolving
credit
facilities and
short-term
borrowings 2,006 (42,131) 2,140 (43,991)
Proceeds from
term loan - 155,677 - 155,677
Principal
repayments on
term loans (7) (2,469) (1,001) (2,469)
Cash dividend - - (2,221) (2,187)
Tax benefit from
stock-based
compensation 467 - 1,554 -
Other 858 (47) 1,784 67
------------ ------------ ------------ ------------
Net cash provided
by financing
activities 3,324 111,030 2,256 107,097
Effect of exchange
rate changes on
cash 1,296 173 3,853 744
------------ ------------ ------------ ------------
Net increase
(decrease) in
cash and cash
equivalents 26,171 (1,735) 8,232 (808)
Cash and cash
equivalents -
beginning of
period 68,741 26,586 86,680 25,659
------------ ------------ ------------ ------------
Cash and cash
equivalents - end
of period $94,912 $24,851 $94,912 $24,851
============ ============ ============ ============
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $103,935 $96,501 $115,852 $122,855 $439,143
ELECTRICAL
SEGMENT 122,017 123,599 127,653 132,439 505,708
ACTUATION
SYSTEMS SEGMENT 105,654 97,656 111,768 104,367 419,445
ENGINEERED
PRODUCTS
SEGMENT 11,377 23,264 29,817 29,994 94,452
---------------------------------------------------
TOTAL $342,983 $341,020 $385,090 $389,655 $1,458,748
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 31% 34% 34% 22% 30%
ELECTRICAL
SEGMENT 16% 17% 17% 18% 17%
ACTUATION
SYSTEMS SEGMENT 19% 11% 2% 4% 9%
ENGINEERED
PRODUCTS
SEGMENT 7% 120% 157% 159% 112%
TOTAL 21% 24% 22% 20% 21%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $28,958 $24,203 $33,259 $34,865 $121,285
ELECTRICAL
SEGMENT 9,357 9,535 10,341 10,851 40,084
ACTUATION
SYSTEMS SEGMENT 8,614 7,954 10,994 9,562 37,124
ENGINEERED
PRODUCTS
SEGMENT 1,653 3,088 4,069 4,644 13,454
CORPORATE /
GENERAL (4,944) (4,105) (5,756) (6,274) (21,079)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $43,638 $40,675 $52,907 $53,648 $190,868
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
---------------------------------------------------
TOTAL $43,529 $36,899 $52,473 $52,572 $185,473
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 27.9% 25.1% 28.7% 28.4% 27.6%
ELECTRICAL
SEGMENT 7.7% 7.7% 8.1% 8.2% 7.9%
ACTUATION
SYSTEMS SEGMENT 8.2% 8.1% 9.8% 9.2% 8.9%
ENGINEERED
PRODUCTS
SEGMENT 14.5% 13.3% 13.6% 15.5% 14.2%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 13.7% 13.8% 13.1%
EBITDA
INDUSTRIAL
SEGMENT $31,356 $26,475 $35,738 $39,156 $132,725
ELECTRICAL
SEGMENT 11,543 11,404 12,355 13,501 48,803
ACTUATION
SYSTEMS SEGMENT 11,339 10,928 14,179 12,547 48,993
ENGINEERED
PRODUCTS
SEGMENT 1,904 3,986 4,962 5,780 16,632
CORPORATE /
GENERAL (4,844) (4,028) (5,822) (6,350) (21,044)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
---------------------------------------------------
TOTAL $51,189 $44,989 $60,978 $63,558 $220,714
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 30.2% 27.4% 30.8% 31.9% 30.2%
ELECTRICAL
SEGMENT 9.5% 9.2% 9.7% 10.2% 9.7%
ACTUATION
SYSTEMS SEGMENT 10.7% 11.2% 12.7% 12.0% 11.7%
ENGINEERED
PRODUCTS
SEGMENT 16.7% 17.1% 16.6% 19.3% 17.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 15.9% 16.6% 15.5%
FISCAL 2008
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $137,089 $130,802 $267,891
ELECTRICAL
SEGMENT 133,962 130,779 264,741
ACTUATION
SYSTEMS SEGMENT 112,899 109,764 222,663
ENGINEERED
PRODUCTS
SEGMENT 31,193 28,284 59,477
---------------------------------------------------
TOTAL $415,143 $399,629 $814,772
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 32% 36% 34%
ELECTRICAL
SEGMENT 10% 6% 8%
ACTUATION
SYSTEMS SEGMENT 7% 12% 10%
ENGINEERED
PRODUCTS
SEGMENT 174% 22% 72%
TOTAL 21% 17% 19%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $37,976 $32,757 $70,733
ELECTRICAL
SEGMENT 10,426 11,239 21,664
ACTUATION
SYSTEMS SEGMENT 10,059 8,301 18,360
ENGINEERED
PRODUCTS
SEGMENT 4,235 3,146 7,381
CORPORATE /
GENERAL (6,415) (7,743) (14,159)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $56,281 $47,700 $103,979
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) (10,472)
---------------------------------------------------
TOTAL $50,760 $42,748 $93,507
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 27.7% 25.0% 26.4%
ELECTRICAL
SEGMENT 7.8% 8.6% 8.2%
ACTUATION
SYSTEMS SEGMENT 8.9% 7.6% 8.2%
ENGINEERED
PRODUCTS
SEGMENT 13.6% 11.1% 12.4%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.6% 11.9% 12.8%
EBITDA
INDUSTRIAL
SEGMENT $42,570 $37,386 $79,956
ELECTRICAL
SEGMENT 13,226 13,661 26,886
ACTUATION
SYSTEMS SEGMENT 13,292 11,428 24,720
ENGINEERED
PRODUCTS
SEGMENT 5,399 4,445 9,844
CORPORATE /
GENERAL (6,632) (7,522) (14,154)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $67,855 $59,398 $127,252
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) (10,472)
---------------------------------------------------
TOTAL $62,334 $54,446 $116,780
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 31.1% 28.6% 29.8%
ELECTRICAL
SEGMENT 9.9% 10.4% 10.2%
ACTUATION
SYSTEMS SEGMENT 11.8% 10.4% 11.1%
ENGINEERED
PRODUCTS
SEGMENT 17.3% 15.7% 16.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 16.3% 14.9% 15.6%
Note: All prior periods have been restated to include Milwaukee
Cylinder as part of the Industrial Segment. Previously this business
was part of the Engineered Products Segment. The total of the
individual quarters may not equal the annual total due to rounding.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2007
-------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------------------------------------------
NET EARNINGS EXCLUDING
RESTRUCTURING CHARGE AND
TAX ADJUSTMENTS / CREDITS
(1)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT 109 2,926 434 1,076 4,545
TAX ADJUSTMENTS /
CREDITS - - - (1,580) (1,580)
-------------------------------------------
TOTAL (NON-GAAP MEASURE) $25,211 $21,845 $30,014 $30,847 $107,917
===========================================
DILUTED EARNINGS PER SHARE
EXCLUDING RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS / CREDITS (1)
NET EARNINGS (GAAP
MEASURE) $0.41 $0.31 $0.47 $0.50 $1.69
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT - 0.05 0.01 0.02 0.07
TAX ADJUSTMENTS /
CREDITS - - - (0.02) (0.02)
-------------------------------------------
TOTAL (NON-GAAP MEASURE) $0.41 $0.35 $0.48 $0.49 $1.73
===========================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
FINANCING COSTS, NET 6,841 8,268 9,076 8,816 33,001
INCOME TAX EXPENSE 11,379 8,956 13,146 13,300 46,781
DEPRECIATION &
AMORTIZATION 7,877 8,844 9,165 10,137 36,023
MINORITY INTEREST, NET
OF INCOME TAX (10) 2 11 (46) (43)
-------------------------------------------
EBITDA (NON-GAAP
MEASURE) $51,189 $44,989 $60,978 $63,558 $220,714
EUROPEAN ELECTRICAL
RESTRUCTURING CHARGE 109 3,776 434 1,076 5,395
-------------------------------------------
EBITDA (NON-GAAP
MEASURE) - EXCLUDING
RESTRUCTURING CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
===========================================
FISCAL 2008
-------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------------------------------------------
NET EARNINGS EXCLUDING
RESTRUCTURING CHARGE AND
TAX ADJUSTMENTS / CREDITS
(1)
NET EARNINGS (GAAP
MEASURE) $27,427 $22,239 $49,666
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT 5,521 4,729 10,250
TAX ADJUSTMENTS /
CREDITS - - -
-------------------------------------------
TOTAL (NON-GAAP MEASURE) $32,948 $26,968 $59,916
===========================================
DILUTED EARNINGS PER SHARE
EXCLUDING RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS / CREDITS (1)
NET EARNINGS (GAAP
MEASURE) $0.43 $0.35 $0.79
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT 0.09 0.07 0.16
TAX ADJUSTMENTS /
CREDITS - - -
-------------------------------------------
TOTAL (NON-GAAP MEASURE) $0.52 $0.43 $0.95
===========================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $27,427 $22,239 $49,666
FINANCING COSTS, NET 9,300 9,032 18,331
INCOME TAX EXPENSE 15,149 12,154 27,302
DEPRECIATION &
AMORTIZATION 10,464 11,028 21,492
MINORITY INTEREST, NET
OF INCOME TAX (6) (7) (12)
-------------------------------------------
EBITDA (NON-GAAP
MEASURE) $62,334 $54,446 $116,780
EUROPEAN ELECTRICAL
RESTRUCTURING CHARGE 5,521 4,952 10,472
-------------------------------------------
EBITDA (NON-GAAP
MEASURE) - EXCLUDING
RESTRUCTURING CHARGE $67,855 $59,398 $127,252
===========================================
(1) Net earnings and diluted earnings per share excluding
restructuring charges and income tax adjustments / credits
represent net earnings and diluted earnings per share per the
Consolidated Statement of Earnings net of charges or credits for
items to be highlighted for comparability purposes. These
measures should not be considered as an alternative to net
earnings or diluted earnings per share as an indicator of the
company's operating performance. However, this presentation is
important to investors for understanding the operating results of
the current portfolio of Actuant companies. The total of the
individual components do not equal diluted earnings per share
excluding restructuring charges and income tax adjustments /
credits due to rounding.
(2) EBITDA represents net earnings before financing costs, net, income
tax expense, depreciation & amortization and minority interest.
EBITDA is not a calculation based upon generally accepted
accounting principles (GAAP). The amounts included in the EBITDA
calculation, however, are derived from amounts included in the
Consolidated Statements of Earnings data. EBITDA should not be
considered as an alternative to net earnings or operating profit
as an indicator of the company's operating performance, or as an
alternative to operating cash flows as a measure of liquidity.
Actuant has presented EBITDA because it regularly reviews this as
a measure of the company's ability to incur and service debt. In
addition, EBITDA is used by many of our investors and lenders,
and is presented as a convenience to them. However, the EBITDA
measure presented may not always be comparable to similarly
titled measures reported by other companies due to differences in
the components of the calculation. The total of the individual
quarters may not equal the annual total due to rounding.
Source: Actuant Corporation
Released March 19, 2008