Actuant Reports Improved First Quarter Results; Increases Fiscal 2011 Guidance
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its first quarter ended November 30, 2010.
Highlights
-- 71% year-over-year increase in diluted earnings per share from
continuing operations ("EPS") to $0.36 (excluding prior year special
items - see attached reconciliation of earnings.)
-- Core revenue growth (total sales less the impact of acquisitions,
divestitures and foreign currency rate changes) of 14%. All four
segments reported core sales growth, including the Energy segment at 4%.
-- Year-over-year operating profit margin expansion of 230 basis points,
excluding prior year restructuring costs.
-- Completed the previously announced Mastervolt acquisition after
quarter-end, repositioning the Electrical segment to higher growth and
product technology.
-- Increased full year guidance to reflect strong Q1 results, favorable
trends, a lower effective tax rate and the Mastervolt acquisition.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "Actuant had a strong start to the fiscal year with double digit core revenue growth, solid operating margin expansion and EPS above our expectations. In particular, we were pleased to have all four segments contributing to the core sales growth with Energy at 4%, and robust 22% core growth at both Engineered Solutions and Industrial. We completed the acquisition of Mastervolt, deploying $150 million of capital on this attractive growth platform which repositions our Electrical segment's growth, margin and innovation trajectory. I want to thank our employees for their continued hard work and dedication in creating a solid start to the year."
Consolidated Results
Consolidated sales for the first quarter were $318 million, 17% higher than the comparable prior year quarter. Core sales increased 14% with acquisitions contributing an additional 5%, offset by the stronger U.S. dollar (-2%). Fiscal 2011 first quarter net earnings were $25.9 million, or $0.35 per share compared to net earnings and EPS of $11.9 million and $0.17, respectively, in the comparable prior year quarter. Earnings and EPS from continuing operations in the fiscal 2011 first quarter were $26.7 million and $0.36, respectively, compared to $13.3 million and $0.19 in the comparable prior year quarter. Results for the first quarter of fiscal 2010 included pre-tax restructuring costs (including those reported in cost of products sold) of $2.8 million, or $0.02 per diluted share. Excluding this item, fiscal 2011 first quarter EPS from continuing operations of $0.36 was 71% higher than the $0.21 in the prior year. (See attached reconciliation of earnings.)
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended
November 30,
2010 2009
Sales $87.4 $65.3
Operating Profit $20.2 $13.7
Adjusted Operating Profit(1) $20.2 $13.9
Adjusted Operating Profit %(1) 23.1% 21.2%
(1) Excludes restructuring costs of $0.2 million for the three months ended November 30, 2009.
First quarter fiscal 2011 Industrial segment sales were $87 million, 34% higher than the prior year. Excluding foreign currency rate changes (-1%), and the benefit of the Integrated Solutions (IS) acquisitions (+13%), Industrial segment core sales increased 22% reflecting continued robust demand across nearly all markets and geographies. Year-over-year adjusted operating profit margins improved 190 basis points due to the higher volumes and benefits from prior restructuring actions, partially offset by the impact of unfavorable acquisition related sales mix.
Energy Segment
(US $ in millions)
Three Months Ended
November 30,
2010 2009
Sales $70.7 $64.1
Operating Profit $11.9 $11.4
Adjusted Operating Profit(2) $11.9 $11.5
Adjusted Operating Profit %(2) 16.8% 18.0%
(2) Excludes restructuring costs of $0.1 million for the three months ended November 30, 2009.
Fiscal 2011 first quarter year-over-year Energy segment sales increased 10% to $71 million. Excluding the 2% unfavorable foreign currency impact and 8% contribution from acquisitions, core sales increased 4% due primarily to higher activity levels in emerging markets and improved seismic market demand. The year-over-year core sales rate of change improved from -7% in the fourth quarter of fiscal 2010 as total sales increased 16% sequentially. Current year first quarter adjusted operating profit margin improved sequentially from 13.5% in the fourth quarter to 16.8%, the highest margin in the last twelve months. The 330 basis point improvement was due to the higher volumes; however, it was modestly below the comparable prior year period due to unfavorable mix.
Electrical Segment
(US $ in millions)
Three Months Ended
November 30,
2010 2009
Sales $55.4 $54.1
Operating Profit $3.8 $2.2
Adjusted Operating Profit(3) $3.8 $4.1
Adjusted Operating Profit %(3) 6.8% 7.5%
(3) Excludes restructuring costs of $1.9 million for the three months ended November 30, 2009.
Electrical segment fiscal 2011 first quarter sales were $55 million, 2% higher than the comparable prior year quarter due to modest improvement in the North American marine and industrial markets. First quarter adjusted operating profit margin declined 70 basis points from the prior year due to higher logistics costs as well as investments in growth initiatives.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended
November 30,
2010 2009
Sales $104.9 $89.2
Operating Profit $13.8 $5.1
Adjusted Operating Profit(4) $13.8 $5.5
Adjusted Operating Profit %(4) 13.2% 6.1%
(4) Excludes restructuring costs of $0.4 million for the three months ended November 30, 2009.
First quarter fiscal 2011 Engineered Solutions segment sales increased 18% from the prior year to $105 million. Excluding the impact of the stronger U.S. dollar (-4%), year-over-year core sales grew 22%. First quarter sales reflected strong demand from the global heavy-duty truck markets and significantly higher shipments to agriculture, construction equipment and defense OEMs. First quarter adjusted operating margins increased 710 basis points year-over-year due to restructuring driven cost reductions and substantially improved volumes.
Corporate
Corporate expenses for the first quarter of fiscal 2011 were $8.0 million, an increase of approximately $2.6 million from the prior year. The increase was due to higher 401(k), salary and incentive compensation costs compared to last year's recessionary levels. In addition, the Company incurred approximately $0.6 million of acquisition related costs, primarily related to Mastervolt.
Financial Position
Net debt at November 30, 2010 was $323 million (total debt of $367 million less $44 million of cash). Actuant's first quarter cash flow was impacted by seasonal trends including the payment of fiscal 2010 employee incentive compensation. At quarter end, the Company's net debt to EBITDA leverage was 1.6 times, and its entire $400 million revolver was available. However, in December, the Company deployed approximately $150 million of capital to fund the Mastervolt acquisition, leaving approximately $250 million of unused revolver capacity.
Less than $0.1 million of the Company's $118 million of 2% Convertible Bonds ("bonds") were put back to the Company in November 2010 during the first "put window" under the bond debenture. The bondholder's next opportunity to put the bonds back to the Company is November, 2013, while the Company now has the ability to call the bonds for par at any time until their November 2023 maturity date.
Outlook
Arzbaecher added, "We continue to see encouraging trends across our diverse businesses. Given positive first quarter results, the current foreign currency exchange rate environment, a lower effective tax rate outlook and the inclusion of Mastervolt, we have increased our fiscal 2011 revenue guidance to $1.375-$1.425 billion. We anticipate diluted EPS from continuing operations for the full year to be in the $1.45-$1.60 range. This represents a 34%-48% improvement over fiscal 2010 results. Our full year free cash flow forecast has also been increased $10 million to $140-$150 million, and reflects free cash flow to net earnings conversion in excess of 100%. We continue to pursue accretive acquisition opportunities which, when executed, will be incremental to this guidance.
We expect second quarter sales to be in the $325-$335 million range. EPS from continuing operations is expected to improve over 30% at the mid-point from $0.21 in the second quarter of fiscal 2010 (excluding restructuring charges) to a range of $0.25-$0.30. The second quarter outlook incorporates the normal seasonal slowdown experienced in both the base businesses and newly acquired Mastervolt.
The divestiture process for the European Electrical business (currently reported in Discontinued Operations) is proceeding as planned, with interested parties currently participating in management presentations. We are hopeful that the transaction will be completed later this fiscal year.
With our strong start to the year and positive market trends, we are optimistic about fiscal 2011. We continue to invest in growth initiatives, pursue opportunities to strengthen our portfolio and improve our market position through the recovery phase of this cycle. We believe these activities will enable us to continue to create long-term shareholder value."
Conference Call Information
An investor conference call is scheduled for 10am CT today, December 16, 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 markets 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)
November 30, August 31,
2010 2010
ASSETS
Current assets
Cash and cash equivalents $ 44,210 $ 40,222
Accounts receivable, net 196,456 185,693
Inventories, net 156,153 146,154
Deferred income taxes 30,713 30,701
Other current assets, including assets of 62,414 57,380
discontinued operations
Total current assets 489,946 460,150
Property, plant and equipment, net 107,441 108,382
Goodwill 708,868 704,889
Other intangible assets, net 332,798 336,978
Other long-term assets 10,091 11,304
Total assets $ 1,649,144 $ 1,621,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 131,283 $ 130,051
Accrued compensation and benefits 36,362 53,212
Income taxes payable 51,755 50,318
Other current liabilities, including liabilities 107,923 112,256
of discontinued operations
Total current liabilities 327,323 345,837
Long-term debt 367,339 367,380
Deferred income taxes 110,707 110,230
Pension and postretirement benefit accruals 27,678 28,072
Other long-term liabilities 32,355 30,463
Shareholders' equity
Capital stock 13,679 13,610
Additional paid-in capital (166,773 ) (175,157 )
Accumulated other comprehensive loss (57,436 ) (67,105 )
Stock held in trust (1,913 ) (1,934 )
Deferred compensation liability 1,913 1,934
Retained earnings 994,272 968,373
Total shareholders' equity 783,742 739,721
Total liabilities and shareholders' equity $ 1,649,144 $ 1,621,703
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended
November 30, November 30,
2010 2009
Net sales $ 318,412 $ 272,640
Cost of products sold 196,559 172,517
Gross profit 121,853 100,123
Selling, administrative and engineering expenses 74,192 68,080
Amortization of intangible assets 6,089 5,435
Operating profit 41,572 26,608
Financing costs, net 7,552 8,538
Other expense, net 448 281
Earnings from continuing operations before income 33,572 17,789
tax expense
Income tax expense 6,911 4,529
Earnings from continuing operations 26,661 13,260
Loss from discontinued operations, net of income (771 ) (1,406 )
taxes
Net earnings $ 25,890 $ 11,854
Earnings from continuing operations per share
Basic $ 0.39 $ 0.20
Diluted 0.36 0.19
Earnings per share
Basic $ 0.38 $ 0.18
Diluted 0.35 0.17
Weighted average common shares outstanding
Basic 68,000 67,542
Diluted 74,876 74,012
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
November 30, November 30,
2010 2009
Operating Activities
Net earnings $ 25,890 $ 11,854
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 12,301 12,187
Stock-based compensation expense 2,414 1,943
Amortization of debt discount and debt issuance 941 962
costs
Provision (benefit) for deferred income taxes (674 ) 256
Other non-cash adjustments 261 231
Changes in components of working capital and other:
Accounts receivable (10,760 ) (8,032 )
Expiration of accounts receivable securitization - (37,106 )
program
Inventories (8,710 ) (4,400 )
Prepaid expenses and other assets 185 30
Trade accounts payable 285 12,439
Income taxes payable 2,039 9,439
Accrued compensation and benefits (14,940 ) 1,790
Other accrued liabilities (2,746 ) 5,186
Net cash provided by operating activities 6,486 6,779
Investing Activities
Proceeds from sale of property, plant and equipment 59 275
Business acquisitions, net of cash acquired (326 ) -
Capital expenditures (4,077 ) (3,178 )
Net cash used in investing activities (4,344 ) (2,903 )
Financing Activities
Net borrowings on revolving credit facilities and 14 22,382
other debt
Repurchases of 2% Convertible Notes (34 ) (22,894 )
Stock option exercises and related tax benefits 3,553 487
Cash dividend (2,716 ) (2,702 )
Net cash provided by (used in) financing activities 817 (2,727 )
Effect of exchange rate changes on cash 1,029 1,288
Net increase in cash and cash equivalents 3,988 2,437
Cash and cash equivalents - beginning of period 40,222 11,385
Cash and cash equivalents - end of period $ 44,210 $ 13,822
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2010 (1) FISCAL 2011 (1)
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
SALES
INDUSTRIAL $ 65,308 $ 69,235 $ 79,744 $ 85,696 $ 299,983 $ 87,392 $ 87,392
SEGMENT
ENERGY SEGMENT 64,065 53,862 56,645 61,151 235,723 70,743 70,743
ELECTRICAL 54,065 54,927 61,967 62,743 233,702 55,396 55,396
SEGMENT
ENGINEERED
SOLUTIONS 89,202 89,414 111,712 100,772 391,100 104,881 104,881
SEGMENT
TOTAL $ 272,640 $ 267,438 $ 310,068 $ 310,362 $ 1,160,508 $ 318,412 $ - $ - $ - $ 318,412
% SALES GROWTH
INDUSTRIAL -28 % -3 % 27 % 39 % 5 % 34 % 34 %
SEGMENT
ENERGY SEGMENT -13 % -10 % -9 % -4 % -9 % 10 % 10 %
ELECTRICAL -20 % -8 % 10 % 7 % -3 % 2 % 2 %
SEGMENT
ENGINEERED
SOLUTIONS -14 % 23 % 46 % 31 % 19 % 18 % 18 %
SEGMENT
TOTAL -19 % 1 % 20 % 19 % 4 % 17 % 17 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,187
SEGMENT
ENERGY SEGMENT 11,502 5,615 7,326 8,283 32,726 11,858 11,858
ELECTRICAL 4,073 5,539 7,309 7,446 24,367 3,760 3,760
SEGMENT
ENGINEERED
SOLUTIONS 5,481 6,007 13,554 10,242 35,284 13,802 13,802
SEGMENT
CORPORATE / (5,471 ) (5,561 ) (7,351 ) (7,710 ) (26,093 ) (8,035 ) (8,035 )
GENERAL
TOTAL -
EXCLUDING $ 29,439 $ 27,447 $ 41,541 $ 40,039 $ 138,466 $ 41,572 $ - $ - $ - $ 41,572
RESTRUCTURING
CHARGES
RESTRUCTURING (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - -
CHARGES
TOTAL $ 26,608 $ 17,479 $ 40,093 $ 37,592 $ 121,772 $ 41,572 $ - $ - $ - $ 41,572
OPERATING
PROFIT %
INDUSTRIAL 21.2 % 22.9 % 26.0 % 25.4 % 24.1 % 23.1 % 23.1 %
SEGMENT
ENERGY SEGMENT 18.0 % 10.4 % 12.9 % 13.5 % 13.9 % 16.8 % 16.8 %
ELECTRICAL 7.5 % 10.1 % 11.8 % 11.9 % 10.4 % 6.8 % 6.8 %
SEGMENT
ENGINEERED
SOLUTIONS 6.1 % 6.7 % 12.1 % 10.2 % 9.0 % 13.2 % 13.2 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 10.8 % 10.3 % 13.4 % 12.9 % 11.9 % 13.1 % 13.1 %
EXCLUDING
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ 15,633 $ 16,639 $ 21,632 $ 24,268 $ 78,172 $ 22,449 $ 22,449
SEGMENT
ENERGY SEGMENT 15,493 10,072 11,353 11,731 48,649 15,745 15,745
ELECTRICAL 5,675 6,988 8,632 8,876 30,171 5,067 5,067
SEGMENT
ENGINEERED
SOLUTIONS 8,981 10,168 17,373 14,379 50,901 17,184 17,184
SEGMENT
CORPORATE / (4,771 ) (4,339 ) (6,542 ) (7,252 ) (22,904 ) (7,161 ) (7,161 )
GENERAL
TOTAL -
EXCLUDING $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ - $ - $ - $ 53,284
RESTRUCTURING
CHARGES
RESTRUCTURING (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - -
CHARGES
TOTAL $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ - $ - $ - $ 53,284
EBITDA %
INDUSTRIAL 23.9 % 24.0 % 27.1 % 28.3 % 26.1 % 25.7 % 25.7 %
SEGMENT
ENERGY SEGMENT 24.2 % 18.7 % 20.0 % 19.2 % 20.6 % 22.3 % 22.3 %
ELECTRICAL 10.5 % 12.7 % 13.9 % 14.1 % 12.9 % 9.1 % 9.1 %
SEGMENT
ENGINEERED
SOLUTIONS 10.1 % 11.4 % 15.6 % 14.3 % 13.0 % 16.4 % 16.4 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 15.0 % 14.8 % 16.9 % 16.8 % 15.9 % 16.7 % 16.7 %
EXCLUDING
RESTRUCTURING
CHARGES
ACTUANT
CORPORATION
RECONCILIATION
OF GAAP
MEASURES TO
NON-GAAP
MEASURES
(Dollars in
thousands, FISCAL 2010 (1) FISCAL 2011 (1)
except for per
share amounts)
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
OPERATING
PROFIT (LOSS),
EXCLUDING
RESTRUCTURING
CHARGES
INDUSTRIAL
SEGMENT
OPERATING
PROFIT (GAAP $ 13,676 $ 10,937 $ 20,374 $ 21,357 $ 66,344 $ 20,187 $ 20,187
MEASURE)
RESTRUCTURING 178 4,910 329 421 5,838 - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ - $ - $ - $ 20,187
(NON-GAAP
MEASURE)
ENERGY SEGMENT
OPERATING
PROFIT (GAAP $ 11,359 $ 3,922 $ 7,203 $ 8,218 $ 30,702 $ 11,858 $ 11,858
MEASURE)
RESTRUCTURING 143 1,693 123 65 2,024 - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 11,502 $ 5,615 $ 7,326 $ 8,283 $ 32,726 $ 11,858 $ - $ - $ - $ 11,858
(NON-GAAP
MEASURE)
ELECTRICAL
SEGMENT
OPERATING
PROFIT (GAAP $ 2,186 $ 4,373 $ 6,775 $ 6,519 $ 19,853 $ 3,760 $ 3,760
MEASURE)
RESTRUCTURING 1,887 1,166 534 927 4,514 - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 4,073 $ 5,539 $ 7,309 $ 7,446 $ 24,367 $ 3,760 $ - $ - $ - $ 3,760
(NON-GAAP
MEASURE)
ENGINEERED
SOLUTIONS
OPERATING
PROFIT (GAAP $ 5,053 $ 3,995 $ 13,170 $ 9,463 $ 31,681 $ 13,802 $ 13,802
MEASURE)
RESTRUCTURING 428 2,012 384 779 3,603 - -
CHARGES
ADJUSTED
OPERATING
PROFIT $ 5,481 $ 6,007 $ 13,554 $ 10,242 $ 35,284 $ 13,802 $ - $ - $ - $ 13,802
(NON-GAAP
MEASURE)
CORPORATE
OPERATING LOSS $ (5,666 ) $ (5,748 ) $ (7,429 ) $ (7,965 ) $ (26,808 ) $ (8,035 ) $ (8,035 )
(GAAP MEASURE)
RESTRUCTURING 195 187 78 255 715 - -
CHARGES
ADJUSTED
OPERATING LOSS $ (5,471 ) $ (5,561 ) $ (7,351 ) $ (7,710 ) $ (26,093 ) $ (8,035 ) $ - $ - $ - $ (8,035 )
(NON-GAAP
MEASURE)
NET EARNINGS
(LOSS),
EXCLUDING
RESTRUCTURING
CHARGES,
INCOME TAX
ADJUSTMENTS
AND
DISCONTINUED
OPERATIONS (2)
NET EARNINGS
(LOSS) (GAAP $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 25,890
MEASURE)
RESTRUCTURING
CHARGES, NET 1,804 6,863 1,069 1,938 11,674 - -
OF INCOME TAX
INCOME TAX - - 632 - 632 - -
ADJUSTMENTS
DISCONTINUED
OPERATIONS, 1,406 738 1,853 37,723 41,720 771 771
NET OF INCOME
TAX
TOTAL
(NON-GAAP $ 15,064 $ 14,758 $ 25,389 $ 22,847 $ 78,057 $ 26,661 $ - $ - $ - $ 26,661
MEASURE)
DILUTED
EARNINGS
(LOSS) PER
SHARE,
EXCLUDING
RESTRUCTURING
CHARGES,
INCOME TAX
ADJUSTMENTS,
AND
DISCONTINUED
OPERATIONS (2)
NET EARNINGS
(LOSS) (GAAP $ 0.17 $ 0.10 $ 0.30 $ (0.22 ) $ 0.35 $ 0.35 $ 0.35
MEASURE)
RESTRUCTURING
CHARGES, NET 0.02 0.10 0.01 0.02 0.16 - -
OF INCOME TAX
INCOME TAX - - 0.01 - 0.01 - -
ADJUSTMENTS
DISCONTINUED
OPERATIONS, 0.02 0.01 0.03 0.51 0.56 0.01 0.01
NET OF INCOME
TAX
TOTAL
(NON-GAAP $ 0.21 $ 0.21 $ 0.35 $ 0.31 $ 1.08 $ 0.36 $ - $ - $ - $ 0.36
MEASURE)
EBITDA (3)
NET EARNINGS
(LOSS) (GAAP $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 25,890
MEASURE)
FINANCING 8,538 7,798 7,779 7,744 31,859 7,552 7,552
COSTS, NET
INCOME TAX 4,529 2,020 3,706 8,590 18,846 6,911 6,911
EXPENSE
DEPRECIATION & 11,853 11,847 11,222 12,312 47,234 12,160 12,160
AMORTIZATION
DISCONTINUED
OPERATIONS, 1,406 738 6,458 37,723 46,325 771 771
NET OF INCOME
TAX
EBITDA
(NON-GAAP $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ - $ - $ - $ 53,284
MEASURE)
RESTRUCTURING 2,831 9,968 1,448 2,447 16,694 - -
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING
DISCONTINUED
OPERATIONS AND
RESTRUCTURING
CHARGES $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ - $ - $ - $ 53,284
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.
As a result of the global economic downturn in 2009, the Company
implemented various restructuring initiatives aimed at reducing its cost
structure and improving operational performance. These restructuring
actions were substantially completed at August 31, 2010. Fiscal 2011 first
(1) quarter operating results include $461 of restructuring charges, which are
included in segment operating profit, EBITDA and earnings per share, as
the amounts are not significant. However, fiscal 2010 operating profit,
EBITDA and earnings per share amounts exclude restructuring charges for
comparability purposes.
A summary of restructuring charges included in cost of products sold is as
follows:
FISCAL 2010 FISCAL 2011
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Restructuring - cost $ 54 $ 692 $ 92 $ 259 $ 1,097 $ - $ - $ - $ - $ -
of products sold
Net earnings and diluted earnings per share excluding restructuring
charges (2010 only), income tax adjustments 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
(2) 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 December 16, 2010