Actuant Reports Record 2008 Results
MILWAUKEE--(BUSINESS WIRE)--
Actuant Corporation (NYSE: ATU) today announced record sales and earnings for its fiscal year ended August 31, 2008.
Highlights
-- Full-year 2008 revenues were a record $1.66 billion, a 14%
increase over the prior year. Fourth quarter revenues
increased 4% year-over-year, to $405 million.
-- Record full-year diluted earnings per share ("EPS") of $2.05,
excluding special items, an increase of 18% over the
comparable 2007 figure. Fourth quarter EPS increased 10%
year-over-year, excluding special items, to $0.54 (see
attached reconciliation of earnings).
-- Fourth quarter and full year EBITDA margin expansion,
excluding restructuring.
-- Cash generated from operations of $170 million for the year
ended August 31, 2008.
-- Deployed approximately $110 million in two tuck-in
acquisitions during fiscal 2008.
-- Acquired the Cortland Companies effective September 26, 2008
for $230 million.
Robert C. Arzbaecher, President and CEO of Actuant commented, "Fiscal 2008 marked the 7th consecutive year of EPS growth, excluding special items. We once again were able to convert those strong earnings into cash, generating another year of free cash flow in excess of net income. These improved results are even more gratifying given they were accomplished in the face of strong headwinds from our consumer-oriented markets, including recreational vehicle, marine and DIY electrical. Actuant's extensive diversification rewarded shareholders again in 2008, with robust demand and profit generation from our Industrial and Engineered Products segments which more than offset the impact of weak consumer markets."
Consolidated Results
Fourth quarter sales increased 4% to $405 million from $390 million in the prior year. The increase was attributable to the impact of foreign currency rate changes (5%) and acquisitions (3%) as core sales declined 4%. Both the Industrial and Engineered Products segments generated strong core growth; however, the Electrical and Actuation Systems segments reported core sales declines.
Fourth quarter fiscal 2008 net earnings and EPS were $34.2 million and $0.54, respectively, compared to prior year net earnings and EPS of $31.4 million and $0.50, respectively. Fiscal 2007 fourth quarter results include a $1.1 million ($0.02 per diluted share) restructuring charge related to the European Electrical business and a $1.6 million benefit ($0.02 per diluted share) from the utilization of a foreign tax credit. Excluding these items (the "special items") 2008 fourth quarter EPS increased 10% year-over-year from $0.49 to $0.54 (see attached reconciliation of earnings).
Sales for the year ended August 31, 2008 were $1.66 billion, 14% higher than the $1.46 billion in the comparable prior year period. Core sales increased 1% for the fiscal year, with acquisitions and foreign currency rate changes contributing 8% and 5%, respectively.
Net earnings and EPS for the year ended August 31, 2008 were $122.5 million and $1.93, respectively, compared to prior year net earnings and EPS of $105.0 million and $1.69, respectively. Fiscal 2008 results include a $10.3 million ($0.16 per diluted share) charge related to European Electrical restructuring and a $2.6 million ($0.04 per diluted share) income tax gain. Fiscal 2007 results include a $4.5 million ($0.07 per diluted share) European Electrical restructuring charge and a $1.6 million tax gain ($0.02 per diluted share). Excluding these special items, full year EPS increased 18% year-over-year from $1.73 to $2.05 (see attached reconciliation of earnings).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Sales $159.0 $122.9 $586.9 $439.1
Operating Profit $47.4 $34.9 $161.8 $121.3
Operating Profit % 29.8% 28.4% 27.6% 27.6%
Fourth quarter fiscal 2008 Industrial segment sales increased 29%
to $159 million. Excluding currency translation and acquisitions,
Industrial segment core sales grew 14% driven by continued strong
global demand for joint integrity products and services for the oil &
gas and power generation markets, as well as high-force hydraulic
tools. Fourth quarter operating profit margins expanded 140 basis
points to 29.8% due primarily to the benefit of higher volume, pricing
and operating efficiencies.
Electrical Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Sales $111.9 $132.4 $505.8 $505.7
Operating Profit (1) $3.9 $10.9 $33.6 $40.1
Operating Profit % 3.4% 8.2% 6.6% 7.9%
(1) Operating profit excludes European Electrical restructuring charges of $10.5 million for the twelve months ended August 31, 2008, and $1.1 million and $5.4 million for the three and twelve months ended August 31, 2007.
Fiscal 2008 fourth quarter Electrical segment sales declined 15% to $112 million. Core sales declined 19% reflecting weaker demand from consumer, marine and transformer customers and the impact of SKU reductions in the European Electrical product line. Operating profit margin declined to 3.4% reflecting lower production volumes, unfavorable sales mix and costs associated with facility consolidations and headcount reductions. Margin improvement within the European Electrical business continued as expected.
Actuation Systems Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Sales $100.1 $104.4 $445.6 $419.4
Operating Profit $8.3 $9.6 $40.3 $37.1
Operating Profit % 8.3% 9.2% 9.1% 8.9%
Actuation Systems fourth quarter fiscal 2008 sales decreased 4% to $100 million. Core sales declined 11% in the quarter as demand for the Company's RV products were nearly 50% below prior year levels due to the weak consumer demand. Excluding the RV product line, fourth quarter sales increased modestly. Despite improved automotive margins, overall operating profit margins declined 90 basis points compared to last year due to the impact of lower RV production volumes.
Engineered Products Segment
(US $ in millions)
Three Months Ended Twelve Months Ended
August 31, August 31,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------
Sales $33.6 $30.0 $125.7 $94.5
Operating Profit $5.4 $4.6 $17.0 $13.5
Operating Profit % 16.0% 15.5% 13.5% 14.2%
Fiscal 2008 fourth quarter Engineered Products segment sales were 12% higher than the prior year with 9% core growth, reflecting increases across all businesses. Operating profit margins improved 50 basis points, to 16.0%, due to the higher volumes and price increases.
Financial Position
Fiscal year-end net debt (total debt of $574 million less $122 million of cash) was $452 million, a reduction of $44 million from the beginning of the quarter and $23 million from the start of the fiscal year. The Company utilized approximately $110 million of its 2008 cash flow on acquisitions and an additional $44 million on capital expenditures, including nearly $15 million on its Taicang, China facility which opened in August, 2008.
Outlook
The Company updated its fiscal year 2009 guidance to reflect the Cortland acquisition, as well as its current business, economic and foreign exchange rate outlooks. Full year fiscal 2009 EPS is expected to be in the range of $2.25-2.35 on sales of $1.725-1.750 billion. For the first quarter, the Company expects sales to be in the $405-415 million range, generating EPS of approximately $0.48-0.52 per diluted share. Arzbaecher commented, "We expect 2009 to be a challenging year given the unsettled economic and credit environments and headwinds from the stronger US dollar and higher borrowing costs. While we believe market conditions have become more difficult in the last 90 days, we feel the Company is well positioned given the focused execution of our business model and our increasingly diversified end markets and geographies. In addition, we are optimistic about acquisition opportunities and the potential they could have on fiscal 2009 results."
Conference Call Information
An investor conference call is scheduled for 10am CDT today, October 1, 2008. 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.
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 approximately $1.7 billion.
The Company employs a workforce of more than 7,500 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,
2008 2007
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 122,549 $ 86,680
Accounts receivable, net 226,564 194,775
Inventories, net 215,391 197,539
Deferred income taxes 11,870 14,827
Other current assets 16,092 11,459
----------- -----------
Total current assets 592,466 505,280
Property, plant and equipment, net 134,550 122,817
Goodwill 639,862 599,841
Other intangible assets, net 292,359 260,418
Other long-term assets 9,145 12,420
----------- -----------
Total assets $1,668,382 $1,500,776
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 339 $ -
Trade accounts payable 166,863 153,205
Accrued compensation and benefits 59,023 52,345
Income taxes payable 24,867 20,309
Current maturities of long-term debt - 519
Other current liabilities 60,033 64,449
----------- -----------
Total current liabilities 311,125 290,827
Long-term debt, less current maturities 573,818 561,138
Deferred income taxes 99,634 103,589
Pension and postretirement benefit accruals 27,641 27,437
Other long-term liabilities 26,658 17,864
Shareholders' equity
Capital stock 11,200 11,070
Additional paid-in capital (324,898) (349,190)
Accumulated other comprehensive income 7,149 12,876
Stock held in trust (2,081) (1,744)
Deferred compensation liability 2,081 1,744
Retained earnings 936,055 825,165
----------- -----------
Total shareholders' equity 629,506 499,921
----------- -----------
Total liabilities and shareholders' equity $1,668,382 $1,500,776
=========== ===========
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, August 31, August 31,
2008 2007 2008 2007
--------------------- -----------------------
Net sales $404,515 $389,655 $1,663,943 $1,458,748
Cost of products sold 259,105 258,437 1,089,888 974,654
--------------------- -----------------------
Gross profit 145,410 131,218 574,055 484,094
Selling, administrative
and engineering
expenses 85,000 74,489 337,396 282,326
European electrical
restructuring charge - 1,076 10,473 5,395
Amortization of
intangible assets 4,096 3,082 14,837 10,900
--------------------- -----------------------
Operating profit 56,314 52,571 211,349 185,473
Financing costs, net 8,887 8,815 36,409 33,001
Other (income) expense,
net (1,412) (849) (2,991) 782
--------------------- -----------------------
Earnings from
operations before
income
tax expense and
minority interest 48,839 44,605 177,931 151,690
Income tax expense 14,598 13,300 55,365 46,781
Minority interest, net
of income taxes (2) (46) 22 (43)
--------------------- -----------------------
Net earnings $ 34,243 $ 31,351 $ 122,544 $ 104,952
===================== =======================
Earnings per share
Basic $ 0.61 $ 0.57 $ 2.20 $ 1.92
Diluted 0.54 0.50 1.93 1.69
Weighted average common
shares outstanding
Basic 55,953 55,068 55,813 54,751
Diluted 65,011 63,867 64,833 63,628
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
--------------------- ---------------------
August 31, August 31, August 31, August 31,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Operating Activities
Net earnings $ 34,243 $ 31,351 $ 122,544 $ 104,952
Adjustments to reconcile
net earnings to net cash
provided by
operating activities:
Depreciation and
amortization 11,783 10,086 44,709 35,974
Stock-based compensation
expense 1,957 1,388 6,847 5,475
Provision (benefit) for
deferred income taxes (1,078) 10,743 5,912 8,341
Other 337 1,168 (204) 1,231
Changes in operating
assets and liabilities,
excluding the effects
of the business
acquisitions
Accounts receivable 20,922 4,174 (13,929) (2,261)
Accounts receivable
securitization
program (8,621) (7,661) (3,576) 6,460
Inventories 2,369 4,071 (5,697) (4,900)
Prepaid expenses and
other assets (1,315) 3,019 429 (1,024)
Trade accounts payable (7,127) (4,456) 7,586 14,740
Income taxes payable 702 (5,087) (576) (646)
Other accrued
liabilities (9,267) (1,100) 6,052 8,768
---------- ---------- ---------- ----------
Net cash provided by
operating activities 44,905 47,696 170,097 177,110
Investing Activities
Proceeds from sale of
property, plant and
equipment 389 451 14,065 4,570
Capital expenditures (11,905) (10,997) (44,407) (31,491)
Business acquisitions,
net of cash acquired - (30,391) (110,109) (162,981)
---------- ---------- ---------- ----------
Net cash used in investing
activities (11,516) (40,937) (140,451) (189,902)
Financing Activities
Net borrowings
(repayments) on
revolving credit
facilities and
short-term borrowings (1,909) - 246 (80,355)
Proceeds from term loan - - - 155,737
Proceeds from Senior
Note offering, net of
discount - 249,039 - 249,039
Principal repayments on
term loans (7) (244,660) (1,015) (251,737)
Cash dividend - - (2,221) (2,187)
Stock option exercises,
related tax benefits,
and other 3,819 1,345 8,029 1,680
---------- ---------- ---------- ----------
Net cash provided by
financing activities 1,903 5,724 5,039 72,177
Effect of exchange rate
changes on cash (3,822) 494 1,184 1,636
---------- ---------- ---------- ----------
Net increase (decrease) in
cash and cash equivalents 31,470 12,977 35,869 61,021
Cash and cash equivalents
- beginning of period 91,079 73,703 86,680 25,659
---------- ---------- ---------- ----------
Cash and cash equivalents
- end of period $122,549 $ 86,680 $ 122,549 $ 86,680
========== ========== ========== ==========
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $103,935 $ 96,501 $115,852 $122,855 $ 439,143
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 11,377 23,264 29,817 29,994 94,452
---------------------------------------------------
TOTAL $342,983 $341,020 $385,090 $389,655 $1,458,748
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 31% 34% 34% 22% 30%
ELECTRICAL
SEGMENT 16% 17% 17% 18% 17%
ACTUATION
SYSTEMS SEGMENT 19% 11% 2% 4% 9%
ENGINEERED
PRODUCTS
SEGMENT 7% 120% 157% 159% 112%
TOTAL 21% 24% 22% 20% 21%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $ 28,958 $ 24,203 $ 33,259 $ 34,865 $ 121,285
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 1,653 3,088 4,069 4,644 13,454
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 27.9% 25.1% 28.7% 28.4% 27.6%
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 14.5% 13.3% 13.6% 15.5% 14.2%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 13.7% 13.8% 13.1%
EBITDA
INDUSTRIAL
SEGMENT $ 31,356 $ 26,475 $ 35,738 $ 39,156 $ 132,725
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 1,904 3,986 4,962 5,780 16,632
CORPORATE /
GENERAL (4,844) (4,028) (5,822) (6,350) (21,044)
---------------------------------------------------
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 30.2% 27.4% 30.8% 31.9% 30.2%
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 16.7% 17.1% 16.6% 19.3% 17.6%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 15.9% 16.6% 15.5%
FISCAL 2008
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $137,089 $130,802 $160,035 $158,972 $ 586,898
ELECTRICAL
SEGMENT 133,962 130,779 129,142 111,915 505,798
ACTUATION
SYSTEMS SEGMENT 112,899 109,764 122,850 100,070 445,583
ENGINEERED
PRODUCTS
SEGMENT 31,193 28,284 32,629 33,558 125,664
---------------------------------------------------
TOTAL $415,143 $399,629 $444,656 $404,515 $1,663,943
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 32% 36% 38% 29% 34%
ELECTRICAL
SEGMENT 10% 6% 1% -15% 0%
ACTUATION
SYSTEMS SEGMENT 7% 12% 10% -4% 6%
ENGINEERED
PRODUCTS
SEGMENT 174% 22% 9% 12% 33%
TOTAL 21% 17% 15% 4% 14%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $ 37,976 $ 32,757 $ 43,692 $ 47,369 $ 161,794
ELECTRICAL
SEGMENT 10,426 11,239 8,074 3,858 33,596
ACTUATION
SYSTEMS SEGMENT 10,059 8,301 13,705 8,263 40,328
ENGINEERED
PRODUCTS
SEGMENT 4,235 3,146 4,260 5,373 17,014
CORPORATE /
GENERAL (6,415) (7,743) (8,203) (8,549) (30,910)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $ 56,281 $ 47,700 $ 61,528 $ 56,314 $ 221,822
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) - - (10,473)
---------------------------------------------------
TOTAL $ 50,760 $ 42,748 $ 61,528 $ 56,314 $ 211,349
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 27.7% 25.0% 27.3% 29.8% 27.6%
ELECTRICAL
SEGMENT 7.8% 8.6% 6.3% 3.4% 6.6%
ACTUATION
SYSTEMS SEGMENT 8.9% 7.6% 11.2% 8.3% 9.1%
ENGINEERED
PRODUCTS
SEGMENT 13.6% 11.1% 13.1% 16.0% 13.5%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.6% 11.9% 13.8% 13.9% 13.3%
EBITDA
INDUSTRIAL
SEGMENT $ 42,570 $ 37,386 $ 48,388 $ 52,998 $ 181,342
ELECTRICAL
SEGMENT 13,226 13,661 10,562 6,087 43,535
ACTUATION
SYSTEMS SEGMENT 13,292 11,428 16,402 12,136 53,258
ENGINEERED
PRODUCTS
SEGMENT 5,399 4,445 5,400 6,451 21,695
CORPORATE /
GENERAL (6,632) (7,522) (7,991) (8,163) (30,308)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $ 67,855 $ 59,398 $ 72,761 $ 69,509 $ 269,522
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (5,521) (4,952) - - (10,473)
---------------------------------------------------
TOTAL $ 62,334 $ 54,446 $ 72,761 $ 69,509 $ 259,049
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 31.1% 28.6% 30.2% 33.3% 30.9%
ELECTRICAL
SEGMENT 9.9% 10.4% 8.2% 5.4% 8.6%
ACTUATION
SYSTEMS SEGMENT 11.8% 10.4% 13.4% 12.1% 12.0%
ENGINEERED
PRODUCTS
SEGMENT 17.3% 15.7% 16.5% 19.2% 17.3%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 16.3% 14.9% 16.4% 17.2% 16.2%
Note: All prior periods have been restated to include Milwaukee
Cylinder as part of the Industrial Segment. Previously this business
was part of the Engineered Products Segment.
The total of the individual quarters may not equal the annual
total due to rounding.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
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) $ 0.41 $ 0.31 $ 0.47 $ 0.50 $ 1.69
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT - 0.05 0.01 0.02 0.07
TAX ADJUSTMENTS /
CREDITS - - - (0.02) (0.02)
-------------------------------------------
TOTAL (NON-GAAP MEASURE) $ 0.41 $ 0.35 $ 0.48 $ 0.49 $ 1.73
===========================================
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
===========================================
FISCAL 2008
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
RESTRUCTURING CHARGE
AND TAX ADJUSTMENTS /
CREDITS (1)
NET EARNINGS (GAAP
MEASURE) $27,427 $22,239 $38,635 $34,243 $122,544
RESTRUCTURING
CHARGES, NET OF TAX
BENEFIT 5,521 4,729 - - 10,250
TAX ADJUSTMENTS /
CREDITS - - (2,625) - (2,625)
---------------------------------------------
TOTAL (NON-GAAP
MEASURE) $32,948 $26,968 $36,010 $34,243 $130,169
=============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS / CREDITS
(1)
NET EARNINGS (GAAP
MEASURE) $ 0.43 $ 0.35 $ 0.60 $ 0.54 $ 1.93
RESTRUCTURING
CHARGES, NET OF TAX
BENEFIT 0.09 0.07 - - 0.16
TAX ADJUSTMENTS /
CREDITS - - (0.04) - (0.04)
---------------------------------------------
TOTAL (NON-GAAP
MEASURE) $ 0.52 $ 0.43 $ 0.56 $ 0.54 $ 2.05
=============================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $27,427 $22,239 $38,635 $34,243 $122,544
FINANCING COSTS, NET 9,300 9,032 9,190 8,887 36,409
INCOME TAX EXPENSE 15,149 12,154 13,465 14,598 55,365
DEPRECIATION &
AMORTIZATION 10,464 11,028 11,434 11,783 44,709
MINORITY INTEREST,
NET OF INCOME TAX (6) (7) 37 (2) 22
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) $62,334 $54,446 $72,761 $69,509 $259,049
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE 5,521 4,952 - - 10,473
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) -
EXCLUDING
RESTRUCTURING
CHARGE $67,855 $59,398 $72,761 $69,509 $269,522
=============================================
(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. The total of the individual
quarters may not equal the annual total due to rounding.
Source: Actuant Corporation
Released October 1, 2008