Actuant Reports Third Quarter Results
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced sales and earnings for its third quarter ended May 31, 2009.
Highlights
-- Robust free cash flow generation resulting in net debt reduction of
nearly $65 million in the quarter.
-- Secured amendment to $515 million bank credit agreement providing
additional flexibility with respect to financial covenants, while
maintaining the size and maturity of the facility.
-- Solid execution on restructuring initiatives including facility
consolidations and headcount reductions.
-- Sequential operating margin improvement (excluding restructuring and
impairment charges) across all four business segments from the second
quarter of fiscal 2009.
-- Continued core sales growth in the Energy segment with its maintenance
oriented products and services.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "While the third quarter proved to be more challenging than we anticipated, I am pleased with the response of our leadership team and employees in delivering strong cash flow and executing our aggressive restructuring initiatives. Overall third quarter core sales declined 33% versus last year's comparable quarter, a weakening from the second quarter. We were pleased with the Energy segment's core growth in the quarter. While several of our end markets have begun to experience stabilization in demand, we encountered further weakening in certain later cycle businesses including those in our Industrial segment. Despite the lower sales, our operating margins (excluding restructuring and impairment charges) improved sequentially across all four segments as benefits from cost reduction and restructuring activities were realized. These actions drove a 7% decline in headcount during our third quarter, 21% fiscal year-to-date, and will result in additional position eliminations upon completion. We also had positive results from our focus on ROIC (Return on Invested Capital) and working capital management which helped drive the robust cash flow in the quarter."
Consolidated Results
Sales for the quarter declined 35% to $290 million compared to $445 million in the third quarter of fiscal 2008. Excluding the impact of foreign currency rate changes (-4%) and acquisitions (+2%), core sales declined 33%. The net loss and diluted loss per share in the fiscal 2009 third quarter were $17.6 million and $0.31, respectively, compared to net earnings of $38.6 million and diluted earnings per share ("EPS") of $0.60 in the comparable quarter last year. Results for the third quarter of 2009 include the previously announced $31.7 million pre-tax ($0.39 per diluted share) non-cash asset impairment charge related to the Company's harsh environment electrical product line, as well as restructuring charges of $12.2 million, or $0.12 per diluted share. Third quarter 2008 results include a tax benefit of $2.6 million, or $0.04 per diluted share. Excluding these items, EPS was $0.20 in the third quarter of fiscal 2009 compared to $0.56 in the prior year's quarter. (See attached reconciliation of earnings).
Sales for the nine months ended May 31, 2009 were $970 million, 23% lower than the $1,259 million in the comparable prior year period. Excluding the impact of the stronger US dollar (-4%) and sales from acquired businesses (+4%), year-to-date core sales decreased 23%. The net loss for the nine months ended May 31, 2009 was $2.8 million, or $0.05 per diluted share, compared to net earnings of $88.3 million, or $1.39 per diluted share for the comparable prior year period. Year-to-date fiscal 2009 results include $58.3 million ($0.68 per diluted share) of non-cash asset impairment charges and $16.1 million ($0.17 per diluted share) of restructuring charges. Results for the nine months ended May 31, 2008 include $10.5 million ($0.16 per diluted share) of restructuring charges and a tax benefit of $2.6 million ($0.04 per diluted share). Excluding these items, current year nine month EPS was $0.75, compared to $1.51 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,
2009 2008 2009 2008
Sales $62.8 $101.6 $225.0 $276.3
Operating Profit (1) $15.6 $31.1 $57.7 $82.7
Operating Profit % (1) 24.8 % 30.6 % 25.6 % 29.9 %
(1) Results for the three and nine months ended May 31, 2009 exclude restructuring charges of $1.0 million and $1.5 million, respectively.
Third quarter fiscal 2009 Industrial segment sales decreased 38% to $63 million. Excluding foreign currency rate changes (-4%), Industrial segment core sales were 34% lower than the comparable prior year period and sequentially down from the second quarter. The core sales decline reflected weaker global end market demand across the segment's diverse channels. Third quarter operating profit margin (excluding restructuring costs) declined 580 basis points from the prior year due to the reduced sales volume, unfavorable mix and lower absorption associated with inventory reductions. However, margins (excluding restructuring costs) improved 250 basis points sequentially from the second quarter of fiscal 2009 despite lower sales due to the benefits of headcount reductions and other cost alignment actions. The Industrial segment's headcount was reduced by 7% during the quarter and 22% on a fiscal year-to-date basis.
Energy Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2009 2008 2009 2008
Sales $62.3 $58.4 $195.8 $151.6
Operating Profit (2) $11.8 $12.6 $33.3 $31.7
Operating Profit % (2) 18.9 % 21.6 % 17.0 % 20.9 %
(2) Results for the three and nine months ended May 31, 2009 exclude restructuring charges of $0.3 million.
Fiscal 2009 third quarter Energy segment sales grew 7% to $62 million. Acquisitions contributed 18% to sales while the stronger US dollar reduced sales by 14%. Core sales grew 3% due to higher maintenance activity in the global oil & gas and power generation markets, predominately outside of North America. Operating profit margin (excluding restructuring costs) declined 270 basis points year-over-year reflecting unfavorable acquisition mix which more than offset base business margin expansion. Operating margins (excluding restructuring costs) increased 900 basis points from the second quarter's seasonally weak results.
Electrical Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2009 2008 2009 2008
Sales $85.0 $135.3 $284.8 $411.4
Operating Profit (3) $1.9 $9.0 $7.0 $32.4
Operating Profit % (3) 2.2 % 6.6 % 2.5 % 7.9 %
(3) Results for the three and nine months ended May 31, 2009 exclude a $31.7 million pre-tax non-cash asset impairment charge. In addition, results for the three and nine months ended May 31, 2009 exclude restructuring charges of $7.1 million and $8.5 million, respectively. Results for the nine months ended May 31, 2008 exclude restructuring charges of $10.5 million.
Electrical segment fiscal 2009 third quarter sales declined 37% to $85 million. The stronger US dollar contributed 3% to the sales decline. Core sales decreased 34% reflecting continued weak demand from marine, retail and transformer customers, the impact of SKU reductions in Europe and the previously disclosed loss of certain retail business in North America. Sequentially, the electrical tools and supplies product line improved modestly while sales to OEM boat builders continued to decline. Year-over-year third quarter operating profit margin (excluding restructuring and impairment charges) declined to 2.2% primarily reflecting lower sales and production volumes. Sequentially, operating profit margin (excluding restructuring and impairment charges) improved 180 basis points from the second quarter of fiscal 2009 benefiting from cost reduction activities in the segment. Total headcount declined approximately 9% during the quarter and has been reduced by approximately 25% during the fiscal year.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31,
2009 2008 2009 2008
Sales $80.4 $149.3 $264.5 $420.1
Operating Profit (4) $1.7 $17.1 $8.2 $41.0
Operating Profit % (4) 2.1 % 11.4 % 3.1 % 9.8 %
(4) Results for the three months ended May 31, 2009 exclude restructuring charges of $3.7 million. Results for the nine months ended May 31, 2009 exclude a $26.6 million pre-tax non-cash RV asset impairment charge and $5.3 million of restructuring charges.
Third quarter fiscal 2009 Engineered Solutions segment sales declined 46% (-44% core, -5% currency translation and +3% acquisitions) reflecting sharply lower demand from the Company's vehicle end markets. The segment's rate of change in sales has begun to stabilize and has been consistent for the past five months through May 2009. Third quarter operating margin (excluding restructuring) of 2.1% reflects the significant reduction in sales and lower manufacturing overhead absorption. Compared to the second quarter of fiscal 2009, margins (excluding restructuring) improved 480 basis points due to the benefits of restructuring actions. The segment's headcount was reduced by approximately 7% during the quarter and 27% during the fiscal year.
Corporate
Corporate expenses for the third quarter of fiscal 2009, excluding restructuring charges of approximately $0.2 million, were $4.8 million compared to $8.2 million in last year's comparable quarter primarily due to lower incentive compensation expense, salary and headcount reductions as well as reduced discretionary spending.
Financial Position
Net debt at May 31, 2009 was $594 million (total debt of $607 million less $13 million of cash). The approximate $65 million reduction during the quarter resulted from the Company's strong free cash flow generation which included substantial working capital reductions.
The Company previously announced it had secured an amendment to its $515 million bank credit facility, providing additional flexibility with respect to financial covenants, while maintaining its size and maturity.
Outlook
Arzbaecher continued, "As we move into the fourth quarter, we are encouraged that revenues have begun to stabilize in several of our end markets and that improved consumer confidence, higher oil prices and global stimulus investments could benefit the Actuant businesses. However, we are attempting to be realistic in our expectations that global economic conditions, including higher unemployment and lagging European demand, will constrain growth in the near term. As such, we plan to continue to aggressively execute restructuring and cost reduction actions which we estimate will reduce fourth quarter pre-tax earnings by approximately $5 million. Additionally, we remain focused on reducing inventory, which we expect will continue to negatively impact our profit margins due to lower fixed cost absorption. Given these factors, we are estimating fourth quarter EPS to be in the range of $0.12 to $0.20 (excluding restructuring charges) on sales of $275 - $295 million. Based on this fourth quarter guidance, full year fiscal 2009 sales and EPS are expected to be $1,245-$1,265 million and $0.87-$0.95 (excluding restructuring and impairment charges), respectively. For the year, we expect free cash flow of approximately $125 million. We have and will continue to reduce costs throughout our operations. We believe these actions and our focus on cash flow will position us well to capitalize on the opportunities that we expect will emerge as the business environment begins to improve."
Conference Call Information
An investor conference call is scheduled for 10am CT today, June 17, 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. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to $1.66 billion in fiscal 2008. The Company employs a workforce of approximately 6,200 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)
May 31, August 31,
2009 2008
ASSETS
Current assets
Cash and cash equivalents $ 13,292 $ 122,549
Accounts receivable, net 159,596 226,564
Inventories, net 188,440 215,391
Deferred income taxes 11,451 11,870
Other current assets 13,841 16,092
Total current assets 386,620 592,466
Property, plant and equipment, net 134,020 134,550
Goodwill 712,307 639,862
Other intangible assets, net 353,823 292,359
Other long-term assets 13,780 9,145
Total assets $ 1,600,550 $ 1,668,382
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 174 $ 339
Trade accounts payable 103,010 166,863
Accrued compensation and benefits 30,844 59,023
Income taxes payable 11,551 24,867
Current maturities of long-term debt 5,760 -
Other current liabilities 67,093 60,033
Total current liabilities 218,432 311,125
Long-term debt, less current maturities 601,405 573,818
Deferred income taxes 117,227 99,634
Pension and postretirement benefit accruals 27,676 27,641
Other long-term liabilities 27,860 26,658
Shareholders' equity
Capital stock 11,354 11,200
Additional paid-in capital (313,013 ) (324,898 )
Accumulated other comprehensive (loss) income (23,643 ) 7,149
Stock held in trust (1,768 ) (2,081 )
Deferred compensation liability 1,768 2,081
Retained earnings 933,252 936,055
Total shareholders' equity 607,950 629,506
Total liabilities and shareholders' equity $ 1,600,550 $ 1,668,382
Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31,
2009 2008 2009 2008
Net sales $ 290,401 $ 444,656 $ 970,055 $ 1,259,428
Cost of products sold 194,044 290,684 646,726 830,783
Gross profit 96,357 153,972 323,329 428,645
Selling, administrative and 65,175 88,421 215,389 252,396
engineering expenses
Restructuring charges 11,923 - 15,799 10,473
Impairment charge 31,720 - 58,274 -
Amortization of intangible 5,358 4,023 15,024 10,741
assets
Operating profit (loss) (17,819 ) 61,528 18,843 155,035
Financing costs, net 9,026 9,190 31,164 27,522
Other (income) expense, net 782 201 213 (1,579 )
Earnings (loss) from
operations before income
tax expense and minority (27,627 ) 52,137 (12,534 ) 129,092
interest
Income tax expense (benefit) (10,028 ) 13,465 (9,763 ) 40,767
Minority interest, net of 36 37 21 24
income taxes
Net earnings (loss) $ (17,635 ) $ 38,635 $ (2,792 ) $ 88,301
Earnings (loss) per share
Basic $ (0.31 ) $ 0.69 $ (0.05 ) $ 1.58
Diluted (0.31 ) 0.60 (0.05 ) 1.39
Weighted average common shares
outstanding
Basic 56,252 55,874 56,148 55,766
Diluted 56,252 64,945 56,148 64,770
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,
2009 2008 2009 2008
Operating Activities
Net (loss) earnings $ (17,635 ) $ 38,635 (2,792 ) $ 88,301
Adjustments to reconcile net
earnings
(loss) to net cash provided by
operating
activities:
Depreciation and amortization 12,753 11,434 38,498 32,926
Stock-based compensation 2,953 1,750 6,401 4,890
expense
(Benefit) provision for (9,756 ) 311 (20,116 ) 6,990
deferred income taxes
Impairment charge 31,720 - 58,274 -
Other 1,019 (326 ) 2,070 (541 )
Changes in operating assets and
liabilities, excluding the
effects of
the business acquisitions
Accounts receivable 23,021 (9,796 ) 81,822 (34,851 )
Accounts receivable (2,913 ) 4,714 (13,482 ) 5,045
securitization program
Inventories 26,436 (1,886 ) 36,732 (8,066 )
Prepaid expenses and other (1,292 ) (231 ) 823 1,744
assets
Trade accounts payable (11,438 ) 9,951 (68,023 ) 14,713
Income taxes payable 410 (2,934 ) (7,193 ) (1,278 )
Other accrued liabilities 8,784 12,726 (15,333 ) 15,319
Net cash provided by operating 64,062 64,348 97,681 125,192
activities
Investing Activities
Proceeds from sale of property, 317 2,097 607 13,676
plant and equipment
Capital expenditures (2,511 ) (13,268 ) (15,018 ) (32,502 )
Business acquisitions, net of (50 ) (59,043 ) (235,922 ) (110,109 )
cash acquired
Net cash used in investing (2,244 ) (70,214 ) (250,333 ) (128,935 )
activities
Financing Activities
Net (repayments) borrowings on
revolving
credit facilities and other (72,010 ) 15 96,199 2,155
debt
Proceeds from term loan - - 115,000 -
Principal repayments on term (1,438 ) (7 ) (156,438 ) (1,008 )
loans
Debt issuance and amendment - - (5,333 ) -
costs
Cash dividend - - (2,251 ) (2,221 )
Stock option exercises, related 598 872 3,474 4,210
tax benefits, and other
Net cash (used in) provided by (72,850 ) 880 50,651 3,136
financing activities
Effect of exchange rate changes 1,995 1,153 (7,256 ) 5,006
on cash
Net increase (decrease) in cash (9,037 ) (3,833 ) (109,257 ) 4,399
and cash equivalents
Cash and cash equivalents - 22,329 94,912 122,549 86,680
beginning of period
Cash and cash equivalents - end $ 13,292 $ 91,079 $ 13,292 $ 91,079
of period
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 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 140,293 135,785 135,311 118,575 529,964 108,057 91,788 84,950 284,795
SEGMENT
ENGINEERED
SOLUTIONS 137,761 133,042 149,310 126,968 547,081 107,417 76,678 80,357 264,452
SEGMENT
TOTAL $ $ $ $ $ $ $ $ $
415,143 399,629 444,656 404,515 1,663,943 379,980 299,674 290,401 970,055
% 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 10 % 6 % 1 % -14 % 0 % -23 % -32 % -37 % -31 %
SEGMENT
ENGINEERED
SOLUTIONS 23 % 15 % 10 % -1 % 11 % -22 % -42 % -46 % -37 %
SEGMENT
TOTAL 21 % 17 % 15 % 4 % 14 % -8 % -25 % -35 % -23 %
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 15,651 5,896 11,772 33,319
ELECTRICAL 11,614 11,842 8,986 4,894 37,335 4,740 390 1,863 6,993
SEGMENT
ENGINEERED
SOLUTIONS 13,106 10,844 17,053 12,600 53,603 8,648 (2,103 ) 1,683 8,228
SEGMENT
CORPORATE / (6,415 ) (7,743 ) (8,203 ) (8,549 ) (30,910 ) (3,197 ) (5,013 ) (4,815 ) (13,025 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 56,281 47,700 61,528 56,314 $ 221,822 51,949 15,142 26,100 93,191
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (31,720 ) (58,274 )
CHARGE
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (732 ) (3,144 ) (12,199 ) (16,075 )
CHARGE (1)
TOTAL $ $ $ $ $ 211,349 $ $ $ ) $
50,760 42,748 61,528 56,314 24,664 11,998 (17,819 18,843
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 % 21.2 % 9.9 % 18.9 % 17.0 %
ELECTRICAL 8.3 % 8.7 % 6.6 % 4.1 % 7.0 % 4.4 % 0.4 % 2.2 % 2.5 %
SEGMENT
ENGINEERED
SOLUTIONS 9.5 % 8.2 % 11.4 % 9.9 % 9.8 % 8.1 % -2.7 % 2.1 % 3.1 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 13.6 % 11.9 % 13.8 % 13.9 % 13.3 % 13.7 % 5.1 % 9.0 % 9.6 %
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 21,675 11,493 15,080 48,248
ELECTRICAL 14,495 14,340 11,553 7,186 47,573 6,195 1,666 4,300 12,161
SEGMENT
ENGINEERED
SOLUTIONS 17,422 15,194 20,811 17,488 70,915 13,330 2,016 4,720 20,066
SEGMENT
CORPORATE / (6,632 ) (7,522 ) (7,991 ) (8,163 ) (30,308 ) (3,110 ) (4,058 ) (4,237 ) (11,405 )
GENERAL
TOTAL -
EXCLUDING $ $ $ $ $ $ $ $
IMPAIRMENT / 67,855 59,398 72,761 69,509 $ 269,522 65,229 28,175 38,071 131,475
RESTRUCTURING
CHARGES
IMPAIRMENT - - - - - (26,553 ) - (31,720 ) (58,274 )
CHARGE
RESTRUCTURING (5,521 ) (4,952 ) - - (10,473 ) (732 ) (3,144 ) (12,199 ) (16,075 )
CHARGES (1)
TOTAL $ $ $ $ $ 259,049 $ $ $ ) $
62,334 54,446 72,761 69,509 37,944 25,031 (5,848 57,127
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 10.3 % 10.6 % 8.5 % 6.1 % 9.0 % 5.7 % 1.8 % 5.1 % 4.3 %
SEGMENT
ENGINEERED
SOLUTIONS 12.6 % 11.4 % 13.9 % 13.8 % 13.0 % 12.4 % 2.6 % 5.9 % 7.6 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 16.3 % 14.9 % 16.4 % 17.2 % 16.2 % 17.2 % 9.4 % 13.1 % 13.6 %
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 Statement of Earnings.
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
CHARGE,
IMPAIRMENT
CHARGE AND TAX
ADJUSTMENTS /
CREDITS (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 - - 10,250 506 2,156 7,973 10,635
OF TAX
BENEFIT
IMPAIRMENT
CHARGE, NET - - - - - 16,463 - 21,964 38,427
OF TAX
BENEFIT
TAX
ADJUSTMENTS / - - (2,625) - (2,625) - - - -
CREDITS
TOTAL $ $ $ $ $ $ $
(NON-GAAP 32,948 26,968 36,010 34,243 130,169 28,567 $ 5,400 $ 12,302 46,269
MEASURE)
DILUTED
EARNINGS (LOSS)
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGE,
IMPAIRMENT
CHARGE AND TAX
ADJUSTMENTS /
CREDITS (1)(3)
NET EARNINGS $
(LOSS) (GAAP $ 0.43 $ 0.35 $ 0.60 $ 0.54 $ 1.93 $ 0.19 $ 0.06 $ (0.31) (0.05)
MEASURE)
RESTRUCTURING
CHARGES, NET 0.09 0.07 - - 0.16 0.01 0.03 0.12 0.17
OF TAX
BENEFIT
IMPAIRMENT
CHARGE, NET - - - - - 0.26 - 0.39 0.68
OF TAX
BENEFIT
TAX
ADJUSTMENTS / - - (0.04) - (0.04) - - - -
CREDITS
TOTAL
(NON-GAAP $ 0.52 $ 0.43 $ 0.56 $ 0.54 $ 2.05 $ 0.46 $ 0.09 $ 0.20 $ 0.75
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 9,026 31,164
COSTS, NET
INCOME TAX 15,149 12,154 13,465 14,598 55,365 1,370 (1,105) (10,028) (9,763)
EXPENSE
DEPRECIATION
& 10,464 11,028 11,434 11,783 44,709 12,746 12,998 12,753 38,498
AMORTIZATION
MINORITY
INTEREST, NET (6) (7) 37 (2) 22 (5) (10) 36 21
OF INCOME TAX
EBITDA $ $ $ $ $ $ $ $ $
(NON-GAAP 62,334 54,446 72,761 69,509 259,049 37,944 25,031 (5,848) 57,127
MEASURE)
IMPAIRMENT - - - - - 26,553 - 31,720 58,274
CHARGE
RESTRUCTURING 5,521 4,952 - - 10,473 732 3,144 12,199 16,075
CHARGES
EBITDA
(NON-GAAP
MEASURE) - $ $ $ $ $ $ $ $ 38,071 $
EXCLUDING 67,855 59,398 72,761 69,509 269,522 65,229 28,175 131,475
IMPAIRMENT
AND
RESTRUCTURING
CHARGES
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
(1) 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.
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
(2) 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.
Due to the net loss for the third quarter of fiscal 2009 and year-to-date
fiscal 2009, the basic weighted average common shares are used to calculate
both basic and diluted loss per share as to avoid anti-dilution. Per share
results for net earnings (loss) (GAAP measure) and the impairment charge
were calculated using 56,252 and 56,148 shares outstanding, respectively.
The basic weighted average shares outstanding exclude the effect of the 2%
Convertible Notes and equity-based compensation plans. When excluding the
(3) impairment charges from net earnings (loss), the result is net earnings
(and not a net loss) which requires a diluted basis for calculated EPS. For
this reason, the per share results for restructuring charges and total
diluted earnings (non-GAAP measure) were calculated using 64,051 and 64,234
shares outstanding for the third quarter of fiscal 2009 and year-to-date
fiscal 2009, respectively, which gives effect to the 2% Convertible Notes
and equity-based compensation plans. Because of the difference in shares
outstanding being used, the per share results do not add for the third
quarter of fiscal 2009 and year-to-date fiscal 2009.
Source: Actuant Corporation
Released June 17, 2009