Actuant Reports Fourth Quarter Results, Provides Fiscal 2010 Outlook
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced sales and earnings for its fourth quarter and fiscal year ended August 31, 2009.
4th Quarter Highlights
-- Strong cash flow from operations, totaling approximately $49 million in
the quarter and $147 million for the full year.
-- Continued solid execution on restructuring initiatives which will
generate permanent reductions to Actuant's cost structure.
-- Year-over-year core sales rate of change stabilization in three of the
four segments.
-- Sequential EBITDA margin improvement from the third quarter (excluding
restructuring charges) in three of the four segments.
-- Substantially improved net debt position during the fourth quarter,
reflecting over $200 million of repayment with $125 million of net
proceeds from the Company's June equity offering, $38 million of net
proceeds from business divestitures and strong fourth quarter cash flow.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "We are pleased to have finished out this challenging fiscal year with strong cash flow, stabilization in the majority of our businesses and continued solid execution on our restructuring actions. Our sales, earnings and earnings per share, adjusted for special items and the equity offering, were in line with our expectations as benefits from cost reduction and restructuring activities were realized.
In addition to cost structure improvements, I am encouraged by Actuant's continued strong working capital management and cash flow generation. Despite terrible economic conditions over the past year, Actuant generated $147 million in operating cash flow in fiscal 2009. We have used this economic crisis as a catalyst for driving our operations to new performance levels which resulted in significant operating and working capital improvements across our businesses globally. I want to thank our leadership team and all employees for capturing and institutionalizing these improvements."
Consolidated Results
During the fourth quarter, the Company divested Acme Aerospace and BH Electronics. The results of operations for these two businesses, as well as the aggregate net gain on disposition are reported in discontinued operations in the accompanying Condensed Consolidated Statement of Operations. Operating results for all prior periods have been reclassified for comparability.
Consolidated sales for the fourth quarter declined 26% to $290 million compared to $393 million in the fourth quarter of fiscal 2008. Excluding the impact of foreign currency rate changes (-4%) and acquisitions (+5%), core sales (sales excluding the impact of acquisitions, divestitures and currency rate changes) declined 27%. Net earnings and diluted earnings per share ("EPS") in the fiscal 2009 fourth quarter were $16.5 million and $0.24, respectively, compared to net earnings of $34.2 million and EPS of $0.54 in the comparable prior year quarter. Earnings and EPS from continuing operations were $4.5 million and $0.07, respectively, compared to $33.6 million and $0.53 for the comparable prior year period. Results from continuing operations for the fourth quarter of 2009 included a $2.1 million ($0.02 per diluted share) pre-tax non-cash debt extinguishment charge following the equity offering as well as pre-tax restructuring charges of $9.3 million, or $0.09 per diluted share. Excluding these items, EPS from continuing operations was $0.18 in the fourth quarter of fiscal 2009 compared to $0.53 in the prior year's quarter. (See attached reconciliation of earnings).
Sales for the year ended August 31, 2009 were $1,240 million, 23% lower than the $1,613 million in the prior year. Excluding the impact of the stronger US dollar (-4%) and sales from acquired businesses (+4%), year-to-date core sales decreased 23%. Net earnings for the year ended August 31, 2009 were $13.7 million, or $0.24 per diluted share, compared to fiscal 2008 net earnings of $122.5 million, or $1.93 per diluted share. Earnings and EPS from continuing operations were $23.9 million and $0.40, respectively compared to $119.2 million and $1.88 for the prior year. Fiscal 2009 results from continuing operations included $31.3 million ($0.29 per diluted share) of pre-tax non-cash asset impairment charges, $23.7 million ($0.24 per diluted share) of pre-tax restructuring charges and $1.7 million ($0.02 per diluted share) of pre-tax non-cash debt extinguishment charges. Results for the year ended August 31, 2008 included $10.5 million ($0.16 per diluted share) of pre-tax restructuring charges and a tax benefit of $2.6 million ($0.04 per diluted share). Excluding these items, fiscal 2009 EPS from continuing operations was $0.95, compared to $2.00 for the prior year. (See attached reconciliation of earnings).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
2009 2008 2009 2008
Sales $61.8 $98.1 $286.9 $374.5
Operating Profit (1) $13.7 $31.1 $71.4 $113.8
Operating Profit % (1) 22.2% 31.7% 24.9% 30.4%
(1) Results for the three and twelve months ended August 31, 2009 exclude restructuring charges of $2.4 million and $3.9 million, respectively.
Fourth quarter fiscal 2009 Industrial segment sales decreased 37% to $62 million. Excluding foreign currency rate changes (-2%), Industrial segment core sales were 35% lower than the comparable prior year period; however, they were approximately level with the third fiscal quarter. The year-over-year sales decline was broad based across the diverse end markets and geographic regions served by this segment. The segment's core sales rate of change stabilized since May 2009. Fourth quarter operating profit margin (excluding restructuring costs) was 22.2%, below the comparable prior year quarter due to lower sales and production as well as unfavorable sales mix.
Energy Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
2009 2008 2009 2008
Sales $63.7 $60.8 $259.5 $212.4
Operating Profit (2) $11.8 $16.3 $45.1 $48.0
Operating Profit % (2) 18.5% 26.7% 17.4% 22.6%
(2) Results for the three and twelve months ended August 31, 2009 exclude restructuring charges of $0.7 million and $1.0 million, respectively.
Fiscal 2009 fourth quarter Energy segment sales grew 5% to $64 million. Acquisitions contributed 25% to sales while the stronger US dollar reduced sales by 9%. Core sales declined 11% due to lower capital project based revenue. While the Company saw certain of its customers defer or reduce maintenance at some oil & gas installations, this important source of Energy segment revenue held up better than exploration or new commissioning related business. Operating profit margin (excluding restructuring costs) declined year-over-year reflecting unfavorable acquisition mix and the lower volumes.
Electrical Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
2009 2008 2009 2008
Sales $87.8 $112.7 $364.2 $496.4
Operating Profit (3) $4.2 $5.1 $15.6 $35.0
Operating Profit % (3) 4.8% 4.5% 4.3% 7.1%
(3) Results for the three months ended August 31, 2009 exclude restructuring charges of $3.0 million. Results for the twelve months ended August 31, 2009 exclude a $4.8 million pre-tax non-cash asset impairment charge and $9.8 million of restructuring charges. Results for the twelve months ended August 31, 2008 exclude restructuring charges of $10.5 million.
Electrical segment fiscal 2009 fourth quarter sales declined 22% to $88 million. The stronger US dollar contributed 3% to the sales decline. Core sales decreased 19% from the prior year reflecting continued weak demand. However, the core revenue year-over-year rate of change improved sequentially from -30% in the third quarter of fiscal 2009 to -19% in the fourth quarter. Sales trends to both the marine aftermarket and DIY channel improved sequentially during the fourth quarter. Fourth quarter operating profit margin (excluding restructuring costs) increased to 4.8%, a 30 basis point improvement from the prior year and 110 basis points sequentially. The increase primarily reflects cost reduction benefits and improved product sales mix.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
2009 2008 2009 2008
Sales $76.7 $121.8 $329.3 $529.8
Operating Profit (4) $0.3 $11.3 $6.5 $50.6
Operating Profit % (4) 0.4% 9.3% 2.0% 9.6%
(4) Results for the three months ended August 31, 2009 exclude restructuring charges of $3.0 million. Results for the twelve months ended August 31, 2009 exclude a $26.6 million pre-tax non-cash RV asset impairment charge and $8.3 million of restructuring charges.
Fourth quarter fiscal 2009 Engineered Solutions segment sales declined 37% (-37% core, -3% currency translation and +3% acquisitions) reflecting significantly reduced demand from truck and specialty vehicle end markets. While automotive revenues increased sequentially due to new program launches, major global truck OEM's continued to reduce their inventory levels by producing fewer trucks than they sold. Fourth quarter operating margins (excluding restructuring) continue to be negatively impacted by the significant reduction in sales, unfavorable product line sales mix and lower manufacturing overhead absorption.
Corporate
Corporate expenses for the fourth quarter of fiscal 2009, excluding restructuring charges of approximately $0.2 million, were $5.0 million compared to $8.5 million in the comparable prior year quarter primarily due to lower incentive compensation expense, salary and headcount reductions and reduced discretionary spending.
Financial Position
Net debt at August 31, 2009 was $394 million (total debt of $405 million less $11 million of cash). The Company completed a follow-on equity offering during the quarter, issuing 10.925 million shares for net proceeds of approximately $125 million which were used to reduce indebtedness. In addition, the aforementioned business divestitures generated net proceeds of $38 million, also used to reduce outstanding borrowings. The combination of these items, as well as robust fourth quarter operating cash flow, had a significant impact on the Company's capitalization with $200 million of net debt reduction since May 31, 2009. As of August 31, 2009, the Company had over $350 million of unused revolver capacity.
Outlook
Arzbaecher continued, "We begin the new fiscal year with both opportunities and challenges facing Actuant. While the rate of change in sales has stabilized in most of our end markets, we still have difficult year-over-year comparisons ahead of us, most pronounced in the first two fiscal quarters of 2010. Visibility in our later cycle Energy segment remains challenging as the number of capital projects industry-wide has declined steadily over the past six months. However, with customer inventory destocking moderating and the global economic slowdown approaching its anniversary, our sequential and year-over-year revenues are expected to improve in the second half of fiscal 2010. We also will be realizing additional benefits of restructuring activities in the second half of the fiscal year as most current projects reach completion by mid-year. As we experienced this past year, the biggest variable in our fiscal 2010 results will be the general economy and its impact on revenue. We have assumed an overall fiscal 2010 core sales decline of 3%-8%, driven by continued difficult comparisons in the first half of the fiscal year partially offset by improvements in the second half. Our revenue guidance for fiscal 2010 is $1.15-$1.25 billion. We anticipate diluted EPS for the full year, excluding restructuring costs, to be in the $0.70-$0.95 range. Full year free cash flow is expected to be in the $90-$100 million range, which would result in free cash flow conversion well in excess of 100%. We continue to pursue accretive acquisition opportunities which, when executed, will be incremental to this guidance. Our first quarter fiscal 2010 guidance reflects expected sequential stability with sales in the $280-$300 million range and EPS in the range of $0.12-$0.17 (excluding restructuring charges)."
Concluded Arzbaecher, "We are optimistic that over the next twelve months we will begin to see improved business and consumer confidence levels which will benefit Actuant and the broader economy. I continue to be very confident in Actuant's long-term organic and acquisition driven growth prospects. With our strong cash flow and borrowing capacity, we are well positioned to finance these growth opportunities. The fundamentals for our growth strategies are in place, and our people, at all levels, are dedicated and driven to realizing those opportunities."
Conference Call Information
An investor conference call is scheduled for 10am CT today, September 30, 2009. 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. 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
Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in branded hydraulic and electrical tools and supplies, umbilical, rope and cable solutions and highly engineered position and motion control systems. The Company employs a workforce of approximately 5,900 worldwide. Actuant 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)
August 31, August 31,
2009 2008
ASSETS
Current assets
Cash and cash equivalents $ 11,385 $ 122,549
Accounts receivable, net 155,520 226,564
Inventories, net 160,656 215,391
Deferred income taxes 20,855 11,870
Other current assets 15,246 16,092
Total current assets 363,662 592,466
Property, plant and equipment, net 129,118 134,550
Goodwill 711,522 639,862
Other intangible assets, net 350,249 292,359
Other long-term assets 13,880 9,145
Total assets $ 1,568,431 $ 1,668,382
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 4,964 $ 339
Trade accounts payable 108,333 166,863
Accrued compensation and benefits 30,079 59,023
Income taxes payable 20,578 24,867
Other current liabilities 71,140 60,033
Total current liabilities 235,094 311,125
Long-term debt, less current maturities 400,135 573,818
Deferred income taxes 117,335 99,634
Pension and postretirement benefit accruals 37,662 27,641
Other long-term liabilities 30,835 26,658
Shareholders' equity
Capital stock 13,543 11,200
Additional paid-in capital (188,644 ) (324,898 )
Accumulated other comprehensive (loss) income (24,599 ) 7,149
Stock held in trust (1,766 ) (2,081 )
Deferred compensation liability 1,766 2,081
Retained earnings 947,070 936,055
Total shareholders' equity 747,370 629,506
Total liabilities and shareholders' equity $ 1,568,431 $ 1,668,382
Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
August 31, August 31, August 31, August 31,
2009 2008 2009 2008
Net sales $ 290,056 $ 393,470 $ 1,239,798 $ 1,613,190
Cost of products sold 195,476 251,219 825,124 1,052,141
Gross profit 94,580 142,251 414,674 561,049
Selling, administrative
and engineering 65,233 83,144 275,751 330,609
expenses
Restructuring charges 8,240 - 22,426 10,473
Impairment charges - - 31,321 -
Amortization of 5,378 3,870 19,724 13,933
intangible assets
Operating profit 15,729 55,237 65,452 206,034
Financing costs, net 10,685 8,887 41,849 36,409
Other (income) expense, (4 ) (1,412 ) 209 (2,991 )
net
Earnings from
continuing operations
before income
tax expense and 5,048 47,762 23,394 172,616
minority interest
Income tax expense 540 14,182 (474 ) 53,416
(benefit)
Minority interest, net (4 ) (2 ) 17 22
of income taxes
Earnings from 4,512 33,582 23,851 119,178
continuing operations
Earnings (loss) from
discontinued
operations,
net of income taxes 12,003 661 (10,128 ) 3,366
Net earnings $ 16,515 $ 34,243 $ 13,723 $ 122,544
Earnings from
continuing operations
per share
Basic $ 0.07 $ 0.60 $ 0.41 $ 2.14
Diluted 0.07 0.53 0.40 1.88
Earnings per share
Basic $ 0.26 $ 0.61 $ 0.24 $ 2.20
Diluted 0.24 0.54 0.24 1.93
Weighted average common
shares outstanding
Basic 63,742 55,953 58,047 55,813
Diluted 71,554 65,011 66,064 64,833
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,
2009 2008 2009 2008
Operating Activities
Net earnings $ 16,515 $ 34,243 13,723 $ 122,544
Adjustments to reconcile net
earnings to net cash provided
by
operating activities:
Depreciation and amortization 13,480 11,783 51,978 44,709
Stock-based compensation 2,208 1,957 8,609 6,847
expense
Provision (benefit) for 2,269 (1,078 ) (17,847 ) 5,912
deferred income taxes
Impairment charges - - 58,274 -
Net gain on disposal of (15,831 ) - (15,831 ) -
businesses
Amortization of debt discount 2,870 367 4,531 1,372
and debt issuance costs
(Gain)/Loss on disposal of 1,176 (30 ) 1,585 (1,576 )
assets
Changes in operating assets
and liabilities, excluding
the effects of the business
acquisitions
Accounts receivable 5,230 20,922 87,052 (13,929 )
Accounts receivable (2,355 ) (8,621 ) (15,837 ) (3,576 )
securitization program
Inventories 21,231 2,369 57,963 (5,697 )
Prepaid expenses and other 252 (1,315 ) 1,075 429
assets
Trade accounts payable 6,091 (7,127 ) (61,932 ) 7,586
Income taxes payable (1,987 ) 702 (9,180 ) (576 )
Other accrued liabilities (2,115 ) (9,267 ) (17,448 ) 6,052
Net cash provided by 49,034 44,905 146,715 170,097
operating activities
Investing Activities
Proceeds from sale of 1,255 389 1,862 14,065
property, plant and equipment
Capital expenditures (6,436 ) (11,905 ) (21,454 ) (44,407 )
Proceeds from sale of
businesses, net of 38,455 - 38,455 -
transaction costs
Business acquisitions, net of (3,500 ) - (239,422 ) (110,109 )
cash acquired
Net cash provided by (used 29,774 (11,516 ) (220,559 ) (140,451 )
in) investing activities
Financing Activities
Net (repayments) borrowings
on revolving credit (88,642 ) (1,909 ) 7,557 246
facilities and other debt
Proceeds from term loan - - 115,000 -
Principal repayments on term (113,562 ) (7 ) (270,000 ) (1,015 )
loans
Debt issuance and amendment (3,825 ) - (9,158 ) (265 )
costs
Proceeds from equity
offering, net of transaction 124,781 - 124,781 -
costs
Cash dividend - - (2,251 ) (2,221 )
Stock option exercises,
related tax benefits, and 550 3,819 4,024 8,294
other
Net cash (used in) provided (80,698 ) 1,903 (30,047 ) 5,039
by financing activities
Effect of exchange rate (17 ) (3,822 ) (7,273 ) 1,184
changes on cash
Net increase (decrease) in (1,907 ) 31,470 (111,164 ) 35,869
cash and cash equivalents
Cash and cash equivalents - 13,292 91,079 122,549 86,680
beginning of period
Cash and cash equivalents - $ 11,385 $ 122,549 $ 11,385 $ 122,549
end of period
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
SALES
INDUSTRIAL $ $ $ $ $ 374,498 $ $ $ $ $ 286,851
SEGMENT 87,412 87,344 101,593 98,149 90,524 71,682 62,843 61,802
ENERGY SEGMENT 49,677 43,458 58,442 60,823 212,400 73,982 59,526 62,251 63,731 259,490
ELECTRICAL 130,130 126,705 126,865 112,745 496,445 102,898 89,719 83,752 87,792 364,161
SEGMENT
ENGINEERED
SOLUTIONS 133,780 129,403 144,911 121,753 529,847 103,385 72,872 76,308 76,731 329,296
SEGMENT
TOTAL $ $ $ $ $ $ $ $ $ $
400,999 386,910 431,811 393,470 1,613,190 370,789 293,799 285,154 290,056 1,239,798
% SALES GROWTH
INDUSTRIAL 37 % 33 % 38 % 30 % 34 % 4 % -18 % -38 % -37 % -23 %
SEGMENT
ENERGY SEGMENT 24 % 41 % 38 % 29 % 32 % 49 % 37 % 7 % 5 % 22 %
ELECTRICAL 2 % -1 % -5 % -15 % -5 % -21 % -29 % -34 % -22 % -27 %
SEGMENT
ENGINEERED
SOLUTIONS 23 % 16 % 10 % -1 % 11 % -23 % -44 % -47 % -37 % -38 %
SEGMENT
TOTAL 18 % 15 % 13 % 4 % 12 % -8 % -24 % -34 % -26 % -23 %
OPERATING PROFIT
(LOSS)
INDUSTRIAL $ $ $ $ $ 113,809 $ $ $ $ $ 71,368
SEGMENT 25,662 25,990 31,054 31,103 26,107 15,972 15,597 13,692
ENERGY SEGMENT 12,314 6,767 12,638 16,266 47,985 15,647 5,895 11,772 11,801 45,115
ELECTRICAL 10,299 11,044 8,546 5,121 35,010 5,896 2,404 3,119 4,213 15,632
SEGMENT
ENGINEERED
SOLUTIONS 12,707 10,485 16,125 11,296 50,613 7,865 (2,735 ) 991 342 6,463
SEGMENT
CORPORATE / (6,415 ) (7,743 ) (8,203 ) (8,549 ) (30,910 ) (3,197 ) (5,013 ) (4,815 ) (5,042 ) (18,066 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 54,567 46,543 60,160 55,237 $ 216,507 52,318 16,523 26,664 25,006 $ 120,512
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (4,768 ) - (31,321 )
CHARGES
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 )
CHARGES (1)
TOTAL $ $ $ $ $ 206,034 $ $ $ $ $ 65,452
49,046 41,591 60,160 55,237 25,091 13,484 11,147 15,729
OPERATING PROFIT
%
INDUSTRIAL 29.4 % 29.8 % 30.6 % 31.7 % 30.4 % 28.8 % 22.3 % 24.8 % 22.2 % 24.9 %
SEGMENT
ENERGY SEGMENT 24.8 % 15.6 % 21.6 % 26.7 % 22.6 % 21.1 % 9.9 % 18.9 % 18.5 % 17.4 %
ELECTRICAL 7.9 % 8.7 % 6.7 % 4.5 % 7.1 % 5.7 % 2.7 % 3.7 % 4.8 % 4.3 %
SEGMENT
ENGINEERED
SOLUTIONS 9.5 % 8.1 % 11.1 % 9.3 % 9.6 % 7.6 % -3.8 % 1.3 % 0.4 % 2.0 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 13.6 % 12.0 % 13.9 % 14.0 % 13.4 % 14.1 % 5.6 % 9.4 % 8.6 % 9.7 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ $ $ $ $ 121,073 $ $ $ $ $ 77,727
SEGMENT 28,017 27,840 32,617 32,599 27,139 17,058 18,208 15,322
ENERGY SEGMENT 14,553 9,546 15,771 20,399 60,269 21,671 11,492 15,080 16,235 64,478
ELECTRICAL 12,929 13,293 10,863 7,163 44,248 7,103 3,440 5,307 6,388 22,238
SEGMENT
ENGINEERED
SOLUTIONS 16,894 14,707 19,756 16,051 67,408 12,412 1,264 3,915 4,949 22,541
SEGMENT
CORPORATE / (6,632 ) (7,522 ) (7,991 ) (8,163 ) (30,308 ) (3,110 ) (4,058 ) (4,237 ) (4,196 ) (15,601 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 65,761 57,864 71,016 68,049 $ 262,690 65,215 29,196 38,273 38,698 $ 171,383
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (4,768 ) - (31,321 )
CHARGES
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 )
CHARGES (1)
TOTAL $ $ $ $ $ 252,217 $ $ $ $ $ 116,323
60,240 52,912 71,016 68,049 37,988 26,157 22,756 29,421
EBITDA %
INDUSTRIAL 32.1 % 31.9 % 32.1 % 33.2 % 32.3 % 30.0 % 23.8 % 29.0 % 24.8 % 27.1 %
SEGMENT
ENERGY SEGMENT 29.3 % 22.0 % 27.0 % 33.5 % 28.4 % 29.3 % 19.3 % 24.2 % 25.5 % 24.8 %
ELECTRICAL 9.9 % 10.5 % 8.6 % 6.4 % 8.9 % 6.9 % 3.8 % 6.3 % 7.3 % 6.1 %
SEGMENT
ENGINEERED
SOLUTIONS 12.6 % 11.4 % 13.6 % 13.2 % 12.7 % 12.0 % 1.7 % 5.1 % 6.4 % 6.8 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 16.4 % 15.0 % 16.4 % 17.3 % 16.3 % 17.6 % 9.9 % 13.4 % 13.3 % 13.8 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
Note: The total of the individual quarters may not equal the annual total due to rounding.
(1) The restructuring charges for the third and fourth quarters of fiscal 2009 and total fiscal 2009 includes $276, $1,037 and
$1,313 of charges included in cost of products sold on the Condensed Consolidated Statements of Operations.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
NET EARNINGS
(LOSS), EXCLUDING
RESTRUCTURING
CHARGES,
IMPAIRMENT
CHARGES, INCOME
TAX ADJUSTMENTS /
CREDITS,
DEBT
EXTINGUISHMENT
CHARGES, AND
DISCONTINUED
OPERATIONS (1)
NET EARNINGS $ $ $ $ $ $ $ $ $ $
(LOSS) (GAAP 27,427 22,239 38,635 34,243 122,544 11,598 3,244 (17,635 ) 16,515 13,723
MEASURE)
RESTRUCTURING
CHARGES, NET 5,521 4,729 - - 10,250 481 2,028 7,173 6,223 15,905
OF TAX BENEFIT
IMPAIRMENT
CHARGES, NET - - - - - 16,463 - 2,981 - 19,444
OF TAX BENEFIT
TAX
ADJUSTMENTS / - - (2,625 ) - (2,625 ) - - - - -
CREDITS
DEBT
EXTINGUISHMENT - - - - - (236 ) - - 1,303 1,067
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300 985 20,846 (12,003 ) 10,128
NET OF TAX
BENEFIT
TOTAL (NON-GAAP $ $ $ $ $ $ $ $ $ $
MEASURE) 31,846 26,227 35,148 33,582 126,803 28,606 6,257 13,365 12,038 60,267
DILUTED EARNINGS
(LOSS) PER SHARE,
EXCLUDING
RESTRUCTURING
CHARGES,
IMPAIRMENT
CHARGES, INCOME
TAX ADJUSTMENTS /
CREDITS,
DEBT
EXTINGUISHMENT
CHARGES, AND
DISCONTINUED
OPERATIONS (1)
NET EARNINGS
(LOSS) (GAAP $ 0.43 $ 0.35 $ 0.60 $ 0.54 $ 1.93 $ 0.19 $ 0.06 $ (0.27 ) $ 0.24 $ 0.24
MEASURE)
RESTRUCTURING
CHARGES, NET 0.09 0.07 - - 0.16 0.01 0.03 0.11 0.09 0.24
OF TAX BENEFIT
IMPAIRMENT
CHARGES, NET - - - - - 0.26 - 0.05 - 0.29
OF TAX BENEFIT
TAX
ADJUSTMENTS / - - (0.04 ) - (0.04 ) - - - - -
CREDITS
DEBT
EXTINGUISHMENT - - - - - (0.00 ) - - 0.02 0.02
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.04 ) - 0.02 0.33 (0.17 ) 0.15
NET OF TAX
BENEFIT
TOTAL (NON-GAAP $ 0.51 $ 0.41 $ 0.55 $ 0.53 $ 2.00 $ 0.45 $ 0.11 $ 0.22 $ 0.18 $ 0.95
MEASURE)
EBITDA (2)
NET EARNINGS $ $ $ $ $ $ $ $ $ $
(LOSS) (GAAP 27,427 22,239 38,635 34,243 122,544 11,598 3,244 (17,635 ) 16,515 13,723
MEASURE)
FINANCING 9,300 9,032 9,190 8,887 36,409 12,235 9,904 9,025 10,685 41,849
COSTS, NET
INCOME TAX 14,537 11,738 12,959 14,182 53,416 1,497 (604 ) (1,907 ) 540 (474 )
EXPENSE
DEPRECIATION & 10,084 10,651 11,057 11,400 43,192 12,363 12,638 12,391 13,688 51,080
AMORTIZATION
MINORITY
INTEREST, NET (6 ) (7 ) 37 (2 ) 22 (5 ) (10 ) 36 (4 ) 17
OF INCOME TAX
DISCONTINUED
OPERATIONS, (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300 985 20,846 (12,003 ) 10,128
NET OF TAX
BENEFIT
EBITDA $ $ $ $ $ $ $ $ $ $
(NON-GAAP 60,240 52,912 71,016 68,049 252,217 37,988 26,157 22,756 29,421 116,323
MEASURE)
IMPAIRMENT - - - - - 26,553 - 4,768 - 31,321
CHARGES
RESTRUCTURING 5,521 4,952 - - 10,473 674 3,039 10,749 9,277 23,739
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING
DISCONTINUED
OPERATIONS,
IMPAIRMENT,
AND $ $ $ $ $ $ $ $ $ $
RESTRUCTURING 65,761 57,864 71,016 68,049 262,690 65,215 29,196 38,273 38,698 171,383
CHARGES
Net earnings and diluted earnings per share excluding restructuring charges, impairment charges, income tax adjustments
/ credits, debt extinguishment charges and discontinued operations represent net earnings and diluted earnings per
share per the Condensed Consolidated Statements of Operations net of charges or credits for items to be highlighted for
(1) 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 may not equal due to rounding.
EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization, minority
interest and discontinued operations. 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
(2) 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 September 30, 2009