Actuant Reports Improved Second Quarter Results
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its second quarter ended February 28, 2010.
Highlights
-- 73% year-over-year increase in diluted earnings per share ("EPS") to
$0.19 (excluding $0.09 per diluted share in restructuring costs) on flat
sales due to the Company's reduced cost structure. (See attached
reconciliation of earnings.)
-- Excluding the impact of acquisitions, divestitures and foreign currency
rate changes, second quarter year-over-year sales ("core sales") rate of
change was -3%, a considerable sequential improvement from the 20%
decline in the first quarter.
-- Operating profit margins (excluding restructuring costs) improved 350
basis points year-over-year to 9.1% compared to 5.6% in the prior year
second quarter and expanded sequentially in three of the four segments.
(See attached reconciliation of earnings.)
-- Full year free cash flow conversion is forecasted to exceed 100% of net
earnings for the 10th consecutive year.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "Actuant continues to execute on our key priorities. During the seasonally weak second quarter, we experienced sequentially higher sales in a number of key end markets and generated earnings significantly ahead of last year. As anticipated, our year-over-year core sales rate of change improved substantially to -3%. This, coupled with better than expected margin improvement, drove EPS ahead of expectations. Consolidated operating profit margins, excluding restructuring costs, improved 350 basis points year-over-year despite unfavorable segment mix, reflecting the benefit of our cost reduction actions. Overall, we are optimistic that global industrial activity and the corresponding demand for our products and services will continue to improve through the remainder of the year. This, coupled with improved margins, should drive strong second half year-over-year EPS growth."
Consolidated Results
Consolidated sales for the second quarter were $294 million, approximately equal to the comparable prior year quarter. Core sales declined 3%, with the European Electrical bike and plumbing product line divestiture impact of -1% and the weaker US dollar adding 4%. Earnings and EPS from continuing operations in the fiscal 2010 second quarter were $7.2 million and $0.10, respectively, compared to $4.2 million and $0.08 in the comparable prior year quarter. Results for the second quarter of fiscal 2010 included restructuring costs (including those reported in cost of products sold) of $9.3 million, or $0.09 per diluted share. Fiscal 2009 second quarter results included restructuring costs of $3.0 million, or $0.03 per diluted share. Excluding these items, EPS from continuing operations was $0.19 in the second quarter of fiscal 2010, 73% higher than the $0.11 in the prior year. (See attached reconciliation of earnings.)
Sales for the six months ended February 28, 2010 were $599 million, 10% lower than the $665 million in the comparable prior year period. Excluding the impact of the weaker US dollar (+4%) and net acquisitions and divestitures (-1%), year-to-date core sales decreased 13%. Earnings and EPS from continuing operations for the six months ended February 28, 2010 were $19.0 million, or $0.27 per diluted share, compared to $16.1 million, or $0.27 per diluted share for the comparable prior year period. Year-to-date fiscal 2010 results include restructuring costs (including those reported in cost of products sold) of $12.9 million, or $0.12 per diluted share. Results for the six months ended February 28, 2009 include a $26.6 million ($0.26 per diluted share) pre-tax non-cash asset impairment charge and $3.7 million ($0.04 per diluted share) of restructuring costs. Excluding these items, current year first half diluted EPS was $0.39, compared to $0.56 for the comparable prior year period. (See attached reconciliation of earnings.)
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2010 2009 2010 2009
Sales $69.2 $71.7 $134.5 $162.2
Operating Profit $10.9 $15.6 $24.6 $41.6
Adjusted Operating Profit(1) $15.8 $16.0 $29.7 $42.1
Adjusted Operating Profit %(1) 22.9% 22.3% 22.1% 25.9%
(1) Excludes restructuring costs of $4.9 million and $5.1 million for the three and six months ended February 28, 2010 and $0.4 million and $0.5 million for the three and six months ended February 28, 2009.
Second quarter fiscal 2010 Industrial segment sales were $69 million, 3% lower than the prior year. Excluding foreign currency rate changes (+4%), Industrial segment core sales declined 7% due to lower demand across most regions and end markets. Despite the normal seasonal slowdown from the first to second quarter, sales increased 6% sequentially and the year-over-year core sales rate of change trend improved significantly to -7% from -30% in the first quarter of fiscal 2010. This improvement continued as the quarter progressed with flat year-over-year core sales in the last month of the quarter. Operating profit margins (excluding restructuring costs) improved 60 basis points from the prior year as the benefit of restructuring actions more than offset higher annual incentive compensation expense.
Energy Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2010 2009 2010 2009
Sales $53.9 $59.5 $117.9 $133.5
Operating Profit $3.9 $5.9 $15.3 $21.5
Adjusted Operating Profit(2) $5.6 $5.9 $17.1 $21.5
Adjusted Operating Profit %(2) 10.4% 9.9% 14.5% 16.1%
(2) Excludes restructuring costs of $1.7 million and $1.8 million for the three and six months ended February 28, 2010.
Fiscal 2010 second quarter Energy segment sales decreased 10% to $54 million. Core sales declined 14% due primarily to weakness in refinery maintenance, seismic exploration and project based revenue. The Energy segment's -14% core sales rate of change in the second quarter was generally consistent with the declines in each of the previous two quarters. Despite lower revenue, second quarter operating profit margin (excluding restructuring costs) improved 50 basis points year-over-year from 9.9% to 10.4% due to cost reduction benefits.
Electrical Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2010 2009 2010 2009
Sales $81.7 $89.7 $168.3 $192.6
Operating Profit $4.4 $1.2 $5.1 $7.1
Adjusted Operating Profit(3) $4.9 $2.4 $8.3 $8.3
Adjusted Operating Profit %(3) 6.0% 2.7% 4.9% 4.3%
(3) Excludes restructuring costs of $0.5 million and $3.2 million for the three and six months ended February 28, 2010 and $1.2 million for both the three and six months ended February 28, 2009.
Electrical segment fiscal 2010 second quarter sales were $82 million, 9% lower than the comparable prior year quarter. Core sales also decreased 9% reflecting weakness in the electric utility, commercial construction and European DIY markets. The year-over-year core sales rate of change improved from -18% in the first quarter due to continued moderate improvement in the North American marine and retail DIY markets. Second quarter operating profit margin (excluding restructuring costs) increased 330 basis points from the prior year reflecting restructuring driven cost savings.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2010 2009 2010 2009
Sales $89.4 $72.9 $178.6 $176.3
Operating Profit $4.0 $(4.0) $9.1 $(23.1)
Adjusted Operating Profit(4) $6.0 $(2.7) $11.5 $5.1
Adjusted Operating Profit %(4) 6.7% (3.8)% 6.4% 2.9%
(4) Excludes restructuring costs of $2.0 million and $2.4 million for the three and six months ended February 28, 2010 and $1.3 million and $1.7 million for the three and six months ended February 28, 2009. The six months ended February 28, 2009 also excludes $26.6 million of impairment charges.
Second quarter fiscal 2010 Engineered Solutions segment sales increased 23% from the prior year to $89 million, benefiting from higher shipments to global truck, automotive and specialty vehicle customers. Excluding the impact of currency translation (+4%) and acquisitions (+3%), the year-over-year core sales rate of change improved sequentially from -18% in the first quarter of fiscal 2010 to +16% in the second quarter due to new automotive platforms as well as easier comparables due to prior year destocking at global truck and RV OEM's. Second quarter operating margins (excluding restructuring costs) increased over 1000 basis points due to the higher volume and improved cost structure.
Corporate
Corporate expenses for the second quarter of fiscal 2010, excluding restructuring charges of $0.2 million, were $5.6 million, approximately comparable to the first quarter. They increased approximately $0.5 million from last year due to higher annual incentive compensation expense.
Financial Position
Net debt at February 28, 2010 was $377 million (total debt of $393 million less $16 million of cash). The $13 million second quarter net debt reduction included approximately $5 million in proceeds from the previously announced product line divestiture within the European Electrical business, net of a deferred acquisition payment. As of February 28, 2010, the Company had over $370 million of unused revolver capacity.
Outlook
Arzbaecher continued, "We are encouraged by the improving trends in many of our end markets, especially those served by our early cycle businesses. Our Energy segment, which was the last to feel the brunt of the economic slowdown, has seen year-over-year core sales percentage declines in the low-to-mid teens in each of the last three quarters. While we expect to see sequential core sales improvement over the next few quarters in the Energy segment, it will be modestly less than in our prior guidance. This is being offset by improvements in other segments. Overall, we expect improving sales trends in all four segments during the back half of fiscal 2010, which will be partially muted by the unfavorable impact of recent US dollar strengthening. From an earnings standpoint, our investors should see strong second half year-over-year growth, the combined benefit of higher sales and a reduced cost structure."
"We currently project full year sales in the range of $1.225-1.250 billion, and corresponding EPS, excluding restructuring costs, of $0.87-0.97. We are targeting $110 million of free cash flow for fiscal 2010, and are on track with nearly half generated through two quarters. Third quarter sales are expected to be in the range of $310-320 million. Excluding restructuring costs, third quarter EPS is projected to be in the $0.24-0.29 range. We are actively pursuing several modest-sized tuck-in acquisition opportunities, which when executed, would be incremental to this guidance."
Conference Call Information
An investor conference call is scheduled for 10am CT today, March 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)
February 28, August 31,
2010 2009
ASSETS
Current assets
Cash and cash equivalents $ 15,710 $ 11,385
Accounts receivable, net 200,877 155,520
Inventories, net 158,223 160,656
Deferred income taxes 20,533 20,855
Other current assets 15,869 15,246
Total current assets 411,212 363,662
Property, plant and equipment, net 114,010 129,118
Goodwill 701,436 711,522
Other intangible assets, net 332,638 350,249
Other long-term assets 10,965 13,880
Total assets $ 1,570,261 $ 1,568,431
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 159 $ 4,964
Trade accounts payable 118,362 108,333
Accrued compensation and benefits 36,010 30,079
Income taxes payable 22,388 20,578
Other current liabilities 69,435 71,140
Total current liabilities 246,354 235,094
Long-term debt, less current maturities 392,952 400,135
Deferred income taxes 117,083 117,335
Pension and postretirement benefit accruals 36,681 37,662
Other long-term liabilities 26,778 30,835
Shareholders' equity
Capital stock 13,577 13,543
Additional paid-in capital (181,707 ) (188,644 )
Accumulated other comprehensive loss (47,533 ) (24,599 )
Stock held in trust (1,887 ) (1,766 )
Deferred compensation liability 1,887 1,766
Retained earnings 966,076 947,070
Total shareholders' equity 750,413 747,370
Total liabilities and shareholders' equity $ 1,570,261 $ 1,568,431
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28, February 28, February 28,
2010 2009 2010 2009
Net sales $ 294,216 $ 293,799 $ 599,409 $ 664,588
Cost of products sold 192,518 199,291 391,089 439,855
Gross profit 101,698 94,508 208,320 224,733
Selling, administrative 70,349 73,002 142,849 146,678
and engineering expenses
Restructuring charges 8,447 3,039 12,020 3,713
Impairment charge - - - 26,553
Amortization of 5,372 4,983 10,829 9,214
intangible assets
Operating profit 17,530 13,484 42,622 38,575
Financing costs, net 7,798 9,904 16,335 22,139
Other (income) expense, (81 ) (45 ) 223 (584 )
net
Earnings from continuing
operations before income
tax expense 9,813 3,625 26,064 17,020
Income tax expense 2,656 (604 ) 7,055 893
(benefit)
Earnings from continuing 7,157 4,229 19,009 16,127
operations
Loss from discontinued
operations, net of - (985 ) - (1,285 )
income taxes
Net earnings $ 7,157 $ 3,244 $ 19,009 $ 14,842
Earnings from continuing
operations per share
Basic $ 0.11 $ 0.08 $ 0.28 $ 0.29
Diluted 0.10 0.08 0.27 0.27
Earnings per share
Basic $ 0.11 $ 0.06 $ 0.28 $ 0.27
Diluted 0.10 0.06 0.27 0.25
Weighted average common
shares outstanding
Basic 67,595 56,170 67,569 56,096
Diluted 74,068 64,256 74,040 64,325
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28, February 28, February 28,
2010 2009 2010 2009
Operating Activities
Net earnings $ 7,157 $ 3,244 $ 19,009 $ 14,842
Adjustments to reconcile
net earnings to net cash
provided by
operating activities:
Depreciation and 14,828 12,998 27,015 25,744
amortization
Stock-based compensation 1,955 1,911 3,898 3,448
expense
Provision (benefit) for 271 - 527 (10,360 )
deferred income taxes
Impairment charge - - - 26,553
Amortization of debt
discount and debt 997 810 1,959 1,690
issuance costs
Other (977 ) 180 (746 ) (636 )
Changes in operating
assets and liabilities,
excluding the effects of
acquisitions and
divestitures:
Accounts receivable (3,931 ) 42,775 (11,963 ) 48,232
Expiration of accounts
receivable - - (37,106 ) -
securitization program
Inventories (959 ) 15,628 (5,359 ) 10,296
Prepaid expenses and 2,258 2,153 2,288 2,115
other assets
Trade accounts payable (350 ) (36,902 ) 12,089 (56,585 )
Income taxes payable (5,905 ) (9,498 ) 3,534 (7,603 )
Accrued compensation and 6,503 1,066 8,293 (20,007 )
benefits
Other accrued (10,742 ) (13,264 ) (5,554 ) (4,110 )
liabilities
Net cash provided by 11,105 21,101 17,884 33,619
operating activities
Investing Activities
Proceeds from sale of
property, plant and 408 196 683 290
equipment
Proceeds from product 7,516 - 7,516 -
line divestiture
Capital expenditures (3,598 ) (4,873 ) (6,776 ) (12,507 )
Business acquisitions, (2,000 ) (4,104 ) (2,000 ) (235,872 )
net of cash acquired
Net cash provided by
(used in) investing 2,326 (8,781 ) (577 ) (248,089 )
activities
Financing Activities
Net borrowings
(repayments) on
revolving credit
facilities and
short-term borrowings (10,621 ) (19,786 ) 11,766 168,209
Principal repayments on - - - (155,000 )
term loans
Proceeds from issuance - - - 115,000
of term loan
Open market repurchases - - (22,894 ) -
of 2% Convertible Notes
Debt issuance costs - - - (5,333 )
Stock option exercises,
related tax benefits and 523 397 1,005 2,876
other
Cash dividend - - (2,702 ) (2,251 )
Net cash (used in)
provided by financing (10,098 ) (19,389 ) (12,825 ) 123,501
activities
Effect of exchange rate (1,445 ) (820 ) (157 ) (9,251 )
changes on cash
Net increase (decrease)
in cash and cash 1,888 (7,889 ) 4,325 (100,220 )
equivalents
Cash and cash
equivalents - beginning 13,822 30,218 11,385 122,549
of period
Cash and cash
equivalents - end of $ 15,710 $ 22,329 $ 15,710 $ 22,329
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 $ 90,524 $ 71,682 $ 62,843 $ 61,802 $ 286,851 $ 65,308 $ 69,235 $ 134,543
SEGMENT
ENERGY SEGMENT 73,982 59,526 62,251 63,731 259,490 64,065 53,862 117,927
ELECTRICAL 102,898 89,719 83,752 87,792 364,161 86,618 81,705 168,323
SEGMENT
ENGINEERED
SOLUTIONS 103,385 72,872 76,308 76,731 329,296 89,202 89,414 178,616
SEGMENT
TOTAL $ 370,789 $ 293,799 $ 285,154 $ 290,056 $ 1,239,798 $ 305,193 $ 294,216 $ 599,409
% SALES GROWTH
INDUSTRIAL 4 % -18 % -38 % -37 % -23 % -28 % -3 % -17 %
SEGMENT
ENERGY SEGMENT 49 % 37 % 7 % 5 % 22 % -13 % -10 % -12 %
ELECTRICAL -21 % -29 % -34 % -22 % -27 % -16 % -9 % -13 %
SEGMENT
ENGINEERED
SOLUTIONS -23 % -44 % -47 % -37 % -38 % -14 % 23 % 1 %
SEGMENT
TOTAL -8 % -24 % -34 % -26 % -23 % -18 % 0 % -10 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ 26,107 $ 15,972 $ 15,597 $ 13,692 $ 71,368 $ 13,854 $ 15,847 $ 29,699
SEGMENT
ENERGY SEGMENT 15,647 5,895 11,772 11,801 45,115 11,502 5,615 17,117
ELECTRICAL 5,896 2,404 3,119 4,213 15,632 3,357 4,902 8,259
SEGMENT
ENGINEERED
SOLUTIONS 7,865 (2,735 ) 991 342 6,463 5,481 6,007 11,488
SEGMENT
CORPORATE / (3,197 ) (5,013 ) (4,815 ) (5,042 ) (18,066 ) (5,471 ) (5,561 ) (11,033 )
GENERAL
TOTAL -
EXCLUDING
IMPAIRMENT / $ 52,318 $ 16,523 $ 26,664 $ 25,006 $ 120,512 $ 28,723 $ 26,810 $ 55,530
RESTRUCTURING
CHARGES
IMPAIRMENT (26,553 ) - (4,768 ) - (31,321 ) - - -
CHARGES
RESTRUCTURING (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 ) (3,628 ) (9,280 ) (12,908 )
CHARGES (1)
TOTAL $ 25,091 $ 13,484 $ 11,147 $ 15,729 $ 65,452 $ 25,095 $ 17,530 $ 42,622
OPERATING
PROFIT %
INDUSTRIAL 28.8 % 22.3 % 24.8 % 22.2 % 24.9 % 21.2 % 22.9 % 22.1 %
SEGMENT
ENERGY SEGMENT 21.1 % 9.9 % 18.9 % 18.5 % 17.4 % 18.0 % 10.4 % 14.5 %
ELECTRICAL 5.7 % 2.7 % 3.7 % 4.8 % 4.3 % 3.9 % 6.0 % 4.9 %
SEGMENT
ENGINEERED
SOLUTIONS 7.6 % -3.8 % 1.3 % 0.4 % 2.0 % 6.1 % 6.7 % 6.4 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 14.1 % 5.6 % 9.4 % 8.6 % 9.7 % 9.4 % 9.1 % 9.3 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ 27,139 $ 17,058 $ 18,208 $ 15,322 $ 77,727 $ 15,633 $ 16,639 $ 32,272
SEGMENT
ENERGY SEGMENT 21,671 11,492 15,080 16,235 64,478 15,493 10,072 25,565
ELECTRICAL 7,103 3,440 5,307 6,388 22,238 5,270 6,429 11,699
SEGMENT
ENGINEERED
SOLUTIONS 12,417 1,274 3,879 4,953 22,524 8,981 10,168 19,149
SEGMENT
CORPORATE / (3,110 ) (4,058 ) (4,237 ) (4,196 ) (15,601 ) (4,771 ) (4,339 ) (9,110 )
GENERAL
TOTAL -
EXCLUDING
IMPAIRMENT / $ 65,220 $ 29,206 $ 38,237 $ 38,702 $ 171,366 $ 40,606 $ 38,969 $ 79,574
RESTRUCTURING
CHARGES
IMPAIRMENT (26,553 ) - (4,768 ) - (31,321 ) - - -
CHARGES
RESTRUCTURING (674 ) (3,039 ) (10,749 ) (9,277 ) (23,739 ) (3,628 ) (9,280 ) (12,908 )
CHARGES (1)
TOTAL $ 37,993 $ 26,167 $ 22,720 $ 29,425 $ 116,306 $ 36,978 $ 29,689 $ 66,666
EBITDA %
INDUSTRIAL 30.0 % 23.8 % 29.0 % 24.8 % 27.1 % 23.9 % 24.0 % 24.0 %
SEGMENT
ENERGY SEGMENT 29.3 % 19.3 % 24.2 % 25.5 % 24.8 % 24.2 % 18.7 % 21.7 %
ELECTRICAL 6.9 % 3.8 % 6.3 % 7.3 % 6.1 % 6.1 % 7.9 % 7.0 %
SEGMENT
ENGINEERED
SOLUTIONS 12.0 % 1.7 % 5.1 % 6.5 % 6.8 % 10.1 % 11.4 % 10.7 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING 17.6 % 9.9 % 13.4 % 13.3 % 13.8 % 13.3 % 13.2 % 13.3 %
IMPAIRMENT /
RESTRUCTURING
CHARGES
ACTUANT CORPORATION
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in
thousands, FISCAL 2009 FISCAL 2010
except for per
share amounts)
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 $ 24,611
MEASURE)
RESTRUCTURING 100 427 964 2,426 3,917 178 4,910 5,088
CHARGES
ADJUSTED
OPERATING
PROFIT $ 26,107 $ 15,972 $ 15,597 $ 13,692 $ 71,368 $ 13,854 $ 15,847 $ 29,699
(NON-GAAP
MEASURE)
ENERGY SEGMENT
OPERATING
PROFIT (GAAP $ 15,533 $ 5,976 $ 11,508 $ 11,075 $ 44,092 $ 11,359 $ 3,922 $ 15,281
MEASURE)
RESTRUCTURING 114 (81 ) 264 726 1,023 143 1,693 1,836
CHARGES
ADJUSTED
OPERATING
PROFIT $ 15,647 $ 5,895 $ 11,772 $ 11,801 $ 45,115 $ 11,502 $ 5,615 $ 17,117
(NON-GAAP
MEASURE)
ELECTRICAL
SEGMENT
OPERATING
PROFIT (LOSS) $ 5,861 $ 1,225 $ (7,285 ) $ 1,250 $ 1,051 $ 673 $ 4,424 $ 5,097
(GAAP MEASURE)
RESTRUCTURING 35 1,179 5,636 2,963 9,813 2,684 478 3,162
CHARGES
IMPAIRMENT - - 4,768 - 4,768 - - -
CHARGE
ADJUSTED
OPERATING
PROFIT $ 5,896 $ 2,404 $ 3,119 $ 4,213 $ 15,632 $ 3,357 $ 4,902 $ 8,259
(NON-GAAP
MEASURE)
ENGINEERED
SOLUTIONS
SEGMENT
OPERATING
PROFIT (LOSS) $ (19,113 ) $ (3,985 ) $ (2,670 ) $ (2,664 ) $ (28,432 ) $ 5,053 $ 3,995 $ 9,048
(GAAP MEASURE)
RESTRUCTURING 425 1,250 3,661 3,006 8,342 428 2,012 2,440
CHARGES
IMPAIRMENT 26,553 - - - 26,553 - - -
CHARGE
ADJUSTED
OPERATING
PROFIT $ 7,865 $ (2,735 ) $ 991 $ 342 $ 6,463 $ 5,481 $ 6,007 $ 11,488
(NON-GAAP
MEASURE)
CORPORATE
OPERATING LOSS $ (3,197 ) $ (5,277 ) $ (5,039 ) $ (5,198 ) $ (18,710 ) $ (5,666 ) $ (5,748 ) $ (11,415 )
(GAAP MEASURE)
RESTRUCTURING - 264 224 156 644 195 187 382
CHARGES
ADJUSTED
OPERATING LOSS $ (3,197 ) $ (5,013 ) $ (4,815 ) $ (5,042 ) $ (18,066 ) $ (5,471 ) $ (5,561 ) $ (11,033 )
(NON-GAAP
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 $ 19,009
MEASURE)
RESTRUCTURING
CHARGES, NET 481 2,028 7,173 6,223 15,905 2,601 6,566 9,167
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 $ 28,176
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 $ 0.27
MEASURE)
RESTRUCTURING
CHARGES, NET 0.01 0.03 0.11 0.09 0.24 0.03 0.09 0.12
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 $ 0.39
MEASURE)
EBITDA (3)
NET EARNINGS
(LOSS) (GAAP $ 11,598 $ 3,244 $ (17,635 ) $ 16,515 $ 13,723 $ 11,854 $ 7,157 $ 19,009
MEASURE)
FINANCING 12,235 9,904 9,025 10,685 41,849 8,538 7,798 16,335
COSTS, NET
INCOME TAX 1,497 (604 ) (1,907 ) 540 (474 ) 4,399 2,656 7,055
EXPENSE
DEPRECIATION & 12,363 12,638 12,391 13,688 51,080 12,187 12,078 24,265
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 $ 66,666
MEASURE)
IMPAIRMENT 26,553 - 4,768 - 31,321 - - -
CHARGES
RESTRUCTURING 674 3,039 10,749 9,277 23,739 3,628 9,280 12,908
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING
DISCONTINUED
OPERATIONS,
IMPAIRMENT AND $ 65,220 $ 29,206 $ 38,237 $ 38,702 $ 171,366 $ 40,606 $ 38,969 $ 79,574
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.
The restructuring charges for the first and second quarters of fiscal
2010 include $54 and $833 of charges included in cost of products sold on
(1) the Condensed Consolidated Statements of Earnings. The restructuring
charges for the third and fourth quarters of fiscal 2009 and total fiscal
2009 include $276, $1,037 and $1,313 of charges included in cost of
products sold on the Condensed Consolidated Statements of Earnings.
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
for items to be highlighted for comparability purposes. These measures
(2) 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 March 17, 2010