Actuant Reports Record 2007 Results, Raises 2008 Guidance
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE: ATU) today announced record sales, earnings and cash flow for its fiscal year ended August 31, 2007.
Highlights
-- Fourth quarter revenues increased 20% year-over-year to $390
million. Full-year 2007 revenues were a record $1.46 billion,
a 21% increase over the prior year. Core sales (total sales
less the impact of foreign currency rate changes and business
acquisitions) grew 6% for both the fourth quarter and the full
year.
-- 25% year-over-year increase in diluted earnings per share
("EPS"), excluding special items, to $0.99 for the fourth
quarter. Record full-year EPS of $3.47, excluding special
items, an increase of 20% over the comparable 2006 figure.
-- Record full-year 2007 cash generated from operations of
approximately $177 million, representing a 45% increase over
the prior year.
-- Sequential quarterly and year-over-year EBITDA margin
expansion.
-- Completed five tuck-in acquisitions during fiscal 2007,
including BH Electronics in the fourth quarter, representing
approximately $163 million of capital deployment.
-- Completed $250 million Senior Notes offering in June, 2007
Robert Arzbaecher, President and CEO of Actuant commented, "We are extremely pleased with our 2007 results, representing the 6th consecutive year of diluted earnings per share improvement in excess of 15%, excluding special items. Our team continues to execute on the Actuant business model, leveraging organic growth opportunities in our diverse, niche businesses. In addition to core growth, we acquired five businesses during the fiscal year and completed a sixth in September, strengthening our existing units. Lastly, with our strong performance in the second half of the year, we generated margin expansion and record cash flow. I am tremendously proud of what the Actuant team has achieved and equally enthusiastic about our future opportunities."
Consolidated Results
Fourth quarter sales increased 20% to $390 million from $325 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (3%) and acquisitions (11%), core sales growth was 6%. All four business segments contributed to the core growth with the Industrial and Engineered Products segments generating double digit improvement.
Operating margins in the fourth quarter improved 50 basis points, to 13.8% from 13.3% in the prior year, excluding restructuring charges. The increase is the result of higher gross profit margins as well as tightly controlled selling, administrative and engineering spending, partially offset by higher acquisition related amortization expense. These results reflect the Company's continuous improvement initiatives including strategic sourcing and Lean Enterprise Across Discipline (LEAD) activities, as well as volume leverage.
Fourth quarter fiscal 2007 net earnings and EPS were $31.4 million and $1.00, respectively, compared to prior year net earnings and EPS of $25.2 million and $0.82, respectively. Fiscal 2007 fourth quarter results include a $1.1 million ($0.03 per diluted share) charge covering a portion of the Company's previously announced restructuring of its European Electrical business and a $1.6 million benefit ($0.05 per diluted share) from the utilization of a foreign tax credit. Fiscal 2006 fourth quarter results include a $4.5 million ($0.14 per diluted share) restructuring charge and a $5.4 million ($0.17 per diluted share) income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding these items (the "special items"), fourth quarter EPS increased 25% year-over-year from $0.79 to $0.99 (see attached reconciliation of earnings).
Sales for the year ended August 31, 2007 were $1.46 billion, 21% higher than the $1.20 billion in the comparable prior year period. Core sales increased 6% for the fiscal year, with acquisitions and foreign currency rate changes contributing 11% and 4%, respectively.
Net earnings and EPS for the year ended August 31, 2007 were $105.0 million and $3.38, respectively, compared to prior year net earnings and EPS of $92.6 million and $3.01, respectively. Fiscal 2007 results include a $4.5 million ($0.14 per diluted share) charge related to European Electrical restructuring and a $1.6 million benefit ($0.05 per diluted share) from the utilization of a foreign tax credit. Fiscal 2006 results include a $4.5 million ($0.14 per diluted share) restructuring charge and an $8.0 million ($0.25 per diluted share) income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding these special items, full year EPS increased 20% year-over-year from $2.90 to $3.47 (see attached reconciliation of earnings).
Segment Results
------------------------------
Industrial Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ----------
Sales $119.5 $96.8 $426.6 $324.7
Operating Profit $34.5 $27.4 $120.2 $85.5
Operating Profit % 28.9% 28.3% 28.2% 26.3%
Fourth quarter fiscal 2007 Industrial segment sales increased 23% to approximately $120 million. Excluding currency translation and acquisitions, Industrial segment sales grew 13% driven by continued strong global demand in both the joint integrity and high-force hydraulic tool product lines. Fourth quarter operating profit margins expanded 60 basis points to 28.9% due primarily to the benefit of higher volume and operating efficiencies.
Electrical Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ----------
Sales $132.4 $111.9 $505.7 $432.5
Operating Profit (1) $10.9 $9.6 $40.1 $41.7
Operating Profit % 8.2% 8.6% 7.9% 9.6%
(1) Operating profit excludes European Electrical restructuring
charges of $1.1 million and $5.4 million for the three and twelve
months ended August 31, 2007, respectively and $4.9 million for both
the three and twelve months ended August 31, 2006.
Fiscal 2007 fourth quarter Electrical segment sales increased 18% to $132 million, reflecting 3% core sales growth, favorable foreign currency exchange rate changes and the acquisitions of Actown (August 2006) and BH Electronics (July 2007). Electrical segment operating profit margin declined from 8.6% in the fourth quarter of fiscal 2006 to 8.2% in fiscal 2007 resulting from unfavorable sales and acquisition mix. Partially offsetting this was the benefit of higher volumes, most notably in the professional electrical product line, along with the benefit of continuous improvement initiatives across the businesses. The Company is on track to substantially complete the previously announced restructuring of its European Electrical operations by the end of the second quarter of fiscal 2008.
Actuation Systems Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ----------
Sales $104.4 $100.7 $419.4 $386.2
Operating Profit $9.6 $8.8 $37.1 $40.4
Operating Profit % 9.2% 8.8% 8.9% 10.5%
Actuation Systems fourth quarter fiscal 2007 sales increased 4% to $104 million. Core sales grew 1% in the quarter as increased demand for the Company's recreational vehicle ("RV") and truck actuation products outside of North America was partially offset by declines in both the automotive and North American truck markets. The decline in North American truck was anticipated due to the impact of emissions regulation changes, while automotive sales declined due to new platform launches in the prior year. Operating profit margins improved 40 basis points compared to last year due primarily to higher volumes and the benefit of profit improvement actions.
Engineered Products Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ----------
Sales $33.4 $15.2 $107.0 $57.7
Operating Profit $5.0 $2.0 $14.5 $7.7
Operating Profit % 14.9% 13.3% 13.6% 13.4%
Fiscal 2007 fourth quarter Engineered Products segment sales more than doubled to $33 million reflecting both 15% core sales growth and the acquisition of Maxima in December 2006. Operating profit margins improved 160 basis points to 14.9%, the highest of the year, due to favorable acquisition mix and base business expansion.
Financial Position
Fiscal year-end net debt (total debt of $562 million less $87 million of cash) was $475 million, a decrease of $6 million from the beginning of the quarter. Strong cash flow in the quarter more than offset the $30 million of cash used to finance the BH Electronics acquisition, $4 million of Senior Notes issuance costs and $11 million of capital expenditures.
Actuant used approximately $163 million of cash during the 2007 fiscal year to fund acquisitions and $31 million for capital expenditures. Despite this significant capital deployment, net debt at year end was only $20 million higher than the $455 million at the beginning of the year. Actuant generated cash from operations of $177 million in fiscal 2007, approximately 45% higher than the prior year, reflecting record earnings and effective working capital management.
Outlook
The Company increased its fiscal year 2008 guidance to reflect the BH Electronics and TK Simplex acquisitions, as well as its current business, economic and foreign exchange rate outlooks. Full year fiscal 2008 EPS is expected to be in the range of $3.80-3.95 (excluding European Electrical restructuring charges) on sales of $1.55-1.60 billion. For the first quarter, the Company expects sales to be in the $390-400 million range, generating EPS of approximately $0.93-0.97 per diluted share. Arzbaecher commented, "Actuant's strong positions in niche markets, variable cost structure and ROIC focus, as well as end market and geographic diversification, should continue to reward shareholders in fiscal 2008."
Conference Call Information
An investor conference call is scheduled for 10am CDT today, September 26, 2007. 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 registration statements filed with the Securities and Exchange Commission for further information regarding risk factors.
About Actuant
Actuant, headquartered in Butler, Wisconsin, is a diversified
industrial company with operations in more than 30 countries. The
Actuant businesses are market leaders in highly engineered position
and motion control systems and branded hydraulic and electrical tools
and supplies. Since its creation through a spin-off in 2000, Actuant
has grown its sales from $482 million to $1.5 billion and its market
capitalization from $113 million to over $1.8 billion. The Company
employs a workforce of more than 7,400 worldwide. Actuant Corporation
trades on the NYSE under the symbol ATU. For further information on
Actuant and its business units, visit the Company's website at
www.actuant.com.
(tables follow)
Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
August 31, August 31,
2007 2006
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $86,680 $25,659
Accounts receivable, net 194,775 171,262
Inventories, net 197,539 165,760
Deferred income taxes 14,827 18,796
Other current assets 11,459 9,448
----------- -----------
Total current assets 505,280 390,925
Property, plant and equipment, net 122,817 94,544
Goodwill 599,841 505,428
Other intangible assets, net 260,418 210,899
Other long-term assets 12,420 11,579
----------- -----------
Total assets $1,500,776 $1,213,375
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $153,205 $122,164
Accrued compensation and benefits 52,345 43,983
Income taxes payable 20,309 21,852
Current maturities of long-term debt 519 18,896
Other current liabilities 64,449 57,499
----------- -----------
Total current liabilities 290,827 264,394
Long-term debt, less current maturities 561,138 461,356
Deferred income taxes 103,589 70,184
Pension and postretirement benefit accruals 27,437 36,606
Other long-term liabilities 17,864 17,870
Shareholders' equity
Capital stock 5,535 5,460
Additional paid-in capital (343,655) (360,353)
Accumulated other comprehensive income (loss) 12,876 (4,581)
Stock held in trust (1,744) (1,355)
Deferred compensation liability 1,744 1,355
Retained earnings 825,165 722,439
----------- -----------
Total shareholders' equity 499,921 362,965
----------- -----------
Total liabilities and shareholders' equity $1,500,776 $1,213,375
=========== ===========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
August 31, August 31,
--------------------- ----------------------
2007 2006 2007 2006
--------------------- ----------------------
Net sales $389,655 $324,601 $1,458,748 $1,201,158
Cost of products sold 258,437 216,530 974,654 796,653
--------------------- ----------------------
Gross profit 131,218 108,071 484,094 404,505
Selling, administrative
and engineering expenses 74,488 62,782 282,326 237,868
Restructuring charge 1,076 4,910 5,395 4,910
Amortization of intangible
assets 3,082 2,219 10,900 7,662
--------------------- ----------------------
Operating profit 52,572 38,160 185,473 154,065
Financing costs, net 8,816 7,209 33,001 26,146
Other (income) expense,
net (849) 389 782 2,070
--------------------- ----------------------
Earnings from operations
before income
tax expense and minority
interest 44,605 30,562 151,690 125,849
Income tax expense 13,300 5,371 46,781 33,386
Minority interest, net of
income taxes (46) (44) (43) (125)
--------------------- ----------------------
Net earnings $31,351 $25,235 $104,952 $92,588
===================== ======================
Earnings per share
Basic $1.14 $0.93 $3.83 $3.41
Diluted 1.00 0.82 3.38 3.01
Weighted average common
shares outstanding
Basic 27,534 27,217 27,376 27,130
Diluted 31,934 31,619 31,814 31,601
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Operating Activities
Net earnings $31,351 $25,235 $104,952 $92,588
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation and
amortization 10,137 7,851 36,023 27,773
Amortization of debt
discount and debt issuance
costs 1,250 382 2,413 1,471
Stock-based compensation
expense 1,339 1,393 5,426 5,041
Provision for deferred
income taxes 4,136 (1,960) 1,734 (2,762)
Loss/(gain) on disposal of
assets (82) 733 (1,182) 458
Changes in operating assets
and liabilities, excluding
the effects of the business
acquisitions
Accounts receivable 6,291 (5,042) (2,261) (27,416)
Increase in AR
securitization program (7,661) 1,856 6,460 6,106
Inventories 4,071 (9,739) (4,900) (17,937)
Prepaid expenses and other
assets 897 (436) (1,024) (2,163)
Trade accounts payable (4,456) 5,546 14,740 23,568
Income taxes payable 1,520 427 5,961 6,258
Other accrued liabilities (1,101) 6,038 8,768 9,176
--------- --------- --------- ---------
Net cash provided by operating
activities 47,692 32,284 177,110 122,161
Investing Activities
Proceeds from sale of
property, plant and equipment 451 898 4,570 1,487
Capital expenditures (10,997) (4,240) (31,491) (19,705)
Business acquisitions, net of
cash acquired (30,387) (23,891) (162,981) (128,767)
--------- --------- --------- ---------
Net cash used in investing
activities (40,933) (27,233) (189,902) (146,985)
Financing Activities
Net borrowings (repayments) on
revolving credit facilities
and short-term borrowings - 1,199 (80,355) 37,680
Proceeds from term loans - - 155,737 -
Principal repayments on term
loans (244,660) (126) (251,737) (126)
Proceeds from Senior Note
offering, net of discount 249,039 - 249,039 -
Cash dividend - - (2,187) (2,165)
Debt issuance costs (4,401) - (4,599) (355)
Cash received for stock option
exercises 1,659 305 1,954 2,651
Tax benefit from stock-based
compensation 4,087 3 4,325 2,152
--------- --------- --------- ---------
Net cash provided by financing
activities 5,724 1,381 72,177 39,837
Effect of exchange rate
changes on cash 494 15 1,636 290
--------- --------- --------- ---------
Net increase in cash and cash
equivalents 12,977 6,447 61,021 15,303
Cash and cash equivalents -
beginning of period 73,703 19,212 25,659 10,356
--------- --------- --------- ---------
Cash and cash equivalents -
end of period $86,680 $25,659 $86,680 $25,659
========= ========= ========= =========
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2006
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
SALES
INDUSTRIAL SEGMENT $75,846 $68,907 $83,131 $96,804 $324,688
ELECTRICAL SEGMENT 105,460 105,670 109,449 111,907 432,486
ACTUATION SYSTEMS
SEGMENT 88,678 87,779 109,099 100,687 386,243
ENGINEERED PRODUCTS
SEGMENT 13,892 13,663 14,983 15,203 57,741
-----------------------------------------------
TOTAL $283,876 $276,019 $316,662 $324,601 $1,201,158
===============================================
% SALES GROWTH
INDUSTRIAL SEGMENT 81% 51% 44% 33% 49%
ELECTRICAL SEGMENT 50% 14% 9% 11% 19%
ACTUATION SYSTEMS
SEGMENT 9% 1% 9% 23% 10%
ENGINEERED PRODUCTS
SEGMENT 149% 41% 15% 16% 40%
TOTAL 42% 17% 17% 20% 23%
OPERATING PROFIT
INDUSTRIAL SEGMENT $20,201 $16,595 $21,307 $27,408 $85,511
ELECTRICAL SEGMENT 10,215 10,760 11,172 9,583 41,730
ACTUATION SYSTEMS
SEGMENT 10,034 9,297 12,203 8,846 40,380
ENGINEERED PRODUCTS
SEGMENT 1,728 1,834 2,139 2,020 7,721
CORPORATE / GENERAL (3,967) (3,632) (3,981) (4,787) (16,367)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $38,211 $34,854 $42,840 $43,070 $158,975
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
-----------------------------------------------
TOTAL $38,211 $34,854 $42,840 $38,160 $154,065
===============================================
OPERATING PROFIT %
INDUSTRIAL SEGMENT 26.6% 24.1% 25.6% 28.3% 26.3%
ELECTRICAL SEGMENT 9.7% 10.2% 10.2% 8.6% 9.6%
ACTUATION SYSTEMS
SEGMENT 11.3% 10.6% 11.2% 8.8% 10.5%
ENGINEERED PRODUCTS
SEGMENT 12.4% 13.4% 14.3% 13.3% 13.4%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.5% 12.6% 13.5% 13.3% 13.2%
EBITDA
INDUSTRIAL SEGMENT $21,626 $18,050 $22,752 $29,644 $92,072
ELECTRICAL SEGMENT 11,904 12,818 12,643 11,496 48,861
ACTUATION SYSTEMS
SEGMENT 12,063 11,823 14,913 11,555 50,354
ENGINEERED PRODUCTS
SEGMENT 2,042 2,145 2,435 2,324 8,946
CORPORATE / GENERAL (3,601) (3,586) (3,881) (4,487) (15,555)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
-----------------------------------------------
TOTAL $44,034 $41,250 $48,862 $45,622 $179,768
===============================================
EBITDA %
INDUSTRIAL SEGMENT 28.5% 26.2% 27.4% 30.6% 28.4%
ELECTRICAL SEGMENT 11.3% 12.1% 11.6% 10.3% 11.3%
ACTUATION SYSTEMS
SEGMENT 13.6% 13.5% 13.7% 11.5% 13.0%
ENGINEERED PRODUCTS
SEGMENT 14.7% 15.7% 16.3% 15.3% 15.5%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.5% 14.9% 15.4% 15.6% 15.4%
FISCAL 2007
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
SALES
INDUSTRIAL SEGMENT $100,867 $93,487 $112,760 $119,494 $426,608
ELECTRICAL SEGMENT 122,017 123,599 127,653 132,439 505,708
ACTUATION SYSTEMS
SEGMENT 105,654 97,656 111,768 104,367 419,445
ENGINEERED PRODUCTS
SEGMENT 14,445 26,278 32,909 33,355 106,987
-----------------------------------------------
TOTAL $342,983 $341,020 $385,090 $389,655 $1,458,748
===============================================
% SALES GROWTH
INDUSTRIAL SEGMENT 33% 36% 36% 23% 31%
ELECTRICAL SEGMENT 16% 17% 17% 18% 17%
ACTUATION SYSTEMS
SEGMENT 19% 11% 2% 4% 9%
ENGINEERED PRODUCTS
SEGMENT 4% 92% 120% 119% 85%
TOTAL 21% 24% 22% 20% 21%
OPERATING PROFIT
INDUSTRIAL SEGMENT $28,680 $23,988 $33,004 $34,528 $120,200
ELECTRICAL SEGMENT 9,357 9,535 10,341 10,851 40,084
ACTUATION SYSTEMS
SEGMENT 8,614 7,954 10,994 9,562 37,124
ENGINEERED PRODUCTS
SEGMENT 1,931 3,303 4,324 4,981 14,539
CORPORATE / GENERAL (4,944) (4,105) (5,756) (6,274) (21,079)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $43,638 $40,675 $52,907 $53,648 $190,868
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
-----------------------------------------------
TOTAL $43,529 $36,899 $52,473 $52,572 $185,473
===============================================
OPERATING PROFIT %
INDUSTRIAL SEGMENT 28.4% 25.7% 29.3% 28.9% 28.2%
ELECTRICAL SEGMENT 7.7% 7.7% 8.1% 8.2% 7.9%
ACTUATION SYSTEMS
SEGMENT 8.2% 8.1% 9.8% 9.2% 8.9%
ENGINEERED PRODUCTS
SEGMENT 13.4% 12.6% 13.1% 14.9% 13.6%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 13.7% 13.8% 13.1%
EBITDA
INDUSTRIAL SEGMENT $31,022 $26,205 $35,428 $38,770 $131,425
ELECTRICAL SEGMENT 11,543 11,404 12,355 13,501 48,803
ACTUATION SYSTEMS
SEGMENT 11,339 10,928 14,179 12,547 48,993
ENGINEERED PRODUCTS
SEGMENT 2,238 4,256 5,273 6,166 17,933
CORPORATE / GENERAL (4,844) (4,028) (5,823) (6,350) (21,045)
-----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (434) (1,076) (5,395)
-----------------------------------------------
TOTAL $51,189 $44,989 $60,978 $63,558 $220,714
===============================================
EBITDA %
INDUSTRIAL SEGMENT 30.8% 28.0% 31.4% 32.4% 30.8%
ELECTRICAL SEGMENT 9.5% 9.2% 9.7% 10.2% 9.7%
ACTUATION SYSTEMS
SEGMENT 10.7% 11.2% 12.7% 12.0% 11.7%
ENGINEERED PRODUCTS
SEGMENT 15.5% 16.2% 16.0% 18.5% 16.8%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 15.9% 16.6% 15.5%
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2006
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
NET EARNINGS EXCLUDING
RESTRUCTURING CHARGE
AND TAX ADJUSTMENTS /
CREDITS (1)
NET EARNINGS (GAAP
MEASURE) $21,268 $19,298 $26,787 $25,235 $92,588
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - - - 4,499 4,499
TAX ADJUSTMENTS /
CREDITS - - (2,597) (5,374) (7,971)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $21,268 $19,298 $24,190 $24,360 $89,116
===============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS / CREDITS
(1)
NET EARNINGS (GAAP
MEASURE) $0.70 $0.63 $0.86 $0.82 $3.01
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - - - 0.14 0.14
TAX ADJUSTMENTS /
CREDITS - - (0.08) (0.17) (0.25)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.70 $0.63 $0.78 $0.79 $2.90
===============================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $21,268 19,298 26,787 25,235 $92,588
FINANCING COSTS,
NET 6,067 6,084 6,786 7,209 26,146
INCOME TAX EXPENSE 10,220 9,159 8,636 5,371 33,386
DEPRECIATION &
AMORTIZATION 6,521 6,721 6,680 7,851 27,773
MINORITY INTEREST,
NET OF INCOME TAX (42) (12) (27) (44) (125)
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) $44,034 $41,250 $48,862 $45,622 $179,768
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE - - - 4,910 4,910
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) -
EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
===============================================
FISCAL 2007
-----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-----------------------------------------------
NET EARNINGS EXCLUDING
RESTRUCTURING CHARGE
AND TAX ADJUSTMENTS /
CREDITS (1)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT 109 2,926 434 1,076 4,545
TAX ADJUSTMENTS /
CREDITS - - - (1,580) (1,580)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $25,211 $21,845 $30,014 $30,847 $107,917
===============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS / CREDITS
(1)
NET EARNINGS (GAAP
MEASURE) $0.81 $0.62 $0.95 $1.00 $3.38
RESTRUCTURING
CHARGES, NET OF
TAX BENEFIT - 0.09 0.01 0.03 0.14
TAX ADJUSTMENTS /
CREDITS - - - (0.05) (0.05)
-----------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.81 $0.71 $0.96 $0.99 $3.47
===============================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $29,580 $31,351 $104,952
FINANCING COSTS,
NET 6,841 8,268 9,076 8,816 33,001
INCOME TAX EXPENSE 11,379 8,956 13,146 13,300 46,781
DEPRECIATION &
AMORTIZATION 7,877 8,844 9,165 10,137 36,023
MINORITY INTEREST,
NET OF INCOME TAX (10) 2 11 (46) (43)
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) $51,189 $44,989 $60,978 $63,558 $220,714
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE 109 3,776 434 1,076 5,395
-----------------------------------------------
EBITDA (NON-GAAP
MEASURE) -
EXCLUDING
RESTRUCTURING
CHARGE $51,298 $48,765 $61,412 $64,634 $226,109
===============================================
(1) Net earnings and diluted earnings per share excluding
restructuring charges and income tax adjustments / credits
represent net earnings and diluted earnings per share per the
Consolidated Statement of Earnings net of charges or credits for
items to be highlighted for comparability purposes. These
measures should not be considered as an alternative to net
earnings or diluted earnings per share as an indicator of the
company's operating performance. However, this presentation is
important to investors for understanding the operating results of
the current portfolio of Actuant companies. The total of the
individual components do not equal diluted earnings per share
excluding restructuring charges and income tax adjustments /
credits due to rounding.
(2) EBITDA represents net earnings before financing costs,net, income
tax expense, depreciation & amortization and minority interest.
EBITDA is not a calculation based upon generally accepted
accounting principles (GAAP). The amounts included in the EBITDA
calculation, however, are derived from amounts included in the
Consolidated Statements of Earnings data. EBITDA should not be
considered as an alternative to net earnings or operating profit
as an indicator of the company's operating performance, or as an
alternative to operating cash flows as a measure of liquidity.
Actuant has presented EBITDA because it regularly reviews this as
a measure of the company's ability to incur and service debt. In
addition, EBITDA is used by many of our investors and lenders,
and is presented as a convenience to them. However, the EBITDA
measure presented may not always be comparable to similarly
titled measures reported by other companies due to differences in
the components of the calculation.
Source: Actuant Corporation
Released September 26, 2007