Actuant Reports Improved Third Quarter Results; Raises Fiscal 2010 Guidance and Provides Fiscal 2011 Outlook
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2010.
Highlights
-- 45% year-over-year increase in diluted earnings per share from
continuing operations ("EPS") to $0.32 (excluding restructuring costs
and impairment charges - see attached reconciliation of earnings.)
-- Core revenue growth (total sales less the impact of acquisitions,
divestitures and foreign currency rate changes) of 16%. Significant
increase in Industrial and Engineered Solutions segment core sales
growth of 20% and 43%, respectively.
-- Strong operating profit expansion with highest margin performance of the
past six quarters.
-- Robust cash flow from operations totaling $52 million.
-- Completed four tuck-in acquisitions during the past 90 days (including
Selantic AS after quarter end) deploying approximately $44 million on
businesses complementing our Industrial and Energy segments.
-- Introduced fiscal 2011 EPS guidance range of $1.20-1.35.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "We were pleased with our third quarter results, performing better than anticipated with broad-based strength in many of our markets. Revenue growth of 17% was above the high-end of our expectations in the face of headwinds from a stronger than planned US dollar. The sales increase, coupled with solid margin improvement, drove the EPS growth. Cash flow also exceeded expectations due to strong earnings and effective working capital management. We are pleased to have deployed this cash into four tuck-in acquisitions which provide strategic growth benefits to our Industrial and Energy businesses. Overall, our favorable third quarter financial performance highlights improved market demand and strong execution by our employees."
Consolidated Results
Consolidated sales for the third quarter were $335 million, 17% higher than the comparable prior year quarter. Core sales increased 16% with foreign currency translation adding an additional 1% to growth in the quarter while the net impact of acquisitions and divestitures was not significant. Earnings and EPS from continuing operations in the fiscal 2010 third quarter were $21.8 million and $0.30, respectively, compared to $3.2 million and $0.06 in the comparable prior year quarter. Results for the third quarter of fiscal 2010 reflected restructuring costs (including those reported in cost of products sold) of $2.3 million, or $0.02 per diluted share. Fiscal 2009 third quarter results included restructuring costs of $10.7 million, or $0.11 per diluted share as well as non-cash impairment charges of $4.8 million, or $0.05 per diluted share. Excluding these items, EPS from continuing operations was $0.32 in the third quarter of fiscal 2010, 45% higher than the $0.22 in the prior year. (See attached reconciliation of earnings.)
Sales for the nine months ended May 31, 2010 were $934 million, 2% lower than the $950 million in the comparable prior year period. Excluding the impact of the weaker US dollar (+2%) year-to-date core sales decreased 4%. Earnings and EPS from continuing operations for the nine months ended May 31, 2010 were $40.8 million, or $0.57 per diluted share, compared to $19.3 million, or $0.33 per diluted share for the comparable prior year period. Year-to-date fiscal 2010 results include total restructuring costs of $15.2 million, or $0.15 per diluted share. Results for the nine months ended May 31, 2009 include $31.3 million ($0.29 per diluted share) of non-cash asset impairment charges and $14.5 million ($0.15 per diluted share) of restructuring costs. Excluding these items, current year nine month diluted EPS from continuing operations was $0.72, compared to $0.78 for the comparable prior year period. (See attached reconciliation of earnings.)
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2010 2009 2010 2009
Sales $79.7 $62.8 $214.3 $225.0
Operating Profit $20.4 $14.6 $45.0 $56.2
Adjusted Operating Profit $20.7 $15.6 $50.4 $57.7
(1)
Adjusted Operating Profit 26.0 % 24.8 % 23.5 % 25.6 %
%(1)
(1) Excludes restructuring costs of $0.3 million and $5.4 million for the three and nine months ended May 31, 2010 and $1.0 million and $1.5 million for the three and nine months ended May 31, 2009, respectively.
Third quarter fiscal 2010 Industrial segment sales were $80 million, 27% higher than the prior year. Excluding foreign currency rate changes (+2%), and the benefit of the Integrated Solutions (IS) acquisitions (+5%), Industrial segment core sales increased 20% due to higher demand across most regions and end markets. This 20% year-over-year core sales rate of change represents substantial improvement from the 7% decline in the second quarter of fiscal 2010. Operating profit margins (excluding restructuring costs) improved 120 basis points from the prior year despite unfavorable mix related to the recent IS acquisitions, due to the higher volumes as well as the benefit of restructuring actions.
Energy Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2010 2009 2010 2009
Sales $56.6 $62.3 $174.6 $195.8
Operating Profit $7.2 $11.5 $22.5 $33.0
Adjusted Operating Profit $7.3 $11.8 $24.4 $33.3
(2)
Adjusted Operating Profit 12.9 % 18.9 % 14.0 % 17.0 %
%(2)
(2) Excludes restructuring costs of $0.1 million and $1.9 million for the three and nine months ended May 31, 2010 and $0.3 million for both the three and nine months ended May 31, 2009, respectively.
Fiscal 2010 third quarter year-over-year Energy segment sales decreased 9% to $57 million. Excluding the 2% FX impact, core sales declined 11% due primarily to weakness in refinery maintenance activity, seismic exploration and large capital project based revenue. Partially offsetting this decline, emerging markets, alternative energy and adjacent markets (such as medical and defense) saw improving sales levels. Third quarter operating profit margin (excluding restructuring costs) was 12.9%, below the prior year due to the lower volumes and unfavorable mix, however, it improved 250 basis points sequentially.
Electrical Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2010 2009 2010 2009
Sales $86.5 $83.8 $254.8 $276.4
Operating Profit (Loss) $5.3 ($7.3 ) $10.4 ($0.2 )
Adjusted Operating Profit $6.7 $3.1 $14.9 $11.4
(3)
Adjusted Operating Profit 7.7 % 3.7 % 5.9 % 4.1 %
%(3)
(3) Excludes restructuring costs of $1.4 million and $4.5 million for the three and nine months ended May 31, 2010, respectively. Excludes restructuring costs of $5.6 million and $6.8 million for the three and nine months ended May 31, 2009, respectively, as well as $4.8 million of non-cash asset impairment charges.
Electrical segment fiscal 2010 third quarter sales were $87 million, 3% higher than the comparable prior year quarter. Excluding product line divestitures (-5%), core sales increased 8% reflecting continued improvement in the North American marine and retail DIY markets. Weakness persisted in the electric utility and commercial construction markets. Third quarter operating profit margin (excluding restructuring costs) increased 400 basis points from the prior year, and 170 basis points sequentially, reflecting higher volumes and restructuring driven cost savings.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2010 2009 2010 2009
Sales $111.7 $76.3 $290.3 $252.6
Operating Profit (Loss) $13.2 $(2.7 ) $22.2 $(25.8 )
Adjusted Operating Profit $13.6 $1.0 $25.0 $6.1
(4)
Adjusted Operating Profit 12.1 % 1.3 % 8.6 % 2.4 %
%(4)
(4) Excludes restructuring costs of $0.4 million and $2.8 million for the three and nine months ended May 31, 2010 and $3.7 million and $5.3 million for the three and nine months ended May 31, 2009. The nine months ended May 31, 2009 also excludes $26.6 million of impairment charges.
Third quarter fiscal 2010 Engineered Solutions segment sales increased a robust 46% from the prior year to $112 million, benefiting from significantly higher shipments to global truck, automotive and specialty vehicle customers. Excluding the impact of acquisitions (+3%), the year-over-year core sales rate of change improved sequentially from 16% in the second quarter of fiscal 2010 to 43% in the third quarter with significantly higher European truck production, model launches within automotive as well as improving trends in the North American truck and construction equipment markets. Third quarter operating margins (excluding restructuring costs) increased 1080 basis points compared to the prior year and 540 basis points sequentially due to the higher volumes and improved cost structure.
Corporate
Corporate expenses for the third quarter of fiscal 2010, excluding restructuring charges of $0.1 million, were $7.4 million, an increase of approximately $2.5 million from last year. The increase is due to approximately $0.7 million of acquisition related costs, growth initiative expenditures and higher annual incentive compensation expense.
Financial Position
Net debt at May 31, 2010 was $359 million (total debt of $381 million less $22 million of cash). The Company deployed approximately $27 million during the quarter on acquisitions yet still reduced net debt by approximately $19 million as a result of strong cash flow. Following quarter end, the Company deployed $17 million of capital to fund the Selantic acquisition, leaving approximately $370 million of unused revolver capacity.
Outlook
The Company updated its fiscal year 2010 outlook to incorporate its actual third quarter financial results, the current foreign currency environment and the impact of recently completed acquisitions. Full year fiscal 2010 EPS is expected to be in the range of $0.95-1.00 (excluding restructuring charges) on sales of $1.24-1.25 billion. Fourth quarter EPS is projected to be in the $0.24-0.29 range on sales of $305-315 million. Free cash flow guidance for the fiscal year has been increased to $120-125 million, up from the previous $110 million estimate.
Arzbaecher continued, "Through the first nine months of fiscal 2010, Actuant has delivered stronger than originally expected results and we intend to continue this momentum into the fourth quarter and fiscal 2011, despite modest global economic uncertainty and foreign currency translation headwind. Moving forward, we remain focused on growing our business, cash flow generation and maintaining a solid financial position. Excluding future acquisitions, we are projecting fiscal 2011 EPS growth of approximately 25%-40% above the mid-point of our fiscal 2010 EPS guidance range, to $1.20-1.35, on sales of approximately $1.31-1.36 billion. Projected free cash flow for fiscal 2011 is $120-130 million. We continue to pursue acquisition opportunities which, when executed, will be incremental to guidance. We believe that the combination of an improving economy, our strong portfolio of businesses, lower cost structure, and focus on growth will benefit Actuant shareholders.
Conference Call Information
An investor conference call is scheduled for 10 am CT today, June 17, 2010. 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 Corporation
Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy related industries and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Butler, 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,
2010 2009
ASSETS
Current assets
Cash and cash equivalents $ 22,281 $ 11,385
Accounts receivable, net 214,780 155,520
Inventories, net 161,434 160,656
Deferred income taxes 23,220 20,855
Other current assets 15,483 15,246
Total current assets 437,198 363,662
Property, plant and equipment, net 111,439 129,118
Goodwill 704,200 711,522
Other intangible assets, net 333,201 350,249
Other long-term assets 10,061 13,880
Total assets $ 1,596,099 $ 1,568,431
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 579 $ 4,964
Trade accounts payable 131,023 108,333
Accrued compensation and benefits 43,832 30,079
Income taxes payable 33,444 20,578
Other current liabilities 84,971 71,140
Total current liabilities 293,849 235,094
Long-term debt, less current maturities 380,538 400,135
Deferred income taxes 115,241 117,335
Pension and postretirement benefit accruals 34,835 37,662
Other long-term liabilities 27,960 30,835
Shareholders' equity
Capital stock 13,587 13,543
Additional paid-in capital (178,868 ) (188,644 )
Accumulated other comprehensive loss (78,954 ) (24,599 )
Stock held in trust (1,930 ) (1,766 )
Deferred compensation liability 1,930 1,766
Retained earnings 987,911 947,070
Total shareholders' equity 743,676 747,370
Total liabilities and shareholders' equity $ 1,596,099 $ 1,568,431
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
2010 2009 2010 2009
Net sales $ 334,569 $ 285,154 $ 933,978 $ 949,742
Cost of products sold 212,884 189,793 603,973 629,648
Gross profit 121,685 95,361 330,005 320,094
Selling, administrative and 75,553 63,841 218,400 210,518
engineering expenses
Restructuring charges 2,201 10,473 14,221 14,186
Impairment charges - 4,768 - 31,321
Amortization of intangible 5,305 5,132 16,134 14,346
assets
Operating profit 38,626 11,147 81,250 49,723
Financing costs, net 7,780 9,026 24,115 31,164
Other expense, net 700 817 923 234
Earnings from continuing
operations before income
tax expense (benefit) 30,146 1,304 56,212 18,325
Income tax expense (benefit) 8,311 (1,907 ) 15,366 (1,014 )
Earnings from continuing 21,835 3,211 40,846 19,339
operations
Loss from discontinued - (20,846 ) - (22,131 )
operations, net of income taxes
Net earnings (loss) $ 21,835 $ (17,635 ) $ 40,846 $ (2,792 )
Earnings from continuing
operations per share
Basic $ 0.32 $ 0.06 $ 0.60 $ 0.34
Diluted 0.30 0.06 0.57 0.33
Earnings (loss) per share
Basic $ 0.32 $ (0.31 ) $ 0.60 $ (0.05 )
Diluted 0.30 (0.27 ) 0.57 (0.01 )
Weighted average common shares
outstanding
Basic 67,642 56,252 67,593 56,148
Diluted 74,389 64,051 74,156 64,234
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,
2010 2009 2010 2009
Operating Activities
Net earnings (loss) $ 21,835 $ (17,635 ) $ 40,846 $ (2,792 )
Adjustments to reconcile net
earnings (loss)
to net cash provided by
operating activities:
Depreciation and amortization 12,064 12,753 39,079 38,498
Stock-based compensation 2,146 2,953 6,044 6,401
expense
Provision (benefit) for 155 (9,756 ) 682 (20,116 )
deferred income taxes
Impairment charges - 31,721 - 58,274
Other 710 1,015 1,923 2,070
Changes in operating assets and
liabilities, excluding the
effects of
acquisitions and divestitures:
Accounts receivable (16,592 ) 20,108 (28,555 ) 68,340
Expiration of accounts
receivable
securitization program - - (37,106 ) -
Inventories 1,460 26,436 (3,899 ) 36,732
Prepaid expenses and other 84 (1,292 ) 2,372 823
assets
Trade accounts payable 12,591 (11,438 ) 24,680 (68,023 )
Income taxes payable 5,701 410 9,235 (7,193 )
Accrued compensation and 8,701 (4,639 ) 16,994 (25,364 )
benefits
Other accrued liabilities 2,835 13,426 (2,721 ) 10,031
Net cash provided by operating 51,690 64,062 69,574 97,681
activities
Investing Activities
Proceeds from sale of property, 390 317 1,073 607
plant and equipment
Proceeds from product line - - 7,516 -
divestiture
Capital expenditures (6,437 ) (2,511 ) (13,213 ) (15,018 )
Business acquisitions, net of (27,248 ) (50 ) (29,248 ) (235,922 )
cash acquired
Net cash used in investing (33,295 ) (2,244 ) (33,872 ) (250,333 )
activities
Financing Activities
Net borrowings (repayments) on
revolving
credit facilities and
short-term borrowings (11,579 ) (72,010 ) 182 96,199
Principal repayments on term - (1,438 ) - (156,438 )
loans
Proceeds from issuance of term - - - 115,000
loan
Open market repurchases of 2% - - (22,894 ) -
Convertible Notes
Debt issuance costs - - - (5,333 )
Stock option exercises, related 682 598 1,692 3,474
tax benefits and other
Cash dividend - - (2,702 ) (2,251 )
Net cash (used in) provided by (10,897 ) (72,850 ) (23,722 ) 50,651
financing activities
Effect of exchange rate changes (927 ) 1,995 (1,084 ) (7,256 )
on cash
Net increase (decrease) in cash 6,571 (9,037 ) 10,896 (109,257 )
and cash equivalents
Cash and cash equivalents - 15,710 22,329 11,385 122,549
beginning of period
Cash and cash equivalents - end $ 22,281 $ 13,292 $ 22,281 $ 13,292
of period
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2009 FISCAL 2010
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
SALES
INDUSTRIAL $ $ $ $ $ 286,851 $ $ $ $
SEGMENT 90,524 71,682 62,843 61,802 65,308 69,235 79,744 214,287
ENERGY SEGMENT 73,982 59,526 62,251 63,731 259,490 64,065 53,862 56,645 174,572
ELECTRICAL 102,898 89,719 83,752 87,792 364,161 86,618 81,705 86,468 254,791
SEGMENT
ENGINEERED
SOLUTIONS 103,385 72,872 76,308 76,731 329,296 89,202 89,414 111,712 290,328
SEGMENT
TOTAL $ $ $ $ $ $ $ $ $
370,789 293,799 285,154 290,056 1,239,798 305,193 294,216 334,569 933,978
% SALES GROWTH
INDUSTRIAL 4 % -18 % -38 % -37 % -23 % -28 % -3 % 27 % -5 %
SEGMENT
ENERGY SEGMENT 49 % 37 % 7 % 5 % 22 % -13 % -10 % -9 % -11 %
ELECTRICAL -21 % -29 % -34 % -22 % -27 % -16 % -9 % 3 % -8 %
SEGMENT
ENGINEERED
SOLUTIONS -23 % -44 % -47 % -37 % -38 % -14 % 23 % 46 % 15 %
SEGMENT
TOTAL -8 % -24 % -34 % -26 % -23 % -18 % 0 % 17 % -2 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ $ $ $ $ 71,368 $ $ $ $
SEGMENT 26,107 15,972 15,597 13,692 13,854 15,847 20,703 50,404
ENERGY SEGMENT 15,647 5,895 11,772 11,801 45,115 11,502 5,615 7,326 24,443
ELECTRICAL 5,896 2,404 3,119 4,213 15,632 3,357 4,902 6,686 14,945
SEGMENT
ENGINEERED
SOLUTIONS 7,865 (2,735 ) 991 342 6,463 5,481 6,007 13,554 25,042
SEGMENT
CORPORATE / (3,197 ) (5,013 ) (4,815 ) (5,042 ) (18,066 ) (5,471 ) (5,561 ) (7,351 ) (18,384 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 52,318 16,523 26,664 25,006 $ 120,512 28,723 26,810 40,918 96,450
RESTRUCTURING
CHARGES
IMPAIRMENT (26,553 ) - (4,768 ) - (31,321 ) - - - -
CHARGES
RESTRUCTURING (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 ) (3,628 ) (9,280 ) (2,292 ) (15,200 )
CHARGES (1)
TOTAL $ $ $ $ $ 65,452 $ $ $ $
25,091 13,484 11,147 15,729 25,095 17,530 38,626 81,250
OPERATING
PROFIT %
INDUSTRIAL 28.8 % 22.3 % 24.8 % 22.2 % 24.9 % 21.2 % 22.9 % 26.0 % 23.5 %
SEGMENT
ENERGY SEGMENT 21.1 % 9.9 % 18.9 % 18.5 % 17.4 % 18.0 % 10.4 % 12.9 % 14.0 %
ELECTRICAL 5.7 % 2.7 % 3.7 % 4.8 % 4.3 % 3.9 % 6.0 % 7.7 % 5.9 %
SEGMENT
ENGINEERED
SOLUTIONS 7.6 % -3.8 % 1.3 % 0.4 % 2.0 % 6.1 % 6.7 % 12.1 % 8.6 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 14.1 % 5.6 % 9.4 % 8.6 % 9.7 % 9.4 % 9.1 % 12.2 % 10.3 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ $ $ $ $ 77,727 $ $ $ $
SEGMENT 27,139 17,058 18,208 15,322 15,633 16,639 21,632 53,904
ENERGY SEGMENT 21,671 11,492 15,080 16,235 64,478 15,493 10,072 11,353 36,918
ELECTRICAL 7,103 3,440 5,307 6,388 22,238 5,270 6,429 7,839 19,538
SEGMENT
ENGINEERED
SOLUTIONS 12,417 1,274 3,879 4,953 22,524 8,981 10,168 17,373 36,522
SEGMENT
CORPORATE / (3,110 ) (4,058 ) (4,237 ) (4,196 ) (15,601 ) (4,771 ) (4,339 ) (6,542 ) (15,652 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 65,220 29,206 38,237 38,702 $ 171,366 40,606 38,969 51,655 131,229
RESTRUCTURING
CHARGES
IMPAIRMENT (26,553 ) - (4,768 ) - (31,321 ) - - - -
CHARGES
RESTRUCTURING (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 ) (3,628 ) (9,280 ) (2,292 ) (15,200 )
CHARGES (1)
TOTAL $ $ $ $ $ 116,306 $ $ $ $
37,993 26,167 22,720 29,425 36,978 29,689 49,363 116,029
EBITDA %
INDUSTRIAL 30.0 % 23.8 % 29.0 % 24.8 % 27.1 % 23.9 % 24.0 % 27.1 % 25.2 %
SEGMENT
ENERGY SEGMENT 29.3 % 19.3 % 24.2 % 25.5 % 24.8 % 24.2 % 18.7 % 20.0 % 21.1 %
ELECTRICAL 6.9 % 3.8 % 6.3 % 7.3 % 6.1 % 6.1 % 7.9 % 9.1 % 7.7 %
SEGMENT
ENGINEERED
SOLUTIONS 12.0 % 1.7 % 5.1 % 6.5 % 6.8 % 10.1 % 11.4 % 15.6 % 12.6 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 17.6 % 9.9 % 13.4 % 13.3 % 13.8 % 13.3 % 13.2 % 15.4 % 14.1 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
ACTUANT CORPORATION
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FISCAL 2009 FISCAL 2010
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
OPERATING
PROFIT (LOSS),
EXCLUDING
RESTRUCTURING
CHARGES AND
IMPAIRMENT
CHARGES
INDUSTRIAL
SEGMENT
OPERATING $ $ $ $ $ $ $ $ $
PROFIT (GAAP 26,007 15,545 14,633 11,266 67,451 13,676 10,937 20,374 44,987
MEASURE)
RESTRUCTURING 100 427 964 2,426 3,917 178 4,910 329 5,417
CHARGES
ADJUSTED
OPERATING $ $ $ $ $ $ $ $ $
PROFIT 26,107 15,972 15,597 13,692 71,368 13,854 15,847 20,703 50,404
(NON-GAAP
MEASURE)
ENERGY SEGMENT
OPERATING $ $ $ $ $ $ $ $ $
PROFIT (GAAP 15,533 5,976 11,508 11,075 44,092 11,359 3,922 7,203 22,484
MEASURE)
RESTRUCTURING 114 (81 ) 264 726 1,023 143 1,693 123 1,959
CHARGES
ADJUSTED
OPERATING $ $ $ $ $ $ $ $ $
PROFIT 15,647 5,895 11,772 11,801 45,115 11,502 5,615 7,326 24,443
(NON-GAAP
MEASURE)
ELECTRICAL
SEGMENT
OPERATING $ $ $ $ $
PROFIT (LOSS) $ 5,861 1,225 (7,285 ) $ 1,250 $ 1,051 $ 673 4,424 5,308 10,405
(GAAP MEASURE)
RESTRUCTURING 35 1,179 5,636 2,963 9,813 2,684 478 1,378 4,540
CHARGES
IMPAIRMENT - - 4,768 - 4,768 - - - -
CHARGE
ADJUSTED
OPERATING $ $ $ $ $ $
PROFIT $ 5,896 2,404 $ 3,119 $ 4,213 15,632 3,357 4,902 6,686 14,945
(NON-GAAP
MEASURE)
ENGINEERED
SOLUTIONS
OPERATING $ $ $ $ $ $ $ $ $
PROFIT (LOSS) (19,113 ) (3,985 ) (2,670 ) (2,664 ) (28,432 ) 5,053 3,995 13,170 22,218
(GAAP MEASURE)
RESTRUCTURING 425 1,250 3,661 3,006 8,342 428 2,012 384 2,824
CHARGES
IMPAIRMENT 26,553 - - - 26,553 - - - -
CHARGE
ADJUSTED
OPERATING $ $ $ $ $
PROFIT (LOSS) $ 7,865 (2,735 ) $ 991 $ 342 $ 6,463 5,481 6,007 13,554 25,042
(NON-GAAP
MEASURE)
CORPORATE
OPERATING LOSS $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ )
(GAAP MEASURE) (3,197 (5,277 (5,039 (5,198 (18,710 (5,666 (5,748 (7,429 (18,844
RESTRUCTURING - 264 224 156 644 195 187 78 460
CHARGES
ADJUSTED
OPERATING LOSS $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ )
(NON-GAAP (3,197 (5,013 (4,815 (5,042 (18,066 (5,471 (5,561 (7,351 (18,384
MEASURE)
NET EARNINGS
(LOSS),
EXCLUDING
RESTRUCTURING
CHARGES,
IMPAIRMENT
CHARGES, DEBT
EXTINGUISHMENT
CHARGES AND
DISCONTINUED
OPERATIONS (2)
NET EARNINGS $ $ $ $ $ $ $ $ $
(LOSS) (GAAP 11,598 3,244 (17,635 ) 16,515 13,723 11,854 7,157 21,835 40,846
MEASURE)
RESTRUCTURING
CHARGES, NET 481 2,028 7,173 6,223 15,905 2,601 6,566 1,622 10,789
OF TAX BENEFIT
IMPAIRMENT
CHARGES, NET 16,463 - 2,981 - 19,444 - - - -
OF TAX BENEFIT
DEBT
EXTINGUISHMENT (236 ) - - 1,303 1,067 - - - -
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, 300 985 20,846 (12,003 ) 10,128 - - - -
NET OF TAX
BENEFIT
TOTAL $ $ $ $ $ $ $ $ $
(NON-GAAP 28,606 6,257 13,365 12,038 60,267 14,455 13,723 23,457 51,635
MEASURE)
DILUTED
EARNINGS
(LOSS) PER
SHARE,
EXCLUDING
RESTRUCTURING
CHARGES,
IMPAIRMENT
CHARGES, DEBT
EXTINGUISHMENT
CHARGES AND
DISCONTINUED
OPERATIONS (2)
NET EARNINGS
(LOSS) (GAAP $ 0.19 $ 0.06 $ (0.27 ) $ 0.24 $ 0.24 $ 0.17 $ 0.10 $ 0.30 $ 0.57
MEASURE)
RESTRUCTURING
CHARGES, NET 0.01 0.03 0.11 0.09 0.24 0.03 0.09 0.02 0.15
OF TAX BENEFIT
IMPAIRMENT
CHARGES, NET 0.26 - 0.05 - 0.29 - - - -
OF TAX BENEFIT
DEBT
EXTINGUISHMENT (0.00 ) - - 0.02 0.02 - - - -
CHARGES, NET
OF TAX BENEFIT
DISCONTINUED
OPERATIONS, - 0.02 0.33 (0.17 ) 0.15 - - - -
NET OF TAX
BENEFIT
TOTAL
(NON-GAAP $ 0.45 $ 0.11 $ 0.22 $ 0.18 $ 0.95 $ 0.20 $ 0.19 $ 0.32 $ 0.72
MEASURE)
EBITDA (3)
NET EARNINGS $ $ $ $ $ $ $ $ $
(LOSS) (GAAP 11,598 3,244 (17,635 ) 16,515 13,723 11,854 7,157 21,835 40,846
MEASURE)
FINANCING 12,235 9,904 9,025 10,685 41,849 8,538 7,798 7,780 24,116
COSTS, NET
INCOME TAX 1,497 (604 ) (1,907 ) 540 (474 ) 4,399 2,656 8,311 15,366
EXPENSE
DEPRECIATION & 12,363 12,638 12,391 13,688 51,080 12,187 12,078 11,437 35,702
AMORTIZATION
DISCONTINUED
OPERATIONS, 300 985 20,846 (12,003 ) 10,128 - - - -
NET OF TAX
BENEFIT
EBITDA $ $ $ $ $ $ $ $ $
(NON-GAAP 37,993 26,167 22,720 29,425 116,306 36,978 29,689 49,363 116,029
MEASURE)
IMPAIRMENT 26,553 - 4,768 - 31,321 - - - -
CHARGES
RESTRUCTURING 674 3,039 10,749 9,277 23,739 3,628 9,280 2,292 15,200
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING $ $ $ $ $ $ $ $ $
DISCONTINUED 65,220 29,206 38,237 38,702 171,366 40,606 38,969 51,655 131,229
OPERATIONS,
IMPAIRMENT AND
RESTRUCTURING
CHARGES
ACTUANT CORPORATION
FOOTNOTES FOR SUPPLEMENTAL UNAUDITED DATA AND RECONCILIATION OF GAAP MEASURES TO
NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FOOTNOTES
NOTE: The total of the individual quarters may not equal the annual total due to
rounding.
(1) A summary of restructuring charges included in cost of products sold is as
follows:
FISCAL 2009 FISCAL 2010
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Restructuring -
cost of products $ - $ - $ 276 $ 1,037 $ 1,313 $ 54 $ 833 $ 91 $ - $ 979
sold
Net earnings and diluted earnings per share excluding restructuring
charges, impairment charges, debt extinguishment charges and discontinued
operations represent net earnings and diluted earnings per share per the
Condensed Consolidated Statements of Earnings net of charges or credits
(2) 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 may not equal due to rounding.
EBITDA represents net earnings before financing costs, net, income tax
expense, depreciation & amortization 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
Earnings data. EBITDA should not be considered as an alternative to net
earnings or operating profit as an indicator of the Company's operating
(3) 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 June 17, 2010