Exhibit 99.1 Actuant Announces Record Results, Increases Fiscal 2005 Guidance MILWAUKEE--(BUSINESS WIRE)--Sept. 30, 2004--Actuant Corporation (NYSE:ATU) today announced results for its fourth quarter and fiscal year ended August 31, 2004. Fourth quarter sales increased approximately 27% to $187.8 million compared to $148.2 million in the prior year. Current year results include those from Kwikee Products Company Inc. ("Kwikee") and Dresco B.V. ("Dresco"), which were acquired during fiscal 2004. Excluding the impact of these acquisitions and foreign currency exchange rate changes on translated results, fourth quarter sales increased approximately 11% from the comparable prior year period. Fourth quarter fiscal 2004 net earnings and diluted earnings per share ("EPS") were $18.3 million and $0.75 per diluted share, respectively, compared to fiscal 2003 fourth quarter net earnings and diluted earnings per share of $10.0 million and $0.41 per diluted share, respectively. Fourth quarter fiscal 2004 results include a charge of $7.1 million, net of tax, or $0.29 per diluted share, arising from the tender of the Company's 13% Senior Subordinated Notes (the "13% Notes") and net income from discontinued operations of $10.9 million, or $0.45 per diluted share, due to the release of a reserve for tax and other obligations related to the spin-off of APW Ltd. in fiscal 2000 (the "Spin-off"). Excluding these special items, current year fourth quarter net earnings increased 44% to $0.59 per diluted share (see attached reconciliation of earnings). Actuant's sales for the fiscal year ended August 31, 2004 were $726.9 million, approximately 24% higher than the $585.4 million generated in the prior year. Excluding the impact of acquisitions and foreign currency rate changes, fiscal 2004 sales increased approximately 9% from the comparable prior year period. Net earnings for the year ended August 31, 2004 were $34.8 million, or $1.41 per diluted share, compared to $29.0 million, or $1.18 per diluted share, in fiscal 2003. In fiscal 2004, the Company recorded net of tax special charges of $25.1 million, or $1.02 per diluted share, due to the early extinguishment of debt and income from discontinued operations of $10.9 million, net of tax, or $0.44 per diluted share, due to the release of a reserve for tax and other obligations related to the Spin-off. In fiscal 2003, the Company recorded net of tax special charges of $1.3 million, or $0.05 per diluted share, for the early extinguishment of debt and $4.2 million, or $0.18 per diluted share, for litigation matters associated with businesses divested prior to the Spin-off. Excluding these special charges, net earnings and diluted earnings per share for the year ended August 31, 2004 were $49.0 million, or $1.99 per diluted share, over 40% higher than the $34.4 million, or $1.41 per diluted share in the prior year (see attached reconciliation of earnings). Commenting on the results, Robert C. Arzbaecher, Chief Executive Officer, stated, "Actuant finished fiscal 2004 strongly, as fourth quarter results exceeded our expectations in terms of sales, earnings, and cash flow. Core sales grew 11% over the prior year and excluding the special items (described above), Actuant increased its year-over-year earnings per share for the 13th consecutive quarter." Arzbaecher continued, "Favorable economic conditions and margin expansion across both segments helped drive record fourth quarter earnings. We also benefited from a sequential improvement in automotive margins, as well as earnings contributions from both Kwikee and Dresco. Focus on Actuant's LEAD (Lean Enterprise Across Disciplines) Process, active working capital management, and increased earnings drove another quarter of strong cash flow, reducing net debt to approximately $188 million at year-end. Despite the $65 million spent on acquisitions and $30 million of premiums paid to retire 13% Notes in fiscal 2004, our leverage ratio (debt/EBITDA) at year-end was lower than at the start of the year." (EBITDA is earnings before interest, income taxes, depreciation, amortization and minority interest). He concluded, "We are pleased with fiscal 2004 results - core sales growth of 9%, the completion of two accretive bolt-on acquisitions, improving margins and strong cash flow. On a full-year basis and excluding special charges in both years, the $1.99 diluted earnings per share in fiscal 2004 was 41% higher than a year ago, and was the third straight year of EPS growth in excess of 15%. Both Tools & Supplies and Engineered Solutions had excellent years as we saw a recovering North American economy. Looking forward to fiscal 2005, we are optimistic that we will be able to continue to generate earnings growth. Given improved economic conditions, the recent acquisition of Yvel S.A. and lower borrowing costs due to the completion of the 13% Notes tender, we are increasing our previously announced fiscal 2005 guidance. We now expect diluted earnings per share of $2.25-$2.35 in 2005 on sales of $750-$775 million. First quarter sales should be in the $185-$190 million range, and diluted earnings per share should be in the range of $0.53-$0.58 per share." Fiscal 2004 fourth quarter Tools & Supplies segment sales were $106.3 million, approximately 15% higher than last year due primarily to the Dresco acquisition and foreign currency rate changes. Excluding Dresco and the impact of foreign currency rate changes, fourth quarter Tools & Supplies segment revenues increased 2% over the prior year. Fourth quarter fiscal 2004 Engineered Solutions segment sales increased approximately 46% to $81.5 million, compared to $55.8 million in the previous year. Excluding the impact of the Kwikee acquisition and foreign currency rate changes, Engineered Solutions sales increased 26%, benefiting from growth in all three of Actuant's main actuation markets - automotive convertible top, heavy duty truck cab-tilt, and recreational vehicles. Actuant's fiscal 2004 fourth quarter operating profit increased 27% to $24.3 million, in line with the corresponding increase in sales. The increases in operating profit in fiscal 2004 reflect the benefit of cost reductions implemented over the past year and improved automotive labor efficiencies. These improvements were partially offset by increased corporate expenses. 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 business unit acquisitions and related restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant, headquartered in Milwaukee, Wisconsin, is a diversified industrial company with operations in more than 20 countries. The Actuant businesses are leading companies in highly engineered position and motion control systems and branded tools. Products are offered under such established brand names as Dresco, Enerpac, Gardner Bender, Kopp, Kwikee, Milwaukee Cylinder, Nielsen Sessions, Power-Packer, Power Gear and Yvel. The Company will conduct an investor conference call at 11:00 EDT today to discuss fourth quarter results. For further information on Actuant and its business units, and to listen to today's conference call, visit the Company's website at www.actuant.com. Actuant Corporation Consolidated Statements of Earnings (In thousands except per share amounts) Three Months Twelve Months Ended Ended August 31, August 31, ------------------ ------------------ 2004 2003 2004 2003 ------------------ ------------------ (Unaudited) Net Sales $187,764 $148,247 $726,851 $585,393 Cost of Products Sold 127,650 99,457 495,609 395,409 ------------------ ------------------ Gross Profit 60,114 48,790 231,242 189,984 Selling, Administrative and Engineering Expenses 35,354 29,094 138,682 114,928 Amortization of Intangible Assets 493 521 2,221 2,271 ------------------ ------------------ Operating Profit 24,267 19,175 90,339 72,785 Net Financing Costs 2,391 5,148 13,559 21,430 Charge for Early Extinguishment of Debt 9,458 - 36,735 1,974 Litigation Charge associated with Divested Businesses - - - 6,502 Other (Income) Expense, net (376) (1,217) 1,220 (2,238) ------------------ ------------------ Earnings from Continuing Operations Before Income Taxes and Minority Interest 12,794 15,244 38,825 45,117 Income Tax Expense 5,305 5,350 14,676 15,924 Minority Interest, net of Income Taxes 116 (123) 259 227 ------------------ ------------------ Earnings from Continuing Operations 7,373 10,017 23,890 28,966 Discontinued Operations, net of Income Taxes 10,933 - 10,933 - ------------------ ------------------ Net Earnings $18,306 $10,017 $34,823 $28,966 ================== ================== Basic Earnings per Share Earnings from Continuing Operations $0.31 $0.43 $1.01 $1.24 Discontinued Operations, net of Income Taxes 0.46 - 0.46 - ------------------ ------------------ Total $0.77 $0.43 $1.47 $1.24 ================== ================== Diluted Earnings per Share Earnings from Continuing Operations $0.30 $0.41 $0.97 $1.18 Discontinued Operations, net of Income Taxes 0.45 - 0.44 - ------------------ ------------------ Total $0.75 $0.41 $1.41 $1.18 ================== ================== Weighted Average Common Shares Outstanding Basic 23,757 23,474 23,660 23,350 Diluted 24,515 24,550 24,677 24,464 Actuant Corporation Consolidated Balance Sheets (Dollars in thousands) August 31, August 31, 2004 2003 ----------- ----------- ASSETS Current assets Cash and cash equivalents $6,033 $4,593 Accounts receivable, net 90,433 81,825 Inventories, net 87,074 67,640 Deferred income taxes 11,126 14,727 Other current assets 7,648 3,977 ----------- ----------- Total Current Assets 202,314 172,762 Property, plant and equipment, net 47,972 59,197 Goodwill 145,387 101,680 Other intangible assets, net 22,127 19,521 Other long-term assets 6,336 5,517 ----------- ----------- Total Assets $424,136 $358,677 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $960 $1,224 Trade accounts payable 64,165 53,045 Accrued compensation and benefits 21,401 16,773 Income taxes payable 817 15,952 Current maturities of long-term debt 3,863 8,918 Other current liabilities 34,627 40,753 ----------- ----------- Total Current Liabilities 125,833 136,665 Long-term debt, less current maturities 189,068 159,692 Deferred income taxes 8,376 8,841 Pension and postretirement benefit accruals 28,862 26,454 Other long-term liabilities 40,009 34,534 Minority interest in net equity of consolidated affiliates 211 4,117 Shareholders' equity Capital stock 4,753 4,702 Additional paid-in capital (518,321) (522,627) Accumulated other comprehensive income (loss) (17,600) (21,823) Stock held in trust (806) (636) Deferred compensation liability 806 636 Retained earnings 562,945 528,122 ----------- ----------- Total Shareholders' Equity (Deficit) 31,777 (11,626) ----------- ----------- Total Liabilities and Shareholders' Equity $424,136 $358,677 =========== =========== Actuant Corporation Consolidated Statements of Cash Flows (In thousands) Three Months Ended Year Ended August 31, August 31, --------------------- ------------------- 2004 2003 2004 2003 ----------- --------- --------- --------- (Unaudited) Operating Activities Earnings from continuing operations $7,373 $10,017 $23,890 $28,966 Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities of continuing operations: Depreciation and amortization 4,343 3,926 16,597 15,067 Amortization of debt discount and debt issuance costs 297 367 1,423 1,479 Write-off of debt discount and debt issuance costs in conjunction with early extinguishment of debt 764 - 5,209 317 Write-off fair value adjustments to long-term debt in conjunction with early terminations of interest rate swaps 1,170 - 754 - Provision (benefit) for deferred income taxes (1,298) 3,639 490 4,115 Loss on disposal of assets 224 4 361 71 Changes in operating assets and liabilities, excluding the effects of business acquisitions: Accounts receivable 7,172 2,432 4,287 1,550 Inventories (3,305) 917 (7,549) 5,645 Prepaid expenses and other assets (1,356) 709 (2,713) 4,387 Trade accounts payable 1,014 3,189 3,731 (2,233) Accrued interest 592 3,053 (4,050) (745) Income taxes payable 5,721 2,032 1,387 3,380 Other accrued liabilities 1,843 (12,215) 4,144 (12,580) ----------- --------- --------- --------- Cash provided by continuing operations(a) 24,554 18,070 47,961 49,419 Investing Activities Proceeds from sale of property, plant and equipment - 716 14,601 1,109 Capital expenditures (2,935) (2,329) (10,935) (12,671) Cash paid for business acquisitions, net of cash acquired - - (65,100) (9,174) ----------- --------- --------- --------- Cash used in investing activities (2,935) (1,613) (61,434) (20,736) Financing Activities Partial redemptions of 13% senior subordinated notes (29,236) - (110,133) (9,425) Net proceeds from convertible senior subordinated note offering - - 144,994 - Extinguishment of former senior secured credit agreement - - (30,000) - Initial proceeds from new senior credit agreement - - 30,000 - Net borrowings (repayments) on revolving credit facilities and short-term borrowings 12,077 (5,442) 8,136 (2,180) Principal borrowings on term loans - - - 3,932 Principal payments on term loans (1,956) (11,215) (26,399) (22,888) (Payments for) proceeds from early termination of interest rate swaps (1,170) - (2,186) 1,550 Debt issuance costs (229) - (1,499) - Stock option exercises and other 159 524 1,725 1,708 ----------- --------- --------- --------- Cash (used in) provided by financing activities (20,355) (16,133) 14,638 (27,303) Effect of exchange rate changes on cash 18 (233) 275 170 ----------- --------- --------- --------- Net increase in cash and cash equivalents 1,282 91 1,440 1,550 Cash and cash equivalents - beginning of period 4,751 4,502 4,593 3,043 ----------- --------- --------- --------- Cash and cash equivalents - end of period $6,033 $4,593 $6,033 $4,593 =========== ========= ========= ========= (a) Includes the net of tax cash impact of 13% senior subordinated note redemptions of $5.2 million for the three months ended August 31, 2004 and $19.0 million and $1.0 million for the years ended August 31, 2004 and 2003, respectively. ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA (US dollars, in thousands) FISCAL 2003 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $92,014 $90,651 $91,386 $92,433 $366,484 ENGINEERED SOLUTIONS SEGMENT 55,844 51,448 55,803 55,814 218,909 --------------------------------------------- TOTAL REPORTED SALES $147,858 $142,099 $147,189 $148,247 $585,393 ============================================= % SALES GROWTH TOOLS & SUPPLIES SEGMENT 43.6% 45.4% 39.0% 37.2% 41.2% ENGINEERED SOLUTIONS SEGMENT 13.8% 11.6% 2.8% 3.3% 7.6% TOTAL REPORTED SALES 30.7% 31.0% 22.6% 22.1% 26.4% OPERATING PROFIT TOOLS & SUPPLIES SEGMENT $12,818 $12,224 $13,702 $13,417 $52,161 ENGINEERED SOLUTIONS SEGMENT 6,616 5,760 7,648 7,571 27,595 CORPORATE / GENERAL (1,246) (1,955) (1,957) (1,813) (6,971) --------------------------------------------- TOTAL REPORTED RESULTS $18,188 $16,029 $19,393 $19,175 $72,785 ============================================= OPERATING PROFIT % TOOLS & SUPPLIES SEGMENT 13.9% 13.5% 15.0% 14.5% 14.2% ENGINEERED SOLUTIONS SEGMENT 11.8% 11.2% 13.7% 13.6% 12.6% TOTAL (INCLUDING CORPORATE) 12.3% 11.3% 13.2% 12.9% 12.4% EBITDA EXCLUDING SPECIAL ITEMS TOOLS & SUPPLIES SEGMENT $15,126 $14,454 $16,829 $15,746 $62,155 ENGINEERED SOLUTIONS SEGMENT 7,666 7,501 8,739 8,947 32,853 CORPORATE / GENERAL (1,161) (1,354) (2,028) (375) (4,918) --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 21,631 20,601 23,540 24,318 90,090 SPECIAL ITEMS (1) (9,274) - 798 - (8,476) --------------------------------------------- EBITDA (2) $12,357 $20,601 $24,338 $24,318 $81,614 ============================================= EBITDA % TOOLS & SUPPLIES SEGMENT 16.4% 15.9% 18.4% 17.0% 17.0% ENGINEERED SOLUTIONS SEGMENT 13.7% 14.6% 15.7% 16.0% 15.0% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 14.6% 14.5% 16.0% 16.4% 15.4% FISCAL 2004 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $96,335 $103,554 $109,930 $106,298 $416,117 ENGINEERED SOLUTIONS SEGMENT 70,249 72,468 86,551 81,466 310,734 --------------------------------------------- TOTAL REPORTED SALES $166,584 $176,022 $196,481 $187,764 $726,851 ============================================= % SALES GROWTH TOOLS & SUPPLIES SEGMENT 4.7% 14.2% 20.3% 15.0% 13.5% ENGINEERED SOLUTIONS SEGMENT 25.8% 40.9% 55.1% 46.0% 41.9% TOTAL REPORTED SALES 12.7% 23.9% 33.5% 26.7% 24.2% OPERATING PROFIT TOOLS & SUPPLIES SEGMENT $14,361 $15,714 $17,546 $17,088 $64,709 ENGINEERED SOLUTIONS SEGMENT 8,775 7,257 11,415 11,216 38,663 CORPORATE / GENERAL (2,414) (2,799) (3,783) (4,037) (13,033) --------------------------------------------- TOTAL REPORTED RESULTS $20,722 $20,172 $25,178 $24,267 $90,339 ============================================= OPERATING PROFIT % TOOLS & SUPPLIES SEGMENT 14.9% 15.2% 16.0% 16.1% 15.6% ENGINEERED SOLUTIONS SEGMENT 12.5% 10.0% 13.2% 13.8% 12.4% TOTAL (INCLUDING CORPORATE) 12.4% 11.5% 12.8% 12.9% 12.4% EBITDA EXCLUDING SPECIAL ITEMS TOOLS & SUPPLIES SEGMENT $16,668 $17,511 $19,618 $19,378 $73,175 ENGINEERED SOLUTIONS SEGMENT 9,921 8,986 12,753 13,285 44,945 CORPORATE / GENERAL (2,386) (2,709) (3,632) (3,677) (12,404) --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 24,203 23,788 28,739 28,986 105,716 SPECIAL ITEMS (1) (15,069) (2,268) (9,940) (9,458) (36,735) --------------------------------------------- EBITDA (2) $9,134 $21,520 $18,799 $19,528 $68,981 ============================================= EBITDA % TOOLS & SUPPLIES SEGMENT 17.3% 16.9% 17.8% 18.2% 17.6% ENGINEERED SOLUTIONS SEGMENT 14.1% 12.4% 14.7% 16.3% 14.5% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 14.5% 13.5% 14.6% 15.4% 14.5% (1) First quarter 2003 special items include a $2.0 million charge related to the early redemption of debt and a $7.3 million charge related to litigation for business units divested prior to the July 31, 2000 spin-off. Third quarter 2003 special items represents an $0.8 million reversal of a portion of the $7.3 million first quarter charge for the favorable settlement of such litigation. First, third and fourth quarter 2004 special items represents charges related to the early redemption of debt. Second quarter 2004 special items represents the non-cash charge attributable to the write-off of remaining debt issuance costs associated with the senior secured credit facility that was replaced during February 2004. (2) EBITDA excludes discontinued operations. ACTUANT CORPORATION Reconciliation of GAAP measures to non-GAAP measures (In thousands, except per share amounts) FISCAL 2003 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $1,856 $7,116 $9,977 $10,017 $28,966 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 1,856 7,116 9,977 10,017 28,966 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 1,273 - - - 1,273 LITIGATION MATTERS RELATED TO BUSINESSES DIVESTED PRIOR TO THE SPIN-OFF OF APW LTD. (NET OF TAX) 4,708 - (516) - 4,192 --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $7,837 $7,116 $9,461 $10,017 $34,431 ============================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $0.08 $0.29 $0.41 $0.41 $1.18 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.08 0.29 0.41 0.41 1.18 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 0.05 - - - 0.05 LITIGATION MATTERS RELATED TO BUSINESSES DIVESTED PRIOR TO THE SPIN-OFF OF APW LTD. (NET OF TAX) 0.19 - (0.02) - 0.18 --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $0.32 $0.29 $0.39 $0.41 $1.41 ============================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (2) NET EARNINGS (GAAP MEASURE) $1,856 $7,116 $9,977 $10,017 $28,966 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 1,856 7,116 9,977 10,017 28,966 NET FINANCING COSTS 5,662 5,443 5,177 5,148 21,430 INCOME TAX EXPENSE 1,067 4,025 5,482 5,350 15,924 DEPRECIATION & AMORTIZATION 3,689 3,820 3,632 3,926 15,067 MINORITY INTEREST 83 197 70 (123) 227 --------------------------------------------- EBITDA (NON-GAAP MEASURE) 12,357 20,601 24,338 24,318 81,614 SPECIAL ITEMS (3) 9,274 - (798) - 8,476 --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $21,631 $20,601 $23,540 $24,318 $90,090 ============================================= FISCAL 2004 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 9,795 1,479 6,791 7,084 25,149 LITIGATION MATTERS RELATED TO BUSINESSES DIVESTED PRIOR TO THE SPIN-OFF OF APW LTD. (NET OF TAX) - - - - - --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $10,088 $10,237 $14,257 $14,457 $49,039 ============================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (1) NET EARNINGS (GAAP MEASURE) $0.01 $0.35 $0.30 $0.75 $1.41 DISCONTINUED OPERATIONS (NET OF TAX) - - - (0.45) (0.44) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.01 0.35 0.30 0.30 0.97 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 0.40 0.06 0.28 0.29 1.02 LITIGATION MATTERS RELATED TO BUSINESSES DIVESTED PRIOR TO THE SPIN-OFF OF APW LTD. (NET OF TAX) - - - - - --------------------------------------------- NET EARNINGS EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $0.41 $0.41 $0.58 $0.59 $1.99 ============================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS AND SPECIAL ITEMS (2) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) --------------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 NET FINANCING COSTS 4,391 3,877 2,900 2,391 13,559 INCOME TAX EXPENSE 283 4,660 4,428 5,305 14,676 DEPRECIATION & AMORTIZATION 3,934 4,254 4,066 4,343 16,597 MINORITY INTEREST 233 (29) (61) 116 259 --------------------------------------------- EBITDA (NON-GAAP MEASURE) 9,134 21,520 18,799 19,528 68,981 SPECIAL ITEMS (3) 15,069 2,268 9,940 9,458 36,735 --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS (NON- GAAP MEASURE) $24,203 $23,788 $28,739 $28,986 $105,716 ============================================= (1) Net earnings and diluted earnings per share excluding discontinued operations and special items represent net earnings and diluted earnings per share per the Consolidated Statement of Earnings net of charges or credits for items that are not representative of the normal recurring operations of the current portfolio of Actuant companies. These items include results from discontinued operations, expenses recorded to extinguish debt entered into at the time of the spin-off and litigation charges related to matters associated with businesses divested prior to the spin-off. 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. (2) EBITDA represents net earnings before net financing costs, income tax expense, depreciation & amortization and minority interest. EBITDA excluding discontinued operations and special items is net of charges or credits that are not representative of the normal recurring operations of the current portfolio of Actuant companies. These special items include results from discontinued operations, expenses recorded to extinguish debt entered into at the time of the spin-off and litigation charges related to matters associated with businesses divested prior to the spin-off. 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. (3) First quarter 2003 special items include a $2.0 million charge related to the early redemption of debt and a $7.3 million charge related to litigation for business units divested prior to the July 31, 2000 spin-off. Third quarter 2003 special items represents an $0.8 million reversal of a portion of the $7.3 million first quarter charge for the favorable settlement of such litigation. First, third and fourth quarter 2004 special items represents charges related to the early redemption of debt. Second quarter 2004 special items represents the non-cash charge attributable to the write-off of remaining debt issuance costs associated with the senior secured credit facility that was replaced during February 2004. CONTACT: Actuant Corporation Andrew Lampereur, 414-352-4160