Actuant Reclassifies Historical Results for Discontinued Operations
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE:ATU) completed the sale of its Acme Aerospace and BH Electronics businesses during the fiscal quarter ended August 31, 2009. As a result of these divestitures, the Company has reclassified the historical operating results of these businesses to discontinued operations (see attachment).
On Wednesday September 30, 2009 the Company will be announcing financial results for its fourth quarter and fiscal year ended August 31, 2009. Results will include approximately $13 million of earnings from discontinued operations, net of income taxes, primarily reflecting the net gain on the divestitures noted above. During the quarter, the Company recognized an approximately $2 million pre-tax debt extinguishment charge upon the retirement of its bank term loan with the proceeds from its June equity offering. Excluding discontinued operations, restructuring costs and the debt extinguishment charge, the Company's fourth quarter results from continuing operations will be within the $275-$295 million sales and $0.12-$0.20 diluted earnings per share guidance ranges it provided in its June 17, 2009 press release.
(tables follow)
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 as well as highly engineered position and motion control systems. The Company employs a workforce of approximately 6,000 worldwide. Actuant trades on the NYSE under the symbol ATU.
Safe Harbor
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
Actuant Corporation
Condensed Consolidated Statements of Operations - REVISED FOR DISCONTINUED OPERATIONS PRESENTATION
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Three Months Ended Nine
November February May 31, August Months November February May 31, Months
30, 29, 31, Ended 30, 28, Ended
2007 2008 2008 2008 August 31, 2008 2009 2009 May 31,
2008 2009
Net sales $ $ $ $ $ $ $ $ $
400,999 386,910 431,811 393,470 1,613,190 370,789 293,799 285,154 949,742
Cost of 263,827 256,003 281,092 251,219 1,052,141 240,564 199,291 189,793 629,648
products sold
Gross profit 137,172 130,907 150,719 142,251 561,049 130,225 94,508 95,361 320,094
Selling,
administrative
and 79,574 81,129 86,762 83,144 330,609 73,676 73,002 63,841 210,518
engineering
expenses
Restructuring 5,521 4,952 - - 10,473 674 3,039 10,473 14,186
charges
Impairment - - - - - 26,553 - 4,768 31,321
charges
Amortization
of intangible 3,031 3,235 3,797 3,870 13,933 4,231 4,983 5,132 14,346
assets
Operating 49,046 41,591 60,160 55,237 206,034 25,091 13,484 11,147 49,723
profit
Financing 9,300 9,032 9,190 8,887 36,409 12,235 9,904 9,025 31,164
costs, net
Other (income) (1,110 ) (670 ) 201 (1,412 ) (2,991 ) (534 ) (35 ) 782 213
expense, net
Earnings from
continuing
operations
before
income tax
expense and 40,856 33,229 50,769 47,762 172,616 13,390 3,615 1,340 18,346
minority
interest
Income tax
expense 14,537 11,738 12,959 14,182 53,416 1,497 (604 ) (1,907 ) (1,014 )
(benefit)
Minority
interest, net (6 ) (7 ) 37 (2 ) 22 (5 ) (10 ) 36 21
of income
taxes
Earnings from
continuing 26,325 21,498 37,773 33,582 119,178 11,898 4,229 3,211 19,339
operations
Earnings
(loss) from
discontinued
operations,
net of income 1,102 741 862 661 3,366 (300 ) (985 ) (20,846 ) (22,131 )
taxes
Net earnings $ $ $ $ $ 122,544 $ $ 3,244 $ ) $ )
(loss) 27,427 22,239 38,635 34,243 11,598 (17,635 (2,792
Earnings from
continuing
operations per
share
Basic $ 0.47 $ 0.39 $ 0.68 $ 0.60 $ 2.14 $ 0.21 $ 0.08 $ 0.06 $ 0.34
Diluted 0.42 0.34 0.59 0.53 1.88 0.19 0.08 0.06 0.33
Earnings
(loss) per
share
Basic $ 0.49 $ 0.40 $ 0.69 $ 0.61 $ 2.20 $ 0.21 $ 0.06 $ (0.31 ) $ (0.05 )
Diluted 0.43 0.35 0.60 0.54 1.93 0.19 0.06 (0.27 ) (0.01 )
Weighted
average common
shares
outstanding
Basic 55,609 55,815 55,874 55,953 55,813 56,022 56,170 56,252 56,148
Diluted 64,654 64,716 64,945 65,011 64,833 64,395 64,256 64,051 64,234
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL
SALES
INDUSTRIAL $ $ $ $ $ 374,498 $ $ $ $
SEGMENT 87,412 87,344 101,593 98,149 90,524 71,682 62,843 225,049
ENERGY SEGMENT 49,677 43,458 58,442 60,823 212,400 73,982 59,526 62,251 195,759
ELECTRICAL 130,130 126,705 126,865 112,745 496,445 102,898 89,719 83,752 276,369
SEGMENT
ENGINEERED
SOLUTIONS 133,780 129,403 144,911 121,753 529,847 103,385 72,872 76,308 252,565
SEGMENT
TOTAL $ $ $ $ $ $ $ $ $
400,999 386,910 431,811 393,470 1,613,190 370,789 293,799 285,154 949,742
% SALES GROWTH
INDUSTRIAL 37 % 33 % 38 % 30 % 34 % 4 % -18 % -38 % -19 %
SEGMENT
ENERGY SEGMENT 24 % 41 % 38 % 29 % 32 % 49 % 37 % 7 % 29 %
ELECTRICAL 2 % -1 % -5 % -15 % -5 % -21 % -29 % -34 % -28 %
SEGMENT
ENGINEERED
SOLUTIONS 23 % 16 % 10 % -1 % 11 % -23 % -44 % -47 % -38 %
SEGMENT
TOTAL 18 % 15 % 13 % 4 % 12 % -8 % -24 % -34 % -22 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ $ $ $ $ 113,809 $ $ $ $
SEGMENT 25,662 25,990 31,054 31,103 26,107 15,972 15,597 57,676
ENERGY SEGMENT 12,314 6,767 12,638 16,266 47,985 15,647 5,895 11,772 33,314
ELECTRICAL 10,299 11,044 8,546 5,121 35,010 5,896 2,404 3,119 11,419
SEGMENT
ENGINEERED
SOLUTIONS 12,707 10,485 16,125 11,296 50,613 7,865 (2,735 ) 991 6,121
SEGMENT
CORPORATE / (6,415 ) (7,743 ) (8,203 ) (8,549 ) (30,910 ) (3,197 ) (5,013 ) (4,815 ) (13,025 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 54,567 46,543 60,160 55,237 $ 216,507 52,318 16,523 26,664 95,505
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (4,768 ) (31,321 )
CHARGES
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (674 ) (3,039 ) (10,749 ) (14,462 )
CHARGES (1)
TOTAL $ $ $ $ $ 206,034 $ $ $ $
49,046 41,591 60,160 55,237 25,091 13,484 11,147 49,723
OPERATING
PROFIT %
INDUSTRIAL 29.4 % 29.8 % 30.6 % 31.7 % 30.4 % 28.8 % 22.3 % 24.8 % 25.6 %
SEGMENT
ENERGY SEGMENT 24.8 % 15.6 % 21.6 % 26.7 % 22.6 % 21.1 % 9.9 % 18.9 % 17.0 %
ELECTRICAL 7.9 % 8.7 % 6.7 % 4.5 % 7.1 % 5.7 % 2.7 % 3.7 % 4.1 %
SEGMENT
ENGINEERED
SOLUTIONS 9.5 % 8.1 % 11.1 % 9.3 % 9.6 % 7.6 % -3.8 % 1.3 % 2.4 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 13.6 % 12.0 % 13.9 % 14.0 % 13.4 % 14.1 % 5.6 % 9.4 % 10.1 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ $ $ $ $ 121,073 $ $ $ $
SEGMENT 28,017 27,840 32,617 32,599 27,139 17,058 18,208 62,405
ENERGY SEGMENT 14,553 9,546 15,771 20,399 60,269 21,671 11,492 15,080 48,243
ELECTRICAL 12,929 13,293 10,863 7,163 44,248 7,103 3,440 5,307 15,850
SEGMENT
ENGINEERED
SOLUTIONS 16,894 14,707 19,756 16,051 67,408 12,412 1,264 3,915 17,591
SEGMENT
CORPORATE / (6,632 ) (7,522 ) (7,991 ) (8,163 ) (30,308 ) (3,110 ) (4,058 ) (4,237 ) (11,405 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 65,761 57,864 71,016 68,049 $ 262,690 65,215 29,196 38,273 132,684
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (4,768 ) (31,321 )
CHARGES
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (674 ) (3,039 ) (10,749 ) (14,462 )
CHARGES (1)
TOTAL $ $ $ $ $ 252,217 $ $ $ $
60,240 52,912 71,016 68,049 37,988 26,157 22,756 86,901
EBITDA %
INDUSTRIAL 32.1 % 31.9 % 32.1 % 33.2 % 32.3 % 30.0 % 23.8 % 29.0 % 27.7 %
SEGMENT
ENERGY SEGMENT 29.3 % 22.0 % 27.0 % 33.5 % 28.4 % 29.3 % 19.3 % 24.2 % 24.6 %
ELECTRICAL 9.9 % 10.5 % 8.6 % 6.4 % 8.9 % 6.9 % 3.8 % 6.3 % 5.7 %
SEGMENT
ENGINEERED
SOLUTIONS 12.6 % 11.4 % 13.6 % 13.2 % 12.7 % 12.0 % 1.7 % 5.1 % 7.0 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 16.4 % 15.0 % 16.4 % 17.3 % 16.3 % 17.6 % 9.9 % 13.4 % 14.0 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
Note: The total of the individual quarters may not equal the annual total due to rounding.
(1) The restructuring charge for the third quarter of fiscal 2009 and year-to-date fiscal 2009 includes $276 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 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 ) (2,792 )
MEASURE)
RESTRUCTURING
CHARGES, NET 5,521 4,729 - - 10,250 481 2,028 7,173 9,682
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 ) - - (236 )
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300 985 20,846 22,131
NET OF TAX
BENEFIT
TOTAL (NON-GAAP $ $ $ $ $ $ $ $ $
MEASURE) 31,846 26,227 35,148 33,582 126,803 28,606 6,257 13,365 48,228
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 ) $ (0.01 )
MEASURE)
RESTRUCTURING
CHARGES, NET 0.09 0.07 - - 0.16 0.01 0.03 0.11 0.15
OF TAX BENEFIT
IMPAIRMENT
CHARGES, NET - - - - - 0.26 - 0.05 0.30
OF TAX BENEFIT
TAX
ADJUSTMENTS / - - (0.04 ) - (0.04 ) - - - -
CREDITS
DEBT
EXTINGUISHMENT - - - - - (0.00 ) - - (0.00 )
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.04 ) 0.00 0.02 0.33 0.34
NET OF TAX
BENEFIT
TOTAL (NON-GAAP $ 0.51 $ 0.41 $ 0.55 $ 0.53 $ 2.00 $ 0.45 $ 0.11 $ 0.22 $ 0.78
MEASURE)
EBITDA (2)
NET EARNINGS $ $ $ $ $ $ $ $ $
(LOSS) (GAAP 27,427 22,239 38,635 34,243 122,544 11,598 3,244 (17,635 ) (2,792 )
MEASURE)
FINANCING 9,300 9,032 9,190 8,887 36,409 12,235 9,904 9,025 31,164
COSTS, NET
INCOME TAX 14,537 11,738 12,959 14,182 53,416 1,497 (604 ) (1,907 ) (1,014 )
EXPENSE
DEPRECIATION & 10,084 10,651 11,057 11,400 43,192 12,363 12,638 12,391 37,391
AMORTIZATION
MINORITY
INTEREST, NET (6 ) (7 ) 37 (2 ) 22 (5 ) (10 ) 36 21
OF INCOME TAX
DISCONTINUED
OPERATIONS, (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300 985 20,846 22,131
NET OF TAX
BENEFIT
EBITDA $ $ $ $ $ $ $ $ $
(NON-GAAP 60,240 52,912 71,016 68,049 252,217 37,988 26,157 22,756 86,901
MEASURE)
IMPAIRMENT - - - - - 26,553 - 4,768 31,321
CHARGES
RESTRUCTURING 5,521 4,952 - - 10,473 674 3,039 10,749 14,462
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 38,273 132,684
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 operating profit as an indicator of
(2) 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 28, 2009