Actuant Reports Improved Second Quarter Results; Updates Full Year Guidance
MILWAUKEE--(BUSINESS WIRE)-- Actuant Corporation (NYSE: ATU) today announced results for its second quarter ended February 28, 2011.
Highlights
-- 43% year-over-year increase in diluted earnings per share from
continuing operations ("EPS") from $0.21 to $0.30 (excluding prior year
restructuring costs - see attached reconciliation of earnings).
-- Strong sales momentum continued, with a 13% year-over-year increase in
core revenue (total sales less the impact of acquisitions, divestitures
and foreign currency rate changes).
-- Year-over-year operating profit margin expansion of 90 basis points,
excluding prior year restructuring costs.
-- Solid capital and debt leverage positions with over $500 million of
unused borrowing capacity under the recently amended and expanded credit
agreement.
-- Completion of the previously announced Mastervolt acquisition and
divestiture of the European Electrical business, which repositions the
Electrical segment toward higher growth and profitability.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "Actuant had a good second quarter and remains on track to meet full year financial expectations. During the seasonally weak second quarter, demand levels continued to be strong across many markets, resulting in a robust 13% increase in core sales. Operating margins expanded, the fifth consecutive quarter of year-over-year improvement. The higher sales, coupled with solid margin improvement, drove EPS to the top of our second quarter guidance range. In addition to improved financial results this quarter, we finalized the sale of European Electrical and the acquisition of Mastervolt, repositioning our Electrical segment's growth, margin and innovation trajectory. In summary, we are pleased with Actuant's fiscal 2011 first half accomplishments."
Consolidated Results from Continuing Operations
Consolidated sales for the second quarter were $331 million, 24% higher than the comparable prior year quarter. Core sales increased 13% with acquisitions contributing an additional 11% growth. Earnings and EPS from continuing operations in the fiscal 2011 second quarter were $22.1 million and $0.30, respectively, compared to $7.9 million and $0.11 in the comparable prior year quarter. Results for the second quarter of fiscal 2010 included pre-tax restructuring costs (including those reported in cost of products sold) of $10.0 million, or $0.10 per diluted share. Excluding this item, fiscal 2011 second quarter EPS from continuing operations of $0.30 was 43% higher than the $0.21 in the prior year. (See attached reconciliation of earnings.)
Sales for the six months ended February 28, 2011 were $649 million, 20% higher than the $540 million in the comparable prior year period. Excluding the impact of the stronger US dollar (-1%) and acquisitions (+8%), year-to-date core sales increased 13%. Earnings and EPS from continuing operations for the six months ended February 28, 2011 were $48.8 million, or $0.66 per diluted share, compared to $21.2 million, or $0.30 per diluted share for the comparable prior year period. Year-to-date fiscal 2010 results included pre-tax restructuring costs (including those reported in cost of products sold) of $12.8 million, or $0.12 per diluted share. Excluding this item, current year first half diluted EPS grew 57% to $0.66, from $0.42 for the comparable prior year period. (See attached reconciliation of earnings.)
Discontinued Operations
Discontinued operations represent the results for the European Electrical business for all periods presented. The $14.2 million ($0.19 per diluted share) second quarter loss primarily reflects the loss on the sale of European Electrical on February 28, 2011.
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2011 2010 2011 2010
Sales $88.9 $69.2 $176.3 $134.5
Operating Profit $20.1 $10.9 $40.3 $24.6
Adjusted Operating Profit(1) $20.1 $15.8 $40.3 $29.7
Adjusted Operating Profit %(1) 22.7% 22.9% 22.9% 22.1%
(1) Excludes restructuring costs of $4.9 million and $5.1 million for the three and six months ended February 28, 2010.
Second quarter fiscal 2011 Industrial segment sales were $89 million, 28% higher than the prior year. Excluding foreign currency rate changes (+1%), and the benefit of the Integrated Solutions (IS) acquisitions (+12%), Industrial segment core sales increased 15%. The strong growth, despite the normal seasonal slowdown from the first to second quarter, was driven by continued robust global demand across nearly all served markets. Despite margin expansion in the base business, adjusted operating profit margins were slightly lower than the prior year due to unfavorable acquisition related sales mix.
Energy Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2011 2010 2011 2010
Sales $61.6 $53.9 $132.3 $117.9
Operating Profit $6.8 $3.9 $18.7 $15.3
Adjusted Operating Profit(2) $6.8 $5.6 $18.7 $17.1
Adjusted Operating Profit %(2) 11.0% 10.4% 14.1% 14.5%
(2) Excludes restructuring costs of $1.7 million and $1.8 million for the three and six months ended February 28, 2010.
Fiscal 2011 second quarter year-over-year Energy segment sales increased 14% to $62 million. Excluding the 9% contribution from acquisitions, core sales increased 5% due primarily to higher activity levels in emerging markets and improving seismic and umbilical market demand. Current year second quarter adjusted operating profit margins improved 60 basis points year-over-year due to margin leverage on the higher volumes.
Electrical Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2011 2010 2011 2010
Sales $70.2 $54.9 $125.6 $109.0
Operating Profit $4.9 $4.4 $8.7 $6.6
Adjusted Operating Profit(3) $4.9 $5.5 $8.7 $9.6
Adjusted Operating Profit %(3) 7.0% 10.1% 6.9% 8.8%
(3) Excludes restructuring costs of $1.1 million and $3.0 million for the three and six months ended February 28, 2010.
Electrical segment fiscal 2011 second quarter sales were $70 million, 28% higher than the comparable prior year quarter. Excluding the Mastervolt acquisition (30%), core sales declined 2% due to lower DIY retail and commercial construction activity. Second quarter adjusted operating profit margin of 7.0% includes higher input costs as well as unfavorable acquisition mix. Mastervolt's results reflect normal second quarter seasonal weakness.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
2011 2010 2011 2010
Sales $110.0 $89.4 $214.9 $178.6
Operating Profit $13.4 $4.0 $27.2 $9.1
Adjusted Operating Profit(4) $13.4 $6.0 $27.2 $11.5
Adjusted Operating Profit %(4) 12.2% 6.7% 12.7% 6.4%
(4) Excludes restructuring costs of $2.0 million and $2.4 million for the three and six months ended February 28, 2010.
Second quarter fiscal 2011 Engineered Solutions segment sales increased 23% from the prior year to $110 million. Excluding the impact of the stronger U.S. dollar (-2%), year-over-year core sales grew 25%. Second quarter sales reflected strong demand from the global heavy-duty truck, agriculture, construction equipment and defense markets. Second quarter adjusted operating margins increased 550 basis points year-over-year due to margin leverage on the higher volumes and restructuring driven cost reductions.
Corporate
Corporate expenses for the second quarter of fiscal 2011 were $8.3 million, approximately equal to the first quarter. The increase of approximately $2.7 million from the prior year was due to higher 401(k), salary and incentive compensation costs compared to last year's recessionary levels, as well as growth and acquisition investments.
Financial Position
Net debt at February 28, 2011 was $468 million (total debt of $508 million less $40 million of cash), an increase of $145 million from the beginning of the quarter. During the quarter, the Company deployed approximately $158 million of capital to fund the Mastervolt acquisition, incurred $5 million of debt issuance costs for upsizing and extending its senior credit agreement and received approximately $5 million in proceeds from the divestiture of European Electrical. Cash flow from operations of $14 million during the quarter improved modestly from the prior year, and reflected a net investment in working capital during the quarter to support business growth.
Outlook
Arzbaecher added, "At the mid-point of fiscal 2011, we are pleased with our financial performance, notably year-over-year year-to-date EPS growth in excess of 50%, excluding prior year restructuring costs. While we expect second half fiscal 2011 year-over-year core sales growth and margin expansion to moderate, overall sales and earnings will continue to grow reflecting sales momentum and the Mastervolt acquisition. Our core sales growth on a year-to-date basis has benefitted from positive global economic conditions. However, these same factors, as well as foreign currency rate changes, have put upward pressure on material and other input costs which we have effectively mitigated to date.
After considering all factors, we are moving our sales and earnings guidance toward the high end of prior guidance ranges. We now expect full year fiscal 2011 revenue of $1.400-$1.425 billion and EPS from continuing operations of $1.50-$1.60. At the mid-point, this represents a 44% improvement over fiscal 2010 results, excluding prior year restructuring costs. Our full year free cash flow forecast remains $140-$150 million, and reflects free cash flow to net earnings conversion in excess of 100%.
We expect third quarter sales to be in the $375-$385 million range. EPS from continuing operations is expected to improve nearly 30% at the mid-point, from $0.35 in the third quarter of fiscal 2010 (excluding restructuring charges) to a range of $0.42-$0.47.
With the solid performance during the first half of our fiscal year and positive market trends, we are optimistic about Actuant's future. We remain focused on our long-term organic and acquisition driven growth strategies. Our acquisition pipeline is robust and with our strong cash flow and borrowing capacity, we are well positioned financially to capitalize on growth opportunities."
Conference Call Information
An investor conference call is scheduled for 10am CT today, March 17, 2011. 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)
February 28, August 31,
2011 2010
ASSETS
Current assets
Cash and cash equivalents $ 40,400 $ 40,222
Accounts receivable, net 219,987 185,693
Inventories, net 196,329 146,154
Deferred income taxes 32,919 30,701
Other current assets 19,265 12,578
Current assets of discontinued operations - 44,802
Total current assets 508,900 460,150
Property, plant and equipment, net 108,665 108,382
Goodwill 802,588 704,889
Other intangible assets, net 422,023 336,978
Other long-term assets 14,336 11,304
Total assets $ 1,856,512 $ 1,621,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 1,155 $ -
Trade accounts payable 145,677 130,051
Accrued compensation and benefits 45,391 53,212
Income taxes payable 57,356 50,318
Other current liabilities 63,705 74,561
Current liabilities of discontinued operations - 37,695
Total current liabilities 313,284 345,837
Long-term debt 507,192 367,380
Deferred income taxes 131,541 110,230
Pension and postretirement benefit accruals 27,735 28,072
Other long-term liabilities 58,367 30,463
Shareholders' equity
Capital stock 13,715 13,610
Additional paid-in capital (161,066 ) (175,157 )
Retained earnings 1,002,201 968,373
Accumulated other comprehensive loss (36,457 ) (67,105 )
Stock held in trust (2,023 ) (1,934 )
Deferred compensation liability 2,023 1,934
Total shareholders' equity 818,393 739,721
Total liabilities and shareholders' equity $ 1,856,512 $ 1,621,703
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,
2011 2010 2011 2010
Net sales $ 330,698 $ 267,438 $ 649,110 $ 540,078
Cost of products sold 205,671 171,075 402,230 343,592
Gross profit 125,027 96,363 246,880 196,486
Selling, administrative 81,095 73,533 155,287 141,613
and engineering expenses
Amortization of 6,886 5,351 12,975 10,786
intangible assets
Operating profit 37,046 17,479 78,618 44,087
Financing costs, net 8,238 7,798 15,790 16,336
Other expense (income), 497 (234 ) 945 47
net
Earnings from continuing
operations before income
tax expense 28,311 9,915 61,883 27,704
Income tax expense 6,169 2,020 13,080 6,549
Earnings from continuing 22,142 7,895 48,803 21,155
operations
Loss from discontinued
operations, net of (14,213 ) (738 ) (14,984 ) (2,144 )
income taxes
Net earnings $ 7,929 $ 7,157 $ 33,819 $ 19,011
Earnings from continuing
operations per share
Basic $ 0.32 $ 0.12 $ 0.72 $ 0.31
Diluted 0.30 0.11 0.66 0.30
Earnings per share
Basic $ 0.12 $ 0.11 $ 0.50 $ 0.28
Diluted 0.11 0.10 0.46 0.27
Weighted average common
shares outstanding
Basic 68,270 67,595 68,135 67,569
Diluted 75,495 74,068 75,186 74,040
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,
2011 2010 2011 2010
Operating Activities
Net earnings $ 7,929 $ 7,157 $ 33,819 $ 19,011
Adjustments to reconcile
net earnings to net cash
provided by
operating activities:
Depreciation and 12,883 14,828 25,184 27,015
amortization
Net loss (gain) on 13,742 (334 ) 13,742 (334 )
disposal of businesses
Stock-based compensation 2,399 1,955 4,813 3,898
expense
Provision (benefit) for (716 ) 271 (1,390 ) 527
deferred income taxes
Amortization of debt
discount and debt 941 997 1,914 1,959
issuance costs
Other non-cash (275 ) (643 ) (46 ) (412 )
adjustments
Changes in components of
working capital and
other:
Accounts receivable 2,191 (3,931 ) (8,569 ) (11,963 )
Expiration of accounts
receivable - - - (37,106 )
securitization program
Inventories (16,882 ) (959 ) (25,592 ) (5,359 )
Prepaid expenses and 3,408 2,258 3,593 2,288
other assets
Trade accounts payable (6,589 ) (350 ) (6,304 ) 12,089
Income taxes payable 3,231 (5,905 ) 5,270 3,534
Accrued compensation and 5,521 6,503 (9,419 ) 8,293
benefits
Other accrued (13,973 ) (10,742 ) (16,719 ) (5,556 )
liabilities
Net cash provided by 13,810 11,105 20,296 17,884
operating activities
Investing Activities
Proceeds from sale of
property, plant and 207 408 266 683
equipment
Proceeds from sale of
businesses, net of 3,463 7,516 3,463 7,516
transaction costs
Capital expenditures (4,214 ) (3,598 ) (8,291 ) (6,776 )
Business acquisitions, (158,207 ) (2,000 ) (158,533 ) (2,000 )
net of cash acquired
Net cash provided by
(used in) investing (158,751 ) 2,326 (163,095 ) (577 )
activities
Financing Activities
Net borrowings
(repayments) on 41,155 (10,621 ) 41,169 11,761
revolving credit
facilities
Issuance of term loan 100,000 - 100,000 -
Repurchases of 2% - - (34 ) (22,894 )
Convertible Notes
Debt issuance costs (5,197 ) - (5,197 ) -
Stock option exercises 3,260 523 6,813 1,010
and related tax benefits
Cash dividend - - (2,716 ) (2,702 )
Net cash provided by
(used in) financing 139,218 (10,098 ) 140,035 (12,825 )
activities
Effect of exchange rate 1,913 (1,445 ) 2,942 (157 )
changes on cash
Net increase (decrease)
in cash and cash (3,810 ) 1,888 178 4,325
equivalents
Cash and cash
equivalents - beginning 44,210 13,822 40,222 11,385
of period
Cash and cash
equivalents - end of $ 40,400 $ 15,710 $ 40,400 $ 15,710
period
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 $ 88,935 $ 176,327
SEGMENT
ENERGY SEGMENT 64,065 53,862 56,645 61,151 235,723 70,743 61,587 132,330
ELECTRICAL 54,065 54,927 61,967 62,743 233,702 55,396 70,176 125,572
SEGMENT
ENGINEERED
SOLUTIONS 89,202 89,414 111,712 100,772 391,100 104,881 110,000 214,881
SEGMENT
TOTAL $ 272,640 $ 267,438 $ 310,068 $ 310,362 $ 1,160,508 $ 318,412 $ 330,698 $ - $ - $ 649,110
% SALES GROWTH
INDUSTRIAL -28 % -3 % 27 % 39 % 5 % 34 % 28 % 31 %
SEGMENT
ENERGY SEGMENT -13 % -10 % -9 % -4 % -9 % 10 % 14 % 12 %
ELECTRICAL -20 % -8 % 10 % 7 % -3 % 2 % 28 % 15 %
SEGMENT
ENGINEERED
SOLUTIONS -14 % 23 % 46 % 31 % 19 % 18 % 23 % 20 %
SEGMENT
TOTAL -19 % 1 % 20 % 19 % 4 % 17 % 24 % 20 %
OPERATING
PROFIT (LOSS)
INDUSTRIAL $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,149 $ 40,336
SEGMENT
ENERGY SEGMENT 11,502 5,615 7,326 8,283 32,726 11,858 6,792 18,650
ELECTRICAL 4,073 5,539 7,309 7,446 24,367 3,760 4,945 8,705
SEGMENT
ENGINEERED
SOLUTIONS 5,481 6,007 13,554 10,242 35,284 13,802 13,425 27,227
SEGMENT
CORPORATE / (5,471 ) (5,561 ) (7,351 ) (7,710 ) (26,093 ) (8,035 ) (8,265 ) (16,300 )
GENERAL
TOTAL -
EXCLUDING $ 29,439 $ 27,447 $ 41,541 $ 40,039 $ 138,466 $ 41,572 $ 37,046 $ - $ - $ 78,618
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 $ 37,046 $ - $ - $ 78,618
OPERATING
PROFIT %
INDUSTRIAL 21.2 % 22.9 % 26.0 % 25.4 % 24.1 % 23.1 % 22.7 % 22.9 %
SEGMENT
ENERGY SEGMENT 18.0 % 10.4 % 12.9 % 13.5 % 13.9 % 16.8 % 11.0 % 14.1 %
ELECTRICAL 7.5 % 10.1 % 11.8 % 11.9 % 10.4 % 6.8 % 7.0 % 6.9 %
SEGMENT
ENGINEERED
SOLUTIONS 6.1 % 6.7 % 12.1 % 10.2 % 9.0 % 13.2 % 12.2 % 12.7 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 10.8 % 10.3 % 13.4 % 12.9 % 11.9 % 13.1 % 11.2 % 12.1 %
EXCLUDING
RESTRUCTURING
CHARGES
EBITDA
INDUSTRIAL $ 15,633 $ 16,639 $ 21,632 $ 24,268 $ 78,172 $ 22,449 $ 22,245 $ 44,694
SEGMENT
ENERGY SEGMENT 15,493 10,072 11,353 11,731 48,649 15,745 10,475 26,220
ELECTRICAL 5,675 6,988 8,632 8,876 30,171 5,067 8,075 13,142
SEGMENT
ENGINEERED
SOLUTIONS 8,981 10,168 17,373 14,379 50,901 17,184 16,346 33,530
SEGMENT
CORPORATE / (4,771 ) (4,339 ) (6,542 ) (7,252 ) (22,904 ) (7,161 ) (7,709 ) (14,870 )
GENERAL
TOTAL -
EXCLUDING $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ - $ - $ 102,716
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 $ 49,432 $ - $ - $ 102,716
EBITDA %
INDUSTRIAL 23.9 % 24.0 % 27.1 % 28.3 % 26.1 % 25.7 % 25.0 % 25.3 %
SEGMENT
ENERGY SEGMENT 24.2 % 18.7 % 20.0 % 19.2 % 20.6 % 22.3 % 17.0 % 19.8 %
ELECTRICAL 10.5 % 12.7 % 13.9 % 14.1 % 12.9 % 9.1 % 11.5 % 10.5 %
SEGMENT
ENGINEERED
SOLUTIONS 10.1 % 11.4 % 15.6 % 14.3 % 13.0 % 16.4 % 14.9 % 15.6 %
SEGMENT
TOTAL
(INCLUDING
CORPORATE) - 15.0 % 14.8 % 16.9 % 16.8 % 15.9 % 16.7 % 14.9 % 15.8 %
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 $ 20,149 $ 40,336
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 $ 20,149 $ - $ - $ 40,336
(NON-GAAP
MEASURE)
ENERGY SEGMENT
OPERATING
PROFIT (GAAP $ 11,359 $ 3,922 $ 7,203 $ 8,218 $ 30,702 $ 11,858 $ 6,792 $ 18,650
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 $ 6,792 $ - $ - $ 18,650
(NON-GAAP
MEASURE)
ELECTRICAL
SEGMENT
OPERATING
PROFIT (GAAP $ 2,186 $ 4,373 $ 6,775 $ 6,519 $ 19,853 $ 3,760 $ 4,945 $ 8,705
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 $ 4,945 $ - $ - $ 8,705
(NON-GAAP
MEASURE)
ENGINEERED
SOLUTIONS
OPERATING
PROFIT (GAAP $ 5,053 $ 3,995 $ 13,170 $ 9,463 $ 31,681 $ 13,802 $ 13,425 $ 27,227
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 $ 13,425 $ - $ - $ 27,227
(NON-GAAP
MEASURE)
CORPORATE
OPERATING
LOSS (GAAP $ (5,666 ) $ (5,748 ) $ (7,429 ) $ (7,965 ) $ (26,808 ) $ (8,035 ) $ (8,265 ) $ (16,300 )
MEASURE)
RESTRUCTURING 195 187 78 255 715 - - -
CHARGES
ADJUSTED
OPERATING
LOSS $ (5,471 ) $ (5,561 ) $ (7,351 ) $ (7,710 ) $ (26,093 ) $ (8,035 ) $ (8,265 ) $ - $ - $ (16,300 )
(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 $ 7,929 $ 33,819
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 14,213 14,984
NET OF INCOME
TAX
TOTAL
(NON-GAAP $ 15,064 $ 14,758 $ 25,389 $ 22,847 $ 78,057 $ 26,661 $ 22,142 $ - $ - $ 48,803
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 $ 0.11 $ 0.46
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 0.19 0.20
NET OF INCOME
TAX
TOTAL
(NON-GAAP $ 0.21 $ 0.21 $ 0.35 $ 0.31 $ 1.08 $ 0.36 $ 0.30 $ - $ - $ 0.66
MEASURE)
EBITDA (3)
NET EARNINGS
(LOSS) (GAAP $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 7,929 $ 33,819
MEASURE)
FINANCING 8,538 7,798 7,779 7,744 31,859 7,552 8,238 15,790
COSTS, NET
INCOME TAX 4,529 2,020 3,706 8,590 18,846 6,911 6,169 13,080
EXPENSE
DEPRECIATION
& 11,853 11,847 11,222 12,312 47,234 12,160 12,883 25,043
AMORTIZATION
DISCONTINUED
OPERATIONS, 1,406 738 6,458 37,723 46,325 771 14,213 14,984
NET OF INCOME
TAX
EBITDA
(NON-GAAP $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ 49,432 $ - $ - $ 102,716
MEASURE)
RESTRUCTURING 2,831 9,968 1,448 2,447 16,694 - - -
CHARGES
EBITDA
(NON-GAAP
MEASURE) -
EXCLUDING
DISCONTINUED
OPERATIONS
AND $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ - $ - $ 102,716
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.
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) and second quarter operating results include $461 and $359 of restructuring
charges, respectively, 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 of $ 54 $ 692 $ 92 $ 259 $ 1,097 $ - $ - $ - $ - $ -
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 be
(2) 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 March 17, 2011